For a country to be described as being crypto-powered it would need to have recorded a massive adoption of digital currencies, possess scalable blockchain infrastructure that is enterprise-grade, and be recognized as a crypto-innovation hotspot across the globe.
Additionally such a country must have a crypto-sector that enjoys a balanced relationship with the government. One of the countries that would currently tick most of the above boxes is South Korea.
By some estimates the digital currency ownership among the adult population in South Korea is 33% meaning that the concept of ownership of digital assets is already mainstream in the Asian country. Much of the initial interest in virtual currencies in the country was driven by pure speculative greed with prices at some point being close to 40% higher in South Korean exchanges compared to foreign ones.
High penetration rate
The country also boasts of a high penetration of crypto-infrastructure and which has the capacity to handle a big number of consumers. Awareness of digital currencies is also high with most people in South Korea having head about them. Overall the Asian country is the third largest virtual currency market in the world.
Though the regulatory environment with regards to virtual currencies in South Korea has not been very clear in the past, there is general optimism that balanced regulation will be the case. The political base of the current administration of President Moon Jae-in is young adults. This demographic happens to be the one that is most invested in digital currencies. Part of the reason is because the millenials of South Korea have come of age when there is relative prosperity and can thus afford to take greater risks with their investments compared to older generations.
North Korea and China
Some of the reasons that are driving the advanced understanding of virtual currencies in South Korea include the fact that the country?s digital currency markets are being used as vehicles by the Chinese to get money out of their country. Additionally the sanctions that have been imposed on North Korea have also assisted in driving innovation at service providers and exchanges.
In China the citizens are not allowed to send out of the country amounts exceeding $15,400. To get around this Chinese businesses have allegedly been acquiring Korean businesses with a view to using them to move money around.
Mining and aid
With regards to sanctions imposed on North Korea there is speculation that the embargoed country is getting aid in the form of virtual currencies as this is impossible to track. There is also speculation that the North is undertaking the mining of virtual currencies. It has also been suggested that North Korea is involved in hacking and stealing virtual currencies from exchanges around the world.
This has resulted in South Korean exchanges such as Bithumb experiencing a lot of activity leading to innovation on scaling and security. Besides blockchain and cryptocurrencies these innovations are also likely to benefit other sectors in future.
Another factor that is working in the favor of South Korea is its education system and the engineering talent it is producing. South Korean students for instance are consistently ranked among the top five in the globe in math and sciences.
Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at [email protected].
The post South Korea Is Poised To Become The First Crypto Country In The World appeared first on dippli.
Tether, Bitcoin, and how to revive the passé 60/40 investment rule
In light of rising institutional interest and Bitcoin’s press time RoI of 53.17% YTD, it may be the right time to evaluate what comes after 60/40. Once the mantra of Wall Street Bulls, 60/40 is now a passé strategy. Allocating 60% broadly to stocks and 40% to bonds assured relatively good returns with low-risk exposure back in the 80s and 90s. Fast forward to 2020 and now, alternative investors are eyeing Bitcoin to balance the performance of portfolios afflicted by the Fed’s 0 to negative interest rates and the unpredictability of global stock markets.
Despite the volatility associated with Bitcoin, its RoI has climbed steadily YoY. The risk-reward ratio is low when the investment period is longer than a quarter, and this has been especially true since 2019. In fact, in January 2019, BTC’s price was $3732, before it hiked by 130% to hit $8572 in June 2019.
It should also be noted that there were several profit-taking opportunities at 50%, 70-85%, and 130%. Depending on the desired returns on the portfolio, managers could capitalize on the opportunity and exit based on their risk appetite.
This year, Bitcoin’s RoI is perhaps a little underwhelming at 52%. However, before the recent collapse in BTC’s price, there were profit booking opportunities from 27 July 2020 right up to 3 September 2020. This also coincided with the post-halving price rally of this market cycle. Having established that returns are lucrative to asset managers, what is the barrier to entry?
Buying cryptocurrencies using fiat like USD is one of the top deterrents as most fiat-crypto exchanges charge a premium or high fees on entry and exit. The rising popularity and market capitalization of USDT have tackled this challenge effectively. In the past 3 months alone, stablecoins have consistently added $100M a day in market capitalization. In fact, so potent has the rise of stablecoins like USDT been, that it has risen to 3rd on the rankings by market cap, only behind Bitcoin and Ethereum and well ahead of XRP.
With its supposedly transparent reserves, high market capitalization, and low transaction fees, Tether has made it easier for new players to enter fiat-crypto markets/transfer funds across crypto-exchanges. 2020, ergo, may truly be the year of Tether.
Tether provides liquidity and the opportunity to purchase Bitcoin or altcoins at market value. However, it also provides a true hedge against inflation. It has become a replacement for the USD in countries like Russia and China.
Transferring USD across borders for investing in international business or products comes at a high premium. However, Tether has dropped the barriers and reduced cross border transaction costs drastically. Its adoption is driving its market capitalization and its ease of access and availability is helping institutional investors save millions spent in fees and paid in premiums on exchanges globally.
Contrary to popular perception, relying entirely on the US Dollar may not be the best move in uncertain times. Hence, it is time to replace the traditional 60/40 with an optimized strategy where at least 10% is invested in Bitcoin, held for a quarter or two. Bitcoin, alone, won’t do either. As teenage Bitcoin billionaire Eric Finman once said, “Invest 10% of your income into top cryptocurrencies.”
This 10% can be invested into the top 25 altcoins ranked by market capitalization while another 10% can be held in Tether. Tether is the most crucial cog in this portfolio boosting machine. During a bloodbath, traders are left with two options – Hodling assets in their portfolios as they race to the bottom or converting them back to fiat on fiat-crypto exchanges and booking losses.
However, stablecoins like USDT give traders a third option – converting their crypto-assets to Tether and HODLing through the bloodbath, thus avoiding losses and converting to USD at low fees and near-zero volatility.
Ergo, Tether might just be the key to unlocking 60/40, while introducing a balanced basket of crypto-assets to investor portfolios in 2020.
Hackers Have Been Trying To Crack Bitcoin Wallet Worth $750 Million But Here’s The Catch
A bitcoin wallet containing a little over 69,000 BTC is doing the rounds in hacking communities all over the internet. The reason? It’s obvious.
Everyone (read seasoned hackers and self-professed bitcoin wallet crackers) wants to break it open and take it all. Or at least, a slice of the almost $750 million pie. For the last two years, however, no one has been able to ‘strike it lucky.’
Hackers Tried Cracking The 7th Largest Bitcoin Wallet In The World
According to cybersecurity expert Alon Gal, who goes by the handle ‘UnderTheBreach on Twitter, hackers have been trying to break open a bitcoin wallet holding around $720 million worth of BTC (considering today’s rates). However, Gal reported that no one has posted any success regarding the same.
Get this – there is a Bitcoin wallet with 69,000 Bitcoins ($693,207,618) that is being passed around between hackers/crackers for the past 2 years for the purpose of cracking the password, no success so far.
— Alon Gal (Under the Breach) (@UnderTheBreach) September 8, 2020
As it so happens, the bitcoin wallet in the discussion has the 7th largest BTC stash in the world.
It Is Now Available Online For Everyone To Try
While some folks have tried breaking in themselves, most of them admitting failure has advertised the wallet on online hacking forums for somebody else to do the job.
Alon revealed this to Vice in a one-on-one chat regarding the matter:
Stealing Bitcoin wallets from victims worldwide is a common goal among cybercriminals. Wallets tend to be protected by strong passwords and in the event that a cybercriminal manages to obtain a wallet and cannot crack the password he might sell it to opportunistic hash crackers who are individuals with a large amount of GPU power
Gal noticed one such advertisement on a popular hacking forum RaidForums. And not just hacking portals, the wallet showed up on BitcoinTalk on June 29 last year. After that, on All Private Keys and then Wallet-dat(dot)net.
But Does It Contain The 69,370 BTC Though?
The bitcoin wallet seems like a tough nut to crack. But the important question to ask is – Does it contain the BTC? Although it has an alphanumeric address, it is quite possible that the ‘wallet.dat’ file is ‘doctored.’ There is a public key available but not the private key.
The founder of Wallet Recovery Services, Dave Bitcoin, said that:
It’s possible to doctor a Bitcoin wallet.dat file to make it seem like it contains a high balance. The wallet file contains pairs of public key & encrypted private key of the addresses it controls. So one could modify the file in a binary editor and change the public key of one of the address pairs to that of a high value BTC address.
It may be a bait to beguile folks into making bitcoin payments for a shot at cracking a wallet that doesn’t actually have any BTC.
Breaking In Could Be Impossible
According to another assumption, cracking open this bitcoin wallet may be outright impossible. But why?
Quite possibly, the wallet is protected by a long, unique, and difficult to crack the password. Apart from this, the wallet.dat file may be encrypted using a combination of AES-256-CBC and SHA-512 algorithms. These are super slow to process, making it all the more difficult to ‘brute force’ them open.
Huobi Buysback $24 Million HT
One of the biggest crypto exchange handling some $2 billion in daily trading volumes has burned 4.872 million Huobi tokens (HT), worth about $24 million. “The month on month burnt…
One of the biggest crypto exchange handling some $2 billion in daily trading volumes has burned 4.872 million Huobi tokens (HT), worth about $24 million.
“The month on month burnt HT has increased by 97%,” they say while the “circulation deflation rate for the month is about 1.63%.”
So the supply is decreasing by 1.63% a month, with Huobi stating their trading volumes have doubled recently.
Some of their profits are meant to go towards this token that has a total supply of 500 million HTs.
A cool 219 million has been burned, with some 100,000 of it destroyed in just the past two months:
The zero address is the ethereum network address. It’s ‘owned’ by the eth nodes, as in the protocol itself, with it not having a private key.
So this 219 million has gone now with it unable to exchange hands any further as the tokens have effectively been destroyed and are now kind of a museum piece.
This burning of tokens is meant to act as a dividend distribution of sorts with that reduced supply leading to a price appreciation in theory provided all else is equal.
There hasn’t been any notable change in the price of Huobi, however, perhaps because it faces much competition from many new tokens that provide governance rights and ownership over dapps.
Uniswap is the latest example, with this being a decentralized exchange that is now to go through token holders votes to set numerous parameters, including how the daily fee revenue of about $1.5 million is to be distributed.
There are two main methods currently. YFI requires staking with only those that lock the token and vote on governance getting the fees.
Somewhat indirectly this locking would benefit those that are not staking as well due to it temporarily reducing supply, but the main reward goes to those that do a bit of work like voting.
The other method was kicked off by Binance with it being more like the traditional stocks buyback where you use the profits to buy the token and take it out of circulation.
That’s done wonders for Binance’s BNB price which has increased by nearly 10x since it launched to a market cap of $4 billion.
With a decentralized dapp, it’s not clear how this buyback can be done in a code based way as in the case of sushi for example, the token holders voted for the buyback, but an individual with custody over the eth carried out the operation.
Theoretically, there’s no reason why the code can’t do the buyback itself with Andre Cronje probably able to write it up within a week.
The code currently gives the fee of 0.3% to Liquidity Providers (LPs), so to set it to ‘buy uni on the uni/eth pool and burn’ shouldn’t be hard.
That would then make this a deflationary token, with it being a proper share ownership of a code based automated business.
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