A new report has found that half of Germans who participated in a survey study can “imagine using a digital euro as an additional payment option.” However, the study also revealed that some three-quarters of the respondents view the “aspect of privacy in connection with the use of the digital euro as very important or […]
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Ark Invest Removes Staking Option From Latest Ethereum ETF Proposal
Ark Invest and 21shares have revised their proposal for a spot ethereum exchange-traded fund (ETF), removing previously included options for staking. This change marks a significant pivot from their earlier filings, which had contemplated engaging trusted staking providers to manage part of the trust’s assets. Ark Invest and 21shares Modify Ethereum ETF Proposal, Omit Staking […]
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Bitcoin Is an ‘Intriguing Option for National and Corporate Financial Portfolios’ Says Billionaire Stelian Balta
Stelian Balta, the billionaire and co-founder of the digital asset management firm Hyperchain Capital, has said that while bitcoin is indeed a volatile asset it nonetheless helps to diversify and align an investment portfolio with digital trends. The top crypto asset’s high-return possibilities also “makes it an intriguing option for national and corporate financial portfolios,” Balta asserted.
Embracing BTC Enhances a Corporation’s Image
In his written answers sent to Bitcoin.com News, the billionaire also argued that as regulations around crypto assets become clearer, the top crypto asset’s perceived risks will slowly dissipate thus “making it a more viable option.” Furthermore, when corporations embrace BTC, this enhances their respective images as “modern and innovative” organizations. Balta suggested that this alone may be enough to attract new customers or “investors interested in advanced technologies.”
Meanwhile, the Hyperchain Capital founder has characterized some institutional investors’ bet on digital assets as a mutually beneficial move. For institutional investors, digital assets create growth opportunities while the Web3 industry benefits by way of more credibility and legitimacy.
Overall, institutional investors’ dabbling with digital assets potentially helps hasten the development of new technologies and Web3 apps. This, in turn, could also result in more people and businesses embracing Web3 technologies, Balta added. In his answers sent to Bitcoin.com News via Telegram, the billionaire also explained why he sees the blockchain as a technology that will reshape finance. He also offered advice on how budding entrepreneurs can emulate him and become equally successful.
Below are all of Balta’s answers to the questions sent.
Bitcoin.com News (BCN): Are traditional finance (Tradfi) and decentralized finance (defi) converging and in what ways could blockchain technology help Tradfi and reshape the future of finance?
Stelian Balta (SB): I think Tradfi and defi are starting to blend together, thanks to the enticing features of blockchain technology. This merger is making financial transactions quicker and more transparent, while also boosting security against fraud and cyber threats. However, this integration faces challenges, like navigating complex regulations and the need for traditional financial institutions to adapt both culturally and operationally to these new technologies. In short, blockchain is paving the way for a more efficient, secure, and inclusive financial future.
BCN: What makes you believe that nations and corporations would integrate Bitcoin into their financial strategies, especially considering it’s still a highly volatile asset?
SB: Nations and corporations are already considering adding bitcoin into their financial strategies for several reasons. Bitcoin offers a way to diversify assets, which can help manage risks differently from traditional financial markets. It’s often seen as a hedge, similar to digital gold, which can be appealing for protecting value in uncertain economic times. Bitcoin, though historically volatile, has also demonstrated a capacity for significant returns in the past.
The growing interest in blockchain technology and the shift towards digital finance also make bitcoin an attractive option. It aligns with the evolution towards more digital, innovative financial solutions. There’s also increasing consumer and investor interest in bitcoin, and by integrating it, countries and companies can meet this demand and stay competitive.
As regulations around cryptocurrencies become clearer and more established, the risks associated with bitcoin might reduce, making it a more viable option. Additionally, embracing bitcoin can enhance a corporation’s image as modern and innovative, potentially attracting new customers or investors interested in advanced technologies.
While bitcoin is indeed volatile, its potential for diversification, alignment with digital trends, and high-return possibilities make it an intriguing option for national and corporate financial portfolios. However, I believe it’s important to carefully weigh these benefits against the risks and evolving regulatory landscape.
BCN: After what is undoubtedly a brutal bear market, it now appears like the industry is on the cusp of a bull run as reflected by investor sentiment and crypto prices. Can you talk about your investment thesis for 2024 and beyond?
SB: Our focus has always been on long-term investments. Our investment thesis for 2024 and beyond centers on identifying and supporting big-vision projects with strong fundamentals and innovative technology. We don’t chase narratives and trends.
Looking back at our experience since 2013, we’ve seen the crypto market go through lots of ups and downs, with losses as big as 98% and gains up to 40,000%.
This has really shown us how important it is to think long-term through multiple cycles. Our early investments in Ethereum, Cosmos, Fantom, and many more, starting from 2016, 2017, and 2018 respectively, prove that we’re dedicated to sticking with this long-term strategy.
In summary, our investment thesis is rooted in a long-term approach, focusing on high-quality projects that demonstrate potential for enduring value. This strategy, we believe, will allow us to navigate future market cycles effectively and capitalize on the growth opportunities that the evolving crypto landscape presents.
Moving forward, our focus will be on investing in projects led by teams that are not only strong and loyal but also have a clear vision and mission.
BCN: You have been a vocal supporter of the Fantom network, which recently launched the Sonic Labs accelerator program and is anticipated to introduce the Sonic tech stack upgrade in 2024. What unique attributes of Fantom strengthen your conviction in the project?
SB: A core aspect of the Fantom ecosystem is its dedication to supporting its endemic creators across gamefi, defi, and more. One of the distinctive features for builders within Fantom is the direct monetization avenues such as gas monetization, which gives dApps a share of the gas fees they generate. This empowers Fantom-based builders to earn more compared to deploying on any other network, offering them a key edge over their competition.
Another unique feature of Fantom is its growing, grassroots community of creators. They are at the forefront of engaging experiences for users to jump into gaming with Estfor Kingdom, or explore within Fantom’s defi ecosystem with Beethoven-X, Equalizer, and more.
BCN: What factors are driving institutional investors to explore the digital asset space, and how would the growing institutional adoption impact the Web3 industry?
SB: I think institutional investors are diving into the digital asset space mainly because it’s a new and evolving area with lots of potential. They’re attracted by the opportunity to diversify their investments with something different from traditional stocks and bonds. Plus, the digital asset market is growing rapidly, offering exciting opportunities for growth. The improvement in how these assets are managed and clearer rules around them also make it easier and safer for these big investors to get involved.
As more and more institutional investors get into digital assets, I believe it’s going to have a big impact on the industry. Their involvement adds a level of credibility and might lead to a more stable and mature market. With more money flowing in, we can expect to see faster development of new technologies and applications in the Web3 space. This could also encourage more people and businesses to start using Web3 technologies.
In short, the growing interest from big investors is set to really shape and boost the world of Web3.
BCN: It is said that you began your entrepreneurial journey with nothing at the age of 16 and became a millionaire at 24. What would be your advice to Web3 builders starting their entrepreneurial journey in 2024?
SB: Embarking on an entrepreneurial journey in the Web3 space in 2024, my key advice, drawn from my own tough journey filled with countless failures, revolves around three fundamental principles: obsessive hard work, persistent curiosity, and being consistently driven by a clear vision.
Firstly, embrace obsessive hard work. Success in the rapidly evolving world of Web3 demands more than just effort, it requires an all-consuming passion for your work. My path was filled with challenges, teaching me the importance of dedication. Be prepared to dedicate countless hours, often at the expense of other pursuits, because in this field, the difference between success and failure often hinges on the extra mile you’re willing to go.
Secondly, nurture your curiosity relentlessly. The landscape of Web3 is ever-changing, with new technologies and possibilities emerging constantly. Stay hungry for knowledge and new experiences. This insatiable curiosity, which I maintained despite numerous setbacks, will not only keep you informed but also inspire innovative ideas and solutions that can set you apart in a crowded market.
Lastly, always be driven by a strong, clear vision. In the world of startups and especially in Web3, bear or bull markets, distractions and challenges will be plentiful. It’s your vision that will guide you, keep you focused, and motivate you during tough times. This vision should be the beacon that lights your path and the anchor that keeps you grounded, as it was for me through my difficult journey.
In summary, as you step into the entrepreneurial arena, let obsessive hard work be your daily mantra, curiosity your constant companion, and a clear vision your guiding star.
What are your thoughts about this interview? Let us know what you think in the comments section below.
Bulgaria’s Oldest Soccer Club Botev Plovdiv Adds Bitcoin as a Payment Option
PFC Botev Plovdiv, Bulgaria’s oldest soccer team, recently said it now accepts bitcoin payments at fan shops and catering points during matches. Fans who make payments using the top cryptocurrency anytime in the month of November are eligible for a 10% discount.
Fans to Buy Tickets With BTC
Bulgaria’s oldest soccer team, PFC Botev Plovdiv, has said fans and the general public can now pay for merchandise with BTC at the club’s fan shops and catering points in the central stand during matches. The club said it is planning to avail this payment option for fans who wish to buy tickets.
According to a report published by Novinite.com, club fans who make purchases using cryptocurrency in the month of November will get a 10% discount. Remarking on the club’s acceptance of bitcoin as a payment option, club president Anton Zingarevich said:
We are excited about this technology, which is creating new opportunities and has the potential to become an integral part of our lives, just as it happened with the Internet.
As per the report, PFC Botev Plovdiv has selected the self-hosted, open-source cryptocurrency payment processor BTCPay Server as its partner. BTCPay Server executive Nicolas Dorier said his firm’s focus in 2023 has been on the local adoption of bitcoin. Dorier added that BTCPay Server’s goal will “continue to support such transformative endeavours.”
Launched in 1912, PFC Botev Plovdiv plays in the Bulgarian Parva Liga, the top flight of Bulgarian soccer. The club reportedly believes taking this step helps cement its profile as a leader committed to making the game modern and more popular.
What are your thoughts on this story? Let us know what you think in the comments section below.
Crypto Cards Still an Option to Spend Digital Cash in Fiat Environment
Rising regulatory pressures may have limited crypto cards on offer but they remain a viable way to pay with coins where only fiat is accepted. With them, you spend crypto and that’s without the need to exchange it beforehand as it often happens when you want to pay with cryptocurrency in a fiat scenario.
Crypto Cards — How They Work and What Are the Offerings in 2023
While not as immediate as most in the crypto community would like, crypto cards nevertheless present an opportunity to pay with decentralized digital money where merchants would only take dollars, euros or any of the other central bank currencies.
Just like bank cards, crypto cards can come in physical, or plastic, and virtual form. The latter can be used to make payments online while the former can be also swiped or tapped at brick-and-mortar stores equipped with point of sale (POS) terminals.
They are several types of crypto cards, which differ slightly from the regular ones. Credit crypto cards, for example, use deposited crypto assets as collateral to extend a credit line in fiat. There are also fiat credit cards that offer coins and tokens as cashback or rewards.
The category that allows you to actually spend your digital coins or withdraw cash at ATMs are the crypto debit cards. These are linked to a cryptocurrency wallet and provide instant conversion to fiat at current exchange rates at the time of purchase or withdrawal.
While a couple of years ago you could hear about a new crypto card more often than these days, with the bear market and increased scrutiny by regulators leaving their mark, there are still a number of working solutions. These include offerings from well-established platforms in the sector.
America’s leading crypto exchange, Coinbase, has a crypto card allowing users to spend their default fiat currency, the stablecoin usd coin (USDC) or supported cryptocurrencies. The Coinbase Card is a Visa debit card available to residents of the U.S., excluding Hawaii, as well as the EU. On its website, Coinbase notes that spending crypto this way is a taxable transaction as it involves the sale of crypto assets. So you might want to check your local laws and regulations in that regard.
Binance, the world’s largest coin trading platform, introduced its Binance Card in 2020 but amid issues with regulators and banking partners this year, it announced in August that Visa had stopped issuing new its co-branded cards in Europe while Mastercard said it’s ending its partnership with Binance for markets in South America and the Middle East.
Meanwhile, another leading exchange, Bybit, launched a new crypto debit card in February. The Bybit Card is a Mastercard that supports top-ups in several major cryptocurrencies and stablecoins like bitcoin (BTC), ethereum (ETH) and tether (USDT). With a few exceptions, it can be currently ordered by customers living in countries from the European Economic Area (EEA) and the U.K. Other exchanges that maintain their own offerings include Crypto.com and Kucoin.
Venmo and Gemini issue credit cards with crypto cashback and rewards while Nexo introduced a feature on its crypto card this year which allows you to toggle between a crypto credit mode, if you want to spend without selling your deposited digital assets, and a debit mode that lets you pay with euros, British pounds and U.S. dollars and receive interest in fiat or tokens.
Bitpay and Wirex are among the earliest players in the market for crypto debit cards. In May of this year, the U.S.-based crypto payment processor Bitpay paused new applications for its prepaid Mastercard. Wirex is still offering both physical and virtual cards. The company recently announced it’s preparing to introduce an app chain called W-pay that will allow it to issue non-custodial cards.
Do you expect to see more crypto card offerings in the future? Tell us in the comments section below.
A Comprehensive Look at the New Paypal Stablecoin, Its Control Dynamics, and ‘Freeze’ Option Trending on Social Media
At the time of writing, the official Paypal stablecoin PYUSD smart contract has been unveiled, and as it stands, the maximum aggregate supply amounts to 26,905,005.66 PYUSD. In spite of the existence of more than 26 million Paypal stablecoins, the contract continues to retain a substantial 92.91% of this supply. Concurrently, the Paxos Treasury wields control over 7.08% of all the PYUSD in circulation.
Paypal’s PYUSD: Unpacking the Smart Contract, ‘Freeze’ Function, and What It Means for Centralized Stablecoins
Over a day has passed since Paypal and Paxos announced the new stablecoin PYUSD and unveiled the official Github code repository and smart contract address. Before the smart contract’s publication, several bogus PYUSD tokens were created and introduced to decentralized exchange (dex) platforms. Currently, the token contract reveals roughly 26,905,005.66 PYUSD in circulation across eight wallets.
The leading two holders possess 99.99% of the supply, indicating that PYUSD exists but has not yet been distributed. The initial mint occurred on August 3, 2023, five days prior, and PYUSD has experienced a total of 175 transfers, presumably internal tests. One topic of conversation is Paypal’s contract containing a “freeze” option, which has become a trending subject on social media platforms such as X (formerly Twitter).
The smart contract features freeze and seizure (wipe) capabilities. The “freeze” function permits an appointed asset protection role to freeze a specific address; upon freezing, the address cannot transfer or receive tokens according to checks in transfer-related functions. The “unfreeze” function enables an assigned asset protection role to unfreeze a particular address, lifting any freeze-imposed limitations.
A designated asset protection role can utilize the “wipeFrozenAddress” function to clear the balance of a frozen address, effectively confiscating its tokens. The tokens are deducted from the total supply while setting the frozen address balance to zero. Although freezing features are currently under discussion, other well-known stablecoins like USDT, USDC, and USDP also possess address-freezing capabilities.
Many dollar-pegged token providers argue that these functionalities assist in regulatory compliance management or responding to suspicious activities. Additionally, the PYUSD contract employs an outdated Solidity version 0.4.24. Like most popular stablecoin assets presently, PYUSD’s contract can raise or lower the total token supply. Moreover, the PYUSD contract owner can also pause/unpause it, blocking transfers and approvals during a halted state.
The PYUSD smart contract shares similarities with today’s notable centralized stablecoin assets in terms of control and minting capabilities. It shouldn’t be confused with decentralized stablecoin assets or censorship-resistant cryptocurrencies like bitcoin (BTC). Paypal enjoys a substantial position in the financial world, and while PYUSD doesn’t pose a significant threat to decentralized and permissionless crypto assets, it could challenge centralized and regulated stablecoins.
How do you perceive the introduction of Paypal’s PYUSD and its unique ‘freeze’ option? Share your thoughts and opinions about this subject in the comments section below.
Warren Buffett Sees ‘No Option’ Other Than US Dollar as Reserve Currency, but Warns Fed Can’t ‘Just Print Money Indefinitely’
Warren Buffett, CEO of Berkshire Hathaway and one of the most renowned investors in the market, stated that he saw no viable option to become the world’s reserve currency besides the U.S. dollar. However, he warned about the dangers that printing too much money could bring to the strength of the currency in the future.
Warren Buffett’s Only Valid Option for Reserve Currency Is the U.S. Dollar
Warren Buffett, CEO of Berkshire Hathaway, also known as the ‘Oracle of Omaha’ due to his city of origin, gave his opinion about the status of the dollar as a reserve currency and how this could change in the future.
During the 2023 Berkshire Hathaway annual meeting, the legendary investor was asked about his thoughts about the process of de-dollarization that world markets are experiencing, with countries like India and Brazil seeking to reduce dollar dependence, and its relation with the U.S. Federal Reserve money printing processes and rising interest rates to control inflation.
Buffet explained that, in his opinion, the dollar was the only candidate to be considered the world’s reserve currency at the moment, but also raised concerns about how much the U.S. Federal Reserve could print without putting this reserve currency status in jeopardy.
The Dangers of Printing Money Indefinitely
Buffett explained that nobody knew the situation better than Jerome Powell, the President of the U.S. Federal Reserve, but added he was not in charge of the fiscal policy of the country.
The Oracle of Omaha warned about the actions of the U.S. regarding printing, stating:
Nobody knows how far you can go with a paper currency before it gets out of control, and particularly if you’re the world’s reserve currency. You don’t want to try and pick out the point where it does become a problem because then it’s all over.
Buffett remarked that when people lose faith in the currency, they behave in an entirely different manner than they do when they put some money in the bank or have a pension plan that will give them something with equal purchasing power. This can create other problems for the economy that Buffett concedes he cannot predict fully.
He concluded his answer reiterating his warning about money printing. He declared:
America is an incredible society, rich; you know, we got everything going for us, but that doesn’t mean we can just print money indefinitely.
What do you think about Warren Buffett’s thoughts on the U.S. dollar as a reserve currency and the dangers of printing money indefinitely? Tell us in the comments section below.
IMF Calls for ‘More’ Crypto Regulation — Says Banning Should Be an Option
International Monetary Fund (IMF) Managing Director Kristalina Georgieva says crypto needs “more regulation.” She added, “We should not take off the table banning those assets,” if regulation fails or is too slow to implement.
IMF’s Chief Calls for More Crypto Regulation
IMF Managing Director Kristalina Georgieva talked about crypto regulation Saturday on the sidelines of G20 meetings for finance ministers and central bank governors under India’s presidency in Bengaluru. Commenting on crypto oversight, she told reporters:
There has to be more regulation.
Her statement followed a roundtable discussion she co-chaired with Indian Finance Minister Nirmala Sitharaman. The IMF chief and India’s finance minister agreed that besides debt restructuring, regulating cryptocurrencies is a priority area for India.
Georgieva explained that the IMF, the Financial Stability Board (FSB), and the Bank for International Settlements (BIS) are committed to establishing a foundation for the regulation of cryptocurrencies that are not issued by governments or central banks. “We have to differentiate between central bank digital currencies [CBDCs] that are backed by the state and stablecoins, and crypto assets that are privately issued,” she stressed.
“There has to be very strong push for regulation,” the IMF chief emphasized, noting:
If regulation fails, if you’re slow to do it, then we should not take off the table banning those assets, because they may create financial stability risk.
The IMF executive board provided guidance this week to help countries develop effective crypto policies. While most executive board directors agreed that “strict bans are not the first-best option, but that targeted restrictions could apply,” a few thought that “outright bans should not be ruled out.”
In addition, the board advised: “Crypto assets should not be granted official currency or legal tender status in order to safeguard monetary sovereignty and stability.” Georgieva similarly said Saturday:
Crypto assets are nothing, they cannot be accepted as a legal tender.
The Fund has been against El Salvador accepting bitcoin as legal tender since the country made the crypto a national currency back in September 2021. However, the IMF said earlier this month that, so far, the risks from El Salvador adopting BTC as legal tender have not materialized.
What do you think about IMF Managing Director Kristalina Georgieva’s statements about crypto? Let us know in the comments section below.
Twitter Adds Ethereum Option To Tipping Feature
Twitter has had the “Tip Jar” feature for a while now and it has been a smooth sail so far. Bitcoin had been the only cryptocurrency option to tip on the feature but that is now changing. This week, Twitter introduced a new payment method to its Tip Jar feature, ethereum. This will allow users to tip their favorite content creators in more than one cryptocurrency.
Twitter Adds Ethereum
Twitter has added Ethereum payments to its “Tip Jar” service. The feature that allows users to ‘tip’ content creators on the app was launched late last year and now features on the profiles of millions of Twitter accounts. It originally included some well-known payment methods like Venmo, and also GoFundMe. Bitcoin, a long favorite of ex-CEO Jack Dorsey, was the only crypto to make the list.
Related Reading | This Indicator Points To A Bitcoin Bottom, K Next Target?
On Wednesday, the social media platform announced that it was adding more payment options to the feature. This included the Barter app from Flutterwave, Paga, Paytm, and the option to add an Ethereum address to receive tips on the app.
Have you set up Tips on your profile yet so it's easy for people to show their support?
Yes: Cool, we’ve added Paga, Barter by Flutterwave, Paytm, and the option to add your Ethereum address.
No: What are you waiting for? Here's how: https://t.co/Id5TwTpnCF
— Twitter Support (@TwitterSupport) February 16, 2022
The latest addition is part of Twitter’s move to expand payment options for the features. “We’re continuing to expand ways to get paid on Twitter which includes more choices for creators and fans who want to use crypto,” Twitter’s lead product manager of creator monetization Johnny Winston, told CoinDesk in a statement.
Although users are able to add Ethereum addresses to their profile, the social media giant revealed that Ethereum Name Service (ENS) domain names are not supported. However, users can tip their favorite accounts with ERC-20 tokens alongside ETH.
ETH falls ahead of trading day opening | Source: ETHUSD on TradingView.com
Twitter also recently added a new feature for paid “Twitter Blue” subscribers. It would allow users to authenticate non-fungible tokens (Non-Fungible Tokens) on the app. It also allows users to add NFTs as profile pictures.
Related Reading | TA: Ethereum Near Make-or-Break Levels, Why ETH Could Extend Losses
This feature is currently only available on iOS devices. Support for Android is expected to come at some point but there is no definite timeline for when Android users will get this feature.
Featured image from BBC, chart from TradingView.com
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Bitcoin Option Traders Seem Doubtful At Entering Directional Trades
Data from Bitcoin options shows that crypto traders are currently selling out and uncertain about entering directional bets on the coin’s future transactions. This is the highest occurrence of this kind of investors’ sentiments on the coin since last year May, when more than 50% of Bitcoin’s value declined.
Arcane Research’s Report On Bitcoin
Crypto market analysis company Arcane Research had recently published a report on the performance of Bitcoin. Their research highlighted that the coin experienced low volatility of over 70%, bolstering that this is the first time options traders have gone on a long-term bearish direction since last year May.
BTC stands above K | Source: BTCUSD on TradingView.com
Meanwhile, Bitcoin options enable traders to trade on BTC price movements; as the coin appreciates, the price of the options increases. Consequently, the analyzed low volatility shows that investors aren’t ready to bet on the direction of the leading cryptocurrency. Also, this is the first time that the coin’s options have been this cheap since May 2021.
Related Reading | Bitcoin Dominance Will Continue To Decline In Favor Of Ethereum, Altcoins, FTX US President
In addition, Arcane Research stated that the coin’s volatility skew has peaked since last May. The volatility skew evaluates the difference between market price and call price. Generally, the call option has been more costly than the pull options, creating a downward option skew.
Moreover, the recent depreciation in BTC price, the current BTC option skew, has now surmounted to its highest since the overall crypto crash in May 2021. This suggests more sellers than buyers in the coin, resulting in a bearish market.
Presently, Bitcoin option investors are the most bearish in a long while. Also, they’re hesitant about choosing a direction they feel that the BTC coin is moving in. Furthermore, the report shows that this signals traders to purchase cheap calls.
A Brief On Crypto Options
Options enable traders to place trades on an assets’ price directions. For a transaction to be completed, the traders buy the possibilities if the digital asset reaches a predicted price. Also, it’s worthy to note that volatile assets’ options have a greater demand, as they offer better possibilities for leveraging. Consequently, crypto assets with high volatility have more expensive options.
Despite Chaos, Bitcoin Price Faces a Turnaround
Regardless of traders’ lack of confidence and hesitations in betting on the directions of Bitcoin options, the coin seems to be gaining. From the 4-hour chart, Bitcoin has created an upward triangle pattern and shown a 15% increase from its previous upper boundary.
Related Reading | TA: Bitcoin Fails to Test K, Why Dips Could Be Attractive
For the world’s largest crypto asset to surmount its bullish milestone, it must surpass the upper boundary of the existing chart pattern, which is above k.
Featured image from Pixabay, chart from TradingView.com
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