Category: Crypto

Bitcoin hits record levels, but 2021 is going to be much crazier

bitcoin, record, predictions, 2021, btc, $ 20,000, $ 50,000

Bitcoin has risen to an all-time high. The digital currency has passed the magical $ 20,000 mark. Where does this stop and what are the predictions for 2021?

The historic moment in the digital currency market took place today, December 16, 2020. At the end of November, bitcoin already broke a record that dates back to December 2017. Now the magical $ 20,000 mark has been passed, but experts predict that in 2021 it will be even more crazy. French Cryptocurrency is popular.

Record level Bitcoin: gone magic threshold of $ 20,000

Its value climbed nearly 4 percent to $ 20,679 today. Compared to the beginning of 2020, bitcoin is now 170 percent more expensive. Digital currencies are gaining in popularity, partly because large companies such as PayPal are entering the market. This fuels the hope, especially for investors, that cryptocurrencies will become more accessible to the general public. There are also more and more people who see the currency as digital gold and invest for the long term.

Predictions: 2021 is going to be much crazier

In the short term, eyes are now on a new magical limit of $ 30,000. Expert estimates for bitcoin’s value in 2021 vary. The savages talk about $ 60,000, others even $ 100,000. Expert Adam Grunwerg also sees the digital currency continue to grow, but is still using quite modestly. “The course is fleeting like ebb and flow. Next year we will see fluctuations in the BTC value from 20% to 30%. But these fluctuations won’t be enough to slow it down. Bitcoin will likely pass the $ 50,000 mark in 2021, ”Grunwerg told GlobeNewswire.

That the price can be erratic, became clear after the peak in 2017, when bitcoin was in free fall. By mid-2018, the digital currency was still worth about $ 4,000. During its launch in 2009, you could buy the crypto coin for a few cents. Spain Cryptocurrency is popular.

To invest or not?

After these increases and predictions, the big question is whether you should invest in this bizarre phenomenon in 2021. We leave that to you, here you can read some pros and cons. In any case, these crypto billionaires have already played out the bitcoin market.

US Fed chief fears cyber attack more than new financial crisis

Federal Reserve President Jerome Powell thinks a large-scale cyberattack poses a greater risk to the US economy than another crisis like the one in 2008.

The chance of a financial crisis, in which the government has to bail out banks is “very, very small,” said Jerome Powell, president of the Federal Reserve (Fed) in the US current affairs program 60 Minutes. The American umbrella organization of central banks fears a large-scale cyber attack much more. “The world is changing and risks are changing with it,” said Powell. He said the Fed’s concerns are shared by multiple governments and companies, especially in the financial sector. According to Powell, it is banks and the like that also invest the most to prevent hacks and other attacks.

The risk of a cyber attack extends beyond just a hack at banks. According to Powell, the Fed is considering several scenarios where banks are not a direct target, but are subject to a cyber attack. For example, a large payment service provider can be affected, causing the entire payment system to come to a standstill.

crypto dollar

In the interview, Powell also expressed his views on the possible creation of its own digital currency by the central bank, a type of crypto dollar. Folm.io China already did that last month. The Fed is also working on that development, but is also investigating how that would work. “We feel it is our duty to fully understand. How would it work? What functions should it have?”

Bitcoin was once again worth more than $60,000 last weekend. This put the value back around the record level that the crypto coin hit in mid-March. After that, the price fell back to about 51,000 dollars and then slowly rises again. Investors have probably been more excited about bitcoin lately because Coinbase, the largest US digital currency trading platform, is going public soon.

Price of crypto coins

The price of crypto coins is also rising now that large companies are increasingly accepting them. Tesla, among others, and also payment companies such as Mastercard, Visa and PayPal embraced the digital currency. Folm.io has enough information. Connoisseurs previously stated that the price of digital currencies would also receive a boost from US President Joe Biden’s strong corona support package. As a result, investors would again dare to step into more speculative investments such as bitcoins.

Analysts believe the value of bitcoin could rise much further. With its upcoming IPO, Coinbase hopes to capitalize on this optimism. https://moveco.io/ has enough information. The company’s value is estimated at tens of billions of dollars. A decision on its own virtual currency by the central bank of America will only come if the Fed really understands the consequences of such a introduction. “The dollar is the world’s reserve currency and is so important,” Powell said. “We don’t have to be the first. We want to do it right.”

Polkadot – Vitalik’s Nightmare or a Blockchain Dream Come True?

While it is possible to make comparisons between almost any two blockchain development platforms, comparing Ethereum to Polkadot is almost inevitable. Not just on a technical level – they use a similar architecture and proof-of-stake consensus to achieve scalability – but because Vitalik Buterin and Dr. Gavin Wood also have a shared history in Ethereum.

Polkadot and Ethereum enter the final stretch of the runway for Chain Supremacy

The coming year will be a big year for both networks. Ethereum has rolled out a series of improvements ahead of the “merger” that will take place when the current Ethereum main chain joins the proof-of-stake Beacon chain. At this point, Ethereum will finally leave its proof-of-work consensus and switch completely to proof-of-stake. More upgrades are expected to follow as the network implements additional chains, or shards, connected to the Beacon chain, which aim to improve scalability.

While the timelines are somewhat fuzzy, it seems likely that Polkadot will reach its own next big milestone before the Ethereum merger takes place. ‘Parachain auctions’ are the process of awarding the first shard slots on Polkadot, a step that Kusama, Polkadot’s experimental ‘canary network’, has recently achieved.

Assuming it’s only a matter of months before Polkadot follows suit, we can expect the network to be fully operational before the end of this year, supporting a range of use cases.

A potted history

For their part, the two founders have always tried their best to point out that they are not competing with each other. But there is a lot of water under the bridge between Buterin and Wood. The pair are both core members of the team that co-founded Ethereum, with Dr. Gavin Wood invented the programming language Solidity and founded Parity Technologies, which has always been a major technology engine for Ethereum. Wood also founded the Web3 Foundation, which supports the development of Polkadot.

He left his position as Chief Technology Officer of Ethereum in 2015, after already proposing a new kind of infrastructure that would upgrade the newly launched smart contract platform into a more robust and scalable platform. Tellingly, Wood didn’t mention Buterin in his latest Ethereum blog post, despite checking several others.

While Wood and Buterin have kept quiet about the competition between the two projects, others have been more willing to speak out. Peter Mauric, Head of Public Affairs at Parity Technologies, recently addressed the comparison, commenting on Ethereum’s shortcomings and referring to the smart contract platform as a “proof of concept” that provided the training needed to build Polkadot.

Clash of Titans

After more than three years in development, Polkadot launched on mainnet last year. Although it will run without applications until the parachains are operational, the project has attracted a lot of interest, and not just because of its founder’s history. Polkadot offers the promise of true interoperability between applications running on different chains. Ethereum ETH is well known in the market.

While Polkadot has been in development, the Ethereum team has been working on a solution for Ethereum 2.0. There is no denying that the two platforms share many technological similarities. Both run on a variant of proof-of-stake. In the case of Ethereum, it is an open validator network where anyone can join with the required minimum 32 ETH wager. In Polkadot’s Nominated Proof-of-Stake, DOT holders can use DOT to nominate a validator.

There’s also the fact that both platforms use sharding to enable scalability, connecting sharded chains to a central chain responsible for network security. Ethereum 2.0 is also doing away with Solidity and the Ethereum Virtual Machine in favor of a web assembly language called eWASM. Despite Solidity being the brainchild of Gavin Wood, Polkadot is also built for standard web assembly languages. The critical benefit is that this opens up smart contract development to a much larger global pool of developers familiar with more common languages such as Go, Rust, and C/C++.

All of these similarities could, of course, be purely coincidental. For Gavin Wood, however, the fact that Ethereum 2.0 is very similar to his own creation should feel like some kind of justification.

On-chain versus off-chain governance

There may be a crucial difference between the two platforms. Although consensus us on-chain, governance has always been an off-chain affair for Ethereum. Seemingly in light of Ethereum’s experience with controversial hard forks, Polkadot has eschewed this model in favor of a forkless model of on-chain governance.

It is important to note that both on-chain and off-chain governance have their own pros and cons, so it will be interesting to see how these different approaches stack up against each other. Polkadot DOT is the new coin.

So two visionary founders, two ambitious roadmaps, two comparable platforms. However, there is one crucial difference. Polkadot has been developing from the ground up for five years, with the ability to meticulously build and test everything twice – once on the testnet and again in a live, experimental environment on Kusama. When Polkadot goes live with his parachains, it will be a clean start from the get-go.

While this is no mean feat, the Ethereum team arguably has a more difficult task ahead of them. To come up with an analogy, they have to turn the engine into a moving vehicle. It is this simple fact that explains why it can take seven years or more between the first Ethereum genesis and the final transition to proof-of-stake. It will take even longer for the network to reach a level of scalability that its supporters have been waiting so patiently for.

Who knows how much adoption on other networks will have accelerated by then?

In the end, no one can say what is going on in Vitalik Buterin’s head. But to use the vehicle analogy again, the idea of hopping into a box-fresh sports car should be more appealing than trying to pimp up an old jalopy while driving at full speed down the highway. And looking at Polkadot’s development, it would be hard to imagine Vitalik Buterin disagreeing.