At the end of July, Bitcoin jumped over the $30,000 mark after Elon Musk mentioned that Tesla is “most likely” to accept it again as payment. Back in May, the carmaker stated that Tesla would not take the crypto for purchases. That is due to his concerns about the impact that mining Bitcoin could have on the environment. This came out only after two months that the company started receiving the crypto as payment. During the B-Word crypto lecture, Elon Musk stated that the company would likely accept Bitcoin again.
Early this year, a group of investors and environmentalists vigorously attacked Tesla for starting to take Bitcoin as a payment method. They criticized that Tesla was seen as an environmentally responsible company, and taking energy-intensive crypto was a contradiction.
The founder of Tesla has also been in the spotlight to use his privileged position and popularity to back up different crypto. While in a conference earlier this year, he commented that besides Tesla and SpaceX, his rocket company, he owned a variety of cryptos, such as Bitcoin, Ethereum, and Dogecoin. His statement, of course, caused an increase in said cryptocurrencies. He also mentioned that he had already participated in the artificial rise in cryptocurrencies before he planned to sell them but would like to see Bitcoin succeeding.
After those comments, there was an increase in Bitcoin of 6% at $31,952, Ethereum 10.6% higher at $1,979. All this according to the website Coindesk.
The CEO of Tesla and SpaceX has stated on several occasions that he has no plans of selling his crypto anytime soon. If you decide to invest in Bitcoin, experts on the subject suggest sticking with a strategy long-term instead of trading short-term. Some recommend planning to hold for about ten years at least.
When we consider that costs for crypto can be high, we can conclude that buying and holding can be of benefit in that regard. A good approach is to view Bitcoin as something you should hold on to for a more extended period. Even though it might be tempting to trade while following social media, experts recommend fighting this urge.
Before launching yourself into an investment in Bitcoin or any other coin, you should learn about it and understand all the possible risks. It’s important for new investors to understand that the asset is very volatile. One has to be comfortable with fluctuations and also the possibility of losing money. There are no guarantees. The cryptocurrency universe is hardly regulated, so you should ensure that whatever you choose to invest is something you can afford to lose.
A couple of days ago, the token of Solana’s protocol, also known as Sol, went through sharp fluctuations in price. Solana’s high volatility was due to a flood in the network that took place this week. The token fell more than 15%; later on, it regained a lot of the losses. The asset fell as low as $142.86 a few days ago, at which point, the crypto had already lost about 16% after getting the intraday high amount of $171.48. All of this is according to data from Messari.
At the beginning of September, it reached a new high of $214.36. By the time of the last crash, it had already fallen a bit more than 33%. The token started recovering soon after, and at the moment of this writing, it was trading at $159.11.
The network experienced technical difficulties, and it went down soon after; this was announced on September 14. That’s when most of that day’s action in price took place. Around 8 am that morning, the network had produced the last block, then a bit after 11 am, the CEO posted a tweet addressing the difficulties. The message stated that bots were flooding the network through a DEX that was happening on Raydium. The last being an automated provider of liquidity and market maker built on Solana. Then finally, at 3 pm, the Solana Twitter account gave an update. The post declared that the network experienced increased transactions, which saturated the processing channel and caused the web to start forking.
Even though it’s true that the price of SOL went down during this incident, it had been experiencing a downward trend before. More than one analyst concludes that today’s price action is a combination of standard profit-taking and technical difficulties’ impact. They say that after SOL’s price got to its overbought level, it was customary for it to go down because of profit-taking.
Despite the unfortunate situation, analysts generally provided an optimistic view on the future prospects of Solana’s project. Of course, what happened will still impact the token price, but they’re also confident about its comeback. They don’t believe it will affect the cryptocurrency long-term and set Ethereum’s early years as an example. Although, they also made it very clear that the project needs to get the network running fast. They believe that because of Solana’s high volatility, they may have a perception issue in the near future if they don’t fix this soon.
In this case, it has become evident that it is not the bug itself that caused Solana’s high volatility in the first place. Instead, people are more surprised that the reaction of the crypto community has come together to find a solution for it. Now the question is not if the Solana network will be able to fix it, but when. And when they do, it’s going to be soon enough for it not to suffer a lot of loss on the matter.
The net value of DeFi went above $170 billion as other projects outside of Ethereum are becoming increasingly more vital. Despite the recent $600 million hacks that cost Poly Network considerable money and an even more significant amount of users. The total value of decentralized finance got to an incredible USD 179.9 billion last week and is fast approaching the $200 billion mark. This is due to the significant momentum of growth that other DeFi projects, besides Ethereum, have been gaining during these last months. Currently, it’s Uniswap, the one dominating the second place with 3%.
According to the statistics, only during the last hours, the Total Value Locked (TVL) increased by 1%. It’s expected that it will keep growing at the same rate in the following days. After the already mentioned Uniswap, the decentralized finance app, Aave, is in charge of $16.04 billion, and Curve of $13.92 billion. This, considering that most of the TVL are actually locked into the reinforced app of Ethereum.
But nowadays, it’s not all about Ethereum. On the other hand, we have several other smaller networks contributing to the TVL. That is the case of Binance Smart Chain (BSC) that has a bit over $19.05 billion of the TVL. Terra follows BSC with 7.4 billion USD, then Polygon with 5.3 billion USD, Solana with a TVL of 2.36 billion. Not far below is Klaytn with a little over 1.29 billion USD total.
Now, we talk about the platforms for the exchange of DeFi; then we can conclude that Curve counts as the highest TVL. Currently, Curve has a TVL of 13.92 billion USD, and after it comes Pancakeswap 5.94 billion, driven by the BSC. And Uniswap, with a TVL of 5.3 billion USD. To set a better picture of the growth of decentralized finance, only for the chain of Ethereum, among 16 other different platforms of dex, statistics reflect that so far there was a total of 19 billion USD global worth of exchanges, only during the last week. Of course, Uniswap had the most considerable dex volume of them all, across all 16 platforms of dex, with 69.2%.
As you can see, Uniswap is the main dex of Ethereum. The statistics mentioned above prove that the decentralized exchange got about $12,952,621,793 in total trading transactions around the globe. A significant percentage of it comes straight from dex apps, but the rest is channeled through other aggregators of dex. Such is the case of 0x API, 1inch, Paraswap and Matcha.
Another worth mentioning relevant statistic in the sector is the total of DeFi users or unique addresses in defi apps based on Ethereum. The last already went above the 3.3 million users. Today’s biggest loan apps include platforms like Compound, Aave, Anchor, Cream Finance and Venus respectively.
The token of Cardano, ADA, has exceeded other coins on top positions and just became the third-largest cryptocurrency worldwide. Now, developers of different networks aim to capitalize on the rise of DeFi that is taking the world by storm. At the moment, the currency is being traded on various exchange platforms. ADA challenged a big crash in price by a warning to jump into a historic high, going even above its previous record.
On Friday, August 20, the token’s rate went over $2.56, registering an increase of 154.54%. The culmination of a movement that had already begun on July 20. All of that despite expert’s opinions who warned about a fall in price. Now that the price of ADA skyrocketed by 50% only during last week, the trust in the advancements in new technologies has also grown.
The previous also boosts confidence that Cardano will enable payment systems on its platform earlier than expected. This improvement is known as the “Alonzo” upgrade, and its release has been officially scheduled for September 12. The investors of ADA keep driving the value of Cardano even higher in anticipation of said upgrade. The upgrade will present smart-contract functionality to the blockchain, which will allow Cardano to settle as a significant player in the DeFi universe.
Due to the low price, Cardano ADA has become one of the most sought-after currencies by traders. Now, with Cardano’s ability to work with smart contracts, the currency has been gaining consistently. On the other hand, its main competitor, Ethereum, dominates the $100,000 decentralized finance space.
These are also known as blockchain contracts and distinguish themselves for the methodology in which they ensure conformity between the parties involved in a transaction. These contracts are comparable to the standard traditional contracts. They function between two parties or more that don’t require the involvement of a third party to ensure the enforceability of the agreement.
Without traditional middlemen like banks, people who use DeFi can transfer financial functions straight onto digital ledgers. That allows them to lend cash or borrow it and collect interest in an account of savings.
The rises in crypto like Bitcoin, Ether, ADA, and others contributed to the market surpassing $2 trillion in total value last weekend. The first time it happened since the crash was in mid-May. And now, on September 12, all eyes will be on the Cardano ADA “Alonzo” upgrade. We’ll have to wait and see how this affects the whole crypto market. If it goes well, ADA could be considered a severe competitor for Ethereum, probably starting a new age in crypto history.
New business models have emerged from the concept of decentralized finance since the advent of Bitcoin and cryptocurrencies. The idea of the decentralization of the monetary economy has been prowling the world in an increasingly expansive way. Especially within the environment of Bitcoin and Ethereum, the most popular cryptocurrencies at the moment. But why will it be the future of the economy?
It’s well known that decentralized finance is rising as a tool for businesses in markets that are still developing. The industry of banking is starting to suffer the consequences of the inflexibility of their current processes. Since last summer DeFi has had a revival. Crypto such as Ether and Bitcoin are becoming more and more accepted as payment methods. USDC has progressed towards becoming an asset that will maintain the value without depreciating. Also, the technology of blockchain is on its way to have the financial infrastructure to offer a system similar to the infrastructure of tradicional finance.
New business opportunities have opened up within the world of cryptocurrencies. Such as open lending protocols, issuance and investment platforms, prediction markets, open exchanges and markets, as well as more stable currencies. On the other hand, the issuance platforms are oriented towards the creation of new tokens. Currently this market has focused more on the issuance of security tokens, so issuance platforms seek to provide issuers with the conditions so that they can launch tokenized securities within the blockchain.
Decentralized finance comprises all financial services offered by automated applications hosted on blockchains that include services such as loans, the trading of currencies that earn interest that no bank offers, and implement investment strategies.
The advantages of decentralized finance are that the source is open and anyone can participate, without a central body that places restrictions or can manipulate it. Their flexibility and possibilities are innumerable. It is still early to tell the real potential of it when implementing it in day to day life. Although the growth within the cryptocurrency sector has been gigantic, cryptocurrencies have not yet reached mass adoption. There is an opportunity for growth. It’s also important to understand that the risks are many and varied. One should always keep in mind not to invest or dedicate money that you are not willing to lose.
Cryptocurrency never seems to get out of the headlines these days. Further adoption of this new payment option is upon us, now, more than ever. The titles range from Bitcoin reaching a new all-time high of $63,000 to Elon Musk and Tesla pouring billions into the crypto space.
Currently, mining, buying, and selling crypto seems to be more of a mainstream rather than a trend; on the other hand, spending virtual coins of value appears to be an issue due to high market volatility.
Nonetheless, a growing number of companies implementing crypto as a viable payment option is proof that crypto spending is here to stay. Embracing cryptocurrency is the new trend on the block. Here are some well-known companies that give crypto as an official payment method for their goods and services.
Maybe the most well-known and largest companies on our list, Microsoft is paving the way for further Bitcoin payment acceptance and boosting overall confidence in utilizing crypto. In Microsoft, customers can use Bitcoin to pay for numerous services, including Skype and Xbox Live.
Microsoft and its newfound love of crypto and crypto technology don’t end there. The company launched a platform named ION. It serves as a two-step authentication platform placed on the Bitcoin network by using blockchain technology. Rather than accepting payments, the platform creates online IDs that authenticate digital identities.
Elon Musk and his on-again, off-again relationship with Bitcoin has been thoroughly documented in the press. Earlier this year, the company made headlines by saying that it will accept Bitcoin payments for vehicle purchases inside the U.S. Also, in February, the company invested as much as $1.5 billion into the coin.
However, there was a slight setback in the new purchase option plan. After rising environmental concerns and new regulation laws, Tesla will put Bitcoin transactions on hold until at least 50 percent of coins are mined using only renewable energy.
Confirmation took place at the end of March that the credit card company is getting ready to pilot a scheme platform via Crypto.com. The idea is to accept crypto for transactions on the payment Visa’s network. Visa will accept USD Coin (USDC), which is a stablecoin backed by the U.S. dollar.
After an extensive trial, Starbucks users received an invitation-only, early access program to test the new digital wallet as a payment method. Up to 500,000 people took up the invitation to the new Bakkt app and will soon be able to pay for drinks and goods with converted Bitcoin.
Amazon is one of the larger companies joining the ranks of tech giants like Facebook that are implementing crypto. It seems that the groundwork has been laid for Amazon’s cryptocurrency, which means that it doesn’t accept crypto directly just yet.
However, Amazon vouchers are available for purchase via a crypto-only company Bitrefill. The company’s main job is to convert Bitcoin into gift cards, refill phones, etc.
Allied Manufacturing and Trade Industries Limited, or Amatil, is the company’s bottler and distributor of the Asia-Pacific area. It has enabled crypto as a payment method through a partnership with Centrapay. The partnership resulted in more than 2,000 vending machines are in circulation all over Australia and New Zealand, which can accept crypto coins to pay for the company’s drinks.
More and more companies are joining the crypto acceptance route, making your purchase options broader and sometimes more efficient. Even though there are a few circumstances where using crypto as payment makes perfect sense, the practical answer is no for most people.
The crypto space and its high market volatility make the main argument for our negative stance on the issue. The price you pay for an item today might not be the item’s worth tomorrow. Also, all of these companies currently experimenting with crypto mainly use Bitcoin, which experts suggest is one of the worst choices.
Nevertheless, a rising interest in crypto is something that will likely change a no into a yes. Eventually. A little bit over 20 percent of U.S. adults says that they would purchase goods and services using this new payment method. When will this mass adoption of crypto coin payments take place? Well, only time will tell. Until then, you might want to experiment with crypto purchases. Just make sure not to go overboard, and keep it small.
We shouldn’t question why Bitcoin has had one of the biggest fallouts this year but look for reasons why the crypto market constantly falls. To deal with crypto is to deal with highly volatile financial assets. Bitcoin went from $64,000 to $37,000 in a month, and this doesn’t mean that the market bubble burst. This is not the first time it happens, nor will it be the last one, since it’s an item of constant speculation. It is the third time we have seen the burst of the crypto market bubble since it began. The fascinating thing is that the main reason why it collapsed every single time has been the same.
On May 12, Bitcoin, which represents over 40% of the cryptocurrency market in the world, collapsed 30%, reaching $30,000 per coin. Its lowest price since the beginning of the year. But since we live in a global economy, and it’s all connected, Bitcoin was not the only crypto to fall. Other currencies suffered a plunge, too; such was the case of Ethereum that dropped over 40%; Dogecoin and Binance about 30%. Bitcoin recovered a little bit by next Friday, reaching $37,000, still far from its highest-ever reached just a month before at $64,000. This exceptional growth is what allured a large number of professionals and inexpert speculators to make a quick profit. Those speculators get alarmed when awful news starts coming out, causing substantial market movements.
On top of that, on May 12, Tesla CEO Elon Musk made a statement that caused another Bitcoin drop of 12%. He retracted in public the commitment of his company to accept Bitcoin as a payment method, claiming to have concerns about the “carbon footprint caused by the crypto.
Yet again, the Bitcoin price dropped, although not as dramatically as before, at the beginning of August. It somehow managed to recover by thousands of dollars last week and even went over the $40,000 barrier that it hadn’t been able to surpass since the significant fallout. On August 2nd, the coin was quoted a little over $39,000 because of tremendous withdrawals from investors. That caused yet another drop, caused by the analysts who follow others’ behavior and trends. However, it is a price way higher when compared to the one registered in mid-July, when it was below $30,000 a coin. The fall was caused by prohibitions in various countries, which generated a lack of trust in the market.
Experts around the world have stated that Bitcoin’s golden days are still to come. The crypto has consecutively been rising for more than three consecutive weeks. It looks like it’s on its way to get the second successive month growing. After all, this has been the most significant spike since February when it was about to jump to historic highs. Experts are leaving most concerns aside for now. Instead, they’re setting bullish targets of price. What will the outcome be? It is yet to be seen; for sure, we’ll be hearing about this currency in the future.
When it comes to both the crypto and other markets, the terms bulls and bears or “bearish” and “bullish” are used a lot. However, the use of it usually depends on the experience. They indicate the tendency to go high or low of a certain asset or market.
These terms are used to describe the general sentiment. When we talk about a bullish tendency, it means the rise in the price of an asset is expected. On the other hand, the term bearish points to negative expectations of the price.
One theory is based on the way both animals approach their prey; while bulls attack by throwing their horns in an ascending movement, bears attack on the way down, starting from a higher position. Although, where these expressions come from is not clear.
Usually, traders care more about being able to do trading in both directions than whether an asset or market is optimistic or pessimistic, which indicates that neither concept is good or bad. It is more important for traders to make sure they are right in their assumption of something being bearish or bullish in order to profit on their trades. They base their conclusions on the hype, news or other factors. Traders might be assuming that the prices on a certain asset or market will go up or down to decide the position they’ll take to accomplish their goals and eventually sell it while obtaining a profit.
Many factors can influence a person’s view, such as opinions, events, and timeframes, still in the end each one must come to their own conclusion regarding what they think, and what’s most important, to have clear that the goal is not to have a bullish or bearish approach, but to make sure that whichever, it’s aligned with our goals.