Crypto Pirates

The long-awaited Bitcoin futures exchange-traded fund (ETF) began trading on the New York Stock Exchange on Tuesday, marking a watershed moment in cryptocurrency's ongoing rollout. The new ETF, dubbed the ProShares Bitcoin Strategy ETF (BITO), joins a small but growing group of funds that provide exposure to digital currency.

The new Bitcoin-linked fund enables traders to speculate on Bitcoin without directly purchasing cryptocurrency or opening an account with a cryptocurrency exchange. Investors can purchase and sell the fund in the same way they would any other stock on the exchange, which simplifies the process of getting started.

"By opening the doors to mainstream investors through Bitcoin ETFs, a large number of investors can participate in Bitcoin indirectly without actually holding the digital asset, alleviating many newcomers' concerns," says Peter Jensen, CEO of blockchain payments company RocketFuel Blockchain.

However, the road to more crypto exchange-traded funds appears to be rocky, according to experts, despite the fact that many fund companies would love a piece of the healthy fees associated with running an ETF based on the trendy asset. And this desire comes at a time when fees on traditional assets such as stocks have been reduced in response to increased competition for new assets.

Here are the few crypto ETFs that are currently available, as well as the funds that traders can anticipate in the future.

Bitcoin ETFs: The funds that are currently available

Bitcoin exchange-traded funds (ETFs) can be classified into two broad categories, depending on how the fund owns the cryptocurrency and provides exposure to investors:

—Physical exchange-traded funds (ETFs) that are backed by actual bitcoins

—ETFs that invest in crypto futures contracts that are traded on an exchange

"At the moment, the SEC is considering the majority of applications for physical ETFs, but there has been an increase in the number of applicants for futures ETFs over the last year or so," says Sui Chung, CEO of CF Benchmarks, a subsidiary of Kraken, a cryptocurrency exchange.

While this may seem like a minor point, the ability to buy and sell cryptocurrency via the ETF structure opens the asset up to new investors.

"Bitcoin ETFs enable mainstream institutional investors to access Bitcoin without having to worry about storing it in hot wallets, which are more vulnerable to hacks, or about the regulatory and fiscal implications associated with buying it directly on a decentralised cryptocurrency exchange," says Kay Khemani, managing director of Spectre.ai, a broker-less trading platform.

While the Securities and Exchange Commission (SEC) currently favours futures ETFs, including the new ProShares Bitcoin Strategy ETF, there are already a few publicly traded funds.

Existing digital asset funds

Two existing cryptocurrency funds are publicly traded, and both hold it directly.

Bitcoin Trust in Grayscale (GBTC)

The Grayscale Bitcoin Trust began in 2013 as a private investment with a six-month lockup period prohibiting investors from reselling it in the open market during that time. However, some investors have since sold their shares to the market, making the fund available to anyone. The fund charges an annual fee of 2% of assets under management.

The fund's sponsor announced in October that it is considering converting to a Bitcoin spot ETF. The fund would enable investors to track the price of Bitcoin through a familiar exchange-traded fund structure.

Bitwise ten-cryptocurrency index fund (BITW)

The Bitwise 10 Crypto Index Fund is a monthly rebalanced index of the ten largest cryptocurrencies by market capitalisation (excluding stablecoins and certain others). It began trading publicly in 2017 as a private investment for accredited investors. The fund charges an annual management fee of 2.5 percent of assets.

Bitcoin (which accounts for the majority of the fund's assets), Ethereum, Cardano, and Solana are the fund's largest holdings.

Additional cryptocurrency-related funds

At least one fund — the Volt Crypto Industry Revolution and Technology ETF (BTCR) — has circumvented the SEC's preferences and recently gained trading approval.

"The SEC approved Volt Equity's ETF, which circumvents current SEC restrictions by not investing directly in Bitcoin but rather tracking companies that have a majority of their assets in Bitcoin or generate revenue from Bitcoin-related activities," Jensen explains.

ETFs on blockchain technology

For the time being, direct investment in cryptocurrency via publicly traded funds is limited. However, those interested in riding the wave of blockchain technology — the technology that powers these digital currencies — have a few options for investing in funds that own companies riding the wave.

Amplify Transformational Data Sharing ETF (BLOK) is the largest blockchain ETF, with top holdings including Hut 8 Mining (HUT), Marathon Digital Holdings (MARA), and MicroStrategy (MSTR) as of October 2021.

Siren Nasdaq NexGen Economy ETF (BLCN) is another player in this space, with top holdings including Silvergate Capital (SI), Marathon Digital Holdings, and MicroStrategy.

The SEC and cryptocurrency exchange-traded funds

"The SEC has thus far refused to approve any ETFs that invest directly in Bitcoin, despite the fact that numerous asset managers have applied with a similar setup already visible in countries such as Germany, Canada, and Switzerland," Jensen explains.

So what is preventing the SEC from approving additional funds or those that directly own cryptocurrency? Experts cite a variety of reasons.

"Regulatory concerns about ETFs include their fee structures, uncertainty about Bitcoin's true intrinsic value, and, of course, the fact that the underlying asset's regulatory future remains uncertain," Khemani says.

Chris Kline, Bitcoin IRA's COO and co-founder, cites additional reasons.

"According to previous rulings, regulators are concerned about the ability of digital assets to be manipulated, issues of volatility, and a lack of surveillance," Kline explains.

"Previously, regulators were unsure of how cryptos worked," he explains. "As they gained familiarity with the space, the SEC began to grasp how these assets are stored, secured, and reconciled in a manner consistent with traditional finance."

However, another significant reason the SEC prefers futures ETFs over physical ETFs is pre-existing regulation, according to Chung.

"At the moment, the venues where the majority of cryptocurrency trading occurs — exchanges — are not legally required to follow existing capital market regulations, such as the Securities Exchange Act," he explains. "Of course, many platforms — Kraken included — have voluntarily chosen to adhere to these requirements, but the SEC retains reservations about approving a product from a market that is largely outside its jurisdiction."

"However, since Gary Gensler took over as SEC chairman earlier this year, he has expressed a preference for a futures ETF that will hold contracts from the Chicago Mercantile Exchange — a market already regulated by the CFTC's sister agency," Chung notes.

Which cryptocurrency exchange-traded funds (ETFs) are on the horizon?

While the SEC may be dragging its feet on cryptocurrency ETF approvals at the moment, experts believe this is largely temporary and point to already-existing crypto ETFs in Canada and Europe. When the regulatory framework is established, it may eventually result in the creation of a variety of new ETFs, even if some of the most exotic products remain unavailable in publicly traded funds.

"Once the regulatory kinks are worked out, ETFs will follow," Khemani predicts.

"In the case of cryptocurrency ETFs, we are unlikely to see anything other than Bitcoin and Ethereum in the short term, but we are likely to see variation in the future as the SEC begins to regulate the industry more aggressively," says Ben Weiss, CEO and co-founder of CoinFlip, a network of cryptocurrency ATMs.

And when can traders expect to see a slew of new crypto ETFs?

"Crypto ETFs are unavoidable," Kline asserts. "A product of this nature will eventually be developed because there is a market for it, but the timeline remains uncertain."

Increased regulation — which can help create safeguards for cryptocurrency — could also help bring a broader range of fund companies into the crypto space.

"While a number of crypto-specific ETFs have been proposed by firms such as Valkyrie and Kryptoin, a number of new applications have come from traditional players such as WisdomTree, Invesco, and ProShares," Chung notes.

While a clear regulatory framework and industry standards will aid in the development of a wave of crypto ETFs, do not expect the industry to securitize all crypto products.

"ETFs based on more exotic crypto creations such as unregulated decentralised trading exchanges, lenders, staking, or farming high-yield investment programmes are unlikely to be approved in the near future," Khemani says. He argues that these products' inherent security risks preclude them from being classified as traditional ETFs.

In conclusion

While traders await the SEC's approval of cryptocurrency exchange-traded funds, they are not restricted from trading the currencies directly. It's simple to get started with a cryptocurrency exchange like Binance, particularly if you're already familiar with online brokerages. By using a low-cost cryptocurrency exchange, you can avoid some of the hefty management fees levied by existing ETFs, which can be as high as 2% or 2.5 percent of your invested assets per year.

Thus, investors hoping for a robust market for cryptocurrency exchange-traded funds will have to wait until the SEC decides how to proceed.

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ACI Worldwide announced a partnership with RocketFuel Blockchain, a provider of Bitcoin and other cryptocurrencies-based payment solutions. ACI Secure eCommerce will integrate RocketFuel's solution into its platform, enabling merchants worldwide to accept cryptocurrency payments without incurring any processing fees.

RocketFuel's simple and efficient payment solution accepts Bitcoin and over 50 other cryptocurrencies. Additionally, the solution enables merchants and their customers to conduct bank transfers online and in-store via smart devices equipped with QR codes or near-field communication (NFC) capabilities.

ACI's Secure eCommerce solution with RocketFuel integration enables merchants to easily integrate new payment methods into the mobile checkout, providing customers with smarter payment options. The single integration will be updated as new cryptocurrencies are adopted by RocketFuel.

RocketFuel's newly launched "Zero Fees for Life" offer enables merchants to accept dozens of cryptocurrency payment methods from customers without incurring any processing fees for the duration of the transaction. This initiative, which is supported by ACI Secure eCommerce, provides merchants with a fast and secure payment gateway with no crypto volatility.

"As consumer adoption continues to grow and more merchants worldwide recognise the significant benefits of this payment type, cryptocurrency will revolutionise eCommerce and in-store shopping," said Peter Jensen, CEO of RocketFuel. "We are thrilled to partner with payments pioneer ACI Worldwide to expand merchant and customer choice. RocketFuel's 'Zero Fees for Life' pricing model differentiates it from other traditional payment methods that charge merchants."

"ACI Worldwide continues to innovate on behalf of our merchants and their customers," said Debbie Guerra, ACI Worldwide's head of the merchant segment. "With the addition of RocketFuel's cryptocurrency payment platform to ACI's Secure eCommerce solution, merchants will be able to attract new customers, increase conversion, increase retention, reduce costs, and further mitigate fraud. It's a win-win situation for everyone."

ACI Secure eCommerce is a comprehensive platform that combines a robust payment gateway, sophisticated real-time fraud prevention capabilities, and sophisticated business intelligence tools. It connects merchants to a vast global payments network and provides merchants with the assurance that their customers and transactions are protected from fraud.

Juniper Research recently recognised ACI Secure eCommerce with three awards for payment innovation, including a Platinum Award, the highest honour in the category of "Payments Innovation of the Year." Additionally, ACI's fraud management solution was recently granted full patent approval for its incremental learning technology.

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Here's how options traders would trade the "extreme volatility" predicted by Binance founder Changpeng Zhao for the cryptocurrency market over the next "few months."

Volatility is a complicated statistical measure that traders and investors frequently employ. When the term is used, those unfamiliar with it will almost certainly attribute analysts with some sort of special standing. However, as demonstrated by a recent comment by Changpeng Zhao, founder of the Binance exchange, the majority of the time, people are unaware of what volatility means.

This is not the first time CZ has erroneously assumed something about that subject. In May, CZ stated that volatility was "not unique to crypto," despite the fact that multiple sources, including Cointelegraph, indicated that no S&P 500 stock, with the exception of Tesla, had a yearly volatility of more than 70%.

What is volatility, then?

Volatility is a measure of how large daily price fluctuations are, and a higher level of volatility indicates that the price can change dramatically in either direction over time.

While this indicator may seem counterintuitive, lower volatility periods indicate a greater likelihood of explosive moves. This is due in part to the fact that realised volatility is a backward-looking indicator. Traders often over-leverage during quieter periods, which results in larger liquidations during sharp price moves.

Over the last two years, the data indicates an average 50-day volatility of 74%. Historically, the indicator has accelerated as it approaches 80 percent, but this is not a guarantee. The data from February and April 2017 provide a rebuttal to this thesis.

Volatility is ineffective at distinguishing bull and bear markets because it measures only absolute daily oscillations. Additionally, a period of low volatility is not indicative of an impending dump.

What if CZ is privy to information that we are not?

Given how well-connected the founder of the world's largest crypto exchange is, there's always a chance that CZ has some inside information, but if someone is that certain about an upcoming event, the odds are they'll know whether the impact is positive or negative. Once again, anticipating "significant volatility" for the "next couple of months" does not imply confidence in any direction.

Assume he was correct, and crypto volatility is on the verge of surpassing the 100% annual level. A strategy that fits this scenario and allows investors to profit from a strong move in either direction exists.

The reverse (short) iron butterfly option trading strategy is a low-risk, low-reward option trading strategy. It's critical to keep in mind that options have a fixed expiration date; thus, the price increase must occur during the specified period.

The bullish strategy proposed here is to sell 1.23 BTC contracts of the $52,000 put options while simultaneously selling 0.92 BTC contracts of the $80,000 call options. To complete the trade, purchase 1.15 contracts of $64,000 call options and 1.0 contract of $64,000 put options.

While this call option entitles the buyer to acquire an asset, it exposes the contract seller to potential negative exposure. To be completely protected against market fluctuations, an investor must deposit 0.174 BTC (approximately $11,000), which represents the investor's maximum loss.

Because the risk-reward ratio is ambiguous, the trader must be convinced.

To profit from this investment, Bitcoin's price must be below $54,400 on December 31, 2021 (a 14% decline) or above $75,500. (up 19 percent ). The theoretical risk-reward ratio is unfavourable, as the maximum payout is 0.056 BTC and the maximum possible loss is more than three times that amount.

However, if a trader is certain that volatility is imminent, a 20% move from $63,000 in 66 days appears feasible. Traders should keep in mind that the investor can reverse the operation prior to the options expiry date, preferably immediately following a significant Bitcoin price move. All that is required is to repurchase the two options that were sold and sell the other two that were previously purchased.

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According to the Activate Technology and Media 2022 Outlook, cryptocurrency and the metaverse are among the disruptive technologies that will drive innovation and growth in the coming years.

Additionally, the report identified gaming and esports, streaming, next-generation transport systems, and ecommerce as additional technologies to monitor over the next five years.

Globally, Activate anticipates that technology and media spending will surpass US$2 trillion in 2021 and reach US$2.5 trillion by 2025.

The report, now in its seventh year, predicts that cryptocurrencies will disrupt consumer finance and gaming, though numerous barriers remain to widespread adoption.

In Australia, cryptocurrency made headlines last week following the release of a Senate enquiry report calling for tax reform and the establishment of an exchange licensing scheme to facilitate business and investor transactions in digital assets.

In other predictions, gaming could emerge as an industry powerhouse, with the industry expected to grow at an annual rate of 8% and reach a value of more than US$220 billion in the next few years.

Additionally, significant gaming acquisitions are likely in 2022 as 'Big Tech' recognises the need to bolster its gaming strategy in order to remain competitive and will look to integrate gaming services into existing platforms.

With the continued growth of gaming, the sale of virtual goods and skins is expected to increase as well, serving as a significant driver of cryptocurrency and NFT innovation and proliferation.

Reform is required to fully realise the potential of cryptocurrency.

According to the report, one in every six people in the United States has already transacted with cryptocurrency for investment or speculation purposes.

While consumers have primarily used cryptocurrency for trading rather than payments or other cryptocurrency use cases, many of the cryptocurrency's promised use cases have encountered barriers to adoption.

Australia may not yet be in this position, but we have an opportunity to compete with the United States, Singapore, and Switzerland, according to associate professor Chris Berg, co-founder of RMIT University's Blockchain Innovation Hub.

Berg stated that policy changes are critical to establishing regulatory clarity in the industry and that regulating crypto assets presents an opportunity to attract jobs, investment, and innovation to the country. According to Berg, the Senate report is a "persuasive roadmap for how Australia can lead the global blockchain industry."

Bringing the hype surrounding the metaverse to a halt

The metaverse is one of the most hyped new technology trends right now, with Facebook expanding into this space and even considering rebranding to reflect its new priorities.

According to the Activate report, conversations – and claims about potential opportunities – are at an all-time high.

Locally, tech analyst Paul Budde has expressed reservations about the metaverse, arguing that we cannot be technology neutral and must address issues already evident in social media (disinformation, hyper-partisanship, algorithmic bias) before moving forwards with the creation of a virtual internet that will be far more intrusive into people's lives.

"As we gain a better understanding of the dangers associated with certain technologies, it is up to us to ensure that these advancements continue in the right direction," he said.

Despite the hype surrounding the metaverse, the report stated that the only companies that can succeed in it are gaming companies.

"The only path to the metaverse that is viable is via gaming platforms. Anyone betting on a metaverse platform other than gaming is "backing the wrong horse," the statement stated.

This means that the true potential exists where gaming meets the metaverse; specifically, where multi-platform gaming franchises dominate and gamers engage in non-gaming activities within games, which will serve as the metaverse's foundation.

According to Activate, gaming's massive engaged user base, the fact that gamers are already participating in some of these virtual events, and the existing technology requirements for developing metaverse applications (AR/VR integration and game mechanics) put it in the driver's seat for metaverse adoption.

Despite Facebook's grandiose plans, no single company will dominate the metaverse, and indeed, no single metaverse platform will exist.

One of the impediments to dominance and widespread adoption will be interoperability, which "will not be resolved anytime soon," the report stated, "although third-party applications (messaging, payments, and audio) will provide functionality and experiences across metaverse platforms."

The report concluded that the development of digital twins, or virtual replicas of physical objects and spaces, is well underway. While many of the metaverse's foundational elements are already in place, achieving a complete digital twin of the physical world will take many years.

Furthermore, NFTs will be critical in metaverse economies as a means of establishing ownership of digital goods.

"Purchases made in the physical world, such as a designer handbag, will include a digital twin for your virtual avatar to wear, while purchases made in the digital world will result in a tangible item being delivered to the physical world," the report stated.

Hyperscaling, edge computing, 5G, quantum computing, open source hardware and software, and public cloud services will drive innovation and usher in the "next wave of user experience and productivity improvements" across the enterprise, it said.

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What has just occurred? Not only Bitcoin miners and well-known figures such as Elon Musk have embraced cryptocurrencies; entire countries and global financial institutions have done the same. Mastercard announced today that it has partnered with digital wallet app Bakkt to bring "innovative" cryptocurrency-based financial services to banks and fintech companies worldwide.

In plain English, this means that banks could allow customers to use their platform to buy, hold, and trade various cryptos through this partnership. Customers could also use their currencies to purchase bank-branded cryptocurrency debit and credit cards.

All of this would be enabled by Bakkt's underlying wallet technology, though it's unclear how tightly integrated it will be in terms of UI/UX. Will banks direct users to download Bakkt's app, or will the technology be effectively white-labeled with their own branding and customised features? At the moment, it's difficult to say.

In any case, in addition to cryptocurrency trading and crypto cards, Mastercard's latest partnership enables financial institutions to use crypto loyalty solutions. Simply put, loyalty points could be earned and spent in cryptocurrency, rather than through the traditional, cash-based systems used by the majority of banks.

We cannot yet say whether this means end users will receive cryptocurrency directly into their wallets or will simply be able to spend points at locations that accept cryptocurrency (possibly exclusively).

While this news will not benefit everyone, particularly those who do not use Mastercard, it is yet another indication of how the world is increasingly moving towards widespread cryptocurrency adoption. It's clear that cryptocurrencies such as Bitcoin, Ethereum, and possibly even Dogecoin (as ridiculous as that notion is) are here to stay and will only grow in popularity over time, despite regulatory efforts in countries such as China to shut them down.

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Bitcoin is the industry's apparent superpower. That is without a doubt. Notably, this asset has the best price, brand recognition, and volume of trading.

Additionally, its share of the global cryptocurrency market capitalisation has gradually declined. Other cryptocurrencies are rapidly catching up, and one is unquestionably the runner-up. This blockchain, which accounts for slightly less than one-fifth of the total market capitalisation, is on the rise.

What distinguishes Ethereum is its ground-breaking blockchain. Ethereum's blockchain technology is distinct from that of Bitcoin and has served as the foundation for the launch of a large number of additional cryptocurrency tokens. Due to its efficiency, this sector is rapidly transforming the financial status quo.

Washington and the rest of the world's code developers are particularly drawn to this industry. It enables the creation and potential profit from new financial service platforms enabled by Ethereum. Such opportunities are priceless at a time when the economy is still recovering from Covid-19.

Ethereum Exploration

Bitcoin established the precedent for all subsequent cryptocurrencies by demonstrating that individuals could create a decentralised value system. Vitalik Buterin, then a 19-year-old Canadian, conceptualised the Ethereum blockchain's basic framework in 2013. The fundamental concept was to create a decentralised, programmable platform. Bitcoin was decentralised but fairly rigid in terms of platform flexibility.

As a result, Buterin published a whitepaper outlining his plans for a platform cryptocurrency.

Consider Ethereum to be the "Playstore" of cryptocurrency, a platform for developers to create decentralised applications.

The underlying cryptocurrency would be called Ether (ETH). Thus, ETH serves as a medium of exchange, similar to Bitcoin or the US Dollar, while the Ethereum blockchain serves as a development platform that has developed into a hub for cryptocurrency developers. Ether serves as the fuel (gas) for the Ethereum network.

Ether is the currency that is traded on cryptocurrency exchanges.

The more commerce that occurs on the Ethereum network, the more valuable Ether becomes.

Traders can exchange Ether for a variety of other cryptocurrencies and national currencies or use the Ethereum network's services.

Ether's value is increasing, and some people use it as a store of value in their digital wallets.

Ethereum's Programmability Distinguishes It

Ethereum's fundamental feature is its programmability. It encompasses both facets of cryptocurrency commerce.

There is a currency component, in which individuals can use digital money without the assistance of centralised payment providers.

Because the Ethereum blockchain is programmable, it can also be used to store a variety of other digital assets. As a result, Ethereum serves as a marketplace for financial services, games, and a variety of other exciting industries.

This network brings together developers of all stripes to create one-of-a-kind solutions.

The Ethereum blockchain has a variety of applications, including crypto lending, borrowing, trading, and other financial services that provide an alternative to traditional financial networks. These platforms facilitate access to finance and increase efficiency.

Decentralised finance's emergence has been a revelation. Ethereum's capabilities are limited only by the developers' imaginations. The more rapid the growth of cryptocurrency commerce, the more significant Ethereum will continue to prove.

Operators of Ethereum nodes contribute to the network's security. They are individuals who volunteer their computing power to assist in the confirmation of transactions and are compensated for their vital contributions.

The term "smart contracts" is frequently used in Ethereum circles.

Smart contracts are computer programmes that enable parties to create digital contracts without relying on one another for trust.

They operate similarly to escrow accounts, except that they are a digital programme that does not rely on a centralised trusted party.

Ethereum's decentralised applications are built on top of smart contracts (dApps). The applications are at the forefront of the digital finance revolution unfolding in front of our eyes. That is the essence of Ethereum, and it has the potential to continue climbing the cryptocurrency ladder.

Conclusion

It is critical to distinguish between the Ether price and the state of the Ethereum blockchain in general. Both have significantly improved over the last year.

However, the latter is the focal point of activity. Ethereum's value is not limited to its speculative value.

The value proposition is in its utility and capacity to serve as a springboard for thousands of financial applications.

Thus, while Ether may eventually supplant Bitcoin as the world's most valuable cryptocurrency, Ethereum is the undisputed leader in the broader blockchain space.

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Currency encourages accessibility, transparency, privacy, and free markets.

As a result of China's anti-free market mentality, the United States now has an economic opportunity in financial technology, which we must seize.

China stepped up its war on economic liberty in September, when it banned all cryptocurrency transactions. This is hardly surprising for one of the world's most authoritarian states. Since 2013, China has waged a campaign against cryptocurrency, ranging from prohibiting third-party vendors from accepting cryptocurrency payments to outright prohibiting bitcoin mining. China's opposition to cryptocurrency is unsurprising, as cryptocurrency represents the free and open pursuit of one's financial future, a fundamental American value.

Cryptocurrency promotes transparency, openness, privacy, and free markets. At its heart, cryptocurrency relies on blockchain technology to decentralise transaction validation, significantly reducing fraud. For instance, it's exceedingly difficult to determine the precise location of the $20 bill in your wallet once it departed the United States mint. However, through the use of blockchain technology, digital currencies can be tracked from their inception to your digital wallet.

As Congress and regulators consider establishing federal regulations for cryptocurrency, the question remains: Will we follow China's lead or will we promote American values by embracing this cutting-edge financial technology?

China accomplished two goals by declaring all activities involving virtual currencies to be illegal. To begin, China has demonstrated once again that it is unconcerned with the ideals upon which crypto is built. They are purely concerned with authoritarian rule. Second, China created enormous opportunities for the United States. America is at a crossroads, just as the previous crypto mining ban resulted in a boom in job creation and economic development. We can either take the reins of finance in the future or allow other countries to catch up with us.

Cryptocurrencies and blockchains are based on the fundamental American value of free enterprise. This technology has the potential to precipitate a financial revolution by integrating innovations into the global economic fabric. To foster access and economic activity, America must lead the world in innovation and foster a risk-taking environment. America will always defeat China's authoritarian, communist system if we adhere to our open market principles.

Regrettably, influential voices in the United States have indicated a willingness to follow the Chinese lead. In July, Federal Reserve Chairman Jerome Powell testified before the House Financial Services Committee that if the Fed created a Central Bank Digital Currency, "there would be no need for stablecoins or cryptocurrencies if there were a digital US currency." Thankfully, after I pressed him for clarification on September 30th, he retracted these comments. Similarly, Securities and Exchange Commission (SEC) Chairman Gary Gensler expressed support for a greater federal role in crypto regulation, but then reversed course after I asked him to confirm his position on October 5th.

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Bitcoin has consistently traded above the $60,000 support level in the past week, proving its resilience since breaching this level for the first time since April. The top coin is up 10 percent in the last 7 days, recently reaching an all-time high of $67,000.

Many analysts now predict better days ahead, particularly driven by widespread tales of the first Bitcoin futures ETF approval in the US.

At the current average price of $62,731, Bitcoin is less than $4,500 away from reclaiming a fresh all-time high as per data by Coingecko. The data also show Bitcoin’s uptrend has been consistent for the past three months, with its performance reaching over 37 percent in the last 30 days.

Bitcoin above $100,000 in November

Bitcoin took around two months to double its price to $60,000, having last traded at around $30,000 on July 23. However, Bitcoin will take an even shorter time to reach $120,000, due to the ongoing bullish trend, according to crypto analyst and trader InMortal.

“60k to 120k will be faster than 30k to 60k. That’s all, that’s the tweet.”

The prediction puts bitcoin at $20,000 above the highly anticipated $100,000 price level as early as November. Moreover, crypto author Glen Goodman believes that Bitcoin will peak at $150,000 in 2021. The downside is that at that top, the following price adjustment could correct all the way down to $20,000.

“This is the big #Bitcoin picture. *If* this repeating pattern continues, the top end for $BTC this cycle is ~150,000 and return to the bottom line would be ~$20,000.”

Bitcoin Bears are in Trouble

The price action has been merciless to Bitcoin bears, with massive liquidations reported across all major trading platforms in the past week. According to crypto analyst and Youtuber Benjamin Cowen, the bears are in huge trouble, with many getting restless as Bitcoin holds its own above $60,000. Cowen believes that even with slight price pullbacks, the trend is bullish and Bitcoin will soon trade above $67,000-$69,000.

“It’s only a matter of time before the bears have to throw in the towel because right now I think they’re on life support.”

In contrast to the celebration mood in the market for the Bitcoin ETF approval, Bloomberg’s Claire Ballantine thinks that Bitcoin ETFs have certain characteristics such as high premiums that make them a bad choice for investors.

“For investors, new Bitcoin ETFs might be more costly than purchasing cryptocurrency directly. Bitcoin Futures has underperformed 30 ppts since the start of Bitcoin Future in 2017.”

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The axiom "money is no object" has never seemed more accurate. In recent years, the evolution of cryptocurrency has radically altered the financial landscape. However, new studies indicate that an increasing number of students and teenagers are investing in this new currency without a thorough understanding of its potential benefits and risks.

A cryptocurrency (or crypto) is a type of digital currency that, like any other type of currency, can be used to purchase goods and services. What makes cryptocurrency unique is that it utilises a digital record of transactions that is then replicated and distributed across the entire network of computer systems that comprise the blockchain. In theory, this decentralised blockchain should make changing or cheating the system nearly impossible. This also means that cryptocurrency is not controlled or regulated by a central authority or administrators, whereas traditional currency is issued and backed by central banks.

Bitcoin is one of the most widely used cryptocurrencies. It has been extremely successful over the last year, with the price of bitcoin reaching over £45,000 in April and a current market capitalisation of over $850 billion. This success has increased the appeal of Bitcoin to both younger and more seasoned audiences.

According to recent surveys conducted by UniHomes and Save the Student, student interest in and investment in cryptocurrency has risen significantly over the last year. Around 6% of students currently invest in cryptocurrencies, and two-thirds have considered doing so.

The primary reason for this increase is the inability of students to maintain financial stability during the pandemic. The unstable job market, loss of parental earnings, and low-interest loans have all contributed to students seeking alternative sources of funding for university life. By leveraging celebrity endorsements and influencers, social media platforms such as Instagram and Tiktok have also highlighted the success of young people investing in cryptocurrency.

While more students are getting involved in cryptocurrency, many are not adequately assessing the risks and instead view cryptocurrencies as a quick, novel way to earn money. To begin, it is critical to comprehend the volatility of cryptocurrencies. Despite the fact that Bitcoin's value surpassed £45,000 in April, it lost nearly half of its value in the months that followed. Bitcoin's price fluctuates significantly in comparison to traditional currencies, which are backed by central banks and governments.

Additionally, cryptocurrency's digital nature and anonymity present a significant risk. Cryptography's proof of ownership is limited to the private "keys" used to authenticate transactions, as user names and locations are encrypted. This makes cryptocurrencies an attractive target for hackers, all the more so because many young people and small businesses are unaware of how to secure this new form of currency.

The future of cryptocurrency appears to be in doubt. On the one hand, as the future becomes more digital, many large brands, such as Microsoft, are beginning to accept bitcoin payments. El Salvador became the first country to accept Bitcoin as legal tender earlier this month, indicating that the currency is gaining traction. On the other hand, countries such as China and large cooperatives are tightening their restrictions and regulations on cryptocurrency usage.

Additionally, there are technological considerations. The processing power of new 'quantum' computers has the potential to underpin the blockchain and cryptocurrency's tight security. This could create difficulties in the near future, as 'quantum' computers are expected to become operational within the next five to ten years.

Finally, there are environmental concerns to address. The development of cryptocurrencies necessitates the use of massively parallel computing networks to perform a plethora of intensive calculations. These computations consume a tremendous amount of energy, and some experts believe Bitcoin networks consume as much as entire countries such as Argentina. That is why it is critical to educate the public about the environmental impact of cryptocurrency use.

Numerous financial authorities, including the FCA, are warning young people about the dangers of cryptocurrency investing. Individuals must be aware of the risk they are taking, whether their transactions are protected and regulated, and whether they are receiving advice from credible sources. This is the most effective way to increase the number of risk-averse investors.

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Bitcoin has now entered the mainstream.

With the launch of the world's first bitcoin futures exchange-traded fund (ETF), the world's leading cryptocurrency has seen a nice surge, recently surpassing an all-time high of nearly $65,000.

However, there may still be plenty of room to run.

According to top Wall Street strategist Thomas Lee, co-founder of Fundstrat Global Advisors, the price of bitcoin could reach $168,000 by year's end, a nearly 170 percent increase.

What is the reason?

Lee estimates that the new bitcoin ETF could attract a whopping $50 billion in initial coin offerings during its first year, acting as a key short-term driver of the token's price.

"We believe that Bitcoin demand will outstrip QQQ inflows," Lee wrote earlier this week in a note to investors.

He is referring to the Invesco QQQ Trust Series 1 ETF, which tracks the Nasdaq 100 Index and is currently the fifth-largest exchange-traded fund (ETF) in the United States.

If Lee is correct, the cryptocurrency bull market is still in its infancy.

Thus, here's how you can get a piece of the action — even if you only have a small amount of spare change to begin with.

ProShares Bitcoin Strategy Exchange-Traded Fund (BITO)

This is the ETF that is garnering all of the attention.

The ProShares Bitcoin Strategy ETF does not directly invest in bitcoin. Rather than that, the fund invests in bitcoin futures contracts on the Chicago Mercantile Exchange.

BITO launched on Oct. 19 with a $20 million seed round. By day's end, it had gained 4.8 percent and amassed over $570 million in assets.

On Wednesday, the price of bitcoin surpassed $65,000 for the first time, while BITO gained another 3%.

Investing in ETFs is as straightforward as purchasing a stock. They are traded on major stock exchanges and fluctuate in price throughout the day.

However, you can also invest directly in Bitcoin. Nowadays, certain investing apps allow you to purchase cryptocurrencies and exchange-traded funds (ETFs) commission-free.

Bitcoin investments

If you're not interested in direct exposure, consider investing in companies that have a significant exposure to the cryptocurrency market.

Tesla, for example, according to CEO Elon Musk's Twitter account, owns close to 42,000 bitcoins. Tesla stock tends to move in lockstep with bitcoin.

PayPal is another cryptocurrency to consider. The company launched a service in October that allowed users to buy, sell, and hold cryptocurrencies in the United States. It launched a similar product in the United Kingdom in late August.

And then there's Coinbase, which operates the country's largest cryptocurrency exchange. At the end of Q2, it had 8.8 million retail monthly transacting users.

To be sure, these are not inexpensive stocks. Tesla is currently trading at around $866, PayPal is trading at $255, and Coinbase is trading at over $300, owing to the recent rally in cryptocurrencies.

However, you can participate in these bitcoin plays by using a popular stock trading app that allows you to purchase fractions of shares with any amount of money.

Purchase bitcoins directly

While there is considerable excitement surrounding the launch of new bitcoin exchange-traded funds, don't overlook the simplest way to invest in cryptocurrencies: directly purchasing the tokens.

Things are volatile in the cryptocurrency world, but bulls like Lee believe that bitcoin's supply and demand have reached a new equilibrium in the range of $168,000.

Many cryptocurrency exchanges now charge up to 4% in commission fees just to buy and sell cryptocurrency, but some investing apps charge 0%.

Additionally, there is no requirement to purchase an entire coin. You can begin with as little as one dollar.

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