Edward Snowden, a privacy advocate and former National Security Agency (NSA) contractor and whistleblower, says bitcoin “is the most significant monetary advance since the creation of coinage.” He views his statement as “unpopular but true.” Edward Snowden’s ‘Unpopular but True’ Bitcoin Statement Edward Snowden, a privacy advocate, posted about bitcoin on social media platform X […]
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Despite a larger portion of Bitcoin’s total supply being “inactive” for over a year, recent data revealed impressive growth in investors holding on to their BTCs during the rally.
On Wednesday, November 15, a crypto analyst known as Root took to his official X (formerly Twitter) handle to share valuable data concerning Bitcoin. A yearly BTC supply chart also accompanied the analyst’s X post.
According to the analyst, a significant part of BTC’s total supply has been inactive for over a year. In addition, the inactive supply has recently reached an all-time high (ATH) of 69%. The analyst stated:
69%, an all-time high, of the #Bitcoin supply, hasn’t been active for over a year. Root stated.
This supply for one year or more is only a portion of a bigger group known as long-term holders (LTHs). One of the two major groups of Bitcoin investors comprises these LTHs, while the other is known as short-term holders (STHs).
Investors holding coins longer than five to six months are classified as long-term holders. Meanwhile, those who hold coins no more than this given time are classified as short-time holders.
In addition, even among LTHs, those who have passed the one-year mark would be considered “reliable gems.” However, this variety currently comprises the majority of the asset’s supply. This seems to have also increased significantly lately, as the graph indicates.
According to statistics, holders are less likely to switch their coins any time the longer they are kept inactive. Due to this, the LTHs tend to be the most devoted segment of the market during periods of Bitcoin’s upsides or downsides.
BTC has recently formed a double top pattern close to the $38,000 level, causing the token’s drop. The price has since fallen below the 100 hourly Simple moving average and the $36,500 mark.
However, it seems the bulls emerged at the $36,500 mark, giving the token momentum to sustain between $36,000 and $36,500. Following the formation of a low at $36,517, the price is currently correcting losses.
So far, there are no claims that the increase in Bitcoin HODLing has imparted the price growth of BTC. Nonetheless, this recent development sparks potential for the crypto asset over time if this continues.
Currently, the price of BTC is at $36,422 as of the time of writing, indicating a 2.94% decline over the past 24 hours. The asset’s 24-hour trading volume has also experienced an 8% drop, valued at $26,113,638,790, according to CoinMarketCap.
Featured image by iShock, chart by Tradingview.com
The European Securities and Markets Authority (ESMA) — the European Union’s financial markets supervisory authority — released an article on decentralized finance (DeFi) and the risks it poses to the EU market on Oct. 11.
In a 22-page report, the ESMA admits the promised benefits of DeFi, such as greater financial inclusion, the development of innovative financial products, and the enhancement of financial transactions’ speed, security and costs.
However, the paper also highlights the “significant risks” of DeFi. According to the ESMA, the first is liquidity risk tied to the highly speculative and volatile nature of many crypto assets. The authority compares the 30-day volatility of Bitcoin (BTC) and Ether (ETH) with the Euro Stoxx 50 index, with the cryptocurrencies being, on average, 3.6 and 4.7 times higher than the stock index.
The ESMA doesn’t believe that DeFi manages to avoid counterparty risk, even if, in theory, it should be lower or even nonexistent due to smart contracts and atomicity. However, smart contracts are not immune to errors or flaws.
Related: EU mulls more restrictive regulations for large AI models: Report
DeFi is especially vulnerable to scams and illicit activities as it lacks Know Your Customer (KYC) protocols, according to the ESMA. Another important source of risk for DeFi users, as specified in the report, is the lack of an identifiable responsible party and the absence of a recourse mechanism.
However, currently, DeFi and crypto, in general, do not represent “meaningful risks” to financial stability, the report concludes. That is because of their relatively small size and limited interconnectedness between crypto and traditional financial markets.
The ESMA pays close attention to the crypto market, releasing its second consultative paper on the Markets in Crypto-Assets regulations on Oct. 5. In the 307-page document, the regulator suggested allowing crypto asset providers to store transaction data in “the format they consider most appropriate,” if they can convert it into a specified format should the authorities request it.
Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis
My family is dealing with a significant shock. My brother, my sister and I have just found out that our elderly father secretly married his caregiver five years ago and never told us. We have a thriving family-owned business, and our father’s wealth is in the hundreds of millions of dollars.
This caregiver is 40 years younger than my father. Her visa was already invalid, as she never went to school and she stayed in the United States well beyond when she was scheduled to leave. She has lived with my father for eight years, five of them while married.
My father has now told us he has a serious degenerative disease, and we aren’t sure how long he has to live.
Now that we know he’s married, it’s come to our attention that the state we live in has a statute that says if a spouse dies, the partner can choose either to accept the conditions of a will or get 30% of the spouse’s estate. If they divorce, his wife would get about 30% of his estate, which is worth $80 million.
“‘We are all comfortable financially, but we are very upset that this woman should get so much money for only eight years together.’”
We’ve always had a good relationship with our father, and we all live within a few miles of one another. We get together for many family events and always include my father’s wife. We are all comfortable financially, but we are very upset that this woman should get so much money for only eight years together.
To complicate things, my father now is very worried that she might harm him to get money. We don’t think she would, but my father refuses to leave his house, and her lawyer has advised her not to leave. We’ve offered to rent or buy him another house or condo, but he refuses to leave. We’ve hired round-the-clock caregivers, but his wife makes it difficult for them to tend to my father.
There was a prenuptial agreement, but our lawyers said it was poorly written and would never hold up in court. Can you give us direction on where to turn to reduce this woman’s part of the estate? We understand she will probably receive millions of dollars, but we honestly don’t believe she deserves 30% of everything.
Reluctant Stepdaughter in Florida
There are many moving parts and questions surrounding your father’s marriage and estate. Florida is an equitable-distribution state, meaning that his assets will be distributed fairly or equitably whether they are worth $10 or $100 million. Anything earned before his marriage will typically be regarded as separate property. From your letter, it sounds like he has either not worked during his five-year marriage, or that at least those have not been his peak earning years.
In Florida, a prenuptial agreement must be signed by both parties without undue influence or fraud, and it must not be unfair. On that last point, I spoke to family-law attorney Patrick Baghdaserians, who is based in California but who litigates and creates premarital agreements. “If you have a spousal-support provision that is too onerous and too aggressive, unconscionable at the time of enforcement, it’s going to be unenforceable,” he says.
A premarital agreement would have helped your father protect separate property and outline the division of community property during the marriage in the event of a divorce. But Baghdaserians notes: “If you get married, and you’re already wealthy prior to marriage, whether you have a premarital agreement or not, those assets are already separate property.” In your father’s case, that’s likely relatively easy to prove, especially given the short amount of time he has been married.
Any efforts he expends during the marriage are considered community efforts, Baghdaserians adds. “If you continue to work in the business, it can now develop into quasi-community property,” he says. “A premarital agreement can outline what happens with that portion of the business.” But from your letter, he says, it sounds like the lion’s share of your father’s business would be deemed separate property should he decide to divorce his wife.
Undue influence, duress and pressure on an individual who has lack of capacity could constitute elder abuse. The National Center on Elder Abuse, a government agency affiliated with the U.S. Administration on Aging, and the nonprofit National Adult Protective Services Association have resources and can provide help with the steps you can take to report alleged abuse. You can also contact your father’s primary physician for a review of his health.
Elder abuse affects an estimated 5 million Americans every year, according to the National Council on Aging, and multiple agencies say that number is both increasing and underreported. If your father has a degenerative disease and he also has cognitive impairment, it may be that he lacks the capacity to make decisions about his estate, or that he could be under some kind of undue influence or duress.
A typical scenario is when a person is isolated by a partner or an adult child, friend, neighbor or caregiver, as allegedly happened with this Malibu doctor worth an estimated $60 million. “Undue influence is a psychological process that may be used against an older person as a means of committing two forms of elder abuse: financial exploitation or sexual abuse,” says the National Center on Law & Elder Rights. “Undue influence is also a legal concept.”
Is there a bad actor in this story? The “evil stepmother” could be an easy target. I want to leave room for the possibility that your father’s illness could have led to cognitive decline and fear or paranoia about his own safety. Try not to allow the fact that he married his caregiver in secret create an atmosphere of distrust. Don’t allow your frustration over the fact that this woman will share in your father’s estate to demonize her without due cause.
It may be that his wife is doing her best to take care of him. Patrick Hicks, lead counsel at Trust & Will, an estate planning platform firm in San Diego, Calif., says there are some valuable takeaways for you and your father. “How does he want the family business to be run once he passes? How does he want his inheritances distributed? It seems there is a lot of blame and focus being put on the wife, and not enough attention to the actual details of their father’s plan,” he says
“It is interesting but also a very common concept that marriage bestows certain obligations to care for a spouse,” Hicks says. “Your ability to disinherit a spouse is often limited and, in many states, the spouse has the option to take a share or take under the will. And with divorce it varies, but some equitable division is common. Foremost, it is crucial to understand that your father has the right to make his own estate plan and dispose of his assets as he sees fit.”
Although it may be difficult to come to terms with that, Hicks says, you need to respect his autonomy and his decisions. “You may also want to consult with an attorney to review the prenuptial agreement and ensure your father understands the consequences of the decisions he is making,” he notes.
In other words, just because you don’t want your father’s wife to inherit a portion of his estate does not mean that she is a gold digger or a bad person, or that she is a threat to your father’s well-being. You can be upset that his estate will be divided among his children and his wife, and she can still be a good person. Those two things are not mutually exclusive. By all means, do your due diligence with doctors and an estate- or family-law attorney, and put your father’s health first.
You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com, and follow Quentin Fottrell on Twitter.
Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.
The Moneyist regrets he cannot reply to questions individually.
More from Quentin Fottrell:
‘She is a grifter’: My father set up a $500,000 trust for my troubled sister, and asked me to be trustee. What are the risks involved in being a trustee?
‘We live in purgatory’: My wife has a trust fund, but my mother-in-law controls it. We earn $400,000 and spend beyond our means. What’s our next move?
I’m afraid to tell my spouse’: I maxed out my credit cards and racked up $100,000 in debt due to my gambling addiction. Can you help?
San Francisco’s SoFi Bank, a rising financial institution with 6.2 million customers, has unveiled its substantial cryptocurrency holdings, demonstrating a proactive embrace of the evolving digital asset landscape.
A recent report shows that the bank’s second-quarter earnings totaled $170 million in various cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
Among its cryptocurrency investments, SoFi Bank boasts $82 million worth of Bitcoin, solidifying its position in ‘digital gold.’ Ethereum follows closely, with $55 million, showcasing the bank’s belief in the blockchain’s potential.
The meme-inspired Dogecoin takes the third spot with $5 million, while Cardano secures the fourth place with $4.5 million. The bank also diversifies with digital assets like Solana (SOL), Litecoin (LTC), and Ethereum Classic (ETC).
SoFi Bank's crypto holdings | Source: X
SoFi Bank’s unique proposition lies in its commitment to fee-free cryptocurrency investments, allowing customers to allocate a portion of their direct deposits to digital assets.
The bank further incentivizes newcomers by offering a $100 crypto bonus upon registration. With a minimum investment threshold as low as $10, the platform fosters accessibility to a variety of cryptocurrencies beyond Bitcoin.
While SoFi Bank’s innovative approach to cryptocurrency has garnered attention, it faces regulatory scrutiny, particularly from the United States Federal Reserve. The regulatory body has raised concerns over the bank’s involvement in crypto-related activities, requiring alignment with established policies. The bank has been given until January 2024 to ensure compliance, a process that involves navigating regulatory capital treatment intricacies.
Founded in 2011, SoFi Bank transitioned from its status as a non-bank entity in 2019 to a fully-fledged financial institution the following year.
BTC price falls to $29,300 | Source: BTCUSD on Tradingview.com
The earnings report highlights SoFi Bank’s business acumen, reflected in its strong second-quarter performance. With a remarkable 37% surge in revenue ($498 million) compared to the previous year, the bank showcases its ability to thrive amidst a rapidly evolving financial landscape.
SoFi Technology Stock also witnessed a 17% surge in July following its Q2 report. “As a result of this growth in high-quality deposits, we have benefited from a lower cost of funding for our loans,” SoFi CEO Anthony Noto said.
SoFi is not the only bank that has made its way into cryptocurrencies. Major US banks like Wells Fargo, JP Morgan, and Goldman Sachs, among others, have also taken the plunge to provide access to digital assets and cryptocurrencies for their clients.
Other notable entrants into the industry include BlackRock and ARK Invest, which have filed applications for Spot Bitcoin ETFs with the SECs. On August 13, the first of these, the ARK Invest application, will be deliberated on to be approved or rejected by the SEC. However, the regulator could also end up extending the deadline.
Featured image from BitIRA, chart from Tradingview.com
Binance, the world’s largest crypto exchange by trading volume, has achieved another significant milestone. The firm, which recently turned six, keeps racking up several achievements despite the FUD that has surrounded it in recent times.
The world’s largest crypto exchange by daily trading volume has recently disclosed that its registered users now stand at a whopping 150 million. This was revealed in a tweet by its CEO, Changpeng “CZ” Zhao, on Thursday.
In the tweet, CZ noted his company’s milestone amidst growing regulatory scrutiny of its operations the world over. However, despite navigating through different challenges, Binance has managed to captivate the interest of several millions of users around the globe. So this is a testament to the platform’s quality service delivery and amazing features.
Just over a year ago, in July 2022, the exchange’s user base stood at about 120 million. The astonishing growth of 30 million users within the span of just 12 months tells of Binance’s undeniable hold in the constantly evolving cryptocurrency ecosystem.
A cursory look at the platform’s traffic data for the last three months shows that the top five nations contributing to this spike are Vietnam, India, Russia, Turkey, and Argentina. The increased expansion across various diverse geographies demonstrates the heightened acceptance and penetration of digital currencies.
BNB price trends at $241 as users base reaches new high | Source: BNBUSD on Tradingview.com
As expected, with growth comes challenges and Binance’s journey has not always been all growth and triumph. The platform has been the subject of various legal challenges across diverse jurisdictions.
The exchange was recently charged with “will evasion” and fraud by the United States Securities and Exchange Commission (SEC) in June this year. In Europe, Binance is under probe by French regulators who accused the platform of engaging in money laundering. It has also been ordered to cease rendering crypto services by Belgium’s financial watchdog.
In China, the services of the platform are restricted and inaccessible to millions of users within the country. Binance has also withdrawn its license applications and canceled its registration bids in several countries.
However, Binance has been able to make some gains in recent times. Earlier this month, it restored services in Japan, following the purchase of the local exchange Sakura Exchange BitCoin (SEBC) in November 2022. It has also been given a license to render cryptocurrency services in Dubai.
All these hurdles make the latest milestone not only remarkable but testamentary. The road to 150 million registered users has been paved with various challenges, but Binance has so far emerged victorious and triumphant.
Featured image from Reuters, chart from Tradingview.com
Cardano (ADA) has been at the forefront of network development over the last few months. This continued commitment to further development on the blockchain has led to the network hitting multiple new milestones. However, the price of ADA has remained stagnant, so what’s going on?
The year 2023 has been a good year for the Cardano network so far as it has celebrated multiple achievements during this time. The first of these is the fact that the Cardano network has recorded one of the longest uptimes of any blockchain in the space.
Cardano has recorded a continuous uptime record of 2,131 days as of July 28, which means that the network has not had an outage in almost six years. This achievement points to the sound technology behind the blockchain, in comparison to competitors such as Solana which has been characterized by multiple outages since its launch.
Cardano has a current UPTIME of 2129 days exactly.
That’s 5.83 YEARS with NO downtime.Built to last, an uptime the largest service providers in the world cannot & will never come close to challenging.
Research Wins. We are Cardano. Choose Cardano. 🙌👏@IOHK_Charles @Cardano…
— Dave 🧑🚀💽 🐋 (@beaumont_dvd) July 26, 2023
Another achievement for the network has the consistent development taking place. Cardano has consistently ranked among the top 3 ecosystems when it comes to development and this time around has been no different.
ADA price trending at $0.31 | Source: ADAUSD on TradingView.com
According to data from the on-chain tracker Santiment, the network is number 3 on the list of assets with the most developments over the last 30 days. This puts it behind only Polkadot (DOT) and Kusama Network (KSM), both of which emerged 1st and 2nd, respectively. This placement also puts Cardano ahead of its largest competitor Ethereum in terms of development.
🧑💻 Top 10 #crypto assets by development activity: notable #github commits, past 30 days:
T1 @Polkadot $DOT
T1 @kusamanetwork $KSM
3 @Cardano $ADA
4 @dfinity $ICP
5 @hedera $HBAR
6 @vegaprotocol $VEGA
7 @ethstatus $SNT
8 @cosmos $ATOM
9 @Ethereum $ETH
10 @decentraland $MANA pic.twitter.com/SnWDQf5a3y— Santiment (@santimentfeed) July 27, 2023
Usually, when a network such as Cardano is recording such achievements as it has, it is reflected in the price of its native in the form of a rally. However, there has been no such performance from ADA. Rather, the altcoin has been shedding its gains since June.
The problem may not be from ADA and might stem from the fact that the crypto market just reverted into another bear market trend. As a result, the broader market has been following the movement of Bitcoin, which on its own has reversed toward the low $29,000s.
Given Cardano’s developments, if the market were to resume its rally, then ADA may emerge as one of the top performers. This would stem from the positive sentiment surrounding the token due to its significant achievements.
Meanwhile, ADA is still performing well on a broader scale. At its current price, the digital asset’s price is up over 40% from its June lows, and ADA holding a good chunk of these gains shows that demand is rising to meet supply, thereby steadying the price.
