Crypto-backed lending service CEX.IO LOAN, launched in October 2020, has been experiencing major demand, receiving over $100M worth of loan requests to date. Most of the requests came from institutional investors, despite the service’s popularity among retail clientele, as well.
They prefer the company’s service due to the convenience it offers to users. On the CEX.IO LOAN platform, customers can borrow cash against their cryptoassets in a quick and simple manner, without having to deal with credit checks or any unnecessary paperwork.
CEX.IO LOAN serves various cryptocurrency market participants, from retail investors and traders to startups and large enterprises. Users can borrow any amount between $500 and $100,000 at competitive interest rates starting at 8.75% per year and the loan duration ranging from seven days to one year.
The service has already experienced high demand from VIP clients, with 41% of all CEX.IO LOAN customers borrowing cash against Bitcoin, 53% – against Ethereum, and 6% – against decentralized finance (DeFi) tokens.
While retail investors borrow $1,400 on average, VIP clients request larger-sized loans, with the typical amount being $1 million or higher. Institutional clients also need the funds for more extended periods (usually, 6-12 months), which indicates a long-term asset management strategy.
“As institutional investors find the digital asset industry increasingly attractive, it’s a pleasure to serve them with our enterprise-grade instant crypto-backed loan platform. Security, convenience, and compliance are key priorities for corporate clients, which are features that we have been providing to all our clients in the rapidly growing CEX.IO ecosystem,” Anton Chashchin, Commercial Director for the CEX.IO LOAN service, stated.
About CEX.IO LOAN
CEX.IO LOAN is a part of the CEX.IO Group. Founded in 2013, CEX.IO operates one of the largest international exchanges of the cryptocurrency market, which has been featured among Crypto Compare’s ten best exchange services. With offices in the UK, USA, Ukraine, Cyprus, and Gibraltar, CEX.IO serves over 3 million customers worldwide. From entry-level users to professional traders, as well as institutions and businesses, CEX.IO suits the needs of various crypto market participants with a reliable, high-security digital asset service.
We’ve written frequently about the 4 year cycle in cryptocurrency prices. Cryptocurrency – this first of which was Bitcoin – was introduced in 2009. Four years later, in 2013, prices surged to a blowoff top. Exactly four years later, in 2017, prices again surged to another blowoff top.
Using this 4 year cycle as a guide, later this year, in 2021, the cryptocurrency market should again experience another blowoff top.
Let’s take a look at the previous altcoin season and use that price information to make an educated forecast of where the altcoin market is likely headed later this year.
Whereas Bitcoin was released in 2009, the first Altcoin wasn’t released until 2011. However, Bitcoin is the undisputed leader of the entire cryptocurrency market. The 4 year cycle in altcoins does not see a peak 4 years after the introduction of the first altcoin, but rather the altcoins follow the leader – Bitcoin – and rise and fall in tandem with it.
Here is the chart of the first blowoff top of the entire altcoin market cap:
You can see from the chart above that the total market cap of the entire altcoin market reached its peak of $2,004,339 billion on December 4, 2013.
Like Bitcoin, after reaching its blowoff top in 2013, the altcoins went into a bear market for the next 2 years.
It was not until June of 2016 that the altcoin market convincingly topped its previous all time high, and it wasn’t until more than 3 years later, on December 28, 2016 – exactly 1,120 days – that the altcoin market exceeded its previous all time high for good.
What did the altcoin market do after exceeding its old all time high for good?
The answer can be found in the following chart:
After permanently exceeding the 2013 all time high on December 28, 2016, altcoins then rose for the next 375 days to set a new all time high of $551,926,104 billion on January 5, 2018.
That’s a gain of 27,536%, or stated another way, 275-to-1.
Now let’s take a look at what has happened since then, and see if the altcoin market is following the same pattern, and if so where the 2021 altcoin season is heading.
The 4 Year Cycle In Action
Like what happened in 2013, after reaching its blowoff top in 2017, the altcoins went into a bear market for the next 2 years.
It wasn’t until more than 3 years later, on February 11, 2021 (4 days ago!) – exactly 1,133 days – that the altcoin market exceeded its previous all time high for good.
The cycles are amazingly close. In the previous altcoin cycle it took exactly 1120 days for the altcoin market to convincingly exceed its previous record peak, and in the current altcoin cycle it has taken 1133 days to do the same.
The difference in timing is a mere 13 days, which is only one tenth of one percent!
So where to from here?
The Next Altcoin Blowoff Top
Using this cycle as guidance, it would indicate that the altcoin market will go up for the next 375 days and reach a top on February 20, 2022.
If the overall percentage gain is identical, that would place the total altcoin market cap at over $151 trillion.
“As institutional demand for transparent, exchange-listed crypto derivatives continues to increase, we are pleased to launch our new Ether futures contract,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “The addition of Ether, along with our liquid Bitcoin futures and options, will create new opportunities for a broad array of clients, whether they are looking to hedge ether positions in the spot market or gain exposure to this cryptocurrency on a regulated derivatives marketplace.”
“Just like in other capital markets, derivatives have become the avenue of choice for institutions to access cryptocurrencies,” said Sui Chung, CEO of CF Benchmarks. “Our status as a U.K. FCA regulated benchmark provider, whose compliance is regularly audited by Deloitte, gives institutions further confidence to enter the cryptocurrency space via the CME Ether futures contact based on our CME CF Ether-Dollar Reference Rate. For the first time, investors can gain exposure to the second-largest cryptocurrency by market cap via a U.S.-regulated futures contract. Just as Bitcoin futures paved the way for institutions to enter the crypto market in 2017, so CME Ether futures will allow CME Group clients to gain even greater exposure to the asset class.”
“CME Group has been an integral participant in the continued institutionalization of this asset class, and the launch of Ether futures is yet another milestone,” said Michael Moro, CEO of Genesis Global Trading Inc. “Genesis is excited to continue to work closely with CME in this effort.”
“The launch of CME Ether futures is an exciting addition to the digital assets ecosystem as it evidences the ongoing maturation of the asset class as a whole,” said Michael Sonnenshein, CEO of Grayscale Investments. “At Grayscale Investments, we’ve seen enormous growth in investor interest for Ethereum and we’re excited to see the growing list of financial product offerings expanding access to digital currencies.”
CME Ether futures are cash-settled, based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of Ether. Ether futures are listed on and subject to the rules of CME.
As the world’s leading and most diverse derivatives marketplace, CME Group enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.
Over a decade ago, a white paper by Satoshi Nakamoto was distributed to a cryptography mailing list outlining a novel proposal for a “peer-to-peer electronic cash system” called bitcoin. This innovation spurred a new, global industry and asset class that has created hundreds of billions of dollars in value, and inspired a generation of entrepreneurs and innovators.
From the foreword
Another pro-crypto statement:
The World Economic Forum Global Future Council on Cryptocurrencies represents a broad cross-section of experts working to make cryptocurrencies useful across a wide range of use cases.
From the foreword
And one more:
Cryptocurrencies have reached a point of inevitability. We have dedicated our careers to advancing the adoption and use of cryptocurrencies because we believe they represent an enormous opportunity to grow the global digital economy and benefit consumers and businesses across the world.
From the foreword
When on reads the report, it becomes very clear that the World Economic Forum clearly believes that cryptocurrency will permeate all economic and financial transactions globally.
We pointed out how closely 2021 price behavior is following 2017 price behavior:
This year, Bitcoin reached its high on January 8, only 3 days later than it did in 2017.
In 2017, the previous 4th year of the Bitcoin cycle (2021 is also a 4th year of the Bitcoin cycle), Bitcoin made an intermediate high on January 5 and an intermediate low on January 25.
This year, Bitcoin made an intermediate high on January 8, and made an intermediate low on January 28 – again, exactly 3 days later than it did in 2017.
The timing of these swing lows and highs is remarkable.
Using this data, we predict that February will not see a new all time high for the price of Bitcoin.
If the pattern continues to follow 2017 this precisely (at some point it will diverge, markets don’t repeat so precisely for extended periods of time), the new all time high for Bitcoin will not arrive in February, as the pattern in 2017 saw Bitcoin top its early January high on February 28th of that year.
Comparing 2021 to 2017, the cycle has been experiencing a 3 day delay, which would suggest a new all time high for Bitcoin will not be reached this year until March 3.
Of course, this forecast is not guaranteed. Highly charged positive crypto news events could cause Bitcoin to surge to new highs sooner, while the unexpected appearance of negative Bitcoin news sphere could delay the timing of a new all time high for Bitcoin.
We are quite certain, however, that a new all time high for Bitcoin is only a matter of time.
Created by experienced automotive professionals, Carnomaly harnesses the limitless potential of the blockchain and cryptocurrency to provide innovative solutions for some of the most pressing problems in today’s automotive industry. Carnomaly can solve numerous industry inefficiencies, such as undervalued trades, high-interest rates, overpaying for vehicles, a confusing purchase process, and inaccurate vehicle histories with its fleet of technology solutions: the CARR token, CarrChain, and CarrDefi.
To fund its development and the global reward program, Carnomaly created CARR tokens. The Ethereum network hosts the token exclusively through its ERC-20 smart contract. Utilizing only the Ethereum network makes it simple to analyze how many tokens each member holds and the membership level each member has achieved.
CarrChain is a web-based application through which vehicle owners can easily manage and update their vehicle’s online profile. The better updated an owner keeps their vehicle’s profile, the more points they can earn towards the car’s reputation score. When the time comes to sell the car, this gives a competitive edge to the seller.
Essential Benefits of CarrChain:
Achieve real-time vehicle sales by eliminating lengthy title transfers
Replace confusing, incomplete vehicle maintenance paper records
Notify dealers and private buyers of possible weather damage to a vehicle through the Natural Disaster Bulletin
Provide complete historical records for the dealer when it’s time to sell
Increase the value of the car
Discover service gaps in maintenance to improve the lifetime performance of the vehicle
CarrDefi is a crypto-powered solution from Carnomaly to eliminate outdated and inflexible auto lending. It utilizes a decentralized blockchain system where loans and assets can be purchased or sold without a bank. Carnomaly members can use CarrDefi to securely connect with borrowers and lenders through loan pools created by Carnomaly’s financial experts.
Carnomaly will offer 250,000,000 CARR tokens in three separate IEOs, the first of which launched on Jan.26. To ensure stability for token holders, Carnomaly is dedicated to listing on some of the top exchanges with the highest liquidity. Once the final IEO sale has concluded, Carnomaly will lock company funds for 90 days.
Carnomaly is the future of the automotive industry. Their fleet of tech solutions will bring digital innovation to the automotive industry through the power of blockchain technology. CarrChain, CarrDefi, and the Carnomaly marketplace will change the way we buy, sell, shop, report, and finance new or used vehicles.
Several of our news articles this year – as well as several from last year – included details regarding the 4 year cycle in cryptocurrency prices. The editors at Top5Cryptos are strongly of the opinion that the entire cryptocurrency market is correlating to the previous 4 year cycle patterns in excess of 90%.
Using this year cycle pattern, we are going to predict the general price action of the crypto market for the months of February and March.
First, though, we will look at the crypto price behavior during the previous 4 year cycle top of 2017.
Bitcoin Price Performance In Early 2017
Bitcoin started the first day of 2017 at $1,003. It rose rapidly, gaining nearly 19% by January 5th.
Bitcoin then fell by 24% to reach a low on January 25.
From that date, Bitcoin basically bounced up and down in price without going much in either direction. Prices were choppy from January 25 until February 16.
From February 16 to February 24, Bitcoin had a sustained upward movement in price, reaching the same price that it had attained on January 5 of that year.
From February 24 until March 1, the price of Bitcoin remained near the high of January 5. However, on March 2, Bitcoin broke out above the high of January 5, rising about 8% above the peak price attained in early January.
Bitcoin then suffered a 20% correction into a low on March 19.
Bitcoin then again experienced choppy sideways price action until March 30.
April was the month that the climb in the Bitcoin price really kicked into high gear and Bitcoin left for good the trading range it had been in the first 3 months of the year.
Here is what the Bitcoin chart looked like for the above described time period in 2017:
RISK DISCLOSURE: BY ACCESSING OR USING ANY BITTREX SERVICES YOU ARE VOLUNTARILY CHOOSING TO ENGAGE IN SOPHISTICATED AND RISKY FINANCIAL TRANSACTIONS. YOU ARE FURTHER ACKNOWLEDGING THAT YOU ARE AWARE OF THE MANY RISKS ASSOCIATED WITH THE USE OF THESE SERVICES AND WITH ENGAGING IN TRANSACTIONS IN CRYPTOCURRENCIES, INCLUDING BUT NOT LIMITED TO, RISKS OF FINANCIAL LOSS, TECHNOLOGY GLITCHES (INCLUDING BUT NOT LIMITED TO PROBLEMS WITH THE BLOCKCHAIN TECHNOLOGY), AND HACKING. BITTREX WORKS HARD TO PROVIDE STATE-OF-THE-ART SYSTEMS AND SECURITY. NONETHELESS, CERTAIN ISSUES AND RISKS ARE UNAVOIDABLE, AND IF SUCH ISSUES OR PROBLEMS ARISE IN CONNECTION WITH YOUR USE OF BITTREX’S SERVICES, INCLUDING TECHNICAL DIFFICULTIES WITH DEPOSITING OR TRADING CRYPTOCURRENCIES, IT MAY TAKE DAYS, WEEKS, OR MONTHS TO RESOLVE, AND SOME ISSUES MAY NOT BE RESOLVED AT ALL. BY AGREEING TO THESE TERMS, YOU ACKNOWLEDGE THAT BITTREX IS NOT RESPONSIBLE FOR THE AFOREMENTIONED RISKS, AND YOU VOLUNTARILY ASSUME AND ACCEPT SUCH RISKS IN DECIDING TO ENGAGE IN CRYPTOCURRENCY TRANSACTIONS ON THE BITTREX PLATFORM.
Sometimes legal wording/disclaimers can be extra wordy and confusing. Often, this is done on purpose.
This updated terms of service can be broken down into 3 parts:
If you continue to use Bittrex knowing these risks, the responsibility for these risks are yours and not Bittrex.
While those 3 points seem sensible and realistic at first glance, but, as the saying goes, the devil is in the details.
Let us quote directly from the above language, only we will take out much of the wordage – without changing any of it – just to make a point:
YOU ARE AWARE OF THE MANY RISKS ASSOCIATED WITH THE USE OF THESE SERVICES… INCLUDING …. HACKING. IT MAY TAKE DAYS, WEEKS, OR MONTHS TO RESOLVE, AND SOME ISSUES MAY NOT BE RESOLVED AT ALL. BY AGREEING TO THESE TERMS, YOU ACKNOWLEDGE THAT BITTREX IS NOT RESPONSIBLE FOR THE AFOREMENTIONED RISKS, AND YOU VOLUNTARILY ASSUME AND ACCEPT SUCH RISKS.
Again, we’re not lawyers and this is NOT legal advice. As non-lawyers, we read the above statement and conclude that Bittrex is telling you that if they get hacked, the losses “MAY NOT BE RESOLVED AT ALL,” and that “BITTREX IS NOT RESPONSIBLE,” and finally, you “ASSUME AND ACCEPT SUCH RISKS.”
If our understanding is correct, that means that if Bittrex loses any of your money in any type of “hacking,” you’re out and you cannot hold Bittrex accountable for the losses.
Would you deposit into a bank if the bank’s legal disclaimer told you that if the bank gets robbed, you’re money is gone and you cannot hold the bank responsible?
CatalX is a Canadian-based FINTRAC registered and compliant digital asset exchange platform that specializes in cryptocurrency trading, blockchain and cybersecurity technology. CatalX has developed a scalable and modularized platform with a trading engine that can scale to millions of users in real time and cutting-edge cyber security system CyberSmoat®, which is patent pending.
The proposed equity investment will be satisfied through the issuance of 37,500,000 common shares of LiteLink to CatalX and a cash payment to CatalX of C$500,000, and would result in LiteLink having ownership and control over 19% of the outstanding share capital of CatalX. In conjunction with closing of the investment, LiteLink will also pay a finder’s fee to an arm’s length party of 1,875,000 common shares of LiteLink. All securities issued in connection with the investment in CatalX will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities law.
“We are very excited to make this investment into CatalX, Canada’s leading cryptocurrency exchange, and gaining a stake in the expanding cryptocurrency market,” said LiteLink CEO Peter Green. “CatalX has had an outstanding year and continues to grow. In January 2021 alone, the company experienced 80% growth in new registrations quarter-over-quarter and has already clocked in $1.05 million in deposits in the first 21 days of January.
“In the last five days, CatalX has seen $525,000 in deposits, signaling big things to come moving forward as more and more businesses and investors turn their attention towards the crypto market.”
“CatalX has also experienced significant growth in its trading volumes, with average monthly volume hitting $1.37 million in December 2020. In the first 3.5 weeks of January, the trading volume was sitting at $2.85 million and is projected to reach $5 million for January, a 590% increase from its October/November average of $725,000. In the last five days alone, the trading volume was $1.36 million. In short, this company is growing very quickly.
“It isn’t surprising when you look at the growth of the overall market. Bitcoin just closed out one of the biggest years in its history and is expected to continue rallying in 2021 thanks to a surge of new developments coming into the crypto space this year, including the launch of Facebook’s bitcoin-inspired cryptocurrency and the US cryptocurrency regulations.
“Despite recent price volatility, Bitcoin is still up over 290% in the last year and is expected to stay elevated thanks to growing adoption of crypto among payment giants like PayPal and Square and rising interest among institutional investors.
“At the same time, the world’s second-largest cryptocurrency Ethereum has skyrocketed 300% over the last 12 months amid a flurry of interest in decentralized finance (DeFi)—using crypto technology to recreate traditional financial instruments such as loans and insurance with many DeFi projects built on top of the Ethereum network.
“Cryptocurrency is clearly here to stay, so we are very excited about building a strong relationship with Canada’s leading cryptocurrency exchange.”
The Company is at arms-length from CatalX. Completion of the investment in CatalX is subject to a number of conditions, including, but not limited to, completion of due diligence, negotiation of definitive documentation and the receipt of any required regulatory approvals. The proposed investment is not expected to constitute a fundamental change for the Company, nor is it expected to result in a change of control of the Company, within the meaning of applicable securities laws and the policies of the Canadian Securities Exchange.
LiteLink would also like to announce that it has engaged North Equities to provide and manage a comprehensive six-month digital media marketing campaign for the Company for a total cost of $100,000. The Company has also engaged Djordje Kovic for a digital media and marketing campaign for four months for a total cost of $45,000.
LiteLink Technologies Inc. is a company focused on emerging technologies across growth sectors including: crypto, blockchain, AI and cloud technologies. Led by senior leaders and industry experts, LiteLink invests in and provides subject matter experts within portfolio companies to accelerate success and maximize value for shareholders.
CatalX.io is a Canadian-based is a digital asset exchange platform that specializes in cryptocurrency trading, blockchain and cybersecurity technology. As a fully regulated Cryptocurrency exchange with FINTRAC, CatalX has the highest standards in security and compliance and is partnered with world-trusted names in Blockchain technologies, risk management and financial solutions including Bittrex, Prime Trust, Trulioo and Stably to provide their users with a trusted, secure platform.
It’s January and today we’re adding our EOS price prediction to the list of coins that we’ve already made a 2021 forecast for. Later on down the page we’ll explain more about EOS and our reasons for being so bullish on it, but you’re here for the price prediction and we’ll jump right to it.
As always, we like to review price forecasts made by others in the crypto industry before we provide our own. This gives you a reference for easy comparison.
According to TradingBeasts, the EOS price in December 2020 will reach a maximum of $3.4, after which the forecasting service expects it to drop back down to $2.7, on average.
In January 2021, its EOS crypto price prediction shows the coin remaining near this level, at around $2.7, later expecting it to experience a slow but steady rise throughout the year, with the coin having the potential to hit a high of $3.9 next December. The average price of EOS is predicted to reach $4.07 in December 2022, and then $5.03 in December 2023.
Wallet Investor also expects the currency’s price to rise in early 2021, although their EOS coin forecast says that the asset will see a price crash in the second half of the year. The event will potentially lead EOS down to $1.2 one year from now.
As for CryptoGround, they have a very bullish EOS prediction. In fact, their EOS forecast claims that the coin will simply keep climbing, with its value reaching $4.17 in six months, $4.7 in one year, and $21.4 by December 2025.
What are crypto experts forecasting for EOS in 2021?
Now that we’ve explained a bit more about EOS, let’s look forward to 2021 and see what some of the top crypto analysts believe could happen to EOS price. According to DigitalCoinPrice, the outlook for EOS is promising:
As we can see from this chart, DigitalCoinPrice has forecast that the price of EOS will increase before the end of 2020. Its January 2021 predictions place the price at $6.07, which is more than double its current price of $2.64. The platform believes that the price will then rise to $7.49 in February before slipping down to its lowest point of 2021 in April when it could be worth just $5.47. However, this dip won’t last long. For the rest of the year, DigitalCoinPrice predicts that EOS will swing between $6.20 and $7.39, ending the year on a brief bullish trend.
If you’re wondering ‘is EOS a good investment?’, this outlook is reasonably optimistic. It shows that the price of EOS will go up from 2020, but that its progress won’t be linear throughout the year. Those who like to make short-term trades could see the chart above as an opportunity to cash in on short-term fluctuations — for example, by selling in March, buying in April, and selling again in June.
Let’s move on to the platform WalletInvestor to see whether its predictions align with those given by DigitalCoinPrice. We can see its forecasts represented in this graph:
At the start of the year, the pattern we can see on WalletInvestor’s graph is not unlike that on the graph from DigitalCoinPrice. Both feature a sharp rise at the start of the year followed by a dip around May, before climbing up again in June. They even give very similar values for its yearly ATH, suggesting that EOS will start to approach prices of just under $8.
The key difference between these predictions is evident in the second half of the year. Whereas DigitalCoinPrice believes that the price of EOS will ultimately close 2021 on an upwards trend, WalletInvestor foresees a very pessimistic bearish run, with its price crashing down to below $1. This is undoubtedly bad news for any investors wondering ‘will EOS go up?’.
These EOS end of the year price forecasts range from about $1 to $47. That’s quite a range!
To date, no major studies have examined this cycle in detail.
This cycle has existed the entire life of the cryptocurrency market. While it certainly could disappear, we see no reason for this cycle to suddenly vanish.
This 4 year cycle, which has existed in the cryptocurrency market since day one, suggests that 2021 is going to be another roaring year for crypto prices.
Previous 4 Year Cycle Tops
The previous two topping patterns of the 4 year cycle were 2013 and 2017. The next cycle peak is due around Christmas time in 2021.
Bitcoin has been through two complete 4 year cycles. EOS was released in January of 2018, and thus we don’t have any previous cycle price patterns for reference. Price history only goes back to mid January of that year.
We are predicting bitcoin to go up in price by a factor of 15.4 times to reach its high at the end of this year.
We are predicting Stellar Lumens to go up in price by a factor of 20 to 74 times to reach its high at the end of this year.
We are predicting Ethereum to go up in price by a factor of 18 to 34 times to reach its high at the end of this year.
EOS started 2021 at a price of $2.64 on January 1.
EOS 30x This Year
We believe that the price performance of EOS this year will mirror that of XLM and ETH. As such, we are going to use a multiplier of 30x.
Using this multiplier, we predict a price high for EOS at the end of this year to be $79.20.
Our EOS 2021 Price Prediction: $79.20
That’s our EOS prediction. While it may seem unreasonably high, let us remind you that at that price the total Market Cap of EOS would only be about $79 billion. As of press time, Ethereum has a total market cap of $150 billion. We believe it is reasonable to forecast EOS could reach this size of a market cap.
An Introduction to EOS For Newbies
EOS is actually the indigenous cryptocurrency underpinning the EOS.IO blockchain protocol. EOS.IO is actually an intelligent contract platform for decentralized applications and protocol designed as an enterprise solution for scaling computer resources, emulating computer processing hardware, storage, and other things. EOS was developed, including several high cryptocurrency projects, to resolve the speed, flexibility, and high fees and scalability issues in both Ethereum and Bitcoin.
EOS is actually based on a white paper released in 2017, created by the Dan Larimer and Brendan Blumer lead Block.One. The EOS first coin offering launched in June 2017 and concluded in the following June in 2018. The ICO broke records for probably the largest length of capital raised in an ICO, pulling in more than $4.197 billion.
EOS is actually a blockchain based decentralized platform which allows the development, hosting, and also execution of decentralized applications (dApps). It’s existed for many years, and also like some other crypto project which focuses on development, rather compared to payments – it was influenced by Ethereum.
Nevertheless, EOS has an objective of being better, faster, more scalable and providing greater plus more complex services, making it Ethereum’s rival.
The project started the ICO of its back on June twenty six, 2017, and it ran until June one, 2018. Before, it was probably the longest ICO of all the time, as well as among probably the most successful. After the year long ICO was concluded, EOS emerged with the raised $4.1bn, which quickly attracted attention to the venture.
Like the majority of ICO projects, EOS was launched on Ethereum’s network, from which it later migrated upon creating its own blockchain of late. Sad to say, the project faced quite a great deal of problems if the time for the mainnet launch of its had arrived, receiving a large amount of criticism. After delays, the mainnet finally discovered the launch in mid June, just to purchase frozen 2 days later.
Nevertheless, despite the rocky start, EOS ultimately managed to pull itself collectively, launching rather a skilled blockchain.
EOS is actually among the more debatable crypto tokens across the crypto sector, but due to the disruptive technology of its might have among probably the largest long term profit potential. The blockchain technology behind the EOS.IO protocol has the potential to substantially alter the future of computer resources and applications and improve upon a number of companies and industries. Because of the effective impact EOS might have, it is long term value might increase exponentially.
Using important analysis to forecast the long term view of the crypto asset, and providing complex analysis from specialists from across the industry, long-term price predictions are able to assist an investor decide whether EOS is actually a great investment decision.
The evidence is abundant that 2021 is the year that will bring a jaw-dropping Altcoin Season. Just as the sun rises in the East and sets in the West, Bitcoin is the first cryptocurrency to rise in price, and the Altcoins eventually follow.
Bitcoin Leads, The Altcoins Follow
There’s no questioning that Bitcoin is the definitive OG of the cryptoshere, as is most likely best highlighted by the point that the flagship digital asset has been in a position to pique the interest of many prominent legacy financial institutions – like Microstrategy, BlackRock, Grayscale – during the last year or thereabouts.
Even with all the sell offs and volatility which was witnessed during the last week, data available on the web definitely shows that the number of addresses with 1,000 or over Bitcoin (referred to as “whales” in the crypto world) has continued to increase. As is ALWAYS so with professional institutional money, the “buy-the-dip” strategy is employed with full force.
While big institutional players plant news stories and give interviews that create fear, uncertainty and doubt (FUD) – thus driving the price down as nervous traders sell – at the same time they are accumulating for themselves at lower prices.
Like it or not, that’s standard operating procedure for traditional markets, and especially crypto.
And where Bitcoin leads, the altcoins will follow.
Forecasting Altcoin Market Activity for the Coming Year
We’ve been pounding the table that 2021 is going to be another moonshot type of year due to the 4-year cycle. 2013 was the year of the first 4-year cycle top. 2017 was the second instance of a tremendous crypto bull run into the second top of the 4-year cycle.
2021 will be the year of the third top of the 4-year cycle.
In order to gain a better understanding of how the 4 year cycle top will play out, we’ll go back and examine the previous iteration of the cycle.
Looking At The Altcoin Season Of 2017
It’s been said that “History doesn’t repeat, but it sure does rhyme.” If you go back and look at historical prices of Bitcoin from previous years, it’s very obvious that Bitcoin isn’t following the 4-year cycle precisely 100% on a daily basis, but the correlation is over 90%.
In other words, Bitcoin price action rhymes with previous Bitcoin price action.
Let’s look closely at Bitcoin’s price action in 2017 as well as the leader of the altcoins, Ethereum.
Bitcoin Price Action In 2017
Bitcoin was priced at $1,003 on January 1, 2017.
It took 138 days for Bitcoin to double in price. (May 18)
It took 216 days for Bitcoin to triple in price. (August 4)
It took 226 days for Bitcoin to quadruple in price. (August 14)
It took 284 days for Bitcoin to quintuple in price. (October 11)
Ultimately, Bitcoin went up more than 19-fold into the 4-year cycle high on December 17, 2017.
Ethereum Price Action In 2017
Ethereum was priced at $8.20 on January 1, 2017.
It took 60 days for Ethereum to double in price. (March 1)
It took 72 days for Ethereum to triple in price. (March 13)
It took 74 days for Ethereum to quadruple in price. (March 15)
It took 75 days for Ethereum to quintuple in price. (March 16)
By the first day of summer, June 21, Ethereum had increased in price by a factor of 41 times over.
Ultimately, Ethereum went up more than 170-fold into the 4-year cycle high on January 10, 2018.
Altcoin Season Lessons
Looking at the above prices of both Bitcoin and Ethereum, we can gain insights into how the altcoin season of 2021 will unfold.
Here are some key takeaways:
Once altcoin season starts to gain momentum, prices of meritable altcoins will rise faster than Bitcoin.
March is likely to be a very good month for the leading altcoins.
By the summer of 2021, a handful of the best altcoins should be as much as 40 times higher in price compared to where they started the year.
The top altcoins could go up in price more than 150 times their value at the start of the year.
Bitcoin will reach its 4-year cycle peak 3 to 4 weeks before the altcoins do, and will start its new bear market.
The entire altcoin market will follow Bitcoin into its next bear market.
An altcoin season is also a term used for a season in which an altcoin is outperforming the price of the original: Bitcoin. There are three stages to an altcoin season. The first stage is when there is a profiting trend on an altcoin that is very new, or a trend that is new to a particular altcoin. The second stage is when the profiting trend dies down, and there is no longer any substantial profit potential from the altcoin in question.
In the third phase, after the profiting trend has died down, the altcoin season starts to see a new influx of traders who are looking to make a long position in the market. By this stage, the profitability potential in trading on any altcoin is significantly reduced. During the second phase, the price movement of all-time high prices of bitcoin continues on its upward trek.
One of the factors that makes the altcoin season so interesting to follow is the fact that there is considerable amount of volatility in the market. The large increase in volatility is what allows an investor to profit from the trading of ether and another high valued alternative currency. Volatility is usually considered a good thing for experienced traders because it increases the opportunities to profit from price movement – both UP and DOWN.
For investors and holders, however, the volatility can be nerve wracking.
lastly, it’s important to remember that the altcoin season doesn’t last forever. In fact, most (statistically it’s over 90%!) investors lose money during the bearish period. However, if you find several profitable altcoins during this time, it can be literally, life-changing.
Come the end of 2021, just remember one fact: trees don’t grow to the sky.
Crypto Rating – XLM $0.69 Crypto Rating, an esteemed authority and providing realistic price predictions on various cryptocurrency assets, has given XLM a price forecast of just $0.46 within a year, and in the next five years expects Stellar to reach a price target of $0.69. Given past performance, these estimates are modest.
The Economy Forecast Agency – XLM $0.64 The Economy Forecast Agency uses a long-term forecasting valuation model to predict prices of various assets, including cryptocurrencies, projects Stellar Lumens growth to reach just $0.64, matching the sentiment of many of the other experts and analysts listed.
Long Forecast Stellar Prediction – $0.30 Long Forecast gave an entirely conservative prediction, as their stellar price prediction forecasts that XLM might reach $0.30, which make sit look like it won’t grow much as compared to the current price.
Wallet Investor XLM Price Prediction – XLM $1.05 Wallet Investor updates prices and predictions every three minutes using the latest technical analysis. They have very conservatively made a 5-Year forecast of $1.005.
Mega Crypto Price – XLM $5.10 The price forecast at Mega Crypto Price has been very optimistic for all the cryptocurrencies and its the same for XLM price forecast, too, predicting that Stellar could be worth $5.10 by the end of 2020. The team says that this can be achieved as long as there are no major security flaws and the overall sector performs well.
Monetize Info – XLM $3.00 Monetize believes that Stellar’s major partnerships will be the major reason behind an upcoming price surge, which might result in XLM’s price reaching $2-$3 by 2020. Beyond IBM, Stellar’s partners include Stripe, Deloitte, etc.
For example, Stripe gave Stellar a 3-million-dollar capital injection a few years back which Stellar immediately returned in XLM.
The Economy Forecast Agency – XLM $0.64 This website features a long-range forecasting model to make market forecasts for corporate clients. The website has its own price prediction for 2020, which says XLM will see a high of $0.64 in 2020, which is by far the most conservative and pessimistic of XLM’s price predictions.
There are other popular websites that share predictions for the price of Stellar Lumens, however, the forecasts are rather outdated and have already proven inaccurate. For instance, cryptonewsz.com predicts:
The predicted high for 2021 might be around $0.089 and on the downside, the low might be around $0.065.
As of press time, January 20, 2021, and at last check the current price of XLM is just a tad under $0.29. Stellar Lumens has already tripled the yearly high predicted by cryptonewsz.com.
A Summary of Stellar Lumens Predictions
The above Stellar Lumens price predictions for 2021 range from a low of $0.10 to the highest XLM forecast price of $5.10.
Our Analysis suggests that all of the above 11 XLM predictions are too low.
It is our conviction that 2021 is the year in which the next 4 year cycle top is due. The first 4 year cycle top arrive in 2013, and the second 4 year cycle top arrived in 2017.
XLM To Surge For 4 Year Cycle High In 2021
Bitcoin is the only coin that we have data for both 4 year cycle tops. To calculate our Ethereum price prediction for 2021 we only had data from one 4 year cycle top. We reported that, “Ethereum went up by a factor between 89x and 173x during 2017 for the last 4 year cycle top.”
We use previous price performance as a guide to possible future price performance. Of course, it’s no guarantee, only a guide.
So what was Stellar Lumens’ price performance in 2017?
Stellar Lumens In The Previous 4 Year Cycle High
On January 1, 2017, XLM was priced at one-fourth of a cent, $0.0025. It ended the year at 36 cents, $0.36. However, it did reach an all time high 4 days later at over 93 cents.
Depending on whether you’re looking at the highest price reached on January 4, or whether you’re looking at the end of the year price 4 days prior, XLM went up in price between 144x and 372x.
We do not expect XLM to increase by the same amount. Bitcoin’s 2nd four year cycle saw gains much less than its first, and we expect Stellar Lumens to do the same.
All factors considered, including the macro financial climate, the new crypto-friendly administration in the U.S., and the 4 year cycle, we are expecting XLM to go up in price by a factor between 29x and 74x.
Stellar Lumens started this year at a price just shy of $0.13. Thus, are target high price for XLM at year end is between $3.77 and $10.01.
Stellar Lumens at $10.01 in 2021
We believe the conditions favor a very strong crypto bull run in 2021, and thus we are going to base our Stellar Lumens price prediction on the high side of the range and forecast an end of the year price target for XLM to be $10.01.
What Is Stellar?
Stellar is an open source, decentralized protocol for digital currency to fiat money transfers which allows cross-border transactions between any pair of currencies. The Stellar protocol is supported by a Delaware nonprofit corporation, the Stellar Development Foundation, though this organization does not enjoy 501(c)(3) tax-exempt status with the IRS.
Stellar is an open-source protocol for exchanging money or tokens using the Stellar Consensus Protocol. The platform’s source code is hosted on GitHub.
Servers run a software implementation of the protocol, and use the Internet to connect to and communicate with other Stellar servers. Each server stores a ledger of all the accounts in the network. 3 nodes are operated by the Stellar Development Foundation, in conjunction with 21 other organizations, providing for a total of 66 validator nodes. Transactions among accounts occur not through mining but rather through a consensus process among accounts in quorum slice. The current network fee is 100 stroops, equivalent to 0.00001 XLM or 1/10,000th of a cent.
History of Stellar
In 2014, Jed McCaleb, founder of Mt. Gox and co-founder of Ripple, launched the network system Stellar with former lawyer Joyce Kim. Before the official launch, McCaleb formed a website called “Secret Bitcoin Project” seeking alpha testers. The nonprofit Stellar Development Foundation was created in collaboration with Stripe CEO Patrick Collison and the project officially launched that July. Stellar received $3 million in seed funding from Stripe. Stellar was released as a decentralized payment network and protocol with a native currency, stellar. At its launch, the network had 100 billion stellars. 25 percent of those would be given to other non-profits working toward financial inclusion. Stripe received 2 percent or 2 billion of the initial stellars in return for its seed investment. The cryptocurrency, originally known as stellar, was later called Lumens or XLM. In August 2014, Mercado Bitcoin, the first Brazilian bitcoin exchange, announced it would be using the Stellar network. By January 2015, Stellar had approximately 3 million registered user accounts on its platform and its market cap was almost $15 million.
The Stellar Development Foundation released an upgraded protocol with a new consensus algorithm in April 2015 which went live in November 2015. The new algorithm used SCP, a cryptocurrency protocol created by Stanford professor David Mazières.
Lightyear.io, a for-profit entity of Stellar, launched in May 2017 as the commercial arm of the company. In September 2017, Stellar announced a benefits program, part of its Stellar Partnership Grant Program, which would award partners up to $2 million worth of Lumens for project development. In September 2018, Lightyear Corporation acquired Chain, Inc and the combined company was named Interstellar.
Real-world Applications of Stellar
In 2015, it was announced that Stellar was releasing an integration into Vumi, the open-sourced messaging platform of the Praekelt Foundation. Vumi uses cellphone talk time as currency using the Stellar protocol. Stellar partnered with cloud-based banking software company Oradian in April 2015 to integrate Stellar into Oradian’s banking platform to add microfinance institutions (MFIs) in Nigeria.
Deloitte announced its integration with Stellar in 2016 to build a cross-border payments application, Deloitte Digital Bank. In December 2016, it was announced that Stellar’s payment network had expanded to include Coins.ph, a mobile payments startup in the Philippines, ICICI Bank in India, African mobile payments firm Flutterwave, and French remittances company Tempo Money Transfer.
In October 2017, Stellar partnered with IBM and KlickEx to facilitate cross-border transactions in the South Pacific region. The cross-border payment system developed by IBM includes partnerships with banks in the area.
In December 2017, TechCrunch announced Stellar’s partnership with SureRemit, a Nigerian-based non-cash remittances platform.
On January 6, 2021, Ministry of Digital Transformation of Ukraine announced cooperation and partnership with Stellar in development of Ukraine digital infrastructure after which Stellar value increased by 40%.
Voyager Digital Ltd., a publicly-traded, licensed crypto-asset broker that provides investors with a turnkey solution to trade crypto assets, today announced the listing of the Terra (LUNA) Token on the Voyager platform, expanding Voyager’s industry-leading offering to 57 digital assets.
“By adding the LUNA Token to the Voyager platform, our U.S. customers will now have one of the first direct fiat-to-crypto on-ramps available on mobile devices,” said Steve Ehrlich, Co-founder and CEO of Voyager. “Our commission-free agency broker platform is quickly becoming the most trusted and transparent vehicle for investors to buy, trade and hold digital assets. We will continue to enhance our customer-centric platform with additional offerings including debit and credit cards, margin and the listing of other digital assets.”
Terra LUNA is a next-generation smart contract platform and programmable money for the internet. Terra’s platform supports stablecoins that offer instant settlements, low fees and seamless cross-border exchange, and are loved by millions of users and merchants.
“Both Terra and Voyager are making crypto and blockchain more accessible for mainstream adoption,” added Terra Co-Founder and CEO, Do Kwon. “Terra’s focus on merchant and payment adoption will be pushing the future forward on blockchain-powered digital payments. We’re excited to be partnered with Voyager, availing the power of LUNA to the masses.”
About Terra Terra‘s stablecoin ecosystem aims to make money easier to spend and more attractive to hold for users. Terra is the first (and today the largest by market cap) algorithmic stablecoin protocol in existence, supported by the Terra blockchain’s native asset, LUNA. Terra creates stablecoins pegged to the world’s major fiat currencies (USD, EUR, CNY, JPY, GBP, KRW, and the IMF SDR) that deploy decentralized monetary supply controls to retain value, generate stable interest, and keep transaction costs low. Terra now has the third highest number of transactions of all blockchains (after BTC and Ethereum) and is generating 13M USD in fees annually. TerraKRW today powers Chai, one of the largest e-commerce wallets in Korea, which hosts over 2 million users and generates $1.2 billion in annualized transaction volume. Investors in Terraform Labs (TFL), the group behind Terra, include Arrington XRP Capital, PolyChain Capital, Binance Labs, Huobi Capital, FBG Capital, and TransLink Capital.
About Voyager Digital Ltd. Voyager Digital Ltd. is a crypto-asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. Voyager offers customers best execution and safe custody on a wide choice of popular crypto-assets. Voyager was founded by established Wall Street and Silicon Valley entrepreneurs who teamed to bring a better, more transparent, and cost-efficient alternative for trading crypto-assets to the marketplace.
Earlier today we reported on the “unprecedented demand” for Bitcoin and cryptocurrencies. As we reported, this very strong demand is the driving force behind pushing the price of cryptocurrencies to all time highs and beyond.
Bitcoin has already more than doubled its previous all time high price of just under $20,000 back in 2017. On the other hand, Ethereum has only recently approached its all time high price from early 2018.
Raoul Pal is well known in financial circles. He is CEO & Co-Founder, Real Vision Group & Global Macro Investor. Raoul Pal leads Real Vision to provide unparalleled access to the very best insights and analysis from the brightest financial minds. He prides himself on being a Business Cycle Economist, Investment Strategist, and Economic Historian.
But it suggests that Ethereum could go to $20,000 on this cycle. Over time, I believe, and if you look at it, the adoption actually of market cap versus number of wallet addresses of Ethereum is ahead of, significantly ahead of where Bitcoin was.
And you see the distribution of returns – Again, I put some of that on twitter. I’ve written this whole piece. I will do a piece of Real Vision crypto in the next couple of weeks. It shows potentially that Ethereum is getting adopted faster and will potentially have a larger market cap than Bitcoin over time.
Again, I’m not putting a “flippening” happening immediately, blah, blah, bl;ah, I’m talking about platform versus asset. And the platform is often more valuable than an asset.
When Raoul states that Ethereum “could go to $20,000 on this cycle”, he is talking about this year, as in 2021. “This cycle” refers to the next 4 year cycle top, due around Christmas of 2021, or a few weeks later.
Longer term, meaning possibly a decade or so, Rauol believes that the price of Ethereum could be higher than the price of Bitcoin. You can see his full Ethereum prediction in this video:
Tyler Winklevoss 2021 Ethereum Prediction
Tyler Winklevoss recently gave an interview in which he predicted that Bitcoin would eventually be worth at least $500,000. In the same interview he also made some forecasts for Ethereum. he stated:
“So, you know, Ether’s got to upgrade. It’s moving to ETH 2.0. There’s some scalability things it’s got to work through. But, like, I’m an optimist and the smartest folks in the room are working on it. So if Ether’a the global computer in the future, what’s that worth? It’s gotta be a ton, and it’s gotta be worth as much as digital gold I would think, maybe more.”
Previously in the interview he stated that digital gold would be equivalent to a $9 trillion market cap. At the time of the interview a couple of weeks ago, the market cap of Ethereum was $84.56 billion. If the total market cap of Ethereum grows to $9 trillion, that would mean that each Ethereum token would be worth about $78,000 a piece, assuming that the growth of the number of new Ethereum tokens created each day continues at the same pace.
Tyler’s full interview can be viewed in this video:
Blocktown Capital’s James Todaro ETH Prediction For 2021
When looking at the fundamentals, we can clearly see that blockchain is a disruptive technology that will invade all of finance and the economy just as software has done in the past 50 years. Fundamentally speaking, crypto is the future.
That’s the basis for our forecast of the continued growth of the industry.
Fundamentals vs. Technicals
When it comes to price forecasting, we always want our technical price analysis to dovetail with our fundamental analysis. Our technical analysis looks at past price behavior, and our fundamental analysis sheds light on whether or not we feel it likely that previous price trends will continue or not.
In the case of Ethereum, like the 3 analysts above, we do feel confident that the positive price trends will continue.
The 4 Year Cycle In Crypto Prices
There is clearly a 4 year cycle in the cryptocurrency market. The next 4 year cycle peak is due around December of 2021.
Bitcoin has gone through 2 complete cycles, but Ethereum has not. With less of a track record, it makes it more difficult to predict where the price of Ethereum will be at the end of 2021.
Looking back at the previous year which was a 4 year cycle top, 2017, Bitcoin started the year on January 1, at $998.33. It ended the year on December 31, 2018 at $14,156.40, after climbing over $19,400 in mid December of that year. Depending on whether you’re looking at the highest price reached in mid December or whether you’re looking at the end of the year price, Bitcoin went up by a factor of between 14x and 19x during the last 4 year cycle top.
While this performance is still exceptional, it is quite a bit less than the gains from the previous 4 year cycle top that happened 4 years prior, in 2013.
Bitcoin started that year on January 1, at $13.30. It ended the year on December 31, at $805.90, after climbing over $1,237 in early December of that year. Again, depending on whether you’re looking at the highest price reached in early December or whether you’re looking at the end of the year price, Bitcoin went up by a factor of between 60x and 93x during the last 4 year cycle top.
The point of looking at Bitcoin’s first two cycles is to see that the first cycle saw larger percentage gain than the second.
Ethereum’s One Cycle Iteration
Ethereum wasn’t created/released until July 30, 2015, so there is no price data from 2013 – it didn’t exist back then.
So Ethereum’s price performance in 2017 was only it’s first 4 year cycle top.
We therefore anticipate that – just like had occurred with Bitcoin – the gains of the second 4 year cycle peak would be less than those of the first 4 year cycle top.
So, how did Ethereum fare in 2017, and what can we extrapolate for 2021?
Ethereum’s Past Price Performance
Ethereum started 2017 on January 1, at $8.20. It ended the year on December 31, 2017 at $736.77, after climbing to $800 in mid December of that year. The Altcoins had a cycle peak that was a couple weeks after Bitcoin reached its ultimate peak. After closing out 2017 at $736.77, Ethereum reached its 4 year cycle peak 2 weeks later on January 13 at $1,423.20. Depending on whether you’re looking at the highest price reached in mid January or whether you’re looking at the end of the year price, Ethereum went up by a factor of between 89x and 173x during 2017 for the last 4 year cycle top.
To recap, Bitcoin went up by 60x and 93x during its first iteration of the 4 year cycle peak, and 14x and 19x during its second iteration.
Ethereum has only seen one 4 year cycle peak during its existence, going up between 89x and 173x.
Price History As A Guide
If Ethereum follows Bitcoin’s lead and the rate of increase slows by the same amount that Bitcoin’s did from the first iteration to the second, that would mean that this year Ethereum will “only” go up between 18x and 34x.
With Ethereum starting the year at $729.12, that equates to a predicted price high between $13,124 and $24,790.
That’s our Ethereum prediction.
As the saying goes, “past performance does not guarantee future results.”
Like all future predictions, at this point in time we don’t know if the forecast is accurate or not, but as of press time, we have a high degree of confidence in our forecast price range being reached.
Retail demand is also currently at “unprecedented levels.”
Israeli trading and investing platform Etoro warned customers in Europe on Friday of possible limitations on crypto purchasing over the weekend. In an email, the exchange said: “The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support buy orders over the weekend. In light of this, it may be necessary for us to place limitations on crypto buy orders.”
eToro’s statement acknowledging unprecedented demand is just one of many that point to the fact that there isn’t enough Bitcoin available at today’s prices to meet demand.
In last month’s investor letter we discussed that after 30 months of operation, Square’s Cash App is estimated to be buying around 40% of all newly-issued bitcoin.
PayPal just launched their new service that enables customers to buy, sell, and hold cryptocurrency directly from their PayPal accounts. It’s already having a huge impact.
The bitcoin community is proud to have grown to 100 million users over twelve years. PayPal has 300 million active users. As we’ve argued — and will argue more fully in our December investor letter — this rally is much more sustainable than 2017. One of the main differences is the ease of investing in bitcoin now — via PayPal, Cash App, Robinhood, etc.
Previously the friction to buy bitcoin was pretty onerous: take a selfie with your passport, wait days to a week to get activated, daily limits.
PayPal’s crypto infrastructure provider is Paxos. Prior to PayPal’s integration of crypto, itBit, the Paxos-run exchange, was doing a fairly constant amount of trading volume — the white line in the chart below.
When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of bitcoins.
PayPal and Cash App are already buying more than 100% of all newly-issued bitcoins.
Only 900 New Bitcoins Created Each Day
Bitcoin supply is growing daily. Literally, it’s growing by 6.25 newly created Bitcoins with each new block mined. By design, one Bitcoin block is mined every 10 minutes, resulting in an average of 144 new blocks every day. 144 x 6.25 equals 900 new Bitcoins created each day.
Genuine Bitcoin Investor Demand
As we reported above, just Paypal and Cash App are responsible for buying more than 900 Bitcoin per day.
Let’s look at another rather obscure place to buy Bitcoin: LocalBitcoins.com. This is a site outside of the massive mainstream crypto exchanges. It is sort of a peer-to-peer classified ad site that matches buyers with sellers on an individual level.
Contrast that to the average daily trading of Bitcoin at localbitcoins.com which is a mere $6 million. The difference in size is staggering. The point being, trading volume at localbitcoins.com is a tiny, extremely tiny, amount of Bitcoin being bought each day.
Now, be aware that most of the trading volume on Binance and other big exchanges is just that: trading, not investing. A trader can buy and sell multiple times per day with each of those trades adding into the cumulative total trading volume.
So let’s look at the numbers. $6 million worth of Bitcoin are being bought right now every day on localbitcoins.com.
How many Bitcoin is that?
$6,000,000/$37,000 each equals 162 Bitcoin.
Remember, there’s only 900 being created. And this tiniest little peer-to-peer exchange is responsible for its users buying up almost 1/5 of all newly created Bitcoin each and every day. This is purely Bitcoin volume, and does not include other cryptos such as XRP and Litecoin.
Paypal and Cash App are already buying more Bitcoin than are being created each day. This tiny little site is facilitating the buying of nearly 20% of all new Bitcoin being create. What about the customers of Binance? What about demand from the customers of Coinbase, Gemini, Kraken, Bittrex, Bitstamp, Huobi, Bitfinex, and hundreds of other exchanges are are many times lager than localbitcoins? Where will all the Bitcoin come from for those buyers to be able to purchase?
Only Existing Holders Can Supply Bitcoin To Match Soaring Demand
One thing is certain, there is no way to increase the supply of new Bitcoin being created each day and available on the market. With demand absolutely overwhelming new supply, that only leaves existing holders willing to sell in order to satiate buyer demand.
Which means only one thing: prices will continue to be bid higher.
Universal Basic Income (UBI) Planned In 30 U.S. Cities
UBI is increasingly being recommended as a possible strategy to help mitigate the economic consequences of an extended coronavirus pandemic.
Almost all the UBI programs currently being piloted propose direct, unconditional cash payments to citizens, a lot like how many welfare payments are actually distributed today.
Based on data from Welfare and Health Studies at the Cato Institute only 30% of funds allocated to government welfare programs end up in the hands of the people who benefit from it. For private charities, an average of 82% of funds reach those that want it, while fund-raising and administrative expenses account for the remaining 18%. If numbers that are very much the same are actually assumed for UBI programs, 70% of funds will go towards a UBI program’s administrative expenses rather compared to its intended recipients.
The use of cryptocurrency and blockchain technology is able to transform how UBI is actually implemented, making it cost effective, most importantly, and, secure, transparent. The primary benefit to using blockchain technology will be the elimination of bureaucracy, resulting in 100% of funds reaching UBI recipients.
Karma Finance, founded by Antoine Sorel Neron, the designer of the first Initial Coin Offering (ICO) in cryptocurrency, is actually developing a new Decentralized Finance (DeFi) platform that is going to allow users to choose either to get a weekly UBI payment or perhaps to participate in the community reward pool. Owners participating in the reward pool is going to be strongly incentivized to provide the funding required for the UBI program itself.
“Decentralized finance and UBI are actually a natural fit, particularly as we are working to build economic resilience in cities across the country,” said Neron, who grew up on Chicago’s South Side. “Decentralized finance is actually meant to produce a far more inclusive and open financial system for everyone. We might not have the ability to make it happen for the world’s billion plus poor just yet, but at least we are able to build a practical solution to help regular folks who’ve been affected by COVID, even as government budgets start to be more strained. This’s exactly where the public is able to step in to help.”
Karma Finance is going to be the first DeFi application built for UBI.
About Karma Finance
Karma Finance launched on August thirty one, 2020, with the goal of providing a privately funded Universal Basic Income solution via blockchain and smart contracts. A community based project aimed at empowering users impacted by COVID and other economically devastating events, it uses a unique decentralized finance (DeFi) protocol which allows Karma’ angels’ to stakeEthereum cryptocurrency for the benefit of other users that receive direct UBI payments from the product.
Voyager Digital Ltd. (OTCQB: VYGVF), a publicly-traded, licensed crypto-asset broker that provides investors with a turnkey solution to trade crypto assets, today announced the listing of the Elrond Gold Token (EGLD) on the Voyager platform, expanding Voyager’s industry-leading offering of 55+ cryptocurrencies.
“The listing of our 56th token now offers U.S. customers an easy way to invest in the Elrond Network. Investors will now have the ability to download the Voyager App, fund their account, and begin trading eGold within minutes,” said Steve Ehrlich, Co-founder and CEO of Voyager. “As Voyager’s growth accelerates, we will continue to expand our platform of the most exciting digital assets to invest in, with over 20 interest-bearing assets on the Voyager platform.”
“The successful transition from traditional to decentralized finance will help our regulatory framework evolve in many positive ways. A publicly-traded company like Voyager, built to simplify onboarding to the crypto space, is a powerful catalyst toward unlocking blockchain’s multi-trillion-dollar potential,” added Elrond CEO and Co-founder Beniamin Mincu. “We look forward to working with the Voyager team towards compliant adoption at an internet-scale.”
About Voyager Digital Ltd. Voyager Digital Ltd. is a crypto-asset broker that provides retail and institutional investors with a turnkey solution to trade crypto assets. Voyager offers customers best execution and safe custody on a wide choice of popular crypto-assets. Voyager was founded by established Wall Street and Silicon Valley entrepreneurs who teamed to bring a better, more transparent, and cost-efficient alternative for trading crypto-assets to the marketplace.
About Elrond Elrond is the internet-scale blockchain, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 15,000 transactions per second (TPS), with 6-second latency and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
Fireblocks announced today it has integrated with Blockdaemon and Staked to add new staking services for over 165 enterprise and institutional customers. The new Fireblocks PoS capabilities will debut with initial support for Polkadot (DOT), Tezos (XTZ) and Eth 2.0.
“Fireblocks already simplifies securing and trading cryptocurrencies, like Bitcoin and Polkadot. With the roll-out of DOT staking, Fireblocks is quickly becoming an all-in-one solution for crypto power users,” said Jack Platts, Co-Founder of Hypersphere Ventures.
Traditionally, setting up staking was complicated and required 2-3 full time employees to integrate and manage nodes, or turning to a cold storage custodian, which fragments infrastructure, distributes assets across different providers, and limits operational flexibility.
Now, in addition to leveraging Fireblocks’ secure MPC-based wallet technology and Network for crypto custody, settlement, and DeFi, the world’s largest institutional digital asset investors and managers can add staking to earn more revenue from DOT, Tezos or Ethereum 2.0 assets.
“To set up staking, you need the highest degree of security in storing the asset and delegating it to the staking nodes,” said Michael Shaulov, CEO of Fireblocks. “There has been an increase in demand from our customers requesting simple and secure access to these strategies by utilizing their Fireblocks MPC wallet. We are extremely excited to roll out these new staking services on the largest PoS networks, giving our customers an opportunity to enhance their yield by 5% to 15%.”
Starting today, Fireblocks’ customers will be able to stake DOT, XTZ and ETH 2.0 tokens all from the Fireblocks platform. The assets will be protected from cyber attacks, internal collusion and human error while accruing rewards. Users will maintain custody of the funds in their Fireblocks MPC-based wallets with an interface to monitor staking performance on Staked and Blockdaemon.
“Fireblocks is a leading pioneer in providing secure digital infrastructure for institutional trading, lending, and borrowing and we are thrilled to partner with them by supporting customers with our validator staking and node management,” says Konstantin Richter, CEO and Founder of Blockdaemon. “Having close collaboration with a leader in the space is essential in driving earning potential forward at an accelerated rate.”
With significant demand from Fireblocks’ customer base, the company will continue to prioritize supporting additional staking protocols in 2021.
“We are thrilled to extend our staking services to a growing number of institutional customers through our partnership with Fireblocks,” said Tim Ogilvie, CEO of Staked, which provides non-custodial infrastructure services for the major PoS blockchains and is the leading independent validator for Ethereum 2.0. “Fireblocks has a well-established reputation for delivering infrastructure and we are delighted to support this new offering for its many enterprise and institutional customers.”
Fireblocks is an enterprise-grade platform delivering a secure infrastructure for moving, storing, and issuing digital assets. Fireblocks enables exchanges, lending desks, custodians, banks, trading desks, and hedge funds to securely scale digital asset operations through the Fireblocks Network and MPC-based Wallet Infrastructure. Fireblocks has secured the transfer of over $200 billion in digital assets and has a unique insurance policy that covers assets in storage & transit.
Gemini, a crypto exchange and custodian, today announced that it will launch the Gemini Credit Card, a credit card with cryptocurrency rewards. This effort has been accelerated by the acquisition of Blockrize, a fintech startup that has been building a credit card with cryptocurrency rewards. In preparation for launch later this year, Gemini has opened the Gemini Credit Card waitlist — providing Gemini customers, and those already on the Blockrize waitlist, with early access.
By combining Gemini’s simple, reliable, and safe platform with Blockrize’s rewards program, card holders will be able to seamlessly earn up to 3 percent back in bitcoin, or other cryptos, on every purchase they make with the Gemini Credit Card.
“The Gemini Credit Card will make it easier for any consumer to invest in bitcoin and other cryptos without changing their existing behavior, ” said Tyler Winklevoss, CEO of Gemini. “Rather than deciding how and when to buy crypto, customers can do so when making their everyday purchases. We’re excited to welcome the Blockrize team to Gemini and work together to continue to mainstream crypto.”
Those who join the waitlist, and the more than 10,000 people already on the Blockrize waitlist, will get early access. The Gemini Credit Card will work like a traditional credit card. It will be available to U.S. residents in every state and will be widely accepted wherever major cards are accepted. Rewards will be automatically deposited into a cardholder’s Gemini account.
This is Gemini’s second acquisition, following its acquisition of Nifty Gateway in November of 2019. Gemini continues to look for companies that align with its values and mission to empower the individual through crypto.
Decentralized Finance is a concept that has emerged in the last two years. The idea behind decentralized finance is to make use of distributed ledger technology (DLT), and its off-chain components such as Internet-based ledgers to function as an online payment system. With such a system, the collection of participants is enabled to transact without being restricted by the speed of the network connection or the storage space of electronic data. In fact, such a system can be configured to operate efficiently even with minimal technological setups. Also, it enables users to control their own funds by allowing them to control their privacy, security, as well as the transfer of funds.
An emerging wave of DeFi protocols took previously glitchy and hard-to-navigate decentralized apps and exchanges, such as EtherDelta, and transformed them into high-volume, high-yield unicorns that provided crypto investors with consistently high returns on a regular basis. In terms of total value locked (the value of the assets committed to the protocol), transaction volume and market capitalization, many DeFi platforms and their associated tokens now rival the top centralized exchanges.
Figuring out the point at which decentralized finance began almost always ends up in a rhetorical debate. Some argue that Bitcoin’s (BTC) invention a decade ago marked the start of it, as the major cryptocurrency was the first peer-to-peer digital money and represents the conceptual core underpinning DeFi. Others say — and would be technically correct in doing so — that DeFi started back in December 2017, when Ethereum-based protocol MakerDAO was launched, followed by Compound Finance and Uniswap, released in September and November 2018, respectively. On the other hand, it wouldn’t be a stretch to say that DeFi’s true ascent started in 2020.
In decentralized finance, tokens serve as a form of currency. There are several ways in which tokens may be implemented in such systems. First, users may issue tokens which represent ownership of a certain amount of the digital currency i.e. tokens may be issued as e-assets.
Another way of implementing decentralized finance is through Proof of Stake (POS) protocol. Through this protocol, one can build a decentralized financial system by risking one’s own money in the exchange market in return for rewards in the form of dividends. One of the advantages of using this form of lending is that it gives access to a wider range of lenders; however, the downside of this is that there is a high risk associated with such a system since it makes it more difficult for smaller businesses to obtain traditional funding sources. Also, it requires that the borrower has a long history of paying dividends to ensure sustainability of the financial system. In order to build a sustainable financial system that will work for a long time, it is important to find a system that uses Proof of Stake as a base.
Because the distribution chain is unidirectional and allows all parties to participate in the execution of the programs contained within the platform, it is not possible for one individual, such as a broker, to tamper or interfere with this process. Therefore, DEFI and Cryptocurrency are two sides of the same coin: a robust, highly regulated, and completely trustless system that offers all participants tremendous protection. DeFi is a very important aspect of any smart contract based ICO, and all companies are rushing to capture their slice of this rapidly growing industry.