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Vitalik Buterin Disagrees With Bitcoin’s S2F Scarcity Model

Vitalik Buterin disagrees with the popular Bitcoin S2F scarcity model that assumes the price will rise every halving. Ethereum’s co-founder Vitalik Buterin said that he disagrees with this theory because it is set up in a way where it is impossible to disprove, as we are reading further in the Ethereum latest news. The Bitcoin […]

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Vitalik Buterin disagrees with the popular Bitcoin S2F scarcity model that assumes the price will rise every halving. Ethereum’s co-founder Vitalik Buterin said that he disagrees with this theory because it is set up in a way where it is impossible to disprove, as we are reading further in the Ethereum latest news.

The Bitcoin stock-to-flow model predicts the prices through scarcity, calling the $288,000 BTC by 2024. Vitalik Buterin disagrees with this theory. First popularized by the anonymous crypto analyst PlanB, the Bitcoin stock-to-flow model predicts Bitcoin prices through scarcity. Usually applied to commodities such as silver and gold, whose diminishing supply determines the price, this bitcoin model can be applied to an asset with a limited supply such as Bitcoin.

The model takes into consideration the block halving rewards and predicts that the price could reach as high as $288,000 in 2024 while Bitcoin maximalists celebrate this model, Buterin is not convinced. The ETH co-founder called the model “unfalsifiable” claiming that the very way it was set up made it quite impossible to disprove. If the BTC price peaks before the halving, the model proves to be correct as it suggests that the price increased in anticipation of the halving. However, this theory is applied to another point in Bitcoin’s timeline when the price increased.

Some of the Twitter users noted that the stock-to-flow model itself doesn’t imply that the peak is a quite direct consequence of the block reward halving but that every period between two halving sees different orders of magnitude because of the changes in supply. If a period between the two halvings turns out to get away from this pattern, it would make the theory falsifiable.

Vitalik Buterin
Vitalik Buterin

A software developer, Ricardo Lopes, replied that if the price between the halving decreased, then that would disprove the model. PlanB, the analyst that popularized the model also commented saying that halving is not the element that makes bitcoin scarcer and that the model wasn’t much about the peaks but rather the average price levels that the coin sees between the halving events.

A paper published recently by the co-founder of Ethereum in the ETH news, Vitalik Buterin, along with the Harvard faculty professor Thibault Schrepel argues that blockchain is now positioned to help antitrust laws in areas where the regulations are difficult to apply and enforce.

Source: https://www.dcforecasts.com/ethereum-news/vitalik-buterin-disagrees-with-bitcoins-s2f-scarcity-model/

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World’s first tradable carbon token launched by Universal Protocol alliance

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The Universal Protocol Alliance [UPA] which included prominent blockchain companies like Bittrex Global, Ledger, CertiK, InfiniGold, and Uphold launched the Universal Carbon [UPCO2] on a public blockchain. It can be bought and held as an investment, or burnt to offset an individual’s carbon footprint.

According to the press release shared with AMBCrypto:

“… the UPCO2 Token is set to democratize an important new asset class, which could lead to the establishment of a global clearing price for carbon (as today exists for such commodities as oil and gold) and more resources going directly into environmental projects.”

One UPCO2 token represented a verified project in the rainforest reducing its carbon dioxide emissions by one metric ton annually. The alliance provided a digital certificate issued by Verra, an international standards agency, which allows certified projects to turn their greenhouse gas (GHG) reductions into tradable carbon credits.

The Chairman of the UP Alliance, Matthew Le Merle noted:

“The projects we support through carbon credit purchases prevent deforestation in the Amazon, Congo Basin and Indonesia as well as other threatened rainforests. For a new generation of investors looking for more than mere financial return, UPCO2 offers attractive social, economic and environmental benefits. At a key moment for climate change, UPCO2 allows people worldwide to do good for the planet and potentially do well for themselves.”

The voluntary carbon credits backing these carbon tokens should eventually fetch the same price anywhere, as per the Chairman. The logic behind this was that they represent, a metric ton of carbon per year, which is measured the same for any company seeking to offset its carbon footprint. The dollar-denominated, globally-recognized, fungible, and perennial assets should maintain their option value until consumption.

The chairman further concluded:

“Combine a digital asset with a rainforest carbon offset and give everyone in the world access. How could that not be a great idea?”

Source: https://eng.ambcrypto.com/worlds-first-tradable-carbon-token-launched-by-universal-protocol-alliance

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E-Crypto News Talks to Clem Chambers on Bitcoin’s Price Surge

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Bitcoin’s price surge has caught no one by surprise. So much so that my within the crypto space think that this is the “it” moment when mass adoption will take place.

E-Crypto News reached out to Clem Chambers, the CEO of global stocks, shares, and crypto website ADVFN (and author of Trading Cryptocurrencies: A Beginner’s Guide – Bitcoin, Ethereum, Litecoin) on the possibilities of Bitcoin prices reaching $20,000. Here is what he had to say. 


Clem Chambers, the CEO of global stocks, shares, and crypto website ADVFN (and author of Trading Cryptocurrencies: A Beginner’s Guide – Bitcoin, Ethereum, Litecoin)

 E-Crypto News:

  1. Now that Bitcoin has risen, what are your projections for now and next year?

It’s impossible to say but I will sweat when BTC hits $35000, and I think that will happen before 2021 is over. 

 E-Crypto News:

2. Why do you think the Altcoins haven’t followed Bitcoin this time?

You need a use case and a brand. Ethereum and Bitcoin dominate use cases because they have the brand. Altcoins therefore straggle. However, they will rise if BTC continues its vertical.

 E-Crypto News:

3. Do you think institutions are the new whales in the cryptospace? Please tell us the reasons for your answer.

Crypto-whales are a red herring.

 E-Crypto News:

4. Do you think we will have a massive reversal of prices the same way it occurred in 2017? Please tell us the reasons for your answer.

Highly probably, but so is $250,000 BTC; the route there will be wildly volatile. 

 E-Crypto News:

5. What are your thoughts on decentralized finance (DeFi)?

Revolutionary, world-changing, and absolutely the next big thing. Colossally impactful. 

 E-Crypto News:

6. What are your thoughts on Central Bank Digital Currencies (CBDCs)?

All currencies are digital currencies; 90% of all money is digital already. The Fed doesn’t send paper to banks anymore.

Misnomers are dangerous things. Central bank crypto? Why not? Crypto is about political structure and that can be whatever is coded and as good as the code and its structure. Would central bank crypto be any good? Probably not at first.

 E-Crypto News:

7. Do you think that there is an Altcoin that could replace Bitcoin in the future? Please tell us the reasons for your answer.

No. Bitcoin has an unassailable first-mover advantage.

 E-Crypto News:

8. What do you think are the factors causing the current Bitcoin price surge?

The Halvening

Trouble in China and Hong Kong

Inflation worries

Continued growth of adoption

DeFi wrapping BTC

PayPal sucking up a lot of new issuance

Corporate treasury hedging

 E-Crypto News:

9. What is your timeline and prediction for the next Bitcoin All-time-high?

Before Christmas but it’s foolish to try and call; technically, market timing is impossible

 E-Crypto News:

10. How do you think the security vs. commodity dilemma that Bitcoin and many of the cryptocurrencies face can be solved? 

Politics is never solved… resolved perhaps. Yes, it will be resolved at some point because it will become yesterday’s news and the gatekeepers will re-engineer their rentier position and grab their slice of the pie. 

 

Source: https://e-cryptonews.com/e-crypto-news-talks-to-clem-chambers-on-bitcoins-price-surge/

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Gold Begins Breakdown Against Bitcoin, Triggering 90% Decline On Per Oz Basis

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Bitcoin price just set a new all-time high against the US dollar and other top global fiat currencies. But what might be even more significant, is the fact that the gold standard itself is breaking down against BTC after this latest rally.

The gold versus Bitcoin price chart shows that in the past, each time support broke down, the precious metal dropped 90% in value against BTC on a per ounce basis. Here’s a look at each 90% drop historically, and some insight as to why this is such a big deal for the emerging financial technology.

Bitcoin: The Dawn Of Digital Gold And A New Monetary Standard In The Making

2020 could go on to be remembered as the year Bitcoin finally matured and became the respected financial asset cypherpunks, millennials, and other early adopters realized years ago. The leading cryptocurrency by market cap has long been positioned as digital gold, designed to be such, and sharing so many of the key attributes that give the asset safe haven like properties.

The precious metal once underpinned the entire monetary system, until the gold standard was disbanded in the early 1970s. At that time, gold traded at $30 an ounce.

Today, it trades at around $1,800 an ounce, showing what an incredible investment the scarce asset made over the last 50 years. It took well-known boomers like Paul Tudor Jones to begin comparing Bitcoin to gold in the 1970s and highlighting its rarity, that goldbugs began considering the cryptocurrency alternative.

RELATED READING | GOLD CHART SHOWS WHY BITCOIN IS THE FASTEST HORSE IN RACE AGAINST INFLATION

Gold is archaic and in the post-pandemic, all-digital, and preferably decentralized world, Bitcoin is showing it is more valuable. A recent example where tonnes of gold was moved from a central bank in the Netherlands, requiring extensive planning, an armed guard transport, and costing millions. A BTC transaction could be done in a couple of clicks, and move that value without the cost, time, or effort associated with it.

The BTC supply is more finite than gold also, and cannot be counterfeited. But these are just a few of many reasons the cryptocurrency makes for an even better version of gold than the precious metal itself.

bitcoin digital gold xaubtc btc xau

Gold is breaking down against BTC, leading to a potential 90% decline | Source: XAUBTC on TradingView.com

institutions and hedge funds who make up much of the $10 trillion gold market cap are starting to wake up to this fact, and are reallocating money into Bitcoin. The trend is clear on the XAUBTC price chart, where gold is now breaking down against Bitcoin from support set back at the previous peak.

RELATED READING | FUTURES AND FUND FLOWS SHOW BITCOIN IS REPLACING GOLD

There was once a time an ounce of gold cost hundreds of BTC. At the peak in 2013, Bitcoin reached price parity with an ounce of gold. Today, a gold bar is worth just 0.1 Bitcoin, and after each breakdown of support, the cryptocurrency gains another 90% against the hard money standard.

After another 90% decline, and the price per one-ounce gold bar reaching one-tenth the price of a Bitcoin, the world might need a new standard.

Featured image from Deposit Photos, Charts from TradingView.com

Source: https://bitcoinist.com/gold-begins-breakdown-against-bitcoin-triggering-90-decline-on-per-oz-basis/?utm_source=rss&utm_medium=rss&utm_campaign=gold-begins-breakdown-against-bitcoin-triggering-90-decline-on-per-oz-basis

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