Recently, Bitcoin surged over 12% reaching $89,174 as per the reports of Coin Metrics. Later, the price surged higher to $89,623. Ether also rose more than 7% reaching $3,371.79 after a 30% jump in the past week, pushing it back above $3,000 over the weekend. Additionally, the Cardano-linked decentralized finance token rose over 4.7% and Dogecoin saw a huge jump of nearly 24%

In the regular trading session, Coinbase closed up to 19.8% and MicroStrategy climbed more than 25.7% on November 11.

Bitcoin Achieves Record High as Market Soars

Bitcoin has hit a price of more than $80,000 for the first time in the cryptocurrency markets. The price of Bitcoin has doubled since last year from about $37,000. After the US Presidential elections, there has been a price rise in the traditional currency as well as individual stocks of the industries.

On November 11, the dollar rose by 0.6%, rising above several nations’ currencies. One euro bought less than $1.06 on Monday, compared with $1.12 at the end of September. The British Pound saw its lowest level as it slipped by 0.4% compared to the Dollar.

Hong Kong’s Hang Seng Index also fell by 1.5% on November 11, and China investors are preparing for steep new tariffs. Chinese investors believe that the outcome was not as expected, following China’s announcement of an economic stimulus plan last week. On the other hand, Tesla’s share price jumped nearly 9% as investors anticipated that the government would allow automakers to speed up the development of autonomous car technology.

As Bitcoin continues its record-breaking surge, reaching new highs and sparking optimism among traders, the broader market also sees significant shifts. With Bitcoin pushing past $89,000 and expectations of it crossing the $100,000 mark, the cryptocurrency world is buzzing with excitement.

Meanwhile, traditional markets are feeling the impact of the US election results, as the dollar strengthens and stocks like Tesla and Coinbase soar. Despite some challenges in global markets, including concerns over China’s economic policies and tariffs, investors are closely watching these developments for future opportunities. As we move forward, all eyes will remain on how the markets react to these ongoing changes, with Bitcoin and tech stocks at the forefront of this dynamic landscape.

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But if you’re determined to learn some Web3 basics and keep up with the evolution of the internet, blockchain technology is central to the process. Before you begin investing in the future of the internet, you might benefit from having Web3 explained simply and we’re going to try and do just that.

Image: Pexels

What Is Web3 in Simple Terms?

To give you an overview of what Web3 is, it refers to the next version of the internet, set to be created on blockchain technology, based on the principle of decentralization. It works on the basis of shared ledgers that can be controlled by individuals rather than turning to the servers and powers of different companies as we do now—Web3 promotes peer-to-peer (P2P) networks over the structure we have today. You might have already realized that a majority of the internet is controlled and organized by a few big powerhouses. These companies maintain large servers that hold and route information, and we interact with each other via their platforms. Whether you send an email or exchange money with someone, you operate via these established platforms. This current iteration of the internet is referred to as Web2.

The decentralization concept comes into play as a basic Web3 system where the central data silos and channels are broken down so individuals can connect with each other directly, using community-run networks that rely on an interconnected channel of many computers (nodes) to store and manage data. Through these nodes, each individual or “participant” can connect directly to another node. Their transactions are stacked into “blocks” and then connected to the existing “chain” of transactions, resulting in a ledger with a record of the exchange. 

If it sounds complicated, it is because even a basic explanation of Web3 for beginners is so evidently unfamiliar from how we see the internet function today. Still, reading about and understanding Web3 might make you more open to the benefits the new internet can offer. According to most records, Gavin Wood, the co-founder of Ethereum, coined the term in 2014. He believed that decentralized technology was the only way we could preserve liberal democracy and he and other influential figures began the work towards reframing our understanding of blockchain and the internet as a whole.

Web3 Explained: What Is the Main Goal of Web3?

The main goal of Web3 is to identify and resolve the shortcomings of Web2, and it intends to do so in multiple ways. In the current version of the internet, which has been around since 2004, we have a lot of tools that make life easier for us. These tools and platforms create new ways to interact with the data we find online. The downside to this is that our interaction lacks any sense of privacy, controlled entirely by companies that have access to your data at all times. It isn’t an ideal system but it’s what we have so far. 

The Web3 basics offer to change the system and take the power back into our hands, championing ownership so we can decide what is shared and with whom. According to Simplilearn, “Users will be able to sell their own data through decentralized data networks, ensuring that they maintain ownership control.” Selling personal information may not be the top priority, but it does give individuals authority over what is rightfully theirs. 

Web3 also intends to be trustful and permissionless. While trying to understand what Web3 is, you might recognize the emphasis on holding individual power. With power, it also brings a trusting, multi-directional bond where you are free to access any information you want without having to get permission from a governing body or give up something in exchange for it. Web3 intends to create a direct link between you and the source, allowing you to transact in a way that is comfortable for you. When its goals of interoperability are met, Web3 can enable different applications and services to work together smoothly instead of meeting incompatibility issues across platforms.

Is Web3 Artificial Intelligence?

This brings us back to the “What is Web3?” question and our understanding of its components. Web3 is not artificial intelligence itself but it does intend to use AI and machine learning to make its systems more efficient and sustainable. Web3 and its effort of decentralization can initially help AI systems by decentralizing the training models that are also maintained by a handful of powers, instilling transparency and promoting a voluntary exchange of knowledge and learning.

AI algorithms are adept at predicting data when they are sufficiently trained and these predictions can be incorporated while setting up Web3 systems. One of the many concerns with Web3 is the worry over security and how it can be facilitated, and AI can perhaps contribute to the detection of fraudulent activities and privacy vulnerabilities when set up. 

Smart contracts that are to be the cornerstone with Web3, can only be executed when the right conditions are met, eliminating the need for trust or familiarity between parties. AI could have a very important role in automating such processes. Semantic information does not always translate well in our present system, but AI could be the component to change that. 

We are still in the early stages of our journey towards Web3 and there are many layers of support that we have not predicted and practiced yet. The current evolution and investment in AI will inevitably tie into the Web3 basics over time.

Who Benefits from Web3?

The beneficiaries of Web3 systems would be every individual who participates in the use of such tech. Big businesses that currently run these central services stand to lose heavily in the shift to Web3. However, the average population will retain ownership of their data and the executive power to decide what they do with it. That is the most essential takeaway you should retain from this Web3 overview. Blockchain technology guarantees transparent systems and even businesses that commit to this central cause could eliminate a lot of the vulnerabilities that are present today.

By removing intermediaries, and facilitating a P2P network, users gain the authority to share information as is convenient for them.

What Are the Disadvantages of Web3?

If you understand what Web3 is and see the benefits of its adoption, you might begin to wonder why we haven’t yet scaled up such technology already. What we’ve discussed so far are the Web3 basics, but there are a lot of complex components that will take years more to set up and more time to find acceptance globally. The transition to an entirely new internet structure will mean a lot of changes in how we operate and governmental regulations are bound to get in the way. One of the biggest disadvantages of Web3 is the complicated nature of the technology structure itself, and the difficulty of explaining its impact to the wider masses.

With AI, we’ve been able to see both acceptance and resistance, but it is still easier technology to decipher for a larger majority. Things are a little different for blockchain and Web3. There are other disadvantages to Web3 as well:

• Being associated with the volatility of the crypto market: Many understand blockchain to a degree but from the perspective of cryptocurrency, a market that has had too many ups and downs for users to trust willingly  
• Scalability Issues: Limited computational power to support extensive decentralized networks
• Complexity: Web3 technologies are complex and will be difficult for average users to understand and use without building more awareness around such tech
• Economic and social barrier: Access to the internet is not universal and another major shift in technology will make it harder for those who are just catching up to adapt all over again
• Security concerns: Smart contracts and other Web3 tech will have bugs and severe security issues until they can be rightly tested and resolved
• Regulatory Uncertainty: The regulatory environment for Web3 technologies is still in the early stages and there are insufficient policies for enforcing it, leading to uncertainty and potential legal risks for developers and users. Creating an international system will bring issues with many overlapping guidelines
• Lack of decision-makers: One of the benefits of Web3 is its lack of central powers but it also removes decision-makers and the ease of coordination between various participants
• Difficulty with securing consensus: Without central decision-makers, a democratic setup takes every perspective into consideration, which is hard to do with such a setup

Is Web3 the Future of the Internet?

There is no way to guarantee an answer to questions about when and how we will make the transition to Web3, but for all intents and purposes, Web3 is believed to be the future of the Internet. Many stakeholders and authorities are certain that the adoption of the decentralized Web3 systems built on blockchain is the only way forward. Cryptocurrencies, Decentralized Autonomous Organizations (DAOs), and NFTs all belong to the Web3 blockchain family and they have all gained popularity and some degree of acceptance in their own right. Axie Infinity, a blockchain game developed by Vietnamese studio Sky Mavis, has shifted how some see Ethereum-based cryptocurrencies by gamifying its exchange in-game.

According to Harvard Business Review, the number of developers working on Web3 doubled to 18,000 in 2021. The numbers have certainly grown since then. Investments in companies that work with Web3 are on the rise and we’re seeing more and more individuals sensing the shift, developing a sense of curiosity, and asking anyone they can, “What is Web3 and how can I be a part of it?” 

Platforms like Coursera offer courses on Web3 for beginners, explaining the fundamentals of the rising technology. Actively exploring the basics of Web3 is in everyone’s best interest, if only to stay prepared for the changes the next few years will bring. Web3 does seem to be the future of the internet but the path towards it still remains unfinished. 

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Image: Pexels

Will Bitcoin’s All-Time-High Be Surpassed?

Following Bitcoin US regulators’ approvals, 11 spot Bitcoin ETFs were launched in January and these have been the primary reason for the Bitcoin price surge. In less than a month, we saw Bloomberg reporting that there was more than $4.2 billion in net new flows as a result. Some of the largest and most well-known investment firms, such as BlackRock Inc. and Fidelity Investments, have drawn interest in this investment surge, attracting substantial inflows totaling around $7.35 billion. According to Fortune, the two firms have captured 79 percent of the total inflows for the “Newborn Nine,” which is what the group of approved ETFs are being tagged as. Despite reports of significant outflows as well, particularly with Greyscale Bitcoin Trust, traders appear unshaken in their convictions with regard to the strength of Bitcoins. 

The Bitcoin price surge in connection with the US regulators is an association that needs to be studied in detail. The ETFs or exchange-traded funds that were approved received the go-ahead after significant lobbying by crypto firms that wanted to expand on the interest that many investors had in crypto but were unwilling to take the time to get into. The Securities and Exchange Commission (SEC) held off on their approval for quite a while and even the final decision was paired with reluctance. U.S SEC Chair Gary Gensler felt he was forced to submit the approval after a court ruling left them with little room to choose an alternate course of action. 

According to CoinDesk, he stated, “It should in no way signal the commission’s willingness to approve listing standards for crypto asset securities, nor does the approval signal anything about the commission’s views as to the status of other crypto assets under the federal securities laws or about the current state of non-compliance of certain crypto asset market participants with the federal securities laws.” Preaching caution, Gensler expanded on the risks of Bitcoin and the products that have their value tied to crypto. The SEC’s apprehension surrounding the cryptocurrency is quite valid but in the end, the approval of ETFs does secure the future of crypto a little more firmly.

What Are These Spot Bitcoin ETFs?

In a spot Bitcoin ETF, the ETF provider holds real Bitcoins, not futures contracts, to back the shares of the ETF. This means that investors in the ETF indirectly own a portion of these Bitcoins. Here each spot Bitcoin is managed by a specific firm that acquires coins from authorized cryptocurrency exchanges and other holders and manages the Bitcoin for investors rather than each investor managing their own digital wallet. The shares of these spot Bitcoin ETFs are then listed and traded on traditional stock exchanges. The possibility of crossing Bitcoin’s all-time high is a result of the availability of spot Bitcoin ETFs that have more money being poured into the cryptocurrency.

ETFs simplify the process of gaining exposure to Bitcoins without directly owning a specific Bitcoin portfolio through the cryptocurrency exchange. Instead, investors now have the option of buying shares of the Bitcoin ETF through the traditional brokerage accounts they already have some experience with. Apart from increased accessibility, ETFs make diversification easier and mitigate some of the risks of investment by allowing for a wider spread of investments. With baskets of assets that allow for exposure to Bitcoins as well as other assets, more investors become willing to brave the volatility for big returns. With high liquidity options and the convenience of familiarity, it is no wonder the Bitcoin price surge occurred following the peace made between Bitcoin and US regulators. 

The future of crypto also appears to hold a “halving” event in-store. Every four years the rate of new Bitcoin creation is cut by 50 percent which reduces the Bitcoin supply. If the demand increases or even remains where it is currently. the price of these Bitcoins could see an upward surge. Finally breaking the spell of bad luck that had surrounded the Bitcoin market value, things seem to be looking up for investors with many optimistic that the uptick in value could be sustained for a while.

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Launched in 2022, Harpie, a company that provides on-chain crypto security solutions, has been one of the good guys looking out for the consumers’ safety needs online. Backed by leading Web3 names like Dragonfly Capital, Coinbase Ventures, and OpenSea, Harpie’s services help defend against security vulnerabilities that you might not even know to look out for, from bait and scam sites to phishing attacks that could cause big losses before you even realize it’s happening.

From the humble beginnings of a college student with an understanding of a gap in the crypto industry, the company has worked hard to build up trust in its services with time. Daniel Chong, CEO and Co-founder of Harpie, has helped the company grow its services and steadily reach more investors, providing crypto security to ensure their wallets remain safely in their possession where no straying hands can make a malicious attempt at accessing their data. We were able to get a quick interview in to hear all about his experience with Harpie and the expansive world of cryptocurrency.

On Harpie and the Future of Crypto Security

Technowize: Beyond preventing theft and scams, how does Harpie envision evolving into a broader security suite for Web3?

Stopping theft and scams will always be our core focus but as we grow, how we do that will evolve. We’re not necessarily going to grow by piling on features, but by making our product really accessible and helping people understand its necessity.

Right now, we are very focused on investor education. Most people understand that they should have wallet protection once they know that it’s available–but they don’t necessarily feel the urgency to put it in place right now. That typically comes only after direct experience of a scam or accidental transfer–and by then, it’s too late.

Near term, we want to do more outreach and onboarding, helping people get started with Harpie and showing them how easy it is to add meaningful protection for their self-custodied assets. In the long term, we aim to strengthen our enterprise relationships so that users don’t even have to proactively install Harpie themselves. If these tools are built directly into wallets, everyone can rest a bit easier.

Technowize: With the increasing institutional adoption of crypto, where do you see Harpie catering to their unique security needs?

We have the most advanced security tools in the market, but right now, we’re all about protecting individual investors. Banks, hedge funds, and other institutional actors need very specialized tools, which isn’t our current development focus. Still, we’re watching the enterprise space. If we see an opportunity to address their challenges with our technology, that could be a part of our evolution.

Technowize: The on-chain firewall concept is cutting-edge. How are you planning to stay ahead of constantly evolving crypto-threats?

The crypto scam economy does evolve rapidly–but those mutations take place at the social engineering level. Bad actors are constantly innovating ways to get people to click on the wrong link or accept the wrong smart contract–but once they do, the asset transfer mechanisms remain the same. Our technology is futureproof, to a certain extent, because it’s a low-level service operating very close to the blockchain itself.

Harpie detects when assets are being moved to an unknown or suspicious wallet and prevents the transaction from executing. No matter how sophisticated the scam, that trigger remains simple and hard to defeat.

Technowize: How do you see regulations impacting the landscape of crypto security in the coming years, and how is Harpie preparing for it?

The crypto industry as a whole is watching global regulators very warily right now but crypto security companies are unlikely to be directly impacted by any current or pending regulation. Scam and theft prevention are unambiguously good: regulators don’t have any reason to interfere with what Harpie is doing.

Still, in a rapidly changing landscape, it is important to diversify. We have developed multiple different methods of on-chain asset protection. If an unforeseen new regulation suddenly made one method untenable, we have other, proven solutions ready to fill that gap.

On Entrepreneurship and Leading in the Crypto Space

Technowize: You started Harpie while still studying at Duke. What unique challenges and advantages did this present, and what advice do you have for aspiring crypto entrepreneurs?

Starting Harpie while studying at Duke was a difficult and unique challenge because let’s face it: I was a college student building a security company. Security requires a lot of trust, and I had no money, no connections, and no track record. It was, frankly, really hard.

I am fortunate, however, to have an excellent support network including Duke—a world-class institution that enthusiastically supports entrepreneurship. It was also an advantage to be operating in the crypto space, where youth isn’t automatically seen as a liability. If you can talk the talk and walk the walk, the crypto community will treat you as a peer—even to the point of offering support and funding.

 To other young tech entrepreneurs, my most valuable advice is to focus on the problem you are solving for your customers first and foremost, rather than improving some marginal technical disadvantage. A lot of people get very excited about technical capabilities and optimization, but none of that matters if your customers don’t have a reason to care.

Build a clear picture in your mind: Whose problem are you solving? Where are you going to solve that problem? How will you price your solution? You won’t have everything figured out right away, but seeking and refining these answers is even more important than writing your code.

Technowize: Harpie has secured funding from renowned investors. How did you navigate the early fundraising stages in the dynamic crypto market?

A lot of startup entrepreneurs have a pedigree that they rely on to get funding. That wasn’t me—so instead of a pedigree, I offered proof.

My co-founder and I built a prototype web app entirely under our own steam as a side project. It wasn’t perfect, there were outages and growing pains, but we found an audience. People used the app, which brought in some advertisers, and eventually allowed us to transition to a paid subscription model. By the time we were seeking funding, we had proof that we could build a product people actually wanted and were willing to pay for. That is more than what a lot of more seasoned, well-connected entrepreneurs offer.

One of the lessons here is that if you have a good understanding of what problem you want to solve and how; you don’t need much else to get started. You don’t need huge amounts of funding to create a proof-of-concept for a blockchain project: I knew what I wanted to build, so I learned the skills required and built it. If you have a great solution, the funding will follow.

Technowize: Leading in a fast-paced, often volatile industry like crypto comes with its own set of pressures. How do you maintain a work-life balance and ensure sustainable growth for Harpie?

I don’t allow myself to get caught up in the CEO “grindset.” Many tech entrepreneurs think they have to set an example of constantly working 12 to 16 hours a day so they can hold their staff to the same standard. I don’t believe that’s fair, sustainable, or necessary. There are diminishing returns for long hours: I suspect that very few of those 16 working hours per day are actually productive.

I aim to keep my working hours steady. Periods of heavy work and overtime happen: That’s part of the nature of any startup. You have to prepare by giving yourself time and space every other day. By maintaining a steady, manageable schedule most of the time, I preserve my own capacity and my team’s for those all-in moments.

Technowize: What are some of the biggest misconceptions you face as a young CEO in the crypto space, and how do you address them?

Actually, working in the crypto sector, I haven’t been faced with many misconceptions or prejudgments. I view it as one of the major advantages of this industry: I’ve always been respected as a young CEO in crypto, which I can’t imagine would be true in many other fields.

Exploring the Broader Industry and Web3

Technowize: Harpie focuses on empowering investors. How do you see individual ownership and responsibility evolving in the Web3 world?

I hope to see the conversation shifting from individual to communal responsibility for preventing scams and thefts. Right now, there’s a lot of finger-wagging at anyone who is the victim of a crypto scam, but is that really fair? Crypto consumers can receive 10 scam texts per hour—we are asking people to take on a massive burden of research and responsibility.

I believe crypto security is everyone’s problem. The social platforms the community uses have a responsibility to crack down on bots and fraudulent accounts. Security providers need to educate users about both risks and live threats. Security tools need to be more ubiquitous and built into more platforms. We need to make it possible for people to use crypto securely without themselves being crypto security experts.

I also see self-custody emerging as the best way to hold and transfer value in the developing world. In the Western market, there are a lot of options for holding money securely – but in the growing market, a crypto wallet is the best option, especially with respect to receiving aid or sending income to family members across borders.

Technowize: Decentralization is a core tenet of Web3. How do you ensure Harpie maintains its own neutrality while providing robust security solutions?

Decentralization is an important value for a lot of organizations, but it’s not always the highest possible good. Harpie values transparency and agility above decentralization. That is why we are a centralized company, and always will be.

As a centralized company, we can make decisions, respond to threats, and communicate our actions quickly without needing to navigate voting processes or community guidelines. When it comes to security, that degree of responsiveness is essential.

Technowize: Do you see a future where centralized and decentralized security solutions co-exist and complement each other in Web3?

It’s difficult to imagine what a successful decentralized security solution would look like—that aspect of Web3 will likely always rely on centralized organizations. However, solutions like Harpie do protect both decentralized and centralized assets and will continue to do so. Both have their place in the market.

Technowize: Looking beyond crypto, what other areas of Web3 do you find most exciting and ripe for disruption, and why?

I believe NFTs are a really interesting technology, and that we will see a resurgence in their use—albeit in a new form. What an NFT does really well is signify membership in a community. Up till now, these have tended to be speculative investment communities, but they don’t have to be. An NFT could signify your professional credentials, association memberships, union affiliation, and more.

I find digital identity in general to be a really interesting space. We need identity solutions that can be shown publicly while protecting privacy and can’t be lost or spoofed. Blockchain-based digital identity could accomplish all of that, improving safety and privacy online and in the real world.

Bio: Daniel Chong is the CEO and co-founder of Harpie, the crypto security platform. Daniel began using Bitcoin in 2012 and has been developing on Ethereum since 2018. While pursuing a Mathematics degree at Duke University, Daniel worked as a development and security consultant for a variety of crypto companies, leading award-winning projects to victory at conferences including ETHDenver. After closing a funding round in 2022, Daniel left Duke to focus on Harpie full-time. He’s dedicated to ending the threat of crypto theft and making smart contracts safe and accessible to all.

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Ether is already the second most popular cryptocurrency, behind bitcoin, but the arrival of the ETFs may make it easier for certain types of investors to gain exposure to that part of the crypto market.

Crypto EFTs debut news

“I think the long-term buyers of these products are financial professionals like financial advisors, family offices,” and registered investment advisors, said Bitwise CIO Matt Hougan. “Retail traders can get exposure to ethereum through a Coinbase app, but a financial professional can’t invest through a phone,”

Ether Futures EFTs products

Ether Futures EFTs debut with products and their net expense ratios, include:

• BitWise Ethereum Strategy ETF (AETH), 0.85%
• Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), 0.85%
• ProShares Ether Strategy ETF (EETH), 0.95%
• ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE), 0.95%
• Bitcoin & Ether Market Cap Weight Strategy ETF (BETH), 0.95%
• VanEck Ethereum Strategy ETF (EFUT), 0.66%

Bitcoin futures ETFs already exist, led by the ProShares Bitcoin Strategy ETF (BITO), which holds about $900 million in assets. The fund has slightly lagged the price of spot bitcoin since inception in 2021, when bitcoin was near an all-time high.

“The thing that people wanted to find out was would a bitcoin futures ETF do its job? Would it track the performance of bitcoin? And in fact it has done that quite well,” said Simeon Hyman, head of the investment strategy group at ProShares.

Ether futures SEC decision

The launch of ether futures funds comes as the SEC is mulling its next steps over a potential spot bitcoin ETF. The SEC regulator has repeatedly blocked products like Ether futures from launching in recent years, but a judge ruled in August that its reasoning against converting the Grayscale Bitcoin Trust into an ETF was flawed.

Many firms have active applications to launch their own bitcoin ETF, including mainstream money managers like BlackRock and crypto-focused ones like Bitwise, though the SEC has so far delayed a decision on those applications. The launch of the ether futures products may be a reason for optimism that spot bitcoin products will be approved.

“I do think the approval and launch of these [ether futures] products is a positive sign that we’re on the path to spot crypto products in the relatively near future,” Hougan said.

Tax treatment

One notable difference among the funds launching Monday is that VanEck’s ETF is structured as a C-Corp., which will change its tax treatment. One of those differences is that the fund will pay a corporate tax in exchange for lower tax rates on distributions, according to Kyle DaCruz, VanEck’s director of digital asset product.

“On a pre-tax basis performance-wise, in a bull market you might see a C-Corp fund underperform the others. But that’s kind of apples to oranges. The C-Corp benefits really don’t shine through until the after-tax performance basis,” DaCruz said.

Ether Futures EFTs change in strategy

Ether futures ETFs had something of a false debut last week, when Valkyrie briefly began and then reversed its plan to change its Bitcoin Strategy ETF (BTF) into a product that held both ether and bitcoin strategies. The company said Friday afternoon that it expects the change to take place by Tuesday instead.

Grayscale Ethereum fund conversion

Also announced by Grayscale on Monday that it has filed an application to convert its Ethereum Trust into an ETF.

Grayscale Investments in conjunction with NYSE Arca has filed for approval from the U.S. SEC to convert the Grayscale Ethereum Trust (ETHE) to a spot Ethereum ETF.

Crypto market update

Spot prices for bitcoin rallied on Monday, hitting their highest level since mid-August. The price of Ether rose on Monday morning before reversing course in afternoon trading.

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Armstrong argues that instead of AI regulations, it should be decentralized and open-sourced to foster innovation and competition in the space.

Coinbase CEO Brian Armstrong. (Image Courtesy – Coinbase)

What is the Coinbase exchange CEO’s perspective on AI regulation, the potential consequences of regulation, and the alternative approach of decentralization and open-sourcing?

Coinbase CEO Brian Armstrong On Regulation

Armstrong firmly believes that AI should not be subject to regulation. He argues that regulation often leads to unintended consequences and stifles innovation and competition. 

Count me as someone who believes AI should not be regulated

We need to make progress on it as fast as possible for many reasons (including national security). And the track record on regulation is that it has unintended consequences and kills competition/innovation, despite best…

— Brian Armstrong (@brian_armstrong) September 22, 2023

The Coinbase CEO points to the internet as an example of how a lack of regulation can spur innovation. He refers to a “golden age of innovation” when the internet and software were not heavily regulated. Armstrong suggests that the same approach should be applied to AI technology.

While cryptocurrency has been at the mercy of regulations, the CEO of Coinbase aims to illuminate a different course for AI. 

To protect the AI space, Armstrong proposes decentralization and open sourcing. He implores that by decentralizing AI and making it open-source, innovation can flourish without the limitations imposed by regulation. This approach would allow for greater collaboration, transparency, and community involvement in the development of AI technologies.

By opening up AI to a wider range of contributors, Armstrong suggests that the potential for breakthroughs and advancements in the field would increase. He believes that decentralization can prevent any single entity from monopolizing AI technology, ensuring a more competitive and diverse ecosystem.

Coinbase CEO Talks About The Risks of AI Regulation 

While Armstrong argues against AI regulation, he acknowledges that there are concerns and risks associated with the technology. Issues such as privacy, security, and ethical considerations need to be addressed. However, he believes that these problems can be better tackled through a decentralized and open approach rather than strict regulation.

Armstrong’s perspective is in line with the belief that the benefits of AI outweigh the risks, and that a cautious, collaborative approach is more effective than heavy-handed regulation. He emphasizes the importance of balancing innovation and societal concerns, noting that AI has the potential to revolutionize various industries and enhance national security.

Global Perspectives on AI Regulation

Federal agencies around the world have started to regulate or express concerns about AI technology. For instance, China has implemented provisional guidelines for AI activity and management, aiming to strike a balance between fostering innovation and addressing potential risks.

In the UK, the Competition and Markets Authority has examined the impact of AI on competition and consumers. The CMA acknowledges the transformative potential of AI but warns that its rapid development could have significant implications for competition.

These examples highlight the ongoing debate surrounding AI regulation and the different approaches taken by governments and regulatory bodies. While some countries opt for regulation, Coinbase CEO Brian Armstrong advocates for a road less traveled as an alternative. Armstrong believes that a transparent approach can prove to be more collaborative in fostering the development of AI technologies rather than caging it under the garbs of regulations. 

As the AI industry continues to evolve, it is crucial to consider different approaches and strike a balance between innovation and addressing societal concerns.

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Early 2023 saw a resurgence of crypto with bitcoin’s price shifting over the $30,000 mark in April. But volatile as it is, August saw asset prices plunge below $25,200. Reports indicate that the total value of all cryptocurrencies has fallen to $1.02 trillion on 1 September 2023—a whopping 3.7% drop. While some assure that the decline is normal within the bear market and will rise by the end of the year, others are not so sure and predict another full-blown crypto crash in September 2023.

A Wall Street Journal report indicated that Musk’s SpaceX wrote down its bitcoin holdings value by $373 million over 2021-22 and had sold an undisclosed amount of the cryptocurrency. This caused rumors about the sale of the company’s entire bitcoin holdings but the actual numbers were unclear. Some have linked the 10% bitcoin price drop to the news, but Musk is not solely to be blamed for the crypto market being down recently.

The Fall of FTX and its Impact on the Crypto Market

During a particularly significant slump in the market following the collapse of Terra’s LUNA crypto token and other market instabilities, reports by CoinDesk introduced fears about Alameda Research and FTX, both run by Bankman-Fried, and whether they had undisclosed financial risks that might hold the companies back from meeting their financial obligations.

The ensuing chaos saw no forthcoming bailouts for Bankman-Fried as its rival, Binance, backed out of a buy-out deal following concerns of mishandled customer funds. The company was forced to file for bankruptcy. FTX also reported  “unauthorized transactions” where sources suspect about $477 million could have been stolen.

The fall of the third-largest crypto exchange of the time disturbed the balance of the crypto market, causing several major sell-offs from investors who no longer wanted to remain in the sector. The echoes of this crypto crash are still felt today but there are more recent reasons for why we see the crypto market down.

Hawkish Federal Reserve Tilt Due to Ongoing Inflation Woes

Inflation remains the word of the day as the Federal Reserve maintains its focus on bringing the inflation rates down in the U.S. Despite existing high interest rates, Fed Chair Jerome Powell addressed the need to further increase rates to try and bring inflation below 2%. This has prepared people for another possible rate hike before the end of the year.

“Restrictive monetary policy will likely play an increasingly important role. Getting inflation sustainably back down to 2% is expected to require a period of below-trend economic growth as well as some softening in labor market conditions.” Powell, Reuters

But how does this bring the crypto market down?

Rising U.S. Bond Yields and its Link with the Crypto Crash in September

High interest rates by the Federal Reserve have pushed the Treasury to higher level yields than it has seen in years. August witnessed the 10-year Treasury yield rising to 4.31%. For investors, this means safer investments and stable returns on their money. While this sounds like a good thing, it is likely one of the causes for the crypto market being down in September 2023. The cryptocurrency sector, which includes tokens like Bitcoin, has been hit by losses of over 10%, and it is not the only market suffering. High-growth investment funds, stocks, and the technology sector have also felt the change.

Data suggests that U.S. investors have been selling stocks and putting money into safer money market funds due to the rising yields. The fear of a possible recession also has investors holding their money close. The SEC’s decision-making has also been associated with pushing the crypto market’s downward spiral.

Crypto Market Down Due to SEC Delay on Spot Bitcoin ETF Application

The U.S. Securities and Exchange Commission (SEC) has further delayed its decision on six Bitcoin ETF applications, which has greatly worried investors. Among the applicants, Bitwise in turn withdrew its application as a result of the delay. Many have cited this reason for the shift in the status of cryptocurrency, and await the SEC’s decision on ETF as previous incidents have indicated a price rise following such announcements.

In August, a court mandate to the SEC to take another look at Grayscale’s ETF application was linked to a 5% increase in Bitcoin prices. The SEC appears cautious in its Bitcoin ETF approvals while the market hopes a decision in its favor will attract more investors to the market. The decision has been postponed to the end of October, however, experts report that further delay might be likely.

Optimistic cryptocurrency investors are hopeful that the market will stabilize following the SEC decisions, but the results appear unlikely to be announced anytime soon.

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The Rise and Doom of Robinhood’s Stock Price

In May 2022, Robinhood’s stock price took a hit when it was revealed that Sam Bankman-Fried’s Emergent Fidelity Technologies had purchased nearly 55.3 million shares of the company. However, this stake was short-lived as the federal government seized the shares following Bankman-Fried’s high-profile case of indictment. The Department of Justice had charged Bankman-Fried with multiple criminal counts, including wire fraud, conspiracy to commit money laundering and securities fraud.

The interface of Robinhood’s stock trading app. (Image Courtesy – Robinhood)

But Bankman-Fried’s legal troubles continued to impact Robinhood’s stock price. In a surprising turn of events, a judge issued a gag order against Bankman-Fried after prosecutors alleged that he was publicly discussing the case which was discrediting their star witness, Caroline Ellison – Bankman-Fried’s alleged former girlfriend and business partner. Furthermore, a federal judge ruled that a class-action lawsuit could proceed against Robinhood, stemming from its decision to halt trading in meme stocks like GameStop and AMC. These developments created uncertainty among investors, causing a decline in Robinhood’s stock price.

Despite the legal turmoil surrounding Bankman-Fried, Robinhood remained focused on its growth and stability. The company had been planning to buy back the seized shares for months, with the board authorizing the purchase in February. Finally, in a move that boosted investor confidence, an agreement with the U.S. Marshal Service to buy back Robinhood’s shares at $10.96 each, was finalized. This announcement led to a surge in Robinhood’s stock price, reaching a nearly one-month high of over $11.30 per share.

The Future of Robinhood’s Stock Price

Looking ahead, the regulatory landscape and investor sentiment will play significant roles in determining Robinhood’s stock price. As the brokerage company operates in the financial industry, it is subject to regulations that can impact its operations and user base. Regulatory actions, such as increased scrutiny on payment for order flow and potential changes to cryptocurrency regulations, could influence investor perception and, in turn, the stock price.

One factor that could potentially drive Robinhood’s stock price is its expansion into the cryptocurrency market. The company recently launched Robinhood’s crypto wallet, which allows users to buy, sell, and store various digital currencies. As the popularity of cryptocurrencies continues to rise, Robinhood’s crypto wallet is a foray that could attract new investors and positively impact its stock price.

Robinhood’s ability to form strategic partnerships and innovate its platform will also be crucial in determining its stock price. By collaborating with established financial institutions or introducing new features that enhance the user experience, the brokerage platform can differentiate itself from competitors and attract a broader customer base. Positive developments in this regard could lead to an increase in Robinhood’s stock price.

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What does the Bitcoin price dip mean for the latest cryptocurrency predictions? 

Why Is The Bitcoin Price Falling Down? 

Since its rigmarole inception, Bitcoin’s value has been an ever-swinging pendulum, always landing in the extremes of rallies and dips. The Bitcoin drop is about 50 percent down from its all-time high – crossing $69,000 in November 2021. 

Crypto enthusiasts faced blow after blow in 2022, which proved to be the worst year for cryptocurrency price predictions when the market faced the FTX collapse and the fallout of Terra Luna. 

Will Bitcoin’s value resurrect soon after a price dip? (Image Courtesy – Freepik)

After a long road to recovery, cryptocurrency prices felt the pressure again when Bitcoin’s value of $20,000 was a constant lopsided battle. The Bitcoin price dip was attributable to the US Securities and Exchange Commission’s (SEC) move to sue one of the leading cryptocurrency exchanges, Binance, and its founder Changpeng Zhao over illicit mishandling of consumer funds. 

After crossing a phenomenal threshold of the $31,000 mark, the Bitcoin price prediction seemed to have become victim to inflationary woes. The US Federal Reserve hiked the interest rates to tackle inflation and Bitcoin’s price dip resisted to the levels of $29,800.

Due to the inflammatory US banking crisis, cooling inflation, and weakening of the dollar index, cryptocurrency prices bounced back from their exile as the appetite for alternatives to conventional banking systems grew. So why did Bitcoin drop again?

Why Did Bitcoin Value Dip Again?

Grayscale Investments CEO Michael Sonnenshein had long proclaimed that converting its Bitcoin trust GBTC could unlock billions in a treasure chest for its holders. GBTC’s shares dramatically surged 17 percent on Tuesday before falling by 4 percent a day later. 

“There shouldn’t be any further grounds on which the SEC has been relying on to continue denying these types of products from coming to the market.”

Even though the SEC’s historical aversion to approving such products is discernible, the monumental win for Bitcoin Futures ETFs (exchange-traded fund) could not bore true to Bitcoin price predictions.

A penultimate reason is that the broader implications of the recent court ruling are still unfurling. But why is the Bitcoin value crashing right now? The final straw in the Bitcoin price dip was the US SEC’s delay until October to make a decision on all of the spot Bitcoin ETFs filed by BlackRock, Invesco Galaxy, WisdomTree, Wise Origin, Valkyrie Digital Assets, VanEck, and Bitwise. After already facing a price dip, Bitcoin crashed further deep by 4.1 percent – to $26,100. 

The hope to launch the first Bitcoin ETF had dampened. It can allow investors greater retail investment in the cryptocurrency space while eliminating the hassle of setting up a wallet or buying Bitcoin directly.  

Owing to the Federal Reserve’s tightening policies, many cryptocurrency price predictions are inclined to believe that the Bitcoin value can plunge to a staggering $8,000 in the current bearish market.

What Is The Price Prediction for Bitcoin in 2023? 

The Bitcoin value appears to be crashing in 2023 due to various factors. While the first spot Bitcoin ETF might not see the light of day until early 2024, there is a raging belief floating. Which is that, the crypto market could see an influx of investors if approval is underway, bolstering Bitcoin’s value to a supreme level.

While a spot ETF approval might sway cryptocurrency price predictions, financial gurus have fixated an event on Bitcoin’s price prediction. Experts believe that Bitcoin’s price dip is the action of pulling back a catapult. Bitcoin’s drop will transform into bullish when Bitcoin’s halving event takes place in 2024. The Bitcoin halving event, which takes place every four years, cuts down the rewards to its miners in half (3.125 BTC). This is contrived for bringing momentum in Bitcoin value as it helps in contracting supply.

The post Unprecedented Turn in Crypto Roller Coaster: Bitcoin Value Dips appeared first on Technowize.

(Image Courtesy – Freepik)

Technowize has compiled a comprehensive guide for all your Bitcoin ETF basics and queries. 

What is a Bitcoin ETF? Bitcoin Futures ETF Explained

In our introduction to Bitcoin ETF basics, let’s first delve into the pecuniary glossology of what is Bitcoin ETF (BTC Futures ETF). 

A Bitcoin Futures ETF, also known as a Bitcoin Exchange-Traded Fund, is an investment vehicle that allows investors to gain exposure to Bitcoin without actually owning the cryptocurrency. It is a financial instrument that tracks the price of Bitcoin futures contracts rather than the underlying asset itself. These ETFs are based on derivatives rather than the actual cryptocurrency.

A Bitcoin ETF can also be traded on traditional stock exchanges, just like any other stock, and its value fluctuates by the price movements of the Bitcoin futures contracts it holds. Investors can easily buy and sell shares of the Bitcoin ETF through their brokerage accounts, providing them with a convenient and regulated way to invest in Bitcoin.

How Does A Bitcoin Futures ETF Work?

A Bitcoin Futures ETF is managed by a firm that purchases and holds Bitcoin futures contracts on behalf of the ETF. Bitcoin futures are financial derivatives that allow investors to speculate on the future price of Bitcoin. These contracts obligate the buyer to purchase Bitcoin at a predetermined price and date, providing exposure to the cryptocurrency’s price movements without the need for physical ownership.

The price of Bitcoin Futures ETF is closely tied to the performance of the Bitcoin futures contracts it holds. As the price of Bitcoin fluctuates, the value of the ETF’s shares will rise or fall accordingly. Investors can buy and sell shares of the ETF on the stock exchange, providing them with liquidity and flexibility in managing their investments.

The approval of a Spot Bitcoin ETF will prove to be a game changer for the crypto industry, should the regulatory agencies allow it. A Spot Bitcoin ETF is designed to track the price of actual Bitcoin (spot price) by holding physical Bitcoin. 

What Are The Benefits Of Investing in a Bitcoin ETF?

Up next on our Bitcoin ETF basics, we’ll delve into the intrinsic worth of investing in BTC Futures ETF. Investing in a Bitcoin Futures ETF offers several benefits for both retail and institutional investors.  

1. Convenient Access To Bitcoin

One of the main advantages of a Bitcoin Futures ETF is the convenience it provides. Investors can gain exposure to Bitcoin without the need to set up a cryptocurrency wallet or navigate the complexities of crypto exchanges. Instead, they can simply buy and sell shares of the ETF through their brokerage accounts, making it accessible to a larger range of investors.

2. Regulated, Transparent Investment With Liquidity

Bitcoin Futures ETFs are regulated by the relevant financial authorities, providing investors with a level of oversight and protection. These ETFs must adhere to strict guidelines and disclosure requirements, ensuring transparency and accountability. This regulatory framework helps to build trust among investors who may be wary of the notoriety of the unregulated nature of the cryptocurrency market.

Bitcoin Futures ETFs trade on traditional stock exchanges, offering investors liquidity and flexibility. Shares of the ETF can be bought or sold at any time during market hours, giving investors control over their decisions.

3. Diversification And Risk Management

Investing in a Bitcoin Futures ETF allows for diversification within the cryptocurrency space. Rather than putting all their eggs in one basket with direct Bitcoin ownership, investors can spread their risk by holding shares of an ETF that tracks Bitcoin futures contracts. This diversification helps to mitigate the volatility and inherent risks associated with investing in a single cryptocurrency.

What Are The Risks Of Investing In A Bitcoin ETF?

While a Bitcoin Futures ETF offers attractive benefits, it is essential to understand the risks associated with it just as every investment option hoards.

1. Volatility of Bitcoin

Bitcoin is known for its extreme price volatility, and this volatility extends to Bitcoin Futures ETFs as well. The value of the ETF’s shares will rise and fall in line with Bitcoin’s price movements, which can be unpredictable. Investors must be prepared for the potential for substantial gains or losses in their investments.

2. Counterparty Risk

When investing in a Bitcoin Futures ETF, investors are exposed to counterparty risk. This risk arises from the fact that the ETF relies on third-party institutions to hold and manage the Bitcoin futures contracts. If these institutions face financial difficulties or fail to fulfill their obligations, it could hurt the ETF and its investors.

3. Regulatory And Legal Uncertainties

The regulatory landscape surrounding cryptocurrencies is still evolving regarding the legal status of Bitcoin. Changes in regulations or unfavorable legal rulings could affect the viability and performance of Bitcoin Futures ETFs. 

4. Lack Of Direct Ownership 

Investing in a Bitcoin Futures ETF means that investors do not have direct ownership or control over the underlying Bitcoin. They are reliant on the ETF and its managers to handle the purchase and management of Bitcoin futures contracts. This lack of direct ownership means that investors do not have the same privileges as those who hold Bitcoin in their own wallets.

Is A Bitcoin Futures ETF A Good Investment?

While it is a very subjective query, choosing BTC Futures ETF as an investment option depends on an individual’s risk tolerance, investment goals, and familiarity with the cryptocurrency market. Even though the Bitcoin Futures ETF offers an accessible and regulated way to gain exposure to the cryptocurrency itself, it is important to consider the risks involved. 

The post A Comprehensive Guide Into Bitcoin Futures ETF Basics appeared first on Technowize.