Autor Cointelegraph By Arijit Sarkar

Bitcoin records all-time high network difficulty amid price fluctuations

The Bitcoin (BTC) network has recorded a new all-time high mining difficulty of 26.643 trillion with an average hash rate of 190.71 exahash per second (EH/s) — signaling strong community support despite an ongoing bear market.The Bitcoin network difficulty is determined by the overall computational power, which co-relates to the difficulty in confirming transactions and mining BTC. As evidenced by the blockchain.com data, the network difficulty saw a downfall between May and July 2021 due to various reasons including a blanket ban on crypto mining from China.BTC network difficulty. Source: Blockchain.com.However, as the displaced miners resumed operations from other countries, the network difficulty saw a drastic recovery since August 2021. As a result, on Jan. 22, the BTC network recorded an ATH of 26.643 trillion. Data from BTC.com estimates that the network will continue to grow stronger by attaining another ATH in the next 12 days — with a network difficulty of 26.70 trillion.Estimated BTC network difficulty in the next 12 days. Source: BTC.com.In the last four days, F2Pool has been the highest contributor to the hash rate by mining 88 BTC blocks, followed by Poolin at 76 blocks. As of yesterday, the average fee per transaction is roughly $1.58, a value that historically peaked at $62.78 back in Apr. 2021.Related: Bitcoin could outperform stocks in 2022 amid Fed tightening — Bloomberg analystDespite the federal pressure for tighter monetary policies around cryptocurrencies, Bloomberg commodity strategist Mike McGlone suggests that BTC has a fighting chance to come out on top as investors recognize its value as a digital reserve asset. As Cointelegraph reported, McGlone believes Bitcoin is in a unique position to outperform in an environment where stimulus reduction is usually considered negative for risk assets:“Cryptos are tops among the risky and speculative. If risk assets decline, it helps the Fed’s inflation fight. Becoming a global reserve asset, Bitcoin may be a primary beneficiary in that scenario.”

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NFTs and DeFi overturn a banker's generational curse of poverty in 2 years

Brenda Gentry, a former USAA mortgage underwriter from Texas, believes that the cryptocurrency ecosystem offers a fighting chance to overcome the generational curse of poverty. Gentry, a.k.a. MsCryptoMom, left her decade-long job as a banker to pursue a full-time crypto career as her initial investments from early 2020 confirmed the “unprecedented opportunities offered by crypto.” She currently runs Gentry Media Productions, a firm that advises decentralized finance (DeFi) and nonfungible token (NFT) projects — generating up to 20 ether (ETH) each month, nearly $50,000 at the time of writing. Speaking to Cointelegraph, Gentry recollected the moment she first bought crypto:“It was early 2020 during the lockdown. I bought Bitcoin, Ethereum and Link on Coinbase. When I started, I almost gave up multiple times. I just want to help others have a more streamlined way to get into crypto.”With this early investment, Gentry also dedicated her time to learning about DeFi, which eventually led her to invest in altcoins. Acknowledging the big learning curve into crypto, the entrepreneur provides educational content through her website, adding:“I’m also hosting seminars to educate the general public about navigating in this space and things to look out for when searching for good NFT projects or DeFi tokens, and also how to quickly detect scams or rug pulls.”Gentry’s younger daughter and business partner Imani told Cointelegraph about the rising interest in crypto within her friend circle. She said:“A trend that was interesting for me to watch was people following trends — every one making their own projects & 10k collections because they saw the outcome.”What may come as a surprise to many, Gentry did not have a Plan B, but only the moral support of her family, before committing to restart her career as the new owner of Bundlesbets, a DeFi platform dedicated to sports betting. “My husband and daughters encouraged me to pursue my dreams full time and I’m happy I did,” she added.“I don’t want anyone to be left behind.” Giving back to the community, Gentry intends to help accelerate breaking down the generational curses of poverty around the world. This year, she plans to visit her home country Kenya and equip her nonprofit organization Educate a Child “with knowledge about this new asset class and the opportunities that blockchain technology affords.”For people wanting to follow suit, Gentry advises researching this space first before jumping in. According to her, one must understand the bad side of crypto to avoid getting scammed, a concern most relevant for new investors:“When it comes to investing in crypto, the opportunity to gain financial freedom is well worth the cost to watch a few educational crypto YouTube videos or read a book on this topic.”The 19-year-old Imani believes that crypto will be the future reality. Addressing the younger generation, she concluded:“Take time to learn and get involved in the space, and even teach your parents, siblings and others, as blockchain technology and cryptocurrencies are disruptive technologies that will require a major paradigm shift in the way we currently think about centralized finance and fiat money.”Related: An Indonesian 22-year-old makes $1M by selling NFT selfies on OpenSeaSultan Gustaf Al Ghozali, an Indonesian college student, reportedly made a million dollars by selling NFT versions of his selfies on the OpenSea NFT marketplace.Uploading my photo into nft lolhttps://t.co/E3Q4sBmN26#NFT #opensea pic.twitter.com/rD51rdcpzp— Ghozali_Ghozalu (@Ghozali_Ghozalu) January 10, 2022As Cointelegraph reported, some of Ghozali’s selfie NFTs sold for 0.9 ETH, worth roughly $3,000. Ghozali’s collection subsequently reached a total trade volume of 317 ETH, equivalent to more than $1 million.

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El Salvador buys its cheapest 410 Bitcoin as prices reach $36k

The Central American country of El Salvador has added 410 Bitcoin (BTC) to its central reserve as BTC prices trade below $37,000, a price last seen on July 26th, 2021. The fresh addition to El Salvador’s BTC reserve was announced by President Nayib Bukele, who confirmed that the purchase of 410 BTC was made against $15 million, placing the price at approximately $36,585 per BTC.Nope, I was wrong, didn’t miss it.El Salvador just bought 410 #bitcoin for only 15 million dollars Some guys are selling really cheap ‍♂️ https://t.co/vEUEzp5UdU— Nayib Bukele (@nayibbukele) January 21, 2022El Salvador adopted BTC as a legal tender on Sept. 7, 2021, as a means to overcome catastrophic inflation amid the weakening spending power of the nation. Fast forward to today, the country has strategically accumulated 1,801 BTC over the past four months, especially when the market sees a momentary price fall.The latest purchase is currently the cheapest acquisition for El Salvador ever since the country adopted BTC as a legal tender.With BTC trading just above the $36,000 mark and the resultant sell-off, Bukele believes that “some guys are selling really cheap,” supporting his long-term vision of mainstream Bitcoin adoption.Bitcoin price movement. Source: TradingView.As evidenced above by data from Cointelegraph Markets Pro and TradingView, BTC experienced a steady rise in prices from mid-July, which resulted in an all-time high of almost $69k in the first week of November. However, the next three months saw a steep decline in market prices as investors redirected BTC profits into buying other tokens.Related: Nations to adopt Bitcoin, crypto users to reach 1B by 2023: ReportA new report from Crypto.com predicts that the global crypto market will host one billion users by the end of 2022 as more developing nations mimic El Salvador’s move to mainstream BTC adoption.Monthly growth of crypto owners. Source: Crypto.com.As Cointelegraph reported, Crypto.com estimates that “If we extrapolate a similar rate of increase in 2022, we are on track to reach 1 billion crypto users by the end of 2022.” The report concludes that a combination of developing nations following El Salvador and a “friendlier stance” towards the crypto industry means that “nations can no longer afford to ignore the growing push towards crypto by the public.”

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NCFTA onboards crypto exchange Binance to fight against cybercrime

The National Cyber-Forensics and Training Alliance (NCFTA), an American non-profit, onboarded its first crypto firm Binance to aid their ongoing battle against cybercrimes. Founded in 2002, the NCFTA partners with law enforcement and various business and academic entities to source threat intelligence to identify and mitigate cybercrime threats. By partnering with Binance, the world’s biggest crypto exchange in terms of trading volume, the NCFTA aims to tackle international cybersecurity investigations. According to Binance’s VP of Global Intelligence and Investigations, Tigran Gambaryan, the exchange aims to be the leading contributor in the fight against cybercrime, ransomware, and terrorism financing:“Joining the NCFTA is an important step in our joint fight against cybercrime, securing the cryptocurrency ecosystem for the entire community.”Through this partnership, Binance will gain access to NCFTA’s dedicated team of analysts along with trends related to emerging and real-time threats. The crypto exchange has also set up an in-house team to tackle blockchain and cryptocurrency fraud, namely the Binance Investigations Group. According to the press release:“To date, Binance has cooperated with hundreds of criminal investigations, which have led to high-profile arrests, including a cybercriminal group laundering $500M in ransomware proceeds.”Gambaryan also believes that securing the crypto ecosystem against cyber threats requires strong cooperation between law enforcement, government agencies and players within the ecosystem.Related: Pakistan to investigate Binance for multi-million dollar crypto scamOn Jan. 9, Pakistan‘s Federal Investigation Agency (FIA) issued a formal notice to Binance to identify links around a multi-million crypto scam in the region.KARACHI: Federal Investigation Agency (FIA) has detected an online fraud of Rs100 billion using a cryptocurrency and issued notice to the local representative of Binance, @cz_binance @binance @BinanceHelpDesk @BinanceUS pic.twitter.com/3oukwzmDqh— Innocent Pashteen✌ (@FighterDawar) January 7, 2022As Cointelegraph reported, the Pakistani government received numerous complaints against an ongoing scam that involved misleading investors into sending funds from Binance wallets to unknown third-party wallets — sparking a criminal investigation. Speaking to Cointelegraph, a Binance spokesperson confirmed the exchange’s intent to cooperate with the local authorities:“User protection is a top priority for us at Binance. Our law enforcement team also works closely with agencies and governments around the world to help educate teams on tackling financial crimes.”

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CBDCs and stablecoins: EY advises banks to ‘prepare for what's coming’

Big Four accounting firm EY has recommended that banks should change their regulatory perimeter to address the oncoming launches of state-backed central bank digital currencies (CBDC) and private stablecoins. EY’s 2022 Global regulatory outlook highlighted the need for a policy change that can help financial services firms overcome business uncertainties amid mainstreaming of digital assets and cryptocurrency. While acknowledging the uncertainty regarding the digital assets market, the report stated:“If customers can keep their money with a central bank, they have no need for a retail bank, and firms will see their interest rate margins contract precipitously.”EY recommended banking firms collaborate with regional and national regulators to foresee possible crypto adoption and proactively assess its impact on their business. The report also identified digitalization — alternative data sources and digital assets — as a potential factor to impact the regulatory environment:“The macroprudential or international implications of a major currency having a retail coin could be very significant for retail banks and the dollarization of smaller economies. For that reason, most central banks are likely to pursue a wholesale version.”Highlighting the potential of CBDCs to complement or replace fiat currency, EY warns banks to think about the implications for their balance sheets amid the possible interaction between CBDCs and stablecoins. Conceding the difficulty in gaining regulatory clarity, EY concluded:“By understanding the broad direction of regulation, firms can take proactive steps to prepare for what’s coming.”Related: Central bank of Bahrain trials JPMorgan’s blockchain and tokenJust last week, the Central Bank of Bahrain (CBB) collaborated with American investment bank JPMorgan to pilot the country’s CBDC test. As Cointelegraph reported, the CBB completed a digital payments test using JPMorgan’s blockchain and cryptocurrency unit Onyx. Citing the development, CBB Governor Rasheed Al Maraj said that the trial has been crucial for the Bahrainian government to address and potentially eliminate existing inefficiencies in the traditional cross-border payments industry.

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