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Does Bitcoin (BTC) Really Solve a Problem?

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Bitcoin (BTC) has been hit hard in recent weeks. From crash to crash, he hardly keeps his head above water. The “King of Cryptos” fell to around $18,500 at the end of June 2022. We are a far cry from the rich times when BTC was at its peak and peaked at $68,000. The question arises, and it is legitimate. Is bitcoin (BTC) the solution?

Grayscale shot of a suited lion with a bitcoin coin necklace and finance graph background

The fall of bitcoin (BTC) and cryptocurrencies

Cryptocurrencies fell rapidly. The stablecoins turned out to be unstable. Like with a big hangover, the blockchain universe is struggling to recover from its bad awakening. This is not good news for DeFi when the industry that was meant to replace traditional finance is now trying to centralize and raise funds to stabilize. Bitcoin in particular has suffered the worst reviews. It has always crystallized the detractors of cryptocurrency. We can quote quips in tuft. ” Bitcoin is a rat’s death signed Warren Buffet. “The super coders of the shadows Elizabeth Warren. ” destabilize nations Hillary Clinton. “Bitcoin looks like a scam launched Donald Trump. “Personally, I think bitcoin is worth nothing Jamie Dimon. We could go on like this for hours. ” A Ponzi scheme », « Energy waste », « It has no cash flow »…

The intrinsic value of bitcoin (BTC)

Let’s put all the muck dumped against Bitcoin aside. We have to go back to the basics. We must go back to basics, that is to say review the original idea and the objective of bitcoin. The first step in identifying the added value that bitcoin can offer us is to accept and recognize that there are problems to be solved. If no one thinks there are problems with the current status quo, then bitcoin will always be a “waste of energy” and a “Ponzi scheme”.

Numismatics and bitcoin (BTC)

Do you know the numismatics ? This is the name given to the science that deals with the study of currencies in history. Including coins, medals, tokens and medals. Indeed, the concept of money is not new and has been around since around 5,000 BCE, when the ancient Mesopotamians introduced the shekel as their currency. Numismatics can thus help us to better understand the problem. Beyond the Mesopotamians, many civilizations used shells or stones as currency. Finally, whatever the medium used, gold, silver, pewter, shells, stones, money reduces the need for creating trades and daily barter. We can’t barter all day, and we can’t hoard goods in our garages to store our earnings.

The usefulness of money and its evolution

Now that we have seen that humanity, and especially civilization, has always needed a currency, we can review what use bitcoin can have. Money is useful as a medium of exchange, as a measure of value or standard of deferred payment and store of value. Money must also have properties of fungibility, durability, divisibility, portability and rarity. This is how money is embedded in every part of society. Additionally, the “medium of exchange” function of money has evolved over the years with technology. We may have used coins or notes in the past, but today e-commerce accounts for 13.2% of all purchases. Visa, Mastercard and Paypal have capitalized on this payment infrastructure (digital and in-person) with 2021 revenues of $24.1 billion, $23.6 billion and $25.4 billion respectively. Visa and Mastercard have combined to facilitate more or less 70% of card transactions in 2021. With such sums, it is safe to say that digital payments have met a demand, they have solved an existing problem.

Moon bitcoin live.  btc price double investment.  Moonlight space logo with mountain shine

The success story of digital payments

We can even go further and talk about the fees of around 3% that these networks charge, or the global average money transfer fee of around 6%. There are a lot more issues to deal with here, but we’ll save that for another day. For now, we can confidently say that with Visa processing up to 24,000 transactions per second, there is inherent value in what card payment services have delivered. It’s kind of the same with bitcoin. We must explain the inherent value that cryptocurrency brings. We were able to explain here that, one, we need some form of currency, and two, digital payment networks facilitate the exchange and transmission of money, which brings value to society.

The FIAT currency problem

What form should our currency take? It’s a legitimate question… We have seen that there was a time when shells were used as money. And until 1971, the monetary system was backed by gold. Today, money is a FIAT system, with no underlying products supporting our monetary systems. But, is this a problem? Is fiat currency the best form of currency we should use to preserve the efforts associated with our work? Does FIAT best represent the monetary properties we are looking for in a form of money? We have already explained that the current system is unsustainable, and that it operates on the principle of debt. For more explanation, this YouTube video summarizes how our current monetary system works.

counterfeiters

The FED, or the ECB, by buying up the states’ debt, which is eternal, prints everything. This is the major problem we face. By printing too much, we create inflation. So, for example, when the US government passed legislation for $4.2 trillion of spending in the CARES Act and Covid relief programs, we see an asset (in the form of an IOU) added to the Fed balance sheet. Is all this a problem? Should the 7-member Federal Reserve Board be able to issue $4 trillion in new money at will?

The FED and the ECB or bitcoin (BTC)?

That’s not all. Commercial banks also create money at will through our fractional reserve banking system. As explained in the video. The Fed sets the reserve rate (how many of a bank’s deposits must be in reserve with the Fed) and the federal funds rate (which translates to the percentage that commercial banks receive for deposits with the Fed) , all of which are passed on to consumers and businesses in the form of loans, mortgage rates, etc. It is exactly the same functioning as the ECB. In 2014, it lowered its deposit rates, as explained in the article linked above. When the FED sets a 0% reserve rate as it has throughout Covid, it has effectively given commercial banks the ability to create unlimited money. On this, the Americans were behind us Europeans thanks to our central bank in Frankfurt.

Close up fun emotional young female is holding bitcoin in forehead eye.  Online virtual future currency concept.  Beauty woman head with bitcoin money in eye.  Digital cryptocurrency bitcoin.

The answer: Bitcoin (BTC)

So back to the question… is this fiat money standard a problem? Is this the best we can do as a society to provide mechanisms for preserving wealth over time? If BTC is a “Ponzi” or a “rat poison”, I hesitate to speculate what our current fiat system represents…

Inflation… Always Inflation

It was supposed to be “transitional”… But now inflation has become the talking point of the year. Jeff Bezos and Elon Musk have both (in apparent agreement) tweeted on the negative effects of all our money printing on inflation, and this by debunking the stories of the Biden administration, Senator Warren and others. The very people who have long made statements explaining that everything is Putin’s fault, or better still because of “corporate greed”.

Conclusion: Is bitcoin (BTC) the solution?

First, let’s go back to our previous four conclusions. Money as a function has value (we need to be able to exchange goods and store value over time). Payment networks have value (we need to be able to transmit value across space and time, and quickly). Fiat money has problems. In particular because it is intrinsically inflationary, devalued each year and the rules of the game are modified at the discretion of a board of directors composed of 7 members for the FED. Ditto for the ECB, no one among those who will read these lines has decision-making power over the monetary policy of the ECB. Inflation is caused by money printing and harms society. It’s an invisible tax on those without assets, it centralizes power in the hands of a few (the central bankers) and it subverts democracy when we can print money at will rather than to make difficult decisions about raising money through taxes.

With all these arguments, in my opinion, it is undeniable that the decentralized nature of BTC offers us an incredible chance. We can be autonomous in our transactions. No middleman needed. It allows you to quickly settle transactions anywhere between individuals or professionals. Bitcoin (BTC) plays a similar role to gold, with the added benefits of digital and blockchain. Initially a store of value against inflation, in recent years it has become correlated with the real economy (notably the Nasdaq) for multiple reasons. the bear market has the merit of cleaning up the market and decorrelating it from the stock market. Bitcoin (BTC) will likely regain its function as a store of value against inflation after this.

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Gregory Morat avatar
Gregory Morat

Student passionate about entrepreneurship and fascinated by the technologies behind cryptos! Yes, I am convinced that the two are intimately linked: blockchain and NFTs are revolutionizing many sectors and presenting unprecedented opportunities.





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Bitcoin: inflation falls (slightly) in the USA, real lull or eye of the storm?

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It takes little to be happy – With a record inflation around 9% in the United States and the European Union for the month of June, fears for the global economy were at their climax. Inflation for the month of July in the USA has just fallen: for the first time in months, she backs off! But however, a littleas we will see.

Inflation dropping to 8.5% over one year in the USA

The numbers of theconsumer price inflation in the United States (CPI) have just been published this Wednesday, August 10, 2022. As the reports notably The Block, over a rolling year from July 2021 to July 2022, the price increase now stands at +8.5%.

Last month, inflation hit a 40-year high, +9.1%. This first drop of inflation since April 2022 is therefore rather well received by the markets, and in particular that of cryptocurrencies. the bitcoin price has again reached the $24,000 following the announcement.

US inflation fell for the first time since last April.
Consumer price inflation in the United States year on year (month by month) – Source: tradingeconomics.com

As everyone suspects, it is still way too soon to say whether this fall in inflation across the Atlantic will be sustainable. And, it directly influences the increase (or not) of Federal Reserve (Fed) key rates. The strong money prints central banks due to “whatever the cost” of covid restrictions are they starting to be digested, with a conflict in Ukraine which settles in the length? Even if this is indeed the case, the remission inflation will take many months (if not even years).

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NFT: The metaverse is going through a real estate crisis

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News hardware NFT: The metaverse is going through a real estate crisis

In 2008, the world experienced the subprime housing crisis. In 2022, the recession is happening this time in the virtual world, more commonly known as the metaverse.

Since 2021, the subject of the metaverse has become a real concept sometimes exceeding the reality of our current digital practices. This interest around the virtual world of tomorrow has been largely highlighted by Meta, formerly Facebook, and its social metaverse project.

The famous 3D environment under the name of metaverse aims to transcribe reality as faithfully as possible. As a result, the notion of ownership has been applied to the metaverse. Indeed, to benefit from its home in the digital world, several metaverses are the subject of sale of digital plot of land in the form of NFT. These tokens can usually be acquired for cryptocurrency.

In a logic of anticipation and profitability, many investors did not want to miss the opportunity. Thus, some have placed their pawns well before a possible mass adoption by buying land or real estate in different more or less known metaverses. These investors bought these lands in the hope of making a profit when the time came.

The Sandbox Virtual Land Map

NFT: The metaverse is going through a real estate crisis

This excitement around NFTs and the metaverse has represented 500 million dollars in sales for the year 2021. Only, after this metaverse real estate boom, these real estates in the form of non-fungible tokens have suffered a significant loss of value since the beginning of the “crypto winter”.

As Bitcoin, correlated to traditional stock indices, continued to fall throughout 2022, it’s time to take stock. The queen of cryptocurrencies took the entire economy around the web3 in her fall. Thus, altcoins, NFTs, and even metaverse suffered an overall decline in value.

According to WeMeta, a platform dedicated to selling virtual land on different metaverses, real estate transactions on Decentraland and The Sandbox experiencing a 97% decline since November 2021. Going from 16,000 sales per day to just 2,000 in the space of 8 months, the sector has also seen the prices of goods drastically divide to adapt to demand. Thus, many owners of digital assets find themselves on the straw.

As an example, for the most popular metaverse named Decentraland, then that a piece of land (LAND) cost nearly €17,000 in July 2020, 2 years later it trades around 1.85, ETH or €3,000.

This 3D virtual space supposed to represent the Internet of tomorrow is still in the development phase. Therefore, it is important for companies to lay a sound foundation when the subject is no longer the scene of a speculative bubble. Moreover, this decline in enthusiasm around the metaverse can also have the opposite effect, namely slowing down, or even stopping, the investment and development of projects related to the virtual world of tomorrow. This is the option chosen by Tinder for his Tinderverse.

It is important to specify that the economy of the metaverse is not an isolated case, the young markets are regularly the object of excessive enthusiasm and consequently of extreme volatility. In this context, the sector will have to be given several more years so that it can develop according to user expectations.



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Aptos crypto review – What is this alleged Solana killer?

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How does Aptos work?

The main feature of Aptos is theparallel execution. Most blockchains use a transaction scheduling method called sequential, or serial execution, in which a single transaction timeline is continuously updated: each time you make a transaction or buy something, that transaction is added to a long single ledger containing all transactions ever executed on the network and updated by thousands of nodes.

What Is Aptos? The ‘Solana Killer’ Created by Diem Developers Founded by developers behind Meta’s Diem blockchain, Aptos’ use of a novel transaction ordering method has earned it huge sums from investors. https://t.co/yNLZO4NoYl

Since they are all added one by one, you have to wait for each new transaction to be verified: this takes a long time and is the reason why the settlement rate of most blockchains is slow.

What is Aptos?

Aptos is a very recent project. After benefiting from a $150 million seed round led by FTX and investors including Parafi in late July, the blockchain secured another strategic seed round of $200 million from big players like Andreessen Horowitz, Multicoin Capital and Haun Ventures in March.

Founded by Avery Ching and Mo Shaik, who worked on the Novi wallet of diemAptos uses a parallel execution method that aims to speed up transactions on the blockchain while maintaining low cost.

Aptos vs Solana

Solana, Aptos, and Sui 3 Super Fast Chains Who wins the war?

Aptos is designated as a killer of Solana. In addition to taking advantage of the latest technologies, the blockchain would process a maximum of 160,000 transactions per second, compared to only 120,000 for Solana.

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Buying NFTs – 3 surprising uses of non-fungible tokens

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Fashion and jewelry

How do you prove you own the original version of a handbag or sneaker? Well, by placing the purchase record on an immutable database such as blockchain. NFTs exist on the blockchain, and each one is unique, unlike “ordinary” cryptocurrencies.

After changing his Twitter profile picture, @neymarjr displays his Bored Ape on his Instagram account 📸 With 168 million subscribers, he is the most followed personality to change his digital identity with an NFT 🌍 https://t.co/sBRkEVDhNI

Therefore, you can use the NFT to show potential buyers (or just to brag) that your shoes are the original Jordans and not knockoffs from China. Many brands have already embraced NFTs for this reason, and soon every purchase at a designer store could come with an NFT upon exit.

Logistics and supply chain

If you’ve ever had a call with an e-commerce agent explaining that what you ordered isn’t what you have, then you know how complicated logistics can be. Because the question becomes “Who is telling the truth?” “. And when it comes to goods worth millions being shipped around the world, it’s a lot harder than returning a broken toy.

🔴 NEWS
@Cdiscount now uses #NFTs to manage the traceability of large packages Supply chain players exchange an NFT attached to each package handled, until its final delivery Solution provided by the French start-up @Ownest_io https://t.co/CUPHklMPpA

NFTs have been suggested as a remedy for this problem as each of them can represent a specific item in the supply chain. It could also include attributes like current status, location, and destination, which would make product tracking much easier. In addition, blockchain data is visible to everyone, which increases transparency.


Identity Verification

Imagine you don’t need multiple documents, which are linked to you, just for different purposes. For example, you need medical records, diplomas, voter’s card, passport, national identity card, etc. for different functions. However, all this information can be stored in an NFT from the moment you are born and receive a birth certificate.

The advantage of data stored in an NFT is that it is completely secure and only you can access it. So you never have to worry about losing identity verification documents again.


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Michael Saylor wants to focus on Bitcoin (BTC) and steps down as CEO

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In order to focus on MicroStrategy’s Bitcoin (BTC) business, Michael Saylor is stepping down as CEO in favor of Phong Le. He will nevertheless remain chairman of the board of directors, but will now focus on the acquisition of new bitcoins as well as their use by his company.

https://cryptoast.fr/microstrategy-michael-saylor-concentrator-bitcoin-laisse-place-pdg/

Michael Saylor passes the torch to dedicate himself to Bitcoin

MicroStrategy company is famous in the ecosystem thanks to its CEO Michael Saylora staunch defender of Bitcoin (BTC). On the occasion of the publication of its quarterly results, the company announces that this role of CEO will be entrusted to Phong Le, who already held management positions. Michael Saylor, meanwhile, will remain Chairman of the Board of Directors.

This measure will take effect from August 8.

The objective of this maneuver is in fact to delegate the management of day-to-day activities of the company. Thus, Michael Saylor will be able to focus on MicroStrategy’s operations vis-à-vis Bitcoin.

“I believe that separating the roles of chairman and CEO will allow us to better pursue our two business strategies of acquiring and holding bitcoin and growing our business analytics software business. As Executive Chairman, I will be able to focus more on our bitcoin acquisition strategy […] while Phong will be empowered as CEO to manage the entire operations of the company. »

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A pronounced appetite for BTC

If some players like Tesla did not know how to hold their positions despite their promises, MicroStrategy shows a market resilience. Indeed, since the last quarter of 2020, the company has continued to increase its reserves of bitcoins and does not seem determined to backtrack:

MicroStrategy Bitcoin

Summary of MicroStrategy BTC holdings

If the quantity of bitcoins purchased seems to be slowing down since the first quarter of 2022, MicroStrategy still has 129,699 BTC. Valued at 2.45 billion dollars at the end of the second quarter, they are now worth more or less 3 billion.

With a average unit acquisition cost of $30,650, MicroStrategy is in losses on its investments. However, Michael Saylor takes us to the heights of the situation with a graph, which shows that since his company turned to Bitcoin, its shares have gone up. valued by 123% and the BTC by 94%. At the same time, other well-known assets show poorer performance:

Of course, we should not make hasty shortcuts between its different comparisons either. On the other hand, it puts into perspective the long-term dynamics cryptocurrencies. If current prices can still go for lows, it is sometimes good to remember the fundamentals of the leader of our ecosystem to strengthen his conviction towards the future.

👉 Also in the news – Hack on Solana: $6 million siphoned from Phantom and Slope wallets

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Source : Press release

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Zompot (ZPOT), Solana (SOL) and Tron (TRX) – Top 3 Cryptocurrencies for King-Sized Earnings in August 2022

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If you’re in the market for a handsome sum through cryptocurrency investments, read on. We researched and shortlisted three such tokens.

The three pieces are Zompot (ZPOT), Solana (SOL) and Tron (TRX). All tokens have diverse use cases and can generate potentially huge returns in the future. These three coins can be added periodically to build a balanced, high-growth portfolio over the long term. Let’s see why these three cryptocurrencies are medium and long term bets.

Zompot will target VR interface, digital property and avatars for a Metaverse solution

The Zompot ecosystem will be powered by a native token known as ZPOT. It will be made available for purchase through an upcoming presale.

The Zompot ecosystem will include support for a metaverse where users can interact with each other in a virtual setting and also trade using the ZPOT token. It will provide multiple benefits such as increased privacy, reduced inflation, and better trading for its users. Players will have access to avatars and NFTs and will be able to monetize content inside the Zompot ecosystem for great potential earnings while you sleep.

The ZPOT token will incorporate anonymous payment schemes and DAP schemes. A DAP scheme will help a user pay another user directly and privately, by hiding the origin, destination and payment amount. Most cryptocurrencies are pseudo-anonymous while transactions can be tracked easily. Zompot will, however, enable state-of-the-art security features to ensure full-proof security for its users. Another major advantage of using the ZPOT token for transactions is that the token only requires 1KB of data and takes less than 6ms to complete.

The total supply of the ZPOT token is set at 500,000,000 and will launch at an initial price of $0.005. The token will first appear on the Binance Smart Chain network known for its high speed and privacy features. Zompot plans to bring cryptocurrency to a fun, inclusive, and innovative space.

Brave extends support for Solana

The Brave browser has announced a further expansion of its support for the Solana ecosystem. The sol token serves as a native coin of the Solana network which is known for its cost-effective and high-speed layer-1 solution. The move will allow Brave wallet desktop users to connect directly to Solana-based dApps. The SOL token could experience a short-term rally as it would allow for further adoption of the e-coin. The SOL token can be added for the long term as it has a strong use case and is widely adopted by many developers.

Tron’s TVL shows a healthy increase

The Total Locked Volume (TVL) on the Tron ecosystem has steadily increased over the past few months. It could register a potential healthy price rise for the TRX token in the not too distant future. The Tron ecosystem was developed for the entertainment industry and uses the TRX coin for the payment of transaction fees.

The TRX token has recorded a significant price rally and looks ready for the next rung of the ladder. It has strong DeFi utility and is widely preferred by people looking to earn passive income through staking.

Always do your own research before buying into cryptocurrencies as they can be very volatile in the short term. A long-term investment horizon is ideal for cryptocurrency investments.

All three tokens discussed above have solid utilities and could potentially help generate huge long-term profits provided you can get high volume at low prices. Follow the news carefully, as these digital assets tend to react quickly to changing market trends.

Zompot (ZPOT)

Presale: http://rise.zompot.com/

Website : http://zompot.com/

Telegram: https:// t.me/ZompotTokenOfficial

Twitter: https://twitter.com/Zompot_









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How Gaming Purists Are Resisting the Cryptocurrency Onslaught

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Gamers play the NFT video game Axie Infinity on their smartphones on December 15, 2021 in Malabon, a suburb of Manila, in the Philippines.
Gamers play the NFT Axie Infinity video game on their smartphones on December 15, 2021 in Malabon, a suburb of Manila, Philippines (Jam STA ROSA / AFP/Archives)

Purists versus crypto-enthusiasts: Some video game fans are concerned about the commercial temptation of the industry, as major studios increasingly take interest in blockchain technology, which attracts gamers with the promise to earn money.

“Everything that’s being done in this space right now is just bad – it’s downright terrible,” video game designer Mark Venturelli, who recently launched an indictment against technology, told AFP. “blockchain”, or chain of blocks – on which the creation of cyptocurrencies is based in particular -, during the BIG Festival of Sao Paolo, the largest “gaming” festival in Brazil.

Among the many advantages touted by cryptocurrency enthusiasts, the “blockchain”, a kind of huge digital register shared between a multitude of users, would allow players to recover part of the money they spend in games. , or to guarantee them ownership of digital objects.

Critics like Venturelli say the opposite: game makers will rake in more profits while circumventing gambling laws, while greed will kill all fun.

Enough to fuel a lively confrontation within an industry which weighs some 300 billion dollars in revenue worldwide, according to an estimate by the firm Accenture.

NFTs banned on Minecraft

In the short term, purists may feel as if they have triumphed over the collapse in cryptocurrency prices. They dragged down the tokens issued in this type of blockchain game, the value of which had initially attracted players.

“No one is playing blockchain games right now,” confirms Mihai Vicol, from the specialist firm Newzoo, to AFP, saying that between 90 and 95% of games have been affected by the cryptoasset crash.

Ubisoft, one of the biggest video game companies in the world, tried last year to introduce a marketplace in one of its hit games to trade NFTs.
Ubisoft, one of the biggest video game companies in the world, tried last year to introduce a marketplace in one of its hit games to trade NFTs (Frederic J. BROWN / AFP/Archives )

This sector had already experienced a serious image problem earlier this year after a spectacular theft of 600 million dollars on Axie Infinity, a video game based on a “blockchain” extremely popular in the Philippines.

Ubisoft, one of the world’s largest video game companies, tried last year to introduce a marketplace into one of its hit games to trade NFTs, those unique digital tokens that associate with a digital object a certificate of authenticity guaranteeing official ownership to its sole holder.

But gamer forums, many of which are marked by anti-crypto sentiment, have gone into flames to oppose it.

“Revolutionizing” video games

Last July, Minecraft, a world-building game hugely popular with kids and teens, announced that it would no longer allow NFTs, considering them to be against the “spirit” of the platform by creating “a model of scarcity and exclusion”.

Last July, Minecraft, a world-building game hugely popular with kids and teens, announced that it would no longer allow NFTs.
Last July, Minecraft, a hugely popular world-building game for kids and teens, announced it would no longer allow NFTs (Mark RALSTON/AFP/Archives)

Despite the serial setbacks for cryptocurrency enthusiasts, entrepreneurs promoting “blockchain” aren’t giving up, like Sekip Can Gokalp, whose companies Infinite Arcade and Coda are helping developers introduce the concept of “web3″—a web decentralized based on blockchain- in their games.

According to him, the technology still has the potential to “revolutionize” video games, while reports of a culture clash between gamers and cryptocurrency fans have been exaggerated. His research even suggests that there is significant overlap between the two communities.

Mihai Vicol, however, believes that the “blockchain” video game must find other selling points to succeed. “It may be the future,” he says, “but it will be different from how people envision it today.”

For Mark Venturelli, the lure of profit caused by these games risks causing real damage, particularly in Latin America, by attracting young people. But with new blockchain games emerging every day, he admits the battle is far from over.



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According to the ECB, Bitcoin (BTC) is an expensive and wasteful system for international settlements

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In a document listing the technologies that could potentially become the “Holy Grail” of cross-border payments, the European Central Bank (ECB) looks at Bitcoin (BTC). However, the latter is receiving negative reviews, while stablecoins and central bank digital currencies (MNBC) are receiving a more positive outlook.

The ECB gives its opinion on Bitcoin again

The European Central Bank (ECB) published the proceedings report on the search for the “holy grail of cross-border payments”, in which it paints an unflattering picture of the Bitcoin (BTC). In this 59-page document attributed to Ulrich Bindseil and George Pantelopoulos, several solutions are explored and of course, elements relating to our ecosystem are present there.

An international payment system that can claim the qualification of “Holy Grail” must meet four conditions:

  • Be immediate;
  • Be cheap;
  • Have a universal scope;
  • Be a secure means of payment, such as central bank money.

As far as Bitcoin is concerned, this option is processed in fifth part and starts with this introduction:

” The [Conseil de stabilité financière] does not even consider non-backed crypto-assets such as Bitcoin as a means of cross-border payment. »

The irony of the situation is that the term “bitcoin” is nevertheless mentioned 199 times in the documentwhich contrasts with the low importance that seems to be given to it.

The report half-acknowledges that the Lighting Network responds to the problem of speed and low transaction costs, however it also highlights many black points. Once again, the proof-of-work (PoW) consensus is questioned for being described as expensive and unnecessary.

Note also the eternal crime argumentyet repeatedly contradicted:

“Much of its perceived appeal for cross-border payments stems from the fact that it escaped (so far) to equal regulatory treatment in terms of compliance […]. This has led to the widespread use of Bitcoin for criminal purposes. »

👉 To go further – Discover the arguments of Alexander Stachchenko to defend Bitcoin (BTC)

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The issue of stablecoins and MNBCs

Beyond Bitcoin, the ECB is also focusing on stablecoins as well as central bank digital currencies (MNBC).

As for stablecoins, the survey highlights the fact that they have interesting qualities for possible use in international settlements. For reasons of financial stability, however, the emphasis is on collateralized stablecoins.

On the other hand, the authors of the report highlight the sovereignty issues generated by this technology. In this case, a digital asset would then replace the sovereign function of a State, which is monetary issuance.

Concerning MNBC, the works describe a system with a Forex overlay. This means that each country could use its own currency, but that currency would be directly converted in the destination currency. That said, the low development of MNBCs at the present time is currently a brake on the development of this solution.

Once again, we see that blockchain-related technologies are of interest, but related assets, such as Bitcoin, are divisive. Often criticized, the latter would nevertheless be 56 times less energy than the traditional financial system, according to a study by Michel Khazzaka. Moreover, a transaction with the Lighting Network would be 345,000 times faster than a traditional transaction and 14 times faster than instant payment technologies.

👉 Also in the news – MicroStrategy: Michael Saylor wants to focus on Bitcoin (BTC) and steps down as CEO

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Source : European Central Bank, Michael Khazzaka

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A figure to understand the decline in the popularity of crypto-currencies

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Even lower than its forecast, Coinbase’s figures for the second quarter of the year are in the red. With over 95 million verified users, the cryptocurrency exchange platform is a prime witness to the decline in popularity of digital assets as their price curves reversed. In view of its losses and declining number of transactions, it is easier to understand how market participants, who were awash in capital last year, are panicking today.

An important figure on cryptocurrencies today

Before discussing the catastrophic situation of Coinbase, let’s talk about the evolution of the number of transactions on the platform by its customers. This is very relevant data as it expresses both the decline in the popularity of small investors for crypto-currencies, and the level of danger that affects trading platforms almost totally dependent on the activity of their users to earn money. Thus, in the second trimester, the number of transactions on Coinbase fell by 52%. In one year (and even in just a few weeks based on the first quarter), users bought half as many cryptocurrencies.

Going public, Coinbase kept trying to reassure everyone that the company was going to find ways to protect itself from its reliance on user activity, and thus rising crypto prices. currencies. We remember, when its IPOwhen the company confirmed that 96% of his income depended on his commissions on transactions. At that time, Coinbase was acknowledging (without shouting it too loudly) that “all of our sources of income are dependent on crypto assets and the cryptoeconomy in general. […] There is no guarantee that any Supported Crypto Asset will maintain its value or that there will be significant levels of trading activity.”

Coinbase Survival

In the second quarter, the losses of the platform exceeded one billion dollars, with a turnover of 808 million dollars against 832 million dollars according to estimates. The listed company’s revenues fell 64% year-on-year, an extreme drop for a company that is now accountable to Wall Street. Moreover, when its results were announced, Coinbase shares fell by 5%. To be able to cope with the crisis, 18% of its workforce was made redundant, i.e. nearly 1,100 positions.

A quite lunar situation when you know that a few months earlier, when everything was going well on the crypto-currency market, Coinbase was spending more than $16 million for a Super Bowl commercial. At the time, Edward Snowden pointed the finger at the choice of platform, criticizing that Coinbase does not spend more to have a bug-free website and better customer service. Today, it is no longer these tools that are in question, but the survival of Coinbase.



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