Latest news and thoughts on Bitcoin and cryptocurrency

Month: November 2021

Is Bitcoin a safe haven for investors?

Crypto supporters argue that unlike the dollar or any other traditional currency, a digital coin is designed to have a limited supply, so it cannot be devalued by a government or central bank that would distribute too much of it.

At a time when most central banks in the world are “printing” fresh money and “pumping” it into the system to provide the necessary liquidity due to the crisis caused by the Covid-19 pandemic, it is expected that more money will lead to a decline in its relative value.

Inflation in the United States reached its highest value in the last three decades in October.

An increase in prices was recorded for both basic foodstuff and luxury goods.

The reason for this situation, in addition to “pumping” money, can be a constant lack of supply and high demand.

The US Secretariat of Labor announced that the October consumer price index, which measures how much consumers pay for goods and services, increased by 6.2% compared to last year.

It was the fastest 12-month growth since 1990 and the fifth month in a row with inflation above 5%.

This would mean that if inflation of 6.2% remained at the same level for 10 years, the current $ 100,000 would become $54,800.

This situation spreads concerns and burdens investors, forcing them to look for ways to preserve the value of their money.

The traditional way to protect against inflation is to invest in gold, but other ways have emerged in modern business conditions.

Cryptocurrencies are considered to be one of the most popular, with Bitcoin leading the way.

Bitcoin as a custodian of value

Cryptocurrency owners are in a unique position and benefit from these latest developments or at least gain refuge from them.

Namely, the decline in the value of fiat currencies, such as the dollar, has highlighted the dominance of Bitcoin and other altcoins when it comes to hedging against inflation.

Bitcoin has broken another record and is on the verge of reaching $69,000 for the first time after inflation data prompted arguments about Bitcoin as a custodian of value.

The largest cryptocurrency by market value rose as much as 1.9% to $ 68,991 last Wednesday, surpassing the previous high set at the beginning of the week in New York.

According to Bitcoin Stimulus, Americans who invested their $ 1,200 checks in April 2020 as part of a state support program in Bitcoin now have a BTC worth $12,172, an increase of 914%.

Crypto supporters claim that unlike the dollar or any other traditional currency, a digital coin is designed to have a limited supply, so it cannot be devalued by the government or the central bank that would distribute too much of it.

That is why Bitcoin and other cryptocurrencies can be good custodians of the value of money and a safe haven for all investors and traders.

Indonesia’s highest religious body bans cryptocurrency trading!

AFP reports that Indonesia’s highest religious body has declared that Bitcoin and other cryptocurrencies are banned under Islamic law and should not be traded in the world’s largest Muslim nation.

A powerful council of ulema has issued a fatwa, or religious edict, while trading in virtual currencies is increasing in Indonesia and elsewhere.

Fatwas have no legal effect in the country of Southeast Asia of 270 million, but the declaration could potentially convince many Muslims to avoid cryptocurrencies.

After Thursday’s meeting, the Council compared cryptocurrencies to gambling, which is haram, which is prohibited by Islamic law.

Cryptocurrencies as commodities or digital assets are illegal to trade because they have elements of uncertainty, bets and damage

religious decree chief Niam Sholeh told AFP.

It’s like a gambling bet

he said.

According to him, digital currencies are not tangible assets and their value can vary significantly, thus violating Islamic law.

Transactions in Indonesia, based on cryptocurrencies, amounted to about 370 trillion rupees ($26 billion) in the first five months of 2021, an increase from a year earlier, Trade Minister Mohammed Lutfi said in June.

The edict comes after the Central Bank of Indonesia said it was considering issuing its own digital currency.

In 2019, the Aceh Provincial Council branch issued a fatwa about the extremely popular but brutal online game PlayerUnknown’s Battlegrounds (PUBG) for fear of inciting real-world violence.

It recently issued a fatwa against online lending while announcing that COVID-19 vaccines are allowed under Islamic law, even if they contain pork products, which are usually banned for Muslims.

After the information about inflation in the USA, the fall in prices on the cryptocurrency market

Most cryptocurrencies are declining today.

According to the website Coingecko, the market capitalization decreased by 1.98 percent and amounts to 2.98 trillion dollars.

Bitcoin, which has reached its maximum value several times in the past few days, has fallen below $65,000 today.

It fell by 3.0 percent compared to yesterday, and it is currently traded at a price of 64,918 dollars.

Ethereum has lost 1.2 percent of its value and is currently trading at $4,672.

The fall in prices on the cryptocurrency market followed yesterday when the US Department of Labor announced that inflation, measured by the growth of consumer prices, jumped to 6.2 percent in October compared to the same month in 2020, to the highest level since December 1990.

After a few days of dormancy, the price of Bitcoin jumped again

The cryptocurrency market has seen a strong rise in prices in the last 24 hours.

The market capitalization has climbed 4.3 percent and currently stands at $3.01 trillion.

Bitcoin, the most famous cryptocurrency in the world, has increased its value by 6.6 percent in the last 24 hours and is currently traded at a price of 65,990 dollars.

Ethereum increased its value by 4% in the same period and is currently traded at a price of 4,741 dollars.

The bank predicts a huge jump in the price of Bitcoin

The largest American bank, JPMorgan, predicts that Bitcoin could jump to 146,000 dollars in the long run, if volatility subsides and institutions start to prefer Bitcoin more than gold in their portfolios.

That is approximately 130 percent more than the current price of Bitcoin, Business Insider writes.

JP Morgan also believes that Bitcoin, which is also a rare product, is increasingly gaining gold for investors’ attention as protection against inflation, ie as something that will grow even when inflation destroys the value of other assets.

The re-emergence of inflation concerns among investors during September and October 2021 seems to have renewed interest in using Bitcoin as protection against inflation

said JP Morgan strategist Nikolaos Panigirtzoglou.

They discovered a Bitcoin scammer, pretending to be Elon Musk

Despite Facebook’s efforts to prevent the verification of suspicious popular accounts, the social network misses malicious content from time to time.

According to The Verge, the social network mistakenly verified the Facebook page for Elon Musk’s fans and characterized it as Musk’s official account.

In addition, it turned out that the site was run by a fraudster in the sphere of Bitcoin.

The site had more than 150,000 followers by the time the activity ceased.

In the meantime, it has been confirmed that this is not the official page of Elon Musk, but a page for fans.

The people who ran the site are stationed in Egypt.

While it was active, the site posted 11 posts, most of which were retweets by Musk from Twitter.

Among the announcements is a fake prize game for Bitcoin.

It is interesting that the page was created on July 28, 2019, and in the meantime, it has changed several names.

The name change to Elon Musk was made on October 17 this year.

Facebook’s verification process requires account holders to provide proof of their identity, but fraudsters often manage to find ways to circumvent official procedures.

Bitcoin has touched new records

Cryptocurrencies marked October, and Bitcoin broke new records.

October was not only marked by new stock market records but was also marked by Bitcoin.

The most popular cryptocurrency entered the month at levels below $44,000, and last night it was worth a good $61,000.

This is an increase of almost 40%, which would have been even higher if the record(on October 20, BTC reached 67 thousand dollars) had not been accompanied by a downward correction.

The crypto market is looking forward to new records, mostly due to the start of the listing of the ETF fund ProShares Bitcoin Strategy(which trades futures on Bitcoin) on the world’s largest stock exchange in New York(NYSE).

The ETF offers investors who do not want to open their cryptocurrency accounts exposure to Bitcoins or terms traded on the Chicago Mercantile Exchange CME.

The second-largest cryptocurrency, Ether, also experienced high(almost 50 percent) growth in October, reaching a record $4,455 on Friday.

On Wednesday, the Ethereum network received an upgrade called Altair, which is another important step for the final launch of the Ethereum 2.0 network, which will(probably next year) be based on the PoS mechanism(Proof-of-Stake) instead of the PoW mechanism (Proof-of-Work), which means that users will confirm transactions according to the number of coins they own.

Currently, transactions are confirmed by miners who are competing(just like in the Bitcoin chain) to be the first to solve complex mathematical cryptographic equations, which, however, provokes considerable criticism due to high energy consumption.

Switching from the PoW model to the PoS model would reduce the environmental footprint by as much as 99 percent!

In August 2020 Buyed Shiba Coins For $3,400: They are now worth $1.55 billion!

The owner of one crypto wallet had a flair for investment when he invested $3,400 in Shiba Inu(SHIB) coins last year. Today he is a billionaire.

In addition to the mentioned investment, the person who owns the mentioned crypto-wallet had other transactions when it comes to SHIB coins with a total investment of about 12,000 dollars.

The smart investment grew, and the owner did not sell SHIB coins, which are worth about 5.63 billion dollars today. Yes – billions.

How mature is the market?

One of the questions that arise is whether the cryptocurrency market could receive such a large amount of Shiba Inu coins, because the total market capitalization of Shiba Inu coins is a little less than 40 billion dollars, and this wallet contains one-seventh of all coins in circulation.

At the time of purchase, the user exchanged $3,400 in wETH(Wrapped Ethereum) coins for Shiba coins.

To remind, Shiba was created after the Dogecoin cryptocurrency as a meme coin, with no real use-value.

Let us remind you, the price of a coin meme depends exclusively on its popularity, and not on some real application, as is the case with Bitcoin and Ethereum cryptocurrencies.

Meme popularity

The first big jump, Shiba Inu cryptocurrency had when Elon Musk showed off his Shiba Inu dog, to have huge growth after that.

Shortly after the presentation, the founder of Shiba Inu coins sent half of the total number of coins to the co-founder of the Ethereum Foundation, Vitalik Buterin, who, after forwarding part of the money to charities, “burned” the rest (90%), sending it to a dead blockchain address.

Vitalik justified this decision by stating that he did not want to have control of that scale in his hands and that it was, therefore, better to give it up.

She jumped over DOGE

According to the latest state of affairs, SHIB has definitely overtaken DOGE when it comes to market value, and is now in 9th place, right ahead of its biggest competition.

Exchange offices and NFT

There are at least two reasons why the SHIB coin has a growth trend.

One of the most important factors is certainly the listing of Shiba Inu cryptocurrency on large exchange offices in the last few months.

Add to that the fact that one of the largest providers of cryptocurrency payments – NOWPayments has added SHIB coins to the list of supported, and here are additional reasons to increase the demand, and thus the price of SHIB coins.

The Shiba Inu development team has launched its line of NFTs called Shiboshi, which means another aspect of the demand for 10,000 NFTs that users pay for with SHIB coins.

When you combine these two factors, the growth of Shiba coins seems completely justified.

And the reason more that it is wise to invest in cryptocurrencies early and resist that urge to sell them as soon as the first growth starts.

Squid Game Cryptocurrency Grown 300,000% in a Few Days

Unlike the TV series, the company behind Squid Game cryptocurrency says online tournaments are not dangerous for players.

Cryptocurrencies that emerge as a result of something popular, such as the Korean TV series that has become a global phenomenon, are very often very popular with early investors.

For example, if you only had a Squid Game token (SQUID) worth only $1 four days ago, you could exchange it for $3,000 this morning.

The price of SQUID coins was 1.2 cents, or 0.012 dollars, on October 27, and its value this morning(October 31) reached an incredible 35 dollars, which is a jump of almost 300,000%.

The great growth of this cryptocurrency started on October 28 and will continue on October 29 and 30. to reach $35, the value at which it is now sold.

On the other hand, SQUID is still not listed at any major exchange office, and many of them have stated that the SQUID token has not passed the verification process and that you need to be careful when investing, as there is a high probability that it is a fraud.

Such a large growth has not been noticed in the crypto world for a long time, so the craze for SQUID coins has become the number one topic overnight.

Play to Earn

Instead of the classic cryptocurrency digging system, Squid Game tokens can be bought or earned by playing online games in which you get tokens as a reward, which can then be exchanged at exchange offices for other cryptocurrencies or money.

The huge jump in the price of the SQUID token is most likely due to the fact that the start of the first online tournament is scheduled for November 1, which is tomorrow, so an additional jump is expected when earning money in the tournament.

To participate in the tournament, you need to invest SQUID tokens, so it is not surprising that due to high demand, the price of tokens jumped sharply.

The more people participate, the bigger the prize pool will be, according to the SQUID token manifesto, adding that 10% of the investment will be sent to the development team’s wallet, while 90% will be added to the prize pool for the tournament winner.

As in the series, there can be only one tournament winner, but, according to the company behind the SQUID cryptocurrency, unlike the series, other players will stay alive.

As in the series, the tournament starts with 456 participants, and five games from the series are played: red light – green light, needle shape cutting, tug of war, marbles, skipping boards, and Squid Game.

How to buy SQUID

The SQUID token can be purchased at decentralized cryptocurrencies such as SushiSwap or Pancakeswap, but before that, you need to buy another cryptocurrency at a large exchange to replace SQUID.

For example, go to Binance or CEX, buy Bitcoin, Ethereum, BNB, or some other coin in the value you want to buy SQUID tokens.

Create a new wallet on Trust Wallet or MetaMask, and then transfer the purchased cryptocurrencies to it.

After that, you need to connect that wallet with one of the above-mentioned exchange offices (SushiSwap or PancakeSwap) and exchange the cryptocurrencies you have there for Squid tokens.

Too good to be true?

Although the SQUID token grew tremendously in just a few days, a large number of users reported a problem with selling their tokens because they could not sell them and exchange them for other cryptocurrencies.

Several things point to the problem: the manifesto is full of grammatical errors, the team that develops this token is completely unknown in the crypto-community, and the official website says that Elon Musk supports this cryptocurrency, which turned out to be incorrect.

Pump and dump

The large rise in the price of these tokens may also be the result of new investments by initial investors who want to protect their investments and prevent the classic “pump and dump” tactics, very popular with new cryptocurrencies.

While we can’t tell you to buy a SQUID token or not to buy it, know that no one has ever gotten rich in the crypto world by playing it safe and that the riskiest cryptocurrencies always bring astronomical profits, but also the same losses.