Bullish markets can absorb many months of the distribution phase if sales continue, says Glassnode. The net change in the position of long-term holders allows seeing the beginning of the distribution or sale of BTC.

The accumulation level of Bitcoin (BTC) in the hands of long-term holders (LTH) remains at high levels. However, a report from Glassnode reveals a transition of these to a moderate sales phase.

The study notes that bullish markets can absorb many months of the distribution phase. However, the possibility of a local or global cap increases if sales continue. A previous report from the analytical firm indicates that long-term holders had accumulated BTC predominantly.

The age of the coins, or the period that they remain immobile, is the first indicator that Glassnode uses to show that phase of moderate sales. Each unit of BTC accumulates one coin day daily as long as it does not change hands. In other words, when a holder moves it, the coin days experience their destruction.

A chart from Glassnode indicates that coin days destroyed, proportional to the BTC sold, went from 10 million to 12.5 million in November. That is evidence of the BTC sales during that period. However, there was a much higher sales volume in November of last year and January of this year. Of course, they were in line with significant increases in the price of Bitcoin.

Relationship between Selling and Holding Bitcoin

While some coins change ownership and others remain on hold, the days of coins created and those destroyed simultaneously increase. The report defines the relationship between these two situations as liveliness, a metric that tends to grow when there is more destruction of coin days. On the contrary, when liveliness decreases, the holding (hodling) of the coins prevails.

On a Glassnode Bitcoin liveliness chart, the green arrows show a downward trend when hodling predominates. On the other hand, red arrows indicate that there is an upward trend when spending prevails.

The graph reveals that the decreasing hodling or liveliness flattens out and begins to reverse after six months.

The net change in the position of long-term holders also allows appreciating their sales scenario. The graph published by analyst Will Clemente shows the transition when the distribution or sale of BTC is just beginning.

After the last all-time high that Bitcoin reached, high prices led to moderate profit-taking contrary to previous caps. The value of the cryptocurrency started at USD 66,000 and has shown a downward trend in the past few days.

Bitcoin is trading at around USD 58,000 and has accumulated a loss of 11.4% in the last 24 hours. Its daily trading volume is more than USD 40 billion, and its capitalization is about USD 1.09 trillion, according to CoinGecko.

Despite its recent drop, the pioneering cryptocurrency has proved it can resume and even exceed its all-time highs. For example, it reached two ATHs on two consecutive days in recent weeks. Therefore, it is just a matter of time before Bitcoin hits new record prices.

By Alexander Salazar

The NDRC recently said that cryptocurrencies are not assets, like fiat money, as no monetary authorities issue them. The Chinese authorities banned them immediately after they released the digital version of the yuan (e-CNY).

The National Development and Reform Commission of China (NDRC) recently said no monetary authorities issue cryptocurrencies. In that sense, the leading economic planning institution considers they are not assets like fiat money or precious metals. Following those comments, the price of Bitcoin (BTC) (7%), Ethereum (ETH), and Binance (BNB) dropped.

According to the NDRC, cryptocurrency miners consume a too high level of energy. They added that this business does not contribute to the industrial and technological development of the country at all.

The PBOC Associates Cryptocurrencies with Illicit Activities

In October, the People’s Bank of China (PBOC) and other banking and regulatory institutions highlighted that cryptocurrency transactions imply different illegal and criminal activities. That led Chinese miners to massively migrate to other regions of Asia like Kazakhstan and Russia.

The NDRC made that warning some days after announcing the expulsion of Xiao Yi from the Chinese Communist Party. The former vice-chairman of Jiangxi provincial Political Conference misused his political power to support companies related to cryptocurrency mining.

Local Chinese media reported Xiao Yi’s political trial by the Central Commission for Inspection and Discipline of China. That agency determined that the former political official violated the industrial policies of the nation.

The Chinese Government Persecutes Cryptocurrencies

That is not the first time that the NDRC has stated that China has vowed to take radical measures against cryptocurrency mining this year. The country intensified its efforts to repress and persecute crypto assets since September by banning their trade. They also said that they would investigate all mining operations taking place in the country.

In April, the Nature Communications journal published a study indicating that China accounted for more than 75% of Bitcoin mining worldwide earlier this year. However, the continued bans and regulations throughout the year led to a massive migration of miners to other Asian countries.

The Chinese authorities have singled out cryptocurrencies for some reasons that affect their national interests. They perceive cryptocurrencies as a considerable financial risk and a way for people to evade strict economic controls. The ban on cryptocurrencies occurred immediately after the government released the digital version of the yuan (e-CNY). That would allow the PBOC to exert greater control over the flow and exchange of money of the population.

China is also trying to meet its climate targets to become a carbon-neutral country before 2060. For that reason, they want to take cryptocurrency mining out of the country as it could threaten that national objective. They believe that that activity consumes too much energy, which causes severe power shortages. That situation has led them to implement power rationing in millions of homes and factories in the country.

Decentralized cryptocurrencies like Bitcoin and Ether allow people to trade without the control of monetary authorities. As the PBOC considers those assets contribute to illegal or criminal activities, they have banned miners from working in the territory. Those countries where they have arrived are now the ones benefiting from that activity.

By Alexander Salazar

Elon Musk says inflation is championed by those who claim to be progressives. The businessman warns that inflation is the most regressive tax that exists.

Throughout 2021, inflation in the United States of America reached record values, leading to the rise of various concerns about the situation. Elon Musk, the current director of the electric car company Tesla, highlighted his thoughts on the subject via Twitter.

Elon Musk, the third richest chairman on the planet, released a short sentence on the social network that generated more than 76,000 likes. What he put is: “Inflation is the most regressive tax of all, but it is defended by those who claim to be progressives.” In this way, he highlights a political satire about the actual economy.

Responding to a tweet that reveals that the dollar value has crumbled down by almost 90% in the last 70 years, Elon Musk realizes that inflation is due to the impoverishment of the currency. This situation raises their concern about the decline in purchasing power in the face of the unstoppable rise in prices in the United States of America.

Bitcoiner businessman tycoon, who had gained popularity for defending cryptocurrency investment, says that the ideology of progressing as a country and generating inflation at the same time is contradictory. They do not go hand in hand, which is why he holds the government responsible for this economic problem.

Elon Musk used this tweet to attack the rising inflation in the United States of America today. While the price increase index used to be 0 to 2% each year in the territory, in 2021, it managed to surpass 6%.

Argentina and Venezuela surpass the Inflation of the United States of America by Almost 600% and 9,000% More

The price increase index in the United States of America is high compared to previous years. However, the price increase is almost insignificant for Latin America, which got used to living in constant inflation.

Venezuela, Argentina, Brazil, Uruguay, and Paraguay are the only five Latin American countries that exceed current inflation in the United States of America. The rest of the Latin American countries maintain lower values, such as Chile (5.8%), Mexico (6.2%), and Colombia (4.6%).

Bitcoin Got Described as a Solution to Overcome Inflation and Currency Devaluation

Widespread inflation makes people look for hard currencies to maintain the value of their savings, something that reflects in the use of bitcoin. This cryptocurrency, which counts on the highest market capitalization of the ecosystem of digital assets, gets a more bullish position than the dollar.

On the other hand, the dollar has managed to experience devaluation in the long term, while bitcoin has increased by at least 350% in 2021. Several rulers of the United States of America began to collect their salaries in bitcoin, a cryptocurrency that is also popular in Latin America.

Residents of countries like Argentina and Venezuela found in the sale of cryptocurrencies a solution to deal with inflation and devaluation of the local currency.

By: Jenson Nuñez

Charles Hoskinson shared his thoughts on the meta-verse and the space web, a space where various technologies will converge, including cryptocurrencies, NFTs, virtual reality, augmented reality, IoT, and more.

The metaverse has ceased to be a science fiction dream to become the imminent future. After Facebook announced its rebrand, a handful of companies have started to target the construction of platforms that enable spaces where physical, virtual, and augmented reality could converge online in a development known as a metaverse.

The concept arrived from the literature of the 1990s and now belongs to the next technological trend of the 21st century. Some, like Mark Zuckerberg, seem to point out how the metaverse future will look like and anticipate that it could turn into a multi-billion dollar industry in the years to come.

During this global outreach discussion, Cardano founder Charles Hoskinson shared some of his thoughts on the metaverse and how the evolution of this new trend could benefit the digital currency industry. The mathematician and CEO of IOHK, the technology development company behind Cardano, opened up on the subject during the Thinking Crypto podcast.

Hoskinson’s Vision of the Metaverse

Hoskinson highlighted that he found the metaverse idea very interesting. He added that, in this regard, he has recently been reading the book ‘The Spatial Web’, which discusses how Web 3.0 will connect human beings, machines, and artificial intelligence to transform the world.

The developer described the stage as the semantic web, explaining that websites would have much more context due to complex data exchange. Our interfaces are changing us, Hoskinson said that anticipating that Apple will most likely release its virtual reality glasses by 2025 and that this will motivate Samsung to develop its version.

The Ethereum co-founder also noted that these advances in artificial intelligence, semantics, and user interfaces mean that Web 3.0 is not just a thin layer but also a vertical one, with the metaverse evolving on top of it. The mixed virtual reality with augmented reality revolution is coming while also bringing insight into his vision, in which both spaces will complement each other.

Once the cryptocurrency ecosystem makes its entrance, highlighting the need to have a control layer for the logic and data system of said space, like scarcity and uniqueness, NFTs make their entrance into the scenario.

Convergence Between Many Technologies

Hoskinson kept elaborating on how digital currencies could coexist within the metaverse and the spatial web or Web 3.0, where technologies such as virtual reality, augmented reality, and the Internet of Things (IoT) converge with identity systems and systems related to Blockchain-based privately-owned data.

The founder of Cardano also highlighted that the new generations have a great pedagogical advantage since they have access to video games and other narratives that can invite them to think about concepts in an unconventional way.

By: Jenson Nuñez

Indian MPs met with representatives of the crypto world in India, and they achieved a consensus in favor of crypto regulation.

For years, India and the crypto ban seemed to be on the same rails. It would not be like that anymore. A meeting of parliamentarians from the Asian nation and representatives of cryptocurrencies ended up coinciding that this industry must get regulated as soon as possible, removing the ban as an option on the table.

According to information provided by a source, specifically sent to the Financial Express, there was a consensus among members of parliament that there should be regulation instead of banning it.

Now there are two ways of looking at it; either 90% gets prohibited or 10% gets allowed, or vice versa. That is the compensation discussion that has been taking shape recently.

How to Treat Foreign Cryptocurrencies

The meeting received various representatives of Indian exchanges such as WazirX, Coinswitch Kuber, and CoinDCX, and members of the Blockchain and Crypto Assets Council (BACC), along with the deputy and former Union minister, Jayant Sinha.

The meeting focused on arguing how foreign cryptocurrency exchanges should get treated and how cryptocurrency-related advertising campaigns can get controlled.

They also remarked how investor protection can get ensured and how to use the central bank on a possible threat of cryptocurrencies to the economy.

The source highlighted that the government was quite clear that it must get something out before the Budget Session. This statement means that there is a general need to end this situation in the winter session. According to the information, the budget session would be in February 2022, when all this could get formalized in what would be equivalent to opening a massive market.

Cryptocurrencies are a big concern

It is worth remembering that in March 2020, when the Supreme Court reversed the decision to ban cryptocurrencies made by the central bank of India, the crypto industry had grown significantly. Even Coinbase opened an office in the country. However, the central bank remains a bit reluctant.

The bank’s governor, Shaktikanta Das, reiterated his criticism last week when he said that cryptocurrencies are a concern, among other vital struggles viewed from a macroeconomic and financial stability point of view.

Some representatives estimate that there are 100 million cryptocurrency users in India, while some other representatives think there are around 20 or 30 million, more or less like in the United States. The governor of the bank expressed his disagreement with such massive figures.

Yesterday’s parliamentary meeting followed a meeting chaired by Prime Minister Narendra Modi on Saturday. Saturday’s meeting had discussed the potential use of cryptocurrencies for illicit activities such as money laundering and terrorist financing, according to a report by CNBC TV-18.

Potentially misleading newspaper advertisements got also discussed at the meeting. These ads would be able to mislead young people by focusing on potential earnings rather than risks.

By: Jenson Nuñez

Even though crypto memes have no solid pillars that support them as reliable projects, people continue investing in them. Not only the Reddit group but also Tesla CEO Elon Musk have encouraged many investors with their posts.

A growing number of people are becoming interested in investing in the sector of cryptocurrencies. For example, this year, the price of many tokens rose to levels that nobody had seen before. The most prominent were crypto memes like Dogecoin and Shiba Inu, among others also growing due to fanatism and social acceptance.

The two favorite crypto memes in the community are among the TOP 10 tokens with the highest market capitalization. The first is Dogecoin, which dominates with USD 30 billion, and the second is Shiba Inu with USD 25 billion.

Meme-based cryptocurrencies do not have solid pillars that let investors know they are reliable projects, like those owned by Ethereum or other crypto assets. Although nothing proves they can create utility in the market, people continue investing in them.

Why the Investment in Crypto Memes Could Be Higher Next Year

Many investors have turned to crypto memes like Dogecoin, Shiba Inu, and Floki Inu this year. They may have discovered the true power of the crypto community since those movements started in a Reddit forum.

Later, that group of investors led to a 4,000% increase in the price of GameStop shares. Then, they sought to do the same with the Dogecoin crypto meme, whose value rose by more than 14,000%.

Although the group encouraged many investors, that was not the only factor that took DOGE into the market. It also had highly influential supporters like Tesla, SpaceX, and Neuralink CEO Elon Musk. The passion that Musk has for Dogecoin has led him to purchase a Shiba Inu breed dog.

In a few words, the group promoting Dogecoin and GameStop created a new market for crypto memes in general. That is evident on social media, where retail investors show their enthusiasm for meme-based cryptocurrencies. Many people wonder whether memes will be the cryptocurrencies of 2022.

The Rate of Adoption On Social Media Continue Rising

Next year will be excellent for cryptocurrencies in general since the volume of retail investors and the rate of adoption and profit could continue growing. There are already communities on Reddit, Facebook, and even Twitter, where they discuss those issues.

In short, there will be a higher investment in crypto memes in the coming months and years since the platforms encouraging social investment are growing. They share the sentiment and experiences of retailers and possibly favor the investment in those assets next year.

The relevance of cryptocurrencies has become increasingly evident globally, of which retail investors are aware. Among those assets, they can find crypto memes like DOGE and SHIB, which they can buy more cheaply than Bitcoin or Ether. That way, they would be paving their way into investing in the crypto market.

By Alexander Salazar