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What’s Next for Bitcoin and Crypto: 5 Trends to Watch out for in 2022

Cryptocurrencies had a tumultuous yet profitable year in 2021. The crypto market capitalisation has tripled since January 1, from about $800 billion to around $2.2 trillion today, with some assets seeing massive price and user growth. And the gains were spread across the ecosystem, with Bitcoin and Ethereum accounting for just over 60% of the market valuation, down from 80%.

Furthermore, the continuous success of DeFi (decentralized finance) apps and non-fungible tokens (NFTs) suggests that the coming year will be even more beneficial.

As we enter 2022, here are five big crypto topics to keep an eye on.

1. Increased regulation

Because of (or perhaps because of) its decentralized structure and unregulated nature, the crypto sector has prospered thus far. However, many in the sector will tell you that they are open to laws as long as they are enforced fairly. Governments have been attempting to regulate cryptocurrencies in a way that hinders cybercriminals while increasing the safety of retail investors. China has demonstrated one (albeit unpopular) method of doing so by making crypto operations almost illegal within its borders, with the exception of those sanctioned by the government.

Crypto investors and entrepreneurs are hoping for a more moderate approach in the United States, where the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and Treasury Department offices have all advocated for new rules. Regulations may result in clearer taxation guidelines for investors, as well as the opportunity to incorporate crypto investments into retirement funds. Furthermore, if well-known cryptocurrency trading platforms adapt to laws, they may help to increase adoption by offering an additional degree of security to investors.

2. The number of Bitcoin ATMs is increasing.

The intangibility of cryptocurrencies has long been a disadvantage; many people struggle to recognize Bitcoin as genuine money since they can’t see or touch it. People will be able to perceive digital assets as tangible financial tools now that Bitcoin ATMs are steadily becoming a reality in many regions of the world.

Since 2015, the number of Bitcoin ATMs has gradually increased, reaching new highs in 2021. According to Coin ATM Radar, there are more than 33,000 Bitcoin ATMs across the world today.

Bitcoin ATMs allow customers to buy bitcoins with their credit or debit cards. This makes cryptocurrencies extremely accessible to both cryptocurrency enthusiasts and newcomers. Individuals can simply carry out crypto transactions using Bitcoin ATMs, obviating the need for crypto brokers—though costs may cause people to hunt for better rates elsewhere.

3. Environmental improvements

The environmental impact of blockchain networks has been a focus for crypto doubters, and the issue has even plagued some crypto fans.

Bitcoin mining necessitates a significant amount of processing power, which consumes a significant amount of energy. Because coins that use proof of work for their mining process account for the majority of the cryptocurrency market cap, any significant change in energy costs in 2022 is improbable. Bitcoin mining not only has high energy expenses, but it also generates a lot of e-waste from discarded mining rigs.

Newer cryptocurrencies such as Cardano and Solana, on the other hand, have been praised for using a proof-of-stake approach that does not require a lot of energy. Furthermore, Ethereum which is the second-largest cryptocurrency by market capitalization is about to make the switch to proof-of-stake, which should encourage other cryptocurrencies to follow suit and make their operations much more environmentally friendly. Even if Bitcoin’s energy use does not improve, if the use of environmentally friendly crypto grows in 2022, it will be helpful to the Crypto space.

4. Continued Bitcoin price volatility

Bitcoin is by far the most popular cryptocurrency in the world, and its price is still the most widely regarded crypto market benchmark.

Bitcoin had a consistently turbulent performance in 2021, reaching an all-time high above $60,000 in April, then plummeting to less than $30,000 in July, then reaching a new all-time high of nearly $70,000 in November, before plummeting to its present level well below $50,000.

Given that the crypto market is not yet completely mature, such volatility—which Bitcoin bears point to when discounting the seriousness of the asset—is likely to continue far into 2022 and beyond.

Many smart traders enjoy Bitcoin because of its volatility, which allows for arbitrage opportunities. However many asset managers urge caution and encourage clients to only put 5% of their portfolio into crypto. Bitcoin investors should expect it to plummet as frequently as it surges. Bitcoin and other cryptocurrencies, according to crypto bulls, will remain volatile in the short term but will slowly increase in value over time, despite frequent sharp drops. As a result, investors must be patient and commit to a long-term vision, rather than fretting over temporary ups and downs.

5. Crypto ETF approvals

When BITO, the first Bitcoin futures ETF (exchange-traded fund), debuted on the New York Stock Exchange earlier this year, it drew about $1 billion in trades on its first day, putting it on track to set a new high. It was an immediate indication of investor demand in a crypto product that they could buy and trade on traditional exchanges, which had been building for some time.

However, BITO does not hold any Bitcoin; rather, it is a way for ordinary investors to gain exposure to Bitcoin futures rather than genuine Bitcoin. It’s not a “spot” exchange-traded fund. The SEC has been besieged with requests for ETFs based on current cryptocurrency prices, but none have ever been approved. However, based on the performance of BITO and the confidence that investors have in it, a Bitcoin spot ETF appears to be quite likely to pass in 2022 or very shortly after—along with prospective ETFs related to other cryptocurrencies, which may attract a flood of new retail investors.

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Business

EL Salvador President foresees two more countries making Bitcoin Legal tender this year.

El Salvador President Nayib Bukele tweeted his forecasts for Bitcoin in the future year on New Year’s Day 2022, making some rather big wagers.

Out of the six predictions he made, it appears that “two more countries will embrace it as legal tender.” On September 7, 2021, El Salvador became the first government to make BTC legal tender, igniting a revolution that drew the attention of many other world leaders. This is an intriguing statement, especially after El Salvador’s ambassador to the United States, Milena Mayorga, stated that if Bitcoin adoption is successful in El Salvador, other countries “would follow.”

Bitcoin “will become a major electoral issue in US elections this year,” He said

Over the last year, officials in the United States became increasingly interested in Bitcoin. Many politicians expressed support for the asset class, including 2020 Democratic presidential contender Andrew Yang and Republican senators Cynthia Lummis and Warren Davidson. Other politicians in the United States have expressed their concerns about the issue. Senator Elizabeth Warren, for example, believes it favors just the wealthy. As more lawmakers get educated on the subject, it will be fascinating to see how Bitcoin regulation develops in the United States.

The construction of “Bitcoin City” will begin, according to the Salvadorian President. The announcement occurred at the close of Bitcoin week in El Salvador, which included two BTC-focused conferences, LaBitConf and Adopting Bitcoin. According to the city’s announced intentions, it will have 0% income, capital gains, property, payroll, and municipal taxes, as well as 0% CO2 emissions.

Furthermore, he expects their Bitcoin bonds, which will be issued on Blockstream’s Liquid Network, will be “oversubscribed.”

President Bukele believes bitcoin will finally reach its long-awaited $100,000 per coin target. Many people predicted that price target for 2021, but it eventually fell short, reaching an all-time high of $69,010 per Clark Moody Dashboard.

Finally, he promised a “big surprise” during the Bitcoin 2022 conference in Miami, Florida this April. Last summer, Bukele said that he will be submitting a bill to Congress, with the help of Strike CEO Jack Mallers, to make bitcoin legal tender in El Salvador. One can only speculate as to what he has planned for this year’s convention, which he will be attending in person.

In a follow-up tweet, the President stated, “This tweet will age wonderfully.” Bukele’s predictions appear to be certain, but we’ll have to wait and see when and if they all come true this year.

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Coins

How to gift Bitcoin, NFTs, and other Crypto

How rich would you think you would have been if your friends gifted you bitcoin for every birthday instead of a lunch at Cafe Javas or The Patio? To bring this home, in 2009, one bitcoin sold at $0.0009 (Approx. 3 Ugx). Currently each bitcoin is valued at $48,663.95 (172,027,063.25 Ugx.)!

If you received $10 (35,350Ugx) in bitcoin on your birthday every year for the last five years, you’d have almost $750 (2,651,250) ,1500%increase in 2021 if you didn’t sell any before then. From a financial standpoint, this would have been a very wise decision on your family and friends’ part.

According to current data, bitcoin has been lucrative 96.2 percent of the time since its inception in January 2009, which means that if you gave bitcoin to a loved one at any point in the last 12 years, it is certainly worth more now than it was then.

Given the power of capital appreciation, it’s no surprise that most people are planning to gift or have gifted their loved ones with bitcoin this year and it is expected to increase in the years to come. If this is your plan, how do you actually give Bitcoin or any other Crypto?

While working with cryptocurrencies may appear intimidating at first, the procedure is actually much simpler than you may imagine. The first thing you’ll want to do is choose which cryptocurrency you’d like to send. If you’re giving a present to a beginner crypto user, stick with bitcoin or one of the top coins, as most platforms and services will accept them.

It’s worth using a market capitalization ranking platform like Coingecko or Coinmarketcap if you want to transfer less prevalent currencies from the back of the crypto catalog. Once you’ve decided which digital asset(s) to send, you’ll need to purchase them from an exchange, brokerage, or mobile app.

Giving coins through mobile apps, which offer a low barrier to entry and, in the instance of MTN Momo App , Binance, Chipper Cash, and bank apps may already be installed on the recipient’s phone, which make sense for people gifting to someone who is new to cryptocurrencies.

Best Exchanges to buy Bitcoin in Uganda

Cryptocurrency exchanges are trading platforms that allow you to buy a variety of cryptocurrencies with a variety of fiat currency options (such as US dollars, Uganda Shillings, British pounds, euros, and others) or other cryptocurrencies. Some exchanges cater to more experienced traders, while others make bitcoin purchase considerably easier for total beginners.

Binance: 

Binance, the world’s largest bitcoin exchange, now allows Ugandans to buy and sell bitcoin. Binance accepts mobile money deposits for bitcoin purchases. Furthermore, after selling cryptocurrency, you can withdraw payments by bank transfer or mobile money. Binance is the quickest option to acquire bitcoin in Uganda when compared to the other exchanges on this list. You may also buy other cryptocurrencies like Ethereum, Binance Coin, and USDT on Binance. In late July 2020, Binance announced the arrival of Ugandan Shillings to Binance.com. You can sign up on the  Binance platform here

Luno:

Luno is one of the world’s most well-known cryptocurrency exchanges. Similarly, Luno has carved out a position for itself in emerging markets, recently adding Uganda to its list of supported countries. The exchange has a strong reputation in Uganda as a good place to acquire bitcoin (BTC). In terms of deposit options, Luno allows you to fund your wallet for free through bank transfers.

Luno is a simple platform for purchasing bitcoin with Ugandan Shillings (UGX). Its user-friendly interface and cheap cost structure make it an excellent choice for new customers wishing to buy bitcoin.

Yellowcard:

Yellow Card has been assisting Ugandans who want to join the new financial train of Crypto since 2019, providing the most secure web and app-based wallets for trading Bitcoin, Ethereum, and Tether in Uganda.

You can load money into your account and trade bitcoin, ethereum, or Tether using Yellow Card’s different payment options, such as Mobile Money or Bank. The best part is that you may trade against the Ugandan Shilling as well. The platform boasts of its accessibility, instant services, security, and multiple payment options.

Binusu:

Binusu is a bitcoin exchange established in Uganda that allows Ugandan traders to acquire bitcoin using their local currency, the Ugandan shilling (UGX). This exchange has been active for quite some time, and it is one of Uganda’s most popular local exchanges. The exchange currently accepts deposits via Airtel Money or MTN Mobile Money.

It is possible to deliver digital assets straight to the recipient if they already have a crypto wallet. When performing this, you should keep in mind that:

  1. To pay any transaction fees, you’ll need some spare cryptocurrency. The costs you pay will be determined by whatever coin you intend to send, as well as which blockchain you utilize and how congested it is at the moment of sending. When you withdraw cryptocurrency from your exchange account, the site will provide you with many options open to you.
  2. As previously stated, some tokens can be used on various blockchains. Tether (USDT) can be sent as an ERC20, TRC20, or OMNI-based token, for example. It’s worth double-checking which tokens the recipient’s wallet supports beforehand, as sending the wrong token type to a specific wallet can result in a full loss of cash in some situations.

Gift Cards

Binance is a notable example of a platform that allows users to transfer and receive cryptocurrencies via digital gift cards in a simple and convenient manner. The instructions for making a gift card, according to the website, are as follows:

  1. Getting cryptocurrency from your “Spot Wallet” to your “Funding Wallet.”
  2. Enter the amount you want to send as well as the coin you want to send.
  3. Entering the email address of the receiver.
  4. Entering your two-factor authentication code (2FA) to confirm the transaction).

The recipient must redeem the gift card by entering the code supplied after it has been sent. To redeem these types of crypto gifts, the recipient will need to have a Binance account.

How to give NFTs?

With non-fungible tokens (NFTs) becoming more popular among crypto and non-crypto users, it’s probable you’ll want to give gift digital collectible kittens or smoking ape JPEGs this year.

The procedure is identical to sending bitcoin from an exchange to a wallet, only you’ll need to use an NFT marketplace instead of a crypto exchange.

If you want to buy a certain NFT, you’ll need to find out which NFT marketplace the unique digital object is accessible on, as some are only available on specific blockchains and platforms.

OpenSea is by far the most extensively utilized NFT marketplace accessible today if you simply want to browse a large number of various NFTs and pick the one you like. Because it’s based on the Ethereum blockchain, you’ll need to use a suitable crypto wallet service to buy, sell, and receive NFTs through the site.

It is time we begin revolutionizing gift giving, don’t you think so?

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Business

MetaDAO Makes Off With $3.2M in Rug Pull

In an alleged rug pull scam over the holiday weekend, a project called MetaDAO made off with almost 800 ETH, or $3.2 million. Investors in a startup called MetaDAO were the victims of a $3.2 million rug pull scam just before New Year’s Eve.

PeckShield, a blockchain security firm, published a notice early this morning claiming that MetaDAO had made off with 800 ETH, valued at over $3.2 million at press time, in an apparent rug pull fraud. The stolen monies were subsequently transferred to Tornado Cash, a privacy protocol that allows users to mask their Ethereum transactions, allowing for greater anonymity in theory.

A “rug pull” is a popular sort of crypto market fraud in which a project’s developers solicit large amounts of money from investors before quitting the business and keeping—some would argue “stealing”—the proceeds.

Due to a suspension, MetaDAO’s website is now inaccessible.

MetaDAO claims to be “the DAO of DAOs” in a Medium post from December, adding that the initiative would “create a new universe.” One piece goes on to detail the narrative behind the project’s development, citing WallStreetBets legend Keith Gill as the project’s motivation, as well as the GameStop short squeeze that occurred earlier this year.

Rug pulls account for less money lost to scammers in the crypto industry than hacks, but they nonetheless happen with alarming frequency. PeckShield only reported another probable rug pull event last night, in which MetaSwapMGAS took 1,100 BNB (worth over $600,000 at press time). The stolen monies in the MetaSwapMGAS fraud were moved to Tornado Cash, as was the case with today’s MetaDAO rug pull, disguising their subsequent destinations.

Last month, the Binance Smart Chain project SQUID token, which was purportedly based on the blockbuster Netflix comedy Squid Game, flopped after buyers realized the token was not linked with the show. The coin quickly collapsed by 99.99 percent, but not before the project’s creators made over $12 million.

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Business

The year of Doge? 2021, A look back at crypto currency’s wildest year yet

With the new year here, every crypto investor is curious how cryptocurrency will fare on the global financial stage, especially since 2021 was the best year for cryptocurrency ever. Crypto was the talk of the town among Ugandan urban youths, with everyone wondering how well they can invest or participate in the movement. Bitcoin nearing $70,000 (247,660,000 million Ugx), billion-dollar’memecoins, a blockbuster Wall Street debut, and a broad Chinese crackdown: Even by the turbulent sector’s norms, 2021 was the wildest year yet for cryptocurrencies.

The year began with a rush of cash from both large and small investors pouring into digital assets. Since then, bitcoin and its kind have seldom been out of the news, with crypto terminology well entrenched in the investment lexicon.

Here are some of the key cryptocurrencies themes that dominated 2021.

  1. Bitcoin

The original cryptocurrency retained its position as the largest and most well-known token, despite plenty of other new entrants vying for its crown. 

From January 1 to mid-April, Bitcoin climbed over 120 percent to a then-record high of about $65,000 (229 million Ugx). A flood of funds from institutional investors fueled it, as did increased adoption by large firms like Tesla Inc and Mastercard Inc, as well as a growing embrace by Wall Street banks.

As record-breaking stimulus packages fueled soaring prices, Bitcoin’s putative inflation-proof properties – it has a restricted supply – piqued investor interest. The prospect of quick gains during historically low mortgage rates, as well as greater access through rapidly building infrastructure, drew buyers in.

The $86 billion IPO of major US exchange Coinbase in April, the largest ever for a cryptocurrency startup, was emblematic of bitcoin’s mainstream acceptance.

Despite this, the token remained volatile. It fell 35% in May before skyrocketing to a new all-time high of $69,000 in November, as inflation in Europe and the United States spiraled out of control.

  1. The rise of memecoins

Even as bitcoin remained the go-to cryptocurrency for newcomers, a slew of new – some might say joke – tokens flooded the market.

“Memecoins” — a loose collection of coins with online culture roots ranging from dogecoin and shiba inu to squid game – frequently have little practical use.

Dogecoin, a bitcoin knockoff founded in 2013, rose over 12,000 percent to an all-time high in May before plummeting about 80% by mid-December. Shiba inu, which is named after the same Japanese dog breed as dogecoin, temporarily entered the top ten digital currencies.

The memecoin craze was tied to the “Wall Street Bets” movement, in which retail traders banded together online to buy stocks like GameStop Corp, putting pressure on hedge funds’ short holdings.

Even as regulators warned about volatility, many traders – sometimes left at home with ample cash during coronavirus lockdowns – turned to bitcoin.

  1. Regulation

2021 was also full of crypto currency scams therefore as money flooded into cryptocurrency, regulators were concerned about its potential to facilitate money laundering and jeopardize global financial stability. 

Crypto markets were wary of the possibility of a crackdown as new restrictions loomed. Some countries took the harsh steps of banning the use and trading of crypto among its citizens as a regulatory procedure which affected the growth of cryptocurrencies for example when Beijing imposed restrictions on cryptocurrency in May 2021, bitcoin plunged over 50%, pulling the entire market down with it.

  1. NFTs

You didn’t live through 2021 if you don’t know what NFTs are, they came to an all time popularity last year. The number of non-fungible tokens (NFTs), which are strings of code kept on the blockchain digital ledger and indicate unique ownership of artworks, films, and even tweets, exploded.

A digital artwork by US artist Beeple sold for about $70 million at Christie’s in March, making it one of the top three most expensive works by a living artist ever sold at auction.

The third-quarter sales were $10.7 billion, an increase of more than eight-fold over the previous three months. Prices for some NFTs soared so swiftly when volumes peaked in August that speculators could “flip” them for profit in days, if not hours.

While some of the world’s most well-known businesses, such as Coca-Cola and Adidas, have offered NFTs, the lack of uniform regulation has kept larger investors away. 

Cryptocurrencies and NFTs’ success, according to analysts, may be connected to a reduction in social mobility, with younger people lured to their potential for quick returns while traditional assets such as houses become out of reach due to rising costs.

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Business

Kickstarter faces Backlash Over Partnership with Celo

Kickstarter announced intentions to create a decentralized protocol based on Celo, a mobile-centric blockchain, on Thursday. A new open-source and decentralized paradigm, according to the Kickstarter team, would make it “possible for people to begin and support creative projects anywhere.”

Kickstarter can eliminate the need for intermediaries and gatekeepers by using a blockchain like Celo. The company claims that doing so will minimize friction and make fundraising easier for millions of unbanked people around the world.

The Kickstarter community, on the other hand, has reacted angrily to the company’s blockchain aspirations. Kickstarter’s own users, including well-known artists and designers, have chastised the platform for considering a blockchain approach.

A blockchain flip might be a significant growth driver for Kickstarter. However, based on recent events, it’s evident that many of the company’s current users are highly opposed to the proposal. In response to the company’s blockchain plans, disgruntled users vented their frustrations on social media sites such as Twitter and Reddit.

Users’ purported allegations that Kickstarter’s blockchain plan will be harmful to the environment have sparked criticism. Despite the fact that Celo is a Proof-of-Stake blockchain that operates various environmental programs in order to be a “carbon-negative” project, this is the case.

In a tweet, Jeeyon Shim, a Korean American game creator, expressed his disappointment in the relationship between Kickstarter and Celo and urged Kickstarter to reconsider its decision. Shim said that “environmental stewardship” was one of their basic values. Elizabeth Hargrave, another critic of the Kickstarter-Celo alliance, wrote: “Oh hell no. “Blockchain is a nightmare for the environment, and I will never support a board game based on it.”

While environmental worries about Proof-of-Work chains like Bitcoin are legitimate, it’s important to distinguish Bitcoin’s Proof-of-Work from Celo’s Proof-of-Stake consensus process, which uses far less energy. Instead of employing energy-intensive computations to validate blocks in Proof-of-Stake, blockchain validators safeguard the network by securing transactions with tokens as a stake.

“Putting the rest of crypto under one umbrella is overgeneralizing,” Brian Li, a core developer to Celo-based applications like as UbeSwap and NomSpace, argues.

Despite these facts, Kickstarter users jumped to judgments quickly. Discord and Ubisoft recently received similar backlash from their respective communities after simply exploring the possibility of incorporating non-fungible tokens into their systems.

Kickstarter has yet to respond to users’ complaints. According to their latest update, Kickstarter intends to release a whitepaper outlining their proposed decentralized crowdfunding platform.

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Business

Gold vs Bitcoin: Which is a better investment option?

Gold vs Bitcoin: Which is a better investment option?

In 2019, Analysts in the world of economics such as David Rosenberg, Chief Economist, and Strategist at Gluskin Sheffhave predicted a recession. After many years of the bull market, investors concerned about this possibility may abruptly begin looking for a way to shift their investments into more stable safe havens. The Covid-19 pandemic taught us many lessons about a number of aspects of life, but one of the most important lesson was about the need to have your savings and investments in order. 

Gold

As we have experienced during the pandemic, people have flocked to safe-haven assets such as gold investments. Gold is an excellent safe-haven asset due to a number of considerations. It’s rare and valuable as a material for consumer items like jewelry and electronics and has nothing in common with assets like currencies and stock indices like the S&P 500. 

You can buy gold from banks, brokers, exchanges, and even physical stores that sell physical gold for cash. The majority of regular exchanges allow initial investments starting around 5-10 ounces of gold ($1,740/ounce), but new exchanges allow smaller purchases, as low as just a few dollars. Over the last 5 years, gold recorded a 38% price increase. 

Bitcoin

Launched in 2009, Bitcoin ushered in a new era of digital currencies. Investors have started looking at it as the future gold. It is purely decentralized and can’t be stolen. It is viewed as the most lucrative asset on the face of the earth. Bitcoin caught the public’s attention over the last few years and became the most popular investment. 

Its value comes from different traits and fundamentals, but overall it’s valued primarily for its scarcity, censorship resistance, security, and ease of transaction. The return on investment is projected to be 80% and has proved to generate wealth for generations. It is generated by the collective computing power of “miners,” individuals, and pools of people working to verify transactions that take place on the Bitcoin network and are then rewarded for their time, computing power, and effort with bitcoins

Of all the assets, Bitcoin is the only one available for trading 24/7, all year long. You can buy BTC (Bitcoin) on cryptocurrency exchanges such as Binance.com, via P2P trading, bitcoin ATMs, vouchers, or a wide range of fiat gateways.

Comparison

Although it is riskier and not as pretty, Bitcoin is available for trading 24/7, unlike gold. Additionally, it is digital hence it transcends borders and is not controlled by a central entity or individual. Even with online scams and security breaches, Bitcoin can safely keep backups. From memory wallets, paper wallets, desktops among others, Bitcoin can take many forms, you have many options that don’t require the services of a third party unlike Gold.

Whilst both gold and Bitcoin are finite, gold above the ground stocks has been increasing by around 1.7% a year for the last 20 years.  In contrast to this, Bitcoin stocks are currently increasing by around 3% per year.  Furthermore, the cryptocurrency space has grown immensely in recent years, and there are now thousands of different types of cryptocurrencies, along with Bitcoin, available to purchase via various online platforms, and yet Gold is a scarce natural element.

Final Verdict

Precious yellow metal and bitcoins are two assets that are independent of the government. Both gold and cryptocurrencies are limited assets and hence prices of both of these assets appreciate or depreciate based on their demand and supply. In terms of rarity, both are rare and as far as liquidity is concerned, both are good.

The traditional move would be to hedge against stock volatility with gold. This has proven an effective method in the past but diminishing the shine of yellow metal, cryptocurrency has given even better returns than gold. And, that is why cryptocurrency is the new hot cake in terms of investment. It has become a newer alternative that is challenging the old-school safe-haven.

While gold has unmatched accessibility to people of all economic standing and technological knowledge, as a store of value, Bitcoin has outperformed gold by a factor of 100. The rest of the globe is catching up and is starting to reprice digital currency in real-time. Despite the fact that Bitcoin has increased by more than tenfold in the previous few months, it is expected to continue to appreciate US dollar terms in the next few years. By 2030, Bitcoin’s market capitalization may have surpassed that of gold.

As cryptos have been giving stellar returns amid uncertainty in regulations, there is still a debate going on whether gold would lose sheen in a race against bitcoins.

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Business

Rug pulls pushes this year’s crypto scam revenue over $7.7billion, Chain analysis finds.

Scams in the crypto currency industry have grown a whole lot this year and once again, they have emerged as the dominant form of crypto-currency based crimes, according to  Chainalysis’ Crypto Crime Report. 

2021’s crypto scam earnings exceeded $7.7 billion, up 81% from 2020 as reported on the platform.

Crypto Scams in 2020

This year’s crypto scam revenue climbed significantly compared to 2020, yet it still fell short of the all-time high set in 2019.

The Finiko Ponzi scheme, which targeted Russian speakers throughout Eastern Europe and took in more than $1.1 billion from victims in 2021, was singled out in the report.

“While total scam revenue climbed dramatically in 2021, when we exclude rug pulls and confine our study to investment scams–even with the emergence of Finiko–it remained steady,” the paper stated.

This means that there were fewer individual scam victims, however the average amount taken from each victim grew, according to Chainalysis.

The report also stated that, in comparison to prior years, criminals’ money laundering techniques remained unchanged, since most coins sent to fraudulent addresses ended up on mainstream exchanges.

The emergency of Rug Pulls

Rug pulls plagued the DeFi ecosystem in 2021, netting victims over $2.8 billion in cryptocurrency.

Rug pull is a relatively new sort of exit fraud, in which project insiders drain funds from the liquidity pool, causing the token’s price to plummet.

In 2021, they contributed 37% of all bitcoin scam earnings, compared to just 1% in 2020.

“It’s crucial to recall that not all DeFi projects start as rug pulls,” Chainalysis said, citing the year’s largest rug pull, which was centered on Turkish CEX Thodex.

Nearly 90% of the value stolen in rug pulls this year is due to the Thodex fraud, in which consumers lost over $2 billion in cryptocurrency.

All of the other 2021 rug pulls started out as DeFi ventures, with AnubisDAO and Uranium Finance being the biggest of the bunch.

Compared to previous years

The average lifespan of financial scams has decreased, according to the research, which may explain why “the number of financial scams active at any point in the year–active meaning their addresses were receiving funds–rose dramatically in 2021, from 2.052 in 2020 to 3.300.”

According to Chainalysis, the long-standing statistical association between crypto prices and scamming activity has shifted this year, indicating that the crypto sector is maturing.

“Scams often come in waves corresponding with prolonged price growth in prominent cryptocurrencies like Bitcoin and Ethereum, which typically also leads to influxes of new users,” according to the paper, which noted that scamming activity peaked after bull runs in 2017 and 2020.

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Business

Peter McCormack acquires a local football club and reveals his agenda–“with Bitcoin at its heart” to the EPL

Peter McCormack, a well-known Bitcoin bull, recently announced that he has become the proud owner of Bedford FC, a local football club in the United Kingdom.

In a heartfelt Twitter thread, he explained how this acquisition matches with a childhood desire of bringing professional football to his hometown and how Bitcoin will help make that dream a reality.

McCormack highlighted his aspirations to build Bedford FC as a club with “Bitcoin at its center” in a fourteen-tweet thread, as well as some of the details of his optimistic agenda for the team. The first phase will focus on putting Bedford FC into the National League, with the second phase focusing on getting Bedford FC into the Premier League.

“Both phases necessitate a distinct strategy, but we must ultimately be commercially successful,” Peter concluded, and this is where Bitcoin, according to McCormack, joins the team.

“It’s all about winning games, and you need the finest players and managers to win games.” “You have to be commercially successful to afford the greatest players and managers,” he remarked as he explained his method.

“I will establish our club as the Bitcoin club, a team that operates on a Bitcoin standard,” McCormack said, adding that Bitcoin will be incorporated into every aspect of the team, from merchandise and sponsorship endorsements to an education training program for fans and community members, as well as open-source development opportunities.

“We have so much leverage,” said the bull without any false modesty, adding that he knows everyone in Bitcoin–which will make it easy to “rally the troops.”

“An army of 150 million Bitcoin holders and companies can be part of this journey,” he argued, as he pointed out that teams the size of Bedford FC can typically only tap into a local community of fans and companies to drive revenue.

McCormack has over 432 thousand Twitter followers, and his well-known Bitcoin podcast has over one million monthly downloads–and he’s more than eager to take advantage of his platform and audience.

” Let us not allow FTX, Crypto.com, and Ryan Reynolds have all the fun,” McCormack said sarcastically, noting that 3.5 billion people watch the Premier League alone, which he hopes to utilize to promote the Bitcoin Standard.

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Business

Justin Sun Steps Down From Tron to Join Grenada Government

Justin Sun will leave his position as CEO of the Tron Foundation, the non-profit behind the Tron blockchain network, which he launched in 2017. According to a press announcement from Tron shared with Decrypt, Sun will join the government of Grenada as its new full-time ambassador to the World Trade Organization (WTO).

Justin Sun is a well-known tech-prenuer. In July 2017, he founded the cryptocurrency platform TRON, and he is also the current CEO of Rainberry, Inc. TRON is one of the world’s most popular blockchains. Since 2013, Justin has been the founder, chairman, and CEO of Peiwo (Callme), a mobile social app.

“It is a true honor to serve as the WTO ambassador for Grenada,” said Sun in a statement. “I look forward to the opportunity to represent Grenada and work with WTO leadership to reinvigorate global trade in various ways, particularly the development of a robust digital economy internationally.”

“Sun’s expertise in the blockchain industry will likely breeze some much-needed fresh air into the regional economy, as Grenada and CARICOM [the Caribbean Community] are among the hardest hit by a Covid-led tourism industry shutdown,” the press release read.

A spokesperson for Tron confirmed that it isn’t a “paid role,” and added that “one of [Sun’s] goals is to represent and make blockchain mainstream by bringing it to the global political arena via the WTO.”

Sun enjoys pushing crypto to well-known figures, and he is willing to pay handsomely for the privilege if required.

He paid $4.5 million in February 2020 for the privilege of dining with Warren Buffett, the billionaire investor (following a long delay after Sun said he had kidney stones). Buffett, who had previously referred to Bitcoin as “rat poison squared,” received Bitcoin at the meal. Later, Sun apologized to Buffett for being “a loudmouthed over-marketer.”