Your Cryptocurrency Newsletter for 02 December,2020

If you are interested in cryptocurrencies, this newsletter is for you. [img]  [Learn more about RevenueStripe...](   [Learn more about RevenueStripe...]( [img]( [FeedBinary Newsletter]( [Bitcoin’s Corona Boom and the Future of Money]( This cryptocurrency’s peak is a result of cash creation globally. Its value surge looks like a vote against the crisis policies of central banks It may just be a coincidence, but Bitcoin emerged just a few months after the mighty Lehman Brothers filed for bankruptcy in September 2008, heralding the West’s Great Recession and eliciting a great gush of liquidity from central banks that sceptics saw as an overstretch of fiat money. The big flaw of a currency unbacked by any valuable, in their view, was its vulnerability to oversupply and thus eventual loss of purchasing power. Like gold, might value not be retained more reliably by a token-of- exchange whose scarcity was insulated from fallible human intervention? It is not clear exactly what motivated Bitcoin, a privately-created cryptocurrency based on blockchain technology that is reputed to have its supply restrained by its digital design, but its 2020 boom after the covid crisis began to spawn trillions of dollars of extra cash has been too spectacular to ignore. On Monday, it hit an all-time peak of $19,800 per unit, surpassing its previous high of 2017. It is up by 140% so far this year and could be headed higher still. Bitcoin’s vertiginous rise is not difficult to explain. In essence, it reflects investor dissonance with frenetic cash creation by central banks, globally. While it does have a few rivals, this cryptocurrency appears to have the pioneer’s advantage. It is seen not only as a reliable store of wealth—perhaps in the same league as gold—but also as a hedge against the inflationary risks of monetary-easing policies that may have gone overboard, as some seem to suspect. With economies reeling under the pandemic’s fallout on commercial activity, risk-free bonds offering negligible returns (if any), and so much investment money chasing so few safe assets, it was perhaps inevitable that Bitcoin would attract large sums. Its value hinges on its much-touted supply limit. Its software rules are said to specify that only 21 million coins will ever be minted, with a widely-accessible online ledger keeping account. New units of it need to be “mined” digitally, a long process that devours electricity and requires e-puzzles to be cracked. Given the claimed cap on Bitcoin’s final count, its minting rate has been set for a terminal decline: the number that miners can win halves every four years. This last happened in May, when the pace of tokens entering circulation fell to 6.25 every 10 minutes from 12.5. The Bitcoin phenomenon may have ridden its way up on investor conservatism at the very opposite end of “modern monetary theory”, by which money can limitlessly be issued until inflation breaks out, but central banks may be forced to reckon with it soon. While their initial response ranged from dismissal to denouncement, it now seems here to stay. Yet, its success should dismay us. Like gold, it serves no clear productive purpose. It is used by shady operators on the dark web, remains highly volatile, and has highly concentrated holdings. It could plausibly stay this way till 2140, when the last token is scheduled for mining. But, as India’s apex court ruled, there is no reason to ban the buying and selling of cryptocurrency. Central banks, however, may need to be more vigilant of their currencies’ real value, especially as Facebook seeks the approval of Swiss authorities for Libra, a “stablecoin” backed by the US dollar that it expects to launch in January. They may want to launch virtual money of their own, as the European Central Bank and others have proposed. What seems at stake here is the future of money, sovereign control over which is considered integral to economic management. But let regulation not scotch innovation. [Read Full News]( The post [Bitcoin’s Corona Boom and the Future of Money]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [The Rise Of Decentralized Cryptocurrency Exchanges]( In a recent article, I talked about the growth of decentralized finance (DeFi) within the cryptocurrency industry. One of the sectors impacted by DeFi is the exchanges that cryptocurrencies are traded on. I am seeing massive growth in the demand for decentralized exchanges (DEX), such as UniSwap. I expect this demand to continue and the use of decentralized exchanges to grow in the coming years. Decentralized exchanges pose a threat to centralized cryptocurrency exchanges. BitMEX, the world’s largest Bitcoin (BTC) derivatives exchange by volume, recently received indictments for its senior team. This sent shock waves across the industry and led to a massive pullout of coins from the wallets of centralized exchanges. People feared that other exchanges would be sued, and as a result, the amount of BTC sitting in exchange wallets fell to its lowest value since November 2018. With the uncertainty surrounding centralized exchanges and the growth in demand for decentralized ones, it poses the question: What are the benefits of using decentralized exchanges? Cheaper Transaction Fees Trading on DEXs usually has lower fees when compared to trading on centralized exchanges. This presents a big risk to decentralized exchanges because crypto traders are always looking for the lowest rates to trade their assets. This competition may force centralized exchanges to drop their fees in order to compete with DEXs. Lower Counterparty Risk There’s a common saying in our industry: “Not your keys; not your coins.” This means that when you store your crypto assets on centralized exchanges or with any third party, you have no guarantee of ownership. We’ve seen many centralized exchanges get hacked over the years and their users left out of pocket. This isn’t an issue with a decentralized exchange because cryptocurrency trades are made directly between people through an automated process without relying on intermediary institutions. Financial Inclusiveness Many centralized exchanges restrict people from certain jurisdictions from using their services. This is not an issue for DEXs because anyone from anywhere in the world can utilize them. This creates a much more inclusive and fair ecosystem. Privacy With the amount of data that’s collected on each of us, privacy has become a very important consideration for many people today. With DEXs, people don’t need to provide their information to third parties, and there are usually no registration requirements for using the exchange. Despite these benefits, decentralized exchanges are in their very early stages, and a lot of development still needs to be done. Some of their disadvantages include a poor user experience, little or no customer support, only crypto-to-crypto trades, and scalability issues. In time, these things will improve, and as they do, decentralized exchanges will pose a major threat to centralized ones. I believe that over the coming years, DEXs will eat into the trading volume of centralized exchanges. [Read Full News]( The post [The Rise Of Decentralized Cryptocurrency Exchanges]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Visa and BlockFi to Launch Bitcoin Rewards Credit Card as Adoption Grows]( The new credit card will offer Bitcoin rewards rather than airline miles or cash.Visa and BlockFi are teaming up to launch a new credit card that rewards users with Bitcoin (BTC), setting the stage for wider mainstream adoption of digital currency. BlockFi, a New York-based startup specializing in crypto-backed loans and savings accounts, announced the partnership on Tuesday. As Bloomberg reported, the new credit card will reward purchases with Bitcoin rather than airline miles or other cashback rewards. Cardholders will be eligible to receive 1.5% of their purchases back in BTC The card, which carries a $200 annual fee, will be issued by Evolve Bank & Trust.Although the credit card will be available to the general public in early 2021, BlockFi account holders will be able to sign up beforehand. BlockFi is “excited to add credit cards to our suite of products and expand Bitcoin’s accessibility to a broader set of consumers,” said Zac Prince, founder and CEO of the startup.The BlockFi partnership is part of Visa’s Fintech Fast Track Program, which “aims to speed up the process of integrating” with the credit card network. Terry Angelos, senior vice president and global head of fintech at Visa, said the goal of the fast track program is to help innovative companies “scale with efficiency.” This isn’t Visa’s first foray into cryptocurrency. Earlier this year, the credit card company partnered with digital startup Fold to offer a debit card that earns crypto-based rewards. More broadly, Visa has outlined a positive vision for digital currency adoption — reversing an earlier, more hostile attitude. As Cointelegraph has reported, Visa’s evolving stance on crypto is to ensure that it maintains its leadership pace in the payments market. Currently, there are more than 25 cryptocurrency wallets connected to Visa’s systems. The credit card company is also helping to shape regulations toward digital assets around the world, including working with the World Economic Forum to develop recommendations on the use of central bank digital currencies. [Read Full News]( The post [Visa and BlockFi to Launch Bitcoin Rewards Credit Card as Adoption Grows]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ ------------------ Connect with TheFeedBinary on Facebook and Twitter [fb](  [tw]( ------------------ You received this email because you operate or create content for a website/service and based on your website it seemed like this could be important information to you and your users. FeedBinary daily newsletter is managed by [Postbox Consultancy Services Pvt. 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