The analysts predict that the switch from PoW to PoS could mitigate the opportunity cost of owning cryptocurrencies compared to other investments. Ether (ETH) will remain volatile, even using either PoW or PoS, and further concerns may arise.

There is a lot of expectation in the cryptocurrency market due to the upgrade to Ethereum 2.0. Many expect greater energy efficiency to run activities on its blockchain, which would lead to increasing popularity.

Some people, who include JPMorgan CEO Jamie Dimon, remain wary about this. However, two senior analysts from that company support the first argument in a recent report on the future of Ethereum.

Although the CEO expressed that opinion, it does not mean that JPMorgan has not researched cryptocurrencies before. For example, the bank dabbled in this sector in 2018 and even launched its stablecoin JPMCoin in 2019.

For that reason, some of its analysts are dedicated to finding out and making forecasts about the future of various cryptocurrencies. In this case, JPMorgan analysts make predictions about the Ethereum 2.0 proof-of-stake (PoS) upgrade. They assume that it will gain traction as a source of income for both institutional and retail investors.

Report from JPMorgan Analysts on the Future of Ethereum

The Bitcoin and Ethereum networks currently use the proof-of-work (PoW) consensus mechanism to ensure the validity of all transactions. However, this protocol does not have the best scalability and also consumes a lot of energy.

For that reason, Ethereum is moving from PoW to PoS, where investors lock their funds in exchange for rewards.

Such a change will boost the adoption of the alternative consensus mechanism after the launch of Ethereum 2.0 occurs, the authors predict. JPMorgan considered this possibility, and it was also one of the underlying reasons to develop the Ethereum upgrade.

According to the report, returns through proof of stake can mitigate the opportunity cost of owning cryptocurrencies compared to other investments. The latter include other asset classes such as US dollars and US treasury bonds.

It is just a matter of waiting to see what will happen, as the launch of Ethereum 2.0 should take place 2022. The report notes that the current market capitalization of PoS tokens exceeds USD 150 billion.

Things to Keep in Mind despite JPMorgan Analysts’ Views

Regardless of what the JPMorgan analysts reported, it is essential to remember that Ethereum is part of a volatile market. The volatility of this crypto asset will continue to exist, even using either PoW or PoS, and more concerns may arise along the way.

As the cryptocurrency market matures and volatility decreases, staking is likely to become a more reliable source of income. JPMorgan analysts considers that the Ethereum 2.0 upgrade has the potential to boost cryptocurrency adoption.

The second-largest cryptocurrency on the market is currently trading at around USD 2,300 and has accumulated 4.1% in the last 24 hours. Furthermore, its market capitalization has reached about USD 271 billion, according to data from CoinGecko.

By Alexander Salazar

The increase in the price of Cardano matches the expectations of the community, who want the network to be the most scalable. Despite the widespread losses in the cryptocurrency market, the bullish trend remains intact as a sign of the strength of ADA.

In recent days, Cardano (ADA) became the 4^th largest cryptocurrency after its price exceeded the value of Binance Coin (BNB).

ADA is currently trading at around USD 1.5 and accumulated a profit of 5.6% in the last 24 hours. The recent jump in its price brought its market capitalization around USD 8 billion.

How Cardano Reached 4^th Place in the Cryptocurrency Market

The significant increase in the price of ADA has matched the expectations of its community. They want the Cardano network to become the most scalable in the ecosystem and far surpass Ethereum.

The recent implementation of the Shelley update has contributed to increasing positivity due to improvements in staking and delegation.

The continued improvement of this network seeks to make Cardano a leader among decentralized networks.

The next update, Alonzo, which went into a testing phase at the end of May, can now run smart contracts.

The positive outlook for this cryptocurrency has caused the staking of more than USD 30,000 million on the Cardano network. This amount, equivalent to about 71.69% of the total circulation of ADA, seriously affects its shortage.

What Is the Usefulness of Staking Cardano?

Staking Cardano allows securing the network so that users can lock their coins in the protocol.

While the Cardano (ADA) network has the highest staking value in the market, Ethereum is the 2^nd largest. The latter has around USD 12.2 billion locked in staking.

Additionally, cryptocurrency investment trust Grayscale accepted ADA, making it the 3^rd largest holding.

The increasing demand on a network where users can lock their coins causes the price of ADA to increase in the medium/long term.

Technical Analysis of the Price of the ADA Cryptocurrency

The weekly price chart of Cardano shows the same strength as its infrastructure. Despite all the widespread losses in the market, the bullish trend has remained intact.

In recent days, the ADA price rejected the support at USD 1.3120, suggesting the possible bottom of the slide. The constant rejection of low prices indicates the exhaustion of sellers and the possibility of new highs.

This week, the price of Cardano has tried to escape above a descending diagonal resistance during the correction. If it manages to do so, that will be a sign that there will be a bullish resumption.

The Key Levels for the Price of Cardano

The daily price chart of Cardano (ADA) indicates that there has been a short-term bullish trend.

The price of the crypto asset is currently challenging immediate resistance at USD 1.42. Breaking that resistance would mean a significant recovery, but holding resistance at USD 1.80 could cause problems in the short term.

Holders can consider selling if the price breaches the support at USD 1.32. However, the buying pressure around the USD 1.00 area could help reverse the bearish intention.

By Alexander Salazar

In just a matter of days, the company will have its prototype built in Salvadoran territory. The company is already joining efforts with a team of 175 people, and they estimate that they will soon hire locals.

The manufacturer of bitcoin ATMs, ChainBytes, reported on June 30 that it moved its main production center to El Salvador. In 10 days, the company will have the prototype made entirely on Salvadoran soil, and, from there, its efforts will aim at achieving productivity of at least 50 machines a day or 1,500 a month.

The company has forged a  new team of about 175 people in El Salvador, but that number would increase soon as ATM production and demand grow.

He added that, since 2012, the company has been manufacturing and offering maintenance services for operators and companies focused on the bitcoin ATM business. ChainBytes has its main offices in the State of Pennsylvania, in the United States of America.

In addition, the company owned a production center in China that it had to dismantle recently due to the crackdown on cryptocurrencies in that nation. Now, the company has migrated its whole production center to El Salvador.

The company’s initiative received the support of Mónica Taher, who was in charge of International Economic and Technological Affairs at the Secretary of Commerce of El Salvador. After the meeting she held with a faction of the team, the official highlighted the manufacturer’s interest in establishing itself in the Central American country, providing investment and generating more jobs.

And despite the short time ChainBytes has had in El Salvador, they are already looking for support operators, so there is a possibility of new job opportunities in the future. Many bitcoin ATM operators are interested in installing new equipment in different parts of the country.

El Salvador Will Compete with Canada if it Installs 1,500 Bitcoin ATMs

El Salvador plans to turn this country into the second nation with the most bitcoin ATMs in the world since the Government of Nayib Bukele intends to install at least 1,500 equipment throughout its territory. The initial plan of the ATM operator, Athena Bitcoin, is to place a device in each of the 14 departments of El Salvador, for which it calculates to invest more than 1 million dollars.

El Salvador would be a match for Canada, which currently has 1,379 ATMs. The United States of America is the only nation that outshines this figure. There are more than 16,000 devices in the North American country.

But to get the Bitcoin Law to action, the nation will also have to conquer technological barriers that can get in the way of the generalization and the use and adoption of crypto assets as legal currency by Salvadorans.

By: Jenson Nuñez

The last countries to ban Binance from operating were the Cayman Islands and Thailand. Various countries are trying to restrict the unauthorized financial activities of the exchange on their territory.

In recent days, the Cayman Islands and Thailand restricted operations of cryptocurrency exchange Binance on their territory. In the case of the Asian country, a public agency even filed a lawsuit against the firm. Therefore, both countries joined the United Kingdom, Singapore, Japan and Malaysia, which had already taken similar measures.

The Securities and Exchange Commission (SEC) of Thailand filed a criminal complaint with the Economic Crimes Eradication Division of the Royal Thai Police. In April, the entity said that the firm had received a warning, to which it never responded.

Meanwhile, the Cayman Islands Monetary Authority (CIMA) reported on the irregular status of Binance Group and Binance Holdings Limited. The agency noted that they are not registered, licensed, regulated or authorized to operate as a cryptocurrency exchange on its territory. The entity also said that it is investigating whether the firm conducts other activities within its regulatory framework.

Representatives of the company say that they are not operating a cryptocurrency exchange from the Cayman Islands. However, they claim that they own other companies doing other activities allowed in the island’s laws.

Binance Faces Regulatory Challenges in Other Countries

Singapore is another nation, aside from the Cayman Islands and Thailand, where Binance has faced regulatory challenges. Singaporean authorities recently reported that they would evaluate the permits of the firm to operate in the country.

The UK Financial Conduct Authority (FCA) also banned Binance Markets Limited (BLM) from trading crypto derivatives. The exchange is not authorized to conduct such activity on that territory but said it would commit to comply with all the regulations.

Earlier, Japan’s Financial Services Agency warned that Binance is not registered to operate in the country. Besides, the Malaysian government issued a notification about unauthorized activities that the exchange does in its territory.

Binance’s Response to Its Regulatory Problems

Binance Group has promised to comply with the laws of each of the countries where it operates. The firm announced that it would share information about cross-platform transactions with other exchanges.

Companies in this sector could provide information about transactions to public agencies for investigative purposes against illegal activities. This measure encompasses the Travel Rule that the Financial Action Task Force (FATF) recommends.

There is also a history of successful operations that supports Binance’s commitment to collaborate with the State. For example, in late June, the exchange provided information that made it possible to stop hackers from laundering money on its platform.

According to Binance’s official site, the firm reserves the right to choose the markets and jurisdictions to conduct its activities. They may also restrict or prohibit, at their discretion, the provision of their services in certain countries and regions.

Due to its regulatory problems, regulators in the abovementioned have other Binance in their sights. If the firm does not comply with the regulations, the authorities will force it to close its operations.

By Alexander Salazar

An American official said that her country has Bitcoin and other cryptocurrencies in its sights. The use of Bitcoin as legal tender in El Salvador could attract the inflow of foreign capital.

In recent days, the US Undersecretary of Public Affairs, Victoria Nuland, spoke with Salvadoran president Nayib Bukele. The official recommended the regulation of Bitcoin when it becomes legal tender. That should happen on September 7^th, when the government completely implements the Bitcoin Law, according to the France24 news agency.

After that, Nuland provided details about the suggestion that she gave to the president of the Central American nation. She told the head of state that he should regulate Bitcoin well, regardless of what El Salvador decides. She stressed that the use of the cryptocurrency had to be transparent and accountable to ensure protection against malicious actors.

The US government official told the Salvadoran head of state about the position of her country on Bitcoin. She stated that the United States had Bitcoin in its sights after the cyberattack against Colonial Pipeline.

In May, the US pipeline located in Texas became the victim of a ransomware attack. The authorities attributed the responsibility of this act to a group of hackers who call themselves DarkSide. The cybercriminals requested them to pay them with Bitcoin (BTC) or other cryptocurrencies such as Monero (XMR).

The United States Takes a Skeptical Position on Bitcoin and Other Cryptocurrencies

However, that is not the only reason why the United States is skeptical about Bitcoin and other cryptocurrencies. There are other issues related to the pioneering cryptocurrency that concern the authorities of the North American country.

They include negative environmental impact of Bitcoin mining, terrorism financing, money laundering, and market manipulation. Furthermore, regulators believe that the United States could lose geopolitical influence if cryptocurrencies weaken the status of the US dollar.

Various reactions have arisen within international organizations due to the adoption of Bitcoin as legal tender in El Salvador. The Central American Bank for Economic Integration (CABEI) has expressed its willingness to support Bukele in this initiative.

In contrast, the World Bank, the International Monetary Fund (IMF) and the Inter-American Development Bank (IDB) do not agree. Additionally, private financial entities such as JP Morgan expressed their skepticism about the decision that the government of El Salvador took.

Others consider that the adoption of BTC as legal tender could benefit El Salvador. The use of the cryptocurrency would contribute to the inflow of foreign capital to develop industries in the country. Besides, Salvadoran citizens could receive remittances from their relatives more quickly and cheaply.

The relevance of Bitcoin and other cryptocurrencies in the world economy has led many countries to adopt them. However, regulators in countries like China and the United States are still against its decentralized and anonymous nature. Likewise, they argue that Bitcoin mining harms the environment and encourages illicit activities such as money laundering and terrorism financing.

By Alexander Salazar