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Crypto Crash: Bitcoin Bashers and Crypto Cynics Are Wrong – Here’s Why

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bitcoin to Nigerian Naira - Investors King

Bitcoin and other cryptocurrencies have experienced a major sell-off this week following China’s crackdown on the sector, but the “crypto haters” are wrong to dismiss the digital assets, according to the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The bullish message from Nigel Green, chief executive and founder of deVere Group comes during a turbulent week for cryptocurrencies.

Around $400 billion in value has been wiped from the total digital currency market since Friday, when a major Bitcoin mining hub ordered miners to shut down operations.

It followed reports saying that China’s central bank had a meeting with banks and gave instructions to freeze all payment channels supporting cryptocurrency trading.

Bitcoin, the world’s largest cryptocurrency, experienced a wild trading session on Tuesday where it briefly dropped below $30,000 – seen as a key support level – before rallying back into positive territory.

Mr Green, a high-profile crypto advocate, says: “For long-time, serious crypto investors this week has not been a major cause of concern and more a case of ‘here we go again.’

“For many investors, experienced and less experienced, the new lower prices triggered by the panic-selling, will be used as a key buying opportunity.

“Even those in China – which is a major market for Bitcoin and the wider crypto sector – will find ways to navigate their way around the system and top-up their portfolios at the lower entry points.

“We can expect further pull-back in the price of Bitcoin in the near-term, which too will be used proactively by investors.”

He continues: “It’s our experience that investors are not in crypto to make a quick buck. They’re in it as a longer-term, future-first investment to create and build wealth.”

There are five key factors driving investors towards cryptocurrencies.

First, inflation. “There are legitimate and growing concerns about inflation as economies re-open and pent-up demand is unleashed by households, businesses and entire industries but is met with supply shortages.

“Bitcoin is widely regarded as a shield against inflation mainly because of its limited supply, which is not influenced by its price.”

Second, institutional support. “There is growing investment from major institutional investors, bringing with them capital, expertise and reputational pull.”

Third, regulation. “Global financial watchdogs are increasingly looking into establishing a regulatory framework. Why? Because they’re taking crypto more and more seriously as a financial asset and a medium of exchange.

“Regulation, which I believe is inevitable, would give more protection and, therefore more confidence, to both retail and institutional investors.”

Fourth, demographics. “Millennials – who are beneficiaries of the largest-ever generational transfer of wealth, predicted to be more than $60 trillion from baby boomers to millennials over the next three decades – have grown up on technology. They are digital natives.  Cryptocurrencies are, by their very nature, tech-driven.

“In addition, they are decentralised, so not controlled by any financial institution – which are largely viewed as outdated and untrusted by millennials.”

Five, the future of money. “Savvy investors appreciate the inherent value of digital, borderless, global currencies for trade and commerce purposes in our increasingly digitalised economies in which businesses operate in more than one jurisdiction.

“As such, cryptocurrencies are regarded as the future of money.”

The deVere CEO concludes: “The crypto haters have enjoyed knocking the digital assets this week, but savvy investors aren’t spooked by the current volatility. They’re confident in their longer-term trajectory.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Bitcoin, Ethereum Hash Rate Slowly Recovers as Chinese Miners Redeploy Overseas

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The hashing power securing the world’s two largest blockchains is on track of a slow recovery, as some Chinese miners have gradually completed their relocation after the crackdown.

Based on The Block’s Dashboard, the seven-day moving average of Bitcoin’s hash rate has slowly climbed up to and remained at the 100 exahashes per second (EH/s) level over the past three weeks.

Following China’s crackdown on the bitcoin mining industry, power stations across multiple provinces have been ordered to suspend energy supply to mining facilities. Bitcoin’s hash rate initially plunged to below 90 EH/s, a level not seen since early 2020. With the slow recovery, bitcoin’s mining difficulty is expected to post a 4 percent growth in its next adjustment, after having recorded four consecutive drops since mid-May.

Although China’s initial crackdown comment specifically said it was about bitcoin mining, the shutdown orders that were eventually handed down locally also affected the mining farms that housed graphic cards and ASIC miners securing the Ethereum network. That situation sparked Ethereum miners to dump their used GPUs on the secondhand marketplace.

Similarly, the hash rate on Ethereum also took a hit by over 20 percent after China’s crackdown orders but has steadily recovered to above 500 terahashes per second.

The hash rate rebound suggests that at least some Chinese miners have completed their relocation process and subsequently plugged in.

For instance, Shenzhen-headquartered BIT Mining, previously known as online sports lottery firm 500.com, had over 50,000 bitcoin ASIC miners in Xinjiang and Qinghai as of April this year. It also owned two operational mining facilities in Sichuan.

After the crackdown, the New York Stock Exchange-listed bitcoin miner said it would ship 3,000 units to Kazakhstan by July. In a statement on Wednesday, BIT Mining said it has shipped and deployed 3,819 units of bitcoin mining equipment with a total hash rate of 172 PH/s at facilities in Kazakhstan. It announced earlier this week that it has completely exited its lottery business to focus entirely on mining.

“A further 4,033 bitcoin mining machines with a total hash rate capacity of 121 PH/s have been shipped to data centers in Kazakhstan and are awaiting deployment,” BIT Mining said. In addition, it has signed a purchase agreement to acquire 2,500 new bitcoin miners that are expected to be delivered within seven days and it plans to deploy them in Kazakhstan as well.

Apart from bitcoin mining equipment, BIT Mining has started Ethereum mining operations outside of China with 86.4 gigahashes per second (GH/s) deployed. “An additional hash rate capacity of 4,713.6 GH/s is expected to be deployed by the end of October 2021,” the firm said, which accounts for about 0.7 percent of the total hash rate on Ethereum.

BIT Mining purchased 2,000 Ethereum miners for $30 million in February that are due for shipment throughout this year.

Russia-headquartered colocation provider BitRiver told The Block that after China’s shutdown orders, it signed contracts with Chinese mining clients for a capacity of 150 megawatts, which are expected to go online in batches over the coming four months.

Taking a step back, BitRiver’s founder and CEO Igor Runets said with a worldwide supply crunch for bitcoin mining hosting capacity, it may take much longer for bitcoin’s hash rate to fully recover to the all-time-high 180 EH/s level.

Meanwhile, BIT Digital, another U.S.-listed bitcoin mining firm that previously had operations in China, is in the process of shipping over 14,500 units of bitcoin miners to the U.S.

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Burger King Accepts DOGE In Brazil

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Burger King Accepts Doge- Investors King

Burger King is now accepting Dogecoin in Brazil… for something rather unexpected.

The fast-food chain says DOGE can be used to purchase Dogepper, a snack that has been purposely designed for four-legged friends.

Buying one of the dog treats will set you back 3 DOGE, which is worth about $0.62 at the time of writing.

All interested users need to do is check the availability of the dog treats in their region, select how much Dogepper they would want to purchase, transfer the DOGE to Burger King’s wallet, and get the delivery schedule.

Dogepper — which, of course, is named after the outlet’s Whopper burger — is meat flavored and can also be ordered alongside value meals.

An advertisement that’s doing the rounds in Brazil says: “What is the best way to pay for a product aimed at dogs? Obviously, Dogecoin.”

Dogecoin’s publicity stunts are nothing new, and the joke cryptocurrency has certainly gained a higher profile around the world thanks to endorsements from the likes of Tesla CEO Elon Musk.

Burger King plans to use a portion of the profits generated by the sale of Dogpper to support non-governmental organizations protecting animals — and the treats will be available for a limited time only.

The chain added: “We know that enjoying a Whopper in peace, in the comfort of your home, is not an easy task for a mother or father of a pet. But also, how can we blame them? The smell of grilled barbecue meat goes far and gives the dogs a stir.”

Burger King has dabbled briefly with Bitcoin payments in a number of countries where it operates — including Germany, Venezuela and Russia. However, in most cases, this has ended up being short lived.

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Binance Sets New Daily Withdrawal Limits, Rolls Out Tax Reporting Tool

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Binance, the world’s biggest cryptocurrency exchange by trading volumes, continues its efforts to maintain dialogue with global regulators by introducing withdrawal limits and a new tax reporting system.

On Tuesday, the company officially announced a major update to its Know Your Customer policies, significantly reducing maximum withdrawal amounts for users who have not completed full identity verification.

Effective immediately for new Binance accounts, users who have completed only basic account verifications will be unable to withdraw more than 0.06 Bitcoin (BTC) per day, worth roughly $2,400 at the time of writing. Previously, the maximum daily withdrawal amount was capped at 2 BTC, or about $80,000, Binance CEO Changpeng Zhao noted on Twitter.

According to the announcement, Binance will continue applying new withdrawal limits for existing users in phases starting from Aug. 4. The exchange expects to have adopted new withdrawal restrictions entirely by Aug. 23. Binance users who have completed full identity verification will be still able to withdraw up to 100 BTC in a day, or nearly $4 million at BTC prices at the time of writing. “Withdrawal limits refresh daily at 00:00 AM,” the announcement notes.

Binance also rolled out its new tax reporting tool. The reporting system is an Application Programming Interface that enables Binance users to track their crypto transactions, transfer their transaction history to third-party vendors, and obtain instant overviews of their local tax liabilities. The new initiative is part of the exchange’s broader strategy to expand user protection and risk management protocols.

According to Binance’s tax reporting instruction page, users can now select a third-party tax tool to transfer their transaction history. “Binance is not endorsing any particular third-party tax tool software. Please exercise your own discretion and/or consult your personal tax adviser based on your personal tax circumstances and requirements when selecting the third-party tax tools,” the exchange warned.

Binance did not immediately respond to a request for information on the usage of the new tool for Binance US users.

The news comes amid Binance aggressively adopting new trading restrictions in an apparent effort to respond to the ongoing global regulatory crackdown on the exchange. This week, the exchange delisted margin trading pairs for three fiat currencies, including the euro, the Australian dollar and the British pound sterling. Binance’s futures trading platform has also started reducing maximum leverage positions from 125x to 20x.

Zhao also hinted that he might be willing to step down as CEO should someone “with a strong regulatory background” be available. “There are no immediate plans to replace me as CEO,” he noted.

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