Comes every sunday Hodler’s digest Follows all of the major crypto news from the past week. Basic reading for all hodlers!
Top Stories This Week
European Commission presents digital financial package for crypto and blockchain
The days of murky legal waters and uncertainty for the crypto industry could come to an end if the European Commission is to be believed.
A new digital finance package was unveiled, proposing new laws for crypto assets in Europe, including “tough requirements” for companies issuing stable coins with a circulation value of over $ 5.8 million.
Organizations are also required to publish a whitepaper with mandatory disclosure requirements, unless it’s a small project that issues stable coins with a total value of less than $ 1.1 million.
The European Commission wants to encourage innovation while protecting consumers. However, the International Association for Trusted Blockchain Applications has concerns. It fears The proposals could “overload a young and innovative industry with costly and complex compliance and legal requirements that are disproportionate to the political goals it pursues”.
Overall, the European approach can best be described as cautious. The European Central Bank says there is one real risk of stablecoin runs that could “trigger negative contagion effects on the entire global ecosystem”. And the President of the ECB, Christine Lagarde, said any digital euro released would only serve as “a supplement, not a substitute for cash”.
Glassnode: The Uniswap team may have misled the community about the exercise of team tokens
The decentralization of Uniswap has been called into question. A recent post by Glassnode suggested that the platform’s developers may have deliberately misled the community on how the team’s assignment of UNI tokens will carry over over time.
40% of all UNI tokens have been allocated to the team, investors and advisors of the platform. Although these are meant to be spread out over four years, there is no public schedule and some of these tokens may not be blocked.
There are also concerns that the only company with enough UNI tokens to submit a governance proposal is Binance, “a central exchange in direct competition with Uniswap”.
In an interview with Cointelegraph this week, Changpeng Zhao, CEO of Binance, said, “I see a lot of bubbles in the DeFi area. There are many projects with empty promises and nothing going on. And many DeFi projects are only hot for two weeks and then die.”
Meanwhile, Ethereum congestion concerns Refuse to let up as leading DeFi protocols race to implement Layer Two scaling solutions as ETH gas charges skyrocket and the network struggles under demand.
MicroStrategy CEO could “liquidate $ 200 million in Bitcoin on a Saturday.”
Michael Saylor raised alarm bells this week when he said the $ 400 million Bitcoin his business intelligence firm MicroStrategy holds could be liquidated at any time.
He told Bloomberg that he would not hesitate to dump MicroStrategy’s 38,250 BTC immediately if the returns on an alternative asset increased.
“We can liquidate it any day of the week, any hour of the day,” said Saylor. “If I had to liquidate $ 200 million Bitcoin, I could do it on a Saturday.”
That’s not to say that such a whale movement – which would undoubtedly affect the price of Bitcoin – is imminent. “We’re pretty confident that bitcoin is less risky than holding cash, less risky than holding gold,” he said.
In other bitcoin news this week, a pseudonymous bitcoin trader was described 23 important technical and fundamental factors This could spur BTC’s medium-term bull fall. The data points shared by Byzantine General can be broken down into four main themes: a less overheated market, a neutralizing futures market, less leveraged traders and a strengthening of fundamentals.
Could holding 0.28 BTC one day put you in the top 1% asset class?
A Bitcoin evangelist caused a stir this week when he said that owning a small portion of BTC could lead to significant wealth … if it comes to mass adoption worldwide.
Twitter personality Davincij wrote: “For the current 7 billion people, there is only 0.0027 BTC. If you have HODL 0.28 BTC and Bitcoin is the world reserve currency, you are the top 1%. So, HODLing 1 BTC means you may have 400x more than the average person (worst case scenario). “
It’s worth noting that many things have to go right for this to be possible. Bitcoin’s market capitalization is currently $ 197 billion – while that of gold is $ 9 trillion. The US dollar – the world’s reserve currency – has an offer of $ 2 trillion in circulation.
Then there is the problem of altcoins. When people invest in other crypto assets, the money is diverted away from BTC, making it harder for the asset to hit top billing as a global one stop shop.
According to a Cambridge study, 100 million use crypto-based assets worldwide
This next story illustrates the Everestian Challenge Bitcoin faces.
A new study by the Cambridge Center for Alternative Finance recently found that 100 million people worldwide currently own Bitcoin and other blockchain-based assets.
That is a 189% Increase compared to 2018, when there were an estimated 35 million identity-verified crypto users worldwide.
The numbers from the third quarter of 2020 also showed that it was up to 191 million Accounts on crypto exchanges – a number that does not contain any self-hosted wallets.
Winner and Loser
At the end of the week, Bitcoin is at $ 10,747.42, Ether at $ 355.96 and XRP at $ 0.24. The total market capitalization is $ 343,405,160,002.
Among the top 100 cryptocurrencies are the three best altcoin winners of the week THETA, Hyperion and The Midas Touch Gold. The top three altcoin losers of the week are UMA, Quant and SushiSwap.
For more information on crypto pricing, see Market analysis by Cointelegraph.
The most memorable quotes
“The ban on crypto trading would cause India to fall behind other nations that allow it. By lobbying the Indian authorities, industry participants can implement the urgently needed crypto rules in the country. “
Charles Bovaird, Quantum Economics VP
“You get in and you just don’t have to be the one holding the bag.”
Dave Portnoy, Barstool Sports founder
“I have high hopes for Ethereum 2.0. For Ethereum 1.0, I underestimated Vitalik. When he spoke to me about the project in 2015, I said: He bit too much to chew. But to my surprise, he proved me wrong. He delivered Ethereum. I think the Vitalik team and community are able to handle some really tough technical challenges. And they are strong innovators. “
Changpeng Zhao, CEO of Binance
“The longer Bitcoin stays above $ 10,000, the more bullish Bitcoin is.”
Ton Vays, experienced dealer
“I am a believer. I think it will happen – [adoption] it comes. It’s so important to the world and I want the world to know and I want other people in the world to come on board. “
Tim Draper, Tech billionaire
“Eight percent of those with low financial literacy said they owned cryptocurrencies compared to 4 percent of Canadians with high financial literacy.”
Bank of Canada
“Bitcoin is better at being gold than gold – and not just gradually, but an order of magnitude or 10 times better.”
Tyler Winklevoss, Gemini co-founder
Forecast of the week
According to Tone Vays, the worst-case scenario for Bitcoin is now $ 7,000
Bitcoin hits $ 7,000 is now the “worst-case scenario,” believes Tone Vays.
On his podcast, the veteran trader said that $ 9,000 would be a very good buy-the-dip opportunity.
Vays added that he thinks $ 9,000 is the “most realistic” result should a bearish trend conquer the Bitcoin markets.
“The longer Bitcoin stays up $ 10,000The more bullish Bitcoin is, ”he continued. “The consistency on the way up is bullish. Consistency on the way down is bearish. “
BTC / USD has retained $ 10,000 Support this week but has so far failed to regain higher levels after falling from $ 11,000 a few days ago.
According to Vays, “the sky’s the limit” when reclaiming Bitcoin $ 12,000.
FUD of the week
Most Americans are against a CBDC, a poll shows
A new study suggests that the majority of American citizens are against the introduction of a central bank digital currency.
Of the 400 people who responded to Genesis Mining’s questions, more than 50% opposed the proposal that the government ditch paper money in favor of a digital dollar.
There were some signs of this in this year’s survey. Almost 25% agreed that cash should be replaced with a CBDC – twice as many as last year.
The poll was released the same week that Cleveland Federal Reserve President Loretta Mester found that the Fed conducted extensive research into the risks and benefits of CBDCs during the COVID-19 pandemic.
The major Indian exchange is proposing a new legal framework to avoid a crypto ban
According to its own information, one of the largest trading platforms in India has developed a framework for regulating cryptocurrency in the country.
BuyUcoin, with more than 350,000 users, described the framework as a draft of community-driven rules, suggestions, and implementation methods.
The exchange also said it has the support of “all Indian cryptocurrency stakeholders”.
BuyUcoin CEO and co-founder Shivam Thakral described the framework presented to the Indian government as “the first milestone in a long journey to bring cryptocurrency to the masses”.
Are we stupid Financial illiterates “twice as likely to own crypto”
According to a report by the Bank of Canada, those with better financial education are more likely to be more informed about cryptocurrencies, but less likely to own them.
While 4% of Canadians with high financial literacy stated that they own cryptocurrencies, 8% of Canadians with low financial literacy own digital currencies such as Bitcoin.
This report supports a February 2020 report by the ING Think Forward Initiative, which warned:
“A large part of the cryptocurrency market [is compromised] from undemanding investors with less financial knowledge. These investors are likely to overestimate the prospects for returns in cryptocurrencies and underestimate the risk associated with investments. “
However, a 2018 eToro survey found that 44% of online investors avoided trading crypto because they felt they lacked the right education.
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