Category: Crypto

In the summer of 2021, the Chinese authorities announced that they would restrict users from mining and trading cryptocurrencies because of its extremely volatile market. This news has subjugated the news cycle of cryptocurrencies, and it has led to a drop in the value of all crypto coins. Chinese authorities first urged all the financial service providers to strangle the crypto transactions and trading and then ordered crypto trading providers to shut down everything. All the initiatives coming from Beijing had great consequences on people who invested in cryptocurrencies, which has led to a downturn in the market.

Are all these actions of Chinese officials affecting the crypto market? Will it affect the demand and supply of digital assets? Moreover, it has been seen that whatever happened in China is also affecting other countries but not in a negative way.

Supporting Digital Yuan

It can be easily seen how intensifying tightening up on mining and trading of digital currencies comes along with China’s Central Bank Digital Currency project. Chinese officials implemented a lottery system in which stacks of fiat currencies in electronic money have been added to the wallets of around 200,000 Chinese citizens. This is done to test the digital currency electronic payment systems. It can be expected that China is working on large-scale trials and is soon to implement something big in the coming months.

If we talk about the distribution of economic or political power, leaders of China are in the habit of encouraging rivalry and pluralism. The sprawling crypto sector of China could avoid analysis as it was not in straight conflict with strategic plans made by the government of China. The professor of business analytics of China named Yu Xiong said in an interview that China would not allow Bitcoin revolution or other cryptocurrencies to grow or explode. He added that Bitcoin would be a financial disaster if China started using it as a currency. He explained that China has CBDC, which is centralized and controlled by financial institutions, and there is simply no need to promote any decentralized digital currency.

The Global Situation

The entire world is witnessing that the crypto industry is breaking into pieces. Chinese traders will cease crypto trading, and mining will vanish or open up shop in another jurisdiction. Chinese citizens who loved using digital assets will now have to use the government centralized alternative instead of digital assets.

Pharmco Rx is a Florida-based company for progressive care that has recently announced in its press conference that it will soon start accepting bitcoin as a form of payment for covid-19 testing. This pharmacy chain in the United States welcomes customers who want to pay with bitcoin for rapid testing services. The CEO of Progressive Care Inc. said that bitcoin is a great alternative for tourists that are coming from abroad to get the covid-19 testing services and treatment that they require.

The Company even said to kryptographe.com that there are around 50,000 visitors that come from abroad, and they are expecting a whole lot of customers that require testing services. They have even generated a scannable QR code that customers can scan easily to make bitcoin payments and fulfill the requirements of the cryptocurrency community. This will be easy for customers as well as companies to get payments hassle-free.

US-based Progressive Care Inc. has claimed that it has become the first pharmacy that has provided its customers the option of crypto payment three years ago. Recently the company is expanding its commitment to accepting a popular cryptocurrency, Bitcoin. Along with it, Pharmcorx is also enlarging their admittance to PCR tests that are required most by domestic and international airlines with the continuation of a covid-19 pandemic. It is a great solution for tourists post-pandemic to come to pharmacies from abroad and get their rapid testing done.

Florida-based Pharmcorx invites Bitcoin Owners

Not only is this, but Pharmcorx is also inviting bitcoin billionaire holders across the world to its locations. It is increasing its accessibility of providing rapid covid-19 testing services for global entertainment companies, international airlines, corporate employees, and chain restaurants. Only after announcing that Pharmco Rx has started accepting cryptocurrency have they been flooded with people. The company has already tested around 10,000 people and has earned around $1 million dollars as its revenue. This is what makes bitcoin currency different from fiat currencies. It opens a whole world of opportunities for companies and businesses to grow.

Bitcoin offers endless perks to its users and is helping every industry to grow in this competitive world. By the way, have you ever used any cryptocurrency to pay at the pharmacy for covid-19 fast testing? It’s the right time to make your work easier and get the testing services at your convenience.

The new episode of Blockchain and Booze was all about the Layer-two solutions and their use on the Ethereum network or Bitcoin Era. The show featured Stani Kulechov, CEO of Aave, Jack O’Holleran, CEO of Skale, and Antonio Juliano, founder of dYdX, the experts of the blockchain industry. The discussion was started with the high fees and was quickly converted to the advantages of decentralized finance. Transferring an Ethereum transaction is becoming more and more expensive and the network gets heavily congested; Layer-two solutions can be very helpful in this situation, it can decrease the load of the network and can also make transactions fast and less expensive. As Aave’s Kulechov stated, the disruptive potential of layer-two solutions is massive. Not only are they incredibly promising, but they are still a nascent technology that has yet to be fully implemented: “Lots of these [layer-two] developments on Ethereum aren’t even being deployed yet. We’re still very early on scaling up, but the huge number of people executing on layer one is an issue.” The three guests are in support of Layer-two as it can be a big step towards making the decentralized system more efficient and powerful. But the question that arises here is how Layer two actually work does.

Working Procedure of Layer-two explained:

When coming to the working procedure of Layer-two O’Holleran gave a brilliant example that stated, the settlement layer of Ethereum is the game of poker and layer-two is the record of gains and losses. In the games of poker, the players don’t cash out their winnings after every game instead, they just maintain a record of their wins in a ledger at the table; after the player decides to not play anymore, and they cash out their winnings. Similarly, in layer-two solutions, the users can trade with tokens in the layer-two network till they want to exchange it with Ethereum.

DeFi:

DeFi is short for Decentralized Finance, or which has no authority to control over. DeFi has many advantages such as transparency, free for all services, etc.; upon asked about the “end goal’ of DeFi is, O’Holleran responds after a short pause, “The power of these systems goes beyond DeFi. Marketplaces, social media, gaming: These can all be disrupted through decentralization. Ultimately, we want to democratize finance.” And Juliano adds to the statement “The goal is really big. The financial system is the most permissioned, trusting system in the world. We can build something parallel in DeFi — small at first, but eventually, it could be more profitable to use DeFi because of better interest rates.” The DeFi space appears huge and stable to many people as it crossed $100 billion but, when it comes to the financial view it is a very meagre amount. O’Holleran predicts that “The smart CeFi business will begin to figure out how to inject them into DeFi, and the DeFi space will improve as a result.” CeFi means Centralized Finance and it means that some companies and institutions store their funds to provide services.

The usage of cryptocurrency is increasing rapidly in India though there are many regulatory challenges. However, these challenges are considered as tiny by people. There is a lot of speculation going on in this country regarding the usage of cryptocurrency and legalizing this currency in the country along with the other cryptocurrencies. The speculations have gained momentum in February when one of the Ministers in India stated to Yahoo that there would be a nationwide ban on the usage of cryptocurrencies. People who hold this currency must exchange this in a matter of a few months. It shook the traders and there is a lot of fear that has been experienced amongst users of cryptocurrency.

However, the Finance Minister, Nirmala Sitharaman told CNBC that blanket ban on the cryptocurrency is something that is overstated. If there is anything related to the ban, there would be a much more calibrated approach would be followed.  The calibration has boosted the confidence levels of people and this has resulted in the spike of buying and selling cryptocurrencies in the cryptocurrency exchanges. There are a lot of sign ups happening in the exchanges. It was noticed in WazirX, which is one of the exchanges in the country. The head of the communication of WazirX, Priyanka Sharma stated that there the exchange has received a lot of signups in the month of April compared to the last six months. There is another cryptocurrency exchange that is based out of India; CoinDCX stated that the signups have been doubled in the first quarter compared to the first few months of 2020. It was stated by the CEO of the company, Sumit Gupta.

There are a lot of speculations happening in the country about the ban of cryptocurrency, which has been neutralized with the developments happening in the cryptocurrency world. There are many major firms who are embracing this cryptocurrencies along with bitcoins such as PayPal, MicroStrategy and Tesla which were not noticed by people since the start of COVID-19 lockdown. There is a steep rise in the crypto interest. In the last 12 months, India has observed a spike in the investment on cryptocurrencies with the bank removing the ban. In the lockdown, there are a lot of people who have shown interest in learning about the cryptocurrencies.

The data that is acquired from the publicly available plugins have disclosed that WazirX site has seen a rise by 630% in the last six months and the number of visitors to the exchange has climbed from 5,00,000 to 4 million. There are a lot of signups happening on the website from the people aging 20 to 30. People are pretty confident about the approach being taken freely when the laws related to cryptocurrency would be passed. CoinDCX also observed a rise in the visitors. The majority of signups that this exchange got is from the people aging 18 to 34 years. The FUD created in February would be dismissed and there is no bill that was passed yet. There is no ban that would happen on this currency. With the decision of the Supreme Court with not banning this currency, the demand for this is on the rise. There are around 750, 000 investors in this country who have invested in 340 plus crypto startups.

For the first time since the beginning of January, after a huge raid of 15 per cent in 24 hours, Bitcoin has sunk below $30,000. This Friday morning Bitcoin and crypto markets blew as the selloff, which started on Thursday the 21st of January, went on in the Asian exchange session with fervour.

Since yesterday, when Bitcoin dumped to $29,000, it has shed a massive 6,500 dollars. According to Tradingview, the BTC intraday peak was $35,500 and currently, the $30k level was restored.

Bitcoin price has corrected by 30 percent to the amount at which it is currently based (as is the typical one when looking at past market cycles) since it is all-time high at $42,000 on January 8 this year. Corrections are healthy and must be made, though, at which pace things go uninitiated on crypto markets. On the last bull run in 2017, several 30% corrections to the all-time high level were made on the route to December 2017.

As predicted, their big brother’s Altcoin lemmings follow in the abyss. The gross capitalisation of the market in the last 24 hours has fallen by nearly $150 billion, which according to Coingecko is now about $870 billion.

Ethereum has lost equal value to Bitcoin, which has been falling 15 percent to $1,150 as of today and has hit $1,050 as the daily low and is nevertheless advancing strongly. In the 11 percent slide, Polkadot fell below $16.

The rest of the Altcoin with Cardano, Bitcoin Cash, Chainlink, and Stellar whacking a little heavier are double-digit dumps around the board. ‘Plan B’ was an uneasy point of view from the stock-to-flow platform that the pricing model already has a 30% correction in place.

$31.5k Bitcoin is not as good as $40kbut investors expected the BTC price to the S2F model? Model S2F, like clockwork, is right on the road. The only way to deal with this is to have patience and give the investment a try if you want to ensure better growth.

The Technical Analyst ‘Altcoin Sherpa’ reported that a significant correction and creation of the commodity stabilisation system would be bullshit for long-term gains. The $30k area must however be maintained; recent bounces have led to lower heights which mean that the correction has not finished. Under this point, a failure could lead to 40 percent removal, down to 25 miles.

You are definitely searching for a bank that will help you handle your digital currencies in case you are a bitcoin user. Although, when you do not even look in the right places, this can be a challenging mission. Most banks actually refuse to conduct trades of cryptocurrencies. A big financial institution is mostly never crypto-friendly. It all leaves it a little hard for crypto dealers to locate the correct bank. This is the only reason this article will provide you with 6 important and useful tips to choose the ideal bank that is crypto friendly.

1.  Communicate with bank representatives

You could be up for just a rough ride when you’re using your standard bank account to purchase cryptocurrencies. As such purchases may appear odd to your bank, your bank account is at an elevated danger of becoming indefinitely terminated. This is why, before you make your first deposit, you have to communicate with the bank staff members. You must guarantee that their practises are in accordance with the transfers that are about to go into the account.

2.  Read online reviews

Grab the benefits of the available web posts made by people in the field. Any blogs excel in analysing anything relevant to cryptocurrency. On such kinds of online platforms, you can find a large variety of valuable material, and they can definitely be of great assistance in your quest for an ideal bank. Be certain that only credible intelligence sources are taken into consideration, so you can stop uniting with marketers.

If only a single banking firm appears to be consciously supporting an analysis, their analysis is generally too skewed to be beneficial. Search for resources that list each bank and its services with both advantages and disadvantages. Accurate feedback is neither solely constructive or derogatory, but all the positives and drawbacks of the issue are taken into account. When you browse via ratings, please ensure you note it, and you’ll probably find whatever you’re aiming for.

3.  Check their fees

You would have to weigh all the costs that the bank demands, much as when selecting a normal bank. Whenever you’re shopping for a loan, the far more significant thing to keep in mind is the rates. Whatever you choose, please ensure that before opening bank accounts, you verify all of the possible service charges. Throughout the coming years, that would save you from a major headache and it is not hard to do.

4.  Ensure to analyze if the bank accepts your preferred cryptocurrency

This move is frequently ignored, and it’s the source of a lot of anger. So, when you set up an account, don’t fall into the trap of not testing the banking services rules. At first sight, it may not be easy to discover what you’ve wished for, but there was enough out there for anyone. So, don’t get lost and continue searching for yourself.

5.  Do they have a phone app?

Although this may not be your prime issue when selecting a bank, too many items can be made simpler with a banking app. If you’re an individual who’s constantly on the move, so you’re definitely going to want to handle your finances as rapidly as feasible. Please ensure you still read the ratings on the application and still place protection as your primary concern. To be successful, the software platform has to be simple and intuitive to use. So, right before you begin to work with the bank.

Please ensure to also check the ratings on the application and always place your primary focus on safety. To be successful, the smartphone app must be simple and convenient to use. So, well before you begin working with the bank, verify it. Fortunately, for the applications installed on their websites, official app stores like Google Play and Apple Store do comprehensive tests. Although that in a way guarantees app reliability, it also does not indicate that the software is of top standard.

6.  Join an online community

The various e-money groups online are another wonderful place where you can scan for crypto-friendly banks. Many of your questions should be asked from those who were once that you stood. In order to find the right bank, their insights will tell you whatever you need. Try to inquire of as many more individuals as you can, of course. You’ll be capable of forming an impartial and informed view in that way. The more information you receive, the stronger your judgement would be.

In a new report, it is out that bitcoin Google searches are rising in Cuba. It is showing the broad interest of Cubans in Bitcoin. With the increased search for Bitcoins, Cubans are attracted to Bitcoin and use it as a digital payment method. Cuba is seen with the high BTC interest due to the influx of activity involving BTC. Due to the high part of Cubans towards bitcoin, more and more people are searching for it. In the pandemic times, tremendous attention is paid to Bitcoin by Cubans.

As per “Google Trends” data, it is in an update that Cuba holds the second rank in the list of people interested in Bitcoin within 30 days. Along with Cuba, Nigeria is also following the trend and appears in the topmost countries looking for BTC over Google search from April 2020. Among the rest five nations in the top Google searches for Bitcoin revolution, all are the African nations, including Ghana, South Africa, and Cameroon.

A significant light is paid upon Cuban’s increasing towards Bitcoin-search on Google due to the Cubans shifting towards Bitcoin as a payment method. It is due to avoid any sanctions stated by the United States over accessing the financial sector’s services digitally. Since several payment companies online are not active for the Cubans, the pandemic situation due to coronavirus created significant restrictions that impacted payment methods.

In October 2020, a YouTuber and programmer names Erich Garcia came up with a light over Bitcoin usage. Erich urged the nation to enable Bitcoin transactions for remittances on cross-border and claim that buying bitcoins can help transfer it to the island people using a crypto exchange medium available for Cuban island- BitRemesas. In the statement, it

included:

“We cannot get access over certain famous payment options, including Mastercard, Stripe, Union Pay, or Paypal. Not any resources are available under our accessibility. What is available by technology for us? It is Bitcoin and Blockchain!”

Mario Mazzola (Cuban-Italian origin entrepreneur) released the first exchange for decentralized Bitcoins in Cuba, named “Qbita,” in April 2020. The entrepreneur claims that Cubans can use the business to buy or sell bitcoins since other crypto exchange services are not in active status under the country. Mazzola called it a new deal that is available for Cubans.

In the recent pandemic time, crypto figures like Bitcoin came in the public figure as a much-known payment method for Cubans.

The decentralized finance sector needs to be boosted up and to do that, the cryptocurrency money manager, Panoxora wants a raise of $50M to give rise to new hedge funds and buy digital tokens which are basically associated with the decentralized finance sector. If one goes deep into the matter, they will find the main aim of defi is to displace wall street firms and banks because it is a blockchain industry that consists of automated trading and lending platforms with a motto of making wall street activities obsolete. But there is an issue that is making all the difference, as the market is very fast-growing and fast-moving and most importantly the completely virtual and digital nature of the ethereum and crypto industry is coming in its way.

According to Gavin Smith, the CEO of Panxora, this style and type have the potentiality to change the whole financial system of the global market and take it to new heights of achievements. Decentralized projects have topped the numbers this year in popularity. As the pandemic has already hit the economics of every country and has shaken the base, this has gained momentum in the meantime. Dollar-connected tokens, known as stable coins, can bring annualized rates up to 20% through Yearn.

Guarantee secured in Defi ventures. It has been flooded to $13 billion not long ago, as per Defi Pulse, a 20% increment since the starting of the year. Huge digital currency trades like Binance and Coinbase have hurried to take advantage of the pattern, posting Defi tokens while recognizing that a developing portion of market volumes may inevitably relocate to decentralized exchanging stages.

However, just in the previous week, the pattern has turned around; complete guarantee in the frameworks has declined to about $9.5 billion. What’s more, as costs tumbled for bitcoin (BTC), the biggest cryptographic money, and ether (ETH), the local badge of the Ethereum blockchain, Defi-partnered tokens fell significantly harder.

As per Messari, a digital money information firm, Aave, a decentralized loan specialist, found its “LEND tokens” down by 12% within seven days. OMG tokens have fallen 54%. YFI tokens are 29% down. It’s been “an outright bloodbath,” Messari experts composed Tuesday in their day by day pamphlet.

Cryptographic money investigators state Defi frameworks are probably going to develop over the long haul. However, momentary dangers are high in the early market, and a significant no of the computerized tokens are new. They can be troublesome or even difficult to esteem utilizing anything taken after the customary budgetary examination.

Chainlink, a supposed blockchain “prophet” that provisions value feeds to decentralized conventions, is the top-performing computerized resource this year among those with a market estimation of in any event $1 billion, climbing more than fourfold in 2020. Also, that is after a 45% decrease only this month. Smith said that they anticipate that the market should be unpredictable in the early years.

Smith, a precious metals-valuing investigator for the Singaporean items exchanging firm “Trafigura”, says that is fundamentally in light of the fact that barely any decentralized trades can ensure adequate consistency with hostile to illegal tax avoidance rules, and furthermore on the grounds that a symbolic posting from a trade hypothetically suggests some degree of screening.

For those who love to use various virtual currencies, there is good news. Many governments also have started to create an infrastructure to regulate such currencies and accept it with due validity and authentication. However, these currencies will be issued by the concerned government only, and not all currencies will be held valid. Central Bank Digital Currencies, also known as CBDC, is the cryptocurrency issued by the central bank of the governments. As of now, some countries are considering issuing digital currencies that will represent the fiat currency of the country. In the future, this can replace the physical form of fiat currencies either partially or entirely depending on the approach taken by the governments.

Where can CBDC be used?

The central banks issuing CBDC can make suitable decisions about where this will be applicable in the market. In the first case, they can allow it to be used by the general public just like fiat currency. Another case is where the central banks can restrict the usage of CBDC to only wholesale transactions like what happens between banks in the country. Other than that, the CBDC can also be used in between central banks.

Benefits of CDBC:

There are several benefits of using this method of digital payments for all transactions. Many countries are completely doing away with cash transactions, which can become the new norm of making payments in the future. As the cash transactions have set timings due to the working hours of banks, several transactions get delayed regularly. However, by moving on to digital currencies, the transactions can be done round the clock without any hassles.

There will be no need for financial infrastructure in remote areas in the long run, as everything can be done online using a simple smartphone. As internet access is easily available across all parts of the world, it is easy to use such digital currencies in the future.

Banks and financial institutions get to save lots of money as they need not develop physical infrastructure in all locations to offer the services. They will also need fewer human resources to provide round the clock online services for customers.

Risks of CBDC:

Cybersecurity is the most significant risk in this segment of the financial market. As there is a risk of such digital currencies being hijacked by scammers, it becomes difficult for people to adopt such technology soon easily.

China and the US have been competing in several areas for ages. This has now come into the cryptocurrency markets, and China is making good progress in this regard. Considering the developments, the US must collaborate with China and bring the best platform for everyone. As per the experts in both of these fields, these both nations are rapidly progressing, but if they come on a common platform and shake hands to develop these technologies, it can be too much beneficial for these platforms.

The US Senate Banking, along with the Housing and Urban Affairs Subcommittee, recently discussed the economic policy and considered the latest developments in the crypto industry. Many people believe that the time has come for a digital dollar as China is making good progress in the crypto world effects of which can be seen shortly.

Chinese government-backed CBDC project, which is working on Digital Currency Electronic Payment, is likely to replace SWIFT international financial messaging and payment system. Apart from that, China is also making good progress with regard to Blockchain technology.

While technically, both the US and China plan to work on similar technologies, the difference comes with economic interests and military interests along with political interests. Apart from that, the two countries also have a lot of disagreement with regard to human rights and privacy issues. These factors are not allowing them to work together on any project in a clear cut manner.

Corporate funding replacing government support

According to analysts, the digital currency sector in the US has attained this stage without any form of support from the government. Under normal circumstances, most innovation in the US happens with the support of government and private entities. However, in digital currency platforms, growth has happened due to support from corporate companies. The private entities are in no mood to collaborate with the government as this can bring in a lot of regulations at a later stage.

Facebook backed Libra also faced similar issues with the regulators and central banks when it came up with a proposal for a global stable coin. Facebook had to make a lot of changes after this, and it came with an updated version of Libra. In the latest development, the global ambitions were toned down, and the access to digital payments was restricted within the US. Apart from that, the concept of cryptocurrencies took a backseat, and blockchain technology came into the forefront.