What Everyone Should Know Before Investing Their Funds in Bitcoin

Alexander Salazar
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What Everyone Should Know Before Investing Their Funds in Bitcoin

It is necessary to take into account some considerations before getting involved in the world of cryptocurrencies. The information that experts provide can help to get the most out of the pioneering cryptocurrency.

Many people wonder whether investing in the main cryptocurrency on the market is a good decision. They have heard that some love to say when they bought (or mined) Bitcoin for the first time. Besides, value investors say that they regard it as “artificial gold”, as in the case of Charlie Munger, vice president of Berkshire Hathaway. He believes that Bitcoin is nothing, but “total insanity”.

Despite the diverse opinions about Bitcoin, the people who want to invest in this crypto asset must take into account some considerations. To get the most out of the pioneering cryptocurrency, potential investors should do their research. The following information may help to make a more accurate decision.

Issuance Limit of 21 Million Coins

The strict limit of 21 million units justifies the price that Bitcoin has reached. However, this is not the only crypto asset with limits, since Litecoin also has a cap (of 84 million). The price of this altcoin is not even close to 25% of the price of Bitcoin, which has already exceeded USD 40,000. The price of Litecoin is below USD 165, quite far from that of the first cryptocurrency.

Entry of Institutional Investors to Bitcoin

Bitcoin’s current price has led more institutional investors to buy it. For example, Michael Saylor, founder, and CEO of MicroStrategy bet the future of his company on Bitcoin. They even borrowed USD 650 million to get more involved in the cryptocurrency.

It should come as no surprise that MicroStrategy, Grayscale, Ruffer, and CoinShares, among other institutional investors, are moving towards Bitcoin. After all, they have made the price of Bitcoin increase, and everyone expects it to remain bullish in the long term.

“Network Effect” on Bitcoin’s Price

Some experts consider that the network effect seems to be driving the pioneering cryptocurrency higher. The growth in the number of investors has turned Bitcoin into a more valuable asset. That could explain why the price of other cryptocurrencies like Litecoin has not had such significant increases.

The network effect indicates that the usefulness of a cryptocurrency grows as more people adopt and use it. Certainly, the increase in the number of people and institutions buying Bitcoin causes its price to go up. However, the definition of the network effect does not apply to that case but to the use of a social media platform.

Handling Management

Those who want to buy Bitcoin must ask themselves whether they can handle volatility. For example, they should consider whether they can keep Bitcoin even if it falls by 50%. They should know the answer to that question regardless of the investment, especially in the case of the pioneering cryptocurrency.

They must also take into account what volatility says about Bitcoin as an asset. Even though they may expect some volatility with any liquid asset, Bitcoin goes to the extreme in this regard. It has had falls of up to 17% below USD 30,000 but has reached more than USD 40,000.

To conclude, future investors should be aware of Bitcoin’s ability to rebound from the worst all-time lows. The main cryptocurrency on the market has exceeded its previous all-time highs on more than one occasion. This leads to say that Bitcoin is still the best investment option in the cryptocurrency ecosystem.

By Alexander Salazar

The Largest Dark Web Market Does Not Accept Bitcoin but Monero

Alexander Salazar
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The Largest Dark Web Market Does Not Accept Bitcoin but Monero

In a post on the White House Market website, they indicate that they no longer accept Bitcoin. The White House Market already has more than 38,000 sales items.

People consider the White House to be the biggest market on the dark web today after DarkMarket went down. The new illegal market of the dark web represents a growing trend since they prefer to use Monero (XMR) to Bitcoin (BTC).

The name of the cryptocurrency Monero comes from the so-called universal language Esperanto and its translation is “coin” or “currency”. Its protocol uses some principles of Bitcoin, but with a new code base that focuses on privacy.

There has been debate about the privacy of both cryptocurrencies for a long time, but this is the first time that this has happened. A website that does not accept Bitcoin and only focuses on Monero has become the main market for the dark web.

Twitter user dark.fail (@DarkDotFail), an anonymous journalist specializing in the dark web and privacy, recently wrote about it.

“For the first time in the history of the dark web, the most active market does not accept Bitcoin. White House uses Monero, a cryptocurrency whose design safeguards the privacy of its previous owners, just like cash,” said dark.fail.

Those who enter the White House Market website can confirm the information through a brief message in the “Bitcoin” section. They explain that they no longer accept BTC and refer to a guide on using Monero. There they explain how to use it to trade on the White House Market. They have close to 3,000 salespeople, 38,000 articles/items, and just under 200,000 active customers at the time of writing this article.

In the opinion of the creators of this market, “Bitcoin lacks the necessary privacy.” Apart from that, “some users do not know how to use it and neglect to clean their coins.” For that reason, they removed the option to pay with BTC and will only accept the privacy-focused cryptocurrency that they currently accept.

Bitcoin and Monero and the Struggle for Privacy on the Dark Web

One study assessed the Monero adoption landscape, Bitcoin usage, and the struggle for privacy on dark web markets. The researchers found that there is a direct relationship between the products that they sell and the cryptocurrencies that they accept.

The growing concern about more private transactions has led the managers of these markets to view Monero as a good option. The fact that it focuses on privacy is one of the best qualities that they see.

Despite this, few dark web sites accept only Monero, and the preferred option is still Bitcoin. Most of them use this and other cryptocurrencies alongside Bitcoin, as in the case of recently closed DarkMarket.

Europol determined that DarkMarket had received a total of more than 4,650 BTC and 12,800 XMR, which is equivalent to more than USD 158 million. According to the prosecutors, the police authorities seized more than 20 servers in Moldova and Ukraine.

There are hundreds of illegal offers, such as drugs, documents, counterfeit money, and stolen access credentials, on the dark web. However, these markets also trade legal products for users who want to shop on the Internet with the greatest possible privacy.

By Alexander Salazar

Telegram vs. Signal: Both Apps are Receiving New Users

Jenson Nunez
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Telegram vs. Signal: Both Apps are Receiving New Users

Users are fleeing away from WhatsApp’s upcoming new terms and policies and are considering new apps like Telegram and Signal as more secure options.

WhatsApp’s primal rivals are climbing and gaining popularity after WhatsApp recently announced an ultimatum to its more than 2 billion users: a policy that enables sharing data with Facebook.

The new policies of Whatsapp generated great controversy and many negative reactions that led to a massive migration of users.

WhatsApp has now tried to clarify what the terms and policies will imply and has decided to postpone the date for users to accept or reject the new regulations. Despite that, it is too late; most users do not feel safe having the app on their devices.

A measure like this brings many benefits and advantages to its main rivals. Millions of people are choosing to switch to Telegram and Signal with intentions to set there their businesses because these messaging apps show greater security and privacy. However, some questions are hanging in the air: Which one to use? Which one is safer? Which one is better?

Which one to use? Which one is safer? Which one is better? Telegram vs. Signal

Telegram and Signal are both messaging applications that show very similar features to their counterparts WhatsApp and Facebook Messenger. Both operate with standard messaging interfaces and similar functionalities: send and receive text messages, voice notes, multimedia files, emojis, gif, stickers as well as some extra features.

Both are available to download on Android and iOS devices for free. Users need to have a phone number to complete a download. Also, both Telegram and Signal have a desktop application that allows users to access their accounts from the computer, no matter the operating system.

However, many differences between both apps show their teeth to convince users which one is the best for them. These features relate to functionalities and privacy policies.

Privacy is Always a Big Concern

The debate about the security and privacy of messaging apps is there since a long time ago. Now, a user decides to join any online platform, they read and accept terms and conditions of use that in many cases mean the use of some of their data by third parties.

WhatsApp’s privacy policy shows us the scale of data that this application collects. “We use all the information we have to help us operate, deliver, improve, understand, personalize, support, and market our services.” Besides, it adds that you can share information at your discretion.

In an app like Signal, all messages and communication are end-to-end encrypted between devices running that application. End-to-end encryption is a formula that users can also find in WhatsApp. The end-to-end encryption system ensures that only the sender or recipients of a message can read its content.

In this regard, Telegram seems to stand-still behind the curtains. In this application, end-to-end encryption is not a predetermined feature but appears as an option when users activate the ‘Secret Chat’ function. Also, such encrypted messaging functionality is only available for a conversation between two users.

By: Jenson Nuñez

Mizuho Securities: Paypal is About to Generate $ 2 Billion in Revenue from its Bitcoin Business

Jenson Nunez
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Mizuho Securities: Paypal is About to Generate $ 2 Billion in Revenue from its Bitcoin Business

Mizuho Securities is waiting for a massive amount in revenues by 2023 for Paypal and its Bitcoin crypto derivatives service, starting with a figure of 20% only by 2021.

According to analyst Don Dolev, from the Japanese investment bank Mizuho Securities, Paypal will gather a massive amount that could surpass the $2 billion for its Bitcoin business by 2023. Likewise, Dolev indicated that by 2021 he thinks that the company will gather a total income that circles 20 % in gains.

Dolev sustains that there was a “dramatic increase in customer engagement due to cryptocurrencies”, with at least 50% of Paypal crypto-users entering and using the app daily. “Both our survey and management feedback reveals an increase in engagement due to crypto,” Dolev said in a recent note.

In October, Paypal announced that its more than 346 million active users are now able to buy, hold and sell “bitcoins” as well as other important digital assets via their Paypal accounts.

Explosive, Positive, and Sudden Reception of These Services

The company’s crypto service, which runs through Paxos exchange’s fiat-to-crypto service, Itbit, received an explosive and sudden reception as well as the interest of many potential investors since its announcement and launch.

In November, News Bitcoin reported that, following estimates from the hedge fund Pantera Capital, Paypal (70%, along with its competitor Square Cash App (30%), bought the entire offering of Bitcoin on Itbit since the leader firm began offering cryptocurrency services four weeks earlier, according to ZyCripto, Square had already generated up to $ 1.63 billion in revenue by the time Paypal launched its service.

The fact that a service like Paypal does not offer an option to trade with cryptocurrencies means that at the moment users purchase “crypto” via this platform, users are not obtaining either the asset as such or the private keys to export it to your private wallet.

This is important to take into account because if you are not able to obtain the private keys, you can neither access freely nor be the owner of these coins.

Returning to the Paypal topic, a Dolev survey found that Bitcoin merchants use the Paypal app three times more than non-Bitcoin merchants and had significantly higher cash balances in their Paypal digital wallets.

In December 2020, at least a fifth of all active Paypal users tried to make successful trades. Those operations were spotted even before the said month when the survey was launched, while approximately 65% ​​were ready to make purchases in the 28 million businesses that already used Bitcoin.

According to Market Watch, Dolev raised its target price for Paypal shares from $ 290 to $ 350. However, the shares closed 0.94% lower at $ 239.79 on the Nasdaq Stock Exchange on Friday, January 15. Besides, in the last 52 weeks, the shares made a reach a maximum of $249.85 and a minimum of $82.07.

By: Jenson Nuñez

In just one day: Bitcoin Wallets with More than 1,000 BTC Reach highs Peaks twice

Jenson Nunez
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In just one day: Bitcoin Wallets with More than 1,000 BTC Reach highs Peaks twice

Glassnode reviewed that after breaking an all-time high hours earlier, 2,425 wallets with more than 1,000 bitcoins broke a whole new record.

This weekend, Bitcoin wallets with more than $ 1,000 BTC broke all-time highs twice in less than 24 hours, which means there is an increasing interest in the cryptocurrency from institutional and high-net-worth investors. This info appears in a Glassnode tweet.

The number of Bitcoin addresses with more than 1,000 BTC reached an all-time high (ATH) of 2,425 addresses. Next, Glassnode also stated that the previous record was left behind on the same day, with 2,424 addresses. To reach this wallet size, investors might manage a sum that surpasses the $ 36 million in Bitcoin investments.

At the moment, there is a narrative circling in the crypto space that relates to the entry of large-scale and institutional investors into Bitcoin. According to the BeInCrypto media, this is a kind of starting gate to the widespread adoption of the main cryptocurrency with the goal of growth of institutional wealth. This growth keeps being a positive factor in moments like these, with such a price currently in context.

What BeInCrypto and Glassnode are trying to tell is that there are no more old-school wallets with large amounts of BTC under their control. The sources say there is a new generation of investors starting life in this market, right on time when bitcoin reaches the highest prices ever.

More users are Starting to View Bitcoin from a Specific store of Value Perspective

One of the causes of the increase in institutional adoption could be a greater understanding of cryptocurrency. More users are starting to view Bitcoin from a specific store of value perspective rather than seeing it as a currency with the ability to transfer such value.

From these assumptions, Bitcoin is the target of many investors that see this store of value as a better alternative than gold, with more solid stability when it comes to saving properties and security.

An example of this is the case of MicroStrategy CEO Michael Saylor, which was one of the first business players that chose to enter this crypto-world.  Saylor was first skeptical of Bitcoin, but he ended up investing more than $ 1 billion of MicroStrategy’s treasury reserve assets in BTC. The firm is the first publicly-traded company to achieve this characteristic.

On an individual level, Saylor does not stand behind the curtains. The manager also possesses an investment of hundreds of millions of his wealth in Bitcoin.

There is expansive media coverage for this Bitcoin high-peaks. Glassnode’s all-time high break metric does not only appear in BeInCrypto’s report. There is huge media coverage of this event, and each report talks about it from their perspectives and visions.

According to the media, these gains may have been the product of a drastic change in the flow of capital from Bitcoin to these currencies. These violent changes in the flow of capital may lead to an escalation of the prices.

By: Jenson Nuñez

According to Scott Minerd, Bitcoin May Reach USD 400,000 in the Short Term

Alexander Salazar
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According to Scott Minerd, Bitcoin May Reach USD 400,000 in the Short Term

Scott Minerd recently predicted that Bitcoin may reach USD 400,000. He said that it can happen shortly.

In recent days, Guggenheim Partners global chief investment officer Scott Minerd said that people are becoming frantic about Bitcoin’s growing popularity. He also doubled his recent price prediction, saying that Bitcoin may even reach USD 400,000.

The Wall Street giant filed a document with the US Securities and Exchange Commission (SEC) requesting approval to invest in Bitcoin. After doing that, the company has become significantly more bullish concerning the cryptocurrency.

Guggenheim Partners CIO said last month that the company’s analysis estimated that Bitcoin’s price should be 10 times its current position.

Some speculators have backed his prediction that Bitcoin may reach USD 400,000. Minerd recently reaffirmed his position in an interview on television channel CNBC.

Besides, he noted that people have started to pay more attention to the cryptocurrency, becoming frantic about it. He also believes that his prediction could have attracted attention regardless of the circumstances. “I once commented in an interview that it is really interesting. To be honest, I could have said that the US government is bankrupt, the Federal Reserve is insolvent, and Bitcoin will eventually cost USD 400,000. They would just talk about Bitcoin telling you something. It is becoming a little frantic,” said Minerd.

Biden’s USD 1.9 Trillion Aid Package Proposal Fails to Shake Bitcoin’s Market

The US dollar has been gaining ground following Joe Biden’s fiscal stimulus announcement leading Bitcoin’s two-day rally to stall.

Maybe it is a surprise that the Bitcoin market has not given a bullish response. The monetary stimulus is inflationary and people widely consider Bitcoin as a store of value.

At the moment, Biden’s announcement has not yet triggered a rebound in the prices of Bitcoin and cryptocurrencies. The price of the pioneering cryptocurrency has recorded a slight increase, but it is not what most of the market has been expecting.

Financial Advisor Requests the British Government to Ban Cryptocurrency Transactions

Veteran financial advisor Neil Liversidge requested the UK government to ban transactions in cryptocurrencies like Bitcoin (BTC).

Liversidge, who owns independent financial advisory firm West Riding Personal Financial Solutions, urged local financial authorities to halt crypto transactions in the UK.

“Legislate to ban companies or individuals residing in the United Kingdom from paying or accepting cryptocurrencies. Require the country’s regulators (the FCA and PRA) to prohibit UK financial institutions from making transactions in cryptocurrencies such as Bitcoin,” the petition says.

Citing a common anti-cryptocurrency narrative, the expert argued that cryptocurrencies like Bitcoin have no intrinsic value. He also said that they “can be a destabilizing influence on society and is often usesd in criminal activity.” He also believes that cryptocurrency mining is “harmful to the environment.”

The UK Government and Parliament posted on their website that the petition deadline is July 7th, 2021. Until now, there are a total of 112 signatures.

By Alexander Salazar

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