Ray Dalio spoke about how valuable is all the technology, security, and adoption rate of a digital asset such as Bitcoin. He believes that bitcoin can get banned in countries that see it as a threat to the government.

The multi-million dollar investment from the United States of America, Ray Dalio, once again expressed his thoughts about the cryptocurrency with the largest market capitalization, Bitcoin (BTC), and the technologies around crypto-assets.

In an interview with MarketWatch, Ray Dalio said it was such an achievement for Bitcoin due to the development of its network, not being hacked, making it work, and facing its adoption procedure.

Despite having been doubtful of bitcoin for a long time, in the report, Dalio reaffirmed the change of mind he has been manifesting throughout the last year. He took this time to express that the cryptocurrency has earned a bunch of credibilities; this credibility could generate a revolution.

Ray Dalio Sees Bitcoin as the Best Alternative to Beat Inflation

The billionaire confirmed that he is still part of his investment portfolio in bitcoin. The chairman strengthens his conception of cryptocurrency as gold since he considers it currently works as a store of value that rivals the dollar’s role, as he has said on past occasions.

Ray Dalio also spoke about the importance of making investments to avoid losing money because of rising prices. He said he’d like to help people understand all the reasons why cash is so bad. This situation applies to Latin America and the United States of America, which is a country that is currently experiencing the highest inflation in the last 39 years.

Dalio said that citizens think the safest investment is cash but they do not pay attention to the inflation-adjusted return. Like other investors such as Tim Draper, he suggests not keeping all savings in cash. He pointed out that is always better to have a liquid and diversified portfolio of assets if it is balanced.

Bitcoin May Get Banned in Some Countries that See it as a Threat

During the interview, Ray Dalio highlighted that bitcoin has some problems. He assured that, if Bitcoin is a threat to governments, it would probably get banned in some places when it becomes relatively attractive. These events depend on the leader of the state and his strategies to boost the economy of his country.

Ray Dalio recently explained this issue about two countries that took opposite positions concerning cryptocurrencies. On the one hand, El Salvador, which firmly encourages its adoption, and, on the other, China, which has put various prohibitions on the industry during the year.

The 72-year-old investor sounded convinced of his reflections and said the bitcoin’s progress would get destroyed by heads of state if it achieves massive growth. He also aimed his thoughts at China and India, where, according to him, the first signs of what will end up are already brewing, as he pointed out during an interview with the CNBC television network.

By: Jenson Nuñez

India is about to postpone the highly anticipated crypto bill in the legislature, given that it is not ready yet and is close to the end of the year.

The cryptocurrency bill is unlikely to get introduced during the current parliament session as the government has yet to finish the details of the legislation, people familiar with the matter told Bloomberg.

The administration of Prime Minister Narendra Modi wants more consultations on the matter before finishing the legislation that would rule digital currencies in the country. There is not enough time as the current session reaches its end this Thursday, December 23; The people asked not to get identified as the discussions are private. Furthermore, the Cabinet has not passed the proposed legislation.

Likewise, the calendar for the last week of the parliament session removed the cryptocurrency bill from the list of businesses revealed on its website. However, the government could still introduce the legislation through an ordinance in periods of parliament inactivity.

The bill intends to help the central bank create an official digital currency. On the other hand, the legislation sought to set a ban on all private cryptocurrencies in India. However, it allows various exceptions to encourage the underlying technology of cryptocurrencies and their utility.

On the other hand, right after the information got revealed, Subhash Garg rejected the ban of private cryptocurrencies with an argument that defends the action as a simple misunderstanding. The former minister highlighted the enormous potential of cryptocurrencies and Blockchain technology. Subhash Garg is the creator of the bill.

India and Crypto

India accounts for nearly 1.4 billion people and is one of the fastest-growing markets for cryptocurrency trading worldwide, but the country has a complicated relationship with virtual currencies.

The central bank had prohibited crypto transactions in 2018, but the Supreme Court struck down the restriction last year. And in May of this year, the body assured that the path was only regulation, not prohibition.

Calls for more harsh rules increased amid concerns that an unregulated environment could draw more investors into volatile assets. The crypto market in India has increased at least 641% in June 2021, according to an October report from Chainalysis.

The bill got rewritten to make it more current concerning current legislation, said previously the Minister of Finance, Nirmala Sitharaman, who has also expressed about Bitcoin that a futuristic thing cannot get excluded. Positions between different bodies come and go. While the Reserve Bank desired to ban cryptocurrencies, the Executive considers cryptocurrencies a financial asset.

Crypto and the Blockage

Among the positions against crypto, the most recent is the position of India’s Minister of State for Foreign Affairs, Meenakshi Lekni, which said that cryptocurrencies should face a blockage if they serve illegal purposes. This position appeared at the same time that the Indian government was making changes to the crypto bill.

The minister moved on by saying that cryptocurrency platforms and exchanges get owned by a group of people trying to evade taxes, taking money out of the country without benefiting the country where they produce this wealth.

By: Jenson Nuñez

DeFi and transactions have driven the number of those tokens higher, and more than USD 150,000 already support them. A leading entrepreneur in that sector predicts that there will be mass adoption of stablecoins for payments in 2022.

An increasing capital volume enters the cryptocurrency market for decentralized finance (DeFi), trade on exchanges, and derivatives trading. The record creation of stablecoins occurring over the past year has allowed inferring that.

The tokens having a price tied to the value of another asset like the US dollar, increased by 388% in the last year. From a total of USD 29,000 million, now more than USD 150,000 million back those crypto assets.

The best-known stablecoins are Tether (USDT), USD Coin (USDC), DAI (DAI), USDP (USDP), and Binance USD (BUSD). Even though the latter dominated that field over the years, that trend began to drop in 2021.

USDT started the year with slightly over USD 21 billion dollar-backed units and ended it with more than USD 81 billion. In other words, the volume of that stablecoin almost grew fourfold.

However, the growth in the volume of USD Coin was much higher. More than USD 4,000 million worth of that stablecoin were locked in January 2021, while the amount already exceeded USD 41,000 million in December. In other words, it grew ten times compared to the 12 previous months.

Likewise, BUSD, the stablecoin issued by cryptocurrency exchange Binance, exponentially increases from 1 billion to more than 14 billion units throughout the year.

Despite that, USDT continues to be the king of stablecoins regardless of recent complaints. Tether Holdings Limited, the issuer USDT, allegedly does not support investor assets as claimed. At the same time, the US Congress analyzes the possibility of regulating those cryptocurrencies.

Investors Want to Find a Place Where to Put Their Capital

During the analysis of cryptocurrency markets, the exponential growth of stablecoin issuance can be a crucial factor. Their nature and the role they play in the ecosystem create that situation.

The primary use of stablecoins is that of reducing volatility when making transactions. In that way, they become helpful instruments on centralized and decentralized exchanges and in decentralized finance protocols.

The growing amount of funds for issuing those cryptocurrencies indicates a significant flow of capital into the crypto world. Although many have not yet settled on any of the above options, they are ready to jump into the field when investors deem appropriate.

Likewise, derivatives markets are also contributing to increasing demand for those tokens. Many futures contracts set the price of crypto assets in stablecoins to avoid discrepancies. That is because there are significant variations in the value of other cryptocurrencies like Bitcoin (BTC) and Ether (ETH).

The CEO of Circle, Jeremy Allaire, highlights that the massive adoption of stablecoins to accept payments can enhance that growth in 2022. That firm is one of the developers of USDC, the second stablecoin with the highest capitalization worldwide. For that reason, his opinion carries a lot of weight to predict what next year will bring to the sector.

By Alexander Salazar

DeFi and transactions have driven the number of those tokens higher, and more than USD 150,000 already support them. A leading entrepreneur in that sector predicts that there will be mass adoption of stablecoins for payments in 2022.

An increasing capital volume enters the cryptocurrency market for decentralized finance (DeFi), trade on exchanges, and derivatives trading. The record creation of stablecoins occurring over the past year has allowed inferring that.

The tokens having a price tied to the value of another asset like the US dollar, increased by 388% in the last year. From a total of USD 29,000 million, now more than USD 150,000 million back those crypto assets.

The best-known stablecoins are Tether (USDT), USD Coin (USDC), DAI (DAI), USDP (USDP), and Binance USD (BUSD). Even though the latter dominated that field over the years, that trend began to drop in 2021.

USDT started the year with slightly over USD 21 billion dollar-backed units and ended it with more than USD 81 billion. In other words, the volume of that stablecoin almost grew fourfold.

However, the growth in the volume of USD Coin was much higher. More than USD 4,000 million worth of that stablecoin were locked in January 2021, while the amount already exceeded USD 41,000 million in December. In other words, it grew ten times compared to the 12 previous months.

Likewise, BUSD, the stablecoin issued by cryptocurrency exchange Binance, exponentially increases from 1 billion to more than 14 billion units throughout the year.

Despite that, USDT continues to be the king of stablecoins regardless of recent complaints. Tether Holdings Limited, the issuer USDT, allegedly does not support investor assets as claimed. At the same time, the US Congress analyzes the possibility of regulating those cryptocurrencies.

Investors Want to Find a Place Where to Put their Capital

During the analysis of cryptocurrency markets, the exponential growth of stablecoin issuance can be a crucial factor. Their nature and the role they play in the ecosystem create that situation.

The primary use of stablecoins is that of reducing volatility when making transactions. In that way, they become helpful instruments on centralized and decentralized exchanges and in decentralized finance protocols.

The growing amount of funds for issuing those cryptocurrencies indicates a significant flow of capital into the crypto world. Although many have not yet settled on any of the above options, they are ready to jump into the field when investors deem appropriate.

Likewise, derivatives markets are also contributing to increasing demand for those tokens. Many futures contracts set the price of crypto assets in stablecoins to avoid discrepancies. That is because there are significant variations in the value of other cryptocurrencies like Bitcoin (BTC) and Ether (ETH).

The CEO of Circle, Jeremy Allaire, highlights that the massive adoption of stablecoins to accept payments can enhance that growth in 2022. That firm is one of the developers of USDC, the second stablecoin with the highest capitalization worldwide. For that reason, his opinion carries a lot of weight to predict what next year will bring to the sector.

By Alexander Salazar

The former Argentine president considers the Ethereum network is an innovative decentralized technology since its cryptocurrency is among the most valuable. Vitalik Buterin said he is interested in the Proof of Humanity project, the identity verification system developed by programmer Santiago Siri.

Vitalik Buterin is a co-creator of the open-source platform Ethereum, whose cryptocurrency is Ether (ETH). The 27-year-old Russian-Canadian developer recently went to Argentina to meet some entrepreneurs. During the visit, he had the opportunity to talk with former President Mauricio Macri.

The former president of the South American country said that he enjoyed the meeting with the creator of Ethereum very much. He considers that network one of the most innovative decentralized technologies since its cryptocurrency Ether is one of the most valuable. They spoke about the role of crypto assets and blockchain opportunities for states.

Ether Is Only the Cryptocurrency Behind the Ethereum Network System

Although many people believe that Ethereum is a crypto asset, it is actually the technological system behind Ether. In 2015, Vitalik Buterin, David Wong, and Charles Hoskinson created the second-largest cryptocurrency in terms of market capitalization. In addition, that technology allows developing many apps and has much to do with metaverse currencies.

Entrepreneur Gabriel Gruber asked Buterin which project most interested him, to which he responded Proof of Humanity. The creator of Ethereum referred to the identity verification system that Argentine programmer Santiago Siri developed.

Vitalik Buterin met other renowned figures from the entrepreneurial world of the South American country. They included Tomi Pierucci (from JP Morgan), Santiago Siri (from Proof of Humanity), Franco Zeoli (from Hardhat), and Hernan Kaszah (from Kaszek).

He also spoke with Federico Ast (from Kleros), Damián Sneider (from Muun), Mat Travizano (from Telefónica), Leandro Sigman (from Chemo), and Gastón Parisier (from Big Box). Others with whom he shared experiences were Gastón Irigoyen (from Pomelo), Matías Woloski (from Auth0), and Esteban Ordano (from Decentraland).

Some Researchers Say Ether Will Be more Valuable than Bitcoin

Researchers from the University of Sydney and Macquarie University concluded that Ether could replace Bitcoin as the main store of digital value. They said that the arrival of Ethereum 2.0 has favored the updates of the mainnet and the deflationary nature with which it currently operates.

The authors consider that the recent innovations demonstrate the possible deflation of cryptocurrencies through destroying transaction fees. They point out that half of the blocks eliminate more Ether than they create, suggesting that this crypto asset offers better inflation coverage.

A few months ago, the network implemented EIP-1559, which introduced a fee burn system to limit the amount of ETH on the market. However, there were fierce debates in the mining community since that deteriorated the conditions in which they did their activity.

Significant operational changes on the network include migrating from Proof of Work (PoW) to Proof of Stake (PoS). Therefore, it will require lower electrical energy consumption, and the participants can process the blocks and generate passive profits.

That will generate greater scalability for the network, implying a greater operation volume in short periods. In that way, there will be a significant reduction in fees for transactions natively. Users recently complained that they had to pay high rates for small transactions.

By Alexander Salazar

The sales of Bitcoin bought more than a year ago are low as long-term investors maintain a confident position. Many coins go into wallets, indicating little intention to make transactions in the short term.

There are times when Bitcoin investors are confident that the price will go up, so they decide to buy. However, mistrust increases at other times, and most choose to sell their holdings. Market participants are currently optimistic, intending to hold positions for the long term.

The sales volume of Bitcoin bought over a year ago has remained low. In other words, long-term investors are confident and do not sell their holdings.

In addition, investors bought less Bitcoin than less than six months ago, so its volume is at minimum values. Most of them keep coins bought more than six months ago in their wallets, denoting greater confidence and the desire to maintain positions.

There Are more Inflows than Outflows of Bitcoin on Exchanges

The variation of the net position of Bitcoin on exchanges, minus the amount of Bitcoin that goes to wallets, indicates a significant outflow. Therefore, investors may have no intention of making transactions in the short term. That leads them to choose to store their holdings in cold wallets, where they can sell them when they deem appropriate.

There were variations in the average value of the Bitcoin sold on a given day and the purchase price. In other words, if the value is greater than 1, investors had positive returns. Meanwhile, if the value is less than 1, investors made losses when selling that day.

According to analysis, that indicator is always at highs before a considerable drop. For example, the price of Bitcoin fell by more than 80% until it reached its bottom in December 2017. Furthermore, the value dropped by more than 70% in June 2019 and corrected by more than 50% in May 2021.

For that reason, selling today may not yield significant returns to average investors. Besides, the price could rise further before investors sell their holdings for better returns.

A Greater Number of Users Trust Cryptocurrencies

The analysis also shows that the number of new addresses has increased, indicating that many new investors are adding confidence to the world of cryptocurrencies.

The current market shows a moment of confidence where most investors want to hold positions thinking about another time horizon. They expect the price to go up enough to receive better returns from the sale of their holdings.

It is necessary to remember that many successful Bitcoin investors buy Bitcoin when its price is low. Even companies like MicroStrategy and Tesla have acquired Bitcoin to keep it as a store of value on their balance sheets.

The trust in Bitcoin remains high thanks to its ability to recover from crises like the current one. Many even buy it as a hedge against inflation in countries where the national fiat currency loses value. For example, Venezuela has turned to cryptocurrencies to deal with the critical economic situation its citizens are suffering.

By Alexander Salazar