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2023 Crypto Wealth Surge — Satoshi Nakamoto Tops With $26B Increase, Industry Titans Follow
A recent analysis indicates that Changpeng Zhao, Binance’s former chief, experienced a near billion surge in his estimated wealth in 2023, while Coinbase’s Brian Armstrong enjoyed a .8 billion increase. Yet, topping the list was the elusive Satoshi Nakamoto, whose purported net worth rose by billion this year.
CZ and Nakamoto’s Combined Wealth Increased by Billion This Year
The flourishing crypto market has significantly enhanced the fortunes of numerous executives in the sector, including Binance’s Changpeng Zhao, also known as CZ. On Tuesday, Bloomberg reported that CZ’s fortune swelled by approximately billion throughout the year, a sum that eclipses the penalties his company incurred from various U.S. federal bodies, such as the Department of Justice (DOJ). It’s estimated that CZ’s holdings exceed billion, with the bulk of his wealth linked to his stake in Binance.
Barry Silbert, the boss of Digital Currency Group, witnessed a .5 billion uptick in his net worth, while Gemini’s Winklevoss twins saw their fortunes rise by .4 billion. Concurrently, Coinbase’s Brian Armstrong‘s assets expanded by .8 billion, and co-founder Fred Ehrsam saw a .8 billion elevation in his estimated riches in 2023. However, the most significant beneficiary this year has been the enigmatic founder of Bitcoin, Satoshi Nakamoto.
It’s estimated that Nakamoto holds 1 million bitcoins, initially mined during the currency’s inception between 2009-2010. In 2023, Nakamoto’s fortune experienced an increase of approximately billion more than that of CZ, soaring from .53 billion in December 2022 to a staggering .59 billion. This equates to a .05 billion growth in wealth over the past year. Nakamoto’s net worth now sits squarely between Nike co-founder Phil Knight and MacKenzie Scott, the former spouse of Amazon’s Jeff Bezos, according to the Forbes real-time billionaires list.
Remarkably, since accumulating this wealth, not a single penny or satoshi has been moved from Nakamoto’s collection of BTC wallets, underscoring the enduring intrigue surrounding Bitcoin’s creator, whose identity remains the financial world’s most captivating enigma.
What do you think about the fact that Nakamoto’s net wealth grew by billion this year? Share your thoughts and opinions about this subject in the comments section below.
Analyzing The Titans: How Bitcoin Whales Influenced The Surge To $40,000
Bitcoin and the crypto market continue to smash critical resistance levels and hit new yearly highs. The cryptocurrency stands closer to the ,000 area as 2023 ends, and two major bullish catalyzers stand on the horizon.
As of this writing, Bitcoin (BTC) trades at ,800 with a 6% profit in the last 24 hours. In the previous seven days, BTC recorded an impressive 13% rally as analysts and the crypto community celebrated the beginning of a new bull cycle.
Bitcoin Whales Behind ,000 Rally, Are More Profits In Store?
Data provided by Ki Young Ju, CEO of crypto analysis firm CryptoQuant, indicates that Bitcoin whales have supported the current price action since August. At that time, the cryptocurrency re-took the higher area at ,000 and stood below the critical resistance at ,000.
As Bitcoin trended to the upside, whales took on “giga long positions” potentially in preparation for the current rally. This risk-on behavior began more discretely when BTC touched ,000.
Young Ju tied the market activity to increased buying orders from US investors. On Coinbase, the price of Bitcoin “skyrocketed” in October 2023.
Investors in the country have been buying more of the cryptocurrency in preparation for the spot BTC Exchange Traded Fund (ETF) approval and the Halving event. The latter of this event is the reduction of the rewards for mining BTC.
Furthermore, the CryptoQuant CEO believes retail investors have yet to board the rally. As seen in the chart below, BTC’s Realized Cap stood below 0.1, indicating “low liquidity” from retail investors in the crypto market.
Game Is Not Over For BTC
Additional data provided by Material Indicators confirmed the increasing buying pressure from whales. Analyst Keith Alan claimed that this behavior occurs to attract liquidity to the market.
Once liquidity, mostly from retail investors, enters the market, whales can “distribute” their coins or “dump” on retail to take profit from their position. Via his X handle, the analyst stated the following regarding BTC’s potential to continue the uptrend:
(…) because we now have ~M in near range #BTC bid liquidity, I’m considering buying this pullback because it doesn’t appear the game is over yet.
Cover image from Unsplash,chart from Tradingview
Bitcoin Mania: EY Insider Reveals Demand From Wall Street Titans, $40,000 Soon?
Paul Brody, a prominent figure in the blockchain community and the Global Blockchain Leader at Ernst & Young (EY), recently shed light on the burgeoning demand for crypto, with Bitcoin taking the limelight. Earlier today, during a CNBC interview, Brody emphasized the heightened interest, particularly from family offices.
Family Offices Lead The Charge
According to Brody, family offices, which typically manage the vast wealth of affluent families, are increasingly diversifying their portfolios with cryptocurrencies. This is not entirely surprising, given the meteoric rise of Bitcoin and its potential as a hedge against inflation and economic uncertainty.
However, while family offices are diving headfirst into the crypto pool, institutional investors are more cautious.
Brody mentions that these larger entities, controlling over 200 trillion dollars in assets, are awaiting regulatory clarity, such as the approval of a Bitcoin ETF by the US Securities and Exchange Commission, before committing significant resources.
Bitcoin, despite comparisons, is distinctly different from traditional assets like gold. Brody highlights a unique trait of Bitcoin: its price does not result in increased issuance. Instead, the issuance of new Bitcoin reduces over time due to halving events.
This property makes its price more “rigid,” especially compared to other assets traditionally used as inflation hedges.
Moreover, the purpose behind acquiring Bitcoin varies among its buyers. Brody points out:
If you look at people who are buying Bitcoin, they are buying it as an asset. They are not buying it as a payment tool.
Brody further notes that Ethereum, another major cryptocurrency, is mostly acquired for its utility as a computing platform, particularly for business transactions and decentralized finance (DeFi) solutions.
Bitcoin To ,000?
So far, Bitcoin has showcased a bullish trend, witnessing a near 10% increase over the past week and a 4.7% uptick in the last 24 hours. This surge has propelled Bitcoin to trade beyond the ,000 mark, reaching ,824 recently.
Observing the asset’s chart in the 1-day timeframe, BTC seems poised for even higher gains. As shown below, the asset has recently tapped into an order block and could continue its reversal to the upside, reaching a notable high.
Additionally, considering the strong institutional demand for BTC, as revealed by Brody, coupled with the potential approval of a spot BTC ETF, a rally to the ,000 mark seems to be on the horizon.
Furthermore, peering into the future of the financial landscape, Brody believes that traditional fiat currencies will continue to hold their ground.
However, with the ongoing discussions around Central Bank Digital Currencies (CBDCs) and the growing adoption of payment stablecoins, the crypto realm may be poised for evolution.
With global political developments unfolding and pivotal elections on the horizon, Brody foresees Bitcoin and the broader crypto space experiencing accelerated growth in adoption and recognition.
Featured image from iStock, Chart from TradingView
A Lehman Opportunity — Distressed-Debt Titans Eye Huge Returns in FTX Claims Market
Prominent distressed-debt moguls are diving into the FTX bankruptcy claims arena, seizing debts at bargain prices with aspirations of lofty profits. This year, Silver Point Capital, Diameter Capital Partners, and Attestor Capital have acquired over 0 million in FTX claims, court records reveal.
Report Says 0 Million in FTX Claims Acquired by Investment Heavyweights
FTX debt’s market has been supercharged as attorneys unearth assets. Some of these claims are now trading north of 30 cents on the dollar, noted Bloomberg’s Jeremy Hill this Thursday. The untapped market for bankruptcy claims lets investors snag unpaid claims at slashed prices. Bankrupt entities like FTX often see their claims bought for mere cents on the dollar.
Based on insights from Claims Market, FTX claims hovered around 33% of net worth as of September 15, 2023. This is slightly below the claims linked to the bankruptcy of crypto lender Celsius Networks, which have traded at about 34 cents on the dollar. Meanwhile, claims from Genesis Global Capital are fetching around 50% of their total value, according to claims-market.com.
“People made careers off of Lehman and Madoff — I think people see FTX as a Lehman or Madoff” opportunity Thomas Braziel, an investor in bankruptcy claims told Bloomberg on Thursday. His reference pointed to debt trades from the collapsed Lehman Brothers and the notorious Ponzi scheme orchestrated by Bernie Madoff. Braziel further mentioned:
The guys that are buying in these dockets, I consider them some of the smartest people in distressed.
Historically, investors who incurred losses from the Mt Gox debacle offloaded their assets below the claim’s value. Bernie Madoff’s victims traded claims to opportunists amid bankruptcy litigations. A report indicates that the bulk of sellers trading claims from Madoff’s pyramid scheme were regular investors.
While claims trading ensues post most significant corporate meltdowns, blue-chip investment houses typically sidestep minor bankruptcies. Yet, FTX’s glaring implosion, coupled with the discovery of billions in crypto assets, has magnetized heavyweight investors. Lawyers have also recouped funds squandered on dubious deals allegedly orchestrated by FTX’s Sam Bankman-Fried and associates.
The Enron debacle marked a monumental corporate bankruptcy in financial annals, and those claims too traded at steep markdowns. The core strategy? Investors snapping up unsettled FTX bills on the cheap, aiming to reclaim more than their initial outlay. Bankruptcy resolutions can stretch on, casting shadows over FTX’s real worth. Nonetheless, for the seasoned distressed debt aficionados, the prospective big-time gains eclipse the uncertainties.
What do you think about FTX claims being sold for .33 on the dollar? Share your thoughts and opinions about this subject in the comments section below.
PYUSD’s Modest Footprint: A Tale of Languid Activity Amidst Stablecoin Titans
Following Paypal’s declaration about the introduction of a fresh stablecoin, the smart contract address has revealed that the quantity of PYUSD stood at approximately 26.9 million. In the subsequent 22 days, the supply of PYUSD has risen by over 60%, now totaling 43.3 million.
Paypal’s Stablecoin Supply Surged by 60%, but the Dollar-Pegged Token Is Nowhere Near Today’s Stablecoin Giants
Paypal’s stablecoin has experienced a growth of more than 60% in its supply in under a month’s time. At present, there are 43.3 million PYUSD in existence, and approximately 346 distinct addresses hold PYUSD.
Despite the supply increase, the coin has only recorded a scant total of 1,462 transfers since its launch. Moreover, the Paxos-operated contract address holds 34.99 million PYUSD, approximately 80.8277% of the overall supply.
Paxos’ Treasury address ranks second-largest, containing 8.7797% of the supply or 3.8 million PYUSD. The third-largest PYUSD holding belongs to Crypto.com, with 2.79 million PYUSD, and the fourth-largest wallet also belongs to Crypto.com, controlling 1,101,601 PYUSD.
The fifth-largest PYUSD address, containing 500,005 tokens, lacks a label but is associated with a Kraken deposit address. The sixth-largest wallet is a Uniswap wallet, securing 47,722 PYUSD.
A substantial portion of the PYUSD cache rests with Paypal and essentially Paxos, alongside exchanges and market makers. The top 100 holders still collectively possess 99.99% of the entire PYUSD supply.
The PYUSD supply is notably small compared to today’s stablecoin giants, securing the 24th spot among the top 50 stablecoins. Other stablecoins with similar-sized market valuations include magic internet money (MIM) and bob (BOB), both boasting million in market capitalization.
When contrasted with the dominant stablecoin tether (USDT), PYUSD makes up a mere 0.052% of USDT’s billion market capitalization. When evaluating the .12 billion valuation of USDC, PYUSD accounts for a modest 0.16% portion of USDC’s comprehensive net valuation.
In recent weeks, the Paypal stablecoin has experienced growth. However, it falls considerably short of matching the scale, engagement, and trading levels set by numerous leading stablecoins.
Although the brand recognition and foundation provided by the payments giant offer some advantages, there is still a considerable journey ahead for PYUSD to emerge as a prominent player among stablecoins.
What do you think about Paypal’s stablecoin and its activity over the past few weeks? Share your thoughts and opinions about this subject in the comments section below.
The NFL’s First Team To Accept Crypto? The Tennessee Titans
The Tennessee Titans will be the first NFL team in the league to accept cryptocurrency payments, according to emerging reports. While details are limited, it’s now known that the club will utilize a third-party payments provider to allow for larger, recurring purchases via Bitcoin.
It’s unknown who exactly that payment provider is, if other crypto token payments will be supported now or in the future, and a timeline for such support (as well as potential timelines for broader support for more simple transactions like one-game tickets). Nonetheless, it’s still substantial news for a league that has historically been hesitant in allowing crypto integration.
The NFL’s Opening Up?
In recent weeks, new reports emerged that the NFL would lighten it’s restrictions around cryptocurrency deals for clubs, while still keeping some gates involved; while teams could now form cryptocurrency partners, there would still be restrictions around stadium signage and deal-length (capped at three years). Nonetheless, this still showed a signal that the league was warming up to crypto-related deals. To date, the NFL has sought out a stiffer stance on crypto deals, relative to most other leagues, that have engaged through a variety of sponsorship channels – from league-wide deals to individual team jersey sponsorships.
For the Tennessee Titans, while the functionality of Bitcoin-supported payments will only be available for large and recurring payments, the team has expressed a desire to have payment support for everything from tickets to merchandise and in-game food and beverage. Nonetheless, the move still secures the Titans as the first team in the NFL to accept crypto payments in any capacity. In the near-term, expect major payments for things like season tickets, suites, etc. to be the major crypto-related revenue for the team.
Adoption news has left BTC charts unbothered. | Source: BTC-USD on TradingView.com
Related Reading | TA: Bitcoin Steadies Above K, Why BTC Could Recover Higher
Tennessee Titans Joining The Short List
The Tennessee Titans join an exceptionally short list of professional teams in the ‘big four’ of sports leagues (NFL, NBA, NHL, and MLB) that accept crypto payments; the MLB’s Oakland Athletics and the NBA’s Dallas Mavericks and Sacramento Kings are the only major league clubs in the U.S. to make active strides in accepting crypto payments.
Expect this list to continue to grow, particularly as broader industry partnerships come to life – such as the recently announced Strike & Shopify deal. As crypto payments continue to see broader adoption, and as crypto exchange and blockchain technology sponsorship deals continue to grow and evolve, there be an increasing amount of clubs and even leagues that feel that there is a slice of the pie that they’re missing out on.
Related Reading | Mike Novogratz Doubles Down On 0,000 Bitcoin Prediction
Featured image from Pixabay, Charts from TradingView.com
The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.
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