Market

Focus on Value, Not Speculation

Published

3 months ago

August 7, 2024

Coin2049 Newsletter

Ethereum (ETH) core developer Peter Szilagyi is disappointed with the crypto industry, advocating for actual value in a sector that can be so much more.

The crypto industry has come a long way since its inception, from the creation of Bitcoin to the development of various blockchain projects and applications. There are still challenges, but the industry keeps growing and changing, guided by goals of decentralization, transparency, and financial empowerment.

How Crypto Started and How It’s Going

The ethos behind crypto was to provide a decentralized and secure alternative to traditional currency and financial systems. The potential for blockchain technology to disrupt various industries and empower individuals with financial sovereignty was the main goal.

In the early years, the focus was on building the infrastructure for cryptocurrencies and exploring their potential use cases. Bitcoin gained popularity as a digital currency and store of value, while Ethereum introduced smart contracts, enabling developers to build decentralized applications (dApps) on its blockchain.

The industry has seen quick growth, with new projects and tokens entering the market, fueled by the initial coin offering (ICO) boom of 2017. However, the ICO craze also brought about challenges, as many projects turned out to be scams or failed to deliver on their promises.

This led to concerns about investor protection and regulatory oversight. The industry now faces scrutiny from governments and financial regulators worldwide. As the industry evolved, the focus shifted towards addressing scalability issues, improving security, and user experience.

Projects like decentralized finance (DeFi) emerged, offering a wide range of financial services without the need for traditional intermediaries. Stablecoins provided a stable means of value transfer within the volatile crypto market, while privacy coins enhanced transaction anonymity.

Despite these advancements, Peter Szilagyi is disappointed that the speculative aspects of crypto take precedence over what could be its true value.

“Yes, it takes time to ‘build a new monetary system’. For sure… but how about we make a few useful things along the way? Everyone is so focused on becoming the next V that nobody wants to build useful stuff, everyone’s in it for value extraction,” Szilagyi lamented.

Ethereum’s Peter Szilagyi on Crypto: “A Damn Casino”

“Crypto is a damn casino,” he says, referring to how traders cheer when the price soars and lives wrecked when prices crash. In his opinion, the industry is about so much more. This criticism concerns the speculative nature of the market, characterized by extreme price volatility and a focus on short-term gains.

“Bitcoin at least tries (and fails) to be a safe haven asset, the rest are all selling shovels with no gold rush in sight… My feeling is that the speculative aspects outrank the true values way too heavily and we seem to like it because it makes money. I fail to see any value creation thus far… Mind you, making it big by luck and moving your funds into some non-crypto venture is not a success story for crypto. It at best is a success story for a philanthropic lucky person, but more likely a simple diversification of said person,” Szilagyi added.

With this, he observes that digital assets as a system could collapse if everyone’s focus is on “value extraction” instead of building useful stuff. The Ethereum executive calls for the industry to create something genuinely useful that people want to use.

Nevertheless, Erik Voorhees challenges Szilagyi’s casino outlook, highlighting some of the valuable projects in the industry with actual use cases. Among them are stablecoins, DeFi lending, DEXs, privacy coins, wallet apps, financial intelligence systems like Dune or Messari, and high-throughput blockchains. Voorhees is the founder of Swiss digital asset trading company ShapeShift and Venice, a permissionless alternative to popular AI apps.

But Szilagyi writes off DEXs, privacy coins, and wallets. DeFi data developer Geninsus.sol on X agrees.

“When I talk about crypto to non-crypto people, I always say we have 99% of useless things and 1% of potentially useful things. The most bullish use case for me is the possibility to lend/exchange money from peer-to-peer without any central organization taking a split and all automated,” the developer said.

Szilagyi’s critique of the industry reflects concerns about the prevalence of trading and speculation over genuine value creation. This debate mirrors the ongoing tension between speculation and utility within the crypto space and raises good rhetoric:

“How does the crypto industry impact 99.999% of the world population who doesn’t have money to gamble?”

The future of the crypto industry will likely be shaped by efforts to balance innovation, regulation, and user adoption. Building sustainable projects with tangible benefits for users will be crucial for long-term success.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

BNB Price Set to Surge: Could It Be the Next Big Mover?

Published

38 mins ago

November 8, 2024

Coin2049 Newsletter

BNB price struggled to stay above the $600 zone. The price is consolidating gains and might aim for a fresh increase above the $605 level.

BNB price started a downside correction from the $612 resistance zone.
The price is now trading above $590 and the 100-hourly simple moving average.
There is a connecting bullish trend line forming with support at $595 on the hourly chart of the BNB/USD pair (data source from Binance).
The pair must stay above the $588 level to start another increase in the near term.

BNB Price Holds Support

After a close above the $585 level, BNB price extended its increase. However, upsides were limited above $610 and the price remained capped unlike Ethereum and Bitcoin.

There was a move below the $605 and $600 levels. The price even dipped below the 23.6% Fib retracement level of the upward move from the $543 swing low to the $611 high. However, the price is now holding gains above the $580 level.

The price is now trading above $595 and the 100-hourly simple moving average. There is also a connecting bullish trend line forming with support at $595 on the hourly chart of the BNB/USD pair.

If there is a fresh increase, the price could face resistance near the $605 level. The next resistance sits near the $612 level. A clear move above the $612 zone could send the price higher. In the stated case, BNB price could test $620. A close above the $620 resistance might set the pace for a larger move toward the $632 resistance. Any more gains might call for a test of the $650 level in the near term.

More Losses?

If BNB fails to clear the $605 resistance, it could start another decline. Initial support on the downside is near the $595 level and the trend line. The next major support is near the $578 level or the 50% Fib retracement level of the upward move from the $543 swing low to the $611 high.

The main support sits at $570. If there is a downside break below the $570 support, the price could drop toward the $560 support. Any more losses could initiate a larger decline toward the $550 level.

Technical Indicators

Hourly MACD – The MACD for BNB/USD is losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BNB/USD is currently below the 50 level.

Major Support Levels – $595 and $578.

Major Resistance Levels – $605 and $612.

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Market

Bitcoin Price Advances Again: Can Bulls Push It Even Higher?

Published

2 hours ago

November 8, 2024

Coin2049 Newsletter

Bitcoin price is gaining pace above $75,000. BTC is rising and might aim for a move above the $77,000 resistance zone in the near term.

Bitcoin started a fresh surge above the $74,500 zone.
The price is trading above $74,000 and the 100 hourly Simple moving average.
There is a connecting bullish trend line forming with support at $75,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to rise above the $76,200 resistance zone.

Bitcoin Price Sets Another ATH

Bitcoin price started a fresh increase above the $74,500 level. BTC cleared the $75,000 resistance and traded to a new all-time high. It posted a high at $76,937 and is currently consolidating gains.

There was a minor decline below the $76,200 level. The price dipped below the 23.6% Fib retracement level of the upward move from the $72,745 swing low to the $76,937 high. However, the price is still in a positive zone above the $75,000 level.

Bitcoin price is now trading above $75,200 and the 100 hourly Simple moving average. There is also a connecting bullish trend line forming with support at $75,450 on the hourly chart of the BTC/USD pair.

On the upside, the price could face resistance near the $76,000 level. The first key resistance is near the $76,200 level. A clear move above the $76,200 resistance might send the price higher. The next key resistance could be $78,000.

A close above the $78,000 resistance might initiate more gains. In the stated case, the price could rise and test the $78,800 resistance level. Any more gains might send the price toward the $79,450 resistance level.

Are Dips Limited In BTC?

If Bitcoin fails to rise above the $76,200 resistance zone, it could continue to move down. Immediate support on the downside is near the $75,450 level and the trend line.

The first major support is near the $74,350 level or the 61.8% Fib retracement level of the upward move from the $72,745 swing low to the $76,937 high. The next support is now near the $73,750 zone. Any more losses might send the price toward the $72,200 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $75,450, followed by $74,350.

Major Resistance Levels – $76,000, and $76,200.

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Market

Polymarket Faces Ban in France as US Election Betting Ends

Published

18 hours ago

November 7, 2024

Coin2049 Newsletter

According to a report from The Big Whale, the National Gaming Authority (ANJ), France’s gambling regulator, is preparing to block the prediction markets platform Polymarket.

Polymarket, the decentralized platform that allows users to bet on the outcome of political events, sports, and other occurrences using cryptocurrency, has gained popularity in recent months, especially with bets surrounding the US presidential election. More than $3.2 billion was reportedly wagered on the platform during this high-stakes period, with a record-breaking $294 million in volume on November 5 alone.

France Users May No Longer Access Polymarket

According to The Big Whale, a French website that covers the crypto industry, the ANJ’s impending ban comes after a French trader placed a $30 million bet on a Trump victory, reportedly attracting the regulator’s scrutiny.

The trader’s wager positioned him to make approximately $19 million in profits, a sum that has intensified concerns over Polymarket’s compliance with French gambling laws. A source close to the ANJ stated that despite Polymarket’s use of blockchain and cryptocurrency, its activities are akin to gambling, making it subject to restrictions under French law.

“We are aware of this site and we are currently examining its operation as well as its compliance with French gambling legislation,” The Big Whale reported, citing an ANJ spokesperson.

Legal expert William O’Rorke from ORWL Avocats explained that although Polymarket does not specifically target French users, its activities fall squarely under gambling regulations.

“Polymarket involves betting money on uncertain outcomes, which aligns with the legal definition of gambling,” O’Rorke noted.

Against this backdrop, the ANJ is well within its mandate to block the platform’s access in France. Accordingly, the French regulator may enforce the ban by blocking Polymarket’s domain name in France. It amy also pressure third-party players, like media outlets and online directories, to limit access to Polymarket links.

However, French users may still circumvent this by using virtual private networks (VPNs). This is because Polymarket’s crypto-based infrastructure allows for relatively anonymous participation.

France’s looming ban is not the first regulatory roadblock Polymarket has encountered. In 2022, the US Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million for failing to register as a designated contract market. The CFTC also challenged Kalshi’s operations due to questions about betting on political events.

Polymarket’s Fate After US Elections

Meanwhile, the US election was a significant catalyst for Polymarket. It drove the platform to new heights in user engagement and bet volume. Polymarket’s election-related markets have been featured on major financial platforms, including Bloomberg, highlighting the platform’s appeal to mainstream finance.

As BeInCrypto reported, Polymarket’s election betting topped $3 billion, reflecting unprecedented participation. The platform, however, faces a crossroads in its path forward. Following the climax of the US election on Wednesday, data from Dune Analytics shows a steep decline in Polymarket’s activity.

Daily active addresses and transaction volumes, which soared in the election lead-up, have notably dwindled as election-related betting winds down. For instance, Polymarket’s open interest, a key indicator of active betting engagement, dropped from $350 million to $268 million after the polls closed. Similarly, monthly new accounts have also dropped by over 41% between October and November.

Polymarket Monthly New Accounts. Source: Dune

Against this backdrop, Polymarket may need to diversify its market offerings or potentially embrace a new model to maintain user interest. This is considering election-related activity comprised the majority of the prediction market’s volume.

Rumors are circulating about a potential move toward a decentralized governance token, which could distribute control over Polymarket’s operations to its community. This shift would reduce the liability of the central authority by decentralizing decision-making, though it remains theoretical, with no clear timeline.

Polymarket’s fast ascent and regulatory challenges highlight broader industry tensions between innovation and compliance. With election predictions no longer a draw and an impending ban in France, Polymarket’s future remains uncertain.

Its long-term viability may depend on how well it adapts to evolving regulatory landscapes and whether it can maintain popularity beyond election season peaks.

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