Tag: cryptocurrency

Nigeria – Why Crypto Is a Better Reserve Currency

Nigeria - Why Crypto Is a Better Reserve Currency

In early April 2021, the Central Bank of Nigeria (CBN) issued a circular warning Nigerian institutions to stop the practice of rejecting old or lower denomination USD notes. The CBN issued the warning after it became “inundated with complaints from members of the public on the rejection of such notes by banks and other authorized forex dealers.”

Rejection of Defaced or Stamped USD Notes
In the circular issued by Ahmed Umar, a director in the CBN’s Currency Operations Department, the central bank says it will sanction institutions that “refuse to accept old series/lower denominations U.S. dollar bills from their customers.”

Furthermore, the CBN warned against the same institutions to cease the practice of defacing/stamping USD notes as these “always fail authentication tests during processing or sorting.”

In the meantime, Nigeria is not the only inflation hit African country to face this predicament. In Zimbabwe, which has similarly seen the value of its currency plunge in the past few years, rejection of old or torn U.S. dollars continues to be a problem. At one point, the U.S. Embassy in Harare was forced to issue a statement reassuring Zimbabweans that all U.S. notes remain legal tender regardless of when they were issued.

US Embassy Reassurances
In its September 2020 statement, the U.S. Embassy said:

Any badly soiled, dirty, defaced, disintegrated, limp, torn, or worn-out currency note that is clearly more than one-half of the original note, and does not require special examination to determine its value, is not considered mutilated.

This message was later reaffirmed by the Reserve of Bank of Zimbabwe (RBZ) in December 2020 as it attempted to end the practice

Yet despite these assurances, torn or worn out USD notes continue to be rejected by businesses and the general public. In addition, this continuing rejection of old or worn-out USD banknotes has created a new black market for such currencies. As noted by one report, some Zimbabwean currency dealers are demanding a premium of up to 50% on some torn or old USD banknote.

While the U.S. dollar is a widely accepted alternative to the local fiat currencies, it is such shortcomings that make cryptocurrencies an even better option. For instance, in addition to being immune to local inflation and depreciation, crypto assets like bitcoin (BTC) or bitcoin cash (BCH) enable users to pay for any amount without worrying about the lower denomination dollars or torn notes they might get as change.

In instances where one needs to make payments across borders, cryptocurrencies again prove to be a better option because the recipient will get paid the exact amount that is due to them. As central banks in Nigeria and Zimbabwe have learned, coercion will not force people to accept any currency, including the U.S. dollar.

Instead, it is innovative and secure money that has a better chance of overcoming this challenge.

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Bitcoin retreats from record high high of $61,674 amid report of Indian crypto ban

Bitcoin retreats from record high amid report of Indian crypto ban

Bitcoin (BTC-USD) was in retreat on Monday morning after hitting a new record high over the weekend.

It broke through $60,000 to reach a high of $61,674 on Saturday. The world’s biggest cryptocurrency was in retreat by the start of the week, down 4.4% to $57,847.84 at 9.15am in London.

The price decline came amid reports that India could ban cryptocurrencies altogether, potentially cutting off one of the biggest markets in the world.

Reuters reported on Sunday evening that senior government officials in India were working on a law banning cryptocurrencies. People could be penalised for mining or owning cryptocurrencies under the proposals, according to the report.

The broader cryptocurrency ecosystem was in decline on Monday morning. The crypto market was down 4.5% over 24 hours, according to CoinMarketCap.com. Ethereum (ETH-USD), the world’s second largest cryptocurrency, was trading 5.7% lower against the dollar to $1,785.49 on Monday.

Nigel Green, chief executive and founder of financial advisory group deVere, said regulation was likely to become an increasing concern for bitcoin and the wider cryptocurrency market.

Source – Yahoo News 

Bitcoin critic Peter Schiff son moved 100% of his portfolio into the cryptocurrency

Bitcoin critic Peter Schiff son moved 100% of his portfolio into the cryptocurrency

Spencer Schiff, the son of bitcoin detractor Peter Schiff, has decided to move 100% of his portfolio investments into the world’s most popular cryptocurrency.
“My son @SpencerKSchiff went all in on #Bitcoin on the last drop below $50k,” the outspoken CEO and president of Euro Pacific Capital said in a tweet Thursday. “100% of his portfolio is now in Bitcoin.”
Calling him “brainwashed,” Schiff said his son sold the last of his silver stocks to raise the cash for it. “He’s HODLing to infinity or bust,” he added, using the slang term in the crypto community for holding a cryptocurrency rather than selling it.
US entrepreneur Anthony Pompliano, host of the Pomp Podcast, said in response at least someone in Schiff’s family was growing their wealth this year. But Schiff hit back saying he needed to “disinherit” his son, otherwise his hard-earned wealth would be wasted on bitcoin.

Schiff is one of bitcoin’s best-known critics, saying that it will never function as money and a permanent move down to $0 is not “inevitable.” He has previously told FOX Business that anybody investing their money in bitcoin is a fool because they don’t realize that it’s all just a “scheme.” Schiff believes gold is far more reliable as a store of value than the digital asset.
“It doesn’t fit the very definition of money,” Schiff said on FOX’s “Making Money with Charles Payne.” “Money needs to be a commodity. It needs to have actual value unto itself, not just the uses and means of exchange.”
During bitcoin’s price crash in 2020, Schiff predicted it would plunge by more than $4,000. At the time, bitcoin was trading around $3,600. The price of bitcoin quadrupled in value through 2020, eventually hitting an all-time high of $58,000 in February 2021. It was last trading around $55,021 on Thursday.

Source – Businessinsider Markets

Dogecoin gains key endorsement promising to increase the network’s utility

Dogecoin gains key endorsement promising to increase the network’s utility

Mark Cuban Embraces Dogecoin
Dogecoin has been on a tear in the last 24 hours. The meme token saw its price surge by more than 17%, going from a low of $0.051 to hit a new monthly high of $0.060.

Market participants have rushed to exchanges to panic buy DOGE after billionaire Mark Cuban said that its market value could skyrocket by a whopping 1,700%.

According to the Shark Tank investor, the Dallas Mavericks has processed over 20,000 DOGE transactions since it started accepting it as payments for tickets and merchandise. Such success has made the professional basketball team the “largest Dogecoin merchant in the world.”

Cuban affirmed that if the Dallas Maverick can process another 6.60 billion Dogecoin worth of merchandise, DOGE will “definitely hit $1.”

Although Cuban’s remarks have generated FOMO among enthusiasts, it is worth noting that the NBA team will have to sell nearly $330 million worth of merchandise for DOGE to reach such a bullish target.

DOGE Primed to Breakout
While a $1 target is far-fetched, Dogecoin is primed to resume its uptrend as its network has drastically expanded over the past few weeks.

IntoTheBlock’s Daily Active Addresses model shows that the number of new addresses created on the Dogecoin blockchain bottomed-out on Feb. 28 at a low of 34,700 addresses per day. Since then, network growth has skyrocketed.

Nearly 60,000 new addresses are being created per day at press time, representing a 73% increase within the examined period.
The network’s expansion can be considered a very optimistic signal as it indicates a spike in user adoption over time. Since this on-chain metric is often regarded as one of the most accurate price predictions, it may forecast that DOGE’s price will follow suit.

Still, Dogecoin must close above the $0.058 resistance barrier to be able to advance higher. Moving past this crucial price hurdle could see the meme coin revisit Jan. 29’s high of $0.089.

Source – Crypto Briefing 

Top six ways to make money with cryptocurrency in the bitcoin revolution era

Top six ways to make money with cryptocurrency in the bitcoin revolution era

1. Buying and Hodling

The most popular way to make money in crypto

Buying and hodling cryptocurrencies is the most popular way to invest in cryptocurrencies. Many websites and online crypto brokers allow you to buy cryptocurrencies, which you can either leave on the site or transfer to your crypto wallet. Sites like Coinbase, eToro, and Kraken will enable you to purchase cryptocurrencies.
This method is associated with risk, and a little bit of background knowledge is required. You will need a little bit of luck and an investor’s mindset to succeed.
Cryptocurrencies are very volatile, and purchasing them is always risky. Therefore, dollar-cost averaging might be helpful if you are aiming to buy and hold cryptocurrencies.
Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases. The goal is to reduce the impact of volatility on the invested sum.
For example, I buy cryptocurrencies every month regardless of the market and its prices. I buy Bitcoins, Etherium, Ripples, and I’ve started to buy Litecoin as well.

2. Trading

Buy low/ Sell high

Trading cryptocurrencies is another way to make money from cryptos by buying and selling cryptos on a short term basis. The idea sounds simple, buy low, and sell high. However, this method can be difficult and risky if you are not well aware of the cryptocurrency market. Crypto is a very volatile market, and it can vary up to 50% depending on the day and the choices you make.
There is day trading, and there is also leverage trading, which involves borrowing funds and investing more than your actual capital. For example, a 3:1 leverage means you are placing a trade three times higher than your own capital. If the price of the crypto goes up, then you make 3X win. However, if the price drops, your loss is also multiplied by three.
Of course, you can short cryptocurrencies as well. Short selling an asset is an investment strategy to make money from an asset’s price drop.
Shorting works by allowing you to borrow an asset and sell it immediately at its current price. Later on, you purchase the same asset again to repay the person or exchange you borrowed them from. You make money if the price of the asset drops during this time.

3. Investing in ICO & STO

Significant long-term profits

Investing in crypto during the ICO and STO phase can bring significant long-term profits. Nevertheless, do not forget to be very careful and attentive when choosing the path. Many projects are over-hyped, and some ICOs are just a scam. Instead of speculating about the value development of an ICO, read the white papers and pay attention tot he roadmap.
Get advice and read evaluations from independent sources, such as ICO rating platforms and monitor the activities of the project and analyze all the information available carefully. Do not get dragged in by friends or by people you follow on social media and Youtube. Every investment decision needs to be carefully examined and analyzed.
The biggest scam in the crypto world was One Coin. The scam was worth $15 Billion. Read more about it in the following post by Shubh Patni:
Crypto Scam Worth $15 Billion, Shook the Whole Industry
How a Ph.D. fooled the entire world

4. Crypto lending

The power of DeFi

In short, crypto lending allows crypto holders to lend their assets to others and collect interest.
One of the most significant cryptocurrency’s promises is to take the tools provided by the financial institutions and make them available to everyone anywhere. The term of this movement or promise is DeFi, which stands for Decentralized Finance.
Similar to banks’ loans, any person can take a loan with cryptocurrency. Through Defi loans, however, the borrower does not have to disclose their identity to a third party or write checks to a traditional bank.
Nevertheless, the borrower has to put collateral in case of sudden price drops in the cryptocurrency value. This might be challenging due to the extreme volatility of the crypto world.
Many platforms and apps offer crypto lending options. My bank account with crypto options offers crypto lending as an investment.

5. Crypto mining

Solve equations and mathematical problems
Mining might sound strange at first, but the process is basically the verification and adding of crypto transactions to the blockchain. When you offer your computing power to the mining process, you are basically competing with others to solve complex mathematical equations.
Every time a crypto transaction is made, a miner is responsible for authenticating the trade and updating the blockchain. The first miner to crack the code is then able to authorize the transaction. As a reward for their effort, miners receive a small amount of the cryptocurrency.
Mining operations require computers with a specialized set of hardware to compete with others in mining and authorizing crypto transactions. Miners also need to consider the energy costs they require for the mining operation and compare the costs to the value of their crypto earnings.

6. Rewards programs
Crypto for simple tasks
Like cashback from credit card transactions, some crypto platforms offer crypto cashback while online shopping.
Cashback programs enable purchasers to receive a small amount of their money after each purchase. The most common cashback programs are credit card’s cashback programs. When making a transaction with a credit card, the credit card provider can pay back the purchaser a small amount of the transaction because the retailer pays the credit card issuer an interchange fee for the credit card payment.
Crypto cashback apps pay the purchaser a small cut of their earnings from the affiliate link. They receive payment for the referral, and they give a small amount of this payment back to the purchaser in the form of cryptocurrency.

Sources to read more:
1 – Bitcoin Opportunity – Make 100% yield in investment in 200 days


MoneyGram Slapped With Lawsuit Over Ripple, XRP Partnership

MoneyGram Slapped With Lawsuit Over Ripple, XRP Partnership

The money transfer firm MoneyGram is facing a class action lawsuit claiming that the company made false and/or misleading statements about its partnership with American blockchain company Ripple and the legal status of the XRP token.

Per a press release by Rosen Law Firm, the suit has already been filed, and on behalf of purchasers of the securities of MoneyGram between June 17, 2019 and February 22, 2021.

According to the lawsuit, in this period, defendants made false and/or misleading statements and/or failed to disclose that:

“XRP, the cryptocurrency that MoneyGram was utilizing as a part of its Ripple partnership, was viewed as an unregistered and therefore unlawful security by the US Securities and Exchange Commission (SEC);
in the event that the SEC decided to enforce the securities laws against Ripple, MoneyGram would be likely to lose the lucrative stream of market development fees that was critical to its financial results throughout the Class Period;
as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.”
The law firm claims that those who purchased “MoneyGram securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.”

A lead plaintiff is yet to be chosen.

MoneyGram and Ripple became partners, after the latter made a USD 30m initial investment in MoneyGram equity in June 2019. However, Ripple found itself in a long battle with the SEC over XRP, as the regulator claims that XRP is an unregistered security, which Ripple disputes.

MoneyGram recently claimed that its support for Ripple stayed in place, but still announced that it would suspend the receipt of “market development fees.” Alex Holmes, the MoneyGram CEO, said at the time that they are “definitely supportive of Ripple’s efforts, but at the same time, we have to do what is right for the organization.”

In 2020, MoneyGram received USD 38m in net market development fees from Ripple in 2020, representing about 15% of the company’s adjusted earnings before interest, taxes, depreciation, and amortization. The company said it also faced logistical challenges in using the platform, as well as legal and reputational risks, following the lawsuit against Ripple.

XRP is (at 14:01 UTC) trading at USD 0.44. It increased 2.7% in a day and decreased 5.8% in a week.

Source : CryptoNews.com

NY Attorney General threatens to shut down cryptocurrency

New York attorney general threatens to shut down cryptocurrency Industry

New York Attorney General Letitia James sent a blistering warning to investors and industry members about the dangers of cryptocurrencies on Monday.

“We’re sending a clear message to the entire industry that you either play by the rules or we will shut you down,” she said in a press release.

The warning from James, which addressed individual investors and crypto industry members, comes amid a major start to 2021 for digital assets such as bitcoin.

The cryptocurrency surged to a new all-time high above $58,000 earlier this month, after garnering attention from Wall Street banks, companies such as Tesla and even the U.S. government.

Bitcoin, which was created in 2009, has evolved from a protest against the banking system to something of a “digital gold” that is beginning to catch on with mainstream investors.

Investment banks such as JPMorgan and Goldman Sachs have shown interest in the asset class. Plus, companies such as Mastercard have made significant moves to support cryptocurrencies. Tesla invested $1.5 billion into bitcoin in February.

The price of bitcoin rose more than 10% over the last 24 hours to hit $48,528, as of approximately 1:51 p.m. ET, according to CoinDesk. Other popular digital currencies include ethereum and litecoin.

James told members of the crypto industry in New York they must be registered with the Office of the Attorney General’s Investor Protection Bureau.

Parties who are obligated to register but fail to do so are subject to civil and criminal enforcement, the office said in a statement.

Monday’s alert comes two weeks after the attorney general filed a lawsuit against Coinseed, a trading platform for digital currency.

James alleged that Coinseed was operating a virtual currency trading business in New York, functioning as an unregistered broker-dealer for more than three years while collecting over $1 million in investors’ assets.

Last week, the attorney general’s office reached a settlement with crypto firms Tether and Bitfinex over allegations that they covered up $850 million of losses. Both firms agreed to pay an $18.5 million penalty but denied any wrongdoing.

“We will not hesitate to take action against anyone who violates the law,” she said.

“Too often, greedy industry players take unnecessary risks with investors’ money, but, today, we’re leveling the playing field and issuing alerts to both investors and industry members across the nation,” James added.

She also told investors to be cautious about investing in cryptocurrencies.

Source – CNBC News