Middle East: Opportunity for Argentina in Blockchain Business

Audy Castañeda
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Middle East: Opportunity for Argentina in Blockchain Business

The Argentine Chamber of Software seizes an opportunity to export Blockchain technology to the Middle East.

Blockchain-based technological solutions continue to advance in the world. Recent news refers to a trade mission from Argentina, in which the president of the Chamber of the Argentine Software Industry (Cessi), Sergio Candelo, highlighted the “project possibilities” of the sector that emerged in the United Arab Emirates (UAE), such as part of the trade mission headed by Foreign Minister Santiago Cafiero.

Candelo’s Assertions

Candelo assured that it is “a place that the sector has to start analyzing and putting it on the radar” since there are “many investment funds, a lot of money, many possibilities and requirements in many types of technologies such as Blockchain, Internet of things (IoT) and greentech”.

In search of new markets for a sector that is clearly growing, Canelo expressed that the industry’s goal is to reach, by 2031, exports of USD 10,000 million and 400,000 new jobs. “The Middle East area is not a large sector where our industry exports, but what we are seeing is that it has great potential, and from the Chamber we are going to bring a lot of information so that all companies that are interested can join and see this market as an additional alternative”, he explained.

The representative of the software sector recognized the sustained growth of the sector that “went from exporting some 20 to 25 million dollars in the 2000s to almost 2,000 million”, and asserted that “achieving new markets” and “having more people dedicated to the industry” is key to its continued expansion. “What we have seen is a lot more people in the last two years who are thinking of working in our sector and the software industry could be a key sector for transformation in Argentina,” Candelo concluded.

On the other hand, Renata Rodrigues, Global Marketing Manager at Paxful, in a column for the newspaper Perfil, stated that, “the most surprising thing is that as the influence of Bitcoin grows in Latin America and in the world, it is possible to perceive how capital from large investors no longer promotes this movement. Instead, much smaller communities are unlocking the true power of Bitcoin in new and unexpected ways.”

Something to Remember

Everything related to the software industry is an important segment for Argentina. In the private sector, there are 6.22 million people employed, and the average salary ($130,350) is located in the 8% of the best salaries in the private sector.

It is worth noting that one of the most important features of Blockchain and cryptocurrencies is the decentralized and independent model of the banking system. In this sense, the ecosystem depends entirely on the individual and autonomous interaction of the people who decide to be part of it, allowing an alternative and safe form of participation in the markets that have already adopted this modality. It is especially effective in countries with highly fluctuating economies, such as in LATAM, as well as for investors who are committed to technological advances that can open up new financial possibilities in the future.

By Audy Castaneda

Bitcoin Outperforms COIN Stocks By 20% since Coinbase IPO

Audy Castañeda
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Bitcoin Outperforms COIN Stocks By 20% since Coinbase IPO

Investing directly in Bitcoin turned out to be a better bet than owning shares of Coinbase since its IPO.

Buying a Coinbase (COIN) stock to gain indirect exposure to the Bitcoin (BTC) market has been a poor strategy so far compared to simply holding BTC.

In particular, COIN is down almost 50% to nearly $186, if measured from the opening rate at its IPO on April 14, 2021. By comparison, Bitcoin outperformed Coinbase stock by posting fewer losses on the same period: a little over 30%, since it fell from almost $65,000 to around $41,700

What is affecting Coinbase?

However, the correlation between Coinbase and Bitcoin has been largely positive to date, suggesting that many investors view them as assets with similar value propositions. This is mainly due to the buzz about how COIN could become an easier onboarding experience for investors in the cryptocurrency sector, as compared to buying Bitcoin, Ether (ETH), and other digital assets.

Nevertheless, the COIN product is facing increasing competition with the arrival of exchange-traded products (ETPs) based on cryptocurrencies, mining stocks, and similar companies listed on Wall Street indexes. This may have reduced its demand as a reference asset to gain exposure to cryptocurrencies.

Furthermore, COIN faces downside risks due to its depressive forecasts for FY22. Coinbase stated in its latest earnings report that cryptocurrency volatility could turn 2022 into an unprofitable year, noting that its EBITDA losses adjusted could be around $500 million if their monthly transaction users are at the low end of their target range.

Jere Ong, main analyst and founder of JR Research, noted that 96% of Coinbase’s total revenue in Q4 2021 came from fees charged on retail transactions, highlighting the “inherent weakness” of its business model. We can read extracts from his report, “We believe it offers a short-term buying opportunity for speculative investors. But we don’t encourage investors to hold COIN shares long-term unless they have very high conviction of its execution.”

Bitcoin Risks are Completely Different

Bitcoin is a different beast when compared to the stock of a centralized company like Coinbase. Absolute scarcity, censorship-resistant decentralized ledger, and gold-like properties as a potential hedge against inflation in the digital age are just some of the concepts driving the price of BTC today.

Davinci Jeremie, a popular influencer, posted on Twitter that, “With 7.5% inflation and real inflation numbers at 19.5% (shadowstats) the fed is doing a great job! Just 100x more, and they will be at Paul Volcker’s level of 30% interest rates!!! Got Bitcoin?”

As a result, analysts and strategists predict that Bitcoin will go anywhere from zero to “millions” per one BTC, depending on who you ask.

On the other hand, most stocks with exposure to cryptocurrencies have also suffered more compared to Bitcoin. Namely, Nasdaq-listed mining companies Canaan, whose share value fell nearly 80% year-over-year, and Riot Blockchain, which dropped 67.55% within the same period.

By Audy Castaneda

Ethereum Balance on Crypto Exchanges Falls to Lowest Levels Since 2018

Audy Castañeda
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Ethereum Balance on Crypto Exchanges Falls to Lowest Levels Since 2018

Nearly $1.61 billion worth of Ethereum tokens has exited crypto exchanges so far this year, ahead of the potential full transformation of its protocol to proof-of-stake in the summer.

The amount of Ethereum’s native token, Ether (ETH), held on cryptocurrency exchanges has fallen to its lowest levels since September 2018, signaling the traders’ intention to hold the tokens in hopes of a price rally in 2022.

Notably, nearly 550,000 ETH tokens — worth around $1.61 billion — have left centralized trading platforms so far this year, according to data provided by Glassnode. The massive outflow has reduced exchanges’ net balance of Ether to 21.72 million ETH, down from its all-time high of 31.68 million ETH in June 2020.

The Largest Weekly ETH Outflow since October 2021

Interestingly, more than 30% of all Ether withdrawals from exchanges witnessed in 2022 appeared earlier this week, data from IntoTheBlock shows. In detail, more than 180,000 ETH left cryptocurrency trading platforms on March 15, bringing the value of the weekly outflow to just over $500 million as of March 18.

Data from Chainalysis showed similar readings, revealing that Ether tokens may have exited exchanges this week at an average of around 120,000 per day, a bullish sign. Quoted from Chainanalysis, “Assets held on exchanges increase if there are more market participants willing to sell than buying and if buyers choose to store their assets on exchanges.”

IntoTheBlock provided a similar bullish outlook while citing a fractal from October 2021 that saw the price of Ether rise 15% ten days after the Ethereum network detected massive withdrawals of ETH from centralized cryptocurrency exchanges.

Ethereum Supply Crisis is Underway

The surge in Ether withdrawals from exchanges this week coincided with around 190,000 ETH moved to Lido’s “stETH liquid staking” pools, IntoTheBlock noted.

To recap, Lido is a non-custodial staking service that allows users to overcome the challenges associated with staking on the Ethereum 2.0 Beacon Chain, including the requirement to stake a minimum of 32 ETH or its multiples. Furthermore, Lido proposes to solve the problem of capital efficiency by issuing stETH, the tokenized version of staked ETH.

In the last 30 days, Ether holders have added more than 1 million ETH to the Ethereum 2.0 contract. In addition, as the protocol prepares to switch entirely to proof-of-stake in the summer – in the wake of its “Merge” earlier this week on the Kiln testnet – the likelihood of more Ether tokens running out of active supply has increased.

ETH Price Rebound Continues

The optimism surrounding Ethereum’s move to proof-of-stake has sent Ether into bounce mode this week.

ETH price is up more than 17% so far this week to nearly $3,000. Interestingly, the bullish pullback originated at a technical level – rising trend line support with a recent history of capping Ether’s bearish outlook.

As Cointelegraph previously reported, Ether could clip its gains due to another technical level, this time a descending trend line resistance that has also been instrumental in capping its upside attempts since January 2022.

Together, these trend lines appear to have formed a continuation pattern called a symmetrical triangle, indicating that Ether will likely go in the direction of its previous trend, i.e. down. For now, ETH could pull back towards the support trend line of the triangle on a pullback from its resistance.

By Audy Castaneda

Venezuela and the United States of America Could Re-take Again Negotiations with Oil, and the Crypto Market Would not get Harmed

Jenson Nunez
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Venezuela and the United States of America Could Re-take Again Negotiations with Oil, and the Crypto Market Would not get Harmed

Selling such a vital good like oil to the United States of America would bring many benefits, but the industry must get built from scratch. Specialists say the cryptocurrency market should not get harmed by this event.

The economic scenario of Venezuela has been developing significant changes for citizens. These changes are the more excellent circulation of foreign currency, better payments than in previous years (at least in the private sector), and the exchange rate balance.

These changes became crucial now that hyperinflation stopped keeping Venezuelans on edge about the new price they will pay to access the most basic goods.

The element that is enabling this new alternative for Venezuela is war. The wave of sanctions and financial punishments against Russia due to the military clash in Ukrainian territory has made the United States re-take its stance regarding Venezuela as a possible provider.

An official delegation from the US government held conversations with Nicolás Maduro’s administration intending to find new ways to re-take the sale of Venezuelan crude to the United States of America. This action would lower costs for both nations refresh the Venezuelan economic system with healthy oil revenues.

The Joe Biden administration has denied that they are directly negotiating crude oil from Venezuela. According to White House spokeswoman Jen Psaki, the energy issue was on discussion, the White House acknowledged, although it later denied that there is an active negotiation.

Venezuela and Low Oil Production

Various experts agree that the possibility of resuming crude oil negotiations with the United States of America could be potentially positive for Venezuela. However, they also agree that carrying out this mission is not that simple.

A local industry that once generated more than 3 million barrels a day crumbled down as low as 400,000 barrels a day last year. And although it has recovered its previous rates by producing at least 860,000, this figure is still far from getting positioned as a balanced level.

The president of the Venezuelan Oil Chamber, Reinaldo Quintero, explained in a local media interview that he does observe an increase in crude oil production, even up to the level of 1,200 million barrels per day. And with this panorama, the country would handle a significant part of the energy sector’s demand in a market with such needs.

Leaving aside the low production rates, experts clarify that the doorways might be re-opening to negotiate oil with a country such as the United States of America would be advantageous for the generation of income through traditional exportation for the country.

By: Jenson Nuñez

Analyst Mike McGlone Believes Bitcoin Is Superior to Gold and the Stock Market

Alexander Salazar
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Analyst Mike McGlone Believes Bitcoin Is Superior to Gold and the Stock Market

The analyst predicted the BTC price would initiate a parabolic rally in 2021 when it reached a new all-time high near USD 69,000. He considers the drop in the value of cryptocurrencies will be temporary, and now is the best opportunity for long-term investors.

The measures taken by the Federal Reserve (Fed), the growing inflation, and the war have affected the economy worldwide. Bloomberg analyst Mike McGlone believes risky assets may have a pullback, and Bitcoin may achieve another maturation milestone this year.

Bitcoin still outperforms other assets amid a global crisis deepened by the conflict between Russia and Ukraine. Although the price is far from its all-time high, expectations are encouraging.

McGlone recently compared Bitcoin to gold and stocks, showing a clear superiority of the pioneering cryptocurrency since mid-2020.

The Bitcoin (BTC) price has just exceeded USD 40,000, making specialists optimistic about it benefiting from the variable international context in the short term.

BTC is trading at around USD 41,188 and has accumulated a 6.0% gain in the last week. Its daily trading volume is above USD 16.85 billion, and its market capitalization is about USD 782.14 billion, according to CoinGecko.

Bitcoin Will Outperform Gold, Mike McGlone Says

McGlone shared a graph showing the flagship cryptocurrency has outperformed gold, the S&P 500 total return index, and the growth in the US dollar supply.

In November 2020, the analyst predicted that the BTC price would exceed USD 20,000 and initiate a parabolic rally in 2021. The value of the cryptocurrency reached a new all-time high near USD 69,000 before undergoing a significant correction.

Galaxy Digital CEO Mike Novogratz believes that the Fed has not even started raising rates or extracting liquidity from the system. Throughout the year, analysts thought the Bitcoin price would risk between USD 30,000 and USD 50,000 to the upside, not the downside.

Novogratz also said he would be wrong about the adoption cycle if the price of Bitcoin were not at USD 500,000 within five years.

Bill Barhydt, the CEO of Abra, shared his outlook in the mid/long term for the price of BTC. In that way, the information technology expert revealed that he saw it at USD 250,000 in the future.

Apple co-founder Steve Wozniak said that Bitcoin was a technological miracle and a unique mathematical formula, predicting it will hit USD 100,000.

Now Is an Excellent Opportunity for Long-Term Investors to Buy Bitcoin

The Bloomberg analyst considers that the drop in the value of Bitcoin and the leading altcoins will be temporary. For that reason, now is the best opportunity that those that invest thinking of the long term will have in a long time.

McGlone commented that markets, including cryptocurrencies, are currently undergoing a significant correction. Therefore, he thinks it is convenient to take advantage of this decisive moment and invest in those spaces.

Finally, he believes that this would be an excellent opportunity for long-term traders to invest in Bitcoin. Everybody will remember this historical moment as a turning point.

By Alexander Salazar

Factors that Make Cryptocurrency Mining Profitable in Venezuela

Alexander Salazar
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Factors that Make Cryptocurrency Mining Profitable in Venezuela

Miner Alejandro Quiles believes that the low cost of electricity allows this activity to be very profitable in Venezuela. Alexis Lugo considers it necessary to obtain a license from SUNACRIP for the industry to grow and consolidate in the country.

The fluctuations in electrical energy cause anxiety in Venezuela daily, as it reminds citizens of the 2019 general blackout. Curiously, the profitability of mining Bitcoin (BTC) in the South American country is possible for those who do it industrially.

Alejandro Quiles, who mines cryptocurrencies with his brothers, commented that this activity is highly profitable in Venezuela. He explained that the cost of electricity contributes to this since they only pay between USD 10 to USD 12 for the service monthly.

Quiles said that Venezuela is a country where people still enjoy the low cost of electricity. He pointed out that the National Electric Corporation (CORPOELEC) established a rate of USD 0.010 KW/h at the industrial level.

The specialist specified that residential mining is illegal, according to Venezuelan law, and cannot make anyone a millionaire. José Parra, who has a mining company, agrees with Quiles that this activity is profitable at a macro level due to the competitive electricity rates.

Bitcoin Mining Is the Most Profitable Industry in the Country

Venezuela has been home to large industries and companies, such as the oil company, and has many natural resources that it can exploit. However, Alejandro Quiles says that cryptocurrency mining is the industry that produces the most money.

He believes that converting electricity into money allows Bitcoin mining to be the most profitable niche in Venezuela. He points out that such activity can boost the economy, which experiences high inflation.

Quiles also agrees with José Parra that it is possible to obtain 300% more profits in Venezuela than in other countries of the region. However, this may vary depending on the devices used and the number of operational ones.

The expert estimated profits of up to USD 60,000 per month, in the case of mining with old equipment. Discounting operational expenses and the payment to employees, mining companies keep over 60% of monthly production.

Cryptocurrency Miners Must Fall into Centralization to Operate in Venezuela

Both miners highlight that mining Bitcoin and other currencies is profitable in Venezuela. However, they point out that it is essential to register with SUNACRIP, the only entity authorized to regulate cryptocurrencies in the country.

Alejandro Quiles says that miners must obtain a license from SUNACRIP even though it is a cumbersome process. Otherwise, the authorities could seize their equipment, and getting it back would be extremely difficult.

Alexis Lugo, another cryptocurrency miner from Caracas, said it was right to get a license and pay taxes to the state. He believes that this would allow the industry to grow and consolidate in Venezuela.

Some miners prefer to operate undercover since they must invest around three months complying with the requirements of SUNACRIP. However, Quiles says it is worth it because mining would grow further in Venezuela if all operators had a license.

This Venezuelan miner recognizes this goes against the principles of Bitcoin, which call for decentralization and the non-interference of states. He considers that the regularization points to the electrical service, essential for mining, for which he sees it necessary to give in to the authorities.

By Alexander Salazar

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