You need 23 Bitcoin (BTC) or 605 Ethereum (ETH) to Afford this Rare Cryptopunk

You need 23 Bitcoin (BTC) or 605 Ethereum (ETH) to Afford this Rare Cryptopunk

The market for non-fungible tokens (NFTs) is getting extremely hot at the moment, with market momentum moving in a speedy bull direction.

This has paved the way for an unfamiliar CryptoPunk to be sold for an astonishing $750,000 in the market today. To put this in another way, you will need to have 23 Bitcoins (BTC) or about 605 Ethereum (ETH) to buy this NFT.

Decentralized autonomous organization FlamingoDAO is behind this outstanding CryptoPunk sale. There are very few (actually, about 9) of these rare punks that exist in the entire CryptoPunk world. Non-refundable tokens (NFT) first existed in 2017, and CryptoPunks were the first sets of NFTs that pioneered the market.

Cryptopunks is seen as the pioneer of the original NFT project, as they even existed before Cryptokitties was developed.

Larva Labs, who are the developers of CryptoPunks, reported recently that there have been $26 million lifetime sales of Punks on their native marketplace. They added that Punks have been sold for an average price of $6,199 right from the first sale.

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Each Punk is different from the other, which makes them very valuable when they are available. Some of the Punks come with different accessories, background color, and even an extremely rare feature, such as a “zombie” or “alien” appearance. Each of the Punks cannot be replicated in the market, which makes them very rare and valuable.

“The Punk that sold today, #2890, is one of nine alien Punks in existence,” Larva Labs reiterated.

NFTs have always been placed as the secondary use-case for blockchain. However, sales like this indicate that they may even play a very important role in the market in the future. It only shows the increasing importance and value attached to such assets.

NFT  projects such as Axie Infinity’s native critters and NBA Topshot are also selling for impressive prices recently, which indicates that NFTs are gradually having their day in the open market.

While some NFT critics are questioning the rationale behind the astonishing price of the NFTs, others have dismissed the critics, saying it’s a question of satisfying one’s desire and wants. Some proponents also pointed out that there are many real-world scenarios of people paying very much for extremely rare things that make even less sense.

Source: insidebitcoins.com

Author: FOLLOW ON


Crypto ETF Race Heats Up in 2021- Valkyrie Bitcoin Trust Files to List Shares on NYSE – Finance Bitcoin News

Crypto ETF Race Heats Up in 2021- Valkyrie Bitcoin Trust Files to List Shares on NYSE – Finance Bitcoin News

Crypto ETF Race Heats Up in 2021- Valkyrie Bitcoin Trust Files to List Shares on NYSE

2021 has been an explosive year for bitcoin as the crypto asset has touched new all-time price highs as cryptocurrencies have seen increased demand. Meanwhile, a number of crypto proponents expect the first exchange-traded fund (ETF) to be approved this year as a number of firms are racing to launch an ETF. On Friday, the Texas-based firm Valkyrie Digital Assets filed an ETF registration proposal called the Valkyrie Bitcoin Trust with hopes to list the fund on the New York Stock Exchange (NYSE).

This year just might be the year when U.S. regulators approve a bitcoin (BTC)-based exchange-traded fund (ETF) that’s hosted on a major stock exchange. For instance, in December, news.Bitcoin.com reported on Vaneck’s bitcoin-based ETF filing with the U.S. Securities and Exchange Commission (SEC).

This week, Vaneck also filed for another exchange-traded fund called the Digital Asset ETF, which aims to hold equity in companies that generate revenue from cryptocurrency services. Meanwhile, at the same time, Canadian investment fund manager Arxnovum Investments filed for a bitcoin-based ETF with Canada’s Ontario Securities Commission.

Crypto ETF Race Heats Up in 2021- Valkyrie Bitcoin Trust Files to List Shares on NYSE

Now another firm has joined the bitcoin ETF race as the Texas-based firm Valkyrie Digital Assets registered for a bitcoin fund on Friday, January 22. Valkyrie notes in the filing that the trust intends to list the shares on NYSE Arca. After the filing was public, crypto proponents discussed the new ETF entry on social media. For example, the crypto CFA James Seyffart, talked about Valkyrie’s ETF registration and he told his 3,800 Twitter followers he expects a bitcoin ETF approval this year.

“And there’s another entrant into the Bitcoin ETF Race,” Seyffart said. Showing a list of all the companies filing for an exchange-traded fund Seyffart further wrote: The current state of the Bitcoin ETF race with a new late entrant. Important Note: No 19b-4’s have been filed as far as I can tell, which are the filings that start that 240-day clock for the SEC to make a decision.” Seyffart added:

Sticking my neck out a bit – I think we’ll see a U.S. Bitcoin ETF in 2021 if Gensler is confirmed to run the SEC. The guy is extremely knowledgeable on Blockchain/crypto. He even teaches a class at MIT on the topic. That said, I think you can expect new regulations coming to the crypto space from the SEC. Don’t think we’ll see outright bans like some bitcoin bears like to claim. But we will definitely see increased scrutiny and regulation as Mike McGlone has also stated.

Valkyrie believes the ETF will give investors a more accessible method of investing in BTC. “The trust’s purpose is to hold bitcoins, which are a digital commodity based on the cryptographic protocols used by the decentralized, peer-to-peer bitcoin computer network,” the Valkyrie filing states.

The Valkyrie ETF filing stresses that an investment in the trust involves significant risks. Valkyrie’s bitcoin fund registration further emphasizes that the fund may not be suitable for shareholders who cannot accept more risks.

“The investment objective of the trust is for the shares to reflect the performance of the value of a bitcoin as represented by the index, less the trust’s liabilities and expenses. The shares are designed to provide investors with a cost-effective and convenient way to invest in bitcoin,” the investment firm’s registration adds.

Do you think regulators will approve a bitcoin ETF in 2021? Let us know in the comments section below.

2021, 2021 Bitcoin ETF, Arxnovum Investments, Bitcoin, Bitcoin (BTC), bitcoin etf, Bitcoin ETF Approval, Bitcoin ETF Proposal, BTC, Cryptocurrency, exchange traded fund, exchange-traded funds, Finance, James Seyffart, US Bitcoin ETF, Valkyrie, Valkyrie Bitcoin Trust, vaneck

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source: otcpm24.com

Author: News Bureau


The impact of Bitcoin hacking incidents in the crypto market

The impact of Bitcoin hacking incidents in the crypto market

In the 2013–2017 period, 29 hacks occurred in the Bitcoin market where a total of 1.1 million Bitcoin were stolen. Noting that the average price for Bitcoin (BTC) in December 2020 exceeded $20,000, the corresponding monetary equivalent of losses is more than $22 billion, which strongly highlights the societal impact of this criminal activity. 

What did crypto exchanges do to address this problem? Nowadays, about 90% of exchanges use some kind of cold storage system, which means that digital assets are stored offline. Keeping Bitcoin offline considerably reduces the threat from hacking attacks.

Related: Roundup of crypto hacks, exploits and heists in 2020

Nevertheless, Jean Baptiste Su, principal analyst and technology futurist at Atherton Technology Research, highlights that in 2019, hackers stole over $4 billion, which was more than twice as much as in 2018. In fact, cyberattacks are a very serious issue that cast doubts on the security of modern blockchain-based applications in the financial industry. Of course, one can argue that thefts also occur when using traditional payment methods, such as credit cards. For instance, the Annual Fraud Statistics released by The Nilson Report documents that credit card fraud losses worldwide reached $27.85 billion in 2018.

Related: Crypto exchange hacks in review

I think it is important to point out that fraud in the market for credit cards as opposed to fraud in the cryptocurrency market are difficult to compare for at least four reasons:

  • First, many more people use credit cards as opposed to cryptocurrency.
  • Second, although the frequency of fraud in the market for credit cards is considerably higher, the average amount of stolen monetary equivalent per fraud is dramatically lower.
  • Third, it is much more likely that credit card owners are insured by the credit card company, whereas Bitcoin users typically do not have such insurance.
  • Finally, it is much more probable that the police have some chances of successfully dealing with credit card losses compared to Bitcoin thefts in cyberspace.
  • What future awaits cryptocurrencies?
    GOODBAD

    To explore the question of how Bitcoin hacking incidents affect uncertainty in the overall Bitcoin market, I conducted an empirical study where I analyzed how the volatility — which is in financial economics a measure of an asset’s uncertainty — responds to hacking incidents. To do so, I used a so-called Exponential Generalized Autoregressive Conditional Heteroskedasticity model where I included binary dummy variables in the variance equation. The dummy variables measured the impact on the volatility up to five days after a hacking incident in the Bitcoin market.

    In my study, I found that Bitcoin’s uncertainty in terms of volatility significantly increases. Surprisingly, I found two effects — a contemporaneous effect and a delayed effect. The volatility increases on the day of the hacking incident and then drops down to normal levels again. There is no effect between day one and day four. Then, on the fifth day after the hacking, the volatility substantially increases again. Since there are no other events that took place, the effect is most likely caused by the same hacking incident.

    A possible explanation for the delayed effect could be that hacking incidents are more likely to occur at small exchanges that probably exhibit a lower level of security standards compared to larger exchanges. As a consequence, information diffusion occurs more slowly.

    Another interesting finding of the study is that even other cryptocurrencies, such as Ether (ETH), do respond to hacks in the Bitcoin market. Interestingly, the volatility of Ether exhibits only a delayed effect. There is no contemporaneous effect. However, the delayed increase in volatility on day five is virtually the same as we observed for Bitcoin’s volatility.

    A possible explanation for this finding could be that exchanges trade multiple cryptocurrencies at the same time, and if an exchange was hacked, thieves could steal both Bitcoin and Ether, which could be a possible explanation for volatility spillovers found in my study. Another possible explanation for this phenomenon could be that thieves are using one cryptocurrency to cash out on their theft of the other, thus shifting the demand for cryptocurrencies from Bitcoin to Ether, for instance.

    To explore this issue, I collaborated with colleagues from the Finance Research Group and the Mathematics Research Group at the University of Vaasa. Together with Niranjan Sapkota and Josephine Dufitinema, we collected 53 hacking incidents in the Bitcoin market totaling in the 2011–2018 period corresponding to 1.7 million stolen Bitcoin. We argue that naïve risk management may dramatically underestimate the risk of those hacking incidents and that naïve risk management may dramatically underestimate the risk of those hackings incidents.

    In the study, we show that the distribution of hacking incidents is extremely fat-tailed. This means that Black-Swan-like events are more likely to occur. We found that the probability distribution of hacking incidents does not have a theoretical mean, which implies that the mean of the loss distribution is infinite. To compute an estimate of the risk due to cyberattacks in the Bitcoin market, we then employed recently proposed tools from extreme value theory, or EVT.

    We showed that the shadow mean of the expected risk of cyberattacks is $59.70 million, which is definitely larger (almost two times) than the corresponding sample tail mean of $30.92 million. More specifically, the shadow mean is computed by an application of ETV and corresponds in our research context to the expected risk of cyberattacks above a certain threshold. In our study, we chose as a threshold a loss of $1 million. That means all losses due to cyberattacks that are above $1 million are treated as extreme values.

    The next step in our calculation was to combine the shadow mean with the expectation of the loss distribution where we collected all losses due to cyberattacks that are less than $1 million. Combining our shadow mean with the sample mean below our chosen threshold, we calculated an overall expected loss of $24.89 million instead of $12.36 million, which is the naïve sample mean of the hacking incident data.

    Our findings have significant implications. For instance, our results show that standard tools used in traditional risk management can perhaps not be relied upon for making decisions.

    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.

    Klaus Grobys is an adjunct professor of financial economics at the University of Jyväskyla and an assistant professor of finance at the University of Vaasa. Grobys is also affiliated with the research platform InnoLab at the University of Vaasa. His recent studies investigate the opportunities and risks associated with new innovative digital financial markets. His recent research was, among others, covered by U.S. business magazine Forbes.

    Source: coingraph.uno


    JPMorgan Strategists Say Bitcoin Mainstream Adoption Is Reducing 'Diversification Benefits'

    JPMorgan Strategists Say Bitcoin Mainstream Adoption Is Reducing ‘Diversification Benefits’

    The surge in Bitcoin price over the past months has triggered Wall Street analysts to increase their price target. At the beginning of the year, JPMorgan analyst Nikolaos Panigirtzoglou said BTC could reach $146,000.

    Strategists at investment banking company JPMorgan Chase & Co (NYSE: JPM), Federico Manicardi and John Normand, referred to Bitcoin as the “least reliable hedge during periods of acute market stress.” According to a memo published on the 21st of January, JPMorgan strategists questioned Bitcoin’s ability as a reliable investment hedge.

    At the time JPMorgan strategist released the memo, Forbes said in a report that Bitcoin had plunged significantly and lost about $180 million in its market capitalization. As stated in the report, the strategists said:

    “Mainstreaming is reducing diversification benefits and leading to underperformance during a crisis.”

    With a market cap of about $590 billion, Bitcoin is down 8.22% to $31,781 despite reaching nearly $42,000 earlier this month.

    The strategist added:

    “The mainstreaming of crypto ownership is raising correlations with cyclical assets, potentially converting them from insurance to leverage.”

    Before now, other JPMorgan strategists said Bitcoin is a risk asset and not a safe haven as many view the digital asset. According to JPMorgan’s Global Quantitative and Derivatives Strategy team, Bitcoin is “likely more of a reflection of a need for an ‘alternative’ currency rather than a need for a ‘safe’ asset or ‘hedge.’

    The surge in Bitcoin price over the past months has triggered Wall Street analysts to increase their price target. At the beginning of the year, JPMorgan analyst Nikolaos Panigirtzoglou said BTC could reach $146,000.

    Since the 2017 crash, the crypto market was dormant until last year when investors began to view cryptocurrencies, especially Bitcoin, as a safe haven. In 2020, the crypto space received new investors and saw more commitments from existing ones. The interest growth in cryptocurrencies is due to the global economic meltdown caused by the unprecedented coronavirus pandemic.

    Bitcoin has been recording new highs since October when PayPal announced that its users can now make transactions using the king coin. BTC reached a three-year high of over $19,000 on the 24th of November and climbed to an all-time high of $19,850.11 on the 30th of the same month. After that, BTC topped new highs of $20,600 on the 16th of December and moved to $23,600 on the 17th. As of the 27th of December, the top coin was at $23,421. Bitcoin also traded at over $28,000 on the 27th of the same month.

    Recording additional gains, Bitcoin reached another high of more than $34.800 on the 3rd of January 2021. On the 7th of January, Bitcoin crossed $40,000 for the first time in history. On the 8th, Bitcoin traded at almost $42,000 before declining.

    In the memo, Normand and Manicardi added:

    “Whether cryptocurrencies are judged eventually as a financial innovation or a speculative bubble, Bitcoin has already achieved the fastest-ever price appreciation of any must-have asset.”

    Apart from Bitcoin, altcoins like ETH, XRP, and Cardano (ADA) have also declined. ETH has plunged 12.89% to $1,146.61, XRP is down 11.13% to $0.2641. Also, Cardano (ADA) has dropped by 13.12% to $0.3169.

    next Altcoin News, Bitcoin News, Cryptocurrency news, News

    Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

    Source: cryptonewscloud.com

    Author: CNC

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    Bitcoin Lightning Network is integrated to OKCoin

    Bitcoin Lightning Network is integrated to OKCoin

    OKCoin, the Crypto-exchange company, announced that it is in the midst of merging its site with the Bitcoin Lightning Network. 

    In the year 2013, OKCoin was created by Mingxing Xu. It provides some of the big currencies, including Ethereum, Bitcoin, Litecoin, Bitcoin, and Ethereum Classic, for fiat exchange. 

    “The lightning network, like Bitcoin, requires a network of nodes and adoption of the technology to perform to the best of its capabilities. As part of our analysis of the technology, we assessed the strength and quality of the nodes and now feel the network is strong enough to participate as an exchange with a high volume of withdrawals and deposits a day. We hope other blockchain companies follow suit and lift the whole industry up by speeding up bitcoin payments and look further to working further with the Lightning Labs team to advance this strategically important layer 2 addition to Bitcoin for more utility and wider adoption.“, stated Hong Fang, OKCoin CEO.

    The integration of OKCoin with the Bitcoin Lightning Network 

    The deployment is scheduled for completion by the end of February, providing OKCoin consumers with the choice of using the lightning network to quickly withdraw and deposit funds from the platform. 

    The incorporation of the Lightning Network is generated for micropayments on the system. For now, bitcoin transfers charge approximately $10, but the incorporation of the lightning network could reduce the fees to 1 percent, based on the network’s liquidity and handling. 

    The incorporation may also minimize the time required for any transactions to be made.

    Source: greatcoinnews.com

    Author: Cameron Jackson


    Skybridge Scaramucci: Bitcoin Has Matured as an Investment

    Skybridge Scaramucci: Bitcoin Has Matured as an Investment

    SkyBridge Capital boss and former White House communications director Anthony Scaramucci believes bitcoin’s value proposition has grown over the years. There are several reasons for this, chief of which is the entrance of institutions and government regulations.

    Scaramucci made his thoughts known in an op-ed published on CNN along with SkyBridge’s COO Brett Messing. Scaramucci believes Bitcoin has become the perfect hedge against inflation.

    As the government prints more money to stimulate the economy, there’s a massive fear of inflation. This is driving many investors into Bitcoin purchases. Scaramucci’s findings are not unfounded. The recent Global Fund Manager Survey revealed that Bitcoin had beaten golds and bonds and was now third in rankings of “most crowded trade.”

    Bitcoin still has a long way to go to flip gold. Analysis from on-chain analytics resource CryptoQuant revealed that Bitcoin’s all-time high of $42,000 only took 2% of gold’s market cap, which stands at $10 trillion.

    These numbers might seem low, but it shows progress. BTC’s market cap topped $1 trillion as the price eclipsed $410,000, before it settled to around $33,000 with a market cap north of $600 billion. As asset managers lose confidence in the dollar, they’re shifting their investment priorities to cryptocurrencies.

    “At the same time, increased regulations, improved infrastructure and access to financial institutions — like Fidelity — that hold investors’ money have made bitcoin investments as safe as owning bonds and commodities like gold, which are also used to balance portfolios,” he notes.

    Investors are now flocking to the cryptocurrency due to its infrastructure’s maturity coupled with increased regulations from the government.

    Scaramucci referred to the forward-thinking decision of the Office of the Comptroller of Currency, which saw the bureau authorize banks in a milestone move to provide crypto custody services in July 2020. Major wall street veterans and large companies are also moving their treasuries into Bitcoin. Some popular examples include MicroStrategy, MassMutual, investment manager Ruffer, and Jack Dorsey’s Square.

    Scaramucci’s SkyBridge is also not left out. The investment manager launched a Bitcoin Hedge Fund in December with $25 million of its funds. The Fund’s filing with the Securities and Exchange Commission (SEC) shows it was filed under the SEC’s Reg. D exemption. The agency’s Reg. D exemption opens up the investment only to accredited investors. The firm announced that its Bitcoin exposure was valued at $310 million at the time of launch.

    The Fund charges a management fee of 75-basis point, but no incentive fee. Fidelity serves as the custodians for the assets, while Ernst & Young handles the audit. SkyBridge Capital joins a flurry of companies looking to help investors procure Bitcoin in North America. Other companies like Morgan Creek Capital and Mike Novogratz’s Galaxy Digital are also working on several bitcoin-related products targeted at institutional investors.

    Source: insidebitcoins.com

    Author: FOLLOW ON


    You need 23 Bitcoin (BTC) or 605 Ethereum (ETH) to Afford this Rare Cryptopunk

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