the IMF called on to regulate cryptocurrencies, and the Fed allowed three key rate hikes in 2022

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V IMF urged to choose regulation instead of banning cryptocurrencies, FRS postponed the date of the final curtailment of the asset repurchase program from June to March and other events of the outgoing week.

Bitcoin quotes rise above $ 47,000

During the week, the price of the first cryptocurrency dropped below $ 46,000 several times.

At the time of writing, bitcoin is trading at $ 47,400. The asset’s market cap is $ 893 billion, according to CoinGecko.

At block # 714,000, the bitcoin network has reached the point where it remains to mine 2.1 million BTC, or 10% of the available emission volume. Digital gold is projected to hit the limit around 2140.

Only three cryptocurrencies from the top 10 in terms of capitalization closed the week in the green: Solana (SOL) – + 7.1%, Terra (LUNA) – + 25.1%, Avalanche (AVAX) – + 28.8%. Bitcoin exchange token Binance lost more than others – 5.3%.

Kraken CEO calls Bitcoin price drop “buying opportunity”

The head of the Kraken cryptocurrency exchange, Jesse Powell, has allowed the onset of a new crypto winter. He noted that Bitcoin could fall below $ 40,000 and this should be taken as a “buying opportunity.”

According to Powell, the market for the first cryptocurrency develops cyclically, and the starting points of these phases are halving. The previous decrease in miner remuneration occurred in May 2020, the next is expected in March 2024.

Despite the possible approaching crypto winter, the Kraken CEO believes the price of digital gold will rebound quickly as investors start buying assets.

“I think a lot of people see prices below $ 40,000 as a buying opportunity. I personally bought when we dropped to nearly $ 30,000 a few months ago. A lot of people are just waiting to get back to the market at the lowest prices, ”he said.

Ray Dalio calls bitcoin “gold for young”

The first cryptocurrency actually acts as an alternative to gold for the younger generation. The blockchain revolution is inevitable, but some governments may outlaw it, said billionaire Ray Dalio.

The founder of Bridgewater Associates urged not to keep only cash, which is “eaten by inflation”, and to form an “all-weather” portfolio as a safety net. It should be diversified across currencies, asset classes, countries and industries.

A certain part of such a portfolio can be occupied by bitcoin. Dalio likened it to gold, a blue chip in relation to Fiat.

The billionaire doubted that the authorities of all countries of the world will eventually ban the first cryptocurrency. He found no reason to expect it to be included as a reserve asset by central banks and large corporations.

Dalio called fiat money a distressed asset and the worst investment. He also spoke about the purchase of Ethereum, but did not name the exact amount – “not very much.”

According to the billionaire, he sees cryptocurrencies as alternative money in the face of the depreciation of traditional currencies in real terms.

Joseph Lubin called the high cost of Ethereum gas a “measure of the success” of the network

High fees on the Ethereum network are a “measure of success” and are attributed to “growing pains.” This opinion was expressed by Joseph Lubin, co-founder and CEO of ConsenSys.

“This is the pain of growing – something that cannot be avoided. When a new technology becomes successful, there are always scaling problems. So, whether it’s CPU cycles, screen size, or memory, you usually turn to programmers to maximize the technology’s capabilities. And it turned out that we see how consumers make the most of the capabilities of the blockchain, ”he said.

Ethereum 2.0 will help reduce both transaction costs and energy consumption, Lubin said. He expects the launch of the second iteration of the network in “the second, possibly the third quarter of next year.”

Lubin also noted that the problem of Ethereum’s scalability is already being addressed through second-tier solutions.

IMF urged to opt for regulation instead of banning cryptocurrencies

If cryptocurrencies are banned, countries will lose control of the industry, so a policy of regulation, not repression, should be adhered to. This was stated by IMF chief economist Gita Gopinath at the NCAER conference.

According to her, it is impossible to prohibit digital assets, since users of these tools will simply switch to offshore exchanges, which are not subject to certain rules.

“Can you really do it [запретить криптовалюты]because many exchanges are offshore and not subject to the rules of a particular country, ”she said.

She stressed that “no state can solve this problem alone,” since cross-border transactions with cryptocurrencies are almost impossible to control.

The politician also said that at the moment, digital assets are not a global threat. However, in her opinion, giving them the status of legal tender is a big mistake.

Fed allowed three key rate hikes in 2022 due to inflation risks

As a result of the meeting on December 14-15, the FRS postponed the deadline for the final curtailment of the asset repurchase program from June to March. The updated forecasts assume three increases in the key rate over the next two years.

The previous forecast for September allowed only one increase in 2022 and two in 2023.

The volume of the reduction in the purchase of bonds was doubled – from $ 15 billion to $ 30 billion.

The reason for the revision of the Fed’s position was the strengthening of inflation, which reached its maximum in 30 years in October (6.2% in annual terms).

At its December meeting, the Federal Reserve refused to interpret the increase in inflationary pressures as “temporary.” The Open Market Committee raised its inflation forecast – from 4.2% to 5.3% at the end of 2021 and from 2.2% to 2.6% in 2022.

Aksakov: mining is devoid of social significance, and therefore the industry does not need support

Miners do not need support from the industry, since their activities have no social significance, said Anatoly Aksakov, head of the State Duma Committee on the Financial Market.

The official noted that this market sector is already making “pretty decent money”:

“Are they some kind of orphans or poor ones? Why Help Mining? Why help him? What is the purpose? What do they produce, socially significant products? “

Aksakov said that the Russian authorities are discussing various options for regulating cryptocurrencies – from a complete ban on their ownership and purchase to the legalization of bitcoin exchanges.

He also noted the need to recognize mining as a type of business and provide miners with electricity at a special price for industrial consumers.

Swiss crypto bank SEBA issues gold-backed token

Licensed cryptocurrency bank SEBA from Switzerland has announced the release of a physical gold-backed token.

According to the statement, Gold Token will enable investors to own the digital form of the precious metal through a “fully regulated, cost-effective and forward-looking solution.”

Investors will be able to exchange tokens for gold at partner refineries at any time, avoiding storage and transportation fees.

The bank noted that Gold Token can also be used as a stablecoin for trading or a store of value, “protecting investors from market volatility.”

DappRadar Service Launches RADAR Token and Announces Airdrop

DappRadar, an analytical service that provides data on decentralized applications (dapps), launched the RADAR token on the Ethereum blockchain and announced the start of the airdrop.

The developers are positioning RADAR as a utility token and a project ecosystem management token. Users can make proposals for improving the service and vote for them, act as liquidity providers, and pay for services on DappRadar.

Tokens may require:

• Users with a DappRadar account with a connected wallet who have interacted with at least one Ethereum dapp in the last six months. The application must be listed on the portal. Such addresses will be received by 8697 RADAR.
• Any users who have interacted with at least one dapp on Ethereum in the last six months and with at least 10 applications over the entire lifetime of the wallet. All applications must also be listed on the portal. These addresses will receive 5798 RADAR.

This is a retrospective airdrop. The service team noted that they want to encourage community members who actively used the platform “long before the announcement of any tokens.”

A snapshot of the Ethereum network was taken on October 19, 2021.

To receive tokens, you need to pay a commission on the blockchain. The reward on the airdrop page must be claimed by March 14, 2022.

The total supply of RADAR amounted to 10 billion. Slightly more than 25% of tokens were distributed among the project team members and shareholders, 24.75% were sent to the treasury of the service, 10% were allocated for the initial airdrop, and the remaining 40% will subsequently go to the community.

Goldman Sachs calls blockchain the foundation of the future metaverse

Goldman Sachs analysts said blockchain will become the foundation of the metaverse as the technology allows users to securely own digital assets by moving them between different platforms.

Investment bank experts have called blockchain “one of the most destructive technological trends” since the advent of the Internet. In their opinion, the distributed ledger will form the basis of the metaverse, since it allows you to eliminate the central intermediary.

“We believe the metaverse is likely to be an amalgamation of various 3D spaces that users regularly move between. If goods or services fail to follow their beneficiaries, their value will be more limited, ”the analysts explained.

According to Goldman Sachs, blockchain is the only technology that can uniquely identify any virtual object, regardless of the central operator.

“This ability to identify objects and then track property rights will be critical to the functioning of the metaverse when it finally materializes,” the report says.

In general, analysts expressed optimism about the future of blockchain technology, but stressed that it is too early to build any investment strategies around it.

NFT owner accidentally sold a token for 0.75 ETH instead of 75 ETH

The owner of the non-fungible token (NFT) Bored Ape Yacht Club # 3547 named Max accidentally sold it for 0.75 ETH ($ 2931) instead of the planned 75 ETH ($ 293,100).

NFT was bought immediately. The buyer paid an additional 8.5 ETH (about $ 33,300) to expedite the transaction.

On May 30, 2021, Max purchased Bored Ape Yacht Club # 3547 for 1 ETH.

Australian teen invested in bitcoin and became a millionaire at 18

Australian Samuel Snell became interested in investing in cryptocurrencies at school and by the age of 18 he made his first million. According to the teenager, initially he met with misunderstanding on the part of adults:

“I became interested [биткоином и Ethereum] in 2014. Then my teachers advised me to stop wasting time on cryptocurrency. “

However, at the age of 17, Snell bought his first Mercedes Benz car. A year later, he was able to afford a second $ 350,000 G-Wagen and a diamond-plated Rolex designer watch.

Samuel Snell is now the co-founder of the Crypto Gods community, which he claims is the largest privately held crypto company in the country. As part of the project, the teenager conducts investment courses for 3,000 clients.

What else to read and see

Algorithmic stablecoins are a relatively new phenomenon in the cryptocurrency market. It is an alternative to time-tested centralized assets like USDT and USDC.

ForkLog figured out the features of the technologies of various stablecoins, comparing their strengths and weaknesses.

In traditional digests, we have collected the main events of the week in the fields of cybersecurity and artificial intelligence.

We suggest recalling the most significant news from the venture investment sector in recent years with our “Institutional Bulletin”.

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