The Disrupt Weekend

“Less than 8 hours after breaking above $800, and just an hour after surging beyond $900, Ethereum has broken back above the $1000 mark for the first time since Feb 2018.

According to Moore, each disruptive technology must go through five stages of adoption: starting with tinkering “innovators” who first try new technologies, through the “early adopters,” to the “early majority” and “late majority” – the two biggest groups – and finally, to the “laggards.”

The most critical stage of Moore’s framework for these journeys is what he terms “the chasm.” The chasm yawns between the “early adopters and the “early majority” because there is a step-function difference between the demands of these two cohorts. This is often where new technologies go to die.

Bitcoin and crypto may not have been ready to jump across the chasm yet, but the long year of 2020 that propelled the world across the Rubicon pushed cryptocurrency across its adoption ‘chasm.’

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The essence of “collateralized” stablecoins resides in a centralized issuer, an organization that bears economic and legal responsibility, and maintains fiat currency reserves in a bank account. In fact, these are not cryptocurrencies, but tokenized fiat – digital money on the blockchain.

The most popular decentralized stablecoin, DAI, was launched in 2017, on the Ethereum blockchain. Its U.S. dollar parity is supported by market and technical mechanisms based on smart contracts that implement a price stabilization algorithm. Hence the term “algorithmic.”

Thus, with the help of price regulation algorithms, a stable crypto asset is created without the participation of fiat currencies and the necessity of connection to the traditional financial system. Algorithmic stablecoins work like cryptocurrencies. Unlike USDT and its analogues, they are decentralized and are not subject to a single issuer and regulators.

From the end user’s point of view, CBDCs and bank tokens are very similar to fiat-backed stablecoins. Therefore, these three asset groups will compete directly and try to squeeze each other out of the market.

The main advantage of private bank stablecoins is the large distribution, user base and strong reputation of traditional financial institutions. People will use them like other banking products, in the same applications. That’s why stablecoins issued by private companies, such as jpmcoin and libra, are causing serious concerns for regulators.

Given that, traditional crypto stablecoins may not be needed. They are likely to survive but will be under a lot of regulatory pressure and their volumes will drop significantly. Their functions will be taken over by banks and CBDCs. The state will aim to completely overtake the niche of “blockchain digital money” as it does not need any outside players in this area. This process is already underway in China.

It is in uncertain situations that algorithmic stablecoins, which do not depend on banks and regulators, can prove themselves. In the crypto industry, they will take over the functions now performed by USDT and other collateralized stablecoins.

On the other hand, against the backdrop of the pandemic and accelerated money issuance with governments worldwide, fiat currencies are depreciating more and more quickly. As such, the idea of pegging cryptocurrencies to declining fiat currencies becomes a dangerous play. In this case cryptocurrencies that withstand the volatility of fiat become the basis of a truly decentralized financial system.”

“In an article co-authored by Don Fort today, the former chief of the Internal Revenue Service’s (IRS) criminal investigation division said that while the agency until now has focused its resources on informing the public of proper reporting guidelines, it will now be turning to more stringent “enforcement.”

Even though the IRS has not yet announced many mainstream tax evasion or money laundering cases involving virtual currency, that trend should change in 2021.”

“Dash announced in a tweet that they had “reached out to @BittrexExchange to request a meeting,” and that referring to DASH as a “privacy coin” is a misnomer:

From a technical standpoint, Dash’s privacy functionality is no greater than Bitcoin’s, making the label of “privacy coin” a misnomer for Dash. We have reached out to @BittrexExchange to request a meeting with their compliance team. Hopefully this will be rectified soon.”

“Been HODLing my $Doge since 2014. MUCH PATIENCE. TO THE MOON.

That apparently was enough to get some of White’s 1.3 million followers to go out and get DOGE of their own. The price of the Shiba Inu meme-based cryptocurrency rose as much as 203% in three days.”

T-Bonds are bundles of fungible tokens that have been locked into non-fungible tokens (NFTs) until a certain condition is met — for instance, the passage of a certain amount of time or the launch of a mainnet.

As a result of selling T-Bonds, projects can hypothetically raise funds without tanking their token prices.”