Ethereum creator named on TIME 100 list, Coinbase defends loan product, and El Salvador adopts Bitcoin as legal offer

We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and earn us a referral commission. For more information, see How we make money.

Ethereum creator Vitalik Buterin was named to the TIME 100 Most Influential People list of 2021 (NextAdvisor is a TIME partner). His nomination to the list highlights the growing cultural relevance of digital currency in 2021. Additionally, popular cryptocurrency exchange platform Coinbase says the SEC is pursuing legal action over its lending program in course, Coinbase Lend.

Meanwhile, El Salvador became the first country to legalize Bitcoin as a currency. The country also bought 400 Bitcoin – worth $ 20.9 million – the country’s president revealed last week.

Bitcoin has crossed $ 50,000 on several occasions over the past few weeks, after rising steadily since falling below $ 30,000 in July.

Here’s a look at the latest big crypto news:

  • Vitalik Buterin, the creator of the popular cryptocurrency Ethereum, was named this week to the TIME 100 list of the most influential people of 2021. Alexis Ohanian, former executive chairman of Reddit, wrote of Buterin: “What makes Vitalik so special is that he is a builder of builders. No one could have imagined all the uses of Ethereum, but it took one person’s idea to launch it. From there, a new world opened up and spawned new ways to harness blockchain technology.
  • Coinbase said the U.S. Securities and Exchanges Commission is threatening legal action against a new Coinbase product that allows users to earn interest on certain Coinbase assets, called Coinbase Lend. Coinbase said in a blog post last week he’s been engaged with the SEC for about six months on the project, and the lawsuit comes as an unexplained surprise. The SEC did not immediately respond to a request for comment. Other crypto lending platforms, like competitor Gemini, currently offer programs similar to what is offered in Coinbase Lend, as stated in the Coinbase statement.
  • President of El Salvador Nayib Bukele revealed that the country bought 400 Bitcoins worth around $ 20.9 million in a series of tweets recently. It comes after the Salvadoran government adopted Bitcoin as legal tender, meaning the currency can now be used in El Salvador for everything from shopping for groceries to pay taxes.

Bitcoin is the largest cryptocurrency by market cap and a good indicator of the crypto market in general, as other coins like Ethereum (and smaller altcoins) tend to follow its trends. Even though Bitcoin recently crossed the $ 50,000 threshold, this was a fairly normal rise for the crypto, which has also seen a drop in value of over 50% in recent months. This is not to say that investors should take fluctuations in both directions lightly, and it is also why investment experts recommend against making major changes to the investment based on these normal fluctuations.

The cryptocurrency space is still very new, and everything from innovation to regulation can have a disproportionate impact on investors. Here’s how you can invest smartly, regardless of what’s in the news or Bitcoin’s price fluctuations.

How investors should manage volatility

The volatility of cryptocurrencies is nothing new, and you should be comfortable with this if you decide to invest.

Volatility can be attributed to an “immature market,” says Ollie leech, learn the editor at Coindesk, a cryptocurrency medium. All of a celebrity tweet new federal regulations can cause prices to skyrocket.

“If Elon Musk puts the hashtag Bitcoin in his Twitter bio, it increases Bitcoin by 10%,” says Leech.

This unpredictability is part of the reason investment experts warn against investing huge amounts of your portfolio in a risky asset like crypto. Many recommend keeping your crypto holdings below 5% of your total portfolio.

For new investors, the daily fluctuations can seem frightening. But if you’ve invested with a buy and hold strategy, there’s nothing to worry about declines, says Humphrey Yang, the personal finance expert behind Humphrey speaks. Yang recommends a simple solution: don’t look at your investment.

“Don’t check it. It is the best thing you can do. If you let your emotions get in too much, you risk selling at the wrong time, making the wrong decision, ”Yang explains.

This is the traditional ‘set it and forget it’ advice that many traditional long-term investors follow. If you can’t get on board and the extreme lows continue to worry you, you may have too much to invest in your cryptocurrency investments.

“The most important thing any investor can do, whether investing in Bitcoin or in stocks, is not only to have a plan in place, but also to have a plan that they can stick to. “, Explain Douglas bonparth, a CFP and the president of Bone Fide Wealth. “While buying the dip can be appealing, especially with an asset that you really love, it might not always be the best idea right now.”

Other recent crypto news

  • The SEC recently BitConnect billed crypto lending platform and its senior executives for defrauding individual investors in 2017-2018. The SEC alleges Bitconnect defrauded retail investors of $ 2 billion through an offering of fraudulent digital assets. “We will aggressively prosecute and hold accountable those who engage in wrongdoing in the area of ​​digital assets,” said Lara Shalov Mehraban, associate regional director of the SEC’s regional office in New York, in a statement. declaration. Efforts to reach Bitconnect and the individual defendants named in the SEC complaint were unsuccessful.
  • Cuba’s central bank will establish regulations for cryptocurrencies, the Official Gazette recently reported. Its economic interest in accepting crypto payments echoes other countries around the world. Global crypto adoption has skyrocketed in the past year, up 881%, according to Chainalysis data, including countries from Vietnam to Pakistan and, recently, El Salvador.
  • Visa is the latest company to take an interest in non-fungible tokens, or NFTs. The central for credit cards and payments recently revealed that it had purchased a CryptoPunk NFT worth almost $ 150,000. The purchase stems from a goal of “helping customers and partners participate,” Cuy Sheffield, Cuy Sheffield, Head of Crypto at Visa, said in a blog postbecause the company believes NFTs will play “an important role in the future of retail, social media, entertainment and commerce.”

Read more:


Source link

About Johnnie Hill

Johnnie Hill

Check Also

World Fight League announces founding, publishes 50/50 revenue sharing plan

If the World Fight League can take off, it could change the nature of the …