Tag: ethereum blockchain

Is Ethereum Still A Good Investment?

Posted on by Augustine Ojeh

Ethereum is the largest smart contracts platform in the market. To understand how big Ethereum is, consider that most of the tokens in the market today are ERC-20 tokens.

If you have been looking to invest in Ethereum but are unsure whether it is a good investment, then you have come to the right place. Here, we will give you a detailed answer to the question, 

Ethereum Good For 2023?

To answer this question, we look at how Ethereum has performed over the years. We also give you a hint on the best cryptocurrency broker where to invest in Ethereum today.

When it comes to whether Ethereum is a good cryptocurrency investment, it is essential to consider several different factors. One of such factor is it’s performance over time, which can provide insight into how ETH may perform in the future.

However, it is also essential to look at the real-world uses of Ethereum. This will help better assess how its value may change over time. For example, the growing adoption of decentralized applications has made ETH an attractive option for various industries.

Overall, considering all of these factors together provides valuable insight. One we need to determine whether or not Ethereum is an excellent cryptocurrency to buy in 2023 or not. 

However, while there are no guarantees when it comes to investing, by doing your research and considering all potential risks and rewards, you can be better equipped to make smart investment decisions regarding ETH and other cryptocurrencies.

Also, while there are many different blockchain networks, ETH is widely regarded as one of the most advanced. It is also described as a very well-established option. Furthermore, not only does Ethereum allow for easy cryptocurrency payments, it is also perfect for developing smart contracts. That also includes distributed applications.

What About Ethereum And NFTs

The Blockchain is currently leading the way in developing smart contracts. This makes it the blockchain network of choice for top NFTs and some DeFi tokens in the market.

But with that said, is Ethereum a good cryptocurrency investment in 2023? The answer is yes. Ethereum is one of the most highly regarded and widely used blockchain platforms. Furthermore, not only is Ethereum widely adopted, but it can also adapt to the growing demand. This makes it a truly robust network that can stand the test of time.

The Merge Is A Good Thing

Meanwhile, Ethereum’s ability to adapt to growing demand is evident in the recent shift to Ethereum 2.0. This new version of the platform represents a major step forward in terms of scalability and speed. As a result, it allows more transactions per second than ever before while minimizing fees and latency.

With these enhancements, Ethereum will certainly provide an unparalleled level of utility for users worldwide well into the future. So, whether you’re trading ETH on exchanges or building blockchain applications, This blockchain network is a solid choice. Especially for anyone looking for long-term value and flexibility in their cryptocurrency portfolio.

However, before you buy a cryptocurrency, it is essential to look at its past price action. This will give you an idea of how its price moves. Consequently, you get an idea of whether it is a good investment going into the future. On this front, Ethereum is a pretty good cryptocurrency to invest in in 2023.

The current second largest cryptocurrency entered the market in July 2015, trading at $0.75. After multiple highs and lows after launch, the digital currency hit an all-time high of $1360 in January 2018. However, it collapsed in the bear market that followed. Eventually, by the end of 2018, it was trading at under $100.

The Cryptocurrency Market Is Bracing For A Feds Tsunami

Posted on by Augustine Ojeh

Bitcoin and cryptocurrency prices have crashed this year in the face of the Federal Reserve’s “brutal” interest rate hikes as it battles against soaring inflation.

The bitcoin price has plunged under $20,000 per bitcoin. This is down from almost $70,000 late last year. 

Meanwhile, ethereum and other top ten cryptocurrencies BNBBNB, XRPXRP, solana, cardano and dogecoin have also crashed. This is happening despite some game-changing developments such as ‘The Merge‘.

The Reality Of The Cryptocurrency Market

Currently, following a stronger-than-expected U.S. jobs report this week, things are shaky. The report sent the bitcoin price sharply lower. 

Consequently, all eyes have turned to the latest consumer price index (CPI) report, due on Thursday. Some think it will “decide the fate of this market.”

“CPI next week will decide the fate of this market,” one influential trading analyst posted to Twitter. He did this after data showed U.S. employers added 263,000 jobs in September. This was down from 315,000 in August but higher than an anticipated 255,000.

“With this jobs report it seems clear we are on course for another significant hike from the Fed. I say this considering the market pricing in a 75 [basis point] rise in interest rates at its next meeting.” The above statement was by Paul Craig, portfolio manager at Quilter Investors, told Coindesk.

Consumer Price Index

September CPI is predicted to have slowed slightly from the month before, forecast to drop to 8.1% year-on-year. A larger-than-expected slow down in price rises could mean the Fed eases up on its program of interest rate hikes.

The last U.S. CPI reading of 8.3% showed prices were still climbing. Prices climbed despite the Fed embarking on a series of historic interest rate hikes this year. This led to torpedoing stock markets and cryptocurrency prices.

“Worries are firing in from all fronts following the latest robust snapshot on the U.S. labour market.” The above comment was by Susannah Streeter, senior investment and markets analyst at brokerage Hargreaves Lansdown. 

“Investors are simultaneously fretting that the fall in the pace of hirings indicates a slowing economy. However, also that the better than expected data shows that the jobs market hasn’t slowed enough to stop the Fed. Especially from hiking rates aggressively.”

Cryptocurrency Losses So Far

The bitcoin and crypto market, after touching $3 trillion last year, has lost a staggering $2 trillion. This happened in under 12 months in what’s been branded the latest crypto winter. 

The crypto market has previously spun on cycles of boom and bust with the last crypto winter lasting through 2018 until late 2020. 

This week, one crypto founder predicted how long this latest crypto winter could last.

“We will need to see some consistent economic slowing figures before the Fed-pivot trade is realistically in play.” The above statement by William Marsters, senior sales trader at Saxo, said in an emailed note. “CPI numbers and FOMC minutes are out next week which will continue to build the picture for the outlook.”

Expectations had built this week. Expectations that the Federal Reserve could be about to swing dovish in its flight against inflation. Especially with one closely-watched analyst predicting the price of bitcoin, it could be about to “outperform most major assets.”

However, Minneapolis Fed president Neel Kashkari said this week that the central bank has “more work to do.”

“Until I see some evidence that underlying inflation has solidly peaked. Until there are signs of it heading back down, I’m not ready to declare a pause,” Kashkari said.

Japan’s Crypto Regulator (JVCEA), Warns Exchanges

Posted on by Augustine Ojeh

The Financial Services Agency (FSA), Japan’s crypto market regulator, has issued a renewed warning to the Japan Virtual Currency Exchange Association (JVCEA). The warning is about the October full-scale implementation of FATF travel rules for crypto. 

Local news outlet CoinPost reports that the FSA also criticized the management of the JVCEA. Furthermore, the financial market watchdog stated that it is dissatisfied with the JVCEA’s speed in rolling out anti-money laundering rules. The body is also dissatisfied with how the organization handles decision-making and communication, and how it handles delegating executive responsibilities. 

In addition, the JVCEA has stated that it is working to meet up with the FSA’s standards. However, it still faces challenges.

For one, its efforts to introduce anti-money laundering rules for crypto exchange in Japan have been undermined by the cross-border nature of the crypto market. This has made reporting transactions difficult. 

Masako Yamaga, a director of the JVCEA and a professor at Meiji University, made a remark. He stated that implementing the travel rules will require international collaboration. Similarly, he noted management and communication challenges come from not having enough manpower with experience in crypto-regulations. 

Notably, this isn’t the first time the FSA is expressing its dissatisfaction with the JVCEA’s pace of rolling out regulations. Back in July, Financial Times reported that the JVCEA was in the middle of internal crisis. One that had the FSA bearing down on it. 

At the time, the FSA emphasized the same concerns even as employees of the association sought to unionize. This was in a bid to oppose the JVCEA’s plans to downsize its employee headcount. The association had been struggling to keep running costs down as the crypto market entered bear territory globally. 

Furthermore, amidst the tussle, the JVCEA has also successfully introduced some more lenient rule changes for exchanges. The association has put together a “Green–List” of cryptocurrencies that registered exchanges can list without rigorous processes of screening. 

JVCEA Still Attracting Crypto Exchanges With Its Web 3.0 Policy

While JVCEA registered exchanges struggle to meet up with the FCA’s implementation of the FATF travel rules. Consequently, exchanges are looking to enter the Japanese market. Bloomberg reports that the global biggest crypto exchange by trading volume, Binance is making moves. The exchange platform is ,making moves to reopen in Japan after leaving four years ago. 

Binance’s renewed attention is thanks to the new economic policy introduced by Japan’s Prime Minister Fumio Kishida. Furthermore, under this policy, the Japanese government has already set up a Web 3.0 Policy Office that will focus on promoting the adoption of Web 3.0-related innovations.

Elsewhere In Cryptocurrency

With cryptocurrency investors increasingly worried about Hong Kong’s regulatory ambiguity on crypto, a number of major crypto-focused businesses. And events have decided to move their activities to Singapore and other countries considered as more friendly to their industry.

Hong Kong’s lawmakers are advancing plans. Plans to require licensing for crypto trading platforms through an amendment to the city’s anti-money laundering legislation. This legislative change would require firms to offer such services exclusively to professional investors. Investors with a portfolio of at least HK$8 million (US$1 million). However, should the amendment go through, the move could discourage numerous crypto investors from conducting their business in Hong Kong.

“There was a point in time where Hong Kong had a leading position in cryptocurrency and business related to crypto,” Padraig Walsh, a partner at the Hong Kong law firm Tanner De Witt, told local daily.

The South China Morning Post. “That isn’t the case any more, and I think regulation has been a key part of the reasons why.”

Why The Merge Could Change The Future Of Cryptocurrency

Posted on by Augustine Ojeh

The cryptocurrency community is abuzz about what could prove to be a landmark event. A major upgrade dubbed “the Merge” of the Ethereum blockchain. 

Crypto enthusiasts say the Merge will greatly reduce the environmental impact of cryptocurrency mining. It also enhances its utility as a way to conduct financial transactions. Amongst other uses. 

But what exactly is the Merge, and how it could change the future of crypto?

What is the Merge?

Ethereum, launched by Canadian computer programmer Vitalik Buterin in 2015, is a blockchain (or a digital ledger). 

It’s one of the world’s most used blockchains, second only to the bitcoin network. Think of the Merge as the next generation, or 2.0 version, of Ethereum. After nearly two years thinking about and testing a new way of conducting transactions, Ethereum developers say it’s finally ready for prime time. 

Put simply, the Merge aims to simplify the transaction steps on the Ethereum network. 

The change is called “The Merge” because, currently, there are several ways to create a new data block. Developers plan to combine those existing methods into a single process. One they say is both more secure and eco-friendly.

When Is It Going To Happen And Why Now?

The Merge is to take place on the 15th of this month (September).

The Merge is happening now because Ethereum is mature enough to handle financial payments. In addition, the network is also deemed fit enough to  store non-fungible tokens and trade crypto, said blockchain expert Merav Ozair.  

Ethereum can carry out 15 transactions per second in its current form, said Ozair. Ozair founder of startup company Blockchain Intelligence. 

However, if the Merge is successful, the blockchain could eventually handle up to 100,000 transactions per second. This is “way above and beyond what Visa and Mastercard can do,” she said. 

How Would The Merge Reduce Carbon Emissions In Cryptocurrency?

In a blockchain network, transactions aren’t verified by a bank, credit card company or other third party. 

Rather, it relies on a network of computers competing to solve complex problems in exchange for tokens. It takes thousands of computers to verify transactions on the Ethereum blockchain, a process known as “proof-of-work.” 

All of those powerful server computers chugging away together require vast amounts of power. 

The Ethereum blockchain uses about 112 terawatt-hours of electricity a year. That is roughly the same amount of energy used to power the Netherlands. That level of energy consumption releases about 53 metric tons of harmful carbon emissions into the environment annually. This is the same amount Singapore produces in a year.

The Merge replaces the proof-of-work system with an alternative approach called “proof-of-stake.” 

In that system, cryptocurrency owners known as “validators” verify transactions and record them on a new block. 

It is because proof-of-stake involves fewer people using their computers to verify transactions, fewer terawatt-hours are burned. 

Using proof-of-stake, the Merge is projected to reduce ethereum blockchain’s energy consumption by 99.9%, developers said. 

Will the Merge make it safer to use cryptocurrency?

Quite possibly. Since December 2020, Ethereum developers have been running essentially two different versions of the blockchain at the same time. 

The Beacon version was used so they could test the proof-of-stake system, while the Mainnet version carried on with business as usual using proof of work. But having both versions running gave hackers twice as many entry points to potentially attack Ethereum. 

After the Merge, the Mainnet version will disappear and financial transactions will only live on Beacon. Deleting one version of the chain, combined with having a small pool of validators, will reduce the odds of a hacker harming the blockchain, developers said. 

Cryptocurrency Today: Bitcoin Dips To $20,000; Ether Lose Up To 23%

Posted on by Augustine Ojeh

Cryptocurrency Price Today: The bearish run that the cryptocurrency market saw last week continued on Monday, August 22, as major coins registered continuous drops in their values. Bitcoin, the largest crypto token by market capitalization, came under $21,000, while Ether that reached $2000 levels days ago came down to the $1500 mark. 

The General Crypto Market

Other crypto coins, including Cardano, Dogecoin, Polkadot and BNB also registered losses as the bears seemed to grip the crypto market due to unclear reasons weeks after investors finally began to see better days this year.

The global crypto market cap was threatened with a drop below the $1 trillion mark again as it was trading at $1.01 trillion, registering a 0.00 percent decrease over the day, data from CoinMarketCap showed.

Bitcoin remained in red on the day and fell below the $21000 mark. Bitcoin price today at the time of writing this article was $20,988.95, down by 1.57 per cent over the past 24 hours, data retrieved from CoinMarketCap showed. In the past seven days, Bitcoin prices have fallen by 12.61 percent.

What About Ether?

On the other hand, Ether price today dipped by 3.23 per cent at the time of writing in article to $1522.21, showed data from CoinMarketCap. Over the past week, Ether prices have spiraled down by 18.92 per cent, the data further showed.

“Bitcoin and Ethereum witnessed a slight increase as bulls try to restore the lost initiatives. Even though BTC and ETH have lost their weekly gains, they managed to stay above their crucial support levels at US$20,000 and US$1,500 indicating that bulls have not given up yet. A move above the current level today, can result in BTC bouncing back to the US$22,000 level,” said Edul Patel, CEO and co-founder of Mudrex.

“On the other hand, Ethereum is currently between its support at US$1,500 and resistance at US$1,655. It has not accumulated enough strength to make a sharp move on either side. So, we may see ETH trading sideways for the coming few days,” added Patel.

Such sharp moves are common in the highly volatile cryptocurrency market, a Reuters report said. On June 15, bitcoin plunged more than 15 per cent as investors were spooked by the collapse of a so-called stablecoin, TerraUSD, and a major crypto lender freezing customer withdrawals.

Cryptocurrency Today: Prices

Bitcoin $20,988.95 or 1.57% loss in the last 24 hours.

Ethereum $1,522.21 or 3.23% loss in the last 24 hours.

Tether $1.00 or 0.00% loss in the last 24 hours.

USD Coin $1.00 or 0.00% gain in the last 24 hours.

BNB $289.93 or 2.68% loss in the last 24 hours.

Binance USD $1.00 or 0.05% gain in the last 24 hours.

XRP $0.3339 or 2.71% loss in the last 24 hours.

Cardano $0.4405 or 4.28%  in the last 24 hours.

Solana $34.10 or 4.07% loss in the last 24 hours.

Dogecoin $0.06588 or 4.95 per cent loss in the last 24 hours.

Coinbase To Shut Down Ethereum Staking If Threatened By Regulators

Posted on by Augustine Ojeh

Following the U.S Treasury Department sanctioning coin mixer Tornado Cash earlier this month, and the long awaited Ethereum Merge approaching, blockchain technologists are concerned. 

They are concerned about the government regulations impacting the fundamental operation of Ethereum and its post-merge proof-of-stake consensus mechanism.

Coinbase’s CEO Response To The Hypothetical Situation

Brian Armstrong respond on twitter today and stated that in the case of regulatory threats. He made it clear his company would shut down its Ethereum staking services. The company would do this in order to preserve the integrity of the blockchain network. 

The question was asked on sunday by Lefteris Karapetsas, a founder of open-source crypto analytics and accounting app Rotki. Karapetsas tagged several major Ethereum players, challenging them to choose between  two options if government regulators demanded they censor specific addresses. 

“Will you A) comply and censor at the protocol level [or] B) shut down the staking service and preserve network integrity,” he asked in a tweet. 

Along with this tweet he tagged Coinbase, Kraken, Lido, Staked, and Bitcoin Suisse. Armstrong, on behalf of Coinbase, is the only representative of one of the companies singled out in the scenario to respond, as of this writing.

“It’s a hypothetical we hopefully won’t actually face,” Armstrong replied. “But if we did we’d go with B I think. Got to focus on the bigger picture.”

He noted that a better, third option could present itself, or that a legal challenge “could help reach a better outcome.”

Actually, Armstrong’s answer is especially notable as Coinbase is betting much of its future on its lucrative staking service. He is calling it a “big win” for the company. And just this week, JPMorgan analysts said in a note that the Ethereum merge should be bullish for Coinbase. This also includes its shares (COIN), thanks to its Ethereum staking service.

Coinbase And Ethereum Merge

“In early August, we began offering Ethereum staking for institutional clients for the first time,”  Coinbase told shareholders a little over a week ago. ”We’ll continue to add more assets for staking for both our retail and institutional clients going forward.”

With the merge, Web3 investors and analysts are concerned large, institutional players that provide staking services for Ethereum. They are more likely to succumb to pressure from government regulators. And because they manage an outsized percentage of validators, their absence could threaten the entire network.

Eylon Aviv of blockchain and crypto investment firm Collider VC estimates that these large players would adjust on one condition. On the Condition that the U.S. regulators demand censor on transactions. This means that, as much as 66% of the Beacon Chain validators would essentially support censorship. 

“There is a case to be made here that the Ethereum ecosystem has not reached sufficient social decentralization, and we are charting in very dangerous, nation state capture territory.’ He added.

Armstrong On Decentralization

However, last week, when news of the Tornado Cash ban broke. Armstrong tweeted, “Sanctioning a technology seems like a bad precedent to me, and it should probably be challenged. Could have many downstream unintended consequences.”

“Hopefully obvious point: we will always follow the law,” he added.

At the time, Armstrong pointed to a February 4 Coinbase blog post he wrote to articulate the company’s “philosophy on account removal and content moderation.“

“Decentralization is the ultimate customer protection,” he wrote. “The decentralized nature of cryptocurrency offers its own important protections here. And those protections get stronger the more our products decentralize.“

Crypto: Is This The End Of The Road For Bitcoin And Ethereum?

Posted on by Augustine Ojeh

After a rather rocky year, Bitcoin and Ethereum prices are looking up. However, some experts aren’t quite ready to say investors are in the clear from recent price swings in the crypto markets. 

How Far These Cryptos Has Come

The two largest cryptocurrencies are still down by more than 50% from their all-time highs late last year. Notwithstanding, in typical fashion, the crypto market rebounded significantly in July. With price of Bitcoin and Ethereum up by more than 30% and 70% respectively since the market meltdown in June. 

Could this be a signal to investors that things are going to only go up from this point on? Well, time will tell.

As at Thursday, bitcoin was etching closer to $25,000 and Ethereum crept up above the $1,900 mark. This followed the release of July’s inflation data and new progress on Ethereum’s massive software upgrade. Inflation eased a bit from historically high levels in July which in turn led toa rally in the stock and crypto markets.

Ethereum picked up some momentum this week after some developers successfully completed another test on one of its test networks. The test network called Goerli, was tested by simulating a process identical to what will happen on the main Ethereum network in a month.

However, some experts are still skeptical about what recent price jumps could mean on the long term.

“The Fed is still indeed tightening, and inflation is still high, so we cannot be convinced of a market reversal currently,” says Marcus Sotiriou, a market analyst at the digital asset broker GlobalBlock.

“But the fact that the Fed Chairman – Jerome Powell – has started to say that the rate hikes have had a noticeable impact signals something. It signals that we are in the later stages of this bear market, which we are around 8 months into.”

Have Bitcoin And Ethereum Prices Reached A Bottom

Bitcoin and ethereum have gained significant momentum for a few weeks now. While the surge in Bitcoin and Ethereum’s prices have been impressive, crypto ties to the stock market could be a sign of future volatility.

The stock market had it’s best performance since 2020 in July and continues to show gains in August. So, you could make an argument that crypto is currently benefiting fro the rally in stocks says  Scott Sheridan, CEO of brokage firm Tastyworks. By that same measure, if the stocks weaken again, then crypto will likely follow.

“I think if you start seeing the market give up some of the recent gains, you’ll probably see something similar in crypto.” Sheridan says.

Wendy O Gives Her Crypto Verdict

Crypto educator and market analysts Wendy O also isn’t convinced Bitcoin and Ethereum have hit their lowest price of this cycle yet. Wendy says the market will see “true capitulation in the bear market.” She believes that this will last for another one or two years. Capitulation is the moment when investors lose all confidence in the outlook for prices, even after they have tumbled. These images show what capitulation could look like for bitcoin and ethereum over the next year. Wendy added. 

Although the prices of cryptocurrencies are almost impossible to predict with certainty. Wendy says that signs are pointing to Bitcoin and Ethereum dropping back down past their June lows of $17,500 and $900 respectively. 

Continued economic and political uncertainty could create even more volatility in the market in the following months.

“In previous bear cycles, both cryptos have corrected 85%, and i anticipate Bitcoin to hit $10,000 and Ethereum to hit $750.”

Wendy O.