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(Editing by James Rubin)
Good morning. This is what happened:
Market trend: Bitcoin briefly exceeded $52,000, and its supply outside of exchanges reached a record high.
Views of the technical staff (Editor’s note): Technician’s Take is on vacation. Instead, the Asian pioneer is publishing a column by CoinDesk Chief Content Officer Michael Casey.
Watch the latest episodes of CoinDesk TV Insightful interviews and analysis of leaders in the encryption industry.
price
Bitcoin (Bitcoin): USD 50,866 +.09%
Ether (Ethereum): US$4,043-0.8%
market
S&P 500 Index: US$4,791 + 1.38%
Dow: 36,302 USD + 0.9%
Nasdaq: $15,871 + 1.39%
Gold: US$1,811 +0.2%
Market trend
BitcoinThe oldest cryptocurrency remained at the $51,000 level after a brief break of $52,000 during the U.S. trading session on Monday. At the time of launch, Bitcoin was hovering below $51,000. Ether is slightly above the $4,000 mark.
However, trading activity is mostly calm, as the trading volume of the cryptocurrency, which ranks first by market capitalization on major centralized exchanges, is only slightly higher than that of Sunday.As Bitcoin rebounds slightly, U.S. stocks are also rising Rose In a week traditionally marked by light but bullish trading.
At the same time, according to data from the blockchain data company Glassnode, as the market enters the end of the year, the so-called sovereign supply of bitcoin-the total amount of coins held outside foreign exchange reserves-has reached a record high.
Bitcoin’s sovereign supply has grown because the ownership shares of its long-term holders have increased by 4.8% in the past year, reaching 74.8% of all sovereign supplies. Glassnode famous In its December 27 newsletter. Bitcoin ownership by short-term holders has fallen from 28% in January last year to 25.2% now.
Glassnode wrote: “This kind of on-chain behavior is more common during the Bitcoin bear market. With hindsight, it is actually a long-term redistribution of coins from weaker hands to stronger, longer-term beliefs.”
Pillar
5 ways to reimagine money in 2021: Michael Casey looks back on a year of turbulent money. (Author: CoinDesk Chief Content Officer Michael Casey)
This is the year of encryption!
For this reason, in the first of the two holiday editions of this column, we build this extraordinary year based on how to reimagine the currency of 2021 in different ways. We researched five topics and provided links to past newsletters and podcasts.
You are reading the currency reimagined, and every week you examine the technological, economic, and social events and trends that redefine our relationship with currency and change the global financial system.Subscribe to get the full newsletter here.
In 2021, money becomes…
A meme
Whether it’s the enthusiasm for Dogecoin, the surge in interest in non-fungible tokens, or the ability of Wall Street to bet on the ability to set prices for “memetic stocks” such as GameStop, we have all witnessed a strange fusion of finance and popular culture. Although people feel incredible in traditional finance and Bitcoin circles, we at Money Reimagined feel that something has been proven to be correct.This trend underscores our communication and podcast: The monetary system needs a common belief in its common value.This era of reimagining money is bound to see the deployment of art, portraits, stories and other cultural products Reinforcement The sense of belonging and belief among the communities formed around these new systems.
A politicized idea
In the past century, no one really questioned the nature and structure of our monetary system. Currency is issued by the government and operated by banks. End of the story. With the advent of Bitcoin, suddenly there is a new way of thinking about things. But for most of its existence, the political class thought it could simply ignore it.
In 2021, that kind of happy ignorance suddenly becomes impossible.We saw this for the first time debate In the infrastructure bill, the most important thing is in the U.S. Senate, when the controversial tax reporting clause on cryptocurrency sales had an ironic effect, indicating that cryptocurrency had arrived in Washington. The fact that lawmakers want to tax encryption shows that it is considered a long-term prospect and a reliable source of taxation. Equally important, although the crypto lobby ultimately failed to force changes to the stricter parts of the clause, it showed that its influence on Capitol Hill has grown significantly. It formed a large coalition of bipartisan parliamentarians to support its preferred amendments and indicated that it would become a force.
Around the same time, discussions surrounding stablecoins as an alternative to central bank digital currencies began to appreciate in Washington.Randal Quarles had served as Fed Vice Chairman until he resigned from that position in November, and he even argued Stablecoin The U.S. can be strengthened overseas by leveraging private sector innovations not available to the central bank itself. This laid the foundation for the heated debate on stablecoins throughout the summer and autumn, especially around the issue of whether issuers of stablecoins such as USDC and PAX should be required to obtain bank licenses.
Finally, in December, the encryption hearing in the House of Representatives revealed something we could not predict a year ago: some very sensible questions raised by lawmakers. It seems that many people in Congress have finally completed their encryption assignments.We have Nieder, CoinDesk’s global policy and regulation editor-in-chief, discuss it on the podcast.
Issues of geopolitical significance
Even though it took some time for federal politicians to realize the political consequences of cryptocurrencies and the central bank-led alternatives that they helped spawn, the rapid development of the latter in China has attracted the attention of academics and think tanks. They recognized that the digital currency electronic payment (DCEP) system deployed in Beijing has undergone extensive testing in 2021 and may undermine the U.S. dominance in the global financial system.
Few people have seen that China will also lose its dominant position in Bitcoin mining for many years by cracking down on such businesses nationwide. This has led to a significant drop in the capacity of the Bitcoin network because about half of the global hash rate or computing power is shut down.But this computing power quickly moved to other places, especially the United States Until October, The United States has become the largest mining location in the world. People are already talking about what the increasing role of the United States in decentralized currencies means to the United States as China implements its centralized currency solutions in the world.
The speculative power of social innovation
2020, speculation boom Decentralized finance Promoting such a strong investment capital and innovation flywheel, it helped build Our look back Twelve months before the first anniversary of the “Money Reimagined” podcast last October. In 2021, as speculation about non-fungible tokens has triggered a series of ideas about the future of media, art, and collectibles, which in turn continues to attract more and more funds into the field, this phenomenon has been elevated to A new level. It all feels a lot like a bubble, but it’s clear that in this case, speculation is a function, not a mistake, a powerful driver of change-even if we don’t yet know that this change will eventually bring us to where.
Dinner dialogue
Perhaps the biggest theme of 2021 is the development of mainstream cryptocurrency in terms of public awareness.along with NFT Zeitgeist, The soaring coin price, Washington is more interested in the facts about it and the idea that revolves around Bitcoin bet A failed currency system, cryptocurrencies are suddenly everywhere. Everyone wants to understand it. At the same time, many people who understand it, and many people who don’t understand it, have formed a strong view of the pros and cons of encryption. So when you sit down for a festive dinner with your family, please be aware that you may be asked to explain yourself.
happy Holidays!
Important event
8 am Hong Kong time / 12 am Singapore time (12 am UTC): Spanish retail sales (November year-on-year)
1:55 HKT/SGT (5:55 am UTC): US Red Book Index (October year-on-year)
2 pm HKT/SGT (6 am UTC) US House Price Index (October Monthly)
CoinDesk TV
If you missed it, here is the latest episode “The first one to move” exist CoinDesk TV:
Grayscale’s 2022 outlook, the transformation of Bitcoin demographics, year-end taxes
“Forerunners” are involved in the crypto market and year-end taxation. Rayhaneh Sharif-Askary, Grayscale’s head of investor relations, and Mark Steber, chief tax information officer of tax company Jackson Hewitt, also participated in the show’s discussions. In addition, the “first mover” looks at the changes in Bitcoin demographics and its impact on the crypto market in 2022. Grayscale is owned by Digital Currency Group, which is also the parent company of CoinDesk.
The latest headlines
India’s ruling coalition group takes a position on crypto regulation: Analysts said the organization is unlikely to have much influence on government policy.
Cardano founder Charles Hoskinson (Charles Hoskinson) formulated a plan for 2022: Hoskinson said that the creation of Cardano’s formal open source project structure and other development work are in the pipeline.
Binance was approved by Bahrain to become a crypto asset service provider and registered in Canada: Bahrain’s “in principle” approval still requires cryptocurrency exchanges to complete the process of applying for a license from the central bank.
Decentraland, the luxury market UNXD will host Metaverse Fashion Week: Decentraland and UNXD are calling on fashionistas to be ready to showcase their virtual collections in Metaverse.
Longer reading time
PwC Henri Arslanian’s 10 predictions for 2022: El salvador. Meta universe. Web 3 Catalyst. The future of Ethereum.
Today’s encryption interpreter: What is a decentralized application?
Other voices: Who will encrypt? (Mother Jones)
Speak and hear
“The decentralized application (dapp) ecosystem in alternative smart contract blockchains such as Solana and Binance Smart Chain will continue to grow because bridges increase cross-chain access to liquidity, and developer platforms can more easily access other Start the dapp on the chain.” (Paul Veradittakit, Pantera Capital Partner of CoinDesk) … “Many large private banks believe that Bitcoin is not an important asset (not selling crypto-related products may not help!). But we should expect most people to do it 180 times and launch crypto products in 2022.” (Henri Arslanian, Cryptocurrency Leader of PricewaterhouseCoopers CoinDesk) … “When you ask for vaccinations, this is another motivation to get more people vaccinated. If you want to do this on domestic flights, I think this is something that should be seriously considered. (The New York Times quoted Dr. Anthony Fauci) … “The speed at which the economy has rebounded from the great recession of 2020 surprised many forecasters. A few months ago, the combined output of the 38 major wealthy OECD countries may have exceeded their pre-crisis levels. The whole The club’s average unemployment rate was 5.7%, in line with the post-war average.” (economist)…”Most of artificial intelligence is about compressing reality into a small vector space, just like a reverse video game.” (Tesla founder Elon Musk)
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