Thursday, December 31, 2020

What Will 2021 Hold for Bitcoin?



A new year is upon us. 2020 is finally coming to a long-awaited end, along with the craziness that came with it. This year bitcoin rose to new heights, and the currency appears to have garnered a newfound reputation as a store of value. Many see it as a hedge tool that can keep one’s wealth safe during times of economic strife.


Will 2021 Be Any Different for Bitcoin?


The big question now is, “Where do we go from here?” Where will bitcoin be lead in 2021? Could the future hold promising items for the world of crypto, or will we see massive corrections like we did in 2018 following the bull year of 2017?


There are so many things to think about. At first glance, it doesn’t look like there is any reason as to why bitcoin would end its present patterns, all of which appear to be bullish. The currency has been on a serious roll over the past eight months. Technically, one could state that the currency has been bullish since the year started.


It initially began 2020 in the $7,000 range. By the following month in February, the currency had shot up to about $10,000, thereby adding $3,000 to its price. From there, the coronavirus took a nasty toll on bitcoin as well as the rest of the world’s financial products, but it wasn’t long before the currency rose back to the top of the financial ladder, eventually recovering to $9,000 in May.


What would have likely affected BTC for a long time about five years ago proved to be a small dent in the road. Many businesses have not recovered from the coronavirus pandemic, but bitcoin is well on its way to being an “everyman” currency. The asset has been jumping ever since, ultimately spiking to about $27,000 last week.


Given the currency’s good fortune well into the final weeks of the year, one would automatically assume that things will continue in this respect, but to be fair, it would be wrong to just believe that all will remain honky dory throughout 2021. We can hope for this, but as we’ve come to know with bitcoin, things can be rather unpredictable.


We Should Be Prepared for Anything


Many people didn’t expect 2018 to go the way it did. What followed a year of great stamina and strength for bitcoin was a year of dismal losses. One that ultimately saw BTC hit a new low and shed 70 percent from its value.


However, this was a time when bitcoin was predominantly supported by retailers, which are typically not as strong as institutional players. This year, institutions such as MicroStrategy and Square have shown newfound love and respect for bitcoin, which could help to keep it afloat throughout the new year. Granted this attitude continues, perhaps bitcoin finally has a chance of joining the same ranks as fiat currencies.


The post What Will 2021 Hold for Bitcoin? appeared first on Live Bitcoin News.




Source livebitcoinnews.com

Bitcoin Closes 2020 As Best Performing Asset Of The Last Decade



Today is the last day of 2020 — a year so many are ready to say goodbye to and never look back at. But for Bitcoin, the cryptocurrency is about to close out its most important year yet. 


At the same time, the asset also closes the last ten years as the best performing asset since 2011, underscoring a decade of growth that is only just beginning. Here’s how Bitcoin stacked up against the rest of the world of finance over the last decade. 


From Early Bitcoin Beginnings To Now


The Bitcoin white paper was first distributed in 2008, and the genesis block that began it all was mined in 2009. In 2010, the first well-known commercial transaction involving BTC and two pizzas took place. 


But it was 2011 when the asset rose to over $1 and started to be widely used as a currency — primarily for transactions on the Silk Road dark web marketplace. 


Related Reading | Analyst: Bitcoin Parabolic Trend Is “Close To A Breakdown”


From there, it has continued to be used as such but also has taken on many other use cases as its market cap has grown. Today, in 2020, institutions, billionaires, celebrities, and corporations are now buying BTC to store value and hedge against inflation. 


bitcoin history 2020


Bitcoin's entire history of price action | Source: BLX on TradingView.com

How The Cryptocurrency Compares Over The Last Decade


From the asset’s early days in 2011 as an emerging form of peer to peer electronic cash to the current digital gold narrative, the price per BTC has grown to just under $30,000.


Data shows that the cryptocurrency has outperformed every other asset over the last ten years, with a staggering 6 million percent increase. This equates to over 200% annualized returns, with the next best performer being the Nasdaq 100 at just 20% annualized returns. 



All assets compared in over the last ten years | Source: Charlie Bilello

Looking at it from the perspective that the asset has already grown from under $1 to $30,000 and over 6,000,000% gives the false impression that’s it’s too late to invest in Bitcoin. But because of the cryptocurrency’s potential and promise, it could ultimately reach prices of hundreds of thousands to millions per coin. 


Related Reading | Bitcoin Dominance Doji: Why 2021 Could Spell Doom For Altcoins


Some of the most brilliant investors alive claim getting into Bitcoin even now is like investing in Google or Apple early. Just as many naysayers exist, however, but people often don’t agree with what they cannot understand. 


Others have compared Bitcoin to the internet, and like that technology — including email, websites, and more — was all demonized at first and thought to never replace existing systems. 


Is the same fate as the internet ahead for Bitcoin as the asset’s most important year and it’s first full decade beyond proof of concept stage?


Featured image from Deposit Photos, Charts from TradingView.com





Source newsbtc.com

2020's Important Bitcoin Infrastructure, feat. Alyse Killeen




A look at privacy and infrastructure advances that will shape the bitcoin ecosystem in the years to come.




Alyse Killeen is the founder and managing partner of StillMark, and has been investing in bitcoin companies since 2013. While much of the conversation this year has been about high level narratives and new institutional investors, Alyse breaks down the technical advances that happened this year.





Source coindesk.com

Bitcoin’s 2020 In Tech



Seemingly undisturbed by 2020’s craziness, and largely unfazed by bitcoin’s wild price swings that concluded with new all-time highs in December, Bitcoin’s technical community continues to plow ahead. Bitcoin’s software and the many projects around it were gradually improved throughout the year, as software was optimized, bugs fixed and privacy leaks patched. The bulk of this work, as vital as much of it is, doesn’t attract headlines.


Yet, a bird’s-eye view on Bitcoin’s tech development over the span of a year helps highlight new milestones in Bitcoin’s ongoing technological march forward. In 2020, too, the consistently growing Bitcoin development community introduced a number of useful new features, several particularly important upgrades and some especially notable improvements.


As this volatile year is drawing to a close, these were some of Bitcoin’s most notable technical developments over the past 12 months…


New Privacy Tools With PayJoin And CoinSwap


On Bitcoin’s privacy front, the PayJoin and CoinSwap projects this year represented two promising advancements.


PayJoin, also known as Pay to Endpoint (P2EP), is a trick that lets recipients of a transaction partake in the transaction through a CoinJoin, to basically send funds to themselves while also receiving the actual payment from the real sender. If a snoop, conducting blockchain analysis, were to assume that all coins sent in a transaction belonged to the same person — as they normally would — they’d be wrong. This already benefits the privacy of both sender and receiver, as the snoop would confuse (past) coin ownership between them. Moreover, if enough people use PayJoin, it could render this important heuristic for blockchain analysis useless altogether, in turn benefiting even the privacy of those who didn’t make PayJoin transactions themselves.


Although demo versions of the PayJoin tool had already been implemented for online gambling game Bustabit and the coin mixing software JoinMarket in late 2018, and Samourai Wallet in 2019 released its own — more limited — version under the Cohoots umbrella (with slightly different privacy tradeoffs), PayJoin was this year implemented in several popular Bitcoin projects. This notably included the widely used payment processing software BTCPay in April, allowing BTCPay users to accept PayJoin transactions from compatible wallets. The privacy-focused Wasabi Wallet was the first wallet to offer this compatibility later that same month, while JoinMarket (September), Blue Wallet (October) and Sparrow Wallet (November) followed later in the year.


Meanwhile, Bitcoin developer Chris Belcher set out to realize an implementation of CoinSwap, a privacy technique first proposed in 2013 by Bitcoin Core contributor Gregory Maxwell. CoinSwap leverages Atomic Swaps (the trick that also underpins the Lightning Network) to let users exchange coins without needing to trust one another. Each user would end up with coins that can’t be linked to their own transaction history.


Belcher, one of the world’s foremost experts in Bitcoin privacy, in May published a detailed outline of how the CoinSwap protocol could be implemented to ensure maximum privacy. The proposal would make CoinSwap transactions indistinguishable from other transactions, use splitting techniques to obscure amounts, route payments to frustrate snooping participants and more. A few months later, in June, The Human Rights Foundation announced that its first Bitcoin development grant would go to Belcher and his efforts to realize the project.


Having worked on his implementation for most of the year, Belcher in December announced a “big day for bitcoin privacy and fungibility”: he’d made the first-ever successful CoinSwap transaction on Bitcoin’s test network (testnet).


The Lightning Network Became More Robust With Watchtowers (And More)


The Lightning Network, Bitcoin’s Layer 2 protocol for faster, cheaper and more private payments, continued to improve across the board in 2020. With Lightning implementations LND, Eclair, C-Lightning and — since July — Electrum rolling out a number of new software releases, and a growing number of projects building on top of the protocol, Lightning development was more active than ever. Among the more notable developments, Watchtowers resolved one of the Lightning Network’s remaining weaknesses, resulting in a more robust protocol.


One of the Lightning Network’s tradeoffs is that users need to keep an eye on their payment channels to ensure that payment channel partners aren’t trying to cheat by broadcasting old channel states to claim more funds than attributed to them. Lightning users can step in if a channel partner attempts to cheat, but this does require monitoring of the Bitcoin blockchain, which casual users might not do very regularly.


To decrease the risk that an attempt at cheating is missed, the Lightning protocol allows channel monitoring to be outsourced to impartial observers called Watchtowers. Adding to the first Watchtower software introduced by LND by late 2019, February of this year saw the alpha release of the dedicated Watchtower implementation Eye of Satoshi. Shortly after, the proposed Watchtower protocol specification was updated, while C-Lightning rolled out support for Eye of Satoshi in May. Version 1 of Eye of Satoshi followed in July.


Other notable Lightning developments in 2020 include the continued work on anchor outputs to ensure users can claim funds from a channel unilaterally even when on-chain fees have gone up more than expected since the last payment channel update, Multipath payments which let users make Lightning payments in smaller chunks, the Lightning Network-native messaging application Juggernaut, channel management tool Faraday, the Lightning Loop beta release, but also some newly discovered weaknesses as well as (proposed) solutions, and a lot more more.


After Miniscript, Bitcoin Programming Was Made Easier With Minsc


The code embedded in Bitcoin transactions that specifies what conditions must be met to spend the coins in a next transaction is written in a programming language specifically designed for Bitcoin, called Script. Script can be tricky to work with, however: in programmers jargon, Script is hard to “reason about.” This means that, especially as it becomes a bit more complex, it can be difficult to understand what a piece of script actually allows: a transaction may unintentionally include code that allows the coins to be spent under different conditions than originally intended. This is one reason why many Bitcoin software applications, like wallets, refrain from utilizing Script’s full potential.


Over the past years, (former) Blockstream researchers Andrew Poelstra, Pieter Wuille and Sanket Kanjalkar designed a “stripped down” version of Script, called Miniscript. Miniscript is a selection of “tools” from the “Script toolkit” that are carefully selected to enable practically anything that can be done with Script, but it’s easier to use and easier to verify by programmers. So, while a line of Miniscript is still a valid line of Script, it essentially avoids human error by preventing unexpected, perhaps unintended, outcomes of the code; Miniscript is easier to reason about. In November of this year, Head of Research and Development at Rugged Bytes Dmitry Petukhov published a formal specification of Miniscript.


To make creating Bitcoin transactions even easier, Wuille had also designed a “policy language” for Miniscript, a programming language of its own that could compile (convert) into Miniscript, and thus Script. Building on Wuille’s work, Bitcoin developer Nadav Ivgi this year developed another new programming language called Minsc. First announced in July, and followed up with a major upgrade in November, Minsc is still a work in progress, but is set to greatly simplify the creation of Bitcoin transactions. This could help unlock a range of promising features that take full advantage of Bitcoin’s versatility, like interoperable CoinJoin wallets, smart contract solutions, Layer 2 protocols and more.


Smart Contracts Became Smarter With DLCs


Whenever smart contracts depend on external data — data that doesn’t live on the blockchain — they rely on an external source for that data referred to as an “oracle.” If two users want to bet on the outcome of a sports match, for example, the oracle would have to use the result of the match to settle the bet in favor of whoever made the correct prediction (at least in case of a dispute).


A very basic sports betting setup could consist of a two-of-three multisignature (multisig) address where both players and the oracle all hold one key each, and the oracle is informed of the details of the bet. After the match, the two players could cooperate to send the funds from the multisig to the winner without the oracle’s key. But if the loser refuses to cooperate, the oracle can use its third key to cooperate with the winner to send them the funds from the multisig. This system works, but has two main downsides. One, both players need to trust the oracle not to collude with their opponent. And two, the oracle needs to be informed of the bet and perhaps play an active part in the settlement process: this means players have no privacy from the oracle, while the setup doesn’t scale very well if more than a few players want to bet.


A better solution was in 2017 proposed by MIT Media Lab’s Digital Currency Initiative researcher Thaddeus Dryja: discreet log contracts (DLCs). DLCs use a clever mathematical trick where the oracle publishes a cryptographic signature that corresponds with the outcome of an event. In the example above, the oracle would publish one signature if the first team wins, and a different signature if the other team wins. The trick: the smart contract is designed to let the winning player use the published signature to claim the funds.


In a DLC, the oracle’s involvement with the smart contract is minimized to the publication of a signature; this could, in the sports betting example for instance, be done by an existing news service, as part of its regular broadcast. This also means that the oracle doesn’t need to be informed about the details of the bet, and in fact doesn’t even need to know there was a bet at all. Meanwhile, any number of people can use the signatures to settle their bets with no further involvement from the oracle, greatly benefiting scalability. And while oracle could in theory still collude with someone and broadcast the wrong result, such dishonest behavior would be obvious to anyone and tarnish the oracle’s reputation going forward.


In January of this year, CEO Chris Stewart announced that his company Suredbits, in collaboration with Crypto Garage, had begun work on a specification for DLCs. In February, Suredbits engineer Nadav Kohen followed up with the first working code. And by September, Suredbits and Crypto Garage had developed their software to the point where it could be used: Stewart and Bitcoin developer Nicolas Dorier engaged in Bitcoin’s first-ever DLC to bet on the outcome of the U.S. presidential election. Stewart, who’d bet on Biden, claimed his winnings in December.


Holding Is Getting Safer With Bitcoin Vaults


The long list of exchange hacks and other bitcoin heists are testament to the fact that securely storing private keys continues to be a challenge, especially where many coins are at stake.


But more secure solutions to store coins are in development. Bitcoin vaults — a concept dating back to 2016 — are a type of smart contract that secure coins so that it takes several confirmed transactions and a time delay to really spend them. This gives potential victims the opportunity to revert a heist before it is too late.


2020 saw the release of two types of vault prototypes.


The first vault prototype was announced by Bitcoin Core contributor Bryan Bishop in April. In short, Bishop’s design is based on a pre-signed (and not-yet-broadcast) transaction that spends (some of) the coins from the vault to a user’s regular (“hot”) wallet with a time-lock delay, while an alternative spending option without a timelock can redirect the coins to an alternative address; perhaps a new and even more secure vault. Importantly, the private key used to sign the pre-signed transactions is deleted when the vault is created, so an attacker could only ever steal the pre-signed transaction itself.


The setup makes it exceedingly difficult for an attacker to claim the coins. Even if the pre-signed transaction is stolen, the thief could merely spend the coins to the hot wallet, and if the victim doesn’t trust the security of his hot wallet he can use the baked-in time delay to move the coins to the extra-secure address instead. (To prevent the thief from stealing the coins by simply compromising the hot wallet and waiting patiently until the vault user sends his coins there, Bishop’s design only lets users withdraw from the vault in small chunks at the time.)


A little later in April, Bitcoin developer Antoine Poinsot announced an alternative Vault demo which he designed with Chainsmiths CEO Kevin Loaec, called Revault. Revault resembles Bishop’s Vaults in some ways, like its use of pre-signed transactions, but is specifically designed for multi-user setups, using a multisig address. Revault lets a predetermined subset of a group of users spend coins from the vault to a hot wallet, also with a time-delay. Any vault participant can use this time-delay to return the funds to the vault if they disagree with the spend, however, or they can redirect the funds to an alternative extra secure address if they don’t trust what’s going on at all.


In addition, Revault requires that upon withdrawing from the vault, when the time-lock kicks in, users immediately create a transaction from the hot wallet, which also requires a server to co-sign. The server is programmed to sign any transaction, but never a conflicting transaction, so if an attacker compromised (both the vault and) the hot wallet, they would have to try and claim the coins before anyone else and before the time-lock expires. This should make it obvious if the hot wallet is compromised, alarming the group of Revault users, and allowing them to redirect the funds before time-lock expiry.


Taproot Is Now Good To Go, As Activation Is Under Consideration


Taproot is set to be the first Bitcoin protocol upgrade since Segregated Witness activated in August 2017. First proposed by Bitcoin Core contributor Gregory Maxwell in January 2018, Taproot lets users “hide” smart contracts in regular-looking Bitcoin transactions: complex multisig construction could be indistinguishable from a simple payment.


The Taproot upgrade would also include the Schnorr Signature algorithm. Many cryptographers consider the Schnorr signature scheme to be the best in the field, as its mathematical properties offer a strong level of correctness, it doesn’t suffer from malleability and is relatively fast to verify. Schnorr’s “linear math” would also allow for a range of new possibilities, like more compact types of multisig solutions, nifty smart contract setups and, of course, Taproot itself.


After continued development throughout 2020, Taproot’s code was merged into the Bitcoin Core codebase in October, and will be part of Bitcoin Core 0.21.0, which is set to be released any day now, with release candidates currently available. Bitcoin Core 0.21.0 will not include activation logic for Taproot, however. This will likely be included in an upcoming minor Bitcoin Core release (probably Bitcoin Core 0.21.1).


The activation logic has itself been a topic of discussion throughout much of 2020, however, with a range of potential activation mechanisms under consideration. Most of these would initially leverage hash power coordination, to eventually reach a deadline where the upgrade activates even without hash power support. But as an October poll published by Bitcoin Core contributor AJ Towns made clear, not all Bitcoin Core contributors agree that the deadline should be pre-programmed, or how far out the deadline should be (as well as some other minor disagreements).


But regardless of which activation mechanism is ultimately chosen, it seems increasingly likely that Taproot can be activated smoothly through hash power coordination. In November, major mining pool Poolin launched an initiative encouraging other mining pools to voice their opinion on Taproot and Taproot activation. The response so far is very favorable of Taproot, with over 90 percent of total hash power in support, and no mining pools opposing the proposed upgrade.


For an even more extensive and detailed summary of Bitcoin’s 2020 tech developments, also see theBitcoin Optech 2020 Year-in-Review Special.


The post Bitcoin’s 2020 In Tech appeared first on Bitcoin Magazine.






Source bitcoinmagazine.com

Year in Review: The Top Bitcoin Stories of 2020



Bitcoin is bidding adieu to 2020. Here comes 2021, and while the past 12 months have certainly been difficult for people around the world, bitcoin has had one heck of a time. The currency has risen to new heights, has gained extensive attention and respect from institutional players, and is now viewed as a store of value by many people and sources.


As we say goodbye once and for all to what has surely been an upsetting and crazy year, let’s look back on some of the biggest bitcoin stories of 2020.


Bitcoin Price Hits New All-Time High


The asset that everyone has come to know – and love – reached a new all-time high of more than $27,000, beating out the previous record it set in 2017 by roughly $8,000. The currency was trading for over $19,000 about three years ago, but the asset has since put that price to shame, hitting all kinds of tall peaks during a year when our standard financial systems proved relatively convoluted.


With excessive overprinting of stimulus funds and inflation on the rise, many turned to bitcoin as a potential hedge tool. They now saw it as something that could keep their wealth steady during times of economic strife, and many people sought to add it to their portfolios, which is likely the reason behind the currency’s meteoric rise this year.


2020 Was the Year of the Institution


In the past, bitcoin was the object of affection for retail players, but this year, the tide turned, and many institutions began to see bitcoin as something that was worth owning. Companies likes MicroStrategy wound up putting several hundred million dollars into bitcoin, and later worked hard to raise money so it could buy more.


Many other firms, such as Square and Stone Ridge, looked to follow in MicroStrategy’s footsteps and ultimately sought to buy up as much bitcoin as they could, with Square buying more than $50 million in BTC units and Stone Ridge buying more than $100 million.


PayPal Says “Yes” to Crypto and BTC


The world’s largest online payment system announced to the world that its customers would be able to purchase digital currencies through its platform. In addition, they could also utilize digital currencies to purchase goods and services, thereby bringing the goal and ideals of the original bitcoin whitepaper to fruition. For many years, bitcoin was designed to be a payment coin, but had always been rejected in this department thanks to its ongoing volatility.


Now, however, thanks to PayPal, bitcoin is getting closer and closer to serving in the capacity it was originally intended for. Following the news, bitcoin’s price ultimately surged to a new high point in 2020, though it has since doubled that price. All we can do is hope that this good fortune lasts into the new year.


The post Year in Review: The Top Bitcoin Stories of 2020 appeared first on Live Bitcoin News.




Source livebitcoinnews.com

Vaneck Files New Bitcoin ETF Proposal With SEC Under New Administration





After successfully launched a bitcoin exchange-traded product in Europe, Vaneck has now filed a new proposal for a bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). Under former chairman Jay Clayton, the SEC never approved a bitcoin ETF. However, Clayton has resigned from his post and changes may be coming from the incoming Biden administration.


First Bitcoin ETF Filing After Clayton’s Departure


New York-based investment management firm Vaneck filed a registration statement with the U.S. Securities and Exchange Commission (SEC) on Dec. 30 to list and trade the Vaneck Bitcoin Trust. According to the filing, the sale of the fund’s shares will commence “As soon as practicable after the effective date of this registration statement.”


“The Vaneck Bitcoin Trust (the ‘Trust’) is an exchange-traded fund that issues common shares of beneficial interest (the ‘Shares’) that trade on the Cboe BZX Exchange Inc.,” the filing describes. “The Trust’s investment objective is to reflect the performance of the Mvis Cryptocompare Bitcoin Benchmark Rate less the expenses of the Trust’s operations.”


The filing adds that to achieve its investment objective:



The Trust will hold bitcoin and will value its shares daily based on the reported Mvis Cryptocompare Bitcoin Benchmark Rate.



This rate is calculated based on exchanges that the MV Index Solutions GmbH (Mvis) believes represent the top five bitcoin exchanges based on the Cryptocompare Exchange Benchmark review report. Vaneck Digital Assets is the sponsor of the Trust and Delaware Trust Company is the trustee.


“Barring a liquidation or extraordinary circumstances, the Trust does not intend on purchasing or selling bitcoin directly, although the Trustee may direct the Bitcoin Custodian to sell bitcoin to pay certain expenses,” the filing continues. “Instead, when the Trust sells or redeems its Shares, it will do so in ‘in-kind’ transactions in blocks … at the Trust’s net asset value.”


Vaneck Director of Digital Assets Strategy Gabor Gurbacs tweeted:



Bringing to market a physical bitcoin ETF in the U.S. is a top priority for Vaneck. We are committed to support bitcoin-focused innovation & continue to work with regulators & market participants to achieve that goal.



In November, Vaneck launched a bitcoin exchange-traded note (ETN) in Europe. “The ETN is physically-backed by bitcoin and listed on Deutsche Böerse Xetra,” Gurbacs explained.


The new bitcoin ETF filing came a week after former SEC chairman Jay Clayton resigned from his post on Dec. 23. Under his leadership, the SEC never approved a bitcoin ETF. President Donald Trump has named Commissioner Elad L. Roisman as the acting chairman of the SEC. Meanwhile, Acting Comptroller of the Currency Brian Brooks has warned that changes may be coming from the Biden administration. They may include some measures put in place by the Office of the Comptroller of the Currency (OCC).


Do you think the SEC will soon approve a bitcoin ETF now that Clayton is no longer the chairman? Let us know in the comments section below.





Tags in this story


Biden Administration, bitcoin etf, bitcoin etf europe, bitcoin etf us, bitcoin ETN, Bitcoin ETP, BTC ETF, exchange traded fund, Jay Clayton, new sec chairman, sec approves bitcoin etf



Image Credits: Shutterstock, Pixabay, Wiki Commons



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 bitcoin.com

Sasha Ivanov: Crypto Dollars and CBDCs Do Battle





By late 2013, it was clear crypto assets would be the future of finance. It was the first time bitcoin crossed $1,000. To the cypherpunks’ chagrin, central banks around the world began publishing warnings to curb the “decentralized genie” threatening the stability of the familiar system. First they ignore you, then they fight.




Bitcoin’s rally stopped short due to a lack of trust and high volatility, rather than any state intervention. That was when people realized crypto assets needed a bridge to financial world, based on our own terms. This was the impetus to create “stable cryptocurrencies,” or stablecoins.





This post is part of CoinDesk’s 2020 Year in Review – a collection of op-eds, essays and interviews about the year in crypto and beyond. Sasha Ivanov is the founder of Waves, a blockchain platform.





From that moment, two different approaches to stabilize crypto asset prices began to develop simultaneously: fiat-backed stable assets and algorithmic stablecoins. While central banks perceived cryptocurrencies as a potential threat to the stability of the financial system and their monopoly in money issuance, it wasn’t until recently that they began to research, develop and experiment their own digital currency (CBDC) alternatives.




While the tension between stablecoins and CBDCs has not come to a head, it is still present to the perceptive. Just look at how China, the European Union and the U.S. responded to the libra (now diem) stablecoin project, for instance. These asset groups, fiat-pegged and algorithmic stablecoins, will eventually compete directly with CBDCs to try to squeeze each other out of the market.



Stablecoins backed by fiat




The first and most common type of stablecoins are fiat-backed tokens on public blockchains, typically denominated in U.S. dollars. The most popular collateralized stablecoins are issued by cryptocurrency exchanges – Bitfinex’s USDT, Coinbase and Circle’s USDC, Binance’s BUSD and Gemini’s GUSD. Tether first appeared in 2014 and is the most popular “crypto dollar” today, with a market cap exceeding $18 billion. 




Issuers of fiat-pegged stablecoins typically claim these crypto assets are backed with real dollars, other cryptocurrencies and government bonds, with reserves held in a bank account. This is what preserves a token’s “dollar parity.” Tether’s price, for instance, rarely deviates by more than a tenth of a percent.




See also: Stanford Prof Darrell Duffie on Our Big Stablecoin Future




But it is not easy to verify the real backing of such stablecoins. One has to trust reports of the issuer, that is a crypto company often registered in an offshore jurisdiction, or the occasional attestation by a third party. (The New York State Attorney General’s office is investigating the company Tether’s claims about its reserves.)




Users of fiat-backed stablecoins hardly think about their real backing, as the ease of use exceeds all doubts and risks. The stability of their price is maintained by trust, without using the market or technical methods. 




The essence of “collateralized” stablecoins resides in a centralized issuer, an organization that bears economic and legal responsibility, and maintains fiat currency reserves in a bank account. In fact, these are not cryptocurrencies, but tokenized fiat – digital money on the blockchain.




Regulators have already managed to noticeably slow down the release of Libra




Conceptually, they are similar to payment systems such as PayPal. On the technical side, their main difference is the transparency of transactions, as they pass through public blockchains.




USDT has occupied a big niche in the real economy, as it facilitates international transfers  and enables market traders to send money easily from Moscow to China and to many other countries. Instant transfers, low fees and the absence of know your customer/anti-money laundering (KYC/AML) requirements in some exchanges made classic stablecoins a very convenient tool.



Algorithmic stablecoins




Algorithmic stablecoins appeared even before their fiat-backed cousins. The first instances were launched on the Bitshares blockchain back in 2013. They were backed exclusively by the blockchain’s basic token, BTS, but were found to not be stable enough. 




The most popular decentralized stablecoin, DAI, was launched in 2017, on the Ethereum blockchain. Its U.S. dollar parity is supported by market and technical mechanisms based on smart contracts that implement a price stabilization algorithm. Hence the term “algorithmic.”




An algorithmic stablecoin works on top of a public blockchain and is backed by a base cryptocurrency like ether (ETH). This crypto collateral  is locked into a smart contract and a new crypto asset is launched on its basis. Price stability is achieved by a CDP (Collateral Debt Position) mechanism with a collateral surplus of up to 50%, on average. When redeeming their tokens, users receive ETH back into their wallet.




Thus, with the help of price regulation algorithms, a stable crypto asset is created without the participation of fiat currencies and the necessity of connection to the traditional financial system. Algorithmic stablecoins work like cryptocurrencies. Unlike USDT and its analogues, they are decentralized and are not subject to a single issuer and regulators.




The crypto industry is now dominated by collateralized stablecoins. And while they are capable of maintaining a dollar peg, algorithmic stablecoins can be quite volatile during crises.




Algorithmic stablecoins are widely used in the DeFi industry, but they cannot yet go beyond it. They have yet to be used in real economic operations.



State and bank stablecoins




In late 2013 and early 2014, most central banks issued initial statements and warnings about crypto assets. But it wasn’t until Facebook pitched libra, that they really kick-started their own digital currency R&D.




As of this year, there are nearly 50 ongoing central bank digital currency (CBDC) pilots or research projects. A CBDC could be a natural progression of money, as central banks are already familiar with running cashless transactions, with the benefit of increased financial transparency.




The main advantage of private bank stablecoins is the large distribution, user base and strong reputation of traditional financial institutions




Earlier this year, the European Union, Great Britain, Canada, Japan, Sweden and Switzerland, together with the Bank for International Settlements (BIS) and the Financial Stability Board (FSB), began work on a joint study and coordination of the issue of CBDCs. In 2021, experiments with CBDCs are expected to begin in the European Union.




In October, the Bank of Russia presented plans to create a digital ruble. And in China, a pilot project to test the digital yuan in the real economy is already underway. The U.S. Federal Reserve has been conducting research for several years, but dates for the issue of a digital dollar have not yet been determined.




See also: 6 Central Banks Form Digital Currency Use Case Working Group




With the release of CBDCs, central banks strive to create a controlled, secure and stable monetary system that will reduce incentives for the creation of cryptocurrencies and other private money. CBDCs will be supported by central banks in the same way as national currencies and will have the status of legal tender.




So far, two state cryptocurrencies have been issued. Venezuela was the first country to release a state digital currency, called the petro, in 2018. However, its turnover is not transparent and its collateralization and use in the real economy are seriously questionable. In late October, the central bank of the Bahamas released its “sand dollar” CBDC. It is regulated similarly to the Bahamian dollar and is accepted throughout the island state.



Trends in stablecoin development




From the end user’s point of view, CBDCs and bank tokens are very similar to fiat-backed stablecoins. Therefore, these three asset groups will compete directly and try to squeeze each other out of the market.




The main advantage of private bank stablecoins is the large distribution, user base and strong reputation of traditional financial institutions. People will use them like other banking products, in the same applications. That’s why stablecoins issued by private companies, such as jpmcoin and libra, are causing serious concerns for regulators.




Given that, traditional crypto stablecoins may not be needed. They are likely to survive but will be under a lot of regulatory pressure and their volumes will drop significantly. Their functions will be taken over by banks and CBDCs.




CBDCs have the strongest positions thanks to the administrative resources behind them. Regulators have already managed to noticeably slow down the release of libra, and perhaps this token will not appear on the market until all legal issues are resolved. The state will aim to completely overtake the niche of “blockchain digital money” as it does not need any outside players in this area. This process is already underway in China at the level of a pilot project – millions of Chinese in several regions are using the digital yuan, and their number will only grow. 




Wide spread of CBDCs and elimination of cash are very interesting prospects for governments. This is the real basis for a modern financial infrastructure of the state in the 21st century, where it has full control over all transactions, cash flows of individuals and of companies.




There is no need for physical audits because all the transactions are made visible by the technology behind them, making it impossible to hide anything. More central banks will sooner or later adopt this concept, with different levels of control and possible privacy for citizens.



Strengthening control




The crypto community will respond to the strengthening of state control with new and improved decentralized stable crypto assets. It is in uncertain situations that algorithmic stablecoins, which do not depend on banks and regulators, can prove themselves. 




There is a need for cryptocurrency stability mechanisms built into blockchain architectures, and for cryptocurrencies with an inherently stable price, rather than a superstructure built over already volatile instruments. 




In the crypto industry, they will take over the functions now performed by USDT and other collateralized stablecoins. They will become true stable cryptocurrencies, rather than just digital money.




To create them, similar mechanisms  to traditional bond markets are possible, just like the dollar is supported by treasury bonds. To do this, a token must be issued on a blockchain with already built-in stability. Such mechanisms have not been developed yet. 




See also: Marcelo Prates – Central Banks Had to Up Their Money Game This Year – And They Did




On the other hand, against the backdrop of the pandemic and accelerated money issuance with governments worldwide, fiat currencies are depreciating more and more quickly. As such, the idea of pegging cryptocurrencies to declining fiat currencies becomes a dangerous play. In this case cryptocurrencies that withstand the volatility of fiat, that will be developed  in the next five years, reach the global scale and become the basis of a truly decentralized financial system.





Year in Review is a collection of op-eds, essays and interviews about the year in crypto and beyond. 








Source coindesk.com

What Is a Satoshi?



On today’s holiday episode of Markets Daily, we take a look at the term “satoshi,” its origin, what it means and why it matters.



Source coindesk.com

Low Circulation and High Demand at Opening of SCU Trading





PRESS RELEASE. Securypto trade will open on Bilaxy on 1 January, 2021 and all indicators say that it will start off strong given the high demand for it alongside the low circulation of the coin as pointed out by Securypto team. There will be only 410,000 coins available for sale when it starts trading on Bilaxy.


On top of that, another 750,000 coins have been recently burned on 28 December, 2020. This news alone has made investors pay more attention to the potential Securypto has on the market especially since the SCU coin is one of the few coins that actually has a use case.


Taking in consideration the scarcity of the coin, it is expected by the Securypto telegram community that the value of the coin will increase by time in both short and long term in their recent poll.


Securypto has raised almost $100,000 before the exchange opening which is an astonishing feat on its own these days, long past the days of ICOs. This signal clearly shows how strong the community and investors believe in this project.


Bilaxy


Bilaxy support has quite been unprecedented, “Bilaxy has always been the home of crypto hidden gems, and we are happy to support more promising blockchain projects with our various financial services like trading, staking and more. Anonymity is a scarce commodity in this day and age and we have seen Securypto’s potential to develop a model where you take back control of your data and send and receive truly anonymous encrypted data.”


About SCU


SCU, which stands for Securypto Token, is a utility token that enables users send and receive encrypted messages and data with it’s app DigiSafeGuard. The app itself already allows you to do that but the utility token enables an anonymity layer on top of it which makes it a perfect instrument for everyone that cares about their privacy to send and receive data.


Early feedback from early adapters shows that mostly people who live in restrictive countries make use of this application like North Korea and places where censorship is very high and freedom of speech is a luxury where Securypto has given them a voice.


Whistleblowers have also commended it’s ease of use and high level of encryption and how it makes it easy to use as Whatsapp but the moment you send the message it looks like your message goes into a wormhole and the receiver gets the message and no one can discover the path it has taken from sender to receiver making it impossible for anyone to track the message or decrypt it.


It comes then as no surprise why both the community and investors have been excited about the development and launch of SCU/ETH trading on Bilaxy exchange on 1 January, 2021.


 



This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not 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 the press release.


Image Credits: Shutterstock, Pixabay, Wiki Commons







Source bitcoin.com

Tether (USDT) To Face Do or Die Situation in 2021: Messari Report



Tether is the cryptocurrency industry’s biggest threat in 2021, says a report penned by Messari’s Founder Ryan Selkins.


The 134-page thesis ventured into the stablecoin’s emergence as a proxy for the US dollar that helps crypto traders getting in and out of their positions quickly on exchanges. It also focused on the controversy that tails Tether following the New York State Attorney’s class-action lawsuit against its founders and a sister cryptocurrency exchange BitFinex.


Boom Against Gloom


Lawyers Vel Freedman and Kyle Roche alleged in their October 2019 filing that Tether defrauded its investors, manipulated the cryptocurrency markets, and concealed illicit proceeds. They added that Tether printed billions of dollars’ worth of USDT stablecoin to artificially inflate the price of Bitcoin, Ethereum, and other cryptocurrencies.


But the market largely ignored the warnings. Tether’s market capitalization soared from $4 billion in October 2019 to $20.9 billion in December 2020. Mr. Selkins noted that the exchanges largely boosted Tether’s popularity in the absence of any other voluminous alternative. However, the situation could change in 2020.


Bitcoin, cryptocurrency, BTCUSD, BTCUSDT, Tether, USDT
Tether market cap. Source: USDT on TradingView.com
Tether market cap. Source: USDT on TradingView.com

The research analyst discussed the worst-case scenario for Tether and BitFinex, citing the “dual lawsuits” against BitMEX filed by the Commodity Futures Trading Commission and Departmnent of Justince. He stated that an active investigation against the crypto derivative exchange caused its users to migrate towards alternative platforms.


Fearing the same could happen to Tether, Mr. Selkins presented a polar opposite Tether outlook for 2021 — a do or die situation as its market cap continues to grow amid an ongoing cryptocurrency market rally led by Bitcoin.



“Tether will either have an existential crisis or double its supply again in 2021,” he wrote. “There doesn’t seem to be a middle ground.”



SEC Investigation Rumor


Following the Securities and Exchange’s lawsuit against Ripple and its grossly negative impact on the firm’s native token, XRP, many agree that the Tether’s USDT could suffer a similar fate. But for that, the US Treasury needs to categorize stablecoins as securities.


And that is looking to come true. A Twitter user @RealWillyBot shared details about a DoJ order that ruled stablecoins as securities. He shared a screenshot that read:



“Depending on its design and other factors, the stablecoin may constitute a security, commodity, or a derivative subject to the US federal securities, commodity, or/and derivatives laws.”



If the proposal becomes a law, then USDT will become a security token. That could shock the cryptocurrency markets on the whole due to its overly addiction to the stablecoin that coughs out an average of $77 billion worth of transactional volume every day.






Source newsbtc.com

Why This VC Expects Altcoins to Boom as Bitcoin Rally Enters an “Extreme”



It’s no secret that Bitcoin’s recent parabolic rally has done little in the way of providing tailwinds for altcoins, with many seeing devastating losses against BTC as their growth stagnates.


This isn’t unprecedented, as past bull runs have followed a similar path, with BTC leading the way and rallying independent of the rest of the market, followed by a capital rotation event that sends altcoins flying as BTC drifts lower or consolidates.


There’s a strong possibility that this will happen again in the future, but it only remains a question of how long Bitcoin will rally and how high it will go before altcoins can gain some momentum.


One venture capitalist believes that the market is nearing the point at which a rotation from BTC and towards altcoins will occur.


He notes that sentiment surrounding Bitcoin can be characterized as no less than “general greed & fomo,” noting that this could be emblematic of a local high.


He also notes that altcoins have been undergoing sheer capitulation as their investors chase after the Bitcoin rally, which typically occurs just before these tokens boom.


Bitcoin Rally Puts Altcoin Holders on Edge


Bitcoin has been relentlessly climbing throughout the past few days and weeks, with its ascent even catching its most loyal supporters off-guard.


A combination of mounting retail demand and institutional demand is the likely suspect behind this rally, which has caused its price to run from multi-month lows of under $10,000 to highs of nearly $30,000 that were set last night.


This rally has not been too friendly to altcoins, as most have declined significantly on their BTC trading pairs over the past few months.


This has created a generally negative sentiment around altcoins and has also sparked some capitulation.


VC Claims Altcoins are About to Boom


Matt Kaye, crypto-focused venture capitalist at Blockhead Capital, explained in a recent tweet that he is slowly converting his Bitcoin to altcoins, noting that he expects an imminent flood of capital away from BTC and towards its smaller peers.



“I’ve starting selling BTC for alts over the past 7 days and will continue to. The extreme nature of this period is why. I’m betting on: – Extreme mrkt positioning – General greed & fomo – ALTs being under owned as holders capitulate for BTC – Cyclical nature of the market.”



If this transition from Bitcoin to altcoins does occur, it will confirm a trend seen during countless other crypto bulls markets, where altcoins strength is inversely correlated with BTC’s.


Featured image from Unsplash.
Price data from TradingView.





Source newsbtc.com

Teddy Fusaro: Why Crypto Crosses 'The Chasm' in a Post-Coronavirus World





It is often said that Julius Caesar brought the Roman Republic to an end when he crossed the Rubicon River with the 13th Legion of the Roman Republican Army on Jan. 10, 49 BC, starting the civil war that would leave him dictator. 





This post is part of CoinDesk’s 2020 Year in Review – a collection of op-eds, essays and interviews about the year in crypto and beyond. Teddy Fusaro is chief operating officer at Bitwise Asset Management, a crypto asset management firm. He previously held positions at IndexIQ, Direxion Investments and Goldman Sachs.





But Caesar accurately believed the Republic had by that time become only a name, its spirit and essence hollowed out by decades of attachment to the status quo, corruption and internal strife.




Like 49 BC, 2020 will be looked back on as the year that marks the present era from the past; the demarcation line separating the before and the after. It will be remembered as the year that everything changed.




The COVID-19 pandemic that left millions of humans sick and dead, shocked the global economy to a sudden halt, grounded all airplanes, put millions out of work and froze people in their homes for months on end will be remembered as the “Rubicon moment” that left the world indelibly transformed. 




But as with Caesar’s claim that the Roman Republic had already transformed before he crossed the tiver, the truth of 2020’s change is much more nuanced, too.







Caesar by Adolphe Yvon (1875)
(Creative Commons)



A world ripe for change




Geopolitical tensions between the United States and China have been growing for decades.  




The relationship that we as individuals have to each other and the methods by which we communicate, work and interact have been undergoing changes since the advent of social media in the early 2000s.  




Trust in government and traditional institutions, including the way we consume news and media and from whom, has been eroding at a quickening pace for years.




The “Overton Window” of acceptable policy positions related to government deficits, spending, taxation and monetary policy has been opening wider since “quantitative easing” arrived en masse 12 years ago, allowing previously radical ideas to flow into the mainstream.




The world has been furiously accelerating towards digital, mobile and virtual modes of speech, spending, living, loving and warring for most of the last 20 years.

The COVID-19 pandemic of 2020 hastened the transitions, filling a vacuum that only needed a spark to ignite the flame that would become indefinite change, pushing the world across the Rubicon. A more resilient Western world would have already embraced the technological changes now being foisted upon society by the pandemic, and would have been more easily able to handle the public health and economic-financial fallout. 




The Russian Communist revolutionary Vladimir Lenin said that “there are decades when nothing happens, and weeks when decades happen.” In many respects, 2020 has been a year of decades.




As this year has pulled forward the newer ways in which we work, meet, live, communicate and even vote, so, too, has it pulled forward the ways that we spend, save, invest and plan for the future.  



Meet the moment




It is unsurprising then, in that context, that bitcoin and cryptocurrencies have also crossed their own chasm in 2020.  




Commentators often miss the connection but as other norms and institutions evolve into their future digital, mobile and virtual shape, so, too, are norms around banking, financial services and investing. The interrelationships between decentralized systems like Bitcoin and Ethereum and these dynamics are too often misunderstood or underappreciated.    




In the pantheon of business literature that describes America’s Silicon Valley, Geoffrey Moore’s “Crossing the Chasm” is perhaps the most frequently referenced work on how new technologies achieve adoption.




According to Moore, each disruptive technology must go through five stages of adoption: starting with tinkering “innovators” who first try new technologies, through the “early adopters,” to the “early majority” and “late majority” – the two biggest groups – and finally, to the “laggards.”






Source: Teddy Fusaro


It is striking how regularly and routinely this roadmap has played out in technology after technology. The most critical stage of Moore’s framework for these journeys is what he terms “the chasm.” The chasm yawns between the “early adopters and the “early majority” because there is a step-function difference between the demands of these two cohorts. This is often where new technologies go to die.  




Bitcoin and crypto may not have been ready to jump across the chasm yet, but the long year of 2020 that propelled the world across the Rubicon pushed cryptocurrency across its adoption “chasm.”  




As investors and policymakers grapple with the changing dynamics of the developed-world monetary responses to the crisis alongside furious technological changes, giant financial companies like PayPal have also put crypto at the fingertips of every consumer. Crypto startup exchange, custody and trading platform Coinbase now has more user accounts than financial giants Charles Schwab, TD Ameritrade, E*Trade and Interactive Brokers combined. The Chicago Mercantile Exchange’s bitcoin futures derivatives contract has become the largest and most active bitcoin trading market in the world, previously the dominion of unregulated and un-domiciled platform operators. 




Meanwhile, we have seen myriad other indications of step-function developments. JPMorgan embedded crypto as an asset class on Wall Street. Fidelity began to hire broadly, building out its crypto product suite. Square announced large technical development grants for engineers to work on bitcoin as its bitcoin offering bolstered its financial performance. Central banks announced they would build their own digital currencies. Endowments invested over $750 million with venture managers within the space. 




On the regulatory front, while frequently misunderstood, significant breakthroughs have emerged despite the near-sighted interpretation of many industry participants.  




The Office of the Comptroller of the Currency (OCC) concluded that federally chartered banks may provide custodial services for cryptocurrencies, finding that providing crypto custody is a modern form of traditional banking.  The Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of the Treasury, proposed new rules related to “unhosted wallets” that, while philosophically contra to certain core bitcoin principles, does not reach as far as many feared it would. The Securities and Exchange Commission announced that its Strategic Hub for Innovation and Financial Technology (or FinHub) would become a standalone office and brought or concluded several high-profile cases in the space. 




The drumbeat of clarifying and confidence-inducing enforcement action from the SEC and the U.S. Department of Justice has continued to push the bad actors and felons to the margin, creating a safe space for innovators and developers to play by the rules. The U.S. financial system is the envy of the world in large part due to the integrity of its markets, the sanctity of its laws and the sophistication of its regulatory agencies.  Although changes in this sphere move more slowly than innovation itself, the importance of each additional piece of clarity, independent of opinions on the rules themselves, cannot be overstated. 




Despite certain loud industry voices crying foul, the regulatory activity of 2020 has further laid the foundation for the future success of crypto and related businesses in the U.S.



A reason for optimism




The global cross-currents of 2020 have been both turbulent and severe. The world has been shaken to its core. The first global pandemic in a century has mixed with a torrent of necessary technological adoption, causing all of us to adapt in different ways. These broad themes have put a spotlight on the power, resiliency, trust and immutability of decentralized public blockchains like Bitcoin and Ethereum. These public blockchains have emerged in stark contrast to our hollowing social, political and economic moorings, revealed as brittle and weak by the change brought on by the public health and economic crises.   




The ideas inherent within Bitcoin and other open-source blockchain networks offer an alternative and hopeful vision for Western liberal and classical American values to mature into a fully digital future. Bitcoin is based on the enduring ideals of free speech, freedom from censorship, self sufficiency, opportunity, resiliency and the right to privacy.  It is with great optimism that we should view this acceleration of crypto’s maturation due in part to 2020’s global transformation. 




2020 was the year we will look back on and believe we crossed the Rubicon. But the truth is that COVID-19 emerged into a world overdue for a watershed moment. The foundational transformations had long since manifested conditions ripe for such transitions, a system rotted through from years of bureaucracy, infighting, cronyism and resistance to change, much like the Roman Republic that Caesar marched upon in 49 BC.   




While 2020 closes, as ever, the future remains vague. But what is clear is the analog world is behind us. The future is digital, mobile, distributed, trust-minimized and immutable. In 2020, the world has crossed the Rubicon and cryptocurrencies have crossed the chasm.  









Source coindesk.com

The Legacy System Vs. The NFT Metaverse



This is an intermediate to an expert level article on NFTs. If you only want to understand the first things about it, scroll to the end, or alternatively find a beginner level feature.


Everybody wants big-league gains but ain’t willing to do what it takes to deserve it.


We have a pandemic level cultural illiteracy and incentive model problem, threatening the promising start of the crypto and NFT art movements. The, mostly unconscious, skewed foundational motivation bends will soon bite it in the butt, but some of us can pre-warn some people open to listening.


The whole thing stinks of the 2017 ICO boom so much that, while I like, and even need to party, I can already hear the next three years of ‘NFTs are a scam’ bile happening due to the ongoing, somewhat self-inflicted, starry-eyed, and delusional stripper money excitement.


I’m an artist, not a critic, but there isn’t anyone here to do this job, so without mentioning names, I’ll give it a go. This hopefully will show what it takes, should a real emerging critic take the job, and why I shouldn’t do it, even if I can. It’s a tall order though, as they will need to have an understanding of art history, economics, technology, and the culture wars. The reason I can say this is that I had to figure out why the previous experiences in the legacy art world were so hellish for an innovator, and why I was equally optimistic three years back about crypto.


Sure we are the beginning of a digital revolution, but it’s increasingly, ideas-wise, looking like old mediocre bullshit in a new wrapper celebrating the same old money hype – at the expense of its actual potential impact of liberating a whole class of creative people. This article is an attempt to raise the bar of the current conversation resolution in a culturally significant way, so it will undoubtedly ruffle some feathers.


I don’t claim to be the most technically savvy person, and that part of NFT’s seems to be doing fine. Some say only trust the swarm intelligence, and I would if I saw more evidence of it from the expression side, however. I’ve fought for too damn long and too damn hard just to let this slide – so here goes a hail Mary. If nothing else, consider it a cathartic last thing of 2020, from which we can all bounce into a further upward cycle well.


Release Us From Metaverse Spin


So no one needs to be on the defence any more than they have to, please allow me to state why this is caused by all of us together, and it started before any of us were even born. It’s not the fault of the artists, the collectors, curators, absent critics, corporations, the institutions, the ideologies, the banking system, or even the Jungian shadow in us all – well, maybe quite a bit the last one.



Defiance of authority is cool, but is something being lost in translation?


As most of the sales are now focused on the US, we need to acknowledge important historical, ideological & world culture aspects of recent centuries, and decades. As an outsider familiar with American culture, this is easy to see. In many ways, I feel more entrepreneurial than European, so this is not coming from a hater perspective. I grew up with Ghostbusters, The Blues Brothers, Star Wars, James Brown, and much more like the rest of us – perhaps relating to it more than most in Finland.


The rebellious innovation nature of the American culture is, that what is seen as an inheritance of Kings & Queens, is elitist crap, and we can make billion-dollar companies wearing jeans and t-shirts. This is especially true in the Silicon Valley tech culture. It is now also famous for wanting to look good for the cultural left while strip-mining everyone’s data, making untold fortunes without paying taxes & limiting freedom of speech rights. There is a simultaneous disdain for so-called ‘high-culture’ as well as a yerning for credibility, which is now causing cognitive dissonance and despair for the rest of us.



The Premature Death & Potential Rebirth Of The Word NFT Art


One of the first things you learn in art school you learn – or you used to learn before the culture wars took it over – was that this is not a pipe. The above is a picture of a pipe. The image points to something and is not the thing itself. Even if it has fancy light effects and you make it into a short animation. The Derrida‘s of the world, however, made the signal more important than what it was pointing to, so here we are.


The Rene Magritte work points to the naive realism now taking over the movement almost fully. Due to the western neo-Marxist revolution, this is now elitist talk in Europe, too, but is very connected to evaluating NFT art, and for it to grow into adulthood. The ‘neo-comms’ of course don’t like it that there is talk of their revolution, so likely some will attack it as a conspiracy theory by them, and those clueless of its influence. I’ve watched all the same activist documentaries, were heartbroken over them, and more, but this is way out of hand now. To some, this camouflage crap simply won’t fly anymore. The price these Children of corn are asking for letting them freely further erode western society, alongside the financial fiat money system, is simply too high. It’s not their fault, but they aren’t capable of knowing what they were indoctrinated into. Before calling me a right-wing pundit, however, please at the very least check out this solar energy activist art project called LUX, which took me 3-years to make. Entering crypto after making it, balanced a whole bunch of things out, that you simply don’t learn in a left-wing university, like mine was and still is.


Vesa, what the hell are you on about?


We are just getting started with NFT’s, and it’s going great!


No one needs critics. They are so negative.


Right?



The Iceberg NFT Analogy


To trust in naive optimism is cute, but if we want those big league gains to come from something not resembling intellectual death and/or pure wash trading, the culture wars underneath the visual part of this emerging space needs to surface. We now evaluate, and mostly reward the works presented by the artists on an embaressingly superficial level, leaving out the spectrum almost entirely what the underlying culture is. Of course, due to what collectors now recognize as ‘brilliant’ are mostly ideas done to death in the legacy art world, and has anyone innovating actual new things with authentic voices rolling their eyes. Just because you tokenize an old idea, calling it genius is what keeps us from getting credibility for actual innovation. You also can’t wash trade like crazy, while saying blockchain solves old world problems.


I’ve made myself persona non-grata in many circles for having pointed some of this out since the beginning. Artists, collectors, and platforms are made of people, and people seldomly like critique – especially if it comes from other artist – so the sycophantic cycle is now on autopilot. It’s just that someone has to state the obvious flaws of it all, since we don’t have any actual new wave, integral NFT critics in this space yet.


Just know, btw, that this comes from the perspective of someone who innovated in the legacy system for a decade before crypto, at a great expense to my finances, mental health and faith in humanity. It really was the worst, jaded, insider world designed to keep innovation out, rather than embrace it. This is part of the reason I’m writing all this. I’m seeing the same crap enter this world now. I’m sure I still have many blindspots, but my on-the-spectrum Aspergers allows me some true definace to this direction.



Camille Paglia, the The Dark Women, Stratford Festival Forum lecture on Youtube.


Nobody Is an NFT Critic


To substantiate the love of US from an intellectual standpoint, much of my education comes from learning the lion’s share of my mindset from arguably one of the most comprehensive philosophers of all time, Mr. Ken Wilber. He is the father of integral theory, which is by far one of the most credible models for us to get out of many of the jams we are currently in. The trouble is, most haven’t even heard his name. He, of course, borrows a lot of his insights from the great Eastern traditions, so there is a merry-go-round in the spirit of Bruce Lee going on with him. If someone says the word integral, and it won’t include the whole world, that ain’t it.


Spirituality, as pointed out by Sahdguru, is likely even more corrupt of a word than art, but just because the word has eroded, it still keeps pointing to the real thing. Without this grounding, I would have surely been beaten down by this world many times over by now. The reason this matters, is that art has it’s origin foundations in religion, and we all know what has happened to the insititutions of that realm. If you don’t think this has anything to do with NFT’s, please allow me to elaborate.



The other, massively important person to follow, is another US native Camille Paglia. She has outlined the problems of the education system, cultural decline, and intellectual suicide for decades. We simply have nothing like these two as any kind of influence on our emergin NFT scene, and we should. They are not the low resolution perception on what a bad, technologically clueless, financially illiterate, and void of vision critics of culture are now seen as.


There are phenomenal use cases of visualization and tech adoption happening in the NFT space. It has legitimate doubts about the legacy world entering, embracing, or imposing any of its ways into it. Like Camille says, the current art establishment only leaves out the religious roots of art, ancient Egypt, antiquity, the enlightenment, societal & natural sciences, non-propagandist history, and political nuance from it’s current evaluation model.


However, this is what is now being used as a watered down version of credibility footnotes to know which artists are ‘innovative’ from a cultural standpoint. It leaves many with real innovation, substance, and authentic voices competely out to dry. I don’t only mean those maybe thinking about entering, but some of us still sticking around.



“At particular times, a great deal of stupid people have a great deal of stupid money” – Walter Bagehot, Economist, 1859


The problem from the last ‘develpments’ of the legacy art world were brilliantly outlined by the BBC “The Great Contemporary Art Bubble” documentary, how many newly rich people wanted shiny things, and the art world printed their fiat crap to suit them – making billions in the process. The second part is the cultural Marxism embrace, largely due to the nihilistic financial future of us all, as the monetary system started it’s death spiral in 2008.



Let’s collab, Bro!


Let’s get another disclaimer out the way. I have nothing against great collaborations, nor being communally social. I come from a film background, in which you need a 100 people to pull something off. If people can compensate for the lacking skills they have in certain areas, they can do increasingly incredible things.


The inheritance of the legacy system degeneration is that the artists are now meant to be seen as people who ony help each other – while actually struggling towards the top sales in a super limited collector space mostly ignorant of art. The inherent conflict needs to exclude acknowledgement of the competition aspect inside it at all, as well as the pandering to people who don’t know what to demand for their money. The amount of knives stuck in various backs, including mine behind the scenes, aren’t stories they write about on Cent WIP’s or community Whatsapp groups. It’s straight from the communist playbook of ‘what we will say and what will actually happen’. The whole output of the so-called Intellectual Dark Web will help you understand this paradigm, should you want to get it on a deep level.


This leads me to the collaboration hype model, which is now prominent, and a hangover inheritance of the post-modern neo-communists hijacking the cultural space, in which art almost solely serves ideologies and causes in the big picture. This is why we have people making statements like ‘everything is political and about oppressive power’. It’s the death of art, and it’s been going on for a while. There are many reasons to write this, but what is now happening almost entirely unnoticed, is that the worst aspects of the legacy corruption, are now seen as intellectual footnotes of validation to a space trying to entirely re-invent the wheel. They look down upon everything in the legacy system, quite frankly, because they don’t understand it and vice versa. This is why the below the water line iceberg matters. You see, these corrections will eventually come from the outside if we don’t do it from the inside. We won’t have a say in the matter, and it will be a whole lot more embarrassing if it comes from the outside in.



The Flow State


You see, I can only be seen as being supportive and appraising of my fellow artists, even if they blatantly rip me off, use absolutely done to death concepts, fool investors with facepalm level concepts, etc. The reason I want critics to come in is that someone has to do the dirty work of separating the actual seeds from the sea of dry intellectual land, or we all suffer. Anyone who knows what has been done to death, won’t be impressed by something that was revolutionary 50-years back. The more accurate pointer can’t be me, as that would cost me even more than this has already cost me now. It would further alienate investors, make enemies out of my fellow artists, and give me a ‘negative aura’. The truth is, I’ve even been so nice that I haven’t named the other artists I could easily prove ripped off my concepts, art, and process thus far.


The truth about human development is that we require both challenge and support to grow in an equal measure. Inside the community, we have plenty of support for one another, but all emerging critics have been removed as soon as they started pointing things out. There is plenty of real challenge of finance, education, and platform development, as well as artistic expression progress, but we have come a long way. This is the real love coming from me to write this all. The quality improvement last year alone was a light-year leap from the previous.



Crypto killed the gallery star NFT by Moxarra Gonzales


The NFT Machine



NFT’s end the dark ages of corporate servitude for digital creatives as we have known it since the beginning of computers. It also does the very counter-intuitive thing to end the era of computers mostly being good for replicating things endlessly.


It also ends an era of ideological servitude to the culturally dominant and oppressive narratives like the ever-present postmodernist one. Should you want to know what I am talking about, please refer to this talk with Jordan Peterson & Camille Paglia. Kid gloves are removed, and that is one of the best things to happen to art in a while. It will also put into context in a much more direct and brilliant way everything I was trying to say here.




The best way to describe the revolution is to juxtapose it with the arrival of MTV in the ’80s. The youth culture, opportunity, and feel of it swallowed all criticism, like the Dire Straights song, and birthed a creative renaissance. This time though, the context is much wider involving digital land ownership, digital art, digital permanent certificates for physical things, avatars, game items, brand collectibles, and things we’ve yet to imagine. This is not lost on me, but also, what the MTV culture started, was a rebellion that has now been done to death also. The culture rebelled so much, that it now hasn’t a clue about what it is rebelling against, leaving it feeling mostly just vacuous. The crypto art movement, for those of us who were there in the beginning, meant an army of artists fighting for a new money movement to help the world re-open its blocked arteries. The corporate overlords have now all but removed all traces of it in the Wikipedia page, and you can but wonder about the audacity this moderator does it with.



Neo-Conservative Elements in Art


I’m a nude bodypainting, tech & innovation loving, crypto, meme, and pop culture embracing progressive human, who embraces various spiritual concepts. This said, the new rebellion has conservative elements, that are now the direction out of the nihilistic youth culture of the ’80s and 90’s continued to the opioid epidemic. As much as I love the 60’s counter-culture figures, they are mostly now, invalid for what real liberals actually need. The rigor mortis conservative relics still do, but they aren’t here to listen to anything I have to say anyway. The new liberals need financial literacy, crypto, Austrian economics, a balanced perspective, and some real patience with their own team.





“The only way to make sense out of change is to plunge into it, move with it, and join the dance.” – Alan Watts


Ends and Means


So, what have I done in order to feel like someone who can point this out? I actually managed, in the eyes of art history, to renew the process of portrait painting into a new visual language, and digital originals in 2008. That was also the year I made my first pricing innovation and was featured in Finland’s two top economic papers about it starting 2009. I’ve been a full-time crypto artist now for 3,5 years, with various pushes of boundaries, and my tokenized NFTs aren’t currently selling.


I was also left out of the recent Decrypt article on NFT innovators, and even my limited edition 1 ETH works aren’t currently flying off the shelves. Nifty gateway won’t have me on their platform, and Async art denied me access too, despite the obvious compatibility. I wonder why because it’s not that they aren’t aware of my efforts. Is this more of a shame for the space, me, or both? Do you think any of this can actually be rectified?


I’m saying that to pre-empt some of the most vacuum filled criticisms laid towards the substance of this article, so you wouldn’t have to deal with the arguments. Is it all coming from an upset point of view? Perhaps some. But if you would have been in the trenches for as long as I have, paid the price I have, and having to watch your favorite new thing make massive side-steps – can you blame me? I’m as in love with this space as you are, but it’s really starting to become a new almost one-sided thing.



Please consider this to cap this off. What the above quote from the Integral Insititute feature from 2014 means, is that basically managed to integrate more expression, cultural significance, and innovation to my works that the biggest names in Western art history, now selling for hundreds of millions – as acknowledged by one of the rare professors left able to do the evaluation of that level. I also reached 300MM people with a project featured in that article due to its cultural impact. I climbed the heavyweight tallest mountain, only to find out almost no one cared. So this is all deeply personal, sure. You could say I’m furious at times.


So, what I am selling really?


No, seriously, I’m done writing culture.


No one paid me to do this.


I’m not claiming immunity to all things mentioned above.



Metaverse AND the Physical Space


I’m also building a physical studio space crossing over to the metaverse with the company Coloro. There are 9 of the 10 NFTs left to help support the build of it, now tokenized on Mintable. The link is to the second one, and this will soon get its own promotional article. The space in its raw form can be seen in this Brittany Kaiser interview with Hardforking, and if you want to further understand the NFT space, have a listen to this Encrypted episode with Ahmed recorded in Dubai a couple of weeks back.



Redemption digital art NFT for sale on Superrare


I think this article will age fairly well.


Stay cool, folks.


V E S A

Crypto Artist

Official Pages:
Crypto Art
Artevo Platform
Twitter Insta LinkedIn






Source newsbtc.com

MahaDAO’s Algorithmic ‘Valuecoin’ Goes Live on Ethereum

An India-based startup is coming for decentralized finance (DeFi) stalwart MakerDAO’s crown with the launch of its new “valuecoin.” MahaDAO...