Gary Gensler, a friend who wants the best for you?
Welcome to the Daily Tribune Friday, February 16, 2024 ☕️
Hello Cointribe! 🚀
Today is Friday, February 16, 2024, and like every day from Tuesday to Saturday, we will summarize the news of the last 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Sunny ☀️
24-hour crypto summary ! ⏱️
🚀 2024, the turning point for crypto?
Raoul Pal, former Goldman Sachs and current CEO of Real Vision, highlights two major catalysts that could propel cryptocurrencies in 2024: global stimulus plans and inflation. According to him, these factors could play a crucial role in the dynamics of the crypto market, especially due to the upcoming elections in several major economies such as the United States, China, and Europe. Stimulus plans, aiming to stimulate economic growth through increased public spending and credit facilitation, could lead to a significant rise in inflation, according to Pal. This would result in devaluing traditional currencies, thus offering a favorable environment for the appreciation of cryptocurrencies.
Pal emphasizes the importance of crypto as a hedge against inflation, thanks to its limited supply and independence from government manipulation. He illustrates his point by using the example of Bitcoin, whose value has significantly increased in recent years, going from a few dollars to several thousands, mainly due to its scarcity and growing acceptance as a universal currency. For Pal, cryptocurrencies not only represent a promising investment in the face of inflation, but also embody the future of finance, offering more freedom, security, and transparency to users.
Raoul Pal's optimism for 2024 is based on macroeconomic catalysts such as stimulus plans and inflation, which could favor cryptocurrencies as alternatives to devalued fiat currencies. This perspective comes in a context where the search for safe havens becomes crucial for investors. However, the actual impact will depend on the ability of cryptocurrencies to maintain their value proposition as a store of value and medium of exchange in an unstable economic environment.
🗡️ Gary Gensler: Between approval and criticism of Bitcoin
Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), recently gave the green light for Bitcoin Spot ETFs, marking a step towards the widespread adoption of cryptocurrency. However, despite this approval, Gensler has expressed reservations about the legitimacy of Bitcoin, distinguishing it from fiat currencies such as the US dollar. In an interview with CNBC on January 14, 2024, he emphasized that unlike traditional currencies backed by central banks and regional monetary policies, Bitcoin does not have such institutional foundations. According to him, this difference creates a "very real economic difference" between Bitcoin and fiat currencies.
Gensler also raised questions about the decentralization of Bitcoin, suggesting that, contrary to what some of its supporters claim, Bitcoin is not fully decentralized. He believes that finance tends to centralize, and Bitcoin is no exception, with only a small group of cryptocurrencies dominating the market. Furthermore, he downplayed the importance of record-keeping through the blockchain for traditional investors, for whom the value and reliability of the underlying asset are paramount. Despite the SEC's approval of Bitcoin Spot ETFs, Gensler clarified that this does not constitute a promotion of cryptocurrency, but rather aims to regulate the exchanges, without issuing a value judgment on Bitcoin.
The approval of Bitcoin Spot ETFs marks a turning point for institutional adoption, but Gensler's reservations about the legitimacy and decentralization of Bitcoin reflect persistent regulatory challenges. This duality highlights the complexity of regulating a disruptive technology while recognizing its potential for financial innovation.
📈 A Warning Signal for the Crypto Market!
The Crypto Fear and Greed Index, a barometer of sentiment in the cryptocurrency market, recently reached a level of "extreme greed," the highest since November 2021, when Bitcoin set a new record at $69,000. This peak at 79 on February 12 reflects investors' overflowing optimism, fueled by the remarkable performance of Bitcoin, which has surpassed $50,000 with a 13% increase since the beginning of the year. The introduction of the first Bitcoin Spot ETFs in the United States has also played a crucial role in this rise of greed, attracting financial giants such as BlackRock and Fidelity and generating daily demand equivalent to 2,000 BTC.
However, this index also serves as a warning signal, indicating that the market may be overvalued and susceptible to an imminent correction. Despite the current optimism, the extreme volatility of the crypto market means that the trend can quickly reverse. While the greed index is useful for measuring general sentiment, it should not be the sole factor considered in investment decisions. Investors are advised to remain cautious and consider a balanced approach, taking into account technical and fundamental aspects before making decisions.
Although this enthusiasm may stimulate short-term capital inflows and asset valuation, caution should be exercised in the face of the risk of a rapid market reversal.
🌐 Ethereum, the engine of DeFi TVL: A spectacular rise
The Total Value Locked (TVL) in decentralized finance (DeFi) has reached unprecedented levels in the past 20 months, surpassing $69 billion, thanks to the significant impact of Ethereum on this ecosystem. This remarkable increase in TVL is the result of a 37% increase recorded by Ethereum last month, bringing its contribution to around $41 billion. This rise is attributable to the influence of innovative protocols like EigenLayer, which have stimulated massive inflows into the Ethereum network. At the same time, Ether (ETH), the native cryptocurrency of Ethereum, has experienced a price surge, fueled by bullish prospects and the announcement of the launch of an Ethereum Spot ETF by Franklin Templeton, further reinforcing optimism in the market.
In addition to Ethereum, other blockchains like Solana and Arbitrum have also played a key role in the increase of DeFi TVL, attracting significant attention and investment. Solana, in particular, has seen its TVL soar to $1.90 billion, marking its highest value since mid-2022, thanks to the momentum of platforms such as Jupiter, Kamino, and Jito. Arbitrum, a layer 2 scaling solution for Ethereum, has also recorded a record TVL of $2.9 billion, thanks to the contribution of protocols like GMX, Hyperliquid, and Camelot. Even the Bitcoin network has contributed to this trend, with a surprising TVL of $927.5 million, highlighting the shift towards a multi-chain paradigm in DeFi and the increasing importance of interoperability within the blockchain ecosystem.
The increase in TVL in DeFi, driven by Ethereum, Solana, and Arbitrum, demonstrates ongoing innovation and growing adoption of blockchain solutions. This trend highlights the evolution towards a more interoperable and diverse DeFi ecosystem capable of attracting substantial capital. Ethereum's participation as a pillar in this growth reflects its central position in the DeFi ecosystem, while the increasing involvement of competing blockchains and Bitcoin indicates an expansion towards a multi-chain decentralized finance. This dynamic could redefine traditional financial services, offering more accessibility, transparency, and efficiency.
Crypto of the day: Arweave (AR)
Arweave distinguishes itself with its unique approach to long-term data storage, offering a permanent and decentralized solution for backing up information on the internet. Its blockchain, based on an innovative consensus mechanism called "Proof of Access" ensures not only the security and durability of data but also its accessibility over time.
The native cryptocurrency, AR, is primarily used to reward miners for storing data and to pay transaction fees. The initial distribution of AR was done through a token sale, emphasizing fair allocation. AR holders benefit from the opportunity to interact with the Arweave ecosystem, including storing their own data or participating in network security.
Recent Performance
Current Price: €11.00
Percentage Increase/Decrease: 13.19% (1-day increase)
Market Cap: €720,284,430
Rank on CoinMarketCap: 91
Private Keys, Public Keys, and Addresses
In the fascinating world of Bitcoin, understanding the role and functioning of private keys, public keys, and addresses is essential for any cryptocurrency enthusiast. These elements form the core of security and ownership in the Bitcoin ecosystem, enabling secure and anonymous transactions on the blockchain. A private key, like an ultra-secure password, is what gives you control over your bitcoins, while the public key and the derived address are used to receive funds. The relationship between these keys ensures the integrity and verifiability of transactions without compromising the security of the private key. With the rise of exchanges and digital wallets, managing these keys becomes more accessible, but the responsibility of securing one's private key remains paramount.
Private Keys: The Guardian of Your Cryptos
The private key in Bitcoin is equivalent to a physical key to a safe, but in the digital world. It is unique to each user and must remain secret at all costs. The private key is what allows you to sign transactions and prove that you are the owner of the bitcoins you want to spend. Losing your private key means the irreversible loss of your cryptocurrencies, while revealing it can allow someone else to spend them.
Public Keys: The Identity in the Crypto World
The public key is derived from the private key using a complex mathematical algorithm. In fact, it is practically impossible to deduce the private key from the public key. It serves as an identifier in the blockchain world, allowing other users to send bitcoins to you. The public key is also used to verify that the signature on a transaction matches the private key without revealing the private key itself.
Bitcoin Addresses: The Convergence Point
Bitcoin addresses, generated from the public key, are what you share with others to receive funds. They act like an email for your Bitcoin transactions, but with a much higher level of security. Each address is unique and can be used to trace the transaction history on the blockchain, offering complete transparency while preserving user anonymity by using new addresses for each transaction.
Understanding private keys, public keys, and addresses is fundamental for anyone wishing to use Bitcoin securely. These elements form the basis of security and ownership in the cryptocurrency ecosystem, enabling secure, anonymous, and irreversible transactions on the blockchain. Careful management of these keys is essential to protect your digital assets from loss and theft.