Regulation or Restriction? EU sets new rules for cryptos
Welcome to the Daily Tribune Friday, January 19, 2024 ☕️
Hello Cointribe! 🚀
Today is Friday, January 19, 2024, and like every day from Tuesday to Saturday, we'll summarize the news of the past 24 hours that shouldn't be missed!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Cloudy ☁️
24-hour crypto summary ! ⏱️
🌐 Bitcoin: A digital mirage? Jamie Dimon and Peter Schiff skeptical
The debate over the true value of Bitcoin (BTC) is intensifying in the financial world, with personalities like Jamie Dimon, CEO of JPMorgan Chase, and Peter Schiff, a notorious Bitcoin critic, expressing their skepticism. Dimon, at the World Economic Forum in Davos, compared Bitcoin to a \"pet rock,\" casting doubt on any intrinsic value and highlighting the risks of illicit use. Schiff reinforces this position by asserting that, unlike gold, Bitcoin lacks tangible substance and relies solely on the consensus of its user community, a trust considered volatile and ephemeral. The extreme volatility of Bitcoin is often cited as proof of its intrinsic fragility, questioning its reliability as a store of value.
Despite these criticisms, Bitcoin continues on its way. Its decentralized nature and lack of regulation are now seen as assets, offering a transparent and democratic alternative to traditional monetary systems. The recent approval of Bitcoin Spot ETFs on January 10, 2024, marked a new threshold of legitimacy and institutional acceptance for Bitcoin.
The criticisms of Jamie Dimon and Peter Schiff on Bitcoin reflect a central debate in digital finance: the intrinsic value of cryptocurrencies. Their skepticism highlights a fundamental divergence between traditional assets, like gold, and cryptocurrencies. The lack of tangible value of Bitcoin, according to these critics, makes it vulnerable to volatility and illicit use. However, this perspective overlooks the aspect of trust and community in determining value. Bitcoin, as a financial innovation, relies on the trust of its community and the recognition of its value by the markets, positioning it as a major player in the evolution of digital finance despite its lack of physical value.
🇪🇺 EU strengthens surveillance of crypto transactions over 1000 euros
The European Union (EU) has recently taken measures to increase the transparency of crypto activities in response to growing concerns about money laundering. A partnership between the European Council and the European Parliament aims to strengthen due diligence requirements for companies operating in the cryptocurrency sector. These new rules specifically target transactions exceeding 1,000 euros (approximately 1,090 dollars), marking a significant regulatory advance in the fight against illicit activities. Crypto companies will now be required to demonstrate increased diligence towards their customers, particularly for transactions exceeding this threshold. The goal is to mitigate the risks associated with financial transactions in the field of cryptocurrencies and increase transparency.
Additionally, the agreement introduces specific measures for transactions involving self-hosted wallets, with the aim of enhancing security and reducing the likelihood of illicit activities. These standards, although not yet applicable, depend on the formal approval of the European Parliament and the Council. Once adopted and published in the Official Journal of the European Union, these rules will fully apply to the cryptocurrency sector. This development is part of a global trend of regulators closely monitoring the functioning of the crypto sector. Recently, the European Banking Authority expanded its guidelines on money laundering and terrorism financing risks to the crypto industry, demonstrating a collective effort to address vulnerabilities and illicit activities prevalent in the cryptocurrency ecosystem.
The EU's initiative to impose increased due diligence for crypto transactions over 1000 euros reflects a global trend towards increased surveillance of the crypto sector. However, it could also limit certain aspects of freedom and anonymity that have been pillars of the appeal of cryptocurrencies.
🚫 Trump against CBDCs: A promise of financial freedom
Donald Trump, the former President of the United States and potential candidate for the 2024 US presidential elections, has taken a firm stance against the creation of central bank digital currencies (CBDC) in the United States. His statement, made during a campaign in Portsmouth, New Hampshire, promises never to allow the creation of a CBDC, stating that it would give the federal government absolute control over citizens' money. This position aligns with his previous investments in cryptocurrencies, including Ethereum (ETH), and his collection of NFTs, indicating familiarity with and interest in Web 3.0 technologies. Trump has been warmly applauded for his promise to eliminate CBDCs, a position that seems to resonate with his audience and reflects a growing trend among American politicians.
This anti-CBDC trend is not exclusive to Trump. Other influential political figures, such as Ron DeSantis and Vivek Ramaswamy, have also expressed opposition to CBDCs, favoring cryptocurrencies like Bitcoin (BTC) instead. On the Democratic side, figures like J.F. Kennedy Jr. are also passionate advocates of Bitcoin. These positions indicate a growing interest in cryptocurrencies in the American political landscape, with candidates from both major parties incorporating cryptos into their agendas. Federal Reserve Governor Michelle Bowman has also expressed doubts about the benefits of CBDCs.
Donald Trump's opposition to CBDCs goes beyond politics; it symbolizes an ideological struggle for monetary independence in the digital age and highlights the debate over financial sovereignty in an increasingly decentralized world.
💥 Ethereum challenges Bitcoin with a $1 billion investment
Ethereum (ETH) has recently benefited from nearly a billion dollars in investment. This advancement has not only disrupted the market charts but has also shaken investor convictions. Since the approval of the Bitcoin ETF, Ethereum has demonstrated remarkable performance, surpassing Bitcoin and consolidating its price above $2,500. This rise, despite speculation about profit-taking, reflects investor confidence in Ethereum. Additionally, a massive transfer of ETH to long-term storage has reduced the available supply on the markets, contributing to price increases and indicating undeniable trust in Ethereum's future.
The current market dynamics favor Ethereum, with growing demand and decreasing supply. Order books indicate that buy orders far exceed sell orders, creating an ideal scenario for cryptocurrency enthusiasts. Experts predict that the price of Ethereum could reach $2,700 in the near future, a forecast based on solid data and meticulous analysis. However, Ethereum still needs to surpass a crucial resistance level at $2,612 to confirm this bullish trend. The near future will be crucial to see if Ethereum can maintain its dominant position or if Bitcoin, like a phoenix, will rise from the ashes.
The increase in demand and the reduction of ETH supply in the market indicate growing investor confidence in its long-term potential. This could also signify a shift in investor perception, as Ethereum is now seen as a store of value.
Crypto of the day: Sleepless AI (AI)
Sleepless AI positions itself as an innovative gaming platform, merging artificial intelligence with blockchain technology. This combination offers an immersive and emotionally engaging gaming experience, revolutionizing the gaming industry. As a crypto native, Sleepless AI aims to reward players for their engagement and performance in games, creating an ecosystem where gaming and rewards are closely linked.
Holders of this cryptocurrency benefit from unique advantages such as access to exclusive features in games and participation in special events. Sleepless AI can be used for transactions within the platform, offering fluidity and seamless integration between gaming, AI, and blockchain.
Recent Performance
Current price: Approximately €0.9805
Percentage increase/decrease: -7.78%
Market capitalization: Approximately €127,471,425
CoinMarketCap rank: #287
Maximizing Passive Income with Bitcoin: Strategies and Real-Life Examples
For Bitcoin holders, there are several strategies to generate passive income, each offering unique opportunities suited to different investor profiles.
Bitcoin Interest Accounts: By depositing Bitcoins in a crypto savings account, you can earn annual interest. But be careful! Earning interest on your Bitcoins via crypto savings accounts is an attractive strategy but requires careful platform selection. Recent financial issues with BlockFi highlight the associated risks. Therefore, it's essential to check the stability, reputation, and security of any platform before investing. Opt for reliable and reputable providers to benefit from favorable interest rates while minimizing risks.
Bitcoin Lending: On platforms like Nexo or Compound, Bitcoin holders can lend their assets and earn interest. For example, by lending Bitcoin on Compound, users can earn real-time interest with the flexibility to withdraw their funds at any time.
Bitcoin Mining: Although requiring an initial investment in hardware, Bitcoin mining can be profitable. Miners use ASICs (Application-Specific Integrated Circuits) to solve cryptographic puzzles and earn Bitcoins. Companies like Bitmain offer advanced mining equipment for those wishing to engage in this activity.
Bitcoin Trading: Trading on platforms like Binance or Coinbase allows you to profit from price fluctuations. You can buy Bitcoin at a low price and sell it when it rises, or use futures contracts to bet on price declines.
Bitcoin Liquidity Pools: By participating in liquidity pools on decentralized exchanges like Uniswap or SushiSwap, you can also earn a share of transaction fees. For example, by providing Bitcoin and USDT to a pool on Uniswap, you earn fees proportionate to your share in the pool.
These strategies offer diverse ways to generate passive income with Bitcoin, but it's essential to remember that each method carries specific risks. Investors should conduct thorough research and, if necessary, consult financial experts before engaging in these activities.
