In today’s bitcoin and cryptocurrency news, read about Bitcoin, the largest and most popular cryptocurrency in the world, saw its value increase by more than 5% today, trading at $19,427. Meanwhile, when asked about the potential impact of Chainlink, Schmidt said it would be a “major contribution” to the tech sector if it were to scale. Web3 is “not normal” compared to other industries, but former Google CEO Eric Schmidt thinks it’s on the right track. In addition, the three largest cryptocurrencies by market cap—Bitcoin, Ethereum, and XRP—all saw losses of more than 5% in the previous day, bringing their respective prices to new lows on Wednesday morning. These shifts came after the yield on the 10-year Treasury bond fell overnight from its all-time high of over 4% on Wednesday morning. The question now is how long the bear market in cryptocurrency will last, as risk-free alternatives are looking more appealing than ever. Finally, the primary function of cryptocurrency is as a means of exchange, but it does not appear to meet the criteria for legal tender.
Bitcoin and Ether Prices Today Are Up Over 5%
Original Source: Cryptocurrency prices today gain as Bitcoin, ether surge over 5%. Check latest rates
Bitcoin, the world’s largest cryptocurrency, rose more than 5% to $19,427 Monday. The worldwide crypto market cap is $984 billion, up 2% in the last 24 hours, according to CoinGecko.
Ether, the second largest cryptocurrency, rose more than 5% to $1,338. Meanwhile, dogecoin jumped 4% to $0.06 and Shiba Inu rose 3% to $0.000011.
“Bitcoin rebounded $19,000 as US markets started after sliding to a firm trendline on Tuesday. BTC traded between $18,600 and $19,500 this month. If BTC closes above $19,500, the next month may witness more gains. Ethereum bounced off $1,262 support, demonstrating that bears are selling and bulls are buying. “If bulls can push the price beyond $1,410, we may see a favorable trend,” said Edul Patel, CEO and co-founder of Mudrex.
Solana, Polygon, Avalanche, Binance USD, Polkadot, Litecoin, Cardano, Chainlink, Tron, Tether, XRP, Stellar, ApeCoin, Terra and Terra Luna Classic values rose in the previous 24 hours.
Robinhood Markets Inc announced Wednesday it has partnered with Circle to offer clients the opportunity to purchase and trade stablecoin USD Coin (USDC). The launch of USDC extends the number of assets available to buy and sell on Robinhood Crypto to 17. It’s the first stablecoin offered on the app.
The crypto meltdown and collapse of key stablecoins in recent months received great investigation. TerraUSD, a prominent stablecoin, broke its 1:1 peg to the dollar in May, sparking sector-wide turbulence that led to crypto lenders Celsius and Voyager declaring for bankruptcy and Coinbase, BlockFi, and Crypto.com laying off thousands of staff.
Crypto is “Getting Its Act Together,” as Ethereum Merge Indicates
Original Source: Ethereum Merge Shows Crypto Is ‘Getting Its Act Together’: Eric Schmidt
Eric Schmidt, former Google CEO, argues Web3 is “not normal” but on the correct track.
Schmidt discussed crypto and Web3 with Chainlink Labs Co-Founder Sergey Nazarov at SmartCon on Wednesday.
Schmidt: “I’ve always been skeptical.”
He’s making progress. The former Google executive told Nazarov that Ethereum’s transition from proof of work to proof of stake is “a indication that your business is getting its act together.”
Schmidt has some Web3 complaints. He said smart contracts, which execute instructions on blockchains like Ethereum, are “terrible” and Web3’s marketing campaign “got ahead of reality.”
Schmidt’s values Chainlink uses “oracles” and node networks to give blockchain-based information.
Schmidt, a longtime Web2 executive, said Chainlink had “superior technology” and “scales better” than its competitors. In December, he became a strategic advisor.
Schmidt told Nazarov, who concurred, “Don’t trust humans, trust protocols.”
“People’s faith in math will be stronger than their faith in organizations, brands, and people,” Nazarov said.
Schmidt also supported Zero Knowledge Proofs, a cryptographic method that verifies data without revealing private information. Schmidt believes ZK Proofs will revolutionize crypto transactions and blockchain networks.
Advice for crypto firms and developers?
Schmidt said crypto legislation is premature because the technology is still emerging and the full amount of its potential issues has yet to be uncovered.
Schmidt doesn’t think libertarianism is a viable crypto business ideology.
Schmidt: “Societies don’t reward libertarian thinking.” Authorities will assert themselves.
Bitcoin, Ethereum, and XRP All Drop Again Today as the Crypto Crash Continues
Original Source: Crypto Crash Continues as Bitcoin, Ethereum and XRP All Plunge Again Today
Large cryptocurrencies are falling as risk aversion spreads.
Happened
It’s another bad day in crypto. As of 9:30 a.m. ET Wednesday, most major tokens were falling, led by Bitcoin (BTC 2.49%), which had fallen 5.3% in 24 hours. As of Tuesday morning, the world’s largest cryptocurrency by market cap was trading above $20,000. A sectorwide selloff sent it below $18,500 late in the day. As of this writing, the token was worth $19,100.
Not much better for Ethereum (ETH 3.08%) and XRP (XRP 2.68%). These two tokens were down 5.8% and 9% in 24 hours as of 9:30 a.m. ET.
It appears macroeconomic factors continue to hurt cryptocurrencies. In the last 24 hours, the 10-Year Treasury yield shifted overnight. This key bond, which affects risk asset valuation models and sets the benchmark lending rate for many debt instruments, rose above 4% for the first time since 2008. In general, higher yields on “risk-free” bonds are bad for risk assets. When investors can get better returns from lower-risk assets, they shift funds away from riskier ones. Also, investors expect higher returns on risky investments when they have more good options.
As has been the case recently, equities and crypto were highly correlated. Early morning declines across all major indices, but especially the Nasdaq, were reflected in falling risk asset prices.
But
There aren’t many token-specific forces behind Wednesday’s decline. And while some investors clung to previous catalysts like The Merge, bullish sentiment for crypto appears to have eroded.
Correlations between stocks and cryptos make sense as crypto investing becomes more mainstream. Those who buy crypto (especially institutions) also invest in stocks. When many investors are looking to reduce portfolio risk, bonds may seem like a more attractive asset in the short term.
what
Cryptocurrencies have proven their value as high-growth assets that can boost bull market returns. The returns on Bitcoin, Ethereum, and XRP after one of the longest bull markets in history are notable. So, when the market turns, this is an asset class to watch.
Many wonder when the bear market will end. Spring 2021’s drop was followed by a V-shaped recovery. This rebound ended in December, but many hope for a similar outcome after 2022’s steeper fall. Given inflationary pressures, bond investors don’t expect a sharp policy shift. Crypto markets may see more downside volatility.
Are Bitcoins Actually Money
Original Source: Opinion: Is Bitcoin really money?
Bitcoin is a digital currency in which coins are generated and transacted online (blockchain) without a central authority, such as a government or a bank. Bitcoin was worth $385 billion as of Sept. 27. This means Bitcoin’s GDP would rank between the UAE ($383 billion) and Norway ($399 billion)
Bitcoin is meant to be a currency. To be considered money, Bitcoin must serve as a medium of exchange, store of value, and unit of account. But does Bitcoin meet them?
Can Bitcoin buy food?
Is Bitcoin a medium of exchange or accepted payment for groceries? It’s complicated, but the short answer is yes. Utah has more than 300,000 small businesses, but only 12 accept Bitcoin. 72 Bitcoin ATMs are in Utah businesses. Below is a heatmap of Bitcoin services in the state.
These results suggest less than 0.03% of Utah small businesses offer Bitcoin services directly. Thus, fewer small businesses accept Bitcoin than Visa, Mastercard, Discover, and Venmo. PayPal recently announced it will support Bitcoin transfers, enabling more trade and use.
While Bitcoin won’t be the primary medium of exchange anytime soon, the number of businesses accepting it is growing quickly.
Is Bitcoin stable?
In economics, a store of value is an asset that doesn’t depreciate. Is Bitcoin a bank?
To answer this question, I gathered daily exchange rates for the US dollar index, five foreign currencies (USD, EUR, GBP, CAD, AUD) and Bitcoin. I looked at these rates’ five-year variability (September 2017 to September 2022). Bitcoin prices fluctuate 77.22% per year. In contrast, U.S. dollars, euros, British pounds, Canadian dollars, and Australian dollars vary by 4.8%, 8.6%, 10.4%, 8.7%, and 12.8% per year. Over this sample period, Bitcoin was 8.5 times more volatile than currencies collectively and 16 times more volatile than the U.S. dollar index.
Of course, any currency used by people will be somewhat volatile, but too much instability can be problematic. Bitcoin’s value peaked on Nov. 7, 2021 at $65,466.84 per coin and dropped to $19,631.63 on Sept. 27, 2022. Your $250 per week grocery budget in Bitcoin at its peak would be worth $75 in 10 months.
Can my TV be worth bitcoin?
Can Bitcoin be used to value a TV (unit of account)? For that, Bitcoin must be divisible, countable, and fungible. Bitcoin is divisible to eight decimal places, with the smaller units called satoshis. The U.S. dollar can only be divided into pennies for daily use. Bitcoin’s units can be added, subtracted, multiplied, and divided to account for profits, losses, income, expenses, and wealth. Bitcoin is fungible, meaning one Bitcoin equals another Bitcoin. So yes, you can value your TV in Bitcoin.
Overall, Bitcoin has the potential to be a safer and more cost-effective money source, but that hasn’t been realized yet. A world where Bitcoin is used to buy groceries is far off, but possible. There are nearly 10,000 cryptocurrencies trading globally, and it’s only a matter of time before someone solves the issues outlined above.
Summary of today’s Bitcoin and Cryptocurrency News
To put it simply, the crypto meltdown and collapse of key stablecoins in recent months received great investigation. TerraUSD, a prominent stablecoin, broke its 1:1 peg to the dollar in May, sparking sector-wide turbulence that led to crypto lenders Celsius and Voyager declaring for bankruptcy and Coinbase, BlockFi, and Crypto.com laying off thousands of staff.
Meanwhile, Schmidt has campaigned for the new technology of Zero Knowledge Proofs, which are a type of cryptographic function that allow for data verification without revealing private information. Schmidt thinks ZK Proofs will revolutionize the crypto transaction experience, which in turn will boost blockchain networks and Web3 usage.
In addition, long-term research has demonstrated the potential of cryptocurrencies as high-growth assets that can boost returns during bull markets. The returns investors have witnessed in assets like Bitcoin, Ethereum, and XRP are noteworthy after one of the longest bull markets in history. As a result, when the market inevitably recovers, I believe this asset class will be one to pay attention to.
Finally, Bitcoin could one day become a more reliable and cheaper form of currency, but this has not yet been realized in the market. It is still a long way off, but one day you may be able to use Bitcoin to buy groceries or gas at the gas station. It’s only a matter of time before someone develops the technology to address the aforementioned problems, and already there are approximately 10,000 distinct cryptocurrencies circulating across the world.
