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Soaring Sell Orders Contrast Sharply with Bitcoin’s Renewed Bull Run – Bitcoin News

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Reuben Jackson

Alongside the cryptocurrency’s meteoric climb over the back half of 2020 and early 2021, a curious phenomenon has unfolded; heightened profit-taking and conversion to fiat currencies. Data collected by Simplex, a fiat-crypto gateway, underscores this seemingly paradoxical development.

A Curious Race to Convert Crypto to Fiat Has Accompanied Bitcoin’s Latest Drive Higher

Sharing exclusive data with Bitcoin.com, Simplex cofounder and chief analytics officer Netanel Kabala says:

While the international press coverage of Bitcoin’s rally has caused a swathe of new users to flock to the industry and buy-in, outflows have been equally significant. Of the total amount of cryptocurrency sold in the last six months, 43% was off ramped in December alone.

A quick look at Google Trends for the term ‘Bitcoin’ echoes these developments, especially now that new equity instruments like Grayscale Bitcoin Trust and big-name funds like Blackrock are adding exposure and raising crypto awareness.

Still, given the increased ability to quickly convert crypto and withdraw in fiat currencies, the uptick in funds leaving the ecosystem is astonishing. Part of this can be attributed to the growing fungibility of cryptocurrency, primarily helped by the support of players like Simplex, which empowers users to buy, sell, and spend crypto through Visa partnerships.

Although some of the latest rally’s onlookers have decried the rapid rise in crypto valuations as proof that a bubble is forming in this nascent asset class, others within the industry see the development as a harbinger of times to come. One of the areas this is most apparent is altcoins.

Data compiled by Simplex illustrates that as Bitcoin prices have leveled off above $30,000, daily purchases of altcoins have risen by approximately 65%. More interestingly, the data highlights that newer users account for nearly 20% of this volume, marking a sharp increase in the number of novice retail investors expanding and diversifying their exposure within the ecosystem.

Poloniex, one of the top 20 global cryptocurrency exchanges, which has adopted Simplex’s platform, has experienced these results firsthand. Karen McHenry, Poloniex’s Director of Product, attributes this development to greater access within the ecosystem, especially with Simplex’s buy option, which promotes instant account funding alongside the heightened ability to cash out quickly.

She also doesn’t see the ability to more quickly convert from crypto to fiat as harming interest despite the eyepopping amounts taken off exchanges.

It may sound surprising, but adding the ‘sell’ option actually has a positive impact on the number of crypto transactions too.

Though this easy offramp and soaring volume of sell orders might seem negative for prices, it can also be viewed as a healthy reflection of the ecosystem’s growing use cases. Besides making it easier to exit and enter, growing areas like decentralized finance (defi) and greater fungibility all contribute to a cryptocurrency’s value proposition.

As institutions begin lining up to add exposure as retail accumulation climbs, Bitcoin momentum may actually accelerate, and by extension, lift the altcoins sought after by the newcomers seeking opportunities outside the seminal crypto coin.

McHenry adds:

If the bull market can maintain its momentum, some of these BTC profits will flow into altcoins, which are particularly popular among retail investors. This creates a positive feedback loop, with traders who turn a profit prone to telling their friends about crypto, which brings more investment into the space.

Do you think the offramping will continue throughout 2021? Let us know in the comments sections below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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Biden’s $2 Trillion Relief Package the Largest Stimulus Payments to-Date, Plan Showers Money on the Bureaucracy – Economics Bitcoin News

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Jamie Redman

On Saturday, politicians in the U.S. approved the massive $1.9 trillion Covid-19 relief package dubbed President Biden’s “American Rescue Plan.” The stimulus plan will see American citizens earning $75k or less eligible to receive $1,400. Moreover, households will get an additional $1,400 for every dependent child claimed. Despite the direct cash payments, Biden’s American Rescue Plan is also filled with pork-barrel items that have nothing to do with coronavirus relief.

The So-Called ‘American Rescue Plan’

Americans are expecting a third stimulus check in the near future, after members of the U.S. Congress approved the $1.9 trillion relief package called the “American Rescue Plan.” The 628 page bill worth nearly two trillion U.S. dollars will see American citizens get the largest cash payments to-date.

The bill’s pages outline that individual Americans who earn $75,000 per year or less will get a payment for $1,400. American couples will get a check worth $2,800 if they make $150k or less per year. In addition to this, U.S. households will get an additional $1,400 per child dependent that is claimed on their income tax filings.

Biden's $2 Trillion Relief Package the Largest Stimulus Payments to-Date, Plan Showers Money on the Bureaucracy

Estimates also show that all the direct payments to American citizens and households will cost roughly $422 billion. Furthermore, Biden’s American Rescue Plan includes $246 billion dedicated to the weekly unemployment supplement that will last up until August 29, 2021. This money will also be leveraged for an extension of programs that may provide even more people with unemployment benefits.

There’s also the “Child Care Tax Credit” that households can use to get a refund on daycare and the estimated cost for this section is around $143 billion. Another $8 billion will go toward subsidizing COBRA coverage, and $45 billion toward the expansion of Affordable Care Act subsidies.

There are a number of other benefits ordinary citizens will get from the third stimulus like nutrition assistance programs that help needy Americans with food assistance in place of school lunch. However, the American Rescue Plan stimulus also has a load of pork barrel funds that will feed hungry politicians, as they certainly could be deemed entirely unnecessary in the eyes of taxpayers.

Billions of Dollars Will Fund Museums, a Bridge Connecting Canada to New York, and Environmental Protection

The metaphor “pork barrel” is a term appropriated for government spending that uses funds for localized projects and unwarranted proposals in order to bolster a bureaucrat’s specific district. Pork is also referred to as a type of government spending that is completely wasteful and not legitimized by the American populace. Typically pork funding is stuffed into massive bills like this one and the last two stimulus packages. The third stimulus package, worth $1.9 trillion, is no different than the last two as it is loaded with pork.

Biden's $2 Trillion Relief Package the Largest Stimulus Payments to-Date, Plan Showers Money on the Bureaucracy

For instance, the appropriation of $480 million will go to museums (many of which have been closed to the public) and Native American language preservation. $50 million is being dedicated to organizations similar to Planned Parenthood, as it will give grants for family planning operations.

However, the stimulus bill does not mention anywhere in the bill’s text what organization will get the Planned Parenthood funding. Transportation and infrastructure will get $90 billion, as the government plans to dole out stimulus payments to transit agencies, airports and aviation manufacturers, and the railway operator Amtrak.

Americans are not too pleased with the transportation funding, as Amtrak will get $1.5 billion and the company allegedly still has $1 billion in unspent funding from the last relief bills. For some reason, American bureaucrats also think building a bridge connecting Canada to New York is some sort of Covid-19 relief.

Despite the fact that it clearly is not related to Covid-19, $1.5 million is being sent to the Great Lakes St. Lawrence Seaway Development Corp. for this bridge project. Airlines can freeze layoffs up until September 2021 as well, because airline firms and contractors will get around $12 billion to help curb the forecasted layoffs.

The Monsterous Mountain of Pork in the ‘Covid-19’ Relief Package Showers Beuracrats With Funding

$50 million will be leveraged for environmental justice grants which will align with President “Tackling the Climate Crisis at Home and Abroad” executive order. The funding will be appropriated to the Environmental Protection Agency, according to the bill’s text. The latest Covid-19 stimulus bill also bans USPS vape shipping for some reason.

The Twitter account dubbed ‘Oilfield Rando’ wrote a scathing critique of the latest stimulus bill that claims to “shower money on Americans” in need. Rando explains that $300 million is dedicated to “Covid animal surveillance” and “a cool billion for outreach programs for the ‘socially disadvantaged farmers and ranchers.’” $25,000,000 for the [Agriculture] Secretary to spend on modernizing electronic services,” Rando notes. “Gonna be a whole lot more folks on food stamps, reckon we gotta make the website prettier,” he added.

The government plans to give $128 billion to the U.S. teacher’s unions, even though most of them “refuse to reopen schools,” Rando scathes. Despite, loads of unwarranted pork-barrel spending, mainstream media outlets continue to laud Biden’s relief bill and actually claim the President “showers money on Americans.”

Biden's $2 Trillion Relief Package the Largest Stimulus Payments to-Date, Plan Showers Money on the Bureaucracy

$40 billion will be appropriated to U.S. universities and $91 million for the outreach to student loan borrowers, domestically and internationally,” Rando says. $100 million for the Institute of Educational Sciences and $15 million is going to the Department of Education for both domestic and international purposes.

A whopping $135 million for the National Endowment for the Arts and another $135 million for the National Endowment of the Humanities. $200 million will be handed over to the Institute of Museum and Library Services.

Rando also laughs at the $150 million being funneled to MSHA, OSHA, and all the other federal regulatory entities that will crack down on U.S. businesses.

“[A] $15 billion Child Care and Development block grant. Wowza,” Rando details. “$4.5 billion to pay the power/gas bills for public housing. [It] May not be enough considering how high this admin wants to make them,” the Twitter account said.

$852 million will be distributed to the Corporation for national and community service. “How many hundreds of millions did they get in the last Bill?” Rando jokingly asked. “[$1 billion] to tell people that the vaccine isn’t going to turn them into a lizard person. Simply incredible. A straight-up slush fund for PR firms,” Rando said.

$500 million will go to upgrading the CDC’s public health surveillance capabilities. $250 million to strike teams that are deployed to Covid hospitals and $100 million for the EPA to address “health outcome disparities from pollution and the COVID pandemic.”

Rando’s critique continues:

$50,000,000 for ‘environmental justice’ and ‘tackling the climate crisis’ $50,000,000 for the clean air act. Drum roll please, here comes the blue state bailout… [$219.8 billion] for states that drove themselves into the ground with onerous lockdowns, ridiculous pension programs, and unjustifiable government salaries.

Biden's $2 Trillion Relief Package the Largest Stimulus Payments to-Date, Plan Showers Money on the Bureaucracy

Around $570 million will be appropriated for Emergency Federal Employee leave, $77 million to the Government Accountability Office, and $1.25 billion for shuttered venue operators. “Railroad bailout money,” Rando exclaims. “Northeast corridor: $820 million, National Network: $680 million, Long distance svc restoration: $166 million, Choo chooooooooo!”

Another $30 billion will be directed toward Federal Transit Administration (FTA) grants. After Oilfield Rando combed through the 628 pages of the “American Rescue Plan,” he ended his thread by saying:

[Washington] DC is straight trash. Ima finish my drink and read something less depressing.

All of the aforementioned funding is written in black and white text, and all the unwarranted spending schemes will take place whether Americans like it or not. Because the direct cash payments are being dangled like a carrot on a string, it seems that many Americans simply just don’t care what’s inside these bills. Let alone, all the intergenerational debt and inflation that comes with it.

What do you think about the latest $1.9 trillion stimulus bill? Let us know what you think about this subject in the comments section below.

Tags in this story
$1400 Payment, $1400 stimulus payment, $2 Trillion, America, American Rescue Plan, billions, Bureaucracy, COVID-19, Democrats, Government, Joe Biden, Millions, Money Printing, Oilfield Rando, Pork, Pork Barrel, Pork Funding, Pork Funds, Relief Package, Republicans, stimulus, stimulus payment, USA

Image Credits: Shutterstock, Pixabay, Wiki Commons, Jimbo M @ oklahoman.com, Twitter, Washington Post,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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YIELD App Launches Ethereum Fund, Gives Users up to 20% APY – Press release Bitcoin News

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Bitcoin.com PR

PRESS RELEASE. ESTONIA — MARCH 8, 2021 YIELD App, the DeFi wealth management platform bridging traditional and digital finance, is pleased to announce the launch of its Ethereum fund, allowing users to earn high-interest returns on their Ether (ETH). Following a successful public launch and token listing (YLD), YIELD App can now offer its users up to 20% APY on their ETH and stablecoins. Ethereum deposits will be gradually open to YIELD App users over the next several days. The platform now accepts deposits of USDC, USDT, ETH, and YLD.

YIELD App has seen notable progress since the public launch of its web application on 12 February 2021. Over 10,000 users have already registered, helping the platform reach more than USD $5 million AUM. Currently, over 33 million YLD tokens are held in YIELD App wallets – accounting for over 30% of the current supply – and more than 500 users have “Tier 5” accounts (20,000+ YLD), granting them a 10% APY boost.

Designed for both the retail and institutional market, YIELD App accommodates the needs of investors interested in digital asset classes while also allowing crypto veterans to capitalize on DeFi’s incredible opportunities without navigating a sea of complex protocols. DeFi is powerful, and YIELD App serves as a gateway for users to benefit from DeFi’s high-interest yields while keeping their funds secure and protected. The new Ether fund enables users to now receive the same high-interest yields of the DeFi Alpha Fund I without selling the world’s second-biggest cryptocurrency by market cap.

“Ether is the backbone of decentralized finance, and many consider it the most important cryptocurrency in the world,” says Tim Frost, CEO of YIELD App. “We want to provide people with the opportunity to earn high interest on their Ether without selling the asset that allowed DeFi to emerge and could very well be the home to the future of global finance. This is an important milestone on our roadmap and a great development for our client base, who are looking for more ways to passively earn on crypto assets they want to hold long-term.”

Decentralized finance (DeFi) refers to a breadth of financial instruments and tools built on top of blockchains like Ethereum. DeFi removes the middleman from the equation and provides equal access and opportunities for everyone by using technology that is open, transparent, and immutable. Many of DeFi’s most popular protocols have taken familiar aspects of conventional finance (such as borrowing, lending, and insurance) and rebuilt them from the ground up, all powered and possible through blockchain.

DeFi has continued to set new records this year. Since 1 January 2021, DeFi’s total value locked (TVL) has climbed from USD $15 billion to $35 billion, a 233% increase. DeFi’s growth has been spectacular, but accessibility has hampered mainstream adoption. YIELD App bridges the divide by building a DeFi-powered service that is intuitive, secure, and backed by DeFi’s most innovative protocols. In the near future, YIELD App will launch additional funds, fiat ramps, in-app token swaps for each token pair, and card services.

 

 

About YIELD App

YIELD App believes that everyone should have access to the best investment opportunities. YIELD App’s mission is to unlock the full potential of DeFi and make it available to the world. To achieve this, the company provides an innovative platform that bridges traditional and decentralized finance in the easiest way possible. For more information, visit yield.app.

 


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Image Credits: Shutterstock, Pixabay, Wiki Commons





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One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million – News Bitcoin News

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Jamie Redman

On Sunday, March 7, 2021, the price per bitcoin jumped over the $50k handle once again, as the digital asset’s overall market capitalization is around $925 billion. One thing is for certain, there will never be more than 21 million bitcoin and today there’s roughly 18,647,525 bitcoin in circulation. Interestingly, anyone who owns 21 bitcoin or one-millionth of the entire supply is currently a millionaire today.

The ’21 Million Bitcoin Club’

Back in 2017, finance publications reported on a number of crypto proponents “gunning” for exclusive membership into the ’21 million club.’ The 21 million club refers to the number of bitcoins that will ever be produced and by the year 2140, that number will be 21 million BTC. During the last few years, many enthusiasts have tried to join the 21 million club by obtaining a single bitcoin, which is exchanging hands for a touch over $50k on Sunday morning.

For years now people can find a myriad of forum posts about people who have finally made it into the exclusive club of owners who hold a single bitcoin (BTC).

Satoshi's 21 Million Mystery: One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million

“After almost [two] years in crypto, I finally got in,” an individual wrote on Reddit two years ago. “It might be small for most of you here, but for a person in a third world country, this is a huge accomplishment. Now, to focus on my [altcoins], then sell them for BTC at the most opportune moment. Wish me luck,” he added.

Members of the 21 million club who own a single BTC, also own precisely 0.0000047619% of the entire supply per owner. Then there’s another club of bitcoiners who have obtained approximately 21 BTC or 0.0000999999% of the entire capped bitcoin supply.

Today one-millionth of the bitcoin supply is now worth over 1 million U.S. dollars. One-millionth of the bitcoin supply is approximately 21 bitcoin. This week, is another instance of this occasion, as BTC prices dropped in value a few days ago after reaching an all-time high (ATH) at $58,354 on February 21.

Satoshi's 21 Million Mystery: One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million
21 million club artwork published by cryptoart.com and drawn by artist Alix Branwyn.

Ten days prior to the bitcoin (BTC) price ATH, crypto writer Pete Rizzo tweeted “One-millionth of the bitcoin supply is now worth $1 million.” At the time of publication, 132,325 addresses hold anywhere between 10-100 BTC, and owners of one-millionth of the bitcoin supply are represented among this aggregate of addresses.

Besides the enthusiasts that want to simply join the 21 million club by owning a single coin, there are many who have been obsessed with joining the club of owners who own a millionth of the BTC supply.

“The 21 BTC club becomes more difficult to join,” explains a web portal dubbed “21-btc.club.”

Why Did Satoshi Choose the 21 Million Supply Cap?

The reasoning behind why Satoshi Nakamoto chose the 21 million supply limit may have been done purposely for a number of reasons. According to an email between Mike Hearn and Nakamoto, however, the Bitcoin network inventor chose the 21 million limit number so it would align with the M1 money supply of fiat currencies like the euro and U.S. dollar. Back in 2008, the M1 money supply was approximately 21 trillion when Nakamoto published the white paper.

“I wanted to pick something that would make prices similar to existing currencies, but without knowing the future, that’s very hard. I ended up picking something in the middle,” Nakamoto said in the email to Hearn.

Satoshi Nakamoto added:

If Bitcoin remains a small niche, it’ll be worth less per unit than existing currencies. If you imagine it being used for some fraction of world commerce, then there’s only going to be 21 million coins for the whole world, so it would be worth much more per unit.

The white paper’s math also shows that the 21 million number further aligns perfectly with some of the interesting design patterns within the software. For instance, the 21 million number is integral to the block reward halving, alongside the 10-minute average time to mine a BTC block. Rewards are also cut in half every 210,000 blocks mined, and currently miners get 6.25 BTC per block.

Satoshi's 21 Million Mystery: One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million
The total value of the Bitcoin network’s subsidy (bitcoin block rewards) can be expressed in the equation pictured above. Block reward epochs (210,000 blocks) will be chopped in half consistently until they end following approximately 32 Bitcoin reward halvings.

Interestingly, the smallest unit in the Bitcoin network is a single satoshi or 0.00000001 BTC. The Ph.D., Christian Seberino explained in 2018, that Satoshi likely chose the 21 million in order to “involve floating-point arithmetic.”

Satoshi's 21 Million Mystery: One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million
Floating-point arithmetic.

Seberino says that even though BTC’s supply limit seems arbitrary, the reasoning behind why Satoshi chose the number is quite sound.

“It helps avoid errors on most computer systems, and is likely sufficient for all possible transactions everywhere,” Seberino emphasized. “Floating-point arithmetic is a type of mathematics used by computers to handle decimals. Decimals are often represented with 64 bits where one bit denotes the sign, 11 bits denote an exponent, and, 52 bits denote a fraction.”

The paper written by Seberino adds:

To avoid rounding errors, it is often a good idea to avoid integers that cannot be represented with only the fraction bits. To be extra safe, it may help to also leave one fraction bit unused. With respect to 64 bit decimals, that would limit integers to 51 bits. The maximum integer that can be represented with 51 bits is just slightly over 2100 trillion.

We honestly don’t have a solid answer to why Nakamoto chose the 21 million limit and he could have had insights into some numerological concepts we don’t know about. The 21 million clubs, whether it be holders of one single coin or 21 bitcoins total, will likely continue to grow over time and even change hands across generational wealth boundaries.

Furthermore, every time bitcoin (BTC) increases by $50k, then the holders of 21 BTC will see a wealth increase by another $1 million USD. Some would say it’s not too late to join the clubs, if they are interested in carrying wealth into the future.

What do you think about the 21 million bitcoin club and the reasons behind why Satoshi Nakamoto chose that number for the supply limit? Let us know what you think about this subject in the comments section below.

Tags in this story
$1 million, 21 bitcoin, 21 million, 21 Million Club, 21 Trillion 2008, 21-btc.club, 210000 blocks, Bitcoin (BTC), Bitcoiners, BTC, BTC 21 Million, Christian Seberino, floating-point arithmetic, M1 Supply, Mike Hearn, one-millionth, Pete Rizzo, Satoshi Nakamoto, Supply Cap, Supply Limit

Image Credits: Shutterstock, Pixabay, Wiki Commons, Cryptoart.com, Alix Branwyn, Christian Seberino,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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