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Massachusetts Senator Forwards Bill Aimed at Forcing Crypto Miners to Report Greenhouse Gas Emissions

Massachusetts Senator Forwards Bill Aimed at Forcing Crypto Miners to Report Greenhouse Gas EmissionsOn Dec. 8, 2022, three Democratic politicians from Massachusetts, Oregon, and California revealed legislation aimed at combatting “energy-intensive” cryptocurrency mining operations. The bill introduced by senator Ed Markey (D-MA) alleges that crypto mining “strains the grid” and the industry “undermines U.S. climate goals.” 3 U.S. Bureaucrats Believe Crypto Miners Need to Report Carbon Emissions and […]

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Here’s What’s Next for Dogecoin, Binance Coin, Polygon and One Ethereum Rival, According to Top Crypto Analyst

Here’s What’s Next for Dogecoin, Binance Coin, Polygon and One Ethereum Rival, According to Top Crypto Analyst

A closely followed crypto strategist is analyzing four popular altcoins amid low volatility conditions in the market. Starting with meme asset Dogecoin (DOGE), pseudonymous trader Altcoin Sherpa tells his 10,700 YouTube subscribers that the eighth-largest crypto asset by market cap is currently holding a key support level. According to Altcoin Sherpa, Dogecoin’s current support level […]

The post Here’s What’s Next for Dogecoin, Binance Coin, Polygon and One Ethereum Rival, According to Top Crypto Analyst appeared first on The Daily Hodl.

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Paraguayan Cryptocurrency Law Shelved After Presidential Veto

Paraguayan Cryptocurrency Law Shelved After Presidential VetoThe cryptocurrency and mining law that the Paraguayan Congress passed in June was finally shelved on Dec. 5. The document, which sought to bring order to crypto mining and exchange activities in Paraguay, was ultimately dropped after failing to obtain the votes needed to reject the presidential veto it received. Paraguayan Crypto Law Dropped After […]

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Bitcoin price targets stretch to $19K as BTC jumps 4% from daily lows

Bitcoin retains $17,200 after an overnight squeeze takes BTC price action to within reach of one-month highs.

Bitcoin (BTC) stayed higher after a $17,000 liquidity grab on Dec. 9 as traders targeted further upside.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin attempts new monthly high

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD cooling volatility once more after hitting $17,300 on Bitstamp.

The pair had begun by taking liquidity at the Dec. 8 Wall Street open, this snowballing to see it challenge one-month highs from Dec. 5.

For those already betting on upward continuation, the move came as little surprise, with the coast still clear to add to the gains.

“The move to 18-19k $BTC continues,” popular trader Credible Crypto summarized.

A previous tweet from Dec. 7 explained the rationale, with invalidation set at $16,000 support.

“Lows cleaned up and as if on cue Binance apes showing up to support the mid 16k's,” part of accompanying comments read.

“Maybe one more push into 16.4-16.5k and then expecting a reversal back up and continuation to 18-19k targets.”
BTC/USD annotated chart. Source: Credible Crypto/ Twitter

Fellow trader Cheds meanwhile eyed potential continuation of volatility, with BTC/USD tagging its upper Bollinger band on 4-hour timeframes.

At the time of writing, 4-hour candles remained near the upper band, with both still expanding in a classic prelude to increased volatility.

BTC/USD 4-hour candle chart (Bitstamp) with Bollinger bands. Source: TradingView

“Expecting continuation for Bitcoin as long as we stay above $17K,” Michaël van de Poppe, founder and CEO of trading firm Eight, added, likening the overnight move to the breakout from the end of November.

Liquidations fuel BTC price run-up

Further analysis of overnight BTC price action highlighted increased liquidations of short positions.

Related: Bitcoin 2022 bear market ‘usual’ despite key trend line loss — Analyst

In a sign of the extent to which market participants assumed further downside would enter, short liquidations on BTC totaled $7 million in a single hour on Dec. 8, data from Coinglass shows. Altcoin short liquidations added another $11 million to the tally.

"Liquidations have been relatively small since the early November crash but short liquidations helped fuel that recent move," analytics resource On-Chain College confirmed.

BTC liquidations chart. Source: Coinglass

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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What Paul Krugman gets wrong about crypto

Cryptocurrency has evolved over the last decade, but Krugman is still hung up on Bitcoin's 2008 white paper.

In mid-November, as crypto markets reeled in the aftermath of FTX’s meltdown, Nobel Prize-winning economist Paul Krugman made use of his New York Times column to disparage crypto assets — again. Despite his unquestionable academic credentials, Krugman reiterated a common misunderstanding in his attempt to understand crypto assets — by conflating Bitcoin (BTC) with other cryptocurrencies.

Despite being the oldest, most valuable and most well-known member of this emerging class of digital assets, Bitcoin has a unique use case that differs widely from all others. Therefore, in order to understand this asset class as a whole, it would make more sense to choose as your starting point an asset with more tangible utility. Filecoin, for instance, provides storage for digital files in a similar vein to Google Drive or Dropbox, but in a decentralized manner. This network allows users with surplus storage to rent that capacity to other users in exchange for a fee. This fee is paid with the network's native token, also called Filecoin. This example is far more representative of most crypto assets: a network that provides financial incentives for services in a decentralized manner, with added efficiency and reduced costs as a result of its lack of intermediaries and central counterparties. Bitcoin, however, is different.

But what exactly is Bitcoin? This seems to be another blind spot in Paul Krugman’s comprehension. Bitcoin has evolved over time, both in regards to its technology, with updates and improvements to its functionalities, and its most prominent investment thesis. Krugman, according to his own column, perceives Bitcoin (and, it goes without saying, other crypto assets) as a means of payment. That was, in fact, the intended purpose disclosed in the white paper that launched Bitcoin in 2008, remaining so in the years immediately following its publication.

Related: Crypto’s downturn is about more than the macro environment

However, this thesis has evolved over time. Most notably, in 2017, when a great debate arose within the Bitcoin community over whether to prioritize its functionality as a means of payment or its characteristics as a store of value. The will of the store of value proponents prevailed, and the dissidents created Bitcoin Cash. Since then, the predominant consensus is that Bitcoin should strive to be a substitute for gold, not fiduciary currencies — with the added benefits of greater portability and resistance to seizure.

In light of these characteristics, Bitcoin has become greatly sought after in extreme situations — such as the war in Ukraine and Venezuela’s hyperinflationary crisis — by ordinary people rather than criminals, as Krugman wrongly suggests. Evidently, Bitcoin has a long way to go before it effectively establishes itself as`a true store of value — the first step of which would be achieving greater price stability. Additionally, there are other use cases under development. The needed scalability improvements, which would allow it to flourish as a means of payment, have been assigned to the so-called layer-2 solutions, such as the Lightning Network. One of Bitcoin’s most recent updates implemented in September allowed for the creation of tokens within its network. Crypto has continued to evolve, but Krugman is still hung up on the 2008 white paper. The eventual failure of Bitcoin as a means of payment would not mean the end of Bitcoin itself, much less the end of all crypto assets.

Underpinned by this misunderstanding about the general nature of crypto assets and, in particular, of Bitcoin, Krugman arrives at conclusions that, despite being coherent within themselves, are completely mistaken, such as, for instance, his argument that the crypto industry would not survive increased levels of regulation. In 1998, when discussing a comparable topic, Krugman wrongly stated: “By 2005, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.” His bias against crypto assets may lead to predictions as inaccurate as his now-infamous quote about the future impact of the internet.

Related: From the NY Times to WaPo, the media is fawning over Bankman-Fried

Well-designed regulation for companies that provide services associated with crypto assets is welcomed by the vast majority of industry participants and is actually perceived as a development that would foster the confidence among investors needed to propel this technology toward mass adoption. Furthermore, many of the services offered by these companies are of a financial nature and, as the successive events that have occurred this year have shown us, contagion effects exist. This in itself justifies the need for greater regulation. Just as Krugman stated in the first line of his op-ed, “recent events have made clear the need to regulate crypto.” He was correct on that point.

It's likely that the crisis created by FTX will spur regulators to expedite their efforts around the world and, consequently, help to consolidate crypto assets and blockchain technology. Just as Krugman’s misguided predictions haven’t meant the demise of his reputation, this crisis is not the end game for crypto.

João Marco Braga da Cunha is the portfolio manager at Hashdex. He obtained a master of science in economics from Fundação Getulio Vargas before obtaining a doctorate in electrical and electronics engineering from the Pontifical Catholic University of Rio de Janeiro.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Charles Hoskinson Outlines New Privacy Protocol Coming to Cardano (ADA) Ecosystem

Charles Hoskinson Outlines New Privacy Protocol Coming to Cardano (ADA) Ecosystem

Cardano (ADA) co-founder Charles Hoskinson is outlining the features of a new privacy-focused protocol coming to the smart contract platform’s ecosystem. In a new interview on Corey Casta’s Crypto Coins YouTube channel, Hoskinson says that ADA’s upcoming privacy protocol Midnight, which was announced last month, aims to create a confidentiality network of smart contracts, much […]

The post Charles Hoskinson Outlines New Privacy Protocol Coming to Cardano (ADA) Ecosystem appeared first on The Daily Hodl.

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On-Chain Analyst Willy Woo Says One Catalyst Will Draw High Net Worth Investors to Crypto

On-Chain Analyst Willy Woo Says One Catalyst Will Draw High Net Worth Investors to Crypto

Leading on-chain analyst Willy Woo is expressing confidence that the collapse of the FTX crypto exchange won’t dissuade traditional finance investors from putting their money in Bitcoin (BTC) and other digital assets. Woo tells his 1 million Twitter followers that high net-worth investors who don’t face regulatory restrictions have spotted an entry opportunity despite the […]

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Billionaire Tim Draper Says Bitcoin (BTC) Will Make El Salvador One of the Richest Nations on Earth

Billionaire Tim Draper Says Bitcoin (BTC) Will Make El Salvador One of the Richest Nations on Earth

Venture capitalist Tim Draper says Bitcoin (BTC) will likely transform El Salvador from one of the poorest countries in the world to one of the richest. In a new interview with popular crypto bull Anthony Pompliano, the billionaire predicts that the decision by El Salvador President Nayib Bukele to invest in the king crypto and […]

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Crypto Analyst Who Nailed 2018 Bitcoin Bottom Forecasts Major Crypto Move – Here’s His Outlook

Crypto Analyst Who Nailed 2018 Bitcoin Bottom Forecasts Major Crypto Move – Here’s His Outlook

A widely followed crypto strategist that correctly called Bitcoin’s (BTC) bottom in 2018 is making a major prediction for the king crypto. Pseudonymous crypto trader SmartContracter tells his 216,500 Twitter followers that he believes the top crypto asset by market cap should find its bear market bottom within the next six months. According to the […]

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Major Grayscale digital currency funds are trading at 34% to 69% discount to NAV

The firm manages more than $14.7 billion in digital assets through its OTC investment vehicles.

According to statistics sourced from data aggregator YCharts, seven digital currency funds issued by asset manager Grayscale Investments are currently at a discount of 34% to 69% to their net asset value, or NAV. Holdings tracked in the analysis include the Grayscale Bitcoin Trust; Ethereum Trust, Ethereum Classic Trust, Litecoin Trust, ZCash Trust, Horizen Trust, Stellar Lumens Trust, and Livepeer Trust.

All of the funds track the performance of their namesake cryptocurrencies, with the Grayscale Stellar Lumens Trust having the lowest discount to NAV at 34% and the Grayscale Ethereum Classic Trust having the highest discount to NAV at 69%.

At the time of publication, the average discount to NAV shared by funds in the group stands at 50%. This is close to the discount value of the Grayscale Bitcoin Trust (GBTC), the largest holding with $10.6 billion in digital assets under management but only $5.59 billion in shares' net liquidation value. Meanwhile, the Grayscale Ethereum Trust, which holds $3.75 billion in Ether (ETH), is also trading at a discount of 50%.

Related: GBTC 'elevator to hell' sees Bitcoin spot price approach 100% premium

Grayscale's investment vehicles have not been approved by the U.S. Securities and Exchange Commission (SEC) as exchange-traded funds (ETF) and thus trade over-the-counter (OTC). Previously, its funds such as GBTC traded at a premium during the crypto bull market due to heightened investor demand. 

However, a series of setbacks appeared to have inversed the investor sentiment on its investment vehicles. First, the SEC rejected the firm's application to list GBTC as an ETF on June 29, citing that the proposal failed to demonstrate how it was "designed to prevent fraudulent and manipulative acts and practices." Grayscale responded with a lawsuit against the SEC that is ongoing. The firm's legal officer estimated that the litigation could take up to two years. 

Second, Grayscale's parent Digital Currency Group has been hit with insolvency rumors amidst the crypto winter, especially after its subsidiary Genesis Global paused withdrawals on Nov. 16, citing "unprecedented market turmoil" related to the collapse of troubled cryptocurrency exchange FTX. 

Finally, Grayscale stopped short of a full on-chain disclosure, citing security concerns, in response to users' inquiry for a proof-of-reserves audit. The firm instead shared a letter from Coinbase Custody attesting the value of its holdings. All together, Grayscale currently has $14.7 billion worth of digital currencies under management in its OTC funds. 

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