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Can Ethereum Make You Rich In 2021?

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As the crypto space continues to develop rapidly, many investors are now shifting their attention from bitcoin. Can Ethereum make you rich? Yes, Ethereum (ETH) can make you quite rich if you invest wisely and strategically. As a miner or regular investor of the currency, ETH can prove to be a viable investment in the long term.

There is no tested or proven way of getting rich quickly but investing in ETH can prove worthwhile. ‘Rich’ is a relative term and for anyone looking to make some money, this market is a great bet.

Ethereum Chart
Ethereum Chart

The returns match what is put in. In recent years, the second-biggest cryptocurrency by market capitalization has held on to its position as the biggest alternative to bitcoin.

Ethereum supports peer-to-peer applications and smart contracts via its local currency vehicle while bitcoin is designed to operate as an alternative currency or digital currency.

Hence, the blockchain is perceived to do for programming and computing what bitcoin does for payments. It comes with its own blockchain and its functionality is quite different from other cryptos.

But, it still coexists with all of them.

While bitcoin has enjoyed massive attention in the past several months, investor focus is also turning towards ETH. The goal of the ETH network is to create a decentralized internet.

So far, it has a great shot at becoming ‘the new internet’ with the dapps and DeFi protocols operating on the platform. Ethereum’s coin, Ether, is just like bitcoin. It is purchased and sold at crypto exchanges and used by investors to invest in IEO and most DeFi opportunities.

Ethereum Competition

Newer projects are actively aiming to replace Ethereum as the smart contract platform leader. Others want to share the market by avoiding the technical challenges that Ethereum has faced in the past.

Some of the notable competitors include EOS, Cardano (ADA), Tron (TRX), Stellar (XLM), and NEO.

To stay ahead of all competition, the project’s upgrade dubbed Ethereum 2.0 was announced. After many delays, the transition from Proof of Work (PoW) to Proof of Stake (PoS) Consensus mechanism will finally happen, assumably on December 1. But, some analysts and experts think that the Ethereum 2.0 PoS transition might delay further.

Going by the name Phase Zero, this shift towards Ethereum 2.0 is a majorly awaited event by crypto enthusiasts around the world since it is expected to transform the ETH network significantly.

Many people are optimistic about the forthcoming changes in the project. That has translated to a substantial surge of Ethereum on-chain metrics including average transaction values, transactions per day, and daily active addresses. The average block time is also improving drastically ensuring that ETH is still the leader in this sector.

How Far Can ETH Grow?

The Enterprise Ethereum Alliance was one of the early drivers that pushed the price of Ether higher. Well-known and influential companies joined this alliance increasing the rate of adoption for the crypto.

That adoption brought in a lot of institutional support, which boosted the level of legitimacy for the cryptocurrency and blockchain.

Media exposure in recent news on different platforms has brought ETH into the mainstream limelight. The different projects that the Ethereum blockchain supports are proving worthwhile solutions to some existing real-life issues.

These factors underpin the value of ether with some experts thinking that in the future, it might dethrone bitcoin at the top.

Massive global support and adoption from different countries like Korea, Japan, various European countries, and the US are also making ETH a seemingly profitable investment for the future.

The continuous development coupled with the ongoing projects that are using Ethereum technology and blockchain also add value to the project.

With all these advancements, developments, and real-life cases, ETH can appreciate in the long-term. Therefore, Ethereum can make you rich if you invest strategically and ideally.

Source: https://e-cryptonews.com/can-ethereum-make-you-rich-in-2021/

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Breaking Down the Effect of Bitcoin’s $3,000 Drop on the Futures Market

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  • Bitcoin has undergone a strong drop since peaking at $19,500 just days ago
  • The coin currently trades at $17,000 as of this article’s writing
  • Analysis compiled by Coinalyze found that over the course of the past few days, $1 billion worth of open interest has been wiped from leading Bitcoin futures exchanges
  • This was accompanied

How the Strong Bitcoin Drop Affected the Futures Market For BTC

Bitcoin has undergone a strong drop since peaking at $19,500 just days ago. The leading cryptocurrency currently trades for $17,000, far below the highs.

The drop came in a short period of time, with liquidations pushing Bitcoin dramatically lower in a wave. The issue was that many market participants were overleveraged, meaning that a small correction triggered liquidations and stop losses, resulting in a rapid cascade lower.

Analysis compiled by Coinalyze found that over the course of the past few days, $1 billion worth of open interest has been wiped from leading Bitcoin futures exchanges.

This was also marked by a spike in trading volume, of $66 billion on futures exchanges and $7 billion on spot exchanges.

These two data points in tandem suggest that the recent correction marked a needed correction in the Bitcoin market to ensure that derivatives players were not getting too far overleveraged.

After the strong correction, the funding rates of top Bitcoin futures markets have reset. The funding rate is the rate that long positions pay short positions on a recurring basis to make sure the price of the future stays in line with the spot market.

According to ByBt, a crypto derivatives tracker, the funding rates of most leading exchanges have reset to the baseline of 0.01% per eight hours. Further, on OKEx in particular, the funding rates of many pairs have actually trended into a negative region, suggesting an increasing number of short takers.

Bitcoin may revert higher if there continues to be low and even negative interest rates and if consolidation takes place.

Par for the Course

Many say that this correction is par for the course in that it should be expected.

Bob Loukas, a long-time Bitcoin investor and macro analyst, recently pointed out that the previous bull run was punctuated with drawdowns similar to the one taking place now:

“Most have a short memory. Remember in Jan 2017 just shy of #Bitcoin ATH’s, boom 34% decline. The 2 months later a sharp rally, new ATH’s, and double boom 34% decline. Never a one way street.”

Countless others in the space have corroborated this, arguing that it is actually healthy for bullish markets to pull back.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k

Source: https://bitcoinist.com/breaking-down-the-effect-of-bitcoins-3000-drop-on-the-futures-market/?utm_source=rss&utm_medium=rss&utm_campaign=breaking-down-the-effect-of-bitcoins-3000-drop-on-the-futures-market

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Facebook’s Libra Could Reportedly Arrive in January 2021 in a Scaled-Down Version

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  • Although Facebook failed to launch Libra in mid-2020 as initially planned, the social media giant could do so in early 2021.
  • Finance Times cited three people working on the project claiming that Libra’s long-awaited launch could come in January 2021 but in a scaled-down version.
  • CryptoPotato reported before that Libra already changed its original idea from being a “single global digital currency” to creating a series of various digital coins. 
  • The FT coverage asserted that Libra could see the light of day after receiving approval to operate as a payments service from the Swiss Financial Market Supervisory Authority (FINMA). However, the Libra Association would initially release just a single coin backed one-for-one by the dollar. The other set of currencies would be rolled out later, should the FINMA application is successful.
  • Facebook rattled the financial world last year after announcing plans to launch its own cryptocurrency called Libra. After receiving scrutiny from world watchdogs, the Libra project underwent numerous changes, including executive replacements.
  • Libra suffered more blows when several notable partners left. Those included PayPal, Mastercard, eBay, Vodafone, and more.
  • In an attempt to salvage the project, the Association decided to make further changes by renaming Libra’s wallet provider from Calibra to Novi.

Featured Image Courtesy of AlJazeera

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Source: https://cryptopotato.com/facebooks-libra-could-reportedly-arrive-in-january-2021-in-a-scaled-down-version/

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Bitcoin Worth $500 Million Withdrawn From OKEx as Users Look for Other Alternatives

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Users withdrew a record 29,300 BTC from OKEx after the Malta-based cryptocurrency exchange resumed withdrawals yesterday. This comes after bitcoin (BTC) price kickstarted its epic freefall dropping to levels near $16,500 before bouncing back up again. But what is the reason behind the massive bitcoin exodus out of OKEx?

OKEx Sees Significant BTC Withdrawals And Deposits

As per the latest update from on-chain and market analysis firm Glassnode, OKEx users have withdrawn a record 29,300 bitcoins after the exchange gave the green signal for resuming withdrawals yesterday. These BTC transactions amount to roughly $5 billion (considering the current spot rates).

Glassnode also observed a deposit of 21,600 BTC on OKEx. Withdrawals and deposits together had a depreciating effect on the exchange’s overall bitcoin balance which reduced to around 212,000 BTC.

The potential cause behind the massive exodus of bitcoin holdings could be a result of users leaving OKEx in search of other alternatives. Binance, Huobi, and some third party wallets were at the receiving end of the initial bitcoin transfers from the exchange.

Users Dissatisfied With OKex; Seek Other Alternatives

OKex announced the resumption of withdrawals on November 19. Few folks welcomed the developments, but most of them seemed miffed with the exchange’s recent bitcoin and crypto withdrawal suspension, with a lot of users demanding compensation else they make their move to other platforms.

Large BTC Deposits Point To ‘Centralized Failure’ Risks

As reported by CryptoPotato, OKEx had more than 200,000 BTC stored in their wallets during the ‘withdrawal lockdown.’

Although OKEx CEO Jay Hao assured users that their funds are safe and that there’s no “cause for alarm,” the vastness of the above bitcoin stash is pretty alarming. Especially because it is controlled by one single organization.

What’s more disappointing is that the official who had access to the private keys was ‘out of touch’ with the management. The OKEx personnel wasn’t able to reach out to him. This is not desirable since it poses huge risks to these BTC stashes falling prey to coordinated attacks that target centralized points of failure.

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Source: https://cryptopotato.com/bitcoin-worth-5-billion-withdrawn-from-okex-as-users-look-for-other-alternatives/

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