Global peer-to-peer bitcoin marketplace, Paxful, announced today the addition of Tether (USDT) to its platform. USDT belongs to a class of cryptocurrencies known as stablecoins.
A stablecoin is a type of cryptocurrency whose value reflects an existing fiat currency (e.g. US Dollars). The inclusion of USDT, the world’s largest stablecoin by market value, will assist users in combating a volatile market, protecting their assets, and expanding their portfolio.
The industry has seen a surging demand for a stable digital currency amidst fears of an economic recession in both traditional and digital markets. In the last 12 months, Tether has established itself as a champion amongst stablecoins, with a market capitalization of over $13 billion (https://bit.ly/3kdjoHk).
“We consider this a big step for us since this is the first cryptocurrency other than bitcoin we have on the platform,” said Ray Youssef, CEO, and co-founder of Paxful. “We always listen to our customers. We understand that some come to Paxful for wealth generation and turn to crypto for stability when their national currency is affected by inflation. We hope that this can aid them to be more in control of their finances.”
The addition comes with a hedging option, allowing users to instantly convert BTC to USDT and vice versa, helping the users protect their funds during bitcoin price fluctuations.
The company also plans to enable USDT trading on the platform. Same as with the bitcoin (BTC) trading in the Paxful marketplace, users can buy and sell USDT with over 300 payment methods. The USDT balance is accessible via the wallet page, where the current market price for both coins is displayed. The launch of this feature marks Paxful’s first step towards potentially adding new cryptocurrencies in the future.
The company recently announced that the platform Paxful has hit 4.5 million registered wallets, reached 4.6 billion USD in trading volume, and reduced dispute levels to under 1%. Since inception, they have added 1 million users per year and so far in 2020 and are on track to sign up an additional 2 million users by the end of the year.
Fintech CEO: George Residence Bitcoin Acceptance Has Policy Implications, More than Simple Brand Awareness
Last month, luxury hospitality icon, George Residence, announced that it would be the first hotel in Nigeria to accept Bitcoin. Most reviews of this announcement came using the lens of brand awareness, both for the property, as well as cryptocurrency. But, Richard Gardner, today, offered a different take on what’s unfolding in Nigeria.
“When we see news like this, it’s easy to trumpet the mainstream appeal of Bitcoin, and, over the past six months, there certainly has been a huge increase in familiarity with the alternative to fiat currency. Between business icons like Mark Cuban and Elon Musk openly supporting the growth of cryptocurrencies, it is easy to read news like this as just one in a line of businesses moving to accept a form of payment that’s becoming more and more popular. But, there’s something else at play here,” noted Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.
In his announcement, George Residence CEO Yanju George said that, not only was he accepting Bitcoin, but that he planned to make Bitcoin the company’s primary reserve asset, noting that “[w]e have allocated around 50% of our cash reserves to Bitcoin… We hope to increase that as time goes on. Bitcoin is the currency of the future and it is only right that we are strongly positioned so we do not get left behind.”
“I think if you look at the policy behind the move, you’ve got to see this as a hedge against inflation. The Naira has had significant struggles. We’ve seen a surge in Bitcoin in 2021, but, at the end of the day, the surge means different things in different places. In the United States, folks may be looking at Bitcoin as an investment opportunity, but in places like Nigeria, Bitcoin and cryptocurrencies offer more than that. They are really a way to make sure that the assets you have today aren’t devalued over the next six months. Unchecked inflation is not just an economic problem; it’s a problem that deeply affects the citizenry when the fiat currency they rely on to purchase food and energy and life essentials is worth a fraction of what it was last year. In places with rampant inflation, Bitcoin is being considered by the populace as a potential solution to a number of institutional problems,” explained Gardner.
Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.
“As Nigeria looks towards the future, there is a lot of work to be done, to be sure. But, there is much to be optimistic about, as well. The fact that the citizenry is so engaged in cryptocurrencies means that, if the country can put the pieces together and get a handle on infrastructure-based issues, not the least of which is inflation, then it can begin to look at how it can invite innovation and enhance technology’s role as a tool in its economic engine. The interest is already there,” noted Gardner.
Data Suggests Only Whales Moves Dogecoin
It was Doge day afternoon all over again on Wednesday as Dogecoin (DOGE) continued its assault on the cryptocurrency market capitalization rankings. The meme coin overtook XRP to become the fourth-largest cryptocurrency by implied market capitalization after climbing to an All-Time High of $0.69 per-coin valuation — a target that was specifically set by traders on social media.
But cryptocurrency’s latest media darling may not be as wholesome as it seems. For all the hype surrounding Dogecoin (and its de facto master, Elon Musk), publicly available data suggests relatively few people are actually using the blockchain and those who do use its account for an incredibly large portion of its overall activity.
Consider that the dollar value of coins sent across the Dogecoin blockchain on Tuesday exceeded $58 billion. That figure was 70 percent higher than the amount transferred on Bitcoin ($34 billion) and 260 percent higher than on Ethereum ($16 billion).
Digging into on-chain data further, we see that despite Dogecoin moving a higher value of coins than the two largest cryptocurrencies in the world, it achieved this with a mere fraction of their transactions.
Over 1.4 million transactions were counted on the Ethereum blockchain yesterday, according to data from Bitinfocharts, while close to 300,000 were counted on Bitcoin. Compare this to just 76,000 recorded on the Dogecoin blockchain, and an apparent wealth gap begins to emerge.
Indeed, when looking at Dogecoin’s average transaction value on the day in question, it stood at almost double that recorded on Bitcoin (BTC). The average DOGE transaction value stood at $800,000, compared to $420,000 on BTC. Its statistics relative to Ethereum paint an even more dire picture — Dogecoin’s average transaction value exceeded Ethereum’s by 8,000 percent, despite processing only 5 percent of the number of transactions.
Combined with the long-standing reality that one single address holds 28 percent of all coins in existence, while just 12 accounts for 67 percent, it becomes clear that Dogecoin isn’t exactly the people’s champion that interested parties would have the public believe.
A recently published report by Galaxy Digital piled on the misery regarding Dogecoin’s general lack of authenticity as a true cryptocurrency project. Titled “Dogecoin: The Most Honest Sh*tcoin,” the report highlighted the fact that Dogecoin’s GitHub repository (where updates to the blockchain’s code are logged by developers) hasn’t been touched since 2017. What’s more, the number of fully synced nodes (computers running copies of the Dogecoin blockchain) is just 26 percent of the overall node count, suggesting few people are willing to make the effort to maintain the blockchain’s network security.
But even if the Dogehouse seems like a ghost town, the glaring reality remains that Dogecoin is the best performing digital asset in the cryptocurrency space. The coin has recorded 14,000 percent growth since Jan. 1, when it was priced at a fraction of a cent.
Both credit and blame for Doge’s seemingly irrational ascent have been placed on the “Dogefather” himself, Elon Musk, who has taken great pleasure in posting Doge memes to his 52 million followers on Twitter throughout much of 2021.
However, it should also be noted that the coin’s recent peak of $0.69 is the same price target set by Reddit traders intent on artificially pumping DOGE’s valuation. The price point was originally intended to be reached on April 20 — a joke on top of a joke on 4/20 day. Dogecoin only reached a price of $0.420 at the time (boom), but now, a little over two weeks later, it has finally achieved its jocular goals. The ultimate price point being pursued by traders is $1.
If more evidence is needed that markets are not always rational, look no further than this year’s GameStop pump, where the share price of a near-dead brand increased by over 9,000 percent.
“Dogecoin has always been a joke, and the joke keeps getting funnier,” stated the Galaxy Digital report. Author of the report and head of firmwide research at Galaxy Digital Alex Thorn did praise Dogecoin for its lack of pretense, noting that the coin’s fortunes weren’t tied to foundation announcements or developer promises and that its only goal was to elicit a reaction.
“Dogecoin’s longevity is ensured so long as one truism remains: people love a good joke,” Thorn ended.
A New Shift In Bitcoin Mining, More Bitcoin Hashrate Comes From North America Than China
The U.S. is slowly increasing its share of the Bitcoin hashrate, although the majority of Bitcoin mining is still based in China, there are signs it is beginning to shift elsewhere.
Chun Wang, the co-founder of one of Bitcoin’s largest mining pools, F2Pool, reported that China represented less than half of its hash rate during April 2020. Wung noted it was the first time the pool had seen Chinese miners represent a minority of hash rate in its eight years of operation. “The shifting is real,” he said.
Wang reposted data published April 22 by Digital Currency Group’s Barry Silbert, which revealed that the U.S.-based Bitcoin mining pool, Foundry, had climbed to rank among the top 5 pools globally during April, commanding a 7.6 percent share of the hashrate.
“Bitcoin hashrate is quickly shifting from China to North America,” Silbert claimed. The leading pool remains AntPool, which is operated by Chinese mining hardware manufacturer Bitmain, with an 18.6 percent share of the total hashrate.
The University of Cambridge calculated that China’s mining dominance was around 65 percent in April 2020. Noting those figures in January 2021, BTC mining publication Miner Daily estimated China’s share had fallen to 55 percent of BTC hashing power by the start of this year, with the U.S. accounting for 11 percent.
On April 30, Cointelegraph reported that China’s crypto mining operations may be set for stricter regulations in the future, which could further fuel the country’s hashrate exodus. China has also recently been examining miners’ power usage in light of its own carbon commitments.
In late February, it was reported that authorities of the Chinese autonomous region of Inner Mongolia proposed closing down all local mining facilities to reduce energy consumption in the region. The region accounts for as much as 8 percent of global hash.
In an article on May 5, Bitcoin podcast host Marty Bent said that the F2Pool findings are a confirmation of a trend in the mining world of hashrate production becoming more geographically distributed.
He added that this would help dissipate some of the “China controls mining” FUD surrounding the potential for the country’s central government to attack the network.
“It is great to have some data coming from Chinese pools that proves the percentage of overall hashrate production is being reduced within China’s borders.”
The FUD surrounding Bitcoin’s energy consumption and environmental impact may also reduce as more mining operations switch to renewable energy, especially in the U.S. which has tighter regulations.
According to a Nasdaq report on May 4, Texas has become a mecca for Bitcoin mining farms due to its low energy costs and the fact that the majority comes from renewables such as wind and solar.
News3 weeks ago
COVID-19: Nirsal Microfinance Bank (NMFB) Loan – Covid19.nmfb.com.ng
Education4 weeks ago
JAMB Puts 2021 UTME/DE Registration on Hold
Education4 weeks ago
COVID-19: 2021 WASSCE May Not Hold in May/June – WAEC
Education4 weeks ago
2021 WASSCE To Hold August/ September
Fintech4 weeks ago
Trove, Bamboo Assure Nigerian Investors Assets Are Safe Following SEC Warning
Government4 weeks ago
COVAX Delivered 38m Vaccine Doses To Over 100 Countries, Says WHO
E-commerce4 weeks ago
China Fines Alibaba Record $2.8 Billion After Monopoly Probe
Cryptocurrency3 weeks ago
Cryptocurrency Traders Can Now Trade Stocks on Binance