Crypto Pirates

El Salvador took the plunge in September. According to one expert, three other countries could do the same in 2022.

El Salvador made history by making Bitcoin (BTC) legal tender within its borders in 2021.

Its authoritarian president, Nayib Bukele, tweeted this week that he expects two more countries to follow suit in 2022.

However, he is not the only one who believes this, with finance expert deVere Group chief Nigel Green agreeing with the eccentric Central American leader.

"I'd go even further than he did," Green said.

"I believe that three more countries will likely follow El Salvador's pioneering, future-focused lead into the digital age."

Bitcoin has the potential to replace the US dollar as a stable currency.

For decades, citizens in developing countries have used the US dollar as a stable currency, as opposed to local fiat, which can change dramatically in value overnight.

However, Green pointed out that this practise can have unintended consequences.

"Reliance on another country's currency also brings its own set of, often very costly, problems," he explained.

"A stronger US dollar, for example, will weigh on emerging-market economic prospects, given that developing countries have accumulated so much dollar-denominated debt in recent decades."

It's no surprise that low-income countries would consider adopting Bitcoin as a limited-supply international currency.

"By adopting cryptocurrency as legal tender, these countries instantly have a currency that isn't influenced by market conditions within their own economy, nor directly by the economy of just one other country," Green explained.

"Because Bitcoin operates on a global scale, it is influenced by broader, global economic changes."

Which countries are likely to make the leap in 2022?

Green named several candidates who could help Bitcoin achieve legal tender status in the coming months.

They are all in El Salvador's neighbourhood: Panama, Paraguay, Guatemala, and Honduras.

"Panama announced a bill to make cryptocurrency legal tender in the country shortly after El Salvador's adoption back in September," Green explained.

"Congressman Gabriel Silva also tweeted that this could lead to job creation in Panama and attract investment from other countries."

A bill to regulate cryptocurrency trading and mining was recently passed in Paraguay.

"Does this represent the first step towards making Bitcoin legal tender?"

Honduras and Guatemala, according to Green, are currently investigating central bank digital currencies.

"However, I believe they will eventually accept an existing cryptocurrency as legal tender, as El Salvador has."

Green believes that once the second and third countries follow El Salvador's lead, there will be a "snowball effect" for legal tender adoption around the world.

Bitcoin to reach $100,000?

Bukele also predicted that Bitcoin would reach $100,000 in 2022 in his English-language tweet. On Tuesday afternoon, Australian time, it was worth US$46,199.

He also predicted that Bitcoin would "become a major election issue" in the United States during the midterm elections later this year.

Many people in developing countries do not have bank accounts because they are wary of untrustworthy financial institutions.

Cryptocurrencies, according to Green, could help those economies "boost financial inclusion for individuals and businesses."

"I am confident that the young, daring President, Nayib Bukele, is correct in his prediction that other countries will accept Bitcoin as legal tender in 2022."

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In fact, the modern way of life necessitates spending a significant amount of time in the digital world. Almost everything a person does nowadays has an online equivalent, such as:

* Working;

* Studying;

* Communication;

* Financial operations.

When people celebrated the new millennium, reality changed dramatically from what it had been in the past. Could mediaeval people have imagined having all of their money on a single plastic card? You can even do without this tiny square these days, storing all costs in an online wallet. Furthermore, the variety of digital currencies available is now greater than ever, including:

* Bitcoin;

* Litecoin;

* Ethereum;

* USDT, etc.

Indeed, many people are optimistic about the impact of cryptocurrencies, and there are several reasons for this. However, it is also important to keep in mind the potential side effects of cryptocurrency. Let's dissect some contentious aspects of digital currencies!

The environmental impact

Without a doubt, the first point of contention raised by crypto opponents is climate change. Everyone has probably heard about such a problem through the media or at school. Regardless of how much attention it receives from the media, the disclosure is insufficient. For example, eco-activists have been fighting the oil and coal industries for decades, but the results have been almost imperceptible.

The crypto industry is in a similar situation. Unfortunately, this economic sector has become just as dangerous as the previously mentioned spheres. Just consider this: crypto mining consumes up to half of global energy consumption! Clearly, renewable energy is not a viable option for meeting such demands. As a result, miners take the easiest route and use electricity generated by coal or peat burning.

The main issue is a lack of centralisation and control in the crypto world. As a result, assigning blame for a massive carbon footprint to anyone is impossible. Regrettably, such a method only works with governments and corporations that are afraid of sanctions.

However, there is one weapon for combating dangerous crypto farms: negative media representation. When an influencer sells their tokens, the price may fall as a result of the domino effect! The same thing happens if a celebrity has a negative opinion about a cryptocurrency.

Unpredictability

Sure, unpredictability is a nightmare for anyone who works in the financial sector. Hours or even seconds can be critical depending on what a person does. The more unexpected factors that affect the situation, the more difficult it is to forecast.

Cryptocurrencies are undeniably one of the most volatile phenomena on the planet. The unusual nature of crypto is most likely the source of this issue's legs. Because people are still learning how to use it and make accurate predictions, errors and misunderstandings are unavoidable.

Indeed, such uncertainty frequently results in dangerous side effects. The more you invest in digital tokens, the riskier the deal becomes! Even experts face the possibility of going bankrupt overnight. Investors will be in trouble if a specific currency's demand falls precipitously for any reason. Just keep in mind that any digital coin's popularity can wane in the future.

Hacking

In your mind, what does a thief look like? You'd probably describe a stereotypical burglar wearing a mask and carrying a bag of cash behind their back. Modern robbers, on the other hand, have a distinct appearance. They are virtually indistinguishable as they work from their computers!

Whenever a large storage of value appears, there is always a long line of enthusiasts eager to get a piece of the action. This rule also applied to cryptocurrencies. Yes, hackers existed long before the first digital currencies. Soon after, cybercriminals shifted their focus and began looking for valuable tokens.

What do most hackers do? They are well-known as computer geeks who write code and create malicious viruses. A skill like this is useful for someone who wants to unlock someone else's crypto wallet. There are, however, several schemes for making money through cryptocurrency hacking:

* Secretly mining on a stranger's computer;

* Taking money directly from a cryptocurrency wallet;

* Sending a virus in order to sell antivirus software.

Significantly, as the crypto industry grows in popularity, so do the number of hackers. Fortunately, special services such as the FBI are on the lookout for them in order to protect users. Furthermore, some cyber criminals emerge from the shadows to become "white" hackers who test the security systems of businesses!

Increased crime rates

Another serious side effect of cryptocurrencies is an increase in a variety of crimes. Because crypto operations are completely anonymous, they allow for illegal transactions. The modern shadow economy's scales are truly terrifying. It's difficult to believe, but today there are more slaves than at any other time in human history! Human traffickers benefit greatly from decentralised payment systems.

Consider the international drug-dealing industry, which gladly employs cryptocurrency. Furthermore, with digital money, corruption becomes easier. Indeed, the crypto industry is not to blame for all of these heinous crimes. They exist with or without decentralised payment systems, but their lack of control makes crypto unpopular.

Scams

Both children and adults are aware that conversing with strangers can have unintended consequences. Unfortunately, many people disregard any warnings as soon as they see a profitable opportunity. In reality, they hook up with sly con artists who are well-versed in human psychology.

When it comes to scams, the crypto world is hardly an exception. A new Internet user may easily confuse a genuine deal with a bogus advertisement and incur losses. A bright-red pop-up banner, for example, that promises huge profits with minimal risk is most likely a lie. You should double-check the details of this transaction first!

Similarly, scammers advertise phoney cryptocurrency wallets only to leave you with empty pockets. Even if the advertisement mentions a safe place to store your tokens, you should conduct preliminary research. Scams happen everywhere, and cryptocurrencies aren't the source of all evil. However, the number of unpleasant cases is constantly increasing, so keep an eye out!

Conclusion

Overall, it is difficult to say whether the crypto industry has more positive or negative aspects. As beneficial as blockchain and tokens can be, new problems emerge on a regular basis. Because these side effects are of a different nature, they necessitate one-of-a-kind solutions from bright minds. Perhaps the negative impact will lessen in the future!

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In 2022, there will be opportunities for investors to purchase high-quality cryptocurrencies. But if you could only buy one, I'd go with this one.

After two years of significant growth in cryptocurrency popularity, there is a significant revolution underway. Speculation is no longer limited to investors. There are several high-potential projects with a plethora of growth opportunities. Finding a high-quality cryptocurrency to buy in 2022 is a wise choice if you're looking for a high-potential growth investment.

However, there are a few things you should know about cryptocurrencies before deciding to commit and invest your hard-earned money.

First and foremost, you should learn about the coin and the projects to which it provides exposure. Is it used to purchase goods as a digital currency, or as a token to invest in decentralised finance (DeFi) projects? It could even be used to purchase digital land in one of the many upcoming metaverse projects.

Determining what the coin or token does will aid in determining its worth. If the use cases it provides have real value or distinguish it from the thousands of other tokens on the market, it should have a lot of long-term potential.

With that in mind, here's one of the best cryptocurrencies to buy in 2022.

One of the best cryptocurrencies to buy and hold in 2022

All of the projects built on blockchains offer some of the best opportunities for investors today. New projects are being created on a daily basis because several of the most widely used blockchains are smart contract compatible.

Play-to-earn video games, NFTs, DeFi, and even popular metaverse projects are examples. As a result, each of these individual projects, as well as the blockchains on which they operate, has enormous growth potential.

Fantom, which has the native token FTM, appears to be the best investment for 2022 in my opinion.

One of the first and most important reasons Fantom has potential is that it is an Ethereum compatible blockchain, which means that projects built on Ethereum can also be built on Fantom. Furthermore, it means that investors can easily connect cryptocurrencies like stable coins from any Ethereum-compatible blockchain network to Fantom.

This ease of use is critical for attracting new users, and it incentivises developers to launch their projects on the network as well, making it one of the best cryptocurrencies to buy in 2022.

How to Calculate Fantom's Value

As more investors look to invest in DeFi projects, a blockchain like Fantom has a lot of promise. Other Ethereum-compatible chains, such as Polygon, Avalanche, and Binance Smart Chain, are all among the top 14 cryptocurrencies by market cap, with Polygon having the lowest market cap of the three, valued at approximately US$18 billion today.

Meanwhile, Fantom is the 28th most popular cryptocurrency, with a market cap of only US$7.5 billion, despite a 30 percent rally in the last seven days. The network, and thus its currency, are becoming increasingly popular. However, because it is still so cheap, it represents an incredible opportunity right now.

In fact, Fantom's market cap to total value locked ratio (one of the best ratios for determining a token's value) is quite low at 1.25. As a result, the token should continue to have a lot of upside, making it one of the best cryptocurrencies to buy in 2022.

In comparison, the market value to TVL ratios for Ethereum, Binance Smart Chain, Avalanche, and Polygon are 2.3 times, 5.4 times, 2.2 times, and 3.1 times, respectively. So, clearly, Fantom is the cheapest of the bunch, with a market cap-to-TVL ratio of just 1.25.

As a result, with all of these cryptocurrencies' potential and Fantom's low price, if I could only buy one token for 2022, Fantom would be my first choice.

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Tether froze more than $1 million in USDT in a private digital wallet last week, effectively rendering it unusable.

Etherscan, an Ethereum block explorer, revealed that the No. 1 stablecoin issuer froze the 1.09 million USDT on December 30.

A Tether spokesperson told The Block that the action was taken at the request of an unspecified regulator or law enforcement agency. While the company declined to comment on the specific case, it did say that by "freezing of addresses, Tether has been able to help recover funds stolen by hackers or are compromised."

The move highlights a major issue that many in the crypto community, particularly privacy advocates, see as a major issue with stablecoins

Stablecoins, unlike traditional cryptocurrencies such as bitcoin, can be frozen in the same way that funds in a bank account can.

It's one of the reasons proponents of decentralised finance advocate for the use of DeFi stablecoins like Maker's DAI, which are not controlled by a centralised authority that could freeze cryptocurrency.

Tether is not the only stablecoin provider who does this.

Grant Thornton, a top 10 global auditing firm, noted in its audit of USD Coin issuer Circle Internet Financial's cash reserves on Sept. 20 that it "has the ability to block individual USDC public blockchain addresses from sending and receiving USDC." This ability is known as 'blacklisting.'

When an address is blacklisted, it is no longer able to receive USDC, and all USDC controlled by that address is frozen and cannot be transferred on-chain. Individual USDC tokens cannot be blacklisted."

At the time of the audit, there were 100,000 blacklisted USDC tokens in circulation.

Binance USD, the third most valuable stablecoin, is not freezable, according to Binance CEO Changpeng "CZ" Zhao in a tweet on August 10, 2021, following the $612 million Poly Network hack.

"While we cannot freeze funds on blockchains, if those funds arrive on our Binance exchange, we will try to freeze them," he said. "As a result, we'll be doing a lot of blockchain analysis." Nothing is simple. We make an effort."

Helping the authorities

Freezing stablecoins may be controversial, but it is a significant benefit in the eyes of regulators and law enforcement agencies, who have been stepping up their efforts and capabilities in tracking down cryptocurrencies used in illegal activities ranging from ransomware to dark market drug sales and even terrorism funding.

You might be interested in: The Department of Justice Establishes a National Cryptocurrency Enforcement Team.

Tether CTO Paolo Ardoino made this point on Twitter last year, following the hacking of the Yearn.finance decentralised finance (DeFi) protocol in February.

Tether immediately froze 1.7 million USDC tokens. Ardoino defended the move on February 6, stating that USDC is a centralised stablecoin and that "among Tether duties is the responsibility of acting and collaborating with law enforcement and regulators regarding potential dangerous behaviour."

It's also sound political strategy. During the Senate Banking Committee's stablecoin hearing on December 14, Sen. Elizabeth Warren proposed prohibiting US banks from holding the cash assets used to back stablecoins and protect the dollar's peg, and she gave an open floor to a witness who called for an outright ban.

Many of the US-based exchanges attempting to stay on the good side of regulators, such as Coinbase, Kraken, Gemini, and FTX.US, routinely freeze funds in the same way that any bank or brokerage would. In fact, many non-US exchanges do so for reasons unrelated to regulators or law enforcement: they see it as supporting the crypto community and defending it against thieves and hackers.

At the same time, those exchanges make the case that they vigorously oppose unreasonable law enforcement and regulatory requests for customer information, with Coinbase Chief Legal Officer Paul Grewal saying in a transparency report published on December 15 that "we respect the key role of law enforcement and government agencies in pursuing bad actors who engage in prohibited activity or seek to abuse our platform."

Grewal, on the other hand, stated that "protecting our customers' financial privacy is a fundamental part of our commitment to being the most trusted place to engage with cryptocurrency."

His stance suggests a compelling reason why regulators would prefer to deal with stablecoin issuers. It's much easier to deal with a few stablecoin issuers than dozens of exchanges.

On the other hand, when companies like Tether and Circle freeze their stablecoins, it only prevents bad actors from profiting. When exchanges freeze the cryptocurrency in their wallets, the rightful owner can retrieve it.

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CRYPTOCURRENCIES are poised for another record-breaking year as risk-taking investors seek high returns.

The following are the top cryptocurrencies in January 2021.

Last year, cryptocurrency valuations reached all-time highs, aided by high-profile support and mainstream interest from investment banks.

The sometimes-surprising returns they can provide buyers entice brave and bullish investors looking for higher returns than savings accounts and stock markets.

However, cryptocurrencies are extremely volatile when compared to more stable, lower-return investments.

And, while there have been some huge price increases in the last year or so, there have also been some cliff-edge collapses.

Valuations can fluctuate wildly depending on sentiment, celebrity endorsement, or regulatory crackdowns - and there are far fewer investment fundamentals than there are for banking stocks or funds.

Because cryptocurrencies are unregulated, there is a much higher risk of being scammed.

It's critical to do your homework so you know who is behind the coins and what they're for.

The Financial Conduct Authority, a City of London watchdog, has warned that this is a high-risk investment in which investors should be prepared to lose all of their money.

There are two key figures in cryptocurrency.

There is the value of a single coin as well as its market capitalisation.

The market capitalisation is calculated by multiplying the price or value of a single coin by the quantity of coins in circulation.

As of January 4, the following cryptos were ranked by market capitalisation.

Bitcoin

Bitcoin is the first and largest cryptocurrency, with a market capitalisation of $887 billion and a market share of nearly 40%.

The cryptocurrency was created in 2009 by a mysterious founder named Satoshi Nakamoto, who wished to create a peer-to-peer online currency that could be discovered or mined online and used without the supervision of banks.

Last year, the price of a single Bitcoin reached record highs as cryptos boomed, aided by Elon Musk's support, interest from major financial institutions, and support from major tech finance firms such as PayPal.

Its value peaked at more than $68k per coin in August, but has since dropped to under $47k due to bans in China and India.

Ethereum

Ethereum, the second largest cryptocurrency, was launched in 2014 to compete with Bitcoin by providing more user-friendly blockchain technology that other cryptocurrencies can use.

It has a $458 billion market capitalisation and a single Ether costs $3,859.

Ethereum also reached new highs last year, but there have been significant drops as a result of regulatory restrictions.

Nonetheless, some analysts believe Ethereum will one day overtake Bitcoin.

Binance Coin

Binance Coin was launched in 2017 by Binance, the world's largest cryptocurrency exchange.

It was initially created to provide discounted trading fees to Binance users.

However, it can now be used to pay transaction fees on Binance as well as to purchase items on websites such as Crypto.com.

A single Binance Coin is currently worth $517, with a market capitalisation of $86.2 billion.

Tether

Tether is a cryptocurrency that is distinct from Bitcoin and Ethereum.

It is referred to as a stablecoin because its value is linked to regular "fiat" currency, such as the US dollar.

Users are said to be able to store, send, and receive digital tokens backed by their preferred currency.

Tether claims to keep its values stable by storing currency reserves in a bank.

It has a market capitalisation of $78.2 billion, and a single Tether or USDT is worth $1.

Solana

Solana is a new cryptocurrency that was launched in March 2020.

It has sparked investor interest and excitement by claiming that its blockchain technology is faster and more efficient than Ethereum's.

The cryptocurrency is worth $172 and has a market capitalisation of $53 billion.

Cardano

Charles Hoskinson, one of the eight co-founders of Bitcoin rival Ethereum, founded Cardano in 2017.

It aims to be more transparent by allowing its investors to have a say in how the cryptocurrency is run.

Cardano, which has a market capitalisation of $44.9 billion, reached its all-time high on May 17 when its US dollar conversion reached $2.3091.

The increase followed reports that its parent company, Input Output, had partnered with World Mobile Group, a blockchain-based mobile network.

Cardano has also benefited from celebrity endorsements.

Gene Simmons of the rock band Kiss backed it in March, tweeting that he'd spent $300,000 (£216,223) on it.

A single Cardano or ADA coin costs $1.34 at the moment.

US Coin

The USD Coin (USDC) is yet another stablecoin whose value is tied to the value of the US dollar.

Every unit of USDC purchased is backed up by $1 in reserves, which can be cash or short-term Treasury bonds.

Circle, a fintech firm, and the Coinbase cryptocurrency exchange launched the digital currency in 2018.

It recently surpassed XRP to take seventh place in the cryptocurrency market capitalisation rankings.

Its $42.68 billion market cap and $1 price make it one of the few major cryptos to have increased in value in recent months.

XRP

XRP is a type of digital currency that can be used to send money between individuals or banks through the Ripple network.

For example, if you need to send euros to someone who only accepts dollars, the Ripple network will convert them into XRP to expedite and lower the cost of the transaction.

It was founded in 2012 and currently has a market capitalisation of $39.8 billion.

A single XRP is now worth $0.836, down from a high of $1.84 in April 2021.

Luna

Luna, another recent riser in the crypto top 10, has recently surpassed popular cryptos such as Dogecoin and Shiba Inu to enter the big leagues.

It is the primary token used on Terra's blockchain technology, which was launched in 2019 to compete with Ethereum by offering a payments system that links cryptos to fiat money to keep values stable.

A Luna currently costs $88.3 and has a market capitalisation of $31.8 billion.

Polkadot

Polkadot is yet another new cryptocurrency on the market.

It only debuted in May 2020 and supports asset and token transfers across multiple blockchains.

A single Poladot or Dot now costs $29.55, down from a high of $54 in 2020.

Its current market capitalisation is $29.2 billion.

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The coin market appears to be heading for darker skies during the FOMC meeting. While retailers fret about the possibility of a crash, novices are shaking hands with the well-heeled traders. Which has become a frequent occurrence in the crypto town during periods of negative financial sentiment.

In the frenzy created by the FOMC meeting's FUD. Fear and greed indexes have slid further to the fear side, down to a degree of 29. As a result of digital assets crawling along a narrow bandwidth, the market charts have continued to bleed red. Meanwhile, El-Salvador President Nayib Bukele uses Bitcoin to make optimistic predictions about the year 2022.

Are Typhoon Winds Going To Devastate The Market?

The cryptocurrency universe is trembling in anticipation of the Federal Open Market Committee's meeting later this month. The meeting's presumed implications have left the space fearful, including a rate hike to combat inflation. The possibility of an interest rate hike would erode consumers' ability to borrow.

Subsequently, as less leveraged money enters the market, the market slows. While rising inflation rates are expected to benefit the crypto market, Since then, cryptos have been viewed as a hedge against inflation. The supercycle has left little room for the recovery of digital assets. The FOMC's next major meeting is scheduled for March, during which members will update economic projections.

Crypto assets falling below critical support levels and Wall Street liquidating stocks could pave the way for a crash. Retailers are repurchasing low-risk assets such as NFTs, stable coins, and metaverse projects. On the other hand, veterans are striking while the iron is hot, fearful that the crypto market will bear the brunt.

What Are Nayib Bukele's 2022 Predictions?

Nayib Bukele, President of El-Salvador, writes his optimistic predictions for 2022 on Bitcoin. Nayib Bukele predicts that Bitcoin will reach its long-held goal of $100,000 this year. Additionally, two more countries are expected to adopt Bitcoin as legal tender. Bitcoin is becoming a significant electoral issue in the United States. Bitcoin city construction, volcano bond oversubscription, and a surprise at the Bitcoin conference.

Collectively, the Federal Open Market Committee's meeting outcomes could potentially favour citizens. As individuals have been bearing the brunt of inflation and pandemics. Additionally, the authorities will consider the uproar surrounding the new variant of the virus. Hopefully, the space will emerge from the FUD's blues, as it did following the release of the governing authority's inflation figures.

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While the city has become known for its cryptocurrency advancements, other Florida counties, including Broward and Palm Beach, are exploring cryptocurrency opportunities.

For South Florida cryptocurrency enthusiasts, 2021 was an exciting year, as Miami established itself as a potential national capital for the industry.

The city hosted what was billed as the world's largest crypto conference, launched its own coin, appropriately named after the city, and welcomed an array of companies that relocated their headquarters or established outlier offices in Miami's Brickell Avenue financial district.

"There are really only two options for cities," Mayor Francis X. Suarez stated at a Bloomberg-sponsored event in Miami recently. "They can act as if it does not exist... or they can confront those realities and embrace the disruption and change."

It remains to be seen whether other South Florida cities and counties will follow Miami's lead in the coming year.

Despite or perhaps because of wild swings in the price of Bitcoin, the ground-breaking digital asset, the region's consumers have been clamouring for a piece of the action for several years.

According to the Pew Research Center, approximately 16% of the US population currently owns or previously owned cryptocurrencies. Six years ago, it was 1%. Crypto-investors have developed a preference for the asset due to its independence from banks and government regulators. Typically, coins are stored in virtual wallets, which include online services that mimic bank accounts.

In Broward and Palm Beach counties, an increasing number of local businesses, ranging from real estate and yacht brokerage firms to hair salons and charter jet companies, have begun accepting Bitcoin and other crypto currencies, and Bitcoin ATMs have sprouted up throughout the tri-county region.

However, local charities have expressed interest, Broward investment firms are bolstering their crypto credentials, and local governments are brainstorming ways to maximise the benefits of the new currency's characteristics.

Examining the Situation

There is less buzz and sizzle for cryptocurrency north of the Miami-Dade-Broward County line than there is in Miami. Local governments, on the other hand, are looking for ways to get involved. Additionally, private financial firms dealing in cryptocurrency are establishing offices in locations ranging from Fort Lauderdale to Palm Beach Gardens.

Although the Greater Fort Lauderdale Alliance, Broward County's economic development arm, does not have any crypto-related projects, Mayor Michael Udine is a supporter and serves as the county commission's liaison to the alliance this year.

He stated this week that he personally owns Bitcoin and Ethereum, the second-largest cryptocurrency by market capitalisation after Bitcoin.

In February 2021, while serving as vice mayor, Udine suggested to county commissioners that they consider allowing residents to pay tax bills with Bitcoin and developers to pay permit fees with Bitcoin.

"Nothing is concrete yet," he said Wednesday, adding that an exchange must be identified to help the ideas succeed. He is speaking with a few individuals.

Udine added that he is also interested in utilising crypto to enable "unbanked" consumers, or those without bank accounts, to access the financial system.

"Several different stakeholders have participated in conference calls to discuss banking the unbanked," he explained. They include FTX, a cryptocurrency exchange platform based in the Bahamas that enables users to trade cryptocurrencies, and OIC of South Florida, a nonprofit organisation that provides workforce training and education.

There is a requirement. In June, a senior executive and two economists from the Federal Reserve Bank of New York noted in a white paper that roughly one in every twenty American households lacks access to a bank-sponsored checking or savings account.

"Inadequate access to financial services forces the unbanked to rely on high-cost alternatives for transactional needs and can also make credit more difficult to obtain when households require it," the authors wrote. "This can have a detrimental effect on the financial health, educational opportunities, and welfare of unbanked households, exacerbating economic inequality."

Udine stated that it is premature to determine what can be done to assist county residents who lack access to basic financial services.

"We're looking to see if we can come up with something in the crypto space," he explained, adding that the solution could include a "crypto-type debit card" that could be replenished periodically.

Individual Investing

On the other hand, crypto is gaining traction among clients of local financial institutions.

Moss & Associates, a national construction management firm headquartered in Fort Lauderdale, announced the formation of Moss Family Office Worldwide this month. Moss Family Office Worldwide is an asset acquisition management firm that also includes a cryptocurrency investment arm called NXS Crypto Fund. The fund's clients are "accredited investors" with a nett worth of at least $1 million.

"There is such a high demand for accredited investors to have exposure to cryptocurrency," said Brent Campbell, founder and managing director of the fund. "This is a long-term proposition. You're witnessing adoption take place in front of your eyes, and people want access to it."

Campbell stated that Miami "took a strategic approach" that established a template for other cities to follow.

"Most cities must pay attention to what Miami is doing in order to remain competitive," he said. "I believe it will occur rapidly, and many of these city leaders will need to keep their finger on the pulse of what is happening."

Cryptocurrency trading is not limited to high nett worth individuals.

TradeStation Group, a long-standing online securities trading platform headquartered in Plantation, enables clients to independently buy, sell, and trade cryptocurrencies. The firm, which offers new customers $10 in cryptocurrency, announced its intention to go public via a merger with another firm. The company says the deal will help increase TradeStation's brand awareness among investors.

Virtu Financial, a New York-based electronic trading firm, established a Palm Beach Gardens office to house 55 employees in Palm Beach County. The CEO, Doug Cifu, is also a partner in the Florida Panthers hockey team.

The multibillion-dollar trading firm announced earlier this year that it had begun market making on major cryptocurrency exchanges. That is, they have aided exchanges by purchasing or selling assets during periods of liquidity scarcity.

Cryptocurrencies and Philanthropy

Nonprofit organisations are also entering the space, accepting cryptocurrency donations through intermediaries that screen donors and facilitate the transfer of funds.

Handy (Helping Abused Neglected Disadvantaged Youth), which has been assisting youth in the Fort Lauderdale area who have been displaced from their homes due to domestic violence, abuse, or abandonment since 1985, accepted its first cryptocurrency donation worth $4,700 this week, according to CEO Kirk Brown.

"It checks every box," Brown stated. "it's a financial contribution from an individual that goes through a rigors screening process to ensure the donation complies with tax laws and also protects the nonprofit."

This protection is provided by a platform called Giving Block, which has assisted nonprofits in accepting cryptocurrency donations since 2018 while also assisting donors in identifying charities that accept them. Additionally, the platform assists nonprofits in developing campaigns to increase their visibility among would-be donors, the majority of whom are younger.

Brown stated that there is a high level of interest among donors in the 18- to 45-year-old age range.

"I believe it is an untapped market for donors seeking a new way to make a social impact," Brown said.

"We have confidence in the checks and balances we have established," he explained. "This is the first time we have done so. It's about assuring our auditors are satisfied, our donor base is satisfied, and our recipients understand we will leave no stone unturned in our efforts to alleviate poverty."

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Vitalik Buterin, the inventor of Ethereum, has emerged from a self-imposed Twitter hibernation period, as he described it on his personal account. Buterin reviewed some of the ideas, proposals, and thoughts from the previous decade in his first post of 2022 to determine if he still holds the same position as when he first discussed them.

The inventor of Ethereum listed over ten ideas, many of which have sparked debate within the cryptocurrency community. Buterin kicked off his "mini-tweetstorm" with Bitcoin, a project in which he was an early participant.

In 2013, Buterin published an article discussing Bitcoin's potential to assist people affected by inflation and central bank money policies in countries such as Iran and Argentina. At the time, Ethereum's inventor stated that the cryptocurrency could provide respite, but only due to its "internationality," not due to its limited supply.

In that sense, he predicted that stablecoins and other assets with lower volatility than Bitcoin would gain traction in such locations. Now, he explained:

I did, in fact, travel to Argentina! My conclusion: in general, correct. Although cryptocurrency adoption is widespread, stablecoin adoption is also widespread; numerous businesses operate in USDT. Of course, if the USD itself begins to exhibit more problems, this could change.

Additionally, Buterin reexamined his stance on regulation. Simultaneously with his article on Bitcoin's supply, he discussed the cryptocurrency's ability to "resist governments" and circumvent regulations.

Buterin believes that in order for the crypto industry to "thrive," it must combine technological robustness, public legitimacy, and decentralisation. The alternative, a completely hostile environment, may cause Bitcoin and other cryptocurrencies to stagnate.

On the other hand, the inventor of Ethereum admitted that he was wrong in 2015 when he predicted when this cryptocurrency would be able to migrate to a Proof-of-Stake (PoS) model. At the time, Buterin anticipated that Ethereum would transition within six months or one year.

The migration ended up taking much longer than anticipated due to the 2020 deployment of the Beacon Chain, a proof-of-stake blockchain that will support Eth 2.0. Howevererin stated:

My 2015 projections for when we will have PoS and sharding. To be honest, these were extremely incorrect and worth laughing at (...)

How Ethereum and Its Developers Have Changed Over the Course of a Decade

In that regard, Buterin acknowledged that he underestimated the "complexity of software development" when he labelled his 2014 ideas "too complex." He continued:

Today, the Ethereum research team places a higher premium on simplicity – both in terms of the final design and the path to get there. Increased acceptance of pragmatic compromises.

In the same tone as the rest of his Twitter thread, in which Buterin demonstrated transparency and the ability to admit mistakes, he addressed the Ethereum blockchain's congestion and high transaction fees. Buterin famously stated in 2017 that the "internet of money" must be capable of processing inexpensive transactions.

Buterin asserts that this is still one of the blockchain's objectives. As a result, "we're spending a lot of time working on scalability."

Buterin also admitted that he was wrong about Bitcoin Cash and labelled it a failure. He also admitted to being "proud" of its proposals to build Uniswap, or more precisely, a network of decentralised exchanges, and numerous other use cases for Ethereum that "basically predicted DeFi."

In that sense, he summed up his decade of experience by highlighting his early "naivete" and lack of appreciation for the difficulties inherent in leading a large organisation with complex politics and cultures.

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If you invested Rs 1 lakh in bitcoin a year ago, it would now be worth nearly Rs 1.7 lakh, despite the fact that it has fallen nearly 30% from its all-time high. By contrast, the same sum invested in the sensex would have grown to approximately Rs 1.2 lakh.

Despite extreme volatility and a lack of regulation, an increasing number of Indians are investing in cryptocurrencies. However, the trend is not solely motivated by the prospect of high returns. Some turned to cryptocurrency to wager on blockchain technology, while others were drawn to well-designed trading apps. TOI spoke with young cryptocurrency investors to ascertain their objectives, strategies, and concerns as uncertainty continues into 2022.

Numerous backers focused on blockchain — a secure, decentralised ledger that enables crypto. "My family encountered several difficulties during the land transfer process. "Blockchain technology may be able to assist in resolving such ledger management issues," stated a Bengaluru-based app developer. The cryptocurrency investors TOI spoke with declined to be identified.

According to a law student, cryptocurrency was much more than an investment option for him. "I appreciate its emphasis on decentralisation. Blockchain technology has the potential to solve a plethora of issues related to duplication and transparency."

Investors are well aware that cryptocurrency will not be permitted for payment. For them, it's merely a wager on a futuristic technology that governments cannot afford to ignore. They are, however, cautious about their monetary exposure to cryptocurrency in case a ban is announced. Numerous respondents stated that they invest only what they can afford to lose. The Bengaluru-based app developer invested less than Rs 1 lakh, while another investor invested 5% of his portfolio in cryptocurrency.

For others, cryptocurrency is difficult to ignore due to its ease of use. "The technology that cryptocurrency exchanges have developed for UI/UX (user interface/user experience) makes transacting extremely simple for users. Even the largest banks are unable to simplify the information displayed on the trading screen when trading stocks," an investor explained.

A 26-year-old Gurgaon resident said he opened an account with a cryptocurrency exchange in May after seeing a television commercial. "Initially, it was purely for investment purposes. However, once I gained a better understanding of the technology underlying cryptocurrency, I increased my investment," he explained. The youngster, who works in his family business, has nearly tripled the value of his Rs 3 lakh investment in less than a year.

The majority of these investors follow a similar strategy: they buy on dips and sell only when absolutely necessary. However, cryptocurrency investors lack a mechanism for resolving disputes. "Banks continue to arbitrarily suspend services to cryptocurrency exchanges.

As a result, depositing and withdrawing funds is a nightmare," an investor explained. Due to a lack of regulation and concerns about a possible ban, some Indians have even shifted their investments to foreign cryptocurrency exchanges. Additionally, proponents of blockchain technology are concerned about traps such as 'shitcoins' — a term used to refer to cryptocurrencies that lack a defined function or innovative quality.

While the last two years have seen significant rallies, 2022 may be a difficult year for bitcoin. "Bitcoin's technical charts indicate a bearish trend in both the short and medium term," according to Rajendra Agarwal, a technical analysis trainer and founder of Autus Investment.

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Estonia has circulated a series of frequently asked questions (FAQs) in an attempt to allay concerns that its recently approved crypto legislation equates to a ban.

The stricter requirements are in response to the Financial Action Task Force's (FATF) recommendation that nations adopt stricter anti-money laundering standards for VASPs.

The legislative proposal seeks to regulate cryptocurrency entities, also known as virtual asset service providers (VASPs), in the same way that traditional financial institutions and payment platforms are regulated. It supplements Estonia's 2020 prohibition on the opening of anonymous virtual accounts by broadening the definition of VASP and subjecting VASPs to a stricter anti-money laundering standard.

Essentially, VASPs will be responsible for collecting and transmitting know-your-customer data and will be prohibited from opening anonymous accounts, a technique used to target noncustodial wallets. Additionally, they must obtain a VASP licence for 10,000 euros — an increase from the previous fee of 3,300 — and meet capital requirements, as well as pay a supervision fee of 1% of share capital and 0.035 percent of all virtual asset transactions. According to the FAQ, this is to deter dormant entities from registering.

Some expressed concern that the requirements amounted to a prohibition on owning cryptocurrency or using a noncustodial wallet. During the draught stage of the FATF's guidance, the industry expressed similar concerns, arguing that depending on how the recommendations are implemented, nations may use them to justify prohibiting decentralised finance or noncustodial entities. If this is the case, the DeFi space may become isolated, with no compliant method of transferring funds between centralised and decentralised entities.

Estonia's FAQ made it abundantly clear that it has no intention of imposing a ban. AML regulations do not apply to individuals or private wallets established without the assistance of a service provider. Citizens may hold crypto in any manner they wish and transact with any entity. The anti-anonymity provisions apply only to VASPs that are regulated by Estonia's Anti-Money Laundering Act.

"This means that the legislation contains no provisions prohibiting customers from owning or trading virtual assets and makes no requirement for customers to share their private keys to wallets," the government explained in its document. "Individuals may continue to use non-custodial wallets freely."

These wallets simply cannot be established via a VASP, as businesses are required to verify the identities of the account holders. In practise, Estonia prohibits businesses from offering non-custodial accounts. Additionally, it is unknown how Estonian VASPs will interact with non-custodial wallets, as they are incapable of effectively transmitting the user's identification information in a transaction with an anonymous wallet. The FAQ stated that transactions between VASPs and unhosted wallets are permitted "provided that each transaction is subjected to real-time risk analysis."

On Dec. 23, the Estonian government approved the proposed rules. It must now be approved by Parliament before being implemented in the first half of 2022.

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