BITCOIN dropped again Thursday morning in early trading, as internet searches for crypto ATMs and wallets ramp up.
Amid fears of falling into the death cross indicator following a dip of 37.28 percent, Bitcoin was able to rebound to $42,000, before reaching slightly higher levels.
Currently sitting at $42,739.40 per (BTC / USD), Bitcoin saw a sharp decrease in value within 24 hours as it had dipped below $40,000 per (BTC / USD).
This, as Forbes’s contributor Philipp Sandner predicts Bitcoin could reach $100,000 in 2022, and the crypto asset market will be expanding.
However, experts have weighed in with warnings about the volatility of Bitcoin.
Commenting on this, Shivan Thanral, CEO of BuyUCoin stated: “Bitcoin needs a bit more recovery as RSI is still below 50, indicating that it is in the oversold zone. If bulls try to make an upside move, then the price may soar to around $45,000 level although, in case of any misstep, prices can fall to $38,000-$36,000 zone.”
Read our Bitcoin live blog for the latest news and updates…
Melania Trump launches NFT platform
Former First Lady Melania Trump got in on the NFT craze in December.
She launched a platform for fans to purchase NFTs, including a drawing of her eyes, with a portion of proceeds said to be going to children in foster care.
Mrs Trump plans on releasing NFTs in intervals on her website titled “Melania’s Vision” with the project backed by the free-speech social network Parler.
Crypto audio streaming
Audius is a crypto-powered music streaming platform.
It’s owned and controlled by token holders – and tokens are called Audio.
Audio has been listed on CoinMarketCap since October 2020, and has rocketed in value following a deal with Chinese-owned social media giant TikTok.
What is fantom?
Fantom is a blockchain platform that was founded by a South Korean computer scientist in 2018.
The platform has programs, called small contracts, which allow blockchains to run more advanced transactions than just sending cryptocurrency from one person to another.
Fantom is considered to be a competitor of Ethereum, which also offers small contracts.
Are NFTs regulated?
Currently, there are no official regulations about NFTs.
Thus, it is up to the buyer to ensure that the NFT they are purchasing is a unique piece of work and hasn’t been copied from elsewhere.
The current lack of NFT regulation means there may be no specific entity to investigate a complaint when a sale goes wrong.
What is Blockchain?
A Blockchain is a kind of computer code used to record transactions.
It is the technology at the heart of cryptocurrencies such as Bitcoin and Ethereum.
Blockchains continually grow with new transactions added to the end as extra “blocks” of data.
Can Bitcoin hit $70,000 by the end of 2022?
While Bitcoin came close to hitting $70,000 in November 2021, December that year saw a steady decline in value.
Nevertheless, Wallet Investor boldly predicts that Bitcoin surpass $78,000 by 2023.
And in five years, the price is expected to skyrocket to $203,020.
Cryptocurrency crime reached $14billion in 2021
According to Chainanalysis, cryptocurrency crime in 2021 reached $14billion.
Despite this staggering amount in illicit transactions, only 0.15 percent of transactions in 2021 were affected because the total amount in transactions that year was $15.8trillion.
How to buy Bitcoin
There are digital currency exchanges such as FTX or Coinbase where Bitcoins can be bought and sold.
When setting up a Coinbase account fro example, it can be linked to your bank account or Paypal account to be able to make a deposit into a virtual wallet. After funding the virtual wallet, traditional currency can be exchanged for Bitcoin.
The IRS on cryptocurrency in 2021 taxes
For 2022, 1040 US Individual Income Tax Return form has a question about cryptocurrency which states: “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?”
Additionally, the IRS addresses questions on its FAQ page on digital currencies stating: “If your only transactions involving virtual currency during 2020 were purchases of virtual currency with real currency, you are not required to answer yes to the Form 1040 question.”
What is the difference between a fungible and non-fungible token?
According to The VERGE, the main difference between a fungible and non-fungible token is that a fungible token can be traded, whereas, a non-fungible token cannot be traded.
Thus, a bitcoin, which is a fungible token, can be traded for another bitcoin. However, a unique trading card, which is a non-fungible token, cannot be traded because it is a unique, one-of-a-kind asset.
Bank of England cautions citizens about the risks of trading
The Bank of England warned cryptocurrency traders about the risks of trading.
According to the BBC, 0.1% of UK households had wealth stored in cryptocurrencies, with about two million people holding them.
As a result, Sir Jon Cunliffe, the deputy Bank governor, warned that: “Their price can vary quite considerably and they could theoretically or practically drop to zero.”
What is an NFT? continued
Celebrities, artists, and influencers have used NFTs to promote products in recent times.
As a result, an NFT gives collectors the chance to own a piece of music or art that is unique.
What is an NFT?
An NFT, which is the abbreviation for a non-fungible token, is a certificate that indicates ownership of a digital asset. Thus, original versions of memes or viral videos can be sold in the same way a piece of art is sold.
Since an NFT digitizes a piece of work that is stored on a blockchain, it cannot be replicated, and is unique to whoever owns it.
NFT is Collins Dictionary’s for word of the year in 2021
The abbreviation for non-fungible tokens, NFT, won the award for Collins Dictionary’s word of the year in 2021.
Commenting on this issue, an executive at Collins Dictionary, Alex Beecroft, stated: “Whether the NFT will have a lasting influence is yet to be determined, but its sudden presence in conversations around the world makes it very clearly our word of the year.”
What is Shiba Inu? part one
These meme tokens are listed on its own decentralized exchange, ShibaSwap.
Its website claims to have locked 50% of its total supply to Uniswap, while the remaining has been burned to Ethereum founder, Vitalik Buterin.
Why is the value of cryptocurrencies unpredictable? continued
Experts have also warned cryptocurrency traders of the dangers associated with trading.
In an interview with The Sun, Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown stated: “Many cryptocurrencies and tokens are heralded as being part of the decentralized finance movement, which aims to disrupt current payment systems.”
She added: “In this murky world, where the use case of cryptocurrencies is far from proven, traders should only dabble with money they can afford to lose.’’
Why is the value of cryptocurrencies unpredictable?
The value of cryptocurrencies has been unpredictable because of several unrelated factors that have contributed to its depreciation or appreciation in value.
For instance, the value of cryptocurrencies slumped in May 2021 because of a tweet by Elon Musk, where he stated that his company, Tesla, will no longer accept Bitcoin payments because of the negative environmental impacts of mining cryptocurrencies.
Within that same month, the value of cryptocurrencies decreased when the Chinese government banned crypto exchanges within the country.
In stark contrast to the reason given by Elon Musk, the Chinese government stated: “Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”
What are crypto fan tokens? continued
A report by BBC News stated that soccer teams have been the main participants in the sale of crypto fan tokens in recent months.
Indeed, it is estimated that over $350million has been spent by fans of soccer teams in England, Spain, Italy, Germany, and France.
What are crypto fan tokens?
Crypto fan tokens, which are also referred to as sports cryptocurrencies, are digital assets that sports teams sell to fans with the aim of strengthening fan engagement.
These fan tokens give fans exclusive access to participate in certain activities of their beloved team. Activities could include, giving fans the chance to vote on the songs to be played in the stadium during a match.
US cities embrace cryptocurrency, part two
Mayor Francis Suarez said he would take his paychecks in Bitcoin and wants residents to be able to pay fees and taxes in the cryptocurrency.
Miami launched a token earlier this year called MiamiCoin, which generated $30million in revenue over three months, Suarez told Bloomberg News.
US cities embrace cryptocurrency
A Tennessee city hopes to become the first in the nation to offer its employees cryptocurrency as a payroll conversion option.
The Jackson Sun reports that a request for proposal (RFP) has been opened, allowing third party platforms to apply to be the city’s cryptocurrency converter.
“We offer our employees a deferred compensation opportunity for their retirement already. Why not add more options?” the mayor told the news outlet.
He said the move will diversify ways city employees can receive payment and allow the city to pay contractors in Bitcoin.
Seven crypto ads banned, part two
The Advertising Standards Authority is looking to produce new guidance on cryptocurrency.
Monitoring crypto assets is a “red-alert priority” for the regulatory agency, BBC News reported.
The news outlet said companies with ads found to have broken the rules were:
- Coinburp: A Twitter page for the cryptocurrency trading platform
- eToro (UK): A paid ad for the stocks and cryptocurrency trading platform
- Payward: A digital poster for Kraken, an online cryptocurrency exchange
- Exmo Exchange: A YouTube video promoting the cryptocurrency exchange
- Luno Money: An in-app ad for the cryptocurrency exchange service Luno
- Coinbase Europe: A paid Facebook ad for the cryptocurrency exchange platform
- Papa John’s GB: A promotion on the Papa John’s pizza restaurant chain’s website and in a Twitter post