Ever since Bitcoin made an entrance and became a household name, experts have been wondering if a transition to an entirely cashless economy is likely. As the rest of our world has become increasingly digitized, it seems ever more likely. For example, NJ Online Casino List has recognized that more and more people are moving towards online casinos as every element of our economy, including gaming, moves to the digital world.
However, it is easier for some elements of the economy to make the transition to digital than others. Many people rely on cash, and some countries and cultures are more likely to prefer cash to using cards, mobile payments, or cryptocurrencies. So how likely is it that we really will live to see a cashless economy?
The rise of digital
When considering the likelihood of a cashless future, it can be useful to reflect on the rise of digital in the economy. Only ten years ago, roughly six of every ten transactions were made using cash; now, out of every ten transactions, about three are made using cash.
This massive increase in the use of digital transactions is in part because of the improvement in technology and security, along with the cost of digital slowly decreasing. Even in the last few years, digital payments have become easier to make, and a slew of online banks and cash sharing apps have bolstered the digital tidal wave.
The shift towards digital makes it clear that our payment methods are changing quickly and that, for the most part, consumers are willing to adopt these new changes and payment techniques. As smartphones become more and more ubiquitous, and we continue to engage with the digital economy, digital transactions and payments will grow in popularity.
The potential dangers of going cashless
So, what is stopping countries around the world from fully transitioning to a cashless economy? Several factors are slowing down the move away from cash. It is true that going cashless can help a country to cut down on crime and to more easily collect essential data? Some potential issues and challenges are also associated with the transition away from cash.
One of them is technology. While there has undoubtedly been a massive increase in the amount and quality of digital payments technology, more digital infrastructure is needed before a full transition away from cash is possible. Security is another concern as an increased move towards digital payments means that there will be more cybersecurity threats and attacks.
In 2019, an independent report titled “Access to Cash Review” was published in the UK, and it highlighted a number of the associated risks. The report warned that financial institutions and banks already underserve working-class individuals, low-income families, and people from rural areas in the UK, which are rapidly transitioning to digital payments and services. The “Access to Cash Review” noted that a large portion of the UK population – up to 17% – would struggle if the economy continued to transition away from cash.
In every population, some demographics are less well connected to the digital economy than others. When the economy moves away from cash and towards fully digital payments and transactions, the challenge then becomes inclusions and ensuring that everyone in society is still able to participate in the economy.
The move towards an entirely cashless economy is one that takes years of research and in-depth coordination with individuals and interests from every element of society. However, with such a massive shift in economic behavior, the process mustn’t be rushed.
Sweden leading the charge
Sweden was one of the countries to push forward with a transition to a fully digital economy. Now other countries can look to Sweden to learn about the benefits and pitfalls of going fully digital. In Sweden, it became clear that retailers and banks preferred digital transactions, and most citizens preferred digital unless they felt they were being forced to adopt it.
However, many people in Sweden also felt like they had been forgotten and left behind during the transition. Some individuals thought that they had been socially excluded and also found that, for them, it was suddenly much more difficult to budget as they were accustomed to using cash to balance their budgets.
As Sweden continues to transition and develop its economy, other countries in the world can look to its example and learn about the challenges and benefits of transitioning.
Yearn.finance Could Confirm a Mid-Term Bottom if It Does These 2 Things
Yearn.finance’s governance token – YFI – has erased a significant portion of its recent gains throughout the past few weeks, with relentless selling pressure coming about due to various factors.
Heightened “founder’s risk,” a fragmented community, and low yields for the ecosystem’s yVaults have been degrading the value of the YFI token.
News of a major crypto fund investing $5 million into the YFI token did provide its price with a serious boost yesterday. However, it is important to note that this is only a small percentage of the fund’s total AUM.
It has been able to hold onto the majority of its recent gains, and its price is showing continued signs of strength as it consolidates around $15,000.
Its short-term uptrend may be bolstered by the significant push higher seen by both Bitcoin and Ethereum today.
One analyst is now noting that there are two things he is closely watching for before flipping macro long on the Yearn.finance token.
He claims that until YFI can retrace and bounce at a key trendline, it could still be on track to reel to below $10,000.
Yearn.finance’s YFI Stabilizes as Crypto Market Trends Higher
At the time of writing, Yearn.finance’s YFI is trading down less than 2% at its current price of $15,000. This is around where it has been trading throughout the past day.
Late last week, its price plunged to $13,000 before news broke regarding Polychain’s $5m allocation to YFI – making them one of the token’s largest holders.
This boosted investor confidence in the project and sent its price surging towards $16,000.
It has since retraced from its daily highs but is looking stable as the aggregated crypto market trends higher.
Here are the 2 Things YFI Must Do Before Breaking Its Downtrend
One analyst shared that he is closely watching for Yearn.finance to do 2 things before flips long.
He specifically notes that YFI must retrace and then post a rebound at a key trendline that exists just below where it is currently trading.
“About to become a DeFi maximalist, but not just yet… Waiting for: 1. Retrace 2. Buying contact with resistance (hopefully new support). Invalidation back below dotted line. Patience is key, no need to rush this,” he said.
Image Courtesy of Teddy. Source: YFIUSD on TradingView.
As seen in the above chart, if YFI loses its momentum and breaks below its descending trendline, a move towards $6,000 could be imminent.
Featured image from Unsplash. Charts from TradingView.
Market Wrap: Bitcoin Bounces to $11.8K; Over 10K BTC Locked in Harvest Finance
Bitcoin traders hit the buy button Monday while a DeFi project gains $135 million in BTC locked since the start of September.
- Bitcoin (BTC) trading around $11,689 as of 20:00 UTC (4 p.m. ET). Gaining 2.2% over the previous 24 hours.
- Bitcoin’s 24-hour range: $11,409-$11,839
- BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.
Bitcoin’s price is making major gains Monday, with a rally starting around 12:00 UTC (8 a.m. ET) and the price jumping from $11,477 to as high as $11,839 on spot exchanges such as Bitstamp within hours. Since then, the price has settled around $11,689 as of press time.
Katie Stockton, a technical analyst for Fairlead Strategies, said bitcoin began a bullish run on Oct. 18, when the price per one BTC began trending above a key moving average. “Bitcoin has been consolidating since breaking out above its 50-day moving average,” Stockton told CoinDesk.
“Short-term momentum remains to the upside within the intermediate-term uptrend, suggesting the consolidation phase will give way to a test of August’s high,” she added.
The record price level for 2020 so far occurred Aug. 17, with bitcoin hitting $12,476 on spot exchange Bitstamp.
While bitcoin trading volumes and transactions have been quiet as of late, momentum, in the form of bitcoin spot volume, has been higher than usual Monday. Volumes on major USD/BTC are at $473,739,764 Monday, already higher than the past month daily average of $348,110,579.
John Willock, CEO of crypto asset manager Tritum, said he sees bitcoin’s price passing $12,000 again soon. “Definitely $12,000 is easily in sight,” he said. “The potential for U.S. fiscal stimulus that is broadly anticipated is likely to result in more price surges in haven/hedge assets like bitcoin and gold.”
Constantin Kogan, partner at crypto fund-of-funds BitBull Capital, noted a low in bitcoin miner revenue from fees. “The share of miners’ revenues from transaction processing fees fell to a three-month low of 3.49% over the weekend,” he said.
Indeed, miners’ revenues from fees was the lowest point for that metric since July 12, when it dropped to 2.52%. Some of that can be attributed to low volatility and transactions being processed on the Bitcoin network, according to Kogan.
On Oct. 18, 231,437 transactions were processed on the network, a 40% fall from July 1, when 382,408 transactions were recorded. “Revenues of BTC miners have fallen amid low market volatility,” Kogan noted.
Investors plow BTC into Harvest Finance on Ethereum
Ether (ETH), the second-largest cryptocurrency by market capitalization, was up Monday trading around $379 and climbing 1% in 24 hours as of 20:00 UTC (4:00 p.m. ET).
The decentralized finance, or DeFi, space is still attracting bitcoiners looking to increase profits. The project Harvest Finance, which allows users to deploy crypto automatically to popular DeFi projects, has gone from almost zero BTC in early September to surpass 10,000 BTC Sunday.
Total BTC locked in Harvest Finance Monday as of press time was 11,479 BTC, $135,394,805 at current prices and nearly $348 million in total assets locked.
When asked about the bitcoin being parked in protocols like Harvest Finance, Brian Mosoff, chief executive officer of investment firm Ether Capital, remarked on the lower volatility and the potentially lower trading returns for bitcoin versus ether.
“Bitcoin has lower volatility than ETH so it also may be ‘safer’ to put it into DeFi, and this may be another contributing factor,” Mosoff said.
Digital assets on the CoinDesk 20 are mostly green Monday. Notable winners as of 20:00 UTC (4:00 p.m. ET):
Notable losers as of 20:00 UTC (4:00 p.m. ET):
- Oil was down 0.29%. Price per barrel of West Texas Intermediate crude: $40.62.
- Gold was in the green 0.18% and at $1,901 as of press time.
- U.S. Treasury bond yields were mixed Monday. Yields, which move in the opposite direction as price, were up most on the 10-year, jumping to 0.762 and in the green 1.3%.
ETH Price Analysis: Ethereum’s Sideways Action To End At $400 Or $360 First?
ETH/USD – Bulls Defend Support at 2019 Highs
Key Support Levels: $364, $355, $346.
Key Resistance Levels: $380, $396, $400.
Last week, Etheruem had surged as high as $396 as it hit the resistance provided by a bearish .5 Fib Retracement level. Over the week, Ethereum started to head lower from here as it broke beneath $376 to reach the support at the 2019 High at $364 on Friday.
ETH bounced higher over the weekend as it reached as high as $380. However, the coin is now facing short term resistance at a falling trend line and must overcome this level to continue higher toward $400.
It’s worth noting that the cryptocurrency is trapped in a range and it’s unable to break from it for the time being.
ETH-USD Short Term Price Prediction
Looking ahead, if the buyers manage to break the trend line and head above $380, the first level of resistance lies at $396 (bearish .5 Fib). This is closely followed by resistance at $400. Beyond $400, additional resistance lies at $410 and $416 (bearish .618 Fib).
On the other side, if the sellers push beneath $375, the first level of support lies at $364 (2019 Highs). Beneath this, support lies at $355, $346 (100-days EMA), and $336.
ETH/BTC – ETH Trading Inside Consolidation Pattern.
Key Support Levels: 0.032 BTC, 0.0315 BTC, 0.0311 BTC.
Key Resistance Levels: 0.0337 BTC, 0.034 BTC, 0.0347 BTC.
Against Bitcoin, Ethereum is currently trading within a symmetrical triangle pattern that started in the first week of September. Each time the bulls attempt to push above the triangle, they are rejected by the upper boundary and head lower.
Last week, they tried to push above 0.0337 BTC (March 2019 Support – now resistance) but failed to follow through. As a result, they headed into the lower boundary, where the market rebounded over the weekend to reach the current 0.0327 BTC level.
ETH-BTC Short Term Price Prediction
Looking ahead, if the buyers can break the upper boundary, the first level of resistance lies at 0.0337 BTC. Above this, resistance is expected at 0.034 BTC, 0.0347 BTC, and 0.0352 BTC.
On the other side, the first level of support lies at the lower boundary of the triangle. Beneath this, support lies at 0.032 BTC (100-days EMA), 0.0315 BTC, and 0.0311 BTC (.618 Fib Retracement).
The RSI is at the mid-line, which shows the market is in a state of indecision. For a break above the triangle, the RSI must break the mid-line to show bullish momentum within the market.
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Cryptocurrency charts by TradingView.
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