Open contracts in Bitcoin Futures spiked to new highs before Coinbase listed on the Nasdaq

Open contracts (OI) in Bitcoin futures rose to new record highs before Coinbase listed on Nasdaq on April 14.

Cryptocurrency market data aggregator Glassode says that Bitcoin’s open contract exceeded $ 27 billion for the first time as Bitcoin rose to a new record high above $ 64,500. This milestone shows that traders may be hoarding at higher prices, although some are also hedging against the coming volatility.

The market share of these traders’ trading activity is on Binance, where $ 5.2 billion for positions accounts for nearly 20% of all prominent positions being held on an exchange. Followed by Bybit at $ 4.66 billion, OKEX with $ 3.75 billion, and then by Huobi, FTX, and CME with around $ 3 billion each.

Although open contracts hit record levels, Bitcoin futures volume appears to have declined over the past month, dropping from $ 117 billion on March 15 to fluctuating from $ 50 billion to $ 75 billion in April, according to crypto derivative data aggregator, Skew.

The declining volume may indicate traders becoming more and more cautious about opening new positions as Coinbase’s listing date is drawing near, with record open contracts possibly representing positions already opened in weeks and months before that.

Of the $ 75 billion BTC Futures that have been swapped over the past 24 hours, Binance accounts for more than a third of the volume with $ 26.9 billion, followed by Huobi with $ 14.5 billion, OKEx with 12.7 Billion dollars and Bybit with 10.6 billion dollars.

In contrast, open contracts in Bitcoin options have declined since the expiration of $ 6 billion in late March. The volume of options has increased in April, with data showing that many traders hedged their positions when billions of dollars were raised to protect from a crash to $ 40,000 last week.

Bitcoin is not the only market where derivatives traders are speculating, with open contracts on Ethereum futures also skyrocketing to a record high of $ 8 billion as trading volume increased over the weeks. recently.

Ethereum’s options markets have also seen an increase in activity, with open contracts pushing to a 30-day high of nearly $ 3.2 billion. Ether option volume increased by 90% overnight, rising from $ 200 million to $ 380 million.

However, many Ethereum traders seem to be looking beyond Coinbase’s listing this week, with analyst Cantering Clark noting that substantial volume is targeting prices above $ 3,200 by the end of June.

Bitcoin father Satoshi Nakamoto is currently in the Top 20 richest people in the world

According to Forbes Magazine’s 2021 billionaires list, Satoshi Nakamoto, the inventor of Bitcoin is also one of the richest people in the world. At current Bitcoin prices, data shows that if Nakamoto had 1 million BTC, he would be in the top 20 richest billionaires in the world.

The father of Bitcoin is a member of the 1% group.

The mysterious creator of the Bitcoin project has yet to be revealed and there is very little information regarding the identity of the inventor or group of inventors.

However, it is well known that Satoshi Nakamoto helped launch the network, sticking with the community until 2010. It is estimated that Nakamoto holds at least 750,000 to 1.1 million BTC since mining in the early days.

Plus, Satoshi never spent the block reward gathered during the first year Bitcoin launched. At the current exchange rate, Satoshi Nakamoto is a “genuine giant” with a fortune of more than 60 billion dollars.

This is evident if Satoshi Nakamoto has access to around 1 million BTC, which is more than $ 60 billion, excluding forks he owns. Nakamoto’s BCH is worth more than $ 650 million and BSV is worth more than $ 250 million. Satoshi Nakamoto also has access to 1.1 million BTG and all other forks in existence if the inventor has a private key.

With just the amount of BTC, this number is enough to put Satoshi Nakamoto in the top 20 positions, according to the list “Billionaires of 2021 by Forbes”. Satoshi is right above the financial media tycoon Michael Bloomberg (20) and Rob Walton (20) – the eldest son of Walmart founder Sam Walton.

Nakamoto climbed from the 159th richest person in the world to 19th in just 5 months

Bitcoin father would be in 19th place using the current BTC rate, and with the respective rates of forks like BCH, BSV and BTG, he is still a bit worse than Jim Walton – another son. of Sam Walton, founder of Walmart.

In fact, Satoshi Nakamoto is slowly moving towards Jeff Bezos’ No. 1 but what level does the BTC price need to be to get there? With a net worth of more than $ 60 billion, Nakamoto is still not a centibillionaire (Those with assets over $ 100 billion) and BTC still has plenty of opportunities to help its father shorten the gap with Bezos and Elon. Musk.

It is no exaggeration to believe that Satoshi Nakamoto could be in the position of Bezos, as the Bitcoin inventor held the 157th richest person position worldwide in October 2020 and became a member of the top 20 billionaires just after. Five months is not a simple story, but Satoshi has done it.

Bitcoin’s Pi Cycle Top indicator shows that the market is overheating

Bitcoin’s Pi Cycle Top indicator has signaled for the first time since the end of the 2017 bull run.

The indicator’s two moving averages (DMA) have crossed again and signaled a potential end to the bitcoin bull market.

Today we are going to analyze a few more factors to see if a bearish bitcoin scenario is possible.

Pi Cycle Top

Yesterday, bitcoin (BTC) hit its highest-ever weekly close above $ 60,000 a bit. Today, it made a new high of $ 63,100 after a month of trading below $ 60,000.

However, the new all-time high could be the peak when the Pi Cycle Top indicator flashes. Pi Cycle Top was formed when the 111-day MA moved up and crossed the 350-day MA x 2. When this signal flashed in history, the peak for bitcoin was confirmed.

At press time, bitcoin is trading at $ 63,051.


Weekly BTC / USD chart

The previous vertices

So far, the Pi Cycle Top indicator has signaled three cycle peaks – twice in 2013 and once in 2017. In any case, Bitcoin’s price will peak within five days of the signal. Fort.


Daily BTC / USD chart

Historically, almost immediately after the Pi Cycle Top, a bear market lasted for several years. During these cycles, bitcoin typically loses about 80% of its value over the years to come.

Is the bull market over?

If Bitcoin reaches the top of the current cycle today or in the coming days, an 80% correction will bring the price back to the $ 12,000 zone.

This is a move to bring prices below a 2017 high of $ 20,000. So far, this has never happened in the history of Bitcoin cycles.

Also consider Bitcoin on-chain analysis. As the Bitcoin Journal reported, there are no major Bitcoin indicators that suggest Bitcoin has peaked.

On the contrary, the majority of indicators show that Bitcoin has a lot of room to move higher. The supply of BTC is continuously decreasing on exchanges. HODL waves, Reserve Risk and Hodler Supply are some of the most important indicators of on-chain analysis. Currently, there aren’t any features that suggest the market has peaked.

Conclude

The Pi Cycle Top indicator flickered, indicating that bitcoin could be nearing the end of its bull market.

However, no signals from other technical indicators or on-chain agree with this result. By contrast, most of the major indicators that have marked historical peaks are far from such pessimism.

If we can assign any meaning to the Pi Cycle Top indicator, then it just shows that the market is getting too hot. This may be a signal that a relatively small correction, about 20-30% may be coming to keep the macro structure of the uptrend.

Outline of investor groups

Bitcoin’s recent volatility in value is just a series of the newest and breathtaking highs and lows since it was created in 2009. (Despite its recent fall, BTC is still five times higher. times since April 2018, before making a new peak).

Critics often boycott Bitcoin buyers, seeing them as innocent victims of the fraud bubble. But if we look carefully, we can follow the history of Bitcoin price through 5 perspectives. Each aspect reflects a different group of buyers and their contribution to long-term value growth.

Idealists

Bitcoin grew out of a small group of cryptologists trying to solve the “double spending” problem of digital money: “cash” stored in a file format can be easily copied and used over and over again. This problem is easily resolved by financial institutions, but cryptographers want a solution more like physical money: private, untraceable, and independent from third parties like the row.

Satoshi Nakamoto’s solution is the Bitcoin blockchain, an encrypted, secure public wallet that records anonymous transactions and stores it in multiple copies on multiple computers. This early Bitcoin feature is described in Nakamoto’s original White paper. It argues that Bitcoin will dominate existing forms of cryptocurrencies such as credit cards, which are more advantageous in limiting reverse fees on buyers and reducing transaction fees.

Liberalism

From the very beginning, Nakamoto also promoted Bitcoin as a freelance audience. He did this by emphasizing the lack of central government involvement and the independence of Bitcoin itself from both government and financial institutions.

Nakamoto criticized the central bank for devaluing the currency by issuing more money, and designed Bitcoin to have a finite amount at issue. He also emphasized the anonymity of Bitcoin transactions: safe, albeit more or less safe from the prying eyes of the authorities. Liberals become ardent buyers and advocates of Bitcoin, not rebels for financial reasons. They have maintained a major influence in the Bitcoin community.

Young understanding

However, these are still small elements, and Bitcoin only really took off in July 2010 when a brief article on Slashdot.org was addressed to young and tech-savvy people. This community has been influenced by the “Cali Idea” – which believes in the ability of technology and entrepreneurship to change the world.

Many people have bought small quantities at low prices and are also a bit hesitant to find themselves again as their investments have multiplied. They are increasingly volatile by its price and generally favor holding Bitcoin (Holder). Holder insisted that the Bitcoin price would “to the moon” (from being said 178,000 times in bitcoin forums), and said he would take the lamborghini cars from the profits. Unreasonable taxation hurts the community, and a commitment to holding Bitcoin maintains its value.

Investors

The remaining two groups contribute to the history of Bitcoin in a more conventional manner. The fourth group includes investors who are attracted to Bitcoin’s volatility and price peaks.

On the one hand, we have day traders who want to exploit the volatility of Bitcoin’s price by buying and selling very quickly to take advantage of short-term price moves. Like all investors in other asset classes, they have no real return in the big picture or intrinsic value but just the price of the current day. They only have the extreme “buy” and “sell”, in order to try to influence the market.

On the other hand, we have people drawn by price bubble news. In essence, the category of bubbles in the press is often designed to discourage investors from potentially having the opposite effect. These investors are only interested in what others are about to pay Bitcoin for in the short to medium term.

Those who balance categories

The last and newest group for Bitcoin investors are portfolio balancers: more complex investors buy Bitcoin to prevent potential risks in the financial system. According to modern portfolio theory, investors can reduce the risk of their portfolios overall by buying Bitcoin because its top and bottom are not in line with their other assets. This is how to protect when the market collapses. This group is emerging, but it could boost Bitcoin’s acceptability among mainstream investors.

Bitcoin’s price will thus be shaped on a series of aspects that it draws from the wave of buyers’ success. While mainstream critics often boycott Bitcoin because it lacks intrinsic value, the market value of the asset depends on the handling of such aspects.

Bitcoin may collapse again, but like any other asset. Investing in Bitcoin also can’t risk more or less than investing in tech companies that are on the stock exchange without ever making a profit.

How many Bitcoin millionaires are there by 2021?

On a crypto show, host Jessica Walker answered the question: How many Bitcoin millionaires are there? She will also take a look at some of the most famous Bitcoin billionaires.

As the price of BTC continues to soar, the “hodler” cannot help wondering how much money they will have if they invest earlier. But among those who have done so, how many Bitcoin millionaires do we have?

The number of millionaire hodlers increased sharply

Since Bitcoin started the cryptocurrency revolution in 2009, the space has grown significantly. The growing level of adoption is what propelled the price of BTC to almost $ 62,000 earlier this month.

According to crypto data tracking company BitInfoCharts, there are currently more than 100,000 people with at least $ 1 million or more stored in BTC. This is up from the 25,000 BTC level of millionaires four months ago. A year ago, there were only 15,000 Bitcoin millionaire accounts.

Keep track of wallets holding lots of Bitcoin

There may also be some anonymous Bitcoin billionaires. As of January 2021, 25 individual BTC addresses hold more than $ 1 billion, according to BitInfoCharts. Five of them belong to exchanges: Binance, Bitfinex, Bittrex, CoinCheck, and Huobi. Additionally, some “hodlers” may choose to keep their BTC in various addresses, such as the Winklevoss twins.

While many BTC billionaires will likely remain anonymous, some are contributing a lot to the development of the crypto market. Here are some of the top names.

Micree Zhan

Although not recognized by name, but Micree Zhan is actually the richest BTC billionaire known. His net worth in Bitcoin was calculated to be around $ 3.2 billion as of January 2021. Zhan is the co-founder of Bitcoin mining hardware maker Bitmain.


Micree Zhan – Co-founder of Bitmain

Chris Larsen

Chris Larsen is the second richest BTC billionaire known with a net worth of $ 2.7 billion. Larsen is the co-founder and executive chairman of Ripple. However, his assets could be at risk as he is currently being sued by the US Securities and Exchange Commission (SEC).


Chris Larsen – Ripple President

Michael Saylor

Although Michael Saylor owns only $ 600 million in crypto, he holds a $ 1.2 billion stake in MicroStrategy. Saylor is the company’s CEO and the company has been actively buying Bitcoin since August 2020.


Michael Saylor – CEO of MicroStrategy

Changpeng Zhao

Binance’s founder and CEO has also made quite a bit of money since the exchange launched in 2017. As of 2021, Changpeng Zhao is now worth $ 1.9 billion, according to Forbes.


Changpeng Zhao – CEO of Binance

Tim Draper

Tim Draper is a well-known investor, making some wise acquisitions in the 1990s and 2000s. In 2014, he bought nearly 30,000 Bitcoins from the US Judicial Police during an auction. production of the dark web Silk Road. His crypto vault is worth $ 1.1 billion.


Tim Draper – Investor

Brian Armstrong

Brian Armstrong is currently the youngest known crypto billionaire at the age of 37. He joined the crypto space in 2012, becoming a co-founder of San Francisco-based exchange Coinbase. His estimated net worth is $ 1 billion.


Brian Armstrong – CEO of Coinbase

Matthew Roszak

Matthew Roszak is a co-founder of blockchain infrastructure provider Bloq. He bought his first Bitcoin in 2012. His crypto net worth is estimated at $ 1.2 billion.

Matthew Roszak – Co-founder of Bloq

Tyler and Cameron Winklevoss

Using the money from the settlement with Facebook, the twins became early investors in Bitcoin. They are also the founders of the Gemini exchange. The Winklevoss Brothers are holding around $ 1.4 billion worth of Bitcoin each.


Tyler and Cameron Winklevoss – Co-founders of the Gemini exchange

Satoshi Nakamoto

Bitcoin creator Satoshi Nakomoto holds far more BTC than the rest. While potentially a pseudonym, anyone who owns an address related to him has $ 40 billion in Bitcoin.

Bitcoin mining difficulty hit an all-time high when new mining equipment was delayed into operation

Bitcoin’s mining difficulty hit an all-time high after rising around 6%, a move after a record month in revenue for Bitcoin miners when the new generation ASIC came into operation.

Difficulty is a relative measure of the amount of resources needed to mine Bitcoin. This measurement increases or decreases depending on the amount of power consumed or the hashrate generated by the network at a given time. Bitcoin is programmed to adjust its difficulty every 2016 blocks or roughly every 2 weeks to ensure that new blocks are mined at a steady rate.

This difficulty was measured on a relative scale when Bitcoin launched with a mining difficulty of “1”, the lowest level ever. (Difficulty works like a Google Search score in that the scoring system is internal and has no external reference point or unit of measure.)

As of today’s correction, Bitcoin’s mining difficulty at the moment is 24.5 trillion. According to data from BTC.com, this is a 6% increase from 21.8 trillion, making it the 2nd largest correction of the year and the 5th increase in six periods of medium difficulty adjustment. by.

Difficulty adjustment is arguably one of Bitcoin’s most important features as it ensures relatively stable block times, while also preventing a large miner from taking up too many hashrates.

New ASIC coming into operation leads to increased difficulty and hashrate

This latest adjustment is a notable change, said Compass CEO Whit Gibbs, because it could be because tens of thousands of new mining devices that have been pre-ordered in the ASIC supply chain are about to come in. work.

The current correction, he said, is just a sampling step of the hashrate flood that will come online in 2022, when more pre-order shipments are filled.

“Today’s moderate increase in difficulty is not surprising. I hope that’s just a bit of what’s to come by the end of this year and in 2022, when delayed batches of mining equipment begin to arrive and roll out. The pending hashrate flood is about to enter the market, which will only continue to push Bitcoin’s mining difficulty higher, which will watch along with Bitcoin’s price.

As the price of Bitcoin skyrocketed, investments in mining also went with it. Miners in North America such as Hut 8, Marathon, Blockcap and others have used the year 2021 as an opportunity to drastically expand operational capacity. As the miners go live, Bitcoin’s hashrate and difficulty are increasing along with miners’ revenue, reaching a record $ 1.5 billion in March.

Bitcoin mining revenue hit a record $ 1.5 billion in March

With Bitcoin’s price setting an all-time high in March, miners have benefited greatly.

According to a recent report by blockchain analytics firm Arcane Research, Bitcoin miners received more than $ 1.5 billion in Bitcoin block bonuses and fees last month.

Although mining revenue decreased at the end of the month due to reduced transaction volume, the total sales for the month still set a record.

The end result is close to the prediction from mid-March, when blockchain data firm Glassnode reported that miners were earning an average of $ 52.3 million per day. Record turnover for the day was $ 64.7 million on March 14, the day after Bitcoin’s price hit a new all-time high of $ 61,683.

Mining is how transactions are added to the Bitcoin blockchain. Miners often coordinate with larger miners using specialized equipment to run Bitcoin software. This process provides the network with security as miners lend their computing power to solve cryptographic puzzles. Miners who solve the first puzzle can validate a new batch or block of transactions and receive the newly mined Bitcoin, plus any transaction fees people paid to help boost their transactions. Online.

Currently, miners receive a block reward of 6.25 BTC with a new block mined every 10 minutes. What may be surprising is that the block rewards have been higher. From July 9, 2016 to May 11, 2020, miners earn 12.5 BTC for each block mined. For the previous four years, it was 25 BTC, and for almost the first four years of Bitcoin’s existence the block reward was 50 BTC.

That said, Bitcoin mining revenue is increasing despite the drop in block rewards, shrinking supply has pushed the price up. Indeed, price is the main reason to increase sales. Transaction fees play a much smaller role, with average fees falling in March due to a drop in the number of transactions, according to statistics from Blockchain.com.

Transactions are confirmed every day

Sales are, of course, not the same as profits. But mining profits have been steadily increasing since October 2020, according to statistics from BitInfoCharts. In March, it hit its highest level since July 2019.

Seven reasons why Bitcoin will hit $ 90,000 this year

It sounds crazy, especially when looking at Bitcoin’s skyrocketing gains over the past year, but analysts at Entrepreneur media think there are some huge motivations for Bitcoin to surpass $ 60,000 and $ 70,000 on the road to reach $ 90,000.

The main factors driving Bitcoin to rise in price are increasing usage, increasing hashrate and diminishing supply, but there are a few other factors.

Bitcoin is increasingly expanding its reach across economies and the demand is growing exponentially. Here are 7 reasons analysts believe Bitcoin will skyrocket during the year.

Goldman Sachs starts offering cryptocurrencies

Investment bank Goldman Sachs announced the start of offering Bitcoin and other cryptocurrencies to wealthy customers in the second quarter. Although not limited to Bitcoin, this news is a huge boost for it as well as for the entire crypto market. Goldman Sachs is currently the second largest bank on Wall Street to offer digital assets and may not be the last. With more than $ 1,800 billion in assets under management, it wouldn’t be difficult for Goldman Sachs to move the Bitcoin market.

Paypal accepts cryptocurrencies for payment

PayPal emerged in the crypto space last year when it started facilitating ownership of Bitcoin, Ethereum, and other major coins. Now, the company is increasing its impact on the market by allowing customers to use cryptocurrencies to pay for services. Now, Cryptocurrency Checkout will automatically appear as an option for those holding digital assets. The service will automatically convert digital currencies to fiat upon payment, making it the easy and unified method of using Bitcoin as we know it. PayPal has over 300 million customers and 20 million active merchant accounts.

CME Group launches Micro Bitcoin futures contract

Waiting for regulatory approval, CME Group launches a new Bitcoin futures contract that will be worth just 0.1 BTC, allowing institutions and traders another method to protect ownership of cryptocurrencies. and profit from short-term price movements. The bottom line here is that there is enough demand for the product to accelerate the development process.

“Since the launch of our Bitcoin futures in 2017, we have seen steady, continuous growth in liquidity and market participation in cryptocurrency derivatives. company, especially among institutional investors. The introduction of Micro Bitcoin futures directly responds to the need for smaller scale contracts from many customers and will provide more choice and accuracy in how participants can transact. Bitcoin futures contracts are regulated transparently and effectively at CME Group ”, said Tim McCourt, Global Director of Equity Index and alternative investment products of CME Group.

Chipotle Mexican Grill promoting Bitcoin

Chipotle Mexican Grill (is an American fast food brand that specializes in tacos and burrito. , Germany and France) are using Bitcoin as a way to connect with a young group of customers. The company will launch the game “Burritos or Bitcoin” next week and will give away up to $ 100,000 in Bitcoin with 3 winners of bigger prizes over $ 25,000. Other winners will receive Burritos (a side dish in Mexican and Tex-Mex cuisine consisting of a flour tortilla wrapped in a sealed cylinder around different ingredients. to soften it, make it more pliable and allow it to adhere to itself when wrapped) but that’s not the problem. The problem is that Bitcoin is attracting the attention of businesses and investors of all levels and is seen as a means of attracting business.

Mogo Inc launches cashback mortgage in Bitcoin

Mogo Inc is a Vancouver Canada-based fintech, founded in 2003 by David Marshall Feller. The company offers personal loans, identity fraud protection, mortgage, Visa prepaid cards and credit score viewing via Equachus. The company already supports the purchase and sale of cryptocurrencies, and the refund feature will now apply to mortgages. New offers of up to $ 3,100 in Bitcoin bonus accounts for those who use the app as collateral. The main attraction for Mogo users is a Bitcoin reward that has a tangible value outside of the Mogo app and can increase in price over time.

US President Joe Biden announced a huge new stimulus package

US President Joe Biden on March 31 announced a massive $ 2,300 billion infrastructure investment plan.

Speaking at the training center of the Pittsburgh, Pennsylvania carpenter’s union, Mr. Biden promised the results would be as massive as the New Deal or other economic stimulus programs that shaped America. 20th century.

“This is a one-time investment in a generation, unlike anything we’ve done since the construction of the federal highway system or the space race decades ago. ”Mr. Biden said. “This is the largest investment package in American jobs since World War II, will create millions of high-paying jobs.”

“I believe if we act now, then in 50 years people will look back and say this is the time when America won its future,” Biden said.

In addition to the infrastructure bill, in the coming weeks, Mr. Biden will also push another bill of similar size, to invest in household support programs, such as childcare services. This bill has a scale of nearly $ 2 trillion, and the money will come from high-income families and individuals.

According to AP, spending money on infrastructure can bring economic growth, but how much growth is always a controversial topic. For example, travel or freight times will be shortened, public health improves, and construction jobs will promote personal consumption.

Democrats welcomed Mr. Biden’s plan, while Republican leaders criticized Mr. Biden for wanting to raise taxes. Republican leader Senator Mitch McConnell stressed that no Republican congressman would support President Joe Biden’s $ 2,300 billion infrastructure investment plan.

Democrats, however, control the bicameral Congress of the US Congress, so President Joe Biden could easily win this time. And like every other time in history, this will help Bitcoin’s price skyrocket.

Bitcoin technical bullish outlook

Bitcoin may be nearing an all-time high before that, but we don’t think it’s still there yet. In our opinion, the past few months have produced a bullish sign on the weekly chart, which could take Bitcoin as much as $ 90,000 in a short period of time.

Let’s say we’re right and Bitcoin validates this pattern, the giant $ 30,000 flagpole model, placing price action right at the $ 90,000 mark.

Microsoft launches Bitcoin’s blockchain identity platform

Computer software giant Microsoft is currently launching a decentralized identity network on the Bitcoin blockchain.

Microsoft chose Bitcoin

The world’s most famous computer software company Microsoft has revealed the launch of its own decentralized identity platform built on the Bitcoin blockchain. The platform, called ION, is the software giant’s attempt to provide decentralized identity applications in the digital world.

Microsoft says ION is the culmination of a four-year journey of “helping to develop and enhance decentralized identity”. They also say that this emerging technology in the space will empower individuals as well as create many new business opportunities.

With that, Microsoft has deployed an ION node into the production infrastructure to support this fledgling network. Furthermore, the company says it is partnering with a number of companies to support setting up further nodes.

According to Microsoft, the ION is not dependent on trusted parties, validators or governance tokens, but responds directly and only to its users. Furthermore, the network is open source by default and user friendly, anyone can run a node on their network.

Even with this launch, Microsoft still affirms that this is just the beginning of the journey, with a vision of a truly “decentralized web”.

A cautious giant

Despite its enthusiasm for decentralized identity spaces, Microsoft is more cautious towards other blockchain technology applications.

According to the source, Microsoft President Brad Smith raised doubts about whether private companies should have the authority to issue currency.

He draws his view from the suggestion that this is essentially a matter of public interest, in which governments are the only parties who can fully represent that interest.

“The money supply needs to be managed by an organization that is accountable to the public and with only the public good in mind. Thus, it can only be governments, ”said Brad Smith – Microsoft Chairman, emphasizing that Microsoft will not release digital money anytime soon.

If we use Microsoft founder Bill Gates’ attitude toward the crypto space as an indicator, it will take some time before Mircosoft comes to mind. Gates famously said in 2018 that he would “short Bitcoin” if possible.

Bitcoin’s blockchain regaining its form?

However, Microsoft also supports a number of blockchain-based projects (each with its own cryptocurrency) through the Microsoft Azure Cloud cloud service.

ION’s launch event will likely draw more attention towards Bitcoin’s blockchain-specific use. While it’s not uncommon for projects to use Bitcoin’s blockchain, Ethereum remains a necessary destination for the budding decentralized applications (dApps).

Even so, in recent months, Ethereum has faced criticism over its insanely high gas fees affecting projects. Ethereum-based decentralized Uniswap exchange, for example, is competing with competitors who are not active on the network, such as Binance Smart Chain’s Pancakeswap.

While Bitcoin’s blockchain is currently not necessarily more scalable than Ethereum, being willing to test Ethereum’s fees could actually encourage the Bitcoin scalability problem discussed long ago among developers. .

In short, Bitcoin’s blockchain could regain its form as a destination for dApps.

Grayscale Bitcoin Trust (GBTC) premium fell to its lowest level ever

Since trading negative for almost 2 months, the Grayscale Bitcoin Trust (GBTC) premium has plummeted to -14.21%. Historically, GBTC has been trading with a high premium relative to base Bitcoin, hitting an average premium of 15.02% since the fund’s inception. But as competition increased and companies created cheaper, more accurate financial products, GBTC’s appeal dropped significantly. Its premium is clear for that.


Premiums GBTC | Source: Glassnode

Why does the Grayscale Bitcoin Trust premium continue to decline

By the end of 2020, when the price of Bitcoin nearly doubled, investors were willing to pay a hefty premium for exposure to the major cryptocurrency. This resulted in a sharp increase in the cash flow, leading to the number of GBTC shares soared to 692 million at that time. However, the fund does not allow conversion or redemption, meaning stocks can only be created, not destroyed.

This is not a problem as GBTC’s market demand allows for a continuous increase in GBTC’s supply. But with Bitcoin’s recovery currently struggling, there is a clear imbalance between supply and demand. This is exacerbated by profit-taking organizations, as their six-month cutoff period ends.

Another reason why the Grayscale Bitcoin Trust premium continues to decline is due to the launch of new financial products based on Bitcoin and exchange-traded funds (ETFs).

Major investment banks like Goldman Sachs and Morgan Stanley started offering Bitcoin futures products earlier this year, with other banks also showing their interest. Just yesterday, asset management giant Fidelity filed with the SEC to create its own Bitcoin ETF fund for US investors. With sky-high management fees and massive price slippage that undermine the fund’s credibility, GBTC is sure to lose to newer, more efficient funds.

Nate Geraci, Chairman of the consulting firm ETF Store, shared his thoughts on the matter: “The annoyance for GBTC investors is that competition erodes demand for the product, may lead to lower premiums or even discounts ”. While the Grayscale Bitcoin Trust retains its title as the largest Bitcoin fund with an estimated $ 11 billion of assets under management (AUM), it seems only a matter of time until the fund goes wrong. time.