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In a personal blog about the scalability of the blockchain, Ethereum co-founder Vitalik Buterin disagrees with Tesla CEO Elon Musk’s vision of scalability.

Buterin starts the post by asking how far can we go with blockchain scalability:

“Can you really, as Elon Musk wishes, ‘speed up block time 10X, increase block size 10X & drop fee 100X’ without leading to extreme centralization and compromising the fundamental properties that make a blockchain what it is? If not, how far can you go?”

In May, Elon Musk tweeted about how the memecoin Dogecoin (DOGE) can “win.” According to him, “ Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.”

Musk was quick to respond to the criticism made by Buterin. In his response, he said that Buterin fears the DOGE and posted a Jaws poster with a Shiba Inu in place of the shark.

Commenting on the scalability challenges, Buterin says that there are “important and quite subtle” technicalities that restrict scaling. He also emphasizes that a major increase in scalability and throughput should happen “without extreme centralization and compromising the fundamental properties that make a blockchain what it is.”

Buterin sites computing power, bandwidth, and storage as the main limitations to a full node’s ability to handle a large number of transactions. As a solution to this scalability challenge, he introduces readers to quadratic sharding and says “Ethereum is not going further than quadratic…the extra scalability gains that you get by going from shards-of-transactions to shards-of-shards-of-transactions actually cannot be realized without other risks becoming unacceptably high.”

Talking about the solutions for blockchain defense and decentralization, Buterin highlights the importance of the regular users running nodes.

Sharing an example of an attack, Buterin says: “If you have a community of 37 node runners and 80000 passive listeners that check signatures and block headers, the attacker wins. If you have a community where everyone runs a node, the attacker loses.” The threshold for a successful defense against attacks is unknown, but “more nodes good, fewer nodes bad, and we definitely need more than a few dozen or few hundred,” he adds.

Ethereum

Ethereum developers are currently preparing for their 11th hard fork, called London, and Ethereum 2.0 developers are preparing for their first update, called Altair after the brightest star in the northern constellation of Aquila. The two updates are expected to take place at the same time, in July or August, to enable validators to upgrade Ethereum and Eth 2.0 in one go.

Earlier in the month, Ethereum reached an all-time high of over $3,456. This increase in the value of the cryptocurrency is attributed to the use of the Ethereum platform in decentralized finance (DeFi).

Elon Musk

Elon Musk has been a pivotal figure in the recent marketing and consequent price hikes of DOGE. He has also been in the news because of Tesla’s $1.5bn Bitcoin investment and subsequent cancellation of Bitcoin as a method of payment because of environmental concerns. Most recently, Musk spoke with North American Bitcoin miners on creating a Bitcoin mining council that promotes energy use transparency and accelerates sustainability initiatives.

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Naabiae Nenu-B is a Medical Health Student and an SEO Specialist dedicated to flushing the web off fake news and scam scandals. He aims at being "Africa's Best Leak and Review Blogger" and that's the unwavering stand of Xycinews Media.

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Fx Analysis

Canada’s Crypto Landscape Today

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The Crypto Landscape Today

The Canadian cryptocurrency market is currently one of the most advanced in the world, despite crypto still only being regarded as an emerging technology.

The Canadian government has proactively participated in formulating regulations to govern the market’s operations and protect its investing citizens. As a result, it appears that the future of cryptocurrency in Canada is bright, among both investors and miners.

The country is spearheading the ascent of cryptocurrencies in both domestic and foreign assets. As a result, Canada became the first country globally to pass a law on digital currencies, which inevitably made a real statement in the cryptocurrency space.

As cryptocurrency prices fluctuate and are expected to rise over the coming months, many more Canadians are looking to buy and invest in Bitcoin through platforms such as MyBTC.ca.

According to Statista, Bitcoin is still by far the leading cryptocurrency for Canadians to invest in with Ethereum, Ripple, and Litecon some way behind. Bitcoin is also more widely accepted in Canada, with all the big cities accepting cryptocurrency to some capacity in exchange for goods and services.

The Canadian cities that notably appear more crypto-friendly are Vancouver, Toronto, and Ottawa with a wide range of businesses accepting cryptocurrencies in each of these cities. In their role as regulators, the Canadian government remains optimistic about crypto and actively invests in research projects for leveraging the technology.

Conducive Environment for Crypto

Canada, unlike most countries, generally has a friendlier approach with certain policies towards crypto. Its policies encourage individuals to participate in crypto-related activities and these have been a key driver for Canada’s innovation in the crypto sector.

Rather than let crypto become the wild wild west, Canada’s active involvement in the sector brings a sense of orderliness to this fast-expanding industry. While other countries outrightly outlaw or impose strict regulations against crypto operations, Canada’s friendlier stance makes the country stand out from the crowd internationally in a unique way.

Primarily, cryptocurrencies are regulated as securities, with the regulators striving to protect the public. The Canadian Securities Administrators (CSA) frequently issue directives on cryptocurrency operations across Canada. In one of the latest notices, CSA and the Investment Industry Regulatory Organization of Canada (IIROC) outlined the steps for crypto-asset trading platforms (CTPs) to comply with relevant regulations.

The Ontario Securities Commission (OSC) also partners with fintech firms to ensure all digital asset innovations remain compliant with the country’s regulations. In a recent case, the OSC went on an offensive against cryptocurrency exchanges that allegedly failed to comply with securities law. This onslaught saw Binance Exchange exit the Ontario market.

Canada’s Crypto Regulatory Framework

Surprisingly, not many countries have been as quick and proactive as Canada in setting up regulatory frameworks for the crypto sector. For many investors, regulating cryptocurrency operations is critical as the technology it features favors its use in facilitating illegal or malicious financial transactions.

Some crypto proponents and developers detest an overly regulated sector that may hurt crypto adoption and innovation in the industry. Striking a balance between both situations is a significant step for Canada in ensuring a thriving and secure crypto environment. So, how is Canada working towards this goal?

Canada passed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) in 2014 (later amended in 2019) to set up a framework for handling virtual currencies. This act treats entities dealing with cryptocurrencies as money service businesses (MSBs). Like MSBs dealing with fiat currencies, crypto MSBs are subject to keeping records, verifying procedures, and reporting suspicious transactions. The MSBs must also register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

This legislation adds a layer of security to the crypto environment in Canada by pushing out non-compliant operators from the market. Consequently, investors are less likely to fall victim to illicit activities prevalent in crypto markets. What’s more, a confident public will invest more in crypto and drive adoption and crypto use cases. This new industry, which is speculative, has the potential to grow and have crypto as a competing store of value against existing methods for storing value.

Bank of Canada’s Position

The Bank of Canada has often stated it has no plans of issuing a Central Bank Digital Currency (CBDC) as long as cash usage hasn’t fallen significantly.

The COVID-19 pandemic saw an uptake of cryptocurrencies and this triggered the Bank of Canada to accelerate its work on a CBDC. Despite a skeptic attitude towards cryptocurrencies, in an address, the bank’s deputy governor regards stablecoins as having a higher potential for adoption. In creating its CBDC, the bank has stated that it considers the environmental impacts to ensure the currencies operate with excellent energy efficiency.

The bank has also called out risks associated with stablecoins, stating that if widely adopted, they could disrupt the bank’s monetary policy mechanisms. So, the bank prefers that stablecoins in the Canadian crypto market be backed by the Canadian dollar. Considering the Bank of Canada’s position and the potential of crypto to render such institutions obsolete, it’s rather stern stance on cryptocurrencies is expected. However, unlike many other central banks worldwide, the bank’s stance is more welcoming.

Bitcoin ETFs and other ETFs

A cryptocurrency exchange-traded fund (ETF) is a type of security that tracks or mimics the price of a digital currency and can be traded on a stock exchange.

Most mainstream investors experience difficulty investing in crypto, which goes through multiple security procedures and crypto exchanges to hold the cryptocurrencies. Therefore, an ETF simplifies cryptocurrency trading for investors. Canada became the first country to launch a Bitcoin ETF in North America with OSC’s approval of Purpose Bitcoin ETF (BTCC) at the start of 2021. The ETF is traded on the Toronto Stock Exchange (TSX). Others include Evolve Bitcoin ETF (EBIT) and CI Galaxy Bitcoin ETF (BTCX), all trading on TSX.

Apart from BTC ETFs, Canada also has ETFs for Etheruem’s Ether (ETH). ETH ETFs, like BTC, increase investors’ exposure to ETH. The top ETH ETFs are issued by Purpose Investments, CI Global Asset Management, and Evolve. The presence of ETFs for Canadians illustrates the strides taken by Canadian regulators in embracing the sector.

Big NFT Market Player

The top-performing product in the blockchain sector this year is the non-fungible token, or NFT. These unique digital collectibles have expanded the possibilities for blockchain applications in distributing physical or digital items like artwork or music.

One of the top NFT collections during the NFT craze was the NBA Top Shot. The collection comprises tokenized video highlights of memorable moments from NBA games. The NFT studio behind NBA Top Shot is Vancouver-based Dapper Labs. The studio is also the creator of CryptoKitties, the virtual cat collectibles that sparked the first NFT craze back in 2017.

The NFT space has gained significant input from Canada’s innovative developers. This innovation can be attributed partly to the comparably favorable environment for crypto in the country.

Canada’s Cryptocurrency Mining

The latest fall in crypto prices this year has been partly due to concerns about the environmental impact of cryptocurrency mining. China previously accounted for the largest portion of Bitcoin mining worldwide, but the country has recently started to crack down on miners which has impacted the overall crypto price.

The majority of these miners are now looking for new locations to set up shop. In North American, Canada is a top destination for cryptocurrency mining firms as more miners look to relocate to a country in North America that is more crypto-friendly.

Canada boasts less-hostile policies, affordable power rates, and a favorable climate. Since the mining hardware requires constant cooling, Canada’s cool weather slightly eases the cooling energy consumption.

During the crackdown, Canada’s BTC mining firms have experienced a jump in their overall output. Publicly traded BTC mining firm, Bitfarms, reported a 50% jump in BTC mined in one month alone. Bitfarms deploys hydroelectric power for its mining activities, which makes up 99% renewable energy for its operations. As the push for sustainability in the crypto sector continues, Bitfarms’ output will likely increase throughout the year.

Canada’s commitment to sustainability has seen the government invest in renewable energy sources. This will be a product in high demand by many cryptocurrency mining companies in the future.

Learning from the Not So Perfect

Canada’s crypto sector hasn’t been all perfect and the industry has had to learn from harsh past experiences.

One such event was when Canadian crypto exchange QuadrigaCX’s founder Gerald Cotten reportedly died in India. The death resulted in a US $190 million loss of users’ assets as Cotten had kept the assets in a cold (offline) storage, and only he knew the keys. A similar case was with Einstein Exchange, where users reported they could not access their assets, worth millions of dollars.

Both cases occurred in the same year and led to tighter measures to protect users against similar events in the future. Regulators have put up stricter policies, cracking down on non-compliant firms.

Canada’s crypto market has evolved since then, with exchanges deploying multi-sig wallets to prevent QuadrigaCX-like losses. In June 2021, OSC listed one of the world’s top five exchanges by trading volume, Bybit, as operating an unregistered crypto asset trading platform.

The Future of Crypto in Canada

The crypto landscape in Canada has a bright future given the more structured regulations regarding the sector’s operations.

Canada’s innovation in the industry has put it up among the top-performing environments for the crypto sectors worldwide. The crypto industry is still emerging, and regulatory frameworks must constantly adapt favorably to the market needs if Canada is to remain a top crypto destination.

The future impact of 5G in Canada will likely be transformative for crypto too. The execution of 5G will increase styles of administration influencing how mining is assembled and what Defi applications can be developed.

At the moment, ensuring the sustainability of cryptocurrency operations is among the top issues Canada will have to handle. As challenges evolve, Canada’s swift response will come in handy to establish a solid future for crypto in the country.

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Fx Analysis

Twitter CEO Reveals What Inspires Him to Support Bitcoin

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Jack Dorsey, the CEO of Square and Twitter, is one of several billionaires that supports and advocates for the crypto industry. In the past, Dorsey has shown signs of support by adding a Bitcoin emoji on Twitter, using Square to launch a Bitcoin hardware wallet, and he even made plans to move to Africa and work with its IT experts to make use of crypto and other technologies to start the process that will transform the continent.

This time, however, he decided to reveal some details about things regarding Bitcoin that are making him so supportive of the world’s largest cryptocurrency.

Dorsey speaks of Bitcoin during The B Word conference

Dorsey spoke about Bitcoin during a popular crypto conference known as The B Word. This is a well-known event hosted by the Crypto Council for Innovation, and it has attracted many influential speakers.

Dorsey said that the thing that really drove his thinking — the thing that drives his passion behind it — is a single question – “if the internet has a chance to get a native currency, what would that be?”

For Dorsey, the answer can only be Bitcoin. Bitcoin’s principles, resilience, use cases (such as helping the unbanked and supporting entire communities) are what makes him believe in Bitcoin and its potential. But, above all, Dorsey said that what shaped his view of Bitcoin and what made him so supportive of it is its network and its community. In fact, he said that the crypto community reminds him of the early days of the internet.

Why is Dorsey so supportive of Bitcoin?

This is also rather easy to see and understand. Many still remember the early days of the internet quite well, where talented developers were coming together to make this new thing a place that will offer an easy way for people around the world to connect, share ideas, information, and work for the betterment of the society as a whole. A similar thing is now happening with crypto, only this time, it is all about using the power of the community to help those who are financially struggling.

Billions of people around the world live in poverty, abandoned by banks just because they don’t offer institutions the ability to earn from them. The crypto industry is about empowering people like that. This is one of the reasons why Satoshi Nakamoto created Bitcoin in the first place, and this single goal has remained in the heart of the crypto industry to this day. Empowering people who do not wish to depend on the banks is what allowed DeFi to explode last year while empowering artists and collectors alike is what allowed NFTs to blow up in 2021.

This single goal is still pushing the industry forward, and Dorsey is completely fascinated by it. He said it himself, explaining that “It’s deeply principled, it’s weird as hell, it’s always evolving. It just reminded me of the internet as a kid.”

It is safe to say that Dorsey believes in the future of crypto, and he has high hopes for it. He even hopes that cryptocurrencies could help create world peace. He is aware that this won’t happen overnight — it is a long-term mission, but he still thinks it is possible.

He has been saying similar things for years now. One example is the Bitcoin 2021 Conference that took place only last month when he said that Bitcoin can change everything and that he honestly doesn’t think there is anything more important in his lifetime to work on. It is this thinking that inspired him to use Square to buy $50 million in BTC last year. He even announced that Square is continuing to push deeper into the crypto industry by creating a new business that will revolve around using Bitcoin to offer decentralized finance services.

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Fx Analysis

Chart Art: Trend Continuation Setups on USD/CAD and GBP/JPY

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Ready to start catching pips this week?

I’ve got a treat for ya as we explore not one, but TWO swing trend plays today.

Check them out!

GBP/JPY 4-Hour Forex Chart
GBP/JPY 4-Hour Forex Chart

I know we literally just talked about GBP/JPY’s downtrend last Friday but I thought y’all might want to know that the pound has hit a key resistance zone.

I’m talkin’ about the channel resistance, yo! Guppy has seen its first bearish candlestick after consolidating at the 152.00 major psychological area and 100 SMA.

Is a GBP/JPY a sell? Selling at current prices is a good bet if you think that the bearish divergence on the 4-hour chart will lead to GBP/JPY extending its months-long downtrend.

If the yen cross starts giving weird volatile moves, though, then you should be ready for a breakout that would take GBP/JPY to the 200 SMA or the 153.50 and 154.00 previous areas of interest.

USD/CAD 4-Hour Forex Chart
USD/CAD 4-Hour Forex Chart

Fib traders gather ’round! USD/CAD is consolidating around the 1.2575 zone that lines up with the 61.8% Fib retracement of July’s main upswing.

And if that’s not enough to get you writing trading plans, then you should know that USD/CAD’s current levels are also near the 4-hour chart’s 100 SMA and a trend line support that has been around since the start of June.

Is USD/CAD a good buy? Dollar bulls can buy at current levels and target July’s highs for a sweet risk ratio. Of course, the more conservative buyers can also load up on them longs as soon as we see a couple more bullish candlesticks.

If you’re not convinced that the dollar can extend its uptrend against the Loonie, then you can also wait for a clear break below the trend line support and then target previous areas of interest like 1.2440 or 1.2325.

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