ultimatum.
Bitcoin has crossed the $40,000 mark after breaking $30,000 for the first time a few days ago. This extends the bull run beyond the holiday season. By the close of 2020, bitcoin had increased by over 300 percent.
“The $1 trillion mark cements cryptocurrency as an investable asset class that no longer sits on the fringes of Traditional Finance as a toy for retail investors. It demonstrates that this asset class is large enough to absorb large orders like we have seen recently with the slew of institutions entering over the last few months,” Jack Purdy, a Messari decentralised finance analyst, told Coindesk.
Besides the impact from institutional investors, bitcoin could also be rallying as holders move their money from altcoins like XRP that are facing regulatory issues to BTC.
Interestingly, bitcoin is moving up in the ranks of the top currencies in the world. According to FiatMarketCap, bitcoin ranks 16 after currencies such as the US dollar, the Euro, and the Russian Ruble. However, the cryptocurrency is ranking higher than the Norwegian Krone, the Swedish Krona, and the Mexican Peso.
The value of bitcoin has also surpassed that of several publicly traded companies like Alibaba, Samsung, Walmart, Walt Disney, and Visa. According to Coinmarketcap, the total market capitalisation of bitcoin is about $716.5 billion.
Facebook-owned messaging platform WhatsApp has updated its terms and privacy policy giving users an ultimatum to accept the new rules. If a user fails to accept the new terms by February 8, they will not have access to the app.
In 2016, WhatsApp users got a one-time opportunity to withdraw from the data sharing option. However, users will now have to allow the platform to share their data if they want to continue using the app.
“As part of the Facebook family of companies, WhatsApp receives information from and shares information with this family of companies. We may use the information we receive from them, and they may use the information we share with them, to help operate, provide, improve, understand, customize, support, and market our Services and their offerings,” WhatsApp writes in the updated privacy policy.
The platform collects information like your phone number, the phone numbers of the people in your address book, your profile picture, and your status information. The status information includes when you were last seen online. Facebook has in the past come under fire and received fines over how it handles the privacy of its users.
What’s more, the Facebook-backed cryptocurrency Libra has received a lot of criticism from financial regulators since it was announced in 2019. As a result, the project has lost several partners, including PayPal and Visa. Moreover, the Libra Association rebranded to the Diem Association in December ahead of the launch this month.
To learn more about Bitcoin, download the Bitcoin Beginner’s Handbook for free.
Weekly Roundup: Binance Records 5 Million Trust Wallet Users, Bitcoin Price Hits $29,000
Scam Alert! Scammers in Kenya are Now Using Facebook’s Libra to Defraud Crypto Users
Beyond the Hype – Understanding Bitcoin’s Unique Route to Mass Adoption
Emerging Markets More Likely to Adopt Cryptocurrencies from Global Brands, Luno Study Says
Top 5 Freelancer Jobs Platforms That Enable You to Get Paid in Bitcoin
Bitcoin’s 10th Birthday: 10 Bitcoin Predictions with CoinCorner
In the last week of our news compilation series in 2020, we feature new data from Binance and bitcoin’s latest price rally.
With regard to P2P trading, Binance reported total order volumes of $6 billion in 2020. Also, active P2P users rose by 760 percent from 2019. The peer-to-peer service now supports 51 local currencies.
The average daily trading volume on the exchange increased by 36 percent to $3.88 billion. Additionally, over 110 exchanges, lending, and payment platforms have listed Binance USD (BUSD) in 2020 from more than 20.
Binance has also announced that it is supporting SegWit deposits for bitcoin. Users can now select the BTC (SegWit) network to transfer funds to a SegWit address. By using SegWit, you can cut down the fees you pay. Note that Binance already supports SegWit withdrawals for bitcoin. Segregated Witness (SegWit) is a bitcoin protocol upgrade that boosts the network’s transaction throughput.
Bitcoin exceeded $26,000 on Saturday as institutional investors continue to drive the present bull-run. Additionally, the US dollar inflation could also be contributing to the increasing bitcoin price as people turn to the cryptocurrency for protection.
About two weeks ago, bitcoin surpassed the $20,000 mark for the first time since 2017. Some of the institutional investors that could be behind the bull-run, according to an article on Coindesk are SkyBridge Capital, Guggenheim, and MassMutual.
Currently, the bitcoin price is above $29,000 and investors like Scaramucci from SkyBridge Capital believe this is just the beginning.
“In 2021, the success (or not) of their decisions will become clear. This could motivate a whole new wave of institutional investors to follow their lead. MicroStrategy’s $425 million investment in bitcoin, for example, has already more than doubled in value (as of 18 December 2020). These are numbers that will interest any business or investor,” he writes.
Bitcoin news coverage on mainstream media could rise if the price continues increasing beyond $30,000, he says. Although the coverage this year has not been as huge as it was in 2017, it has been positive.
Furthermore, Swanepoel thinks the bitcoin price could rise to new highs if it follows the 2017 halving pattern. Since the May 2020 halving, the bitcoin price has grown steadily. The same trend could persist into 2021.
In this week’s news roundup, we feature the partnership between Paxful and Kenyan music band Sauti Sol and more.
The representative of the band, Colin Gayle, said: “Sauti Sol is excited to partner with an innovative company like Paxful. […] We are hoping to show more Kenyans the wonders of bitcoin and take crypto adoption in the country to the next level.”
Furthermore, Paxful announced that it has registered more than 60,000 new Kenyan users in 2020. The company is also building a school in Machakos County and has set up handwashing stations in Kibera, the largest informal settlement in Africa.
“COVID-19 has dealt a huge blow to many people in Kenya and across the globe. Paxful is committed to reaching as many people as possible to help them better understand the opportunities presented by the crypto-economy. With this in mind, we have a new team in Kenya. The team will continue to learn from our Kenyan users and provide them with the best education and support,” said Paxful CEO Ray Youssef.
Blockchain startup, Electroneum, has expanded its electricity top-up service to four more African countries. These nations include Togo, Ivory Coast, Benin, and Sierra Leone. The in-app service is currently available in Senegal, Mali, Nigeria, Guinea-Bissau, and The Gambia.
“Electricity and mobile phone top-ups are a great way for people living and working away from their home countries to help friends and families by sending them airtime and data or by refilling their electricity meters,” stated Electroneum CEO Richard Ells.
Using the Electroneum app to top-up and send electricity, users can save time and money. Interestingly, Electroneum is the only company that facilitates electricity top-ups with crypto.
“Once the Akoin wallet [has funds, you can transfer the money to another] wallet as long as you are enlisted,” said MMTC CEO Dr. Maurice Simunyu. Furthermore, he explained that you can convert the akoin cryptocurrency to other currencies like USD and the KES. Currency conversion attracts zero fees.
The pilot stage roll-out of the akoin cryptocurrency, which is invite-only, will take place at MMTC. Moreover, it will be the main currency of use in the medical and technology city.
MMTC “is a US $2 billion sustainable metropolis centred around a state-of-the-art medical and technology complex.” The city is located in Butere, Western Kenya. It will have a shopping complex, a hospital, a private airport, and a golf course, among other developments. Also, the development is over 70 percent complete and has been operational since July 2019. The developers could complete the project this month.
“We just announced our partnership with Mwale Medical and Technology City (MMTC). Akoin will process all the transactions occurring within the city,” the Akoin project said in a statement earlier this year.
Bitcoin has made history this week by reaching a new all-time high past the $20,000 mark. This week’s roundup features this story and other news to keep you informed.
“Like with any record-breaking event, it will prompt the question: what is next? In a year of economic uncertainty, bitcoin has not wavered, outperforming the likes of gold and other stocks and shares, so a further increase in 2021 is certainly on the cards,” Luno CEO Marcus Swanepoel reacted.
The new all-time high could partially be attributed to the increasing interest from institutional investors. Additionally, experts are optimistic that the new adopters will stick around because of the increased activity in the space compared to 2017. For instance, there are more uses, protocols, and services in lending and trading.
According to data on Coinmarketcap, bitcoin has a market dominance of 65.4 percent. Moreover, other cryptocurrencies like ether and litecoin are also enjoying increased prices.
Africa is the future of decentralised finance (DeFi), according to the CEO of IOHK, Charles Hoskinson. IOHK is the technology company behind the Cardano network.
Speaking in a YouTube video, Hoskinson said: “Who will be the consumers of DeFi? Who is need of identity systems and payment systems and new ways of representing equities? Will it be the ossified highly regulated markets of the western world, which are invitation-only, or will it be the agile and nimble countries of Africa, Southeast Asia, [which] have no incumbencies and are desperate to compete and thus are open and friendly to retooling and ideas? Given that the human capital, physical capital, and economics are all moving in the right direction, it is my belief that Africa will be the most promising economic environment in the next ten years.”
Cardano plans to focus its long-term development goals on Africa. While he did not reveal the specific details of these plans, Hoskinson said that the project has created the right networks and relationships to roll out flagship deals.
Furthermore, Patrick Rawson from Curve Labs told Cointelegraph during an interview that he believes the next wave of DeFi adoption will take place in Africa.
The implementation of the African Continental Free Trade Area (AfCFTA) will begin on 1 January 2021. This is after African nations signed their approval of the agreement at a recent meeting. 54 African countries have signed the agreement, while 41 nations have presented their tariff offers.
AfCFTA will facilitate trade on the continent by increasing output in the manufacturing, natural resources, and services sectors. It will also change African markets and economies for the better. For example, the agreement could help to elevate 30 million people from extreme poverty, as stated in a World Bank publication.
The implementation of the agreement will focus on small-medium businesses, women in trade, and young entrepreneurs.
According to President Ramaphosa of South Africa, the next step is a single African currency, which could potentially be a digital currency.
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