CategoryBitcoin

Hvordan Bitcoin vil bli et “rapportkort” på regjeringen

Bitcoin-prisen har trukket seg litt tilbake fra høydepunktene, men trenden har vært oppe i over et år nå, og vil trolig fortsette ettersom den gryende teknologien blir mye vedtatt av institusjoner og tradisjonelle markedsinvestorer.

I fremtiden vil kryptovalutaen, ifølge en toppindustri, bli et slags “rapportkort” som scorer regjeringen og dens styring av pengepolitikken. Her er hva det betyr for Bitcoin Billionaire og hvorfor eiendelen til slutt vil påta seg en slik rolle.

Bitcoin for å bli rapportkort på regjeringen

Fortellingene som driver Bitcoin i disse dager er nesten uendelige. Det er devaluering av edle metaller gjennom den digitale gullfortellingen; valutaen som fremtiden for sikkerhet; “Stimulanselivet”; og mye mer.

Den neste fortellingen og rollen som kryptovalutaen vil spille, ifølge Galaxy Digital-sjef Mike Novogratz, er “rapportkort for hvordan innbyggerne tror regjeringen gjør det med å administrere økonomien.”

Disse følelsene ekko Bitcoin-ekspert Preston Pysh, som nylig kalte kryptovalutaen en “manipulasjonsmåler.” Begge kommentarene refererer til at eiendelen vokser raskt som svar på pågående ekspansjon av pengemengden, drevet av statlige ledede stimuleringspakker.

USA har for eksempel nettopp godkjent og begynt å utstede stimulansjekker til skattebetalere for 1400 dollar stykket.

Kryptovaluta vil fullføre “Secular Shift” før du tar karakteren

Foreløpig trekker kryptovalutaen tilbake etter en avvisning fra nye høyder, men dette siste misbruket av skattebetalers penger og en billard på flere billioner dollar som landets borgere vil gå i årevis, sier at Bitcoin vil vokse betydelig hvis rapportkortteorien er sunn. .

Da stimulansinnsatsen først begynte å rulle ut i 2020, var Bitcoin-prisen fortsatt på vei fra Black Thursday-panikkutsalget da pandemien først rammet. De første stimulansjekkene som ble sendt ut til $ 1200 investert i BTC, ville nå være verdt over $ 11 000 i dag.

De som stemte mot regjeringen med sine dollar den dagen, har nå betydelig fortjeneste å vise for det. Jo mer regjeringen misforvalter pengepolitikken, jo større vil markedsverdi på kryptovaluta vokse, noe som muliggjør “rapportkorteffekten” som Novogratz snakker om.

Men før da sier han at Bitcoin fortsatt må fullføre det pågående “sekulære skiftet” der aktivaklassen har blitt validert i øynene til finans, og nå må hvert forsikringsfond, legat og mer begynne å legge det til sin portefølje, eller risikere å gå glipp av kapitalvekst i en forstyrrende sektor.

“Soon at 390,000” forecast chart suggests massive gains for Bitcoin

Bitcoin could climb 10-fold in the medium term if the past repeats itself.

A respected crypto expert is convinced that Bitcoin ( BTC ) can climb to as much as 400,000 US dollars in the current upward trend. This would not even require a special effort, just a repetition of previous developments.

Yassine Elmandjra, an analyst at the crypto asset management ARK, made the corresponding assessments on February 4th, pointing out that Bitcoin is only at the beginning of the current upward trend.

400,000 within reach?

Compared to 2013 and 2017, the cycle of 2020/21 is still in the starting blocks, which results in a maximum price target of up to 390,000 US dollars in the forecast diagram.

With reference to the diagram (see below) Elmandjra writes: “This is how the Bitcoin price would develop if the current record run can trump the record run of 2017 to the same extent as in 2017 compared to the record run of 2013.”

To this end, he adds:

“The maximum price would come out at $ 390,000. We are currently at the red point. ”

Since some other indicators are also suggesting that Bitcoin is still going up in this upward trend, Elmandjra is not alone in his optimism. However, the crypto analyst Tuur Demeester points out that the record run of 2013 showed stronger growth than the one in 2017.

The real “power” of the current uptrend depends on many different factors and is probably not that easy to deduce. Other comparative data suggest , in turn , that the current strength is between the two past record runs.

Elmandjra calculates that a market value of $ 390,000 would mean a market capitalization of $ 8 trillion. US dollar would mean, which would be just under 80% of the market capitalization of gold. As Cointelegraph reports , however, Bitcoin has so far only reached 2% of the market value of the precious metal.

Is it the perfect starting point for further gains?

Either way, the experts are still optimistic, at least as far as the share price development is concerned in the short term.

The combination of a weakened US dollar, increased interest from institutional investors and solid support at $ 30,000 could keep the market-leading cryptocurrency on the up.

In this context, crypto investor Dan Tapeiro points out that the convergence divergence of the moving average (MACD) is also turning positive.

“Wow! It looks as if the sideways movement of #Bitcoin will soon be over, ”he concludes . And further:

“The course now has strong support at 30,000. We are breaking through the top of the wedge formation right now. The oversold MACD sends its regards. ”

Following a special conference by the major Bitcoin investor MicroStrategy, Tapeiro expects further interest from institutional investors. More than 1,400 top managers have this week at the conference participated . MicroStrategy boss Michael Saylor also supports the thesis that companies will invest more in the crypto market leader in the future.

YouTuber Ali Spagnola ga ved et uhell $ 50 i Bitcoin til $ 39.000

YouTuber Ali Spagnola gjorde ved et uhell $ 50 BTC til $ 39k.

Spagnola glemte en donasjon på $ 50 i bitcoin i 2013 etter å ha blitt bedt om å lage et maleri med BTC-tema

Den populære YouTube-artisten Alicia “Ali” Spagnola sier at hun ved et uhell ble bitcoinrik etter å ha mottatt en BTC-donasjon gitt i 2013.

I følge en nylig video , først oppdaget av Bitcoin.com , fortalte Spagnola sine 325 000 abonnenter at hun var “bitcoinrik” fra en $ 50 BTC-donasjon gitt i 2013. Den populære YouTube-musikeren sa at hun mottok BTC gjennom sitt Free Paintings- prosjekt for mange år siden. , etter å ha blitt bedt om å gi en akrylfortolkning av bitcoin.

Hun delte et utdrag av den opprinnelige e-posten fra 25. juni 2013, da en forespørsel overbeviste henne om å godta bitcoin

Jeg vil gjerne betale deg $ 50 (i bitcoins) for din tolkning av en bitcoin – en ny virtuell valuta som gjør det superenkelt å sende / motta penger over internett.

Etter det siste bull-rallyet for bitcoin, ballet Spagnolas glemte BTC til mer enn $ 39.000, og fikk henne til å besøke donatoren i Las Vegas og personlig levere en større versjon av det originale portrettet.

YouTube-personligheten kunngjorde et “pay it forward” -initiativ med sin heldige donasjon og sa at hun ville sende $ 50 i BTC til ti tilfeldige kommentatorer på videoen.

Deadmau5 and digital artist Mad Dog Jones are auctioning crypto art

The DJ publishes another work of art based on NFT technology.

Successful EDM DJ Deadmau5 has teamed up with digital artist Michah Dowbak, also known as Mad Dog Jones, to publish two crypto artworks on the Nifty Gateway trading platform

The digital works of art in question are already trading for $ 338,000, with the two auctions still pending.

The crypto works of art are designed in the form of so-called non-fungible tokens (NFT). NFTs are crypto coins that are unique due to their conception and cannot be duplicated, which is why they are particularly suitable for the digital securitization of works of art and collectibles.

Deadmau5 and Dowbak have fused a mix of music and digital art in their two NFTs. Dowbak had previously sold several NFT artworks with DJ 3Lau, which sold out within seconds.

The digital artist has collaborated with a number of well-known personalities and groups, including Run The Jewels, Jabbawockeez, Conor McGregor, Maroon 5 and Chromeo

Deadmau5 has also tried NFT art before. The DJ had only sold a 30-second audio work of art in December 2020 , which grossed 49,277 US dollars. In the same month he also had 6,000 NFT packs on the Wax Exchange to purchase offered that contain clips from his shows and video clips. With this he was able to bring in almost 100,000 US dollars. The musician seems to have set himself the goal of getting his fans excited about NFT technology. Its reach is immense, because it has 3.5 million followers on Twitter, while it is 2.5 million and 1.7 million respectively on Instagram and YouTube.

Nifty Gateway, an NFT trading platform operated by the Winklevoss twins, came up with another prominent auction this week. It was recently announced that Justin Roiland, one of the creators of the Rick and Morty series, will publish his own NFT artwork based on the series on January 19th.

In addition, a collaboration between artist Hipworth and British DJ Carl Cox goes online on Nifty tomorrow.

Volume recorde e tráfego “insano” estão quebrando as principais bolsas de criptomoedas

As bolsas continuam a lidar com problemas de dimensionamento e conectividade conforme o volume atinge novos ATHs todos os dias, em conjunto com o preço dos ativos digitais.

Os ganhos históricos do Bitcoin estão resultando em problemas constantes nas bolsas de criptomoedas.

Na quinta-feira, o Bitcoin ultrapassou os US $ 40.000 e, em seguida, forneceu uma oportunidade de comprar o mergulho com sua queda para US $ 36.550, mas as pessoas não puderam tirar proveito disso porque não conseguiram acessar as plataformas. Hoje, o BTC superou $ 41.960.

Na quarta e na quinta, a Coinbase teve problemas de conectividade

“Estamos cientes e investigando problemas de conectividade no Coinbase e no Coinbase Pro em aplicativos da web e móveis. Estamos trabalhando rapidamente para restaurar o serviço ao normal ”, observou a bolsa de valores com sede em São Francisco, que entrou com um pedido de IPO junto à SEC no mês passado com uma avaliação rabo de cavalo de $ 28 bilhões.

Esta não é nem a primeira vez que a comunidade de criptografia há muito reclama, antes mesmo da corrida de touros de 2017, sobre isso sem solução alguma.

Outra bolsa de criptomoeda popular, a Binance , está lutando contra problemas de escala semelhantes. Seu CEO, Changpeng Zhao, prometeu adicionar mais capacidade de servidor durante a paralisação de dezembro.

Essas interrupções nas trocas de criptografia resultam de aumentos rápidos de preços que estão trazendo mais e mais tráfego para eles. Quando a BTC quebrou a marca de US $ 10 mil em junho, a Coinbase teve um aumento de cinco vezes no tráfego em quatro minutos.

O tráfego da Coinbase aumentou de 23,73 milhões em outubro para 47,97 milhões em dezembro, de acordo com a Web semelhante. Durante o mesmo tempo, o tráfego de Binance aumentou de 32,5 milhões para 56,27 milhões.

O volume entre as bolsas também atingiu novos recordes

“Binance está experimentando volumes de ATH. Os usuários podem experimentar alguns atrasos devido à extrema volatilidade do mercado ”, tuitou a bolsa na sexta-feira.

Bitcoin recovers quickly and reaches $41,000 with market capitalization exceeding Tencent

Bitcoin goes beyond Tesla’s market capitalisation for a short period, as the bulls suggest that the bullish momentum does not end at $40,000.

Bitcoin recovers quickly and reaches $41,000 with market capitalization exceeding TencentMERCADO

Bitcoin (BTC) returned to US$40,000 on January 8 when another period of price consolidation came to an end soon.

Cryptomorphic market overview. Source: Coin360
Data from Cointelegraph Markets, Coin360 and TradingView showed that the BTC/USD increased rapidly to recapture the psychologically significant price level during Friday’s trading.

After a 9% drop from an all-time high the previous day, Bitcoin managed to stay low for only a few hours before the bullish momentum returned. After that, the largest cryptomoeda not only hit its historic highs, but also delivered a new high: $40,087.

1 minute BTC/USD (Bitstamp) candles chart. Source: TradingView
“It seems that the price only falls to shake the weakest hands”, summed up a popular social media trader on the day.

Bitcoin’s market capitalisation grows

Bitcoin also beat the market capitalisation of Chinese giant Tencent and briefly overtook the “beloved” Tesla technology company, rising to US$41,000 per currency.

Data from CoinMarketCap and Companies Market Cap confirmed Crypto Engine that on January 7, Bitcoin almost entered the top five companies by market value.

Top companies by market cap as of Jan. 8, 2021. Source: Companies Market Cap.
As BTC/USD surpassed the $40,000 mark, Bitcoin’s market capitalization grew to unprecedented levels, reaching $745 billion. A day later, after a correction, the figure retreated to US$737 billion before recovering its previous record.

At the same time, Tesla delivered a rapid daily gain of 7.3%, allowing it to outperform Bitcoin once again after losing its market capitalisation capacity to cryptomeda for a short period. On Friday, the company was at $773 billion while Bitcoin was once again at $40,000.

A more decisive victory came over Chinese technology giant Tencent, however, which with $716 billion bowed to Bitcoin’s impetus. Previously, Tencent was also worth more than Tesla.

As the Cointelegraph reported, Tesla also performed better than stocks and crypto in 2020, beating even Bitcoin’s performance from March’s casualties. A look at the growth of Tencent shares, however, highlights the slow pace of gains that characterized other stocks compared to cryptomede.

“There are still companies in the world that are worth more than #Bitcoin. Madness,” said Tyler Winklevoss, co-founder of the Gemini exchange, about the phenomenon.

SkyBridge lança oficialmente seu fundo de Bitcoin com posição de $ 310 milhõesSkyBright

A firma de investimento global com sede em Nova York SkyBridge Capital anunciou hoje que iniciou seu Fundo Bitcoin com $ 310 milhões em ativos sob gestão (AUM).

O gestor de fundos de hedge fundado pelo ex-Diretor de Comunicações da Casa Branca, Anthony Scaramucci, é atualmente a mais nova empresa de gestão de fundos a oferecer aos investidores institucionais exposição ao bitcoin por meio de um fundo Bitcoin.

O SkyBridge Bitcoin Fund está sendo semeado com $ 310 milhões em ativos supostamente obtidos do fundo principal de $ 3 bilhões da empresa

Comentando sobre o desenvolvimento mais recente, o fundador e sócio-gerente da SkyBridge, Anthony Scaramucci, disse à Reuters: “Imagine cada portfólio de modelo onde o ouro se tornou uma classe de ativos aceita, cada portfólio de modelo tem 1% de exposição ao bitcoin e você pode ver a magnitude de onde o bitcoin poderia ser.”

A adoção do bitcoin pela SkyBridge resultou do recente aumento no preço do bitcoin, juntamente com outros ativos criptográficos. A criptomoeda mais alta está em uma tendência crescente e até mesmo estabeleceu um novo recorde histórico para si mesma quando cruzou o limiar de $ 34.000 no domingo.

Além do recente aumento de preço, SkyBridge também está indo para os lucros

Dados da Hedge Fund Research (HFR) – uma empresa de monitoramento da indústria, revelam que apenas em novembro, os fundos focados em criptomoedas obtiveram lucros de 52%, que são cerca de 156% em 2020

De acordo com o presidente da HFR, Kenneth Heinz, os lucros obtidos com os fundos de hedge atraíram a atenção dos investidores, ele disse: “Depois de postar fortes ganhos durante a tumultuada 2020, os investidores estão ativamente aumentando a exposição aos fundos de hedge, incluindo estratégias de criptomoeda”.

A SkyBridge espera abocanhar uma fatia do mercado do Bitcoin Trust da Grayscale, que atualmente detém US $ 17,5 bilhões em ativos sob gestão.

Bitcoinkosten Spike Bijna 5X in één week als BTC ATH bereikt

De prijs van Bitcoin ging naar de maan, maar de transactiekosten zitten ook op dezelfde raket. Ethereum ondervindt ook hetzelfde probleem

Blij met de prijsstijging van Bitcoin? Deel een deel van uw rijkdom met de mijnwerkers. De transactiekosten van Bitcoin stijgen in een razend tempo, na de stierenloop en het algemene optimisme in de crypto-markten.

Gedurende de laatste week stegen de prijzen van Bitcoin aanzienlijk, waardoor de vorige ATH werd gebroken en de prijs boven de $23100 kwam te liggen. Maar de transactiekosten stegen bijna in lijn met de prijzen van Bitcoin.

Prijs van Bitcoin in 2020

Bitcoin-kosten Volg de prijs

In een kwestie van ongeveer 5 dagen, ging de gemiddelde transactieprijs voor Bitcoin hodlers van $2.71 op 13 december 2020, naar $11.9 op 18 december, wat neerkomt op een stijging van 439%. Met andere woorden, elke dag van de week was de gemiddelde Bitcoin-transactie bijna 90% duurder dan de dag ervoor.

Met deze stijging komen de kosten voor het verzenden van Bitcoin gevaarlijk dicht in de buurt van het jaarlijkse hoogtepunt van 13,15 dollar dat eind oktober 2020 werd bereikt.

Het cijfer verbleekt echter in vergelijking met de gemiddelde transactiekosten tijdens de stierenloop van 2017. Op dat moment bedroeg de gemiddelde prijs van Bitcoin $55 per transactie, waardoor het bijna onhaalbaar was om het te gebruiken als “digitaal geld” – en het perfecte excuus te worden voor het creëren van rivaliserende vorken zoals Bitcoin Cash, die lagere kosten en een grotere snelheid beloofden in ruil voor grotere blokgroottes.

De stijgende kosten zijn geen willekeurig fenomeen. Het heeft twee essentiële verklaringen:

De prijs van Bitcoin heeft recordhoogtes bereikt, dus de dollarkosten van een transactie hebben de neiging om te stijgen naarmate de waardering van elk bitcoin-muntstuk toeneemt.

Bitcoin wordt meer gebruikt en verhandeld. Het netwerk heeft echter zijn eigen beperkingen door het ontwerp, en elk blok kan slechts een kleine hoeveelheid informatie bevatten. Naarmate meer gebruikers proberen bitcoins te versturen, “vechten” transacties om een plaats in het dichtstbijzijnde blok. Dus, hoe meer geld iemand bereid is om de mijnwerkers te betalen, hoe sneller hun transactie zal worden bevestigd.

In de afgelopen maanden hebben de Bitcoin-kosten geschommeld en zijn ze na aanzienlijke pieken gedaald. Als de trend zich voortzet, zal het gemiddelde tarief waarschijnlijk binnen een paar dagen terugkeren naar een normaal niveau.

De huidige piek is echter geen slecht teken, vooral gezien het feit dat Bitcoin zijn prijsniveau van 2017 met bijna 20% heeft overtroffen en de commissies nog steeds 25% van het record van dat jaar bedragen.

Ethereum gaat door hetzelfde ding…

Ethereum heeft ook de effecten van de opleving van Bitcoin gevoeld, en de prijzen zijn samen met de transactiekosten gestegen.

Maar het was een soort eerlijk spel, vooral gezien het feit dat na de crash van COVID, het Bitcoin was die de effecten van de invloed van Ethereum voelde en begon te stijgen in prijs dankzij de boom van stablecoins en DeFi-projecten die lopen op de tweede belangrijkste blokketen in het ecosysteem.

Tijdens de piek van de DeFi-koorts raakte het gemiddelde ethereumtarief een ATH van 14,5, en hoewel de kosten vanaf dat moment begonnen te dalen, stegen de tarieven de laatste dagen aanzienlijk – net als bij Bitcoin,

Op 13 december was de gemiddelde vergoeding $1,59, en tegen 17 december waren die getallen opgelopen tot $5,3.

Maar het is niets waard dat Ethereum werkt aan een schaalbaarheidsoplossing die van vergoedingen een probleem van het verleden zal maken dankzij de overstap naar een PoS-algoritme en andere laag-twee oplossingen… Bitcoin lijkt zich daar nog niet al te veel zorgen over te maken.

Misschien is voor sommigen “digitaal goud” beter dan “een peer-to-peer elektronisch geldsysteem”.

Varför handlare säger att 13 875 USD kommer att bli nästa “logiska” Bitcoin-prismotstånd

Bitcoin-priset går mot $ 14K men handlare förväntar sig att $ 8,875-motståndet är en kritisk nivå på kort sikt.

Priset på Bitcoin (BTC) har överträffat 13 745 dollar och är nu på väg till nästa stora motståndsnivå. Näringsidkare har föreslagit att $ 13,875 är det kortfristiga nexnyckelområdet för BTC av två huvudskäl.

Först nådde Bitcoin en topp på 13 970 dollar den 26 juni 2019. Tekniskt sett fungerar den tidigare topp som uppnåtts för mer än ett år sedan fortfarande som ett viktigt område för säljare.

För det andra säger tekniska analytiker att det veckovisa ljusdiagrammet för Bitcoin visar $ 13 875 som nästa ”logiska motstånd”.

Den viktigaste faktorn kommer att vara hur Bitcoin-priset reagerar på att utnyttja den efterlängtade motståndsnivån och det kommer sannolikt att bana sin kortsiktiga prestanda fram till slutet av 2020.

Ska investerare förvänta sig en stor tillbakagång nära $ 14K-nivå?

Under de senaste dagarna har samtalen om en större Bitcoin-tillbakagång ökat när marknadssentimentet blev euforiskt.

Historiskt, även mitt i starka tjurcykler, såg Bitcoin Profit hälsosamma korrigeringar som ytterligare stärkte sin uppåtgående trend.

Edward Morra, en populär kryptovalutahandlare, sa att han förväntar sig en reaktion från marknaden till 13 875 dollar. Förra gången BTC testade den nivån för 16 månader sedan såg den en kraftig prisnedgång på kort tid.

Den här gången förväntar sig inte handlare en djup avvisning, men en stark reaktion förväntas från BTC och den bredare marknaden. Morra sa:

”På högtidsdiagram är denna veckovisa nivå ~ $ 13.875 nästa logiska motstånd. Det avvisade 2019-rally ganska hårt, andra testet kommer att vara mindre våldsamt men jag tror att det kommer att bli en reaktion. Att ta ut att ’19 högt i veckans utbud är en att titta på. “

Under den senaste veckan har Bitcoin testat många viktiga motståndsnivåer på kort tid. Ändå har det med lätthet brutit mot nivåerna, konsoliderat över var och en och visat en stabil rally.

För köpare skulle det ideala scenariot för Bitcoin vara att stiga över $ 13 875 och förbli stabilt över det. Ett sådant mönster skulle indikera en hälsosam återvinning av en flerårig motståndsnivå, vilket är mycket optimistiskt.

Ytterligare faktorer bakom Bitcoins fart

Det finns två grundläggande och makrofaktorer som kan katalysera Bitcoins fart på kort sikt: frikoppling och vilande tillgång.

Som Bitcoin-investeraren James O’Beirne påpekade, frikopplade BTC övertygande från den amerikanska aktiemarknaden i oktober.

På grund av bristen på stimulans, osäkerheten kring valet 2020 och den kraftiga ökningen av COVID-19-fall har den amerikanska aktiemarknaden sjunkit stadigt. Samtidigt har BTC ökat kraftigt och känslan kring den digitala tillgången har förbättrats avsevärt.

Enligt CoinMetrics har den vilande tillgången på Bitcoin som hålls i minst ett år nått en rekordhög nivå. Forskarna sa:

”Andelen BTC-utbud som hållits i minst ett år har aldrig varit högre. Detta är hausseartat för BTC, särskilt med tanke på att detta mått historiskt nådde en topp under perioder där priset låg på lokala lägsta priser.

Sammanflödet av positiva grunder, makro och tekniska faktorer, tillsammans med en optimistisk hög tidsram teknisk struktur, ökar sannolikheten för BTC-testning av 13 875 $ utan en massiv korrigerande rörelse.

Bitcoin Tokenization and the Synthetic Assets Market

Synthetic tokens like owBTC are already responsible for moving millions in bitcoin synthetics in decentralized exchanges.

Synthetic assets (Synths) are those whose value is tied to another asset, but whose functions can extrapolate it. Synthetics track the value of underlying assets and allow the exposure to the assets without the need to stop the real asset, that is, it is possible to issue a token backed by a ‘real’ asset and create from it a synthetic asset.

As mentioned, tokenized and synthesized assets give traders price exposure to the asset without the need to actually hold the underlying asset. In this synthetic market, Wrapped Bitcoin Circuit (wBTC) and renBTC are the most traded synthetic tokens.

Tokenized assets have another utility – they can be traded without friction between each other, which means that the wBTC can be easily exchanged for another synthetic, such as synthetic silver or other types of synthetic bitcoin in any decentralized exchange. It also means that anyone with an Ethereum portfolio now has access to any real-world asset that had already been tokenized.

Among the synthetic tokens, the wBTC is the most prominent, representing US$ 700 million in synthetic bitcoin tokens traded at decentralized exchanges.

Over US$ 1 billion in Bitcoin was tokenized for DeFi

Types of synthetic tokens

There are basically two different types of Synths, Normal Synths and Inverse Synths. Normal Synths are positively correlated with the underlying assets, while Inverse Synths are negatively correlated with the underlying assets.

An example of a synthetic asset is Synthetic Gold (sXAU) which tracks gold price performance. Price oracles track real world asset prices using services such as Chainlink or other oracles. An intelligent contract oracle feeds price information through various reliable third-party sources to prevent tampering.

An example of a Reverse Synthetic Asset is the Inverse Bitcoin (iBTC) that tracks the reverse performance of the Bitcoin price. There are 3 key values related to each Inverse Synths – the entry price, lower limit and upper limit.

Let’s consider the Inverse Synthetic Bitcoin (iBTC) as an example. Suppose that at the moment of creation, Bitcoin (BTC) is priced at $10,600 – this will be the entry price. If Bitcoin is lowered from $400 to $10,200, the iBTC will now be worth an additional $400 and will be priced at $11,000. The opposite will also be true. If Bitcoin goes up to $11,000, the iBTC will now be worth $10,200.

The Inverses Synths trade in a range with an upper and lower limit of 50% of the entry price. Thus, a limit is applied to the profit or loss that can be obtained by trading with Inverse Synthetics. Once the limits are reached, the exchange rates of the tokens are frozen and the positions are liquidated. Once deactivated and settled, these synthetics can only be exchanged in decentralized exchanges (DEX) at fixed values.

Tokenized assets and the synthetic market

Trading in synthetic bitcoins (sBTC) has grown a lot during the year 2020. Among the six synthetic bitcoin token projects, the Wrapped Bitcoin (wBTC) takes the lead, as it currently represents over 79% of the market with 117,183 wBTC. Followed by RenBTC, 13.56% according to Dune Analytics.

RenBTC exceeded US$ 250 million in circulation, while tBTC, its closest rival, represents a total of 2,564 ETH synthesized in its protocol.

When they are issued, most wBTCs and other synthetics are traded in DeFi protocols so that users can earn interest rates on loans, trading rates, or yield farming – the search for the best possible income opportunity on Decentralized Exchanges (DEX) platforms.

US$ 1 billion in Silk Road Portfolio Bitcoins moves for the first time since 2015

How synthetic assets are created

The idea behind the creation of Synths is similar to the creation of DAI in Maker. You must first commit Ether (ETH) as a guarantee in the intelligent contract of some DEX before being authorized to create the synthetic asset based on the posted guarantee.

The idea of tokenizing bitcoin is relatively simple. Following the same principle as the DAI, one must leave Bitcoin in deposit blocked by some mechanism, issue tokens on another network and apply Bitcoin as a related token on the other end.

Each token on the other network will represent a specific amount of Bitcoin. The anchor between the two assets must be maintained and the process must be reversible. In other words, it will be possible to destroy the tokens in question by unlocking the “original” bitcoins in the Bitcoin blockchain again.

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