A Deutsche Bank Analyst Points out that Bitcoin Is the Best Cryptocurrency

Alexander Salazar
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A Deutsche Bank Analyst Points out that Bitcoin Is the Best Cryptocurrency

Marion Laboure distinguished the characteristics of Bitcoin and the recent collapse of LUNA. The German analyst believes that the development of new regulations will boost the price of BTC.

Marion Laboure, a senior analyst at Deutsche Bank, recently said that no one should compare Bitcoin to the latest crypto assets. He made that distinction as a sign that banks are already grasping the significance of the pioneering cryptocurrency.

The German financial institution recognizes that it is impossible to compare Bitcoin with other cryptocurrencies.

The characteristics of the cryptocurrency created by Satoshi Nakamoto make it unique and unrepeatable. That decentralized crypto asset has a limited issuance and can circulate worldwide without intermediaries.

The recent collapse of Terra (LUNA), a cryptocurrency that continues to make waves, prompted Laboure to carry out the analysis.

The German financial expert commented that what happened with LUNA could highlight that cryptocurrencies are different. She told the financial news channel CNBC that some crypto assets are very new and risky.

Before the collapse of the Terra ecosystem, some analysts even said that LUNA was a Ponzi scheme that could collapse. That is something that investors could confirm over the last weeks.

Other ecosystems may face the same problems as LUNA, but that will not happen with Bitcoin. That proves the strength of the cryptocurrency with the largest market capitalization, comparable only to those coins that share its characteristics.

Bitcoin Has Limited Supply and Issuance

Among the advantages of the pioneering cryptocurrency, the executive also referred to its limited supply. She pointed out that more than 90% of Bitcoin is currently in circulation. The issuance of the 19 millionth coin occurred in April, reaching another milestone and serving as a reminder of its scarcity.

In that sense, Laboure indicated that a supply with a growing demand usually drives prices higher, as happened in 2021.

There only remain 2 million coins to reach the maximum issuance of 21 million of that protocol. The mining of the last bitcoin will occur within 120 years, another feature that distinguishes it from other cryptocurrencies such as LUNA.

According to data from Statista, the circulating LUNA went from 342 million units to 6.5 billion between May 7th and 14th.

The Development of Regulations Increases the Demand for Bitcoin

Laboure also believes that the development of regulations to regulate Bitcoin will increase its adoption in the future.

The German executive compared Bitcoin to diamonds, whose price largely depends on consumers. She reiterated that psychological factors, limited issuance, and regulations could determine the price.

Deutsche Bank thus provides Bitcoin with a professional validation, which several bitcoiners had already determined. Those prominent personalities include Michael Saylor, CEO of MicroStrategy, and Lyn Alden, financial analyst, and strategist.

Bitcoin is trading at around USD 28,876 and has accumulated a 1.1% gain over the last 24 hours. While its daily trading volume is above USD 20.23 billion, its market capitalization is about USD 549.92 billion, according to CoinGecko.

By Alexander Salazar

Some Aspects People Should Take into Account When Investing in Bitcoin

Alexander Salazar
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Some Aspects People Should Take into Account When Investing in Bitcoin

Exchanges overseen by the central bank relatively protect investor funds, so they must select those that best suit their needs. As investing in Bitcoin without understanding cryptocurrencies well is a risk, it is necessary to research before buying it.

Many accredited exchanges in the European Union (EU) and international ones offer Bitcoin in Spain. However, many investors still have doubts about how they should operate on those digital platforms.

In addition, there are various payment methods to buy Bitcoin and other crypto assets. That implies that they can be somewhat confusing for those just starting.

Users usually choose to use a specific payment method as their customary way of paying. One of the platforms most widely used for buying products and paying for services worldwide is PayPal. They have joined many banks and digital payments companies that include Bitcoin in their services.

Spain has financial markets and mature regulations that allow citizens to buy and sell Bitcoin safely. Contracts with exchanges overseen by the governing agency of the European country relatively protect their investments.

Investors must first select the exchange platform that best suits their needs to start investing in Bitcoin. Each has its requirements, various transaction fees, withdrawal limits, payment methods, and verification processes.

The Advantages and Disadvantages of Investing in Bitcoin in Spain

The supply from miners and the demand from buyers are the main drivers of the price of Bitcoin. Despite the high risk, those supply and demand dynamics usually generate significant profits.

The decentralized storage of the blockchain in several computers prevents hackers from accessing the entire chain. For that reason, the information kept on that platform is 100% safe.

Bitcoin has a limited issuance which prevents it from getting out of control, as with fiat money. Some currencies like BTC have a general limit, an intelligent approach that keeps inflation at bay and protects investor funds.

However, it takes investors time and effort to understand cryptocurrencies, especially if they are not digital natives. The concept of cryptocurrency and  blockchain may seem too complicated or alien, so trying to invest is a risk.

The Relevance of Doing Some Research before Investing in Bitcoin

Concerning learning how to buy Bitcoin, one of the biggest challenges for investors is not to fall into exaggeration or fanciful rumors. Cryptocurrencies have quickly gained prominence in the portfolios of many retail and institutional investors. However, analysts continue to warn investors about their volatile nature and unpredictability.

Therefore, those who decide to invest in the cryptocurrency market have to do previous research. Investors must learn everything they can before buying Bitcoin, making the difference between making profits and suffering losses. The best decisions come from studying the behavior of the price before risking money on it.

Bitcoin is trading at around USD 28,930 and has accumulated a 0.7% gain over the last 24 hours. While its daily trading volume is above USD 13.99 billion, its market capitalization is about USD 551.31 billion, according to CoinGecko.

By Alexander Salazar

Russian Government Discusses Use of Digital Assets for International Payments

Jenson Nunez
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Russian Government Discusses Use of Digital Assets for International Payments

According to a Russian representative, the use of digital assets is an issue that requires a lot of attention. They talk about using digital assets to encourage Russia’s foreign trade.

Russia’s high government opened a discussion panel to talk about the possibility of using digital assets, such as bitcoin (BTC) and other digital assets, to make international payments.

This decision arrived due to the liquidity “limitations” of its traditional payment structure, which got financially punished due to the ongoing conflict in Ukraine.

This information comes from the director of the Financial Policy Department of the Russian Ministry of Finance, Ivan Chebeskov, during a discussion on the United Russia network.

The Russian official said the main problem with using such digital assets as barter transactions for international payments is the subject of debate. If the digital currency gets acknowledged as property within the framework of barter transactions with said digital currency, there is a possibility to execute financial operations on foreign economic activity.

The representative explained that this issue deserves a lot of attention, recognizing that Russia currently has limited possibilities for settlement in the traditional payment archetype.

After the invasion of Ukraine, the Russian financial structure and the economy itself went through a period of financial punishments that, among other things, led to the expulsion of several Russian banks from the SWIFT payment structure, which allowed them to enter the international currency market.

Not Enough Details

Although the official spoke in favor of using these currencies to carry out international payments, it is unclear where this digital asset would come from or how they would pay using them. Neither with whom would they negotiate or if there would be nations or entities willing to receive these currencies as payment.

On the other hand, Russia became a nation that has gradually accepted the use of digital assets, partly due to the economic crisis generated by the invasion of Ukraine. Although the Putin government has sat down to discuss this, there is deferral when considering whether the space could assist Russia in its quest to avoid these prohibitions.

What Ivan Chebeskov highlighted only shows the Russian government’s interest in merging bitcoin and digital assets into the economic system. It is a plan that has been in the works for a reasonable amount of time, as suggested by the Prime Minister of that country, Mikhail Mishustin.

Thus, there is nothing left but to wait for Russia to finally accept bitcoin in its portfolio, which, far from discrediting the asset, would instead help strengthen the argument that BTC can serve as a tool to meet the agreements and commitments between nations economically.

By: Jenson Nuñez

The Bitcoin Price Would Go Up, and there Could be a Bear Market Rally

Jenson Nunez
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The Bitcoin Price Would Go Up, and there Could be a Bear Market Rally

Bear Market Rallies are everyday events in bear markets. In the bear market of 2018, the price of bitcoin marked at least ten deceptive rallies.

Many users acquire BTC with the sole intention of generating quick incomes that might become profits. Still, when users have this expectation set on a sustained uptrend, the market crumbles down and absorbs everything with it, reaching prices even lower than they had been trading in previous weeks.

The term Bear Market Rally is a usual behavior among stock markets when they go through a depreciation stage, such as Bitcoin and the market are currently going through.

This phenomenon had happened in the bitcoin community since the last long winter that digital assets faced in 2018 when in the middle of the bear market, bitcoin reported at least ten bullish rallies of this type or more.

In these price movements, the cryptocurrency experienced a recovery of up to 98% of the value it had had months before the market crumbled down. However, the growth did not last, and this rally brought a correction that took it back to declining prices.

Bear Market Rallies are wild rebounds in a currency’s cost, which can mark double-digit growth. However, since it is a fluctuation that happens during a bear market, they usually do not extend their duration more than a few days or even months.

Due to this behavior, they could get described trap, where the potential that traders see for the price to continue rising, while the price crashes sooner or later.

These rallies represent a threat to users who have little time in the market. This situation also affects those who show too much optimism, mainly because the value of an asset starts reaching higher peaks in the middle of the bear season. Hence, newbies defend that the worst is over and that from now on, it will begin a new fluctuation that could lead to a new high peak.

This situation, in general, affects small investors. When the market lives in Bear Market Rally, the most expert traders and institutional investors take control over this moment to gather enough income.

On the other hand, the new traders or newbies who acquire these items face losses. When the downtrend starts again, prices reach lower peaks than before the rally because the drop causes too much fear among investors who just entered.

By: Jenson Nuñez

Huobi Purchased Bitex Exchange is about to Set an Expansion over Latin America

Jenson Nunez
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0
Huobi Purchased Bitex Exchange is about to Set an Expansion over Latin America

Huobi revealed the acquisition of Bitex, which has a network headquartered in Argentina, Chile, Paraguay, and Uruguay.

The digital market continues falling into a void due to various political-economic factors that managed to crush the financial world in general and the internal crisis that got empowered after the collapse of the Terra space. However, this situation has not prevented investments from happening, as many are betting on a promising future for crypto assets.

Huobi Global, the world’s third-largest digital assets exchange when it comes to trading volume, announced that it purchased the Bitex exchange, one of the first regional crypto exchanges based in Latin America. According to the EFE agency, the terms of the agreement remain unrevealed and got not disclosed.

Bitex counts on platforms in Argentina, Chile, Paraguay, and Uruguay. Huobi Global plans to integrate the operations of the Bitex exchange with the Huobi Global platform, which will allow users in Latin America to trade all digital assets available on Huobi Global.

However, Bitex will not vanish after the integration but will retain its brand and keep working independently.

Adoption in Latin America

With almost 665 million people, Latin America ranks fifth worldwide in digital asset acceptance and captures between 8% and 10% of global digital asset activity, reports EFE. The region saw crypto usage growth by 1,370% from 2019 to 2021, with Venezuela and Argentina reaching the 7th and 10th in the 2021 Global Cryptocurrency Adoption Index.

Since Huobi Group made its first steps in the Latin American market in 2019, remarkable growth got experienced, and the entity showed optimism about prospects for the Latin American region.

Caleb Lim, the current senior investment manager at Huobi Group, said that only about half of the population in Latin America has bank accounts. Through this purchase, Huobi Global hopes to satisfy this needing for alternative financial features through blockchain technology.

On the other hand, the CEO of Bitex, Francisco Buero, said Bitex got created to shelter the value of users’ money following the major financial crises in Latin America. He expressed that having grown that way after eight subsequent years of successful activities, Bitex’s partnership with Huobi Global will support their expansion and improve the service aimed at clients.

Bitex will encourage this expansion by allowing users to access a more extensive range of digital assets on the trading network.

Huobi in Latin America

Huobi Group consolidated its first incursion into Latin America with the release of Huobi Argentina in 2019, attracted by the increasing demand for products linked to crypto and other services in the market. In 2020, Huobi Argentina implemented fiat-crypto pairing between the Argentine peso and Bitcoin (BTC) and Tether (USDT). Last year, it also added five payment methods to improve the trading experience for users and make the liquidity of its market growth.

By: Jenson Nuñez

Ether Miners Must Choose between Migrating to another Cryptocurrency and Selling their Equipment

Alexander Salazar
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Ether Miners Must Choose between Migrating to another Cryptocurrency and Selling their Equipment

Ethereum has planned to replace PoW with a PoS consensus algorithm in its protocol from its inception. Ethereum Classic has not been among the most profitable cryptocurrencies to mine despite its long history.

All miners on the Ethereum network will have to decide between migrating to another network and selling to abandon that activity. Moving from proof-of-work (PoW) to a proof-of-stake (PoS) consensus algorithm would eradicate ETH mining.

The Ethereum network usually gives better returns to those who mine with graphics processing units (GPU). For that reason, Ether has been the cryptocurrency of choice in that niche for a long time.

Vitalik Buterin always sought to validate transactions with the PoS consensus algorithm but recognizes that the best for Ethereum was to start with PoW. The co-founder of that network admitted that mining had allowed a better distribution of ETH.

Not using PoS as a consensus algorithm from the beginning or not making the transition earlier complicates the process. That situation has led to delays in the progress of the project.

Ether Miners Must Decide between Migrating and Selling

Upon implementation of Serenity, the update to complete the transition from PoW to PoS, miners will have to sell their equipment and stop mining. However, some might see it as an option, depending on the profitability of other coins they can mine with GPU.

The role of profitability in deciding whether or not to continue mining a cryptocurrency is essential. A miner recently commented that he is considering stopping his ETH mining rigs due to the low profitability he achieves.

Many miners see the high cost of electricity and the falling cryptocurrency market as a deadly combination. However, these workers do not stop their activity permanently but wait for profitability to be positive again.

Although the context is different, miners who prefer to abandon the activity benefit, as happened in China. The ban on cryptocurrency mining by the Chinese government led many miners to leave the country. However, others preferred to sell their mining equipment and leave the activity aside.

Options for Ether Miners Choosing to Migrate

The advantages of mining Ether include using graphics cards, which allow migrating to other networks due to their versatility.

Ether is the most profitable cryptocurrency for GPU miners. The cryptocurrency has always led the results due to its profitability, regardless of the graphics processing unit models.

Although Ether is the most profitable GPU minable cryptocurrency, some miners consider stopping their rigs, hoping for higher profits. However, the profitability of that activity grows in places with a cheap electricity service or where miners generate their energy.

Other networks where miners can continue to operate after the transition from Ethereum are Conflux, Sero, Cortex, Zano, and Ravencoin. Older cryptocurrencies like Ethereum Classic and Aeternity are not in the top five for profitability to mine. The drop in the price of those crypto assets in the market may have led to that situation.

By Alexander Salazar

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