Bitcoin Likely to Hit $100K Within The Next 3 Months — 10X Research
All indicators and current happenings around the globe point to the fact that Bitcoin is poised to spike in price. However, the extent of this imminent price surge continues to be a subject of debate, with many analysts sharing varying forecasts. One of the most recent predictions is the one by crypto research firm 10X Research. According to 10X, all things being equal, Bitcoin is likely to attain the $100,000 price level by January 2025. Meanwhile, BTC price target that the firm has set is based on its prediction model, which recently triggered two buy signals. As 10X claims, the model has been 86.7% accurate for the last 15 signals. So, though the prediction appears a little ambitious, a price surge of at least some considerable amount might be certain. Still, the researchers are standing by their 6-figure price prediction. The explanation, as detailed in the official report, reads: “When Bitcoin sets a new six-month high for the first time in 6 months like it did recently, we typically see a median return of 40% over the next 3 months.” If these calculations are anything to go by, then a 40% rise from the current market price of $73,000 will see BTC surpass $101,000 by January 27, 2025. Then there is the “Bitcoin black hole effect.” Value keeps flowing out of altcoins into Bitcoin, continually establishing the dominance of the flagship cryptocurrency. Institutional Investors Rally Behind Bitcoin As many predictions suggest, a bull run might even already be playing out. However, now more than ever, institutions such as BlackRock are getting more involved. The 10X Research report suggests that the growing interest from institutions is because they now also see BTC as a great store of value. This explains the massive amounts of institutional investments that has been flowing into the coin.For context, the spot Bitcoin exchange-traded funds (ETF) market attracted $4.1 billion worth of BTC in October alone.
Harris vs. Trump: Who’s Winning the Crypto Community’s Support in 2024?
With different prominent crypto figures publicly endorsing each candidate, it is clear that cryptocurrency and blockchain issues have now become extremely important, even within the political space.
Privacy Cryptocurrencies: What Are These Assets?
Cryptocurrencies have long captured the attention of illicit actors, being utilized in both minor and high-profile criminal activities. However, as authorities work to track and combat these actions to uphold the law and maintain financial integrity, they may find an unexpected ally in Bitcoin and other cryptocurrencies, which often provide more transparency than traditional currencies. Privacy-focused cryptocurrencies, however, present a different challenge. Designed specifically to enhance user anonymity and instill confidence in transactions, these coins offer distinct advantages in terms of privacy. At the same time, they raise significant concerns around financial transparency, regulatory compliance, and their potential misuse. The ongoing debate over privacy coins underscores the inherent tension between the need for security and transparency on one side and the right to privacy on the other. In this article, we’ll dive into the world of privacy cryptocurrencies, their significance, how they operate, and explore the leading privacy coins in today’s market. Recommended reading: Solving the Dilemma: Privacy vs Transparency in Crypto Key Takeaways What Are Privacy Cryptocurrencies? Privacy cryptocurrencies are a specialized category of cryptocurrencies that differ significantly from Bitcoin and Ethereum. While Bitcoin operates on a public ledger known as the Bitcoin blockchain, where anyone can view transaction details such as the sender, receiver, and amount transferred, privacy-focused cryptocurrencies work differently. Although Bitcoin users’ identities aren’t directly disclosed, the transparency of the blockchain helps investigators trace transactions and potentially identify individuals. In contrast, privacy coins employ advanced cryptographic techniques to conceal transaction details, providing a much higher level of anonymity. Basically, while all cryptocurrencies leverage blockchain technology to ensure decentralization and security, privacy coins add another layer by concealing details of the transaction, such as the sender’s and receiver’s identities, and even the amount transferred. Despite their potential for misuse, privacy cryptocurrencies are designed to offer everyday users greater financial independence and control. Katie Haun, a former prosecutor who transitioned to a crypto venture capitalist, acknowledged that blockchain technology facilitates the tracking of criminal activities, stating: The History of Privacy Coins The concept of privacy cryptocurrencies emerged as a direct response to the transparency and traceability inherent in Bitcoin’s blockchain. While Bitcoin is often mischaracterized as a privacy-focused cryptocurrency, it operates using a pseudonymous wallet system. Transactions happen under public keys, which, while not displaying explicit personal information, can be traced back to individuals through various investigative techniques. To address this limitation and improve transactional privacy, early cryptocurrency developers began experimenting with mechanisms like mixing services and, most notably, privacy coins. The Early Days In 2012, Bytecoin, regarded as the first privacy cryptocurrency, was launched. It introduced CryptoNote technology, which significantly enhanced privacy features compared to Bitcoin. This included ring signatures, which enabled transaction mixing, and one-time addresses, providing users with greater anonymity. Despite its innovative technology, Bytecoin’s launch was marred by controversy due to allegations of pre-mining, which generated skepticism and hindered its adoption in the broader cryptocurrency community. Recommended reading: Private Key Storage and Management: A Comprehensive Guide Other Top Privacy Coins Dash (DASH) Dash, like many other altcoins, is a fork of the original Bitcoin code. The name “Dash” is derived from a blend of “digital” and “cash.” Launched in January 2014, Dash is recognized as the first privacy coin in the cryptocurrency space. Its pioneering role in this category contributes to its substantial value, currently at $297 million. Dash’s anonymization strategy centers around a feature known as PrivateSend, which is based on the CoinJoin mechanism. This feature mixes multiple transactions into a single transaction to obscure their origins. While not as private as Monero or Zcash, Dash offers optional privacy, allowing users to toggle between private and public transactions. Its emphasis on speed and low fees has made it popular for everyday use, particularly in regions with unstable currencies. Monero Monero is the most well-known privacy cryptocurrency globally. Launched in April 2014 as a fork of Bytecoin, Monero (XMR) was designed with a clear focus on privacy. Using CryptoNote technology, it introduced features such as ring signatures, stealth addresses, and Ring Confidential Transactions (RingCT) to conceal transaction amounts. These advancements brought Monero into prominence, making it the leading name in privacy coins. Today, Monero stands as the most established and trusted privacy coin, with a market capitalization of $3.2 billion. Its prominence has even led the IRS to offer two bounties worth $625,000 each in an effort to break its privacy protections. Zcash Launched in late 2016, Zcash (ZEC) introduced an innovative privacy technology known as zk-SNARKs. This technology evolved from the original zero-knowledge proof (ZKP) concept, developed at MIT, and was first implemented in the Zcash protocol. zk-SNARKs enable users to verify the validity of transactions without disclosing any transaction details. Likewise, Zcash offers users the flexibility to conduct either shielded or transparent transactions, providing a choice of privacy. However, zk-SNARKs require substantial computational power, raising concerns about accessibility and centralization. Additionally, they necessitate a trusted setup, a process for generating initial cryptographic parameters that depend on the trustworthiness of specific individuals or entities. The protocol currently has a market cap worth about $517 million. Verge (XVG) Verge is a privacy coin designed for everyday transactions. Launched in October 2014, this open-source, volunteer-driven project offers a fast, efficient, and decentralized method for conducting direct transactions while ensuring user privacy. Verge focuses on anonymity through Tor (The Onion Router) and I2P (Invisible Internet Project), which hides the IP addresses of users. The protocol also has stealth addressing capabilities. Verge’s integration of Tor and I2P ensures that not only the transaction details but also the network location of users remain hidden, making it a favored option for those seeking network-level privacy. The protocol has a modest market capitalization of $63 million at the time of this writing. Beam (BEAM) Launched in January 2019, Beam is a versatile cryptocurrency project that integrates privacy, gaming, and decentralized governance into its framework. Beam is built on the MimbleWimble protocol, which ensures that transaction amounts and participant addresses are hidden. It also implements Confidential Assets, allowing users to
Top 10 Cryptocurrency Lending Platforms for Beginners
Are you seeking a new way to invest your cryptocurrency, or in need of a loan but tired of traditional banks? If so, crypto lending might be worth exploring. Crypto lending is a rapidly growing trend that’s attracting both investors and borrowers. It operates as a form of peer-to-peer lending, allowing individuals or institutions to lend or borrow cryptocurrencies through decentralized platforms. In this article, we’ll provide a complete overview of crypto lending, including how it works, its benefits and risks, and highlight the top 10 cryptocurrency lending platforms for beginners. Key Takeaways Overview of Cryptocurrency Lending Platforms Cryptocurrency lending platforms allow users to lend their digital assets in exchange for interest payments or borrow crypto using collateral. These platforms leverage smart contracts to facilitate the process, ensuring transparency, security, and decentralized control. Unlike traditional financial systems, where banks serve as intermediaries, cryptocurrency lending platforms remove the need for intermediaries, enabling peer-to-peer (P2P) transactions. According to Reuters, Crypto lenders make more money by lending out digital tokens to investors or crypto companies in exchange for a fee, which typically ranges between 5% and 10%. On the other hand, borrowers may use these tokens for various purposes, including speculation, hedging, or as working capital for their operations. Also, crypto lending platforms can be either centralized or decentralized, offering different interest rates based on the platform and various other factors. Borrowers can use these platforms to secure cash loans by using their crypto assets as collateral. This allows them to access funds without selling their cryptocurrency holdings, which can be particularly advantageous during market downturns. Types of Loans There are different loan types on crypto lending platforms that investors can access. Here are some examples: Collateralized Loans Collateralized loans are the most common type, requiring borrowers to deposit cryptocurrency as collateral. Most platforms enforce over-collateralization, meaning borrowers can only access a portion of their collateral, typically less than 90% of its value. The lower the loan-to-value (LTV) ratio, the lower the interest rates, which also reduces the risk of a margin call. Crypto Line of Credit Some platforms offer a crypto line of credit instead of a traditional loan with fixed terms. This is a collateralized loan where users can borrow up to a certain percentage of their deposited crypto, but without set repayment deadlines. Interest is only charged on the amount withdrawn, offering more flexibility. Uncollateralized Loans Uncollateralized loans are less common and operate similarly to personal loans. For this type, borrowers must submit an application, undergo identity verification, and pass a creditworthiness assessment. Since there’s no collateral to liquidate if the borrower defaults, these loans pose a higher risk for lenders. Flash Loans Flash loans, typically offered by crypto exchanges, are instant loans that are borrowed and repaid in the same transaction. These high-risk loans are mainly used for market arbitrage opportunities, such as buying cryptocurrency at a lower price in one market and selling it for a higher price in another within the same transaction. Key Benefits of Cryptocurrency Lending Platforms Cryptocurrency lending platforms offer several advantages over traditional lending systems, attracting both retail and institutional investors: High Returns for Lenders Many cryptocurrency lending platforms offer higher interest rates than traditional savings accounts or bonds. Depending on the asset and platform, lenders can earn interest rates as high as 10% to 20% annually. For instance, lenders on the Nexo platform can earn as high as 16% interest in their crypto assets. Access to Liquidity Borrowers can access liquidity without selling their cryptocurrency holdings. This is especially beneficial for investors who want to hold their crypto assets long-term but need short-term capital. No Credit Checks Unlike traditional lenders, cryptocurrency lending platforms do not require credit checks. Loans are secured by collateral, which minimizes the risk for lenders and makes it easier for borrowers to access funds. For instance, the Compound DeFi platform has offered over $797 million worth of loans backed by over $1.9 trillion worth of collateral across 17 markets, all without credit checks to investors. Decentralized and Global Access Most cryptocurrency lending platforms are decentralized, meaning anyone with an internet connection can access them. This global, permissionless access empowers users in countries with limited banking infrastructure or high inflation to participate in lending and borrowing. Risks of Crypto Lending Crypto lending carries several risks for both borrowers and lenders due to the inherent volatility of the cryptocurrency market. Below are some key risks associated with crypto lending: Counterparty Risk When you lend your crypto assets, there’s always the possibility that the borrower may default on the loan. This risk could result in the complete loss of your funds. A notable example of loan default occurred with the now-defunct crypto hedge fund, Three Arrows Capital, which was unable to repay a $670 million loan to digital asset broker, Voyager Capital in 2022. Margin Calls When borrowers pledge crypto as collateral, any significant drop in the collateral’s value can trigger a margin call. This occurs when the loan-to-value (LTV) ratio exceeds the agreed-upon limit. In this case, if borrowers cannot deposit additional collateral to bring the LTV back in balance, they risk having their collateral liquidated. For example, You choose to invest your $20,000 in 200 shares of a company, priced at $100 per share. With a maintenance margin of 30 percent, if the market value of your account drops below $14,285.71, you risk receiving a margin call. Illiquidity Once assets are deposited on crypto lending platforms, they typically become illiquid, meaning they can’t be accessed easily or quickly. Some platforms allow relatively fast withdrawals, but others may impose lengthy waiting periods before you can retrieve your funds. Lack of Regulation Unlike traditional banks, crypto lending platforms are largely unregulated, which means they don’t provide the same protections. For example, U.S banks’ deposits are Federal Deposit Insurance Corporation (FDIC) insured up to $250,000 per depositor. Therefore, in case of insolvency, users’ funds up to that amount are protected. On the other hand, if a lending platform faces insolvency,
Cryptographic Nonce: What It Is and Its Purpose
In the cryptocurrency market, security is paramount. One critical component that often operates behind the scenes is the cryptographic nonce. While it may sound technical, a nonce plays a simple yet vital role in ensuring secure communication and preventing various types of attacks. Essentially, a cryptographic nonce is a random or unique number that is used only once in a secure transaction or cryptographic operation. It ensures that each interaction is distinct, preventing replay attacks and unauthorized duplications. Used in various systems like blockchain and secure messaging, nonces play a crucial role in maintaining data integrity and confidentiality. Whether you’re a developer, tech enthusiast, or just curious about how secure systems work, understanding the purpose of a cryptographic nonce can offer valuable insight into the broader world of digital security. Recommended reading: Encryption Algorithms in Cryptography: An Expert Guide In this article, we’ll explore what a nonce is, its purpose, and how it enhances security across different cryptographic processes. Key takeaway “Every time you authenticate online, a nonce might be securing your data from hackers!” What is Cryptographic Nonce? A nonce, short for “number once,” is a unique value that is used only once in a cryptographic transaction. It is designed to be unpredictable and is often generated randomly or pseudo-randomly. The purpose of the nonce is to ensure that each cryptographic transaction or interaction remains unique, even if the same parameters or data are reused in another context. This singular use makes it a vital security measure in preventing duplication, replay attacks, and unauthorized access in digital communications. Historically, some might have considered the idea of using a single-use number for security excessive or overly cautious, especially when encryption algorithms were deemed sufficient. However, the nonce adds an extra layer of security that has become necessary in an era where attackers constantly evolve their methods to bypass traditional encryption. Understanding the role of nonces changes the way we perceive digital security. Rather than focusing solely on strong encryption, it’s critical to recognize the importance of ensuring that every communication, every transaction, and every data exchange is unique. Nonces provide that uniqueness, and in doing so, they enhance the overall robustness of cryptographic systems. Importance of a Cryptographic Nonce in Securing Communications Cryptographic Nonce in securing communication has the following advantages: Preventing replay attacks The primary purpose of a cryptographic nonce is to protect against replay attacks. In such an attack, a malicious actor intercepts a legitimate data transmission and then retransmits it to deceive a system into performing an action repeatedly. By using a nonce, cryptographic systems ensure that even if an attacker tries to replay a previously intercepted transaction, it will be rejected as invalid because the nonce has already been used. Ensuring security in cryptographic communications Beyond replay attacks, nonces also prevent the reuse of encryption keys, which could otherwise expose the system to vulnerabilities. This makes them a crucial element in securing communications in various industries, from banking and e-commerce to secure messaging platforms. In practice, nonces can be found in systems like blockchain protocols, where they help maintain the integrity of transaction records, and in-session tokens used during web authentication processes. Without nonces, these systems would be far more vulnerable to malicious exploits. As digital threats become more sophisticated, understanding and applying the concept of a nonce is essential for developers and businesses looking to safeguard their data. Key Properties of Cryptographic Nonces Here are the key properties of a cryptographic nonce: Uniqueness One of the key properties of a cryptographic nonce is its uniqueness. Each nonce must be distinct from every other nonce used in previous transactions or interactions. This uniqueness ensures that no two transactions, even if they involve the same data, are ever identical. In the context of securing communications, uniqueness is vital because it prevents an attacker from copying or replaying a previous communication. Today, the uniqueness of nonces is a fundamental part of secure digital communications. For real applications, this means that businesses, developers, and even consumers must pay attention to the implementation of nonces in the systems they use. If a system doesn’t guarantee uniqueness, it could be vulnerable to security breaches. Randomness or pseudo-randomness Another critical property of a nonce is its randomness or pseudo-randomness. Randomness ensures that the nonce cannot be predicted, making it harder for attackers to guess the value and exploit it for malicious purposes. Pseudo-randomness refers to the use of algorithms that produce a sequence of numbers that appears random but is deterministic based on an initial value or seed. In practice, this means that developers and security architects must ensure that the nonces they use are truly random or pseudo-random. Failure to do so could expose the system to brute-force attacks, where an attacker tries multiple nonce values until they find the correct one. One-time use A defining characteristic of a cryptographic nonce is that it should only be used once in any given transaction or communication. The concept of one-time use is directly tied to the nonce’s role in preventing replay attacks and ensuring the uniqueness of each transaction. Once a nonce has been used, it should never be reused, as doing so would compromise the security of the system. In modern cryptographic systems, the one-time use of nonces is an absolute requirement. Whether in blockchain transactions, authentication protocols, or secure messaging, adhering to this principle is essential for maintaining security. “In cryptography, a nonce makes sure no key or data is ever repeated, keeping hackers out.” Recommended reading: How Cryptocurrency is Transforming the Remittance Industry How Cryptographic Nonces Work Cryptographic nonces are essential in various security protocols, ensuring the integrity and security of communications across digital platforms. Role in Cryptographic Systems Cryptographic nonces serve several key roles within cryptographic systems. Their primary function is to ensure that each communication or transaction is unique and secure. Without this, malicious actors could manipulate or replay previous communications to exploit the system. Below are two significant ways cryptographic nonces play a vital role:
A Simple Guide to Cryptocurrency Hedging Techniques
Over the past decade, cryptocurrency hedging techniques have emerged for investors searching for ways to reduce risk while maintaining exposure to digital assets. This came as a result of global investors having been faced with crises on multiple occasions. Some of the well-known ones include the COVID-19 pandemic in 2020, and the collapse of top American banks in 2023. During these times, one of the biggest challenges the crypto market faced was extreme volatility, with prices subject to quick and unpredictable changes. To reduce losses, investors typically go in search of strategies to protect their investments. In this article, we’ll explore cryptocurrency hedging techniques, how they work, and the strategies that can help protect your portfolio in this high-risk market. Recommended reading: Top 10 Largest Cryptocurrency Exchange Platforms Key Takeaway Basics of Cryptocurrency It is no secret that cryptocurrency has become a mainstream investment driver, attracting millions of investors worldwide. As noted by Statista, there are over 600 million crypto users globally. Cryptocurrencies are digital assets that use blockchain technology, a decentralized ledger system that tracks and records transactions across a network of computers. This innovation provides transparency, security, and removes the need for intermediaries such as banks. Blockchain operates by forming a series of blocks, each containing a record of transactions. These blocks are connected using cryptographic hashes, creating an unchangeable chain that records all cryptocurrency transactions. Due to its decentralized structure, no single entity controls the entire network, which enhances its resistance to tampering and fraud. When a transaction is made, it is sent to a network of computers, called nodes, which work together to validate and confirm the transaction. Once validated, it is added to a new block, which is then linked to the existing blockchain. This system ensures transparency and prevents unauthorized alterations, ensuring the integrity of every transaction. Why Is Cryptocurrency Volatile? Cryptocurrency volatility is driven by several key factors: First, market sentiment plays a significant role, with prices heavily influenced by news, social media, and regulatory announcements. For example, Bitcoin’s price surged 20% in 2023 after news of institutional interest but quickly dropped following SEC scrutiny. Another factor is low liquidity compared to traditional financial markets. The crypto market has a smaller trading volume, making it easier for large transactions to cause significant price swings. This often results in sharp fluctuations, as seen in the case of Ethereum’s 94% crash in 2018. Additionally, regulatory uncertainty creates instability. With governments worldwide still grappling with how to regulate cryptocurrencies, any new legislation or bans, like China’s 2021 crypto crackdown, can trigger panic and sell-offs. Finally, the emerging nature of blockchain technology means that the crypto space is still evolving. As developers introduce new use cases or updates, prices may respond dramatically, such as Ethereum’s 10% jump following the successful transition to Ethereum 2.0. What is Cryptocurrency Hedging? A hedge is an investment designed to reduce the risk of unfavorable price movements in an asset. Hedging strategies allow traders to place simultaneous bets in opposite directions, helping to minimize the chances of substantial losses. In financial markets, hedging has long been used as a risk management tool, and it has become a common technique for crypto traders. This is because the strategy enables investors to stabilize the value of their holdings during unfavorable market conditions, though it typically doesn’t generate significant profits. Basically, while hedging can shield your crypto assets from negative market swings, it also limits the potential upside of your investments. However, for risk-averse traders, this trade-off is often worth it to avoid the possibility of losing a substantial portion of their holdings due to sudden price changes in the volatile cryptocurrency market. On that note, we can infer that in the cryptocurrency space, hedging is especially important due to the market’s inherent volatility. Therefore, investors use various techniques, including futures contracts, options, stablecoins, and diversified portfolios, to protect their investments from price swings. “In the words of American investor, Peter Lynch; You get recessions, you have stock market declines. If you don’t understand what’s going to happen, then you’re not ready, you won’t do well in the markets.” Recommended reading: A Simplified Guide to Cryptocurrency Fundamental Analysis Why Hedge Cryptocurrencies? While cryptocurrencies offer substantial profit potential, they are very volatile. For example, in April 2021, Bitcoin surged to an all-time high of nearly $65,000, only to slump to around $30,000 by July the same year. Such surprising fluctuations can lead to significant losses for investors who are unprotected. However, hedging allows investors to maintain their crypto positions while mitigating downside risk. Some reasons to hedge include: The Benefits of Cryptocurrency Hedging There are several benefits to hedging your crypto assets. According to data from investment firm River, over half of the largest hedge funds in the U.S. are now investing in Bitcoin. This shows that more institutions are leaning towards hedging their assets. Let’s look at some of the benefits of cryptocurrency hedging: Risk Management The primary advantage of hedging is its ability to help manage and mitigate risk. In the highly volatile cryptocurrency market, hedging can provide a cushion against sudden price swings, offering a level of protection to your investments. Portfolio Diversification Hedging allows you to diversify your portfolio by utilizing different cryptocurrencies or financial instruments. Diversification is a key aspect of sound investment strategies, as it spreads risk across multiple assets. Profit Opportunities Hedging strategies can also unlock profit potential during bear markets or periods of extreme volatility. In situations where direct investments may carry too much risk, hedging offers an alternative way to capitalize on market movements. Challenges in Crypto Hedging While cryptocurrency hedging offers several benefits, there are also challenges that traders should look out for: Costs Hedging usually incurs additional expenses, such as trading fees, which can reduce your overall profitability. It’s important to weigh these costs against the potential benefits. Complexity Note that some hedging techniques, such as futures and options, can be quite complex and require a solid understanding of market dynamics. Without sufficient knowledge,
Swell Chooses OP Stack Over Polygon CDK for Layer 2 Development
Swell has introduced “proof of restake” to boost Layer 2 security.
NBA Topshot NFT Sales Surge as 2024-2025 Season Begins
NBA Topshot sales rose 94% as the new season began.
