Bitcoin (BTC) “Has Died” 474 Times, But Can It Really Die?

Leonardo Perez
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Bitcoin (BTC) “Has Died” 474 Times, But Can It Really Die?

Being declared “dead” 474 times since 2010, the price of Bitcoin has steadily rebounded, though, reaching new all-time highs. Tomasz Wojewoda, director of BNB Chain, believes that an “extreme event” that could end Bitcoin, but not all cryptocurrencies. Despite aggressive measures by the US SEC, cryptocurrencies have remained strong, and Bitcoin remains the most popular cryptocurrency.

According to the 99Bitcoins platform, Bitcoin (BTC) has been officially declared “dead” 474 times since 2010. Predictions about the demise of cryptocurrencies are most common during prolonged downtrends.

Despite these circumstances, the Bitcoin price has steadily rebounded, reaching new all-time highs.

What Extreme Events Can Destroy Bitcoin (BTC)?

Tomasz Wojewoda, head of business development at BNB Chain, believes that anything more extreme could lead to a complete collapse of Bitcoin and the entire cryptocurrency market. He spoke to reporters about this combination of unique events.

According to Wojewoda, an “extreme event” that can kill Bitcoin is if all or most of its participants forget about cryptocurrencies and never use them. According to the expert, this is unlikely because cryptocurrencies are used not only for speculation, but also for regular transactions anywhere in the world.

A key feature of digital assets is the undeniable ownership of decentralized assets that are cryptographically secured. This means that users can create their wallets, send coins there and be sure that no one can confiscate them.

The expert is sure that there will always be demand for cryptocurrencies. It is a convenient investment asset that is a technological advancement in itself. Even if every investor on the planet suddenly disappeared, the Bitcoin enthusiasts working on its blockchain will keep it going. And even this fact is enough to maintain the functionality of the BTC network and carry out transactions. Therefore, it is almost impossible that these factors can kill Bitcoin.

Bitcoin (BTC): What’s Happening to Governments?

The efforts of some government agencies cannot stop the development of cryptocurrencies either. The United States Securities and Exchange Commission (SEC), led by its chairman Gary Gensler, has been especially aggressive towards cryptocurrency companies. According to Gensler himself, his agency filed more than 780 lawsuits in 2023, which is a very serious result.

However, the SEC also lost some high-profile cases throughout 2023. The regulator lost a court case against Grayscale and also dropped charges against Ripple, whose token the Commission called valuable. In both cases, the court found the regulator’s allegations unfounded.

With the above, the SEC’s losses have only reinforced investors’ faith in cryptocurrencies and their firmness. November 2023 marked a record for the number of mentions of Bitcoin in SEC filings. This is mainly due to preparations for the launch of new ETF funds for the first cryptocurrency in the United States.

It is expected that this can occur in the first half of January 2024, that is, within the next month. Ultimately, the government and regulators must accept that cryptocurrencies are here to stay.

Bitcoin Will Remain the Most Popular Cryptocurrency

Permutations between altcoins will not affect Bitcoin in any way. It has become a brand in the cryptocurrency industry and will remain so for a long time, the BNB Chain representative stated.

Matrixport head of research Markus Thielen is also skeptical that a bear market or other crisis poses a real threat to the cryptocurrency market and Bitcoin in particular. Speaking to reporters, Thielen said global downtrends should be seen as an opportunity to rebuild and improve the company.

By Leonardo Perez

Ethereum’s Vitalik Buterin Wants to Move Some Layer 2 Functions Back to L1 via the Enshrined zkEVM

Audy Castañeda
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Ethereum’s Vitalik Buterin Wants to Move Some Layer 2 Functions Back to L1 via the Enshrined zkEVM

Buterin believes the time-honored zkEVM method, which returns functions to L1, is the next course of action as “thin clients” go from strength to strength.

Ethereum co-founder Vitalik Buterin has advocated for the need to remove some features from Layer 2 networks or rollups and return them to the Ethereum main chain. This “zkEVM” (zero-knowledge Ethereum virtual machine) “enshrined” method is the exact opposite of his previous campaign from years ago, which sought to transfer the computational load from the Ethereum main chain to Layer 2 networks.

Buterin previously touted a major support for Layer 2 networks that pool transactions for off-chain processing before returning them to the main chain. Adopting Layer 2 networks, a proven method for improving scalability, was an important point Buterin highlighted at a 2020 conference when network rates were skyrocketing.

These Layer 2 services, including zk-rollups, come from several projects that have seen some success in decongesting the Ethereum blockchain. However, they may be in danger if Buterin’s proposals gain widespread popularity and adoption.

Enshrined zkEVM Method

In a recent blog post, Buterin points out the importance of thin clients, which are lightweight nodes running simplified client software. These thin clients request data only when it is needed rather than independently verifying changes made to blockchain data by retaining their copy of the data.

Generally, the light client, or light node, downloads the actual contents of the block only occasionally, and mostly only processes the block headers. Buterin maintains that over time, especially as their features and data increase, these light clients will become more powerful and will be able to fully verify Layer 1 transactions like Layer 2 networks.

“At that point, the Ethereum network will effectively have a built-in ZK-EVM,” Buterin wrote. “Zk,” or zero-knowledge proof, is a cryptographic protocol that allows one party to prove to another that a transaction is correct, without providing any specific details of the transaction.

On the other hand, EVM is the complete Ethereum engine. It boosts the environment and manages the blockchain, enabling smart contract functions. The EVM is an essential part of the client software used to run Ethereum nodes. Layer 2 networks like Polygon, Scroll, and Matter Labs use zero-knowledge proof.

Some of these platforms are important stakeholders in decentralized finance (DeFi), which Ethereum drives more than any other blockchain. Consequently, these platforms could lose some strength due to the zkEVM method enshrined by Buterin.

Layer 2 Roles After Deployment

Buterin then explains the role of Layer 2 projects if zk-EVMs are enshrined and become part of the original protocol. According to him, these projects “would still be responsible for many important functions.” Some of these features include fast pre-commits, MEV mitigation strategies, and EVM extensions.

Additionally, Buterin says the established zkEVM method would also handle “user- and developer-facing conveniences.” He wrote the following:

“Layer 2 teams work hard to attract users and projects into their ecosystems and make them feel welcome; they are compensated for this by capturing MEV and congestion rates within their networks. This relationship would continue.”

Buterin’s comments on Ethereum come as the blockchain’s native Ether token rises 4.6% to $2,275, according to data from CoinMarketCap. Last week, ETH hit an 18-month high of $2,353, with hopeful investors targeting a target of $3,500.

By Audy Castaneda

Binance Challenges the SEC and Argues Lack of Legal Basis and Non-existent Investment Contract, And Other News

Leonardo Perez
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Binance Challenges the SEC and Argues Lack of Legal Basis and Non-existent Investment Contract, And Other News

Binance challenges the SEC and maintains that it lacks authority to regulate exchanges that facilitate cryptocurrency trading.

Cryptocurrency exchange Binance is challenging the SEC and has asked the United States District Court of Columbia to dismiss the lawsuit filed by the Securities and Exchange Commission (SEC). Despite reaching a historic settlement of more than $4 billion with the United States Department of Justice last month, the crypto exchange led by Changpeng Zhao once again finds itself at the epicenter of a legal battle.

Binance’s position is supported by its claim that the SEC lacks the legal authority necessary to regulate exchanges that facilitate the buying and selling of cryptocurrencies. In a court filing filed on December 12, the platform maintained that at the time users acquired cryptocurrencies through its platform, an investment contract did not exist. They argue that this lack is sufficient reason for the court to dismiss the case presented by the SEC.

TRM Labs Reports Drastic Reduction in Cryptocurrency Hack Losses in 2023

TRM Labs, the leading blockchain intelligence firm, reveals that losses attributed to cryptocurrency hacks in 2023 have seen an impressive drop, exceeding 50% compared to the previous year, according to its report published on December 13. This notable decline is attributed to significant improvements in the security of the crypto industry.

The report details findings from TRM Labs’ research into the driving factors behind the pronounced reduction in cyberattacks. Hacking losses on crypto projects are reported to have dropped by around $1.7 billion in 2023, significantly lower than the $4 billion stolen from internet protocols in the previous year.

According to the report, three key factors may have contributed to the decline in hack volumes in 2023. Improved industry security measures, stepped up law enforcement action and closer industry coordination are likely to have fortified the cryptocurrency ecosystem and helped reduce the damage from attacks.

Finally, the report highlights that vigilance and adaptability remain crucial as the industry and law enforcement attempt to maintain this positive trajectory into 2024.

OKX DEX Experiences $2.7 Million Cryptocurrency Exploit

Security analysts report that an OKX decentralized exchange (DEX) aggregator has been the victim of a $2.7 million exploit. Possibly due to the leak of the DEX manager’s private key.

The OKX team has confirmed the incident, noting that an outdated smart contract on their DEX was compromised. The platform has taken immediate steps to protect user funds by revoking the permissions of the affected contract. And, it is collaborating with relevant authorities to trace and reimburse the stolen funds.

Key SEC Meetings Spark Bitcoin ETF Approval Optimism

Several prominent Bitcoin exchange-traded fund (ETF) applicants have recently held crucial meetings with the U.S. Securities and Exchange Commission (SEC), raising approval expectations as details of their products are finalized.

Bloomberg ETF analyst James Seyffart reported on December 13 that four applicants have held meetings with the SEC in recent days regarding the filing of their Bitcoin products.

BlackRock, in its third meeting with federal regulators on December 12, is seeking approval for its Bitcoin spot ETF. Grayscale, Franklin Templeton and Fidelity also met with the SEC last week, contributing to growing optimism over the approval of Bitcoin ETFs.

BlackRock has adjusted its application to make it easier for large banks to participate, introducing new stakes in the fund with cash, rather than relying solely on cryptocurrencies.

By Leonardo Perez

Ethereum’s Growing User Base Boosts Revenue Projections: Projected to Double to $5 Billion

Audy Castañeda
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Ethereum’s Growing User Base Boosts Revenue Projections: Projected to Double to $5 Billion

Bitwise anticipates that 2024 will be another important year for stablecoin expansion.

Bitwise Invest, an investment firm specializing in the crypto space, recently unveiled its early crypto predictions for 2024. These projections provide insight into the future of the cryptocurrency industry, highlighting major milestones and potential breakthroughs for the largest cryptocurrencies. like Bitcoin (BTC). and Ethereum (ETH), and exchanges like Coinbase.

Bitcoin Expected to Break Records

Bitwise’s first prediction suggests that Bitcoin will break previous records and trade above $80,000, setting a new all-time high. The company attributes this bullish outlook to two key catalysts: the imminent launch of a spot Bitcoin exchange-traded fund (ETF) in early 2024 and the planned halving of new Bitcoin supply by the end of April.

Bitwise expects Bitcoin spot ETFs to be approved and collectively become the most successful ETF launch in history. Interestingly, Bitwise also predicts that Coinbase, one of the largest cryptocurrency exchanges, will double its revenue, exceeding Wall Street expectations by at least 10 times.

The firm notes that Coinbase trading volumes typically increase during bull markets and anticipate a similar trend in 2024. Additionally, Bitwise highlights Coinbase’s successful launch of several new products that have gained traction in the market.

On the other hand, the investment firm predicts that more money will be settled using stablecoins compared to traditional payments giant Visa. Bitwise highlights stablecoins as one of the “killer apps” of cryptocurrencies and notes their remarkable growth from virtually nothing to a $137 billion market in just four years.

Ethereum Ready for a Breakthrough

The cryptocurrency market is very volatile and difficult to predict. However, experts have attempted to assess future changes in the price of Ethereum. Predictions from different analysts vary considerably. But they agree on one thing: ETH, as one of the main cryptocurrencies, will be quite successful in the market in the coming years.

Bitwise expects Ethereum revenue to more than double, from $2.3 billion in 2023 to $5 billion in 2024. The company attributes this growth to the growing number of users flocking to crypto applications. Bitwise emphasizes Ethereum’s potential as one of the fastest growing large-scale technology platforms globally.

Bitwise also anticipates a major Ethereum upgrade, dubbed EIP-4844, that could reduce average transaction costs to less than $0.01. This significant cost reduction is expected to pave the way for widespread adoption and development of innovative applications within the crypto ecosystem.

Bitwise’s bonus prediction suggests that by the end of 2024, one in four financial advisors will allocate funds to cryptocurrencies in their clients’ accounts. The firm anticipates greater adoption by financial advisors once Bitcoin becomes easily accessible and widespread.

Bitwise Invest’s crypto predictions for 2024 paint an exciting future for the cryptocurrency market. With expectations of a new all-time high for Bitcoin, the successful launch of Bitcoin spot ETFs, and revenue growth from industry giants like Coinbase and Ethereum, the crypto space is poised for significant advances in the coming years.

As of the current update, ETH is trading at $2,200, reflecting a 1.4% increase in the last 24 hours. This positive move follows a similar trend marked by BTC. However, Ethereum has seen a slight drop of 2.4% over the past seven days.

It is important to note that investing carries risks, so it is necessary to do some research before making any investment decision.

By Audy Castaneda

Tether, Issuer of USDT, Receives Negative Evaluation from S&P Global Ratings

Leonardo Perez
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Tether, Issuer of USDT, Receives Negative Evaluation from S&P Global Ratings

S&P Global Ratings released its assessment of stablecoins relative to a fiat currency. The results were not very good for Tether. In its report, S&P Global Ratings applied its analytical approach to evaluate the stability of a stablecoin on a scale from 1 (very strong) to 5 (weak). S&P Global Ratings evaluated Tether (USDT) with a score of 4 (limited).

S&P Global Ratings has announced the beginning of its stablecoin stability evaluation, which aims to assess the ability of a stablecoin to maintain a constant value compared to a fiat currency, famous companies such as Tether were included in the process. .

This would represent one of the first financial ratings oriented to the crypto ecosystem, and more specifically to the stablecoin ecosystem. For S&P, this advance is significant in the firm’s commitment to leverage its robust analytical and risk assessment capabilities to support not only traditional finance (TradFi) but also the growing universe of clients of blockchain technology, native decentralized finance and cryptocurrencies.

Tether: How Does the S&P Stablecoin Assessment Work?

In its report, S&P Global Ratings applied its analytical approach to evaluate the stability of a stablecoin on a scale from 1 (very strong) to 5 (weak). Eight of the major stablecoins have ratings ranging from strong to weak:

  1. Asset quality risks were noted. Including credit, market value and custody risks.
  2. The extent to which overcollateralization needs and settlement policies can mitigate these risks was analyzed.
  3. S&P then considered five additional areas: governance, legal and regulatory framework, redeemability and liquidity, technology and third-party dependencies, and track record.

S&P Does Not Rate Most Stablecoins Like USDT Very Highly

According to S&P’s analytical approach, for the eight stablecoins evaluated -including Tether-; Stability assessments range from 2 (strong) to 5 (weak) in terms of the ability to maintain its peg with a fiat currency.

The quality of the assets backing the stablecoin is a critical factor in the final evaluation. Weaknesses in other areas, including regulation and supervision, governance, transparency, liquidity and redeemability, and track record, contributed to stablecoins with lower evaluations.

Lapo Guadagnuolo, senior analyst at S&P Global Ratings, highlighted the following:

“As we look to the future, we see stablecoins becoming further integrated into the fabric of financial markets, acting as an important bridge between digital and real-world assets. However, it is important to recognize that stablecoins are not immune to factors such as asset quality, governance, and liquidity. Our evaluations consider elements that can cause them to detach themselves from their objective value.”

The stablecoin stability assessment comes from insights gathered through in-depth interviews with key participants in the TradFi and DeFi sectors. The launch includes public evaluations of eight leading stablecoins: DAI, FDUSD, FRAX, GUSD, USDP, USDT, TUSD and USDC.

What Would S&P’s Assessment Mean for Tether?

S&P Global Ratings evaluated Tether (USDT) with a score of 4, indicating limitations. USDT, launched in 2014, is the oldest stablecoin with the largest amount in circulation. The asset score of 4 indicates the lack of information on custodian entities. This highlights exposure to risky assets with limited information, which could have credit, market, interest rate or foreign currency risks.

Weaknesses in reserve management could indicate a lack of regulation and limited redeemability of USDT. The score could improve with more information and by moving towards less risky assets. Institutionalism is key, since the support of a government or regulatory entity could improve the rating, and the opposite would also be true.

By Leonardo Perez

BNB Chain Reveals Core Principles, Features, and Roadmap for Its Greenfield Decentralized Storage Network

Audy Castañeda
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0
BNB Chain Reveals Core Principles, Features, and Roadmap for Its Greenfield Decentralized Storage Network

The roadmap contains several exciting developments that combine Web2 performance and Web3 features to improve user experience.

BNB Chain, the community-driven blockchain ecosystem that includes the world’s largest smart contract blockchain, has published its technology roadmap for BNB Greenfield. The roadmap targets Web2 and Web3 developers and users by elevating performance, improving development experiences, and expanding their multi-chain capabilities.

BNB Greenfield’s recent updates contain extensive details on its roadmap, core principles, and features supporting AI adoption. BNB Chain has released an official technology roadmap for BNB Greenfield, a decentralized storage network for decentralized data applications (dApps) operating in the BNB ecosystem.

BNB Greenfield Roadmap Basic Principles and Features

BNB Chain created the Greenfield roadmap based on three design principles. The first is for the blockchain to be so high performing that it competes favorably with most Web2 offerings. This way, transactions and other on-chain activities are processed faster. While ensuring that the blockchain is high-performing, the second design principle – a simplified development experience – ensures that the Greenfield platform is easy to use and accessible.

Therefore, navigating BNB Greenfield will be easy for developers, regardless of experience level. The third principle is that while BNB Greenfield is a BNB Chain platform, it works as a multi-chain network. Developers could create multiple blockchains and design projects with seamless interaction between dApps on different blockchains. In addition to this interaction, users will also enjoy other cross-chain services.

The roadmap describes broad characteristics linked to each of these principles. For example, the high-throughput principle seeks to significantly improve transaction speed. With current download and upload speeds of 20 MB/s and 2 MB/s, respectively, the goal is to quintuple these figures.

Additionally, there is a package service for data management, which allows users to organize multiple data files into single blockchain objects for better processing.

The second principle offers enhanced storage features, such as sorting and organizing data using tags. These tags help users move and update large amounts of data without confusion.

For the third principle, the interesting feature is cross-string programmability. This gives smart contracts more flexibility as they currently do not allow others to use their resources. BNB Greenfield solves this problem by introducing a cross-chain permission module.

Artificial Intelligence (AI), Network Stability and Governance

All BNB Greenfield features lay the foundation for AI adoption. The decentralization, innovation and transparency enjoyed at BNB Greenfield are features that facilitate the adoption of AI and create an enabling environment for the integration of AI and Web3. The overall goal is to ensure that access and use of BNB Greenfield is easy and affordable for all stakeholders, including developers, storage providers, and regular users.

Storage providers will enjoy a “lightweight architecture,” with low computational requirements, a small device footprint on the network, and reduced power consumption. Despite all that, BNB Greenfield has a simple exit process for all storage providers who wish to withdraw their deposits and exit the platform.

The specific roadmap for BNB Greenfield will see the platform launch in the fourth quarter of this year, simplifying the exit process for storage providers and enabling features that allow smart contracts to function as “resource owners,” for a Strong permission control.

The next course of action is to improve storage provider performance while increasing upload and download speeds by 5x in Q2 and Q3 of 2024. Web3 AI adoption will follow and may extend beyond 2024.

By Audy Castaneda

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