Cryptocurrency adoption in the United States is picking up pace in 2022. According to the survey by Insider Intelligence that was reported in the Street, 10.7% of US crypto owners will use their cryptocurrencies for payments.
The use of crypto payments in 2022 is expected to increase by 70%. Approximately 3.6 million people are forecasted to pay for goods and services with their cryptocurrencies in the upcoming year.
More people (33.7 million) are also expected to adopt cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term by the end of 2022. Global crypto transactions are also forecasted to to come in above $10 billion.
Nazmul Islam, analyst at Insider Intelligence said: “It is easier now to invest in cryptocurrency than ever before. In 2021, cryptos became easier to purchase within apps consumers were already using, and while major financial institutions embraced crypto investments.
“Add hype surrounding meme stocks like Dogecoin to this easier accessibility, and you have a huge spike in ownership rates.
“Younger investors have a genuine positive outlook on blockchain
Blockchain
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term technology and are buying crypto to hold for a while, expecting prices to continue increasing in the long run.
“Older investors will be more risk-averse and leery of the volatile crypto market. Although, they are increasingly starting to invest in crypto as more retirement funds offer it as an option.”
Crypto-Friendly Countries
According to Coincub, Germany is the most crypto-friendly country for Q1 2022. Germany’s savings banks announced that it is considering adding a wallet for crypto trading. The savings banks’ assets are worth over 1 trillion euros and are the biggest financial group in Germany.
Singapore holds the second spot for the most crypto-friendly countries followed by the US Australia and Switzerland.
Coincub CEO, Sergiu Hamza remarked the following on the findings: “We look to give the most accurate picture of crypto worldwide, and to that end our ranking is always evolving. In Q1 2022, our scoring methodology better reflects the importance of some categories over others, and we have also added new categories including Talent (the availability of crypto courses by leading institutions) Fraud and numbers of ICOs within each country.
“As events develop, we go beyond legislation or pure numbers and introduce new dimensions that are crucial for defining a countries ‘crypto friendliness’ or maturity.”
Cryptocurrency adoption in the United States is picking up pace in 2022. According to the survey by Insider Intelligence that was reported in the Street, 10.7% of US crypto owners will use their cryptocurrencies for payments.
The use of crypto payments in 2022 is expected to increase by 70%. Approximately 3.6 million people are forecasted to pay for goods and services with their cryptocurrencies in the upcoming year.
More people (33.7 million) are also expected to adopt cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities. Read this Term by the end of 2022. Global crypto transactions are also forecasted to to come in above $10 billion.
Nazmul Islam, analyst at Insider Intelligence said: “It is easier now to invest in cryptocurrency than ever before. In 2021, cryptos became easier to purchase within apps consumers were already using, and while major financial institutions embraced crypto investments.
“Add hype surrounding meme stocks like Dogecoin to this easier accessibility, and you have a huge spike in ownership rates.
“Younger investors have a genuine positive outlook on blockchain
Blockchain
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term technology and are buying crypto to hold for a while, expecting prices to continue increasing in the long run.
“Older investors will be more risk-averse and leery of the volatile crypto market. Although, they are increasingly starting to invest in crypto as more retirement funds offer it as an option.”
Crypto-Friendly Countries
According to Coincub, Germany is the most crypto-friendly country for Q1 2022. Germany’s savings banks announced that it is considering adding a wallet for crypto trading. The savings banks’ assets are worth over 1 trillion euros and are the biggest financial group in Germany.
Singapore holds the second spot for the most crypto-friendly countries followed by the US Australia and Switzerland.
Coincub CEO, Sergiu Hamza remarked the following on the findings: “We look to give the most accurate picture of crypto worldwide, and to that end our ranking is always evolving. In Q1 2022, our scoring methodology better reflects the importance of some categories over others, and we have also added new categories including Talent (the availability of crypto courses by leading institutions) Fraud and numbers of ICOs within each country.
“As events develop, we go beyond legislation or pure numbers and introduce new dimensions that are crucial for defining a countries ‘crypto friendliness’ or maturity.”
Ethereum co-founder Vitalik Buterin graced the front page of Time Magazine this month after he was interviewed by the publication about the potential perils of the industry he helped tocreate.
During the 80-minute interview, Buterin explained the “dystopian potential” of digital assets if implemented incorrectly. Among his biggest worries are overzealous investors, high transaction fees and public displays of wealth by those claiming to have made a fortune trading crypto and nonfungible tokens (NFTs).
The interview also delved into other Ethereum-focused pain points for Buterin, such as how much power to exercise in the community during highly contentious periods in its evolution, including the infamous 2016 hack of a Decentralized Autonomous Organization, or DAO. The interview painted Buterin as a pragmatic leader taking a “middle ground” approach to solving issues that impact the community.
Over the years, Buterin has used his personal blog to advocate for technical solutions related to Ethereum’s development. In December 2021, he published “Endgame,” a thought experiment that explores the evolution of Ethereum 2.0, which is now referred to as the “consensus layer.” In the post, Buterin suggested improvements to network scalability with notable trade-offs — chief among them being the centralization of block production.
Related: Andreessen Horowitz invests $70M in Ethereum staking protocol Lido
The ETH cinematic universe is getting bigger: ETH 2.0 scaling, zk-Rollups, L2s & more. Meanwhile, @VitalikButerin just released his ‘endgame’ plan that solidifies his mission for a deflationary age. https://t.co/CbIo3WZXNH
While Ethereum’s evolution to a proof-of-stake chain remains mired in delays, the investing community has high hopes for the future. Ethereum’s Beacon Chain now has over 316,000 validators and roughly 10.1. billion ETH staked.
Examining crypto’s usage in Ukraine, sanctions, and the Biden Executive Order
Around the Block from Coinbase Ventures sheds light on key trends in crypto. Written by Connor Dempsey
There’s a gravitational shift taking place within our industry. Since Russia’s shocking invasion of Ukraine, crypto has been:
used to crowdfund tens of millions for the Ukrainian defense
incorrectly speculated as a viable avenue for the Russian government to evade sanctions
the focus of a historic Executive Order put forward by the Biden administration
At this point, one thing is clear: this technology is a major emerging force in the geopolitical landscape. In this edition of Around The Block, we examine crypto in a geopolitical context, along with the difficult questions the world is asking.
An email address for money
In the aftermath of Russia’s attack on Ukraine, crypto’s power for coordinating economic activity was put on full display once the official Ukrainian twitter account tweeted out a plea for aid, accompanied with two long strings of letters and digits.
These long strings of characters were the Bitcoin and Ethereum addresses of the Ukrainian government, and the tweet represents the first time a nation state has ever sought aid directly in crypto. At a time when the Ukrainian government and banking sites were being flooded with DDoS (denial of service) attacks, and crowdfunding platforms were deplatforming organizations raising aid for Ukraine, the utility of permissionless, borderless networks for sending money was vividly illustrated.
At this time of writing, the Ukrainian government has collected over $50M in Bitcoin, ETH, ERC-20 stablecoins, and in other assets like DOT, DAI, and even Dogecoin.
The Ukrainian government has said that it has been using the funds to buy military supplies including bullet-proof vests, drones, gasoline, and night vision goggles. What’s more interesting is that 40% of suppliers have accepted payment in crypto.
Many have pointed out the oddity of private citizens from around the world essentially crowdfunding a war effort. Yet another sign of just how unprecedented all of this is.
NFTs enter the fold
Fungible crypto assets weren’t the only donations to pour into the Ukrainian government’s crypto wallet. NFT enthusiasts also answered the call, donating over 200 pieces of digital art work and even ENS addresses. Most notably, a rare CryptoPunk worth an estimated $200,000 was donated.
What’s interesting is that since the ownership provenance of the CryptoPunk will forever be associated with the defense of Ukraine, this added historical significance could raise its value over the long term.
The NFT aid didn’t stop there, as they were also combined with another crypto primitive to support the defense of Ukraine: DAOs.
UkraineDAO
Decentralized autonomous organizations were cast into the limelight last year after ConstitutionDAO crowdsourced $40M in under a week in a bid to buy one of the original copies of the US Constitution. While the bid ultimately failed, it underscored the power that these software enabled organizations have for coordinating economic activity at the speed of the internet.
After a Ukrainian NGO (non-government organization) supporting the war effort called Come Back Alive was de-platformed from crowdfunding platform Patreon for supporting military activity, they also turned to crypto. Shortly thereafter, UkraineDAO was created to help support this NGO.
The DAO minted a 1:1 NFT of the Ukrainian flag and put it up on PartyBid, which allows groups to pool funds to buy NFTs. In essence, the DAO created its own NFT, crowdsourced as much money as they could to buy it from themselves and then donated the proceeds to Come Back Alive. All told, they raised $6.7M. They also distributed commemorative “valueless” tokens called LOVE to those who donated.
Crypto on the main stage
Between the Ukrainian government and various NGOs, over $80M and counting in aid has been raised. While in the grand scheme of things this amount is a nominal sum not likely to turn the tides of war, it’s also far from insignificant. The sum represents over 20% of the $350M pledged by the Biden administration and is a powerful display of the promise that decentralized, borderless money holds.
Slowmist, where we’re pulling this data, also noted that when you factor in other organizations and cryptocurrencies they’re not tracking, the full figure is likely over $100M. The Giving Block, for example, raised over $2.3M in crypto donations for over 20 non-profits supporting Ukrainian relief.
Beyond support of the Ukrainian government and organizations, crypto has also proven useful for individual Ukrainians affected by the crisis. One Ukrainian who fled to Kazakhstan reported that he lost access to his savings and that his credit cards were no longer functioning, leaving crypto as his only financial life raft: yet another example of the utility of permissionless finance.
At their core, Bitcoin, Ethereum, and the like are neutral technologies that anyone with an internet connection can use. While we celebrate the use of these neutral technologies to help a nation defend itself against a foreign invader and as a lifeline for refugees, it also begs the question: what about their use by those on the other side of the conflict? Principally, the Russian government.
The burning question
Western governments responded to Russian aggression with unprecedented sanctions against the Russian government. This coincided with widespread narratives surrounding the potential for cryptocurrencies to be used to circumvent those very sanctions.
Before we examine the fact or fiction behind these claims, it helps to understand what these sanctions entail.
Russian sanctions
Since Russia invaded Ukraine, governments around the world, including the U.S., have imposed sanctions targeting the Central Bank of Russia, major Russian commercial banks and companies, Vladimir Putin, Russian elites, among others. In aggregate, these sanctions cut targeted individuals and entities off from international banking and in many instances, freezes their assets.
Among the most substantial sanctions imposed was kicking major Russian banks out of SWIFT, which is the financial network used by over 11,000 banks and institutions to move trillions of dollars across borders. This severely limits Russia’s ability to receive payments for oil and gas: their main export. For context, when Iranian banks were banned from SWIFT in 2012, and sanctions were imposed on Iranian oil purchasers, Iran lost nearly half of its oil export revenue and 30% of its foreign trade.
The most drastic sanction is from the US, UK, and EU banning transactions with the Russian Central Bank. The Russian Central Bank holds roughly $630B in the form of the world’s major reserve currencies — the dollar, euro, pound, yuan — as well as 2,300 tons of gold. With this sanction, Russia suddenly has no one to sell its reserves to, rendering its entire stockpile useless.
Is crypto their answer?
We’ve seen public speculation on how crypto could be used to evade those sanctions. However, that speculation has been unfounded as the crypto market is simply not large enough to help Russia meaningfully circumvent them.
Consider the Russian Central Bank’s $630B in immobilized assets. That’s 80% of Bitcoin’s market cap and larger than the rest of the crypto market put together. Converting that much fiat into crypto would take 5–10x the total daily traded volume of all digital assets, so the liquidity just isn’t there.
Additionally, as our Chief Legal Officer previously pointed out, trying to obscure large transactions using open and transparent crypto technology would be far more difficult than other established methods (e.g., using fiat, art, gold, or other assets).
The Biden Executive Order
As crypto played a significant role in the defense of Ukraine, it was also cast into the fore of the American political system. Late last week, the Biden Administration published its long awaited Executive Order on digital asset regulation.
The Executive Order simply directed federal agencies to study the benefits and risks of digital assets, as opposed to putting any immediate legislation into action. On one hand, many were pleasantly surprised with the optimistic tone of the EO, as it acknowledged crypto and Web3 technologies as critical for the future of U.S. national economic competitiveness. On the other, the report focused more on the potential risks of crypto rather than its societal benefits.
The EO calls on a total of 23 federal government agencies, organizations, and White House Offices to assemble huge reports on the risks stemming from crypto. This outsized focus on risk, when compared to past EOs, has caused some people to worry that the Biden Administration doesn’t fully recognize the power and potential of digital assets, even as that power is being plainly demonstrated on the world stage.
While the EO may have felt like a milestone, it is ultimately the start of a long road ahead. One in which the whole of the US government will finally seek to fully understand the importance of this technology. It is critical that the government fully explores not only the risks, but also the benefits that digital assets bring, with enough transparency to allow the public to weigh-in on a federal approach to regulation.
Ultimately, this presents a tremendous opportunity for the industry to engage with regulators about how to best embrace the transformational nature of crypto and Web3 technologies.
Closing thought
To sum it all up, regardless of how you feel about crypto’s application in funding a war effort or the increased attention it’s receiving from the most powerful government in the world, it’s apparent that we’ve entered uncharted territory: this next phase of crypto adoption will look drastically different from the last.
ATB Podcast: Crypto’s Role in the Ukraine Crisis with Elliptic’s Dr. Tom Robinson
It’s been a rough start to 2022 for crypto investors. Bitcoin (CCC:BTC-USD) has witnessed meaningful correction and altcoin have followed.
Unrest in Kazakhstan has resulted in Bitcoin network power slumps and that’s one reason for the correction. Further, the Federal Reserve has signaled tapering and rate hikes are coming in 2022. Relative tightening of liquidity is another reason for some weakness in the crypto world.
However, volatility is nothing new in the crypto space. In the past, Bitcoin has witnessed sharp correction. It has been followed by a strong reversal rally. I also believe that we are at a point where Bitcoin dominance is likely to decline on a relative basis.
Altcoin dominance will increase and the out-performers will be coins that have a strong use case. In uncertain times, meme coins or low utility coins are likely to be the worst hit.
Overall, real interest rates are likely to remain negative in most parts of the world. Even if contractionary monetary policies are pursued. This will continue to encourage investment and speculation in risky asset classes.
I therefore believe that the recent correction is a good opportunity to accumulate some quality altcoins.
Let’s discuss seven cryptos that are positioned for a strong rally in the near-term. These altcoins are also likely to remain in an uptrend in the coming quarters.
Binance Coin (CCC:BNB-USD)
Zignaly (CCC:ZIG-USD)
MarketMove (CCC:MOVE-USD)
MarhabaDeFi (CCC:MRHB-USD)
Torum (CCC:XTM-USD)
Fetch.ai (CCC:FET-USD)
Rari Governance Token (CCC:RGT-USD)
Source: Robert Paternoster / Shutterstock.com
In October 2017, BNB coin was trading at three cents. The coin touched all-time highs of $686 in May 2021. This serves as a good example of the value creation that’s likely to come by holding fundamentally strong projects.
After being a star performer in 2021, BNB coin has been in a downtrend in the recent past. At current levels of $487, it’s worth buying for short-term and long-term gains.
As an overview, Binance is the top centralized cryptocurrency exchange in the world. The exchange currently has 355 listed coins as compared to 139 coins listed on Coinbase (NASDAQ:COIN). For investors who are bullish on continued adoption growth of cryptocurrencies, BNB coin is a core portfolio hold.
Last month, Binance partnered with Dubai World Trade Centre. The partnership will set up an international virtual asset ecosystem. In December 2021, Binance also acquired 18% stake in Singapore based regulated private exchange, Hg Exchange.
It seems that Binance has ample financial flexibility to pursue acquisition driven growth. Further, Binance Labs has been investing in attractive projects in the crypto world. Once bullish sentiments are back, it would not take long for BNB coin to surge.
Source: Shutterstock
I had talked about Zignaly in October 2021 as a project that has a strong use case. From November 2021 lows of two cents, ZIG coin is already higher by over 280%. As a matter of fact, the coin had touched highs of 18 cents in the recent rally. I believe that ZIG coin is worth accumulation with the market sentiment driving the coin lower.
The recent market volatility and downside has further underscored the importance of Zignaly project in the cryptocurrency ecosystem. The idea of Zignaly is to follow trading experts for profits. The platform has already gained significant traction with 350,000 users and $120 million in assets under management.
It’s worth mentioning here that Zignaly profit-sharing and trading has an edge over copy trading. In the latter, the user is always one-step behind the trader. However, in profit-sharing, the user is a co-investor with the trader. Zignaly claims that the top 20 traders on the platform delivered 270% annual profits. Therefore, just by profit sharing with these traders, investors can make meaningful gains.
I particularly like the project as there are thousands of new investors taking a plunge into cryptocurrencies on a daily basis. It makes sense to test the waters with an expert before pursuing individual trading.
Source: Shutterstock
In the last two-weeks, Bitcoin has trended lower. However, during the same period, MOVE token has been in an uptrend.
MarketMove is another project that I have talked about in the past. However, the project is undergoing a complete revamp with Move X slated to be launched in the second week of January 2022. This is a key reason for MOVE token to trend higher.
MarketMove project started with a focus on artificial intelligence (AI)-driven Safety Audit of projects. Further, the project aimed at bringing features like stop-loss and limit orders in decentralized finance.
However, with the coming launch of Move X, the project vision seems to have widened. While the whitepaper is still to be unveiled, Move X swap will be cross-chain and allow investors the best swap rates, which will be powered by artificial intelligence. Therefore, the idea is not just to provide a platform to exchange assets (across chains), but to exchange at the best possible rates.
Additionally, Move X intends to differentiate itself from other DeFi projects by being a complete suite of high-end tools. As an example, the project aims to provide investors with suggestions on how to earn using staking and farming across blockchains.
Overall, MarketMove project is just two quarters old. It seems that the team has a vision of making the project a one-stop shop for all DeFi needs. In my view, some exposure to the project can be considered for potential multi-fold returns.
Source: Shutterstock
MRHB is another token in the crypto space that has survived the recent carnage. On Dec. 27, the token was trading at four cents. It’s already higher by over 200% at 13 cents.
So, what’s the differentiating factor?
MarhabaDeFi claims to be the first project in the decentralized world that builds a shariah-compliant suite of crypto financial solutions. According to CoinGecko, the project is focused on “Islamic Finance liquidity pool which is currently over $3 trillion in size, growing, and serves over 1,000,000 people globally”
Liquidity Harvester is one feature of MarhabaDeFi. It’s for income generation across a vast range of sharia compliant pools that will deliver APY in the range of 5% to 25%. The project also has a cross-chain DEX Aggregator that splits large orders across various decentralized exchanges to reduce the slippage. The launch of interest-free crypto financing is also on the cards in 2022.
With a lot happening in the NFT space, MarhabaDeFi has introduced Souq NFT. This is a NFT collection and creation platform. It also includes listing and auction marketplace.
Overall, MRHB token looks attractive with a diversified offering in an unexplored area of Islamic finance merging with the crypto world. It’s not surprising that the coin has been trending higher even as broad markets decline.
Source: Shutterstock
XTM coin has been in a correction mode in the recent past. However, it’s worth noting that XTM is still higher by 700% from lows of October 2021. The coin has therefore witnessed a meaningful rally. I believe that the correction provides a good entry point for long-term investors.
As an overview, Torum is the first social media platform that’s specifically designed for cryptocurrency users. According to the website, the social media platform already has 203,361 users. With a global reach, it’s likely that Torum users will continue to increase.
Further, there are few factors that are likely to support user growth as the project visibility increases.
First and foremost, the platform rewards users for activities that include posting, liking posts and for creating threads on specific topics. Users are rewarded XTM coins. This provides an incentive to remain active on the social media platform.
Furthermore, Torum is expanding beyond just social media. The project already serves as a news aggregator in the crypto space. Additionally, NFT Marketplace and NFT Launchpad are catalysts for sustained user growth in the social media platform. Besides the launchpad, the Torum DeFi also provides investors with liquidity farming and cross-chain swapping.
Another interesting upcoming feature of the project is Torumgram. This will connect Telegram with Torum, “essentially allowing the community to use Telegram directly on Torum.”
Source: Shutterstock
Fetch.ai project is another name that comes with a strong use case. The project aims to bring the application of machine learning and artificial intelligence to the decentralized world.
FET token has been an out-performer in the last 12-months. Even after the recent decline, the token is higher by 550% over this period.
In terms of the use case, Fetch.ai has applications in areas that include smart city, decentralized delivery agents and autonomous AI travel agents, among others. Last year, the project developed a decentralized marketplace for global manufacturer, Festo.
In particular, the smart city project promises significant reduction in carbon footprint. With rising environmental concerns, this can be a game-changer. Fetch.ai estimates that the “implementation of smart-city infrastructure will result in 34,000 tonnes Co2 emission reduction annually.”
In March 2021, Fetch.ai also received institutional investment of $5 million. This will help in building and accelerating the company’s AI application. Among the project partners, there are big names like Bosch and Blockchain for Europe.
Overall, FET token looks attractive below 50 cents and is worth considering for the medium to long-term.
Source: Shutterstock
As the world of decentralized finance swells, RGT token is worth holding for the long-term.
The token had touched all-time highs of $64.6 in November 2021. After a meaningful correction, the token currently trades at $26.88. With a limited supply of 12.5 million tokens, I am bullish on RGT touching new highs once the sentiments reverse for cryptocurrencies.
As an overview, Rari Capital is involved in lending, borrowing and yield generation in the DeFi space. For Rari, growth has been stellar in the last 12-months.
Currently, the community has more than 10,000 members with a total value locked of $1.1 billion. Rari Capital provides more than 100 DeFi opportunities.
It’s worth noting that even with a potential rate hike in 2022, real interest rates will remain negative. Rari allows investors to deposit crypto-assets and earn a robust yield. It’s therefore very likely that the total value locked in DeFi opportunities in the project will continue to swell.
This will translate into upside for the governance token that looks undervalued. To put things into perspective, the project currently has fully diluted valuation to total value locked ratio of 0.33.
On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
The post 7 Killer Cryptos to Buy for January appeared first on InvestorPlace.
As most of us were enjoying some R&R over Christmas break, Coinbase Cloud protocol specialist Elias Simos was scouring the web for the most interesting crypto charts of 2021: 69 of them to be exact.
In the latest Around The Block podcast, we sit down with Elias and discuss some of the most interesting data points from the year, and what it all means for the future. (High level takeaways below)
Metaverse and smart contract assets outperform
Price isn’t everything, but the two top performing assets in 2021 are indicative of broader trends throughout the year. 2021’s best performing assets were:
Metaverse gaming tokens
Smart contract platform tokens
The governance tokens of gaming worlds Axie Infinity (AXS) and The Sandbox (SAND) each posted 16,000 and 13,000 percent gains respectively. Meanwhile, platform tokens from Polygon, Terra, Solana, and Fantom, all posted 8,000% gains or more.
Given that play-to-earn gaming had a breakout year, and layer 1s not named Ethereum saw strong adoption, these trends should be of no surprise. Now let’s dig a bit deeper.
The state of Layer 1s
Ethereum’s native token (ETH) did a modest 2X over the year, while it was somewhat of a rough year for Ethereum DeFi blue chips, with the DeFiPulse index down 80% over the year vs ETH.
The price of DeFi assets doesn’t tell the entire story, however. TVL of Ethereum DeFi applications showed tremendous growth over the year, and the number of unique Ethereum addresses interacting with DeFi protocols 4x’ed.
DefiLlama and Decentral Park Capital
Regardless, ETH killers and sidechains won the year when measured by growth of overall market share.
DefiLlama and Decentral Park Capital
The great migration & the EVM standard
In May, there was $200M sitting in Ethereum bridges. That number climbed to $20B by the end of the year, underscoring the great migration of value from Ethereum to other ecosystems.
Remember that the EVM is essentially the brain of Ethereum that performs computations for the network. When other Layer 1s adopt the EVM, it makes deploying existing applications on new networks easier for developers, in addition to making it easier for users to migrate to these new chains.
The dominance of value on EVM compatible chains (Avalanche, Polygon, etc) suggest that a standard is forming around the EVM. This should ultimately keep Ethereum as the gravitational center of the smart contracting world, as ETH applications and assets will be natively interoperable with most other chains.
Rise of the app chains
While EVM chains still dominate the landscape, the end of 2021 saw a rise in value on Tendermint chains. Recall that Tendermint is a standard popularized by Cosmos, that lets developers build application specific blockchains that are capable of interoperating with one another.
Building app-specific chains in the past came with significant opportunity cost, because they were cut off from most liquidity and users. With the growth of Tendermint chains like Osmosis (AMM), Umee (lending), and Stargaze (NFTs), that’s becoming less of an issue.
Now that these app specific chains have a widening array of use cases and liquidity that they can interoperate with, look for more builders to take advantage of customizability that these chains offer in 2022.
The ENS airdrop + DAOs
In 2021, ENS reminded everyone of Web3’s native user acquisition strategy: the airdrop.
ENS (Ethereum Name Service) addresses are best thought of as email addresses that you can send money to (e.g. Jimbo.eth). After 5 years in development, the project shifted to a DAO model, and airdropped ENS governance tokens to every user with an ENS address.
Since the ENS DAO treasury collects revenue from new .eth registrations, revenue for the newly minted ENS DAO treasury ramped up significantly: another testament to how much a well orchestrated airdrop can move the needle.
Dune Analytics, matoken.eth
Beyond ENS, DAOs had a strong year, evident by the growing usage in key pieces of DAO infrastructure. Gnosis Safe, which is the most popular multisig wallet DAOs use to manage their treasuries, saw 3x growth in both the number of Safes and transactions executed in 2021. Snapshot, a tool that helps DAOs execute off-chain votes with on-chain verification, exhibited strong growth as well.
EN-EFF-TEES
Activity on the dominant platform for NFTs tells you all you need to know about the breakout year NFTs enjoyed.
Dune Analytics, Richard Chen
OG NFT CryptoPunks saw 60x YoY growth, reaching a total volume of 650K ETH, or $1.7B at current prices. This figure however, includes a flashloan powered $500M wash sale — a powerful reminder of how much subjectivity there is in on-chain data.
The second most notable NFT project of the year was Bored Ape Yacht Club, which went from a niche community to the celebrity NFT of choice, including the likes of Steph Curry, Shaq, Justin Bieber, Jimmy Fallon, Paris Hilton, among others. At one point the BAYC floor (price of the cheapest NFT in the collection) momentarily flipped the CryptoPunks floor.
In the heat of new issuances flooding the market, and older NFT collections achieving billion dollar market caps, the average price of NFTs changing hands did a 150x from 0.1 ETH to roughly 15 ETH by year end.
Dune Analytics, Richard Chen
One of the most interesting NFT launches of the year was Loot (covered here), which let anyone mint 1 of 8,000 NFTs that could form the basis of a Dungeons and Dragon style RPG game. Initial excitement was skyhigh, before fizzling out as time went on.
Dune Analytics
While Loot’s flame may have dimmed, it was still a landmark year for NFT based gaming, with the breakaway success of Axie Infinity bringing play-to-earn and GameFi narratives to the forefront. As the data shows, Axie Infinity NFT volume dwarfs that of any prior NFT based game.
CryptoSlam and The Block
Lastly, while Ethereum was the center of the NFT show, marketplaces appear to be springing up across multiple chains. The data shows that lower fee environments are enabling different types of user activity. Solana’s Magic Eden, for example, has more transactions than OpenSea since users are unencumbered by exorbitant gas fees.
More in Elias’s epic thread
Beyond being chock-full of illuminating data points on the year in crypto and Web3, the full thread underscores the beauty of on-chain data and the increased maturity of the industry. The ability for one person to put together a dataset this rich is a testament to all of the great data providers the industry now has at our disposal.
Dogecoin: one of crypto’s most hyped coins. It seems as if it is always in the mouths and minds of young investors. Moreover, more notable investors have praised the coin both for its comedic origins and as a viable “medium of exchange.”
But what exactly is this comical fad? Additionally, what does it have to do with a Shiba Inu? Why is it that both Mark Cuban and Elon Musk are promoting this coin despite the fact that it literally started as a joke? The answers may surprise you.
The Origins Of Dogecoin
If you have heard the rumors, it is true: Dogecoin, quite literally, is a joke coin. Billy Marcus, a co-creator of Dogecoin, initially minted the coin in 2013. Bragging to CNBC, he says the coin was created in, “about two hours.”
The original Doge meme in its glory | Source: Wikipedia
Originally made as a parody of Bitcoin, and based off of the popular “doge meme,” Dogecoin spread like wildfire in the world of crypto. From Investopedia, “Jackson Palmer, a product manager at the Sydney, Australia office of Adobe Inc., created Dogecoin in 2013 as a way to satirize the hype surrounding cryptocurrencies. Palmer has been described as a “skeptic-analytic” observer of the emerging technology, and his initial tweets about his new cryptocurrency venture were done tongue-in-cheek.”
Related Reading | Latest News On Dogecoin, Trends And Analysis
Later on, Marcus reached out to Palmer to create a new cryptocurrency. When Marcus’ desire to create a crypto and Palmer’s scrutiny towards crypto met, Dogecoin was born.
From Investopedia, “Markus based Dogecoin’s code on Luckycoin, which is itself derived from Litecoin, and initially used a randomized reward for block mining, although that was changed to a static reward in March 2014. Dogecoin uses Litecoin’s scrypt technology and is a proof-of-work coin.”
Who Is Behind The Hype?
As you have probably heard by now, Elon Musk, now crowned “Daddy Doge” by many crypto enthusiasts, has been a huge supporter of the coin. In an SNL skit called “Weekend Update,” Musk is seen participating in a comical bit featuring the coin. As the skit ends, Musk is seen yelling, “To the Moon!’ The studio audience is heard cheering following Musk’s remark. As a result, Dogecoin saw a spike in their prices shortly after Musk’s appearance on SNL.
Related Reading | Every Doge Has Its Day: Dogecoin Founder Buys Back Into DOGE
Mark Cuban, a multi billionaire investor, is also a huge supporter of the coin. As of recently, Cuban pitched in on his thoughts for Dogecoin, “It’s a medium that can be used for the acquisition of goods and services. The community for doge is the strongest when it comes to using it as a medium of exchange.” Despite this remark, Cuban has faced scrutiny over the fact that he owns less than $500 in the coin.
What Is Next?
Just recently, notable figures have joined the Dogecoin Foundation. Vitalik Buterin, Ethereum’s founder, has just joined the team. Additionally, Jared Birchall, head of Musk’s family office, has joined the team as well.
Will this joke coin reemerge to comical heights? Recent drop amist crypto gains suggests otherwise | Source: DOGEUSD on TradingView.com
Despite a recent drop in prices, the team remains optimistic. According to Yahoo, “Now, the group is looking for three years’ worth of funding to hire a staff and work on Dogecoin full-time.” As always, the future is uncertain, but recent changes to the group can most definitely be viewed as a positive for Dogecoin investors.
Featured image from iStockPhoto, Charts from TradingView.com
Will this joke coin reemerge to comical heights? Recent drop amist crypto gains suggests otherwise | Source: DOGEUSD on TradingView.com