In today’s cryptocurrency news, learn about this Diwali you may give your loved ones a crypto gift basket instead of the usual assortment of dried fruits and sweets? In the form of NFTs and crypto gift cards. Explore your possibilities, but act cautiously. Meanwhile, Ethereum’s long-awaited network upgrade has arrived, altering fundamental aspects of the cryptocurrency’s blockchain, including transaction verification, token creation, and security. Finally, there are three scenarios where Bitcoin prices hit $1 million, as predicted by Ark Invest. By far, the most contentious Bitcoin application is as a hedge against government-sanctioned asset confiscation. In a year dominated by debates about censorship, free speech, and disinformation, the possibility of having one’s assets seized arbitrarily has been more prominent.
Diwali Crypto Gifting Choices
Original Source: These are the best crypto gifting options this Diwali
People are scrambling to find the perfect Diwali gift. While gifting gold is an age-old Indian tradition and a good investment, the young and restless are gifting cryptocurrencies this Diwali.
Why cryptocurrency can be gifted
Diwali is an auspicious time to make new investments and acquire new assets. Indians have invested in gold for years.
Gold is a long-term investment and is often purchased and gifted during Diwali. With a digital-first mindset, teens are gifting cryptocurrencies this year.
Some see cryptocurrency as digital gold, a better investment than gold. Gold-backed token PAX gold can be an option to fund the future during Diwali, says Tarusha Mittal, COO and Cofounder of Unifarm, a group staking platform.
Even though the crypto market is down, investors remain optimistic.
According to Anurag Dixit, founder of Kunji, a centralised crypto asset management platform, crypto is a better gifting option than gold this year.
People prefer to invest in sovereign gold or digital gold due to changing times and trends. Bitcoin (BTC) has become more profitable than digitized gold, he says.
Shrikant Bhalerao, CEO of blockchain and digital infrastructure platform Seracle, says crypto gifting is perfect for individuals and businesses. Individuals can let the investment grow or liquidate it, he adds.
Medha B Dey Roy, Head of Branding at KuCoin India, says it’s important to consider the recipient’s crypto knowledge when gifting.
“If your receiver doesn’t know how to access or secure crypto, tell them how to deposit or transfer. It’ll be a fun gift, she says.
Diwali 2022 | KR Choksey’s Samvat 2079 stocks
The best crypto gifts for Diwali 2022, according to experts:
Bitcoin
Industry insiders favor the world’s largest cryptocurrency by market cap for Diwali gifts.
Bitcoin is the best Diwali gift. Bitcoin is decentralized and has proven its credibility over years, says GoSats CEO Mohammed Roshan.
“Although Bitcoin alternatives are everywhere, it’s likely they’ll die out unless they have a strong use case and adoption,” he said. Roshan suggests companies give Bitcoin as a Diwali bonus.
Bitcoin is a popular cryptocurrency. Marc Despallieres, CFO of CFD trading platform Vantage, supports Bitcoin.
Bitcoin is the most-known cryptocurrency. It accounts for 40% of all cryptocurrency market cap. One Bitcoin costs over Rs 16 lakh. Bitcoin is divisible, so a gift could be any amount. So, Rs 5,000 in Bitcoin is possible, he says.
Cryptogiftbasket
While Bitcoin is popular, other tokens have more potential and use cases. Mudrex founder Edul Patel suggests giving a crypto gift basket for Diwali.
“Curated crypto baskets with the highest market cap, such as Bitcoin, Ether, etc., could be best for gifting crypto,” Patel says.
Tezos, Neo, and Litecoin are also backed by experts and can be included in the gift basket.
Cryptogiftcards
Crypto gift cards can be exciting for the sender and receiver, like retail store gift cards. Industry experts believe it could be worth more in the future.
WazirX’s VP of Marketing Rajagopal Menon says the gift card feature will convert non-coiners into crypto users. Muhurat trading and WazirX Crypto Gift Cards let users share Crypto with loved ones.
Cryptographic tokens
NFTs are blockchain-based cryptographic assets with unique identifiers and metadata. NFTs cannot be traded or exchanged at par, unlike cryptocurrencies, which are identical and can be used for commercial transactions.
Netizens love NFTs. Individuals and brands love NFTs’ real-world uses. Even though the market is down, experts say NFT investing will continue.
Giving a high-quality NFT as a gift can teach a loved one about the world’s latest technologies, says Asif Kamal, founder of Web3 fine art fintech startup Artfi. Joining a community is another possibility. Basketball fans may share NBA Top Shot NFTs to support their team.
NFTs are unique and safe from plagiarism, says weTrade CEO Prashant Kumar. Every login receives an NFT. Kumar explains that users can claim their NFT after logging in and sharing it on Facebook, Twitter, or LinkedIn.
Stablecoins
Stablecoins’ value is pegged to another currency, commodity, or financial instrument. These coins aim to provide an alternative to the high volatility of Bitcoin and other cryptocurrencies, which makes them unsuitable for everyday transactions.
Bitay’s Country Head Amanjot Malhotra believes Stablecoins are a stable form of gifting. “Network members can give gifts. Companies can give crypto as Diwali gifts, he says.
This Diwali, one concern will be the taxation of cryptocurrencies in India. Experts have clarified.
The government must tax cash, immovable property, and certain moveable assets like shares, jewelry, and paintings.
Union Budget 2022 proposes classifying virtual digital assets as movable. The recipient of VDAs from certain relatives is not required to pay taxes. Virtual assets worth more than $50,000 are taxed for non-family members.
“Only if the gift of VDAs, like Bitcoin or NFTs, exceeds Rs 50,000 is it taxable, per your income slab rate. Anmol Chawla, co-founder of TaxCryp, a VDA tax computation platform, says gifts from relatives are tax-free.
Abhijit Shukla, CEO of Tarality and Revolution Games, says wedding gifts are tax-free. “Bridegroom or bride’s parents cannot profit from an exemption,” he says.
If you later sell or swap (and make a profit), you’ll owe a 30% tax, says Punit Agarwal, CEO of crypto tax platform KoinX.
When investing in cryptocurrencies, remember their volatility. Financial market volatility refers to price changes.
It can be healthy, with steady increases or decreases within a range, or extreme, with sudden price movements. Experts warn against basing investment decisions on the crypto market’s current state.
How Ethereum’s Merge Improved Crypto Mining
Original Source: How ethereum’s merge made crypto mining more sustainable
After years of anticipation, the cryptocurrency ethereum finally implemented a major network upgrade that completely changes how the blockchain verifies transactions, mints new coins, and secures its network. Proof-of-stake has reduced ethereum’s energy consumption by more than 99%.
Energy usage is one of the cryptocurrency industry’s biggest critiques. It’s unlikely that bitcoin will follow suit.
Instead, the bitcoin network uses a system called proof-of-work, in which specialized computers try to guess a winning number to validate transactions and create new coins. That’s called mining.
At the moment, guessing a winning number takes over 100 sextillion tries. All of this work helps secure the network by making it nearly impossible for bad actors to gain enough computing power to take control. Recent research shows that in 2020, Bitcoin mining will consume 75.4 terawatt hours of electricity, more than Austria or Portugal.
This is the system formerly used by ethereum. But the network has swapped miners for validators. Instead of playing a massive computational guessing game, validators are assigned to verify new transactions and earn ether for doing so.
To ensure that these validators act honestly, they stake a certain amount of ether coins into the network. If a validator tries to attack the network, they’ll lose their stake. Ethereum proponents say this penalty will make the network more secure, while bitcoin enthusiasts see proof-of-work as the more secure, tried-and-true approach.
The optics of bitcoin’s energy use in the midst of the global climate crisis has become a problem for the network. In response, some major bitcoin miners are seeking renewable energy to power their data centers and trying to change the narrative by touting bitcoin’s energy use as an asset, as it helps drive investment into the nation’s aging electrical grid.
Reason Bitcoin Could Reach $1 Million
Original Source: The Mind-Blowing Reason Why Bitcoin Could Eventually Reach a $1 Million Price
A $1 million Bitcoin price target just got more contentious.
In April, Cathie Wood of Ark Invest predicted a $1 million Bitcoin price. Then the market crashed. Six months later, Ark Invest has maintained its $1 million price target for Bitcoin. After crunching the numbers, the investment firm concluded that Bitcoin’s three basic use cases support a $28 trillion market cap, or over $1 million per Bitcoin.
The team at Ark Invest arrived at that $28 trillion market cap figure by adding a new use case for Bitcoin: as “insurance against arbitrary asset seizure.” This likely refers to libertarians’ worries about governments in general. Ark Invest suggests people could invest in Bitcoin to protect their savings from the government. OMG.
Asset seizures
“Arbitrary asset seizure” used to only occur in dystopian novels like 1984. Unless there was wrongdoing, governments couldn’t take your money. But look at the West today. We quickly move from “de-platforming” to “de-banking” people based on their views. It looks like financial services companies are starting to ban, censor, and de-platform people with certain views or opinions, emboldened by Big Tech social media companies.
Watch Kanye West. JPMorgan Chase (NYSE: JPM) wants to end its relationship with Kanye West due to his offensive comments online and in public. In a similar vein, PayPal (NASDAQ: PYPL) was criticized for a plan to fine customers $2,500 for spreading misinformation online. PayPal apologized for its error.
Bitcoin, censorship
In a recent Bloomberg TV interview, Ark Invest said Bitcoin is “censorship-resistant.” This means investing in Bitcoin allows you to say certain things, even if they violate a platform’s terms of service, because there is no censorship. Ark Invest also noted that Bitcoin is “non-sovereign,” meaning a sovereign government can’t see what’s in your wallet. Just in case they don’t like your online comments. In Canada, the Trudeau government tried to freeze the bank accounts of anyone aiding the “Truckers Convoy” in Ottawa. The best way to silence opposition is to de-bank it.
Summary of Bitcoin and Cryptocurrency news
To sum it up, it can be healthy, with regular gains or reductions within a range, or excessive, with rapid price swings. Experts caution against basing investing decisions on the crypto market’s current situation.
Meanwhile, Bitcoin’s energy use has become a worry amid the global climate crisis. Some prominent bitcoin miners are seeking renewable energy to power their data centers and trying to change the narrative by presenting bitcoin’s energy use as an asset because it helps invest in the nation’s aging electrical grid.
Finally, a $1 million price for Bitcoin may sound silly and unrealistic, but if society keeps de-banking people it doesn’t like, it may not sound so strange in a few years. At that moment, only those who moved their fiat money into crypto could explain what they genuinely believe and feel.
