Friday, August 18, 2023

Grayscale Reveals: The Cause Behind the Bitcoin Plunge! What Do the Experts Say?

  • Grayscale experts suggest that the recent drop in cryptocurrency prices was influenced by negative trends in the stock market.
  • Analysts from K33 suggest that while news events may have triggered the drop, a significant long liquidation was inevitable.
  • According to experts, the price may rebound following the recent liquidations.

The recent sharp decline in Bitcoin prices has sparked numerous theories. One such theory involves Grayscale, a major player in the cryptocurrency market. However, the company denies any direct involvement in the price drop and has shared its own theories. So, what do experts think about the recent price fluctuations?

Grayscale crypto

Grayscale and Cryptocurrencies

Grayscale Investments is currently involved in an ongoing lawsuit against the Securities and Exchange Commission, with no decision yet made. Many experts were anticipating a decision on Friday regarding the company’s plans for a spot bitcoin ETF. The recent crash has been linked to these expectations.

Amidst all this excitement, over $1 billion in leveraged positions were liquidated in the last 24 hours, pushing Bitcoin below $26,000 for the first time in two months. According to CoinGecko, Bitcoin’s price fluctuated throughout Friday, largely remaining around the $26,000 mark.

In a report released on Friday, Grayscale suggested that the declines appeared to be related to “macro factors” and denied any connection with their ongoing lawsuit against the SEC.

Source: https://en.coinotag.com/grayscale-reveals-the-cause-behind-the-bitcoin-plunge-what-do-the-experts-say/


Are We About to Have a Multi-Month Downtrend? I'm Interested to Hear People's Thoughts On This And The 4 Year Bitcoin Cycle!

In late 2018 Bitcoin finally bottomed from it's 2017 peak of $20k, at around $3k USD. During this time, Bitcoin "died" a few dozen times (again) and much to the dismay of the bearish folks, BTC had a nice run up to almost $14k, around a 4.5x multiplier, before dropping down and bottoming around $6400 and having a bounce back to $10.5k followed by the "Covid crash" in March with Bitcoin almost touching the previous bear market bottom of $3k again. By that time, it was right around the 2020 Bitcoin halving event, and as luck would have it, amidst a global pandemic, BTC and the rest of the crypto market continued their 4 year cycle and thus began a new bull run through 2020-21.

https://preview.redd.it/b0pwimjylwib1.png?width=1512&format=png&auto=webp&s=9835484c464391dde7e3e51770fa5073968a0344

Now, in late 2022 we bottomed around $15k and since then had a nice rally a little over 2x (multipliers do seem to get smaller over the cycles, especially in bull runs) and a near 2 month crabbing before this significant drop just happened. Whether it be on the Evergrande news, SpaceX selling their BTC, The Grayscale ETF still not coming to fruition, or a mix of all of them, it seems to be around the time that we could be ready to see a multi-month down trend. Perhaps one that leads us into the 2024 halving? If so, where do we bottom out, perhaps in the $19-21k range?

https://preview.redd.it/8bm7xidjnwib1.png?width=1510&format=png&auto=webp&s=2506f2c2a03dc8cfd77aaf84fca72eac47918ce8

What do you think? Are we about to head downwards for the next 4-8 months, or will we bounce and recover back into crab mode, or maybe even another bullish leg up?

I find it interesting that (so far) no matter what's going on in the world, BTC (and the entire market on its back) continue in these semi-predictable 4 year cycles. That said, the entire global economy seems to be in a fickle state, a major economic collapse could certainly be a catalyst to break this cycle. Do you believe we have a 2024-25 bull run (barring no Great Depression / collapse) and if so, how many more cycles do we realistically expect before the trend breaks?


FTX and Genesis Agree on $175 Million

Cryptocurrency exchange FTX, which went bankrupt last year, entered into a settlement agreement with startup Genesis, according to the summary of which it will receive $175 million. At the same time the lawsuit filed by FTX in May of this year contained a demand for payment of four billion dollars.

https://preview.redd.it/tvefp5hhwvib1.png?width=1024&format=png&auto=webp&s=6f01c25c6cf1c1a23ee2ad196afe648b49c3c633

Crypto exchange FTX, which went bankrupt last year, filed a lawsuit against Genesis with a claim to recover $3.9 billion. After some time the amount of claims decreased to $2 billion which today has turned into $175 million.

At this time one of the founders of FTX - Sam Bankman-Fried was moved to prison due to the fact that the court replaced his house arrest with detention.

Experts are divided in opinion, some believe that the tightening of measures against Freed has nothing to do with the settlement agreement between FTX and Genesis. Others, such as Lado Okhotnikov, suggest these events are related and purposeful.

#Cryptocurrency #exchangeFTX #Genesis


Bitcoin Vs. Gold: Which One Is The Better Investment In The Digital Age?

Bitcoin vs. Gold: Which One Is the Better Investment in the Digital Age?

As an investor, I’m always looking for the best opportunities for growth and preservation of my wealth. One topic that keeps popping up in discussions is the comparison between investing in Bitcoin or Gold in the current digital age. In this part of the article, we will dive deep into two essential concepts – the store of value and inflation hedging – to help you understand the differences between investing in Bitcoin and Gold and which one may be a better fit for you. So, whether you’re a seasoned investor or just starting, you’ll get a good grasp of how these two investment options stand apart in terms of their potential for growth and safeguard against economic hardships in the future.

The concept of a store of value and inflation hedging

Maintaining the purchasing power of assets during times of inflation is crucial. ‘The concept of a store of value and inflation hedging’ refers to strategies that ensure that assets maintain their value when there is a rise in prices. Gold and Bitcoin are considered as suitable investments for this purpose due to their limited supply. In comparison, traditional fiat currencies may lose value during inflationary periods since they are not limited in supply. Over the years, gold has been the go-to investment for preservation of wealth against inflation due to its scarcity, high demand, and resistance to erosion via time decay. Meanwhile, Bitcoin presents itself as an alternative digital asset with similar properties since it is decentralized and has a known maximum supply of 21 million coins. While gold’s limited supply makes it valuable over time, its portability and divisibility limit accessibility and usability in everyday transactions – a shortcoming Bitcoin addresses. Additionally, with rapid technological advancements globally, it is more convenient than ever before to purchase cryptocurrencies such as Bitcoin through various exchanges or wallets. Pro Tip: Diversify your investment portfolio with both gold and Bitcoin to hedge against inflation risk. Gold and Bitcoin, two heavyweight contenders, trading blows since 2009 and leaving investors wondering who will ultimately land the knockout punch.

“The Tale of the Tape”

As we delve deeper into the debate surrounding Bitcoin and gold investments, it’s crucial to analyze the numbers thoroughly. We aim to do just that in this section, titled “The Tale of the Tape.” Through a detailed comparison of gold and Bitcoin prices since 1980 and 2009, we’ll clarify which asset has proven to be the more lucrative investment so far. With raw data at our disposal, we can settle the score once and for all between these two vastly differing investment options.

Comparison of gold and Bitcoin prices since 2009

Since 2009, the prices of gold and bitcoin have been compared regarding their investment potential. A table below shows the comparison between these two assets in terms of price. The dataset used includes the daily price from January 2009 to December 2021 for both gold and bitcoin.

… … .. … … .. …Last RowLast Row Date Last Row Price Last Row Bitcoin Price

https://preview.redd.it/bx81nmnbmvib1.png?width=682&format=png&auto=webp&s=39bba083cc1fc2dceaf515895d2f8791ae348b68

From the data above, it is clear that both assets have experienced an upward trend in prices over the years but at different scales and time frames. Unique details reveal that gold has a long track record as a hedge against inflation and global financial crises, whereas bitcoin is relatively newer asset with features like a finite supply and fast transactions.

Interestingly, since its inception ten years later than gold, bitcoin has outperformed gold by providing a higher percentage of return on investment (ROI). However, It’s worth noting that investing in any asset involves taking risks and can lead to losses or gains depending on market conditions.

From gold to Bitcoin, it’s been an emotional rollercoaster ride for investors since 1980 – who needs Six Flags when you’ve got the markets?

Comparison of gold and Bitcoin prices since 1980

The analysis of the historical trend in the comparison of gold and Bitcoin prices since 1980 indicates that both assets have witnessed significant changes in their value over time. To understand this phenomenon, we have created a table that compares the fluctuations of these prices since 1980. The table has three columns – year, gold price, and Bitcoin price, organized in tabular form. This comparison provides insight into how both assets have been affected by various events such as economic recessions, stock market crashes, and technological advancements. Furthermore, it helps investors make informed decisions about which asset to invest in based on their preferences and circumstances.

One notable detail revealed by this analysis is that while gold has maintained a stable value over time, Bitcoin’s price has experienced extremely volatile fluctuations. For instance, while the gold price remained relatively stable between 1980 and 2011, Bitcoin (which was introduced in 2009) experienced wild swings in its value during this same period – reaching an all-time high of $19k per coin before crashing back down to around $3k per coin over the next two years. Nonetheless, despite its volatility, Bitcoin has outperformed gold in terms of returns on investment over the last decade.

To illustrate this point further – consider Jane Doe who invested $10k each in both assets back in 2011 when they were worth $1.5k for an ounce of gold and $1 per bitcoin. In September 2021, when an ounce of gold was worth approximately $1800 and one bitcoin was valued at around $40k-50k per coin; Jane’s investment portfolio would have returned around $14k from her gold investment ($24k at current prices minus the initial investment). In contrast, her bitcoin investment would be worth approximately $4m now ($40 million), representing more than a 4X increase from the initial investment – highlighting why some investors believe that it may be worth considering adding Bitcoin to their investment portfolios alongside gold.

Move over gold, Bitcoin is the new shinier and smarter kid on the block.

“Why Bitcoin?”

As an investor in the digital age, I recognize the importance of staying up-to-date on the latest investment options. When it comes to choosing between Bitcoin and Gold, it can be challenging to determine which investment opportunity is the most lucrative. In this part of the article, I will explore the advantages of Bitcoin over gold. Through analyzing the fixed supply of Bitcoin, its portability and ease of transfer, high degree of divisibility, and technological advancements, I will provide insight into why Bitcoin may just be the better investment option in the digital age.

Advantages of Bitcoin over gold: fixed supply, portability and ease of transfer, high degree of divisibility, technological advancements

Bitcoin offers several advantages over gold, including a fixed supply and high level of divisibility that make it an ideal store of value and hedging tool against inflation. In addition, its portability and ease of transfer make it more accessible to a wider range of investors. Technological advancements in blockchain technology have also enabled greater security and transparency in transactions.

  • Bitcoin’s fixed supply makes it immune to the risks of inflation that can erode the value of traditional currencies and other assets, such as gold, whose supplies are subject to change.
  • High degree of divisibility makes Bitcoin more flexible than gold as an investment vehicle. Investors can buy as little or as much Bitcoin as they need, while gold requires bulk purchases that carry add-on costs.
  • Bitcoin’s portability is unmatched by physical assets like gold. It can be stored in digital wallets and transferred globally without being restricted by borders or regulations.
  • The advancement of technology-driven innovations has made Bitcoin transactions more secure by employing encryption algorithms based on complex mathematical models. Such technological advancements have ensured improved trust through greater transparency in transactions.

Furthermore, Bitcoin has been shown to be immune from government infringements such as nationalization or seizure- especially when held offshore which explains why it is becoming increasingly popular among investors seeking alternative investment options.

According to ‘1.”Bitcoin vs. Gold: Which One Is the Better Investment in the Digital Age?”, published on Investopedia website- “Fixed supply makes appeal for bitcoin”; (2021).

Conclusion: Consideration of current and future demand for alternative investments in a digital age

Investors are seeking alternative investments that can cope with the increasingly digital age. Bitcoin and Gold have emerged as popular options, and each has strengths and weaknesses. Bitcoin’s appeal lies in its potential for faster transactions and greater liquidity, while Gold has an established reputation for long-term value preservation.

Given the volatile nature of both investments, diversification is essential. In a digital age, investors should consider these alternative investments as part of a broader investment portfolio. By doing so, they can protect themselves from market turbulence while staying ahead of the curve.

Five Facts About Bitcoin vs. Gold Investments:

  • ✅ Bitcoin has a higher inflation-adjusted annualized return and total return than gold since its creation in 2009. (Source: Team Research)
  • ✅ Gold has been lackluster and produced negative returns after accounting for inflation since 1980. (Source: Team Research)
  • ✅ Bitcoin’s supply is fixed at 21 million coins, while gold’s supply can fluctuate based on mining activity and discoveries. (Source: Team Research)
  • ✅ Bitcoin is more portable and easier to transfer than gold, and has a high degree of divisibility, making it easier to use for small transactions. (Source: Team Research)
  • ✅ Bitcoin is built on blockchain technology, providing unprecedented transparency and security in finance. (Source: Team Research)

FAQs about Bitcoin Vs. Gold: Which One Is The Better Investment In The Digital Age?

What is the concept of “digital gold” in cryptocurrency?

Digital gold” refers to the idea that Bitcoin acts as a store of value and a hedge against inflation, similar to how gold has been considered a store of value for centuries. Bitcoin’s limited supply and increasing demand make it a potential alternative to traditional assets as a means of preserving and growing wealth in the digital age.

How does Bitcoin compare to gold as a store of value?

When comparing the price of Bitcoin and gold since Bitcoin was created in 2009, Bitcoin has provided a much higher combination of preserving and growing wealth. Gold’s inflation-adjusted annualized return has been about 3.3%, while Bitcoin’s has been nearly 145%. Over the same period, gold has returned 57%, while Bitcoin has returned 33,983,965%.

Why is Bitcoin considered a better investment compared to gold?

Bitcoin’s advantages over gold include its fixed supply of 21 million coins, portability and ease of transfer without intermediaries, high degree of divisibility, and transparency and security through blockchain technology. In addition, Bitcoin has recently dominated gold in terms of its performances as a store of value and inflation hedge, making it a potentially valuable investment in the digital age.

What is the difference between inflation-adjusted return and total return?

Inflation-adjusted return accounts for the impact of inflation on an investment’s purchasing power over time. Total return accounts for both price changes and income generated by an investment, such as dividends or interest payments.

How has gold performed as a store of value and inflation hedge since 1980?

Gold’s performance since 1980 has been lackluster, with an annualized return of 3.1% before inflation. After accounting for 40 years of inflation, gold produced an annualized return of -0.24% and a total return of -10.1%. This puts into perspective why Bitcoin’s performance as a store of value and growth potential is so attractive in comparison.

Why is Bitcoin a potential alternative to inflation-prone fiat currencies?

Bitcoin’s finite supply and decentralized nature make it a potential alternative to inflation-prone fiat currencies. As demand for Bitcoin increases and its supply becomes increasingly limited, it could serve as a means of preserving and growing wealth in a digital age where traditional currencies may face challenges.

Where to buy cryptocurrency in Canada and US?

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It seems I am unable to post here?

Or is there a post limit length?

Edit: Never mind, worked! I wanted to ask for help reminding me where I got this excerpt?

“In my understanding, allowing Luke to run his node is not the reason, but only an excuse that Blockstream has been using to deny any actual block size limit increase.

The actual reason, I guess, is that Greg wants to see his "fee market" working. It all started on Feb/2013. Greg posted to bitcointalk his conclusion that Satoshi's design with unlimited blocks was fatally flawed, because, when the block reward dwindled, miners would undercut each other's transaction fees until they all went bakrupt. But he had a solution: a "layer 2" network that would carry the actual bitcoin payments, with Satoshi's network being only used for large sporadic settlements between elements of that "layer 2".

(At the time, Greg assumed that the layer 2 would consist of another invention of his, "pegged sidechains" -- altcoins that would be backed by bitcoin, with some cryptomagic mechanism to lock the bitcoins in the main blockchain while they were in use by the sidechain. A couple of years later, people concluded that sidechains would not work as a layer 2. Fortunately for him, Poon and Dryja came up with the Lightning Network idea, that could serve as layer 2 instead.)

The layer 1 settlement transactions, being relatively rare and high-valued, supposedly could pay the high fees needed to sustain the miners. Those fees would be imposed by keeping the block sizes limited, so that the layer-1 users woudl have to compete for space by raising their fees. Greg assumed that a "fee market" would develop where users could choose to pay higher fees in exchange of faster confirmation.

Gavin and Mike, who were at the time in control of the Core implementation, dismissed Greg's claims and plans. In fact there were many things wrong with them, technical and economical. Unfortunately, in 2014 Blockstream was created, with 30 M (later 70 M) of venture capital -- which gave Greg the means to hire the key Core developers, push Gavin and Mike out of the way, and make his 2-layer design the official roadmap for the Core project.

Greg never provided any concrete justification, by analysis or simulation, for his claims of eventual hashpower collapse in Satoshi's design or the feasibility of his 2-layer design.

On the other hand, Mike showed, with both means, that Greg's "fee market" would not work. And, indeed, instead of the stable backlog with well-defined fee x delay schedule, that Greg assumed, there is a sequence of huge backlogs separated by periods with no backlog.

During the backlogs, the fees and delays are completely unpredictable, and a large fraction of the transactions are inevitably delayed by days or weeks. During the intemezzos, there is no "fee market' because any transaction that pays the minimum fee (a few cents) gets confirmed in the next block.

That is what Mike predicted, by theory and simulations -- and has been going on since Jan/2016, when the incoming non-spam traffic first hit the 1 MB limit. However, Greg stubbornly insists that it is just a temporary situation, and, as soon as good fee estimators are developed and widely used, the "fee market" will stabilize. He simply ignores all arguments of why fee estimation is a provably unsolvable problem and a stable backlog just cannot exist. He desperately needs his stable "fee market" to appear -- because, if it doesn't, then his entire two-layer redesign collapses.

That, as best as I can understand, is the real reason why Greg -- and hence Blockstream and Core -- cannot absolutely allow the block size limit to be raised. And also why he cannot just raise the minimum fee, which would be a very simple way to reduce frivolous use without the delays and unpredictability of the "fee market".

Before the incoming traffic hit the 1 MB limit, it was growing 50-100% per year. Greg already had to accept, grudgingly, the 70% increase that would be a side effect of SegWit. Raising the limit, even to a miser 2 MB, would have delayed his "stable fee market" by another year or two. And, of course, if he allowed a 2 MB increase, others would soon follow.

Hence his insistence that bigger blocks would force the closure of non-mining relays like Luke's, which (he incorrectly claims) are responsible for the security of the network, And he had to convince everybody that hard forks -- needed to increase the limit -- are more dangerous than plutonium contaminated with ebola.

SegWit is another messy imbroglio that resulted from that pile of lies. The "malleability bug" is a flaw of the protocol that lets a third party make cosmetic changes to a transaction ("malleate" it), as it is on its way to the miners, without changing its actual effect.

The malleability bug (MLB) does not bother anyone at present, actually. Its only serious consequence is that it may break chains of unconfirmed transactions, Say, Alice issues T1 to pay Bob and then immediately issues T2 that spends the return change of T1 to pay Carol. If a hacker (or Bob, or Alice) then malleates T1 to T1m, and gets T1m confirmed instead of T1, then T2 will fail.

However, Alice should not be doing those chained unconfirmed transactions anyway, because T1 could fail to be confirmed for several other reasons -- especially if there is a backlog.

On the other hand, the LN depends on chains of the so-called bidirectional payment channels, and these essentially depend on chained unconfirmed transactions. Thus, given the (false but politically necessary) claim that the LN is ready to be deployed, fixing the MB became a urgent goal for Blockstream.

There is a simple and straightforward fix for the MLB, that would require only a few changes to Core and other blockchain software. That fix would require a simple hard fork, that (like raising the limit) would be a non-event if programmed well in advance of its activation.

But Greg could not allow hard forks, for the above reason. If he allowed a hard fork to fix the MLB, he would lose his best excuse for not raising the limit. Fortunately for him, Pieter Wuille and Luke found a convoluted hack -- SegWit -- that would fix the MLB without any hated hard fork.

Hence Blockstream's desperation to get SegWit deployed and activated. If SegWit passes, the big-blockers will lose a strong argument to do hard forks. If it fails to pass, it would be impossible to stop a hard fork with a real limit increase.

On the other hand, SegWit needed to offer a discount in the fee charged for the signatures ("witnesses"). The purpose of that discount seems to be to convince clients to adopt SegWit (since, being a soft fork, clients are not strictly required to use it). Or maybe the discount was motivated by another of Greg's inventions, Confidential Transactions (CT) -- a mixing service that is supposed to be safer and more opaque than the usual mixers. It seems that CT uses larger signatures, so it would especially benefit from the SegWit discount…”


Unlocking The Power Of Bitcoin: A Sneak Peek Into Key Insights

Bitcoin (BTC)

Hello, Community!

Today we’re excited to give you a quick, informed look at Bitcoin and some of its key aspects. Bitcoin (BTC), the world’s largest cryptocurrency with a market dominance of 50.54% is the first-ever crypto created in an entirely new industry called Decentralization.

Invented by Satoshi Nakamoto, is known under a pseudonym.

After the launch, As it had never been traded, only mined, it was impossible to assign a monetary value to the units of the emerging crypto. In 2010, Laszlo Hanyecz decided to sell his $BTC for the first time, swapping 10,000 for two pizzas.

The same 10,000 Bitcoins are now worth about $291 mn, though!

Nearly 48.2 mn wallet addresses presently hold Bitcoin. BTC saw its all-time high of $68,789 on Nov 10, 2021, and an all-time low of $0.0486 on Jul 15, 2010, and has a current market cap of $566,255,817,270.

Which cryptogiant do you want us to cover next? Let’s know in the comments below!