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.

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.

The first African country to introduce a digital currency

Nigeria is experiencing a boom in interest in cryptocurrencies.

Nigerian President Muhammadu Buhari has introduced the digital currency, eNaira, in Africa’s largest economy seeking to take advantage of the growing popularity of virtual money and cryptocurrencies.

With eNaira, Nigeria became the first country in sub-Saharan Africa to launch a digital currency, joining China and several other countries that use or whose central banks are preparing regulations to introduce a digital currency.

We became the first country in Africa and one of the first in the world to introduce a digital currency for our citizens

, Buhari said at the official promotion at the beginning of the week.

Nigeria is experiencing a boom in interest in cryptocurrencies as people look for ways to avoid the weakening of the existing naira currency and to cope with the high cost of living and unemployment in Africa’s most populous country.

Digital currencies backed by central banks, or CBDCs, as well as for cryptocurrencies, are virtual money, with CBDCs being the legal tender regulated by central banks, while cryptocurrencies are out of state control.

Five countries around the world have already launched the CBDC, while another 14, including Sweden and South Korea, are in a pilot phase according to CBDC data monitored by the Atlantic Council.

In West Africa, Ghana also intends to launch its own CBDC currency soon.

Can advanced quantum computing pose a risk to Bitcoin security?

Rapid advances in quantum computing could pose a risk to certain types of Bitcoin transactions.

A wide range of initiatives in post-quantum cryptography works to mitigate unwanted scenarios

Some predict that rapid advances in quantum computing will have key implications in domains that use public-key cryptography, such as the Bitcoin ecosystem.

Bitcoin’s “asymmetric cryptography” is based on the principle of “one-way function”, which means that the public key can be easily reported from the corresponding private key, but not vice versa.

This is because classical algorithms require an astronomical amount of time to perform such calculations and are therefore impractical.

However, Peter Shore’s quantum algorithm in polynomial time, which is performed on a sufficiently advanced quantum computer, could perform such calculations and thus falsify digital signatures.

To better understand the level of risk introduced by advanced quantum computing, we limit ourselves to simple person-to-person payments.

They can be divided into two categories, each affected differently by quantum computing:

  • Pay to public key(p2pk): Here the public key can be obtained directly from the wallet address. A quantum computer could potentially be used to execute a private key, thus allowing a thief to spend money on an address.
  • Pay to public key hash(p2pkh- Pay to public key hash): Here the address consists of a public key hash and therefore cannot be obtained directly. It is detected only at the moment of starting the transaction.

So, until the funds are transferred from the p2pkh address, the public key is not known and the private key cannot be reported even using a quantum computer.

However, if funds are ever transferred from a p2pkh address, the public key is revealed.

Therefore, in order to limit the exposure of the public key, such addresses should never be used more than once.

Although avoiding the reuse of a p2pkh address can limit vulnerability, there may still be situations in which a quantum-capable adversary can successfully commit fraud.

The act of transferring coins even from a “secure” address reveals the public key.

From that moment until the transaction is dug up, the opponent has the opportunity to steal the funds.

What are the theoretical methods of attack?

Transaction hijacking: Here the attacker calculates the private key from the public key of the pending transaction and creates a conflicting transaction by spending the same coins, thus stealing the victim’s property.

The opponent offers a higher fee to encourage inclusion in the blockchain through the victim’s transaction. It must be noted that before the victim’s transaction is mined, the attacker must not only create, sign, and broadcast the conflicting transaction, but also first run Shor’s private key execution algorithm.

It is clear that time is crucial for such attacks. Thus, the level of performance of quantum computers dictates the probability of success of this threat vector.

Selfish mining: In this potential attack vector, an attacker could theoretically use Grover’s algorithm to gain an unfair advantage in mining.

This quantum computing routine helps search for unstructured data and can provide a square jump in the hash rate.

The ability to rapidly mine by sudden quantum acceleration could lead to price destabilization and control of the chain itself, resulting in possible attacks of 51%.

Combined attacks: By combining the above two vectors, an attacker could theoretically build a secret chain and selectively publish blocks to reorganize the public chain.

How to defend against these attacks?

Data collected through the mempool API can be used to run real-time machine learning algorithms to spot anomalies in the transaction fees offered and thus mark transaction abduction attempts.

Such algorithms can also help spot sharp jumps in block hash and raise warnings about possible “selfish mining” accordingly.

Dynamic AI models can calculate the risk of fraud during transactions at any time until confirmation.

These models can infer the potential earnings of a fraudster for each threat vector.

Insurance products can be designed to cover the risk of fraud during the transaction, whose prices can be calculated dynamically based on the probability of fraud in accordance with the models.

In addition, a “reputation score” can be calculated for each node in the blockchain. APIs that collect device details, IP address, etc. can be used to group activities (mining and/or transactions) into homogeneous clusters, and therefore have a high chance of originating from the same users.

Such patterns can also be used to directly detect quantum computers in a blockchain. A “reputation score” could be of particular importance in the case of combined attacks because opponents use a multi-vector approach to stealing funds.

Intelligent user interface design can help alert customers to the risk of address reuse, through the strategic placement of warning messages.

The principles of efficient incentive design can be used to formulate changes in consensus rules, such as applying margins to transaction fees for p2px and reusing p2px wallets.

This would lead users to move to safer behavior. Additionally, this would result in shortening the confirmation time of such transactions because the miners would select them first, thus narrowing the window of opportunity for the opponent.

The growth of quantum computers, with internal states consisting of many qubits, may raise questions about the basic cryptographic security of Bitcoin.

Even users who adhere to best security practices can still be affected in situations where a significant number of Bitcoins have been stolen from insecure addresses, causing increased price volatility.

A wide range of initiatives in post-quantum cryptography is underway to mitigate such scenarios.

It is crucial to note that the emergence of “quantum supremacy” does not necessarily mean the weakening of the bitcoin ecosystem.

Better quantum computing systems will eventually provide opportunities for a slow economic transition to better tools.

While the phase of asymmetric use of quantum computers can generate multiple threat vectors, fraud risk management principles along with user awareness can help design solutions for such a future.

Elon Musk in one word breaks down the value of Shiba Inu: Brutal truth brought down the price by 20%

The price of Shiba Inu (SHIB) fell by a sharp 20% after Elon Musk announced that he did not own any of these crypto-coins.

One of the cryptocurrencies that have had a huge increase in value in the last few months, Shiba Inu has suffered a drop of 20% just after one tweet by Elon Musk.

To put it bluntly, Shiba Inu is a token based on the Ethereum ERC-20 standard and belonging to the meme-coin group.

This essentially means that its value is not determined on the basis of usability, but on the basis of current popularity.

One tweet changes everything

In early October, Elon Musk posted a picture of his Shiba Inu dog Floki, which sparked an avalanche of interest, so the price of Shiba Inu coins began to rise sharply, recording an incredible 500% growth.

With or on a shield

However, just as things like this can boost popularity, so unseen tweets can do just the opposite.

One of the great propagandists of Shiba Inu coins – ShibaInuHodler on Twitter asked Elon Musk how many Shiba Inu coins he has, followed by a short and cold answer: “None”.

While this sounds like the plot of a Latin American series in which Elon eventually learns that she is her own mother, we wanted to show you how much meme-coins are kept on glass legs, and how much they depend on the mood of the celebrities who propagate them.

Without the right laws of price movements

Elon Musk has so far always supported Dogecoin(DOGE) and Shiba Inu(SHIB) coins and has caused their prices to fluctuate, completely contrary to the laws of any financial instrument.

Community reactions were polarized after Musk’s tweet.

And while some have advised Musk to invest coins in Shiba Inu, others have asked the community to “stop bothering celebrities, when the community is great even without such nonsense,” which is true.

Elon Musk, on the other hand, spent a little more time on Twitter the same day, explaining to users the benefits of DOGE coins, saying, “A lot of people I’ve talked to on Tesla production lines or in building SpaceX rockets own Doge.

They are not financial experts or Silicon Valley technologists.

That’s why I decided to support the Doge – because it acts as a cryptocurrency for ordinary people.

A new crisis may come, like the one in 2008: The culprit will be the cryptocurrency

Cryptocurrencies have no real value and regularly record extremely large fluctuations, which threatens the stability of financial markets

the governor said.

The deputy governor of the British central bank believes that cryptocurrencies if they are not subject to stricter regulations, can cause a global financial crisis like the one from 2008.

Sir Jon Cunliffe, the deputy governor of the Bank of England, stated that the value of the crypto-market increased from 16 billion dollars to 2.3 trillion in just five years, as it is worth today.

It reminds him of the growth of the value of the mortgage loan market, which in 2008, before its collapse, amounted to 1.2 billion dollars.

When the value of anything in the financial system grows so fast, and that growth takes place in an unregulated space, the financial authorities have to deal with it.

he said.

Cunliffe believes that the cryptocurrency market should be legally regulated, but he points out that this should not be exaggerated either, so as not to discourage the introduction of innovations in the financial sector.

He believes that the technology on which cryptocurrencies are based has a lot to offer, but it should be used with caution.

In his opinion, and in the opinion of the Governor of the Bank of England, who has already mentioned it several times, cryptocurrencies have no real value and regularly record extremely large fluctuations, which endangers the stability of financial markets all over the world.

Cunliffe reminds that their value can be affected by even one statement of a billionaire, like Elon Musk, or the decision of one country to declare them illegal, which represents a great risk for investors.

If they remained only in the digital world, then cryptocurrencies would not pose a great danger to the financial system, he believes.

But now they are intertwined with the traditional business of banks and other economic organizations. Also, more and more institutional investors are entering this field.

And every field where large sums of money are circulating needs to be regulated and supervised, says the deputy governor.