The exchange rate of BTC in dollars tops Google Finance’s list of world currencies, BTC has been strengthening since May against the USDX dollar index.

When bitcoin attracts more interest from institutional investors, the first cryptocurrency is considered among the first in global relevance by Google’s financial information section.

It is a new version of Google Finance that is working in selected countries, such as the United States and Mexico. Several tests are set on the table as the new version is not accessible yet even in countries like Spain, Venezuela, Brazil, or Argentina.

When you enter the tool intending to create comparisons between markets of different categories in Google Finance and choose the category «Currencies», the price of bitcoin (BTC) in US dollars is displayed first on the left and its return in the last 24 hours.

Notably, bitcoin is included in the currency section along with fiat currencies such as the dollar, the euro, and the yen, among others. With this ranking, Google is giving a lot more weight to bitcoin as a currency, and in that condition, its positions reach first place. Bitcoin has different facets, as some consider it a value, similar to a stock; or it can also be seen as a refuge asset.

About the other four currency pairs shown, the euro against the US dollar (EUR / USD) ranks second. They follow USD against the Japanese yen (USD / JPY), the British pound against USD (GBP / USD), and USD against the Canadian dollar (USD / CAD).

Bitcoin is rapidly gaining popularity around the world, according to a study by the Center for Alternative Finance at the University of Cambridge, which reports that more than 100 million people are currently interacting with bitcoin and other cryptocurrencies.

Among the various advantages of bitcoin over conventional currencies, the decentralized nature of its network stands out. This allows you to send and receive payments without third party intervention; this happens quickly and demands low commissions.

Unlike in the conventional financial system, a bitcoin transaction is more resistant to censorship than other currencies. Payments can be sent at any time to any part of the world, without any limits on the amounts or the need for permits.

Bitcoin has received significant signs of interest this year from institutional investors. This past Wednesday a compilation of institutional investments in bitcoin made to date, both in investment funds, such as those made by companies such as MicroStrategy and more recently Square, which are aimed at their treasury reserve funds. In total, 18 companies have acquired 612,944 BTC, equivalent to a little more than 7,000 million dollars.

Another widely used financial information service, Yahoo Finance, also ranks BTC / USD at the top of its currency section. The second place is for Ethereum (ETH) in US dollars; the third goes to the EUR / USD pair.

By: Jenson Nuñez.

The owners of the Electric Coin Company (ECC), the company Zcash founded, agreed to donate the company to a new nonprofit called Bootstrap Project.

The ECC made the announcement in an Oct. 12 post in which they state that most of Electric Coin Company owners agreed to donate the company, although the vote is to take place on October 23. This will lead to a project that qualifies as “dedicated to the elevation of humanity through technology, scientific discovery, education and human organization.”

After the vote, the change will take place on an unannounced date before the update of the Zcash “Canopy” network, scheduled for next November.

The organization explains that with this hybrid “business / non-profit” structure they hope to provide the best of both worlds. The main plan is to continue as a startup in terms of business activities, customer orientation, and a very detailed focus on development. At the same time, they are seeking to achieve a better governance system for a public service mission-oriented organization.

Thus, with CCE’s donation to Bootstrap, they consider the promotion of a greater decentralization of Zcash, as well as greater tax benefits. It is added that although full ownership will be transferred to Bootstrap, this will not imply a modification of the organizational structure.

Therefore, management, employees, and operations will remain the same. Initially, Bootstrap’s Board of Directors will be the same as ECC’s. However, additional members are expected to join in late 2021, “to provide a greater diversity of stakeholders, demographics, and expertise.”

They request to maintain funding from the fund for Zcash

In the publication of the ECC, the community is requested that, following the previously agreed changes, in the next four years the ECC will continue to receive 7% of the mining rewards.

“Under this model, the donation from the Zcash community would flow to a non-owner, for-profit, tax-exempt public charity that implements the community’s intentions as expressed in agreement 1014,” they say. It is said that the rewards will thus be used to finance the “advancement of the new mission”, rather than going towards the fulfillment of the previous work of the ECC.

It is relevant that this 7% in order donate to the ECC is actually part of the 20% of the mining rewards that will go to a development fund. In that sense, the statement does not make it clear if the rest of that 20% will be distributed.

The agreement estipulates the allocation of 8% for the Major Subsidy Fund, and 5% for the Zcash Foundation. This is the new financing system to be implemented from block 1,046,400, coinciding with the first halving of Zcash, a mechanism for reducing rewards also estimated for November.

Considering the arguments presented in a discussion at the Zcash Community Forum earlier in the year, the ECC’s donation to Bootstrap would be seen as a very advantageous move. The forum discussed the possibility that the company switches to a non-profit organization, a fact considered as a favorable way to reduce corporate and fiscal control.

By: Jenson Nuñez.

The European Central Bank will exert control over the currency, according to a report. The agency aims to make it clear that the Digital Euro would not be a crypto asset.

The European Central Bank (ECB) predicts that it would be possible to launch the project in mid-2021, starting with a research phase. It reported that it will assess the requirements of users and service providers while requesting the public to participate in a survey.

Among those who can participate in the consultation are citizens, companies, NGOs, trade, unions and academic organizations. The ECB asks them to rank the possible characteristics of a future digital currency in order of importance. It also invites them to describe the challenges that would prevent them from using the Digital Euro.

With these preliminary phases, they seek to identify at least a minimum viable product, capable of meeting the requirements that the agency described in the report in early October.

A document, entitled “Report on the Digital Euro”, assesses the impact of the issuance of a central bank digital currency (CBDC) in the Eurosystem. It explains the characteristics that the digital asset should have to be functional in the European Union.

The central bank would be directly responsible for the Digital Euro from the beginning, “offering it in digital form for the use of citizens and companies for their retail payments.” This property places the digital currency within the CBDC retail cash like classification.

Differences between the Digital Euro and Crypto Assets

During the announcement of the public consultation, the ECB establishes that the Digital Euro must have various specific features. These include ease of access, robustness, security, efficiency, and privacy, in addition to compliance with the law.

Among the potential benefits of the digital currency, the European Central Bank takes into account the rapid changes occurring in the retail payments sector. It considers that the Eurosystem should have the equipment to issue digital currencies in the future.

According to the report, the Digital Euro could serve to increase options, competition, and accessibility regarding other forms of digital payment, thus supporting financial inclusion.

The agency wants to make it clear that the Digital Euro will have nothing to do with crypto assets. It emphasizes that cryptocurrencies are different from the money that a central bank issues “because their prices are volatile, lacking an intrinsic value, without a reliable institution to back them.”

The ECB’s definition of crypto asset leaves aside considerations on the use of cryptography to issue the digital currency. If they take into account this tool, the Digital Euro would then be a crypto- asset.

The report makes no specific mention of cryptocurrency mining. However, it seems to make a comparison when highlighting that Europe’s digital currency “could represent an option to reduce the overall costs and the ecological footprint of some other existing payment systems.”

The agency expects the Digital Euro to have the same functions as the euro in general. They state that they want the central bank to ensure preserving the value of their money and safeguarding any form of digital euro.

In this way, the ECB aims to regulate the digital currency similarly to fiat currencies, as China plans to do with the Digital Yuan. It is not clear whether it would be subject to the customary depreciation of fiat money. Some measures that central banks take, such as the inorganic issuance of money that leads to the devaluation of currencies, sometimes contradict the idea of preserving value.

A deeper analysis could shed light on the future role of the Digital Euro as a tool to strengthen the monetary policy of the European Union. The agency will prioritize measures that counteract adverse effects on financial stability.

By Alexander Salazar

Parameters of the Bitcoin network indicate a growing demand, which the price does not reflect. In various simulations, Bitcoin brings diversity and better returns to portfolios.

In recent days, Bitcoin has maintained its position, fluctuating in a narrow range around USD 11,400, amid signs of interest from institutional investors. Even with a price variability of just 0.88%, some analysts consider that Bitcoin would already be in a new cycle of volatility. Google Finance also positioned Bitcoin as the first world currency.

Kraken’s research unit published a study that suggests that Bitcoin would have entered a new phase of volatility, beginning with minimum volatility of 23%. According to the document, there are also signs of greater demand for Bitcoin, such as the sustained growth of active addresses, since March, and the 50% increase in Bitcoin processing, since early 2020.

The study shows discrepancies between the fact that there are almost a million active addresses, a milestone surpassed only in December 2017 and January 2018, and that Bitcoin’s prices have not advanced similarly.

Institutional Interest in Bitcoin Increases

Stone Ridge Asset Management recently acquired USD 110 million worth of Bitcoin. The company offers custody services for Bitcoin through its subsidiary New York Digital Investment Group (NYDIG), which offers cryptocurrency-related services in the state of New York.

Investments like those of Square, MicroStrategy, and Stone Ridge are not the only ones that reflect the growth of institutional interest in Bitcoin. Around 18 publicly traded companies have openly expressed their trust in the cryptocurrency. They see it as either a strategic treasury reserve or as a means to build investment funds in Bitcoin. This consolidates Bitcoin as an institutional investment medium.

Firms have acquired around 612,944 BTC to conduct these institutional investment plans, which exceeds USD 7 billion, at the time of writing this article. According to the companies that have disclosed their investment plans, they devote 3.31% of the total Bitcoin supply to institutional investments.

The institutional investment in Bitcoin by Grayscale, CoinShares, and MicroStrategy accounts for 91% of the total amount. Square is in seventh place in terms of the amount of BTC invested, but it is the most important regarding market capitalization, which has risen to USD 82.65 billion.

Bitcoin in Traditional Investment Portfolios

There are various scenarios of the inclusion of Bitcoin in traditional asset portfolios, with a distribution of 60% of shares and 40% of bonds, according to several studies. The most recent study by Fidelity Digital Assets analyzes the profitability of including various percentages of Bitcoin in a traditional portfolio.

The study analyzes and characterizes alternative assets, precisely those that portfolio managers use to diversify their investments. These assets generally have a higher level of risk, but more attractive returns than traditional assets. What distinguishes these assets is their low correlation with professional assets, according to the research.

The authors say that Bitcoin meets the characteristics of alternative assets since its correlation with seven traditional assets is remarkably small: 0.11.

Regarding the different inclusion percentages of Bitcoin, there are the resulting returns and the variations in volatility and the Sharpe Ratio, a parameter that measures the effectiveness of the investment.

By Alexander Salazar

The government approved a list of 20 new technologies, including blockchain.

New developments would be prioritized over possible advances from China and Russia.

The United States government is stepping on the accelerator in the race to develop projects with the so-called distributed ledger technology (DLT) or blockchain. The administration of President Donald Trump released its National Security Strategy (NSS) with critical and emerging innovations on Thursday.

The document mentions up to 20 technologies that will have priority, among which in addition to blockchain, there are also: artificial intelligence, biotechnologies, advanced computing, space technologies, autonomous systems, nuclear mitigation technologies, medical and public health innovations.

The goal of US authorities is to lead big research and be the total innovators for “economic growth and national security.” On this point, the rivalry it maintains with other nations such as China and Russia is mentioned.

“Our market-oriented approach will allow us to prevail against state-run models that produce waste and do not incentivize innovation. We will also protect ourselves from unfair competition and avoid the use of our technology for authoritarian activities”, highlighted the report released by the White House.

It is not clear which are the areas where DLTs would have the greatest use or impact. However, the document emphasizes that the country will seek to take advantage of opportunities to benefit from the technological panorama and “stay ahead of strategic competitors.”

The United States and China, head to head in the blockchain race

The statement comes just three days after the firm PricewaterhouseCoopers (PwC) revealed that both China and the United States would be the hubs of the global blockchain industry in the next decade.

Although the United States has not mentioned the sectors that could benefit from DLTs, according to PwC’s analysis, blockchains would play a leading role in multiple areas. These would be: tracking and tracing of products, payments, and financial services, identity, contracts, and resolution of disputes and commitments with customers.

President Trump’s go-ahead comes a year after his Chinese counterpart, Xi Jinping, announced that his country had to take the lead in blockchain development. A CriptoNoticias report, released in October last year, cites the statements of the Asian head of state.

“We must clarify the main direction, increase investment, focus on several key technologies, and accelerate the development of blockchain and industrial innovation technologies,” Jinping stressed at the time.

China not only leads the United States in its political readiness to adopt blockchain. The country also has a project underway that would make it the first to officially use a central bank digital currency (CBDC), the digital yuan.

The so-called DLT or blockchains are original to Bitcoin technology, a distributed digital cryptographic system that gives life to the first cryptocurrency on the market.

Its innovation allows two or more people (or entities) to carry out transactions without the intervention of trusted third parties or intermediaries. The operations are recorded in an immutable “ledger” and any participant can consult them.

By: Jenson Nuñez.

Although that the markets are falling, this October 15, the increase was seen in the price of Filecoin after its launch on the market.

After the irregularities and fluctuations seen yesterday, the price of Bitcoin (BTC) partially stabilizes again, and it is trading at about USD 11,378 at the time of publication, registering a slight fall equivalent to 0.2% in the face of the seen in the last 24 hours.

In the CriptoMercados graphs, yesterday’s surprise took place in the morning, since just 30 minutes the digital currency registered a significant peak in the main markets, reaching a maximum price equivalent to about USD 11,532 per unit. After this increase, its price fell again, reaching lows close to USD 11,315 by 3:00 pm (New York time) and recovered in the following hours.

However, as of 4:00 am on October 15, the price falls again below USD 11,400 until it reaches a minimum of USD11, 313. From this moment, its price began to rise to the levels from before.

As for the sudden increase in the price of the digital currency, this coincided with important peaks in the levels of the Hash present in the Bitcoin network, while the fall in prices seems to be associated with the fact that the financial incentives considered by the US government for residents, apparently will not take place before the presidential elections scheduled for next November 3.

Faced with all this panorama and the fact that the market registers around USD 26,513 million in commercial operations, our actionable signals service maintains a neutral position, so it is recommended to pay attention to the evolution of the ecosystem in the next few hours to have a clearer perspective concerning the evolution of the price.

All the followers of this report found surprisingly that the Filecoin (FIL) token, a digital currency belonging to the project of the same name, registered a bigger increase of more than 260% in the last 24 hours.

Filecoin is a project that recently was in the development phase and was officially launched today on the mainnet. Its main purpose is the storage of data in the cloud, differentiating itself from services such as Amazon or Google since this is carried out in a decentralized way, serving as a support to save large amounts of information that are and will be of importance to humanity in the next decades.

The project is under the direction of Juan Benet, a renowned North American scientist, creator of the Interplanetary File System (IPFS). Originally Filecoin launched its ICO in 2017 raising around USD 205 million in crypto funds, and although its launch was planned for last year, it was extended until October 2020 to polish certain important technical aspects.

As well as for its price, the token is trading at about $ 114.91 at the time of publishing, increasing more than 260% from its launch price. Following these announcements, major exchanges such as Binance, Gemini, KuCoin, Kraken, and Huobi have already announced that they will incorporate the FIL token into their commercial listings in the next few hours.

 The Winning and losing of cryptocurrencies set in places this October

Beyond the surprise of the day at the hands of Filecoin, among the currencies with the most pronounced increases and falls, the following cases stand out:

The second and third places are occupied by the tokens ABBC and HIVE. The first case registers an increase of 40% while the other currency capitalizes gains higher than 11% in the last 24 hours. Again AirSwap (AST) is among the main losers of the day, falling more than 16% compared to yesterday. It is followed by the DIA token with losses of over 14.7%, while UNI ranks third among the steepest declines with 13.4%.

By: Jenson Nuñez.