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Brace Up for a possible Post-Halving Price of $55,000 per Bitcoin – CNBC’s Joe Kernen



Why Bitcoin Is Still The Leading Cryptocurrency When It Comes To Cryptocurrency Trading

Joe Kernen, popular co-host of CNBC’ Squawk Box, has recently suggested on the show that the king coin could reach $55,000 by next year’s halving. This is one of a few bullish comments Kernen has expressed in recent times.

What Could Push Bitcoin that High?

On Monday the 29th of July, while talking to the episode’s guest – Fairlead Strategies founder and Managing Partner, Katie Stockton – Kernen asked her whether or not she believed that Bitcoin could surge more than 470% and hit $55,000 by next year. One of the reasons Kernen believes this could happen is Bitcoin’s upcoming halving.

Expected to happen by May 2020, the halving will see a reduction in the number of Bitcoins being mined, by exactly half. Miners currently receive 12.5 BTC per block and this number is expected to drop to 6.25 BTC. This was done from Bitcoin’s inception as a way to control inflation for the coin and to also make sure that only 21 million coins will ever be produced. Bitcoin’s halving takes place after every 210,000 blocks which roughly takes four years.

The traditional laws of supply and demand dictate that prices will increase if supply is reduced and demand is still growing. Also, there is usually a recorded increase in Bitcoin’s value after every halving since its inception more than a decade ago. Some analysts already posit that Bitcoin could hit $20,000 before the end of the year and if that happens, then it’s possible that it could be higher than that figure, post-halving.

The Stock to Flow Model

Kernen also mentions the Stock-to-Flow ratio as a possible explanation for a Bitcoin surge. This model tries to make a connection between the number of assets already produced and possible inflation. It posits that Bitcoin has a stock-to-flow ratio of 25, derived from the calculation that at current speed and with halvings, the current amount of produced Bitcoins, about 17.5 million, can only be re-produced after another 25 years.

This ratio, according to the model, is tied to Bitcoin’s value and will rise after the next halving. If this happens as expected, the model proposes that Bitcoin’s market capitalization could hit $1 trillion from the $170 billion where it is. A market cap this high supports a value of $55,000 per Bitcoin.


Cardano’s Charles Hoskinson wants to work with Elon Musk to develop a decentralized social media platform



Cardano's Charles Hoskinson wants to work with Elon Musk to develop a Decentralized social media platform

The Founder of Cardano (ADA) has invited Tesla owner and billionaire, Elon Musk, to work with him in developing the first decentralized social media platform. Charles Hoskinson, who also doubles up as the CEO of Input-Output Global is offering to help Elon Musk achieve his goal of free speech on social media.

The news follows Elon Musk’s acquisition of a stake in Twitter last week. The Billionaire bought 9.2% of Twitter, estimated at $2.89 Billion, and was even offered a seat on the micro-blogging site’s board. However, after deliberations, Elon passed on the offer since it would bar him from owning beyond a certain threshold of Twitter’s shares.

Free speech advocate

Elon Musk is on record for being a passionate supporter of free speech and open internet policies. He has in the past openly accused Twitter of muzzling free speech and open internet use. He recently held a poll that indicated that most users would prefer an edit button on Twitter and said that if he is not allowed to acquire the platform, he would have to reconsider his position as a major shareholder of Twitter.

To actualize this cause, he has offered to acquire the platform for a reported fee of $43 Billion in cash. This intended acquisition has left his critics and supporters talking and would go a long way in helping him bring much-needed changes to Twitter. His intention has however come under fire with his critics, including Dogecoin co-founder, Jackson Palmer saying that Elon Musk is planning a hostile takeover of Twitter. 

Hoskinson’s offer to Elon Musk

Upon seeing the opposition against Elon Musk’s plan, Hoskinson wooed Elon to join him in creating a decentralized social media platform. He tweeted:

“@Elon if Twitter rejects your offer, then hit me up. Happy to build a decentralized one.”

This offer follows Elon Musk’s Twitter poll where he sought the opinion of his 80 million followers about a decentralized social media platform. He posited that were he to be barred from acquiring Twitter, he would establish his decentralized platform that would be founded on free speech and open internet.

Elon Musk’s campaign for free speech and open internet has not been welcomed by all. Some of his critics have argued that coating his move with good intentions, his true intention is to get revenge against the SEC for muzzling his Twitter activities.

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Thailand Outlaws The Use Of Crypto For Payments



Thailand Outlaws The Use Of Crypto For Payments
  • The SEC in Thailand has banned crypto payments in the country.
  • Its new decision is expected to become enforceable in April.
  • The SEC reiterated that the government still maintained support for the blockchain industry, clarifying that the decision does not affect crypto investments.

The Securities Exchange Commission today has placed restrictions on crypto as a means of payment. They believe that it poses risks to the nation’s financial stability.

Crypto Payments Outlawed

Thailand’s SEC today has outlawed the use of crypto as a medium of exchange in the country. The regulators came up with this decision after discussing the benefits and inherent risks from crypto and blockchain technology with the country’s central bank, the Bank of Thailand (BOT).

They concluded that the use of cryptocurrencies for payment was potentially harmful to the country’s financial stability and economy. Price volatility, risks of theft, and potential use cases in money laundering were amongst the reasons cited by the SEC that led them to this decision.

The SEC report read, “the use of digital assets as a medium for payment of goods and services Because it may affect the stability of the financial system and the overall economy. including risks to people and businesses such as the risk of loss of value caused by price volatility Risk of Cyber ​​Theft Risk of personal data leakage or being used as a tool of money laundering.”

As per the SEC’s new decision, crypto service providers and vendors or merchants in the country are encouraged to stop providing or facilitating such services. Suppose a crypto service provider discovers that a customer has used its services to make payments. In that case, the service providers are to inform the SEC and restrict activities on the said account.

The SEC’s new ruling is to take effect from the 1st of April. However, businesses that already offer such services would be given till the end of April to cease such operations. The crypto market in Thailand has grown massively over the last couple of years. As per a Bloomberg report, government data estimates that Thai citizens hold about $3.4 billion in crypto assets.

Crypto Investments Not Affected As The Thai Government Still Supports Blockchain Technology Innovation

The SEC in their release, clarified that the restriction was only on using cryptocurrency as a means of payment and in no way affected citizens investing in crypto. It was stated that “digital asset traders/investors can carry out normal investment/trading related transactions.”

The SEC also maintained that the government still supported blockchain technology and was working to provide a regulatory environment where innovation can be encouraged in the industry. Recall that earlier this month, the country had offered tax incentives to investors and businesses in the crypto industry.

“… the BOT and the SEC, as well as other government agencies, see the benefits of various technologies behind digital assets such as  blockchain and emphasize and support the use of technology to further innovation.”

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