The price of Bitcoin shows signs of stability above $ 10,000, with traders explaining where is heading the next big BTC move.

The price of Bitcoin (BTC) has been levitating between $ 9,800 and $ 10,500 for nearly a week after falling from $ 12,100 on September 1. While BTC struggles to show any distinctive price movement, traders are generally cautious.

In the medium and long term, traders expect Bitcoin to rebound and perceive the ongoing consolidation phase as a healthy pullback. From July 16 to August 17, Bitcoin rose from $ 9,005 to $ 12,486 on Coinbase, with a pullback that is arguably necessary to neutralize the futures market.

Vinokuorov stated that the decline is a potential set of benefits for Bitcoin in the coming months, as the rejection of prices is not a negative development if the market calmed down as a result. He also said that the leverage and speculative flow of traders are eager to align after a period of consolidation:

“Price discovery and consolidation after a sharp rally is an indication of a healthy market flow both ways. Price rejection is not necessarily a bad development as it allows market to take stock of the situation and try to align the interests of both the leveraged/speculative flow and those of the long-term holders. “

The long-term outlook for Bitcoin

Heading into the fourth quarter of 2020, analysts stay neutral or bullish on the Bitcoin price trend, and an abundance of technical and fundamental factors could keep sentiment around BTC firm from November to December. Historically, BTC had a strong performance in the last two months of the year. Most notably, BTC hit a new all-time high in December 2017.

Possible technical catalysts include the closing of the monthly Bitcoin candle above $ 11,600 for the first time since 2017, and reaching the resistance level of $ 12,000. Although briefly, it marked a major breakout after falling to a low of $ 3,596 on BitMEX in March 2020.

The short-term Bitcoin bullish scenario would lead to a retest of the $ 11,000 resistance level, based on the chart above. A bearish scenario would cause another drop to $ 9,000, potentially leading BTC to the CME gap of $ 9,650 that has yet to be filled.

Since Bitcoin whales often mark the top and bottom of BTC, there is a strong possibility that BTC will fall to $ 8,800, which was identified as a buying area for them. An anonymous trader recognized as “Salsa Tekila” said: “If BTC falls 30 to 45 percent from the top as in 2017 (past performance does not predict the future), it would take us between $ 6,850 and $ 8,650.”

But Hirsch commented that in previous opportunities: “We have seen these rallies a number of times, so I would not be surprised if a bitcoin rally occurred this year as well.” Furthermore, Vinokourov believes that Bitcoin could retest the $ 12,000 mark soon as “the number of Bitcoins locked on Ethereum continued to rise even as the total amount locked across the ecosystem decreased.”

By: Jenson Nuñez.

Many of the things that bitcoiners often do could be suspicious. Each jurisdiction may vary the way it applies the FATF recommendations.

The Financial Action Task Force (FATF) considers many things that users can do with Bitcoin and other cryptocurrencies as “red flag indicators.” For this organization, “the public does not use digital assets widely, but their use has become popular among criminals.”

In this regard, the FATF recently issued new recommendations for the member countries of this group. The agency provides details on the actions of Bitcoin users that would trigger the alarms of regulators and those responsible for national security.

What Not to Do with Bitcoin

People who buy Bitcoin from an exchange in their country and immediately send one part to Binance, another to Blockfi, and another to Crypto.com,  could be suspicious. The FATF identifies the “immediate transfer of funds to multiple virtual asset service providers” as a “red flag indicator.”

By conducting several high-value transactions in cryptocurrencies in less than 24 hours, the user leaves a record of the movements. Similarly, using a recently created account or one that has been inactive for a long time could also lead the FATF to consider a user a potential criminal.

It will not be possible to divide the transaction into small amounts so as not to raise suspicions. “Structuring transactions in small amounts and below recordkeeping or reporting thresholds” will also trigger the alarms of authorities.

With the application of the FATF recommendations, anyone who tries to convert a large amount of a given crypto asset into another one without a logical commercial explanation “will be a potential criminal.”

“Incoming transactions from many unrelated wallets in relatively small amounts, with subsequent transfer to another wallet or exchange for fiat currency,” will activate another “red flag indicator.”

The fact that users lie when identifying themselves with a crypto asset service provider will also suggest criminal activity. The same will happen to those who have any problem with the creation of their account.

Likewise, if a low-value digital asset in which the user puts all his savings has grown by 10,000%, he could be in trouble. The red flag indicator will also appear if “most of a customer’s wealth derives from investments in virtual assets, ICOs or fraudulent ICOs.” This would also happen when some people’s economy is bitcoinized.

Application of These Measures

It seems unlikely that big cryptocurrency exchanges and service providers will offer much resistance to these recommendations. For example, custodial company BitGo announced months ago that it would adapt to a recent FATF regulation, known as the “travel rule.” This establishes the obligation to cross customers’ data between exchanges if their transactions exceed USD 1,000.

Regulating and collecting agencies are likely to welcome the FATF recommendations. Alfredo Collosa, Consultant to the IMF and official of the Argentine tax authority AFIP, explained that “this report will help virtual asset service providers, financial institutions, designated non-financial businesses and professions, and other reporting entities to detect and report suspicious transactions.”

Not all jurisdictions have to apply the recommendations that the FATF provides. The Group itself recognizes that “countries have different legal and financial systems.” For that reason, “not everyone should take identical steps to achieve a common goal.”

By Alexander Salazar

An increasing number of investors prefer to use Ether to generate returns, as Glassnode notes. About 5% of the ethers in the market are in the WETH token smart contract.

The utility of Ether has never been as marked as in 2020, according to the blockchain analytics firm Glassnode. An increasing number of investors prefer to use ETH to generate returns, not just as a tool to store value.

The researchers calculate that more than 15% of the total supply of ETH in the market is deposited in DeFi smart contracts. This represents almost 4% more than in 2019 when only 11.5% of Ethereum coins were in use on financial platforms.

According to Glassnode, the rise in the utility of Ether has occurred as a consequence of the explosion in popularity of the decentralized finance (DeFi) ecosystem. This market has grown impressively in recent months, reaching more than USD 8 billion in circulation between its platforms in September.

Glassnode experts say that most of these coins are distributed between the smart contracts of lending platforms, exchanges, and stablecoins. They also note that yield farming strategies have contributed to the increase in the amount of locked Ether.

Smart Contracts in which Ethers are Deposited

About 5% of these retained tokens are in the smart contract of the WETH initiative, a wrapped ether that expands the interactions of this currency with other DeFi tokens. Most of these WETHs are deposited on the decentralized exchanges (DeX) Uniswap and Balancer. Likewise, the lending platform Maker also owns a significant portion of these tokens.

A significant amount of Ether is also deposited in the smart contracts of multi-signature exchanges such as Bitfinex and Gemini, as Glassnode reports. Compound receives honorable mention for its mid-year surge in popularity, earning it first place in capitalizations of the entire DeFi market. However, reports from DeFiPulse indicate that the application has currently lost ground, and the lending platform Aave has claimed dominance.

The cryptocurrency community and professional researchers continue to turn their attention to Ethereum’s decentralized finance ecosystem. This market looks like an opportunity to change the financial world as people know it, opening the way toward an industry that works with programmable money. However, since it is a new and experimental ecosystem, users must be aware of the financial and technical risks that these platforms pose.

Few users have been able to receive returns of up to 100% by doing yield farming on DeFi platforms. However, most of them are exposed to the possibility of a smart contract error, hack, or insider trading. In this sense, investment in these platforms must be prudent and conscientious.

As some experts have previously warned, the user must do their research before making their investments. It is necessary that investors not let the popularity of a platform carry them away, but rather try to learn more about where they can invest their capital profitably.

By Alexander Salazar

Upon issuance, the new currency will be classified as M0 (central bank-issued cash). The government appears to be fine-tuning details but has no date for the official launch yet.

The deputy governor of the Central Bank of China (PBoC), Fan Yifei, recently stated that the digital yuan will meet all the requirements that will allow its acceptance as legal tender. He also said that it will compensate for all the functions of China’s fiat currency and will have the same regulation as cash.

According to the vice president, China’s new central bank digital currency (CBDC) will circulate as M0 (central bank-issued cash). This fact means that it will be part of the supply of notes and coins of the Asian country, for which the central bank will fully control it.

The PBoC is currently coordinating the way that it will handle cash, to be able to centralize the issuance, and manage the digital yuan, explains Yifei. Besides, they will formulate unified business standards, along with technical specifications, safety standards, and application standards. Likewise, they evaluate the future of the registration, monitoring, and analysis of the trading of the CBDC.

The official notes that this process includes the management of digital wallets and the adaptation of the infrastructure to achieve interoperability between the operating institutions. With this, they seek to guarantee the stable and orderly circulation of the digital currency.

The intention of the PBoC to maintain absolute control over the issuance and infrastructure of the new digital currency appears in previous publications. The distribution of the CBDC to the public can only occur through commercial banking.

Evolution of Chinese Legal Tender Currency

The PBoC senior official mentioned the principles that will govern the operation of the digital yuan. China’s central bank views the issuance of the CBDC as a digital representation of cash.

“Technology and demand drive the historical evolution of legal tender, so a currency gradually goes from physical to digital form,” Yifei says. For that reason, the regulation of the digital yuan will be under the laws related to cash and must comply with all the regulations related to the administration of this type of money.

The design of the digital yuan is to convert it into legal tender, emphasizes Yifei. He states that it will also be possible to use the digital renminbi (yuan) to pay “all public and private debts within our territory,” depending on all the provisions governing China’s fiat currency. He stressed that the acceptance of the digital currency throughout the country will be mandatory, and so “no unit or individual can refuse to accept it if it meets the conditions.”

Since its regulation is in line with China’s current money regulations, the digital yuan must also comply with anti-money laundering and counter-terrorist financing (AML/CFT) policies. To do this, it includes “a controllable anonymity system”, which will be able to track and monitor transactions, and thus avoid money laundering.

Everything seems to indicate that the Chinese government is fine-tuning the details for the design and final issuance of the digital yuan, but it has not yet announced the launch schedule. The PBoC and a group of commercial banks have been conducting tests in various cities in China for several months.

By Alexander Salazar

According to information published by various local media, among the technologies considered for academic programs are Artificial Intelligence (AI), programming in the cloud, cybersecurity techniques, and the use of Blockchain.

The Ministry of Information Technologies and Communications (MinTIC) of Colombia announced the establishment of an agreement with the technology company IBM, which they commit to jointly design educational programs aimed at citizens to improve the management of new technologies and disruptive technologies framed in the fourth industrial revolution.

About this matter, the ICT Minister, Karen Abudinen, indicated that this alliance is aiming a level of strength in the development of local talent in the abovementioned technologies so residents can become more familiar with them and even adopt them in the face of the fourth industrial revolution.

This agreement is an excellent example of the social commitment that IBM has with Colombia. Both the company and all Colombians have had the same dream in common: to make a technology change millions of lives and always be at the service of all equally, to improve employability opportunities and professional growth.

IBM, Colombia, and the dawn of new technologies

We entered the dawn of the Fourth Industrial Revolution. Unlike the previous revolutions, the Fourth Industrial Revolution is characterized by the confluence of various disruptive technologies, different ministries, and government agencies plus the strategic advantages that Colombia offers in terms of training personnel for use and adoption from the same.

About this subject, Abudinen assured that hand in hand with IBM, the country will activate and accelerate the training process of at least 62,000 professionals, which will be of vital importance to help in the development of the local economy. Taking this point seriously, Abudinen said: “This is important cooperation with one of the world leaders in the ICT industry, pioneers in the development of artificial intelligence, who also inaugurated in Bogotá, last April, its largest center for the transformation of processes with artificial intelligence in Latin America.”

Which are the programs to offer support?

Offering more details on the joint plans, the organizations detailed that the agreement focuses on the development of three programs:

-Open P-TECH: Digital platform with content for undergraduate students and teachers, which consists of 20 courses in areas such as cybersecurity, artificial intelligence, and cloud computing. It includes activities for the development of complex problem solving, computational thinking, and collaborative skills.

-Academic Initiative: Alliance with higher education institutions to improve the academic profile of teachers and graduates, reinforcing educational programs in the area of ​​ICT.

-SkillsBuild Program to support professionals and vulnerable populations, promoting the development of skills in line with market demands, counting on the advice of IBM professionals in the process.

Some other objectives were the creation and development of corporate volunteers for digital literacy programs, mainly aimed at young residents of the country.

By: Jenson Nuñez.

The consultant highlights that Bitcoin and Monero defend the theory that they are sound money. He portrays how the economic consequences of the pandemic will affect the world in the coming years.

In recent days, Daniel Kim, an independent cryptocurrency project consultant, delved into the strengths and weaknesses of Bitcoin, the US dollar, and Monero amid the global economic crisis that the coronavirus has caused.

Daniel Kim showed the reality about how the economic consequences of the pandemic will affect the world in the coming years. This new scenario, in which the US dollar is losing value, leads him to consider that it is the right time for citizens to seek new independent sources of scarcity, such as Bitcoin and Monero.

Since the coronavirus pandemic started to affect the world, governments have demonstrated that they can print as much money as they want, and nothing seems to stop them, according to Kim. This situation, as well as high public spending, will cause hyperinflation, as reflected in the book “Monetary Regimes and Inflation”, which he recommends.

“This book concludes that the trigger of inflation in 25 of 29 cases was the creation of money to finance the public deficit. This makes it evident that the printing of money will not lead us in the right direction,” said Kim.

Seeking to demonstrate that the US dollar is losing value, the consultant added that the money supply in the United States has grown by an average of about USD 300 million per hour. He considers that this accelerated rate of monetary creation is showing that money can lose so much value that it unreliable; as a consequence, people must spend it before its reflected value disappears.

Kim said that people have historically turned to classic systems of scarcity, such as gold or silver, to protect themselves from hyperinflation. However, he noted that the world is now discovering a digital way to protect itself, such as the scarcity of Bitcoin and Monero.

Bitcoin and Monero: Safe Money

Daniel Kim showed the terrifying situation that the huge supply of US dollars has caused in the world. Then he presented graphs that show that Bitcoin and Monero are reaching a new area of scarcity. He explained that their inflation rates will be increasingly low and adds that they will remain below the gold rate so that both satisfy the definition of being sound money.

To reflect that alternative sources of scarcity represent the safest money in the world, Kim provided an example in which a person turns to these systems to seek refuge from inflation. He said that this person would buy one-millionth of all the gold that there will be in the world in 100 years.

There are currently 200,000 metric tons of gold and its supply grows by about 1.8% per year. At this rate, there will be more than 1 million metric tons of gold in 2120. In other words, Kim estimates that the person must buy a metric ton of gold, requiring an investment of USD 76 million.

Kim did the same calculation with Bitcoin, whose total supply in 100 years will be 21 million coins, as its white paper states. Therefore, a person needs to invest USD 244,000 now to buy one millionth of all the Bitcoin in the world in a century.

By Alexander Salazar