Are Strong Technicals Enough To Bring Bitcoin Price To $100K In 2021?

Technical are more commonly employed with stocks, but they are also far more manipulated by giant hedge funds and large corporations for THEIR gains, leaving everyone else carrying the bag. I believe that in Crypto, everyone has a much higher chance of winning or losing fairly. I also recognize that high volatility isn’t something everyone can handle daily. A slew of different things might influence BTC’s price.

Sfgate.com contacted Ben Caselin, chief scientist and development at bitcoin exchange AAX, to get a clearer sense of whether a year-end estimate of $100,000 per BTC is still achievable. Last Tuesday’s sell-off, in his opinion, was a classic “sell the news” move, and he believes an intricate “bear trap” was in play. 

 He made the argument that when it pertains to Bitcoin, checking at on-chain information rather than just price technicals is more beneficial since it gives users an elevated perspective of what’s going on across the network in real-time. Similarly, Tommy Schreiner, a lead postdoctoral fellow at bitcoin data source the TIE, believes Bitcoin has a good possibility of reaching $100,000 by the end of 2021.

According to Igneus Ter renus, head of communications at bitcoin exchange by bit, the establishment of a Bitcoin marketplace fund (ETF) in the United States is the most compelling justification for Bitcoin’s price exceeding $100,000 this year. This, he believes, will assist in expanding the BTC market to include new players such as retirement funds and financial mechanisms.

Despite recent volatility, Bitcoin’s underpinnings appear to be quite strong at the moment. In this connection, Charles Edwards, the creator of Hash Ribbons, a well-known Bitcoin measure, recently claimed that the headline cryptocurrency would continue in the green as long as it can stay above the $42,000 barrier zone.

Crypto Ownership Has Nothing To Do With Distrust In Fiat: BIS Study

Bank of International Settlements is a financial institution owned by some popular and largest central banks worldwide. One of the studies of BIS has been seen trying to dismiss the theory of people who think that crypto ownership is associated with people’s distrust in fiat currencies that the government issues. On 1st July 2021, the BIS published the newspaper on United States socioeconomic drivers of crypto investments. In the paper, BIS argued that the distrust of people in fiat currencies is not related to investors and traders being attracted towards digital currencies like Bitcoin and Ethereum.

BIS published that “the demand for crypto coins isn’t motivated because of distrust in regular money or cash and there are generally no differences in security of money and online and offline banking. BIS stated that they disprove the supposition that cryptocurrencies are developed to be the alternative of regulated finance or fiat currencies.” The authorities across the world stressed that digital currencies are not required as alternatives to fiat currencies, and instead, these currencies are niche speculation objects.

The paper published by BIS also states the correlations between investment choices, income, and education of crypto owners. Techtimes.com suggested that crypto owners are more educated than normal investors. It has been found out that Ripple and Ether investors are highly educated, whereas investors who own Litecoin are least educated, whereas bitcoin owners are ranked as medium educated.

Each day new reports are generated. A new report also suggests that Bitcoin and other cryptocurrencies provide no threat to traditional currencies or financial tools, claiming that crypto demand isn’t because of distrust of people in cash or regular money. Earlier, when bitcoin’s price skyrocketed, many global institutions and authorities expressed their concerns about its potential and taking advantage of people’s distrust in traditional currencies or government.

In December 2020, Ruchir Sharma, Morgan Stanley Investment, disputed that the supremacy of fiat currencies like the U.S. dollar would end because of the inception of cryptocurrencies, leading to global distrust. Every investor needs to understand that bitcoin doesn’t affect any traditional finance tools, and therefore there is no harm to fiat currencies. People who want freedom often use digital currencies, and those who want banks to handle their funds using traditional currencies,

Miami Mayor Confident Crypto Regulatory Issues Will Be Resolved

While some people and countries are only limited to accepting bitcoin as a payment method, the mayor of Miami named Francis Suarez is planning to make Miami the capital of Bitcoin. Despite its volatile market and wild fluctuations, Francis believes that cryptocurrencies will work on themselves, and there’s only one thing that everyone must do at this point is “buy the dip.” At Bitcoin 2021, Miami Mayor gave a speech where he mentioned that he is making utmost efforts to make the metropolis the bitcoin capital. In his speech, he first said that Miami was the only city that hosted a white paper published by Satoshi Nakamoto on a web site.

Francis stated, “Miami was the first in the country. At first, we want us to be first in building and promoting the new generation of technology. We adopted new technology because people are always looking for the best to live a quality life in this experiential world. We were first since we understand the advantage that the new and tech world can offer you, and we became first because we understand the meaning of becoming a capital of capital”. He added, “Miami strives to be the bitcoin capital.”

He elaborated that we truly believe that we have to take risks and integrate. Francis even requested to permit the metropolis to pay their workers for the efforts in bitcoin and settle for bitcoin for all the taxes and charges and explore the risks related to holding this crypto asset. After this, he talked about the total number of industries or streams of earnings that are flowing to his metropolis from crypto space along with blockchain.com, and he talks about shifting both bitcoin and blockchain.com from New York City to Miami.

Miami mayor shared that this week, they have announced the blockchain.com headquarters, the largest crypto trading platform, and blockchain that created around 300 new job opportunities and around $30. Even the mayor said that the U.S. is ready to become the powerhouse for bitcoin mining using clean and less energy. This will help bitcoin to transact faster and have a stable price. This will decide the differences between the proof-of-stake and the proof-of-work.

Mayor Suarez added that the most significant thing he loves about the bitcoin community is the great interest, energy, and innovation that will help change the world and define Miami city.

Is Bitcoin Useless?

Bitcoin – the cryptocurrency, which was invented and registered in the year 2008 on 18th august by a strange person / a team of people in the name of Satoshi Nakamoto. The currency has started its utilization in the year 2009 when the bitcoin advancement was revealed as the open-source software. Bitcoin is a localized computerized currency, with no involvement of the single administrator or central bank, which might be directed from the user to end-user on the peer-to-peer network of bitcoin, doesn’t involve the requirement for medians. The Transactions are approved by the network nodes with the help of cryptography and documented in a people-distributed ledger known as the blockchain.

Bitcoins are made as to the reward for an action termed mining. Bitcoin revolution can be interchanged with other, products, services, and currencies, yet the physical world’s worth of Bitcoins is immensely volatile. Earlier in the year 2018, the trading of bitcoin was extremely high as 18,336 dollars, but by June 2019, the bitcoin has fallen low to 3,400 dollars, nearly a 75% drop in the value. The markets of Cryptocurrency very often follow the bitcoin’s conduct and also invert in the value over the period, dropping by nearly 73%

Yet the value of Bitcoin has been pulling up speed once more, and the shareholders are initiating to dive on the bandwagon— hedge funder Stanley Druckenmiller, macro investor Paul Tudor Jones, investor Bill Miller, and Twitter CEO Jack Dorsey, all have recently validated the cryptocurrency. Remarkably, the PayPal- payments platform has revealed that it will credit Bitcoin. Later, in the year 2021, the Bitcoin price has surpassed 60,000dollars, triggered by Tesla’s 1.5 billion dollar deposits in early January. The constant discussions being held that If bitcoin becomes mainstream – either as a medium for everyday transactions or as a value that can be stored. In the devastating year of 2018 editorial, the cryptocurrencies like bitcoin and others are declared useless by Economist. The lack of security and transparency on transacting with cryptocurrencies, difficulties in purchasing, and on their blockchains.

Skyrocketing valuations in the cryptocurrency markets have modified the governing narrative adjacent to Bitcoin. It is not considered as the medium for everyday transactions further. Rather than the cryptocurrency being improvised as a value (that can be stored) the alternative financing same as gold. Yet the cryptocurrency experiences both crucial difficulties here again. Both the challenges are – The first challenge is related to the bubbles in the price of Bitcoin. There were numerous bubbles in the bitcoin that have broken out, and its residues seem if the current document-high prices will constant. While Bitcoin meeting some of the basic characteristics of the store of value is the second challenge.

The Bitcoin system remains to increase, involving a collection of products that extend its level of use claims. Besides trading with Bitcoin, one can utilize bitcoin as a guarantee to buy jewellery or for loans. According to the fresh findings, mid-size and small markets also forwarding in using Bitcoin’s blockchain to create the wire transfers as it costs low.

It is so astonishing to disregard the boost around the cryptocurrency fore with. This is because of the new record of bitcoin when Elon Musk tweeted on Dogecoin going ‘to the moon, or the majority of companies like apple and tesla triggering to credit on Bitcoin. Yet it’s hard to predict, whatsoever the intelligence, now it looks like people rattle on their favorite cryptocurrency.

South Korean Crypto Traders Are Pivoting To ‘smaller Cap’ Altcoins

There are different types of cryptocurrencies being used in the digital world today to make purchases. Indeed, a few countries have legalized this currency to be traded for things that are purchased. It is the safe and easiest way to make and transfer payments. However, there is a steep decline observed in the usage of cryptocurrency amongst the people of South Korean with the advent of altcoins in the market. Many are turning their heads towards the usage of this currency. The South Korean has four major bitcoin exchanges. These are reputed in the Korean market. There include – Bithumb, Korbit, Coinone and the last one is the Upbit.

The reason for people compelling towards altcoins is that it is offering the highest 24-hour trade volume, which is otherwise not offered by the other cryptocurrencies. This is the data that is gathered according to the other market aggregators. Excluding XRP, which is considered to be the most popular crypto traders in Asia, the big four crypto exchanges in this country are driving towards altcoins. It is allowing tiny market capitalizations for trading. After doing an extensive research on the cryptocurrency, the data discloses that there are three top rated cryptos that are trading huge volumes of altcoins such as Ravencoin (RVN), Near Protocol (NEAR) and New Kind of Network (NKN).These three are listed on the Upbit exchange. The surge in the NKN trade volume in the South Korean trade market clearly indicates that there is a steep rise in the investment made by people on Altcoins. It also indicates that the South Korean market is gaining foothold amongst the other crypto traders globally.

It was reported by Cointelegraph that NKN has seen a rise of about 1400% from March 06, 2021 to April 06, 2021. It rose 83% from year to date. The exchange data that is gathered by Coinmarketcap disclose that XRP is the top traded altcoins in South Korean in all these four exchanges. There are other top 10 trading volumes that are taken over by the smaller cap tokens like Chiliz (CHZ) and MileVerse (MVC). When compared to the CHZ trading volume that was in January on Upbit, the social token 24-hour activity has risen from USD 5 million to USD 730 million in April. The smaller cap altcoins are gaining huge prominence in the South Korean cryptocurrency exchange platform. The rise has been up to 3000%. Sudden increase of the market value of altcoins has led to decline of bitcoin currency trade volume in the South Korean exchanges. The BTC volume has been slumped down from 30 to 40% in all these four different exchanges that are being run in this country.

However, bitcoin is seeing many positive changes in terms of price and has set the all time record of increasing the value to USD 62,000. The trading of bitcoins is happening at the rate of USD 71,200 across South Korean markets. Kimchi’s premium is around 13%. Many traders who are investing in altcoins are seeing a huge rise in its value in a short time.

PayPal to reportedly offer crypto trading through Paxos partnership

For those who use PayPal, there is one more good news as this platform has also entered the segment of Virtual currency which is the Bitcoin System. PayPal is all set to get into the crypto trading platform through its partnership with Paxos. This is great news for cryptocurrency supporters as it will provide a good platform for them to trade Bitcoin and other currencies. Paxos is a stable coin operator, and it offers brokerage service. PayPal will now use this platform to push crypto trading. Hence it will gain some more users on its platform then the present user base.

Paxos launches crypto brokerage

With this move, Paxos will enable other entities to integrate the trading options for cryptocurrencies. The new service will be used by PayPal to provide crypto trading facilities for its users across the world which will facilitate many users. It will help both entities as PayPal will get to add new services for its growing customer base, and Paxos will also get the brand association of PayPal. In this way, it can boost the overall growth in the cryptocurrency market.

PayPal’s association with the digital currency market

PayPal is actively involved in the cryptocurrency market in recent months, and it has also hired various experts to develop cryptocurrency capabilities within the organization. It was initially not so keen on this platform as it can contradict its original business. But after seeing the huge demand in the digital currency segment, they have taken the plunge into this market. It was an earlier member of the Libra Association which was planning to introduce stablecoin through Facebook. However, it did not go down well with regulators, and PayPal had to step back from the association in 2019.

After this, PayPal has started to work on its own platform where it can provide cryptocurrency trading options, and this new partnership with Paxos will only be a big boost for this cause. This is good news for PayPal users as they will not get to use cryptocurrencies along with the regular payments, and this will be very useful for international transactions. There is no need to use the regular currencies when you can easily process various transactions at lesser fees. The charges for processing cryptocurrencies are far lesser than the regular currencies in most cases, and users will prefer Bitcoin and other currencies while dealing with international transactions.

How To Navigate Cryptocurrency Tax Implications Amidst The CPA Shortage

The high demand for CPAs has risen even further, and the complexity of the tax landscape increased with virtual currencies. Cryptocurrency is one of the hottest topics worldwide, contributing to the soaring prices of BTC, ETH and other currencies in the world.

While the earning looks lucrative on paper, the crypto taxes can often be a tough nut to crack.

Many traders evidently take enough advantage of the constant fluctuations. They buy the dip, sell the uptrend and repeat. Unfortunately, all of these events are taxable.

According to an IRS chief, the country is losing trillions of dollars for unpaid taxes every year. This is why several subpoenas that existed against Coinbase, Kraken and Poloniex in the US should be under the view of the IRS.

There have been multiple headlines of how IRS officials seized billions of dollars in cryptocurrencies regarding tax fraud.

As the number of crypto investors rises every day, about 55% of the American investors are believed to hold BTC worth millions. According to the IRS, users need to specify their personal details, including the location, which cannot be missed. They need to check out the form and approve the boxes as required based on their crypto activity.

According to him, the crypto assets will be considered as a property of the users. They must recognize and report every taxable gain and loss, failure of which can lead to tax audits, interest payments and penalties.

This year the industry of CPAs has been overworked and underpaid, which resulted in the decline of this career. This means users will have a tough time finding a suitable CPA for their taxes. 

With the offerings of Accounting, a cryptocurrency software, users can now access all their data in one centralized location, which can easily calculate all the wins and losses of the trader whilst classifying all the transactions accordingly. This eliminates the need to hire a CPA anymore as traders can rely on this application to calculate their earnings in mere seconds. Traders can now customize their tax reports however they like without any restrictions!

Crypto Market Eyes Recovery Ahead Of Key US Inflation Data Release

The growing inflation rates in the US have been on the headlines since last year. As per the leading lawmakers, this inflation was not anticipated, but the money printing spree throughout the pandemic was always a concern. In 2021, the US reportedly printed about 35% of the total US dollars, which was a major reason for this inflation. The market pundits expect an upcoming 6% rise in the consumer price index(CPI)  in November which could possibly be the highest in the past four decades.

As per the heraldnet.com, the $1.85 trillion spending program and tax cuts can reduce the impacts of inflation, but experts are still very skeptical about this. The Asian Pacific and European markets have also recorded a massive decline. Japan’s Nikkei 225 declined to 28,437.77, which is 1%, whereas South Korea’s Kospi fell to 3,010.23, which is 0.64%, along with many retail and healthcare stocks going downhill.

However, contradicting this inflation, the crypto market witnessed a bounce back from its downfall due to the Omicron, a new variant of the coronavirus. The price of BTC improved above $48,400 from $47,358 while Ether price was recorded as $4,100 from $4,026, resulting in an overall crypto market cap above $2.25 trillion. Nonetheless, the panic after the market crashed the past few days were disastrous. Robert Kiyosaki has previously warned us about the market crashing and depression upcoming due to this “fake inflation” is inevitable. He actively blamed the Biden administration for this massive inflation to cover up the downfall of the market.

Tesla’s Buying of Bitcoin Briefly Made Bitcoin More Valuable Than Tesla

One of the happiest news ever for bitcoin investors. Tesla has finally made an entry into the bitcoin market. As per an announcement made on Monday, Tesla has announced that it has bought $1.5 billion worth of bitcoin.

When filing with a Security exchange, Tesla confirmed that it bought Bitcoins for more flexibility and also to maximise its returns on cash.

In another statement, Tesla also said that it will soon start accepting payment in Bitcoin in exchange for its products. But, it will be as per the applicable law and for a few months, it will be on a limited basis.

The investment of $1.5 billion of bitcoin will give Tesla the liquidity once it will start accepting payment in bitcoins.

The move by Tesla to enter the cryptocurrency market and a heavy investment shows that Bitcoin has potential. The company has more than $19 billion in cash as well as cash equivalents as per the report they published in 2020.

Many people are calling this move by CEO Elong Musk to be foolish. Many people said that his recent tweet about bitcoin can also be one of the major reasons for the sudden increase in sudden price for Bitcoin. His positive message at Twitter has motivated many people to buy the digital currency.

Almost 2-weeks back. Tesla CEO Elon Musk has added hashtag #bitcoin in his Twitter bio. This move by Elon Musk is said to be one of the biggest reasons for the increase in the price of Bitcoins. After this hashtag on Twitter, the price of Bitcoin has increased by almost 20%. Two days later, he also said at a Chatsite named ClubHouse that he thinks that Bitcoin is a good thing and he is a big supporter of Bitcoin.

Bitcoin has witnessed a price surge on Mindat and the price of Bitcoin reached upto $44,200. In addition to this, Tesla’s shares were also up by 2%. But, Tesla has warned investors about the volatility in the price of Bitcoins.

Elon Musk has got into trouble many times for his Tweets in the past. But, it is still unclear whether this tweet has significance or not. No matter, if the Tweet is a marketing move or not, people as well as analysts are quite excited about the entry of a big player who wants to make a heavy investment in Bitcoin.

Istanbul To Berlin: Ethereum Milestones On The Road To Serenity

Peter Szilagyi (Leader of Ethereum Foundation team) showed a confirmation upon the network upgrading date for Istanbul. Several improvements will commence in Istanbul, including adjusted gas prices to perform operations, Zcash interoperability, and cheap solutions for 0-layer knowledge. How is Istanbul finding a place in such a vast scheme?

Istanbul: Improvements accepted

Ethereum Improvement proposals are the primary vehicle to the government upon which the community of Ethereum depends wholly to keep the network moving ahead. In the core segment of protocol, some suggestions are made for initiating changes, such as smart standards for contracts and application programming interfaces for clients. 

Generally, time proposals are taken by the authors to target the hard folks specifically. A push is currently at a step to move ahead of the community towards an approach revolving around “EIP-centre” based on the system upgrade.

In Istanbul, the fork-center approach is still following wherein several proposals stand in different life cycle stages as pitched one and get review under the All Core Devs Calls. EIP is defined as the desired ones and ready to get accepted, not desired ones, or not prepared but desired ones by the developers. From the 38 presented EIPs, the inclusion stage took away only six from them. And another eight EIPs got approval for the forks of Berlin. Check out some accepted EIPs:

EIP-152: It involves bringing the verification ability for the Equitas POW (proof-of-work) algorithm in the contract of Ethereum. As a result, it enables Ethereum Blockchain and Zcash interoperability.

EIP-2200: It is useful in the “net gas metering” implementation. As a result, it can switch to the storage costing way calculation. It can also invite certain functions within the storage contract and eliminates any unnecessary costs.

EIP-2028: It reduces the data transaction calling cost. As a result, leading to improved network scalability and large blocks.

EIP-1884: It is among the most attention-paid proposal accepted so far. A lot of debate prevails around this EIP. As a result, it also leads to controversy in August 2020. Martin Holst (lead at Ethereum Foundation) introduced it and aimed to conduct a re-pricing over opcodes to balance the consumption of resources and expenditure on gas.It will result in affecting specific contracts revolving around some projects. Hubert Ritzdorf (a member of the ChainSecurity blockchain security firm) has taken out the most comprehensive agreements and put them together that might be affected. 

EIP-1108: It aims at reducing the costs over pre-compiled gas. It also aims at resulting in a non-interactive generation with no proof of knowledge.

In The Mind Of The Blockchain Developer: The Scalability Crisis

Have you ever thought about what exactly goes in the mind of a blockchain developer’? With the advent and advancement of technology each day, digital power is potent enough to transform everything in life. It has the capability to do almost everything out there.

Now comes the next question. Have you ever thought about what exactly happens when you spend time on social networking sites like Facebook, Instagram, Twitter, etc., the entire day? No. we are not talking about the physical repercussions today. These monopolies don’t really produce any sort of technology but clearly extract the value from us as much as possible.

And with that fact, many people basically recognize blockchain technology to disrupt these private monopolies, which is undoubtedly not the case. There has been no specific blockchain yet that hasn’t been able to surpass the existing one.

And even if it did, it Wouldn’t really have the capability to support the kind of incoming growth and adoption as a whole. Unfortunately, there is a whole large list of things that are missing right now and might change if the foundation is changed as per the requirements. Let’s dive into a bit more details regarding this and how to scale vertically.

What is vertical Scaling?

Vertical Scaling is basically how you manage the growth of a single bare node in a network. Blockchains are specified databases that never really discard the information. They are just added gradually. And as a result,this takes up a lot of space and memory, which can make the machine much inefficient.

Now to combat this, node operators usually rely on various hardware that is pretty expensive. They are usually the basic RAM or NVMe. This is what actually pushes the network participation beyond the grip of the ordinary people!

What about sharding?

Now comes one of the important features of a network. The Ethereum full node of 500 GB is still non-existent.  This truly complicated mechanism really needs to be added in there so that its blockchain can be broken and divided into bits and pieces. The computational resources can then be spent enabling the ‘shards’ which we were talking about till now. The shard will communicate with one another, and the computations will be done without any hassle!

Now the problem arises when you can’t use the aspect of sharding for horizontal Scaling. This is because blockchains are the main portions, and what determines the efficiency of the system is basically the parts inside the machine, which is quite known to us.

Blockchains are usually not the best with node resource management, and thus they are the best option for vertical Scaling but certainly not for the horizontal ones!

Conclusion

The discussion could be pretty long since the topic of blockchain is pretty vast, and to understand it better, it needs time and patience. But rest assured, the basics have been clear because this is quite a common topic and are really of great importance if you are in this arena.