Mediaboss Marketing

Meme coins are on the rise in unfamiliar places thanks to Ordinals, the project launched in January on the Bitcoin network. It started with an NFT-like effort to "inscribe" assets like artwork and profile pictures onto Bitcoins blockchain, but soon evolved to support BRC-20 tokens minted using the same protocol.

Now, thanks to the sensation surrounding Ordinal inscriptions and meme tokens on Bitcoinnot to mention the increasingly high network fees that resultedinscribers have brought the latest craze in blockchain to Litecoin and Dogecoin. And in the process, theyve sent daily transaction totals to the moon.

On Wednesday, the three largest proof-of-work blockchains by market capitalization collectively tallied over 2 million daily transactions: 579,260 on Bitcoin, 363,885 on Litecoin, and 1.126 million on Dogecoin alone, per data from BitInfoCharts. Each chain has also marked a respective all-time single-day peak for transactions so far in May.

How did we get here? Ordinals coming to Litecoin and Dogecoin was a natural progression, considering that Litecoin is a fork of Bitcoin and Dogecoin was based on code forked from Litecoin. They're all related, in a sense, and that's what has led to the migration of Ordinals tech from Bitcoin to the others.

Meanwhile, the BRC-20 and subsequent LTC-20 and DRC-20 standards were inspired by Ethereums ERC-20 tokens, allowing developers to create fungible tokens on the blockchains. It was a lighthearted experiment on Bitcoin... until the tokens caught on and nearly reached a collective $1 billion market cap.

Given that, it's no surprise to see the trend catch on elsewhere since. And Ordinals and the resulting meme token frenzy is already having a sizable impact on Litecoin and Dogecoin alike. Here's a look at how it happened.

In January, software engineer Casey Rodamor released the Ordinals protocol, which let users transfer and receive individual satoshisthat is, the smallest denomination of a Bitcoin (1/100,000,000 BTC). The key upgrade here is that they could include inscribed data like videos or images, instead of simply storing transaction data.

In March, Ordinal inscriptions hit a new high after a pseudonymous creator named Domo launched the BRC-20short for "Bitcoin Request for Comment" implementation. BRC-20 allowed the creation of "fungible tokens" on the Bitcoin network, opening the door for anyone to create meme tokens on the original blockchain.

As newer tools and infrastructure have made Ordinals easier to inscribe and handle, the total number of inscriptions has soared, topping 8 million as of this writing. And with over 24,000 BRC-20 tokens minted to date, the total combined market cap is currently over $618 millionand previously neared $1 billion in total. Bitcoin transactions set a single-day record of 682,000 on May 1 amid the meme token frenzy.

Critics of Ordinal inscriptions point to the rising cost of transactions on these blockchains now that blocks are filled with JPEGs and meme tokens, with some going so far as to call it a potential attack vector and that Ordinals and meme tokens should be blocked on the network. However, proponents of Ordinals say that the higher cost help secure the network.

Following the Ordinals-fueled explosion in activity on the Bitcoin network, the inscription protocol made its way to the Litecoin network. Litecoin was launched in 2011 as a fork of the Bitcoin blockchain and was a prominent cryptocurrency for years, though it has been overshadowed at times by newer and buzzier coins.

Ordinals came to Litecoin in February after a challenge from pseudonymous Twitter user Indigo Nakamoto, who initially offered 5 LTC (around $500) to anyone who could port the Ordinals protocol to Litecoinand the prize pool quickly grew. Software engineer Anthony Guerrera launched Litecoin Ordinals after forking the Bitcoin code.

In May, the LTC-20 standard was introduced to Litecoin, bringing meme tokens to the network. Litecoin transactions surged after the addition of Ordinals, going from 100,684 transactions on May 1 to hit an all-time high of 584,836 transactions on May 10. Over 2.6 million Litecoin Ordinals have now been inscribed, according to the Litecoin Foundation.

That same month, meme token and digital artifacts using Ordinal inscriptions made their way to the original meme coin network, Dogecoin, by introducing the DRC-20 standard. Users began filling the blockchain by inscribing tokens into the smallest denomination of a Dogecoin, sometimes referred to as "shibes" or "koinu," after copying the Ordinals protocol to create Doginals.

Dogecoin saw an even heavier surge in activity than its contemporaries, at least in terms of daily transaction volume, which jumped from about 88,000 on Monday to over 1.1 million on Wednesday. Not everyone is convinced that the trend is strong enough to last, however.

Something like this cannot become a real feature because it has not had enough thought given to it, Dogecoin core developer Patrick LoddertoldDecrypt this week. Furthermore, he believes that the impact on the broader network will cool the hype, adding that sustained and growing pressure on Dogecoin will cause this to die off quickly."

Editor's note: This article was updated after publication to clarify the terms used to describe the smallest unit of a Dogecoin.

Go here to see the original:

Meme Tokens and NFTs Took Over BitcoinNow It's Happening on ... - Decrypt

Over the past few months, the likelihood of a recession in the United States economy has increased, coinciding with the Federal Reserves efforts to address the challenge of containing inflation.

Amid mounting concerns, Bloombergs senior commodity strategist, Mike McGlone, has asserted that all indicators suggest an inevitable recession is on the horizon.

According to McGlone, the economy is tilting towards a recession, pointing to factors such as the Federal Reserves tightening policies, underscored by the interest rate hikes, he said during an interview with Blockworks Macro on May 17.

We are tilting down towards a severe recession that hasnt even started, and all the indications are right now. <> Theres nothing I see on the radar up close that what can stop this downward trajectory at the moment, he said.

He pointed out that some indicators include potential earnings contraction, stagnant market performance, declining natural gas and copper prices, and historically low unemployment rates.

At the same time, despite expectations of a turnaround once the Federal Reserve implements monetary easing in response to its tight policies, the strategist predicts that such a reversal is unlikely based on historical patterns. Indeed, he projected a challenging future for most investment products, such as cryptocurrencies and equities.

Moreover, McGlone anticipates a challenging phase for altcoins, foreseeing a substantial correction as the stock market undergoes a downward trajectory.

The strategist also offered insight into Bitcoin (BTC), suggesting it is poised to establish a new bear market bottom amid this period of market turbulence. Interestingly, he anticipates a market downturn that will likely wipe out most cryptocurrencies.

My base case is [the S&P 500 index] is going to 3,000, Bitcoins going to go down, I dont know how far. It might make a new low. <> Cryptos will go down real hard. Were going to purge some of these 24,000 cryptos. Get rid of some. Theyre just silly. But Bitcoin, Ethereum will come out ahead, he added.

McGlone asserts that despite a stock market crash, Bitcoins performance is unlikely to surpass that of other assets.

If we dont go down the stock market, I dont fully expect Bitcoin to outperform in that case. So theres kind of a win-win, he said.

In the meantime, Bitcoin continues to trade below $27,000 after failing to build momentum above $30,000. By press time, the maiden cryptocurrency was trading at $26,894.

Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Watch full interview below:

View post:

'Severe recession' unavoidable, finance expert warns, shares ... - Finbold - Finance in Bold

BitcoinBTC, ethereum and cryptocurrencies have been catapulted back into the limelight this year by the U.S. regional banking crisis that could be just getting started.

Subscribe now to Forbes' CryptoAsset & Blockchain Advisor and successfully navigate the bitcoin and crypto market roller-coaster

The bitcoin price has almost doubled since falling to lows of around $15,000 per bitcoin late last year, with ethereum, the second-largest cryptocurrency, climbing along with itdespite cofounder Vitalik Buterin issuing a serious bull run warning.

Now, another ethereum cofounder, Charles Hoskinson, who went on to create ethereum rival cardano, has warned the banking crisis is going to be worse than the 2008 global financial crisis that led to the creation of bitcoin.

It's at the beginning of a bull run you need up-to-date information the most! Sign up now for the free CryptoCodexA daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market

"In 2008, we had $373 billion in tied-up assets," Hoskinson, who created ethereum along with Buterin, Joe Lubin and five others in 2014, told Fox Business, referring to to the combined $373 billion in assets that failed banks held in 2008.

CardanoADA, which Hoskinson created in 2016, has become the world's seventh-largest cryptocurrency with a market capitalization of $13 billion, compared to bitcoin's $566 billion and ethereum's $232 billion.

"I think were over $540 billion now just in the 2023 crisis. Were just getting started. That whole business model is falling apart when you give it a little bit of a push and then you lose these institutions like Silicon Valley Bank and they get so politicized and they get so globalized."

In March, sudden deposit flight from Silicon Valley Bank and Signature Bank forced the Federal Reserve to step in with emergency measures but panic spread to Switzerland's Credit Suisse, which had to be rescued by rival UBS.

This week, regulators seized First Republic BankFRC and sold its assets to JPMorgan, the largest U.S. bank by assets.

"Our government invited us and others to step up, and we did," said Jamie Dimon, JPMorgan's chief executive, who played a key part in the 2008 financial crisis. JPMorgan, which already held over 10% of total bank deposits in the U.S., will see its net deposits increase by 3% as a result of the deal, according to Wells FargoWFC analysts.

"Whats going to happen is too big to fail is just going to lead to bigger institutions," Hoskinson said. "Weve seen this story in 2008. And this is the rerun. I dont think anybody wants to watch it."

The 2023 banking crisis has been partly triggered by the Fed's rapid series of interest rate hikes over the last year, with rates this week climbing to levels not seen since before 2008 in an attempt to rein in soaring inflation.

Sign up now for CryptoCodexA free, daily newsletter for the crypto-curious

Others have meanwhile warned the banking crisis could balloon out of control if confidence in the system is restored.

"Confidence in a financial institution is built over decades and destroyed in days. As each domino falls, the next weakest bank begins to wobble," Bill Ackman, chief executive of the New York hedge fund Pershing Square, posted to Twitter.

"We are running out of time to fix this problem. How many more unnecessary bank failures do we need to watch before the FDIC [Federal Deposit Insurance corporation], and our government wake up? We need a systemwide deposit guarantee regime now."

I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com.Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Read the original:

Worse Than 2008Bitcoin And Crypto Now Braced For $540 Billion Crisis, Ethereum Cofounder Warns After Price Boom - Forbes

Bitcoin. Photo by Getty Images

Bitcoin has soared more than 74% to start 2023, but the world's most popular token by market cap could more than double by next year, according to Bob Ras, cofounder of blockchain firm Sologenic.

A key catalyst will be the halving process, which is when the reward for miners is cut in half. It's meant to cut the supply of tokens and historically has sparked price increases.

"When bitcoin's halving kicks in a year from now, we'll likely be well on our way past the previous all-time high," Ras told Insider.

That would mean bitcoin soars past the $67,000 level reached in November 2021, up from about $29,000 on Friday.

Meanwhile, bitcoin appears to be front-running the belief that looser policy from the Federal Reserve is on the way, Ras explained.

The Fed on Wednesday hiked rates for the 10th consecutive time, but Wall Street widely expects that to be the last increase of this tightening cycle.

He thinks the token's rally points to a future that is effectively a return to lower rates and more quantitative easing.

Technical indicators, such as long-term moving averages, suggest upside and momentum, he said, but it's the broader landscape that will determine its performance the rest of the year. And he wouldn't be surprised if bitcoin hits $40,000 by the end of 2023.

"Coupled with signs of slowing [economic] growth, the changing macro picture is pointing towards a Fed that will likely soon have to cut interest rates and inject a lot of liquidity into the market," Ras said. "If the Fed doesn't do this, then we could face a serious contraction, punctuated by a possible credit crunch. Either way, all roads appear to be leading to a loosening of monetary policy sooner rather than later."

Ras isn't alone in his bullishness. Standard Chartered published a recent note that said bitcoin could soar to $100,000by the middle of next year, and Matrixport predicted that bitcoin could more than double to about $65,000 by next April.

As the banking crisis that started with Silicon Valley Bank in March continues to spark contagion fears, more retail and institutional investors have been turning to bitcoin as a hedge, Ras said.

That turmoil re-emerged over the past week as regulators seized First Republic on Monday and sold the bulk of its assets to JPMorgan, triggered sell-offs at regional banks PacWest Bancorp and Western Alliance.

"The banking crisis helped to cement the narrative of bitcoin serving as a key store of value that lacks the sort of counterparty risk of holding funds by way of bank deposits," Ras said. "Bitcoin offers protection by way of decentralization, self-custody and a network that has never been hacked."

But a credit crisis poses the biggest downside risk for bitcoin, he said. In such a scenario, bitcoin as well as gold, another traditional safe-haven investment, could see a sharp decline in value.

"I'm not sure such a scenario would happen," Ras said, "but it's possible and would unleash a tremendous amount of volatility, not only for bitcoin but all markets."

Loading...

See the rest here:

Bitcoin could more than double and hit a new record high next year - Markets Insider

Bitcoin might be the gold of the future, but for now institutional investors prefer the genuine article.

Bank failures that began in March spurred professional traders to add heavily to their exposure to gold futures even as they pulled back on engaging with crypto, according to a Thursday note by J.P. Morgan analysts.

Bullion is seen as a hedge against potential catastrophe, but since it doesnt pay interest, it is less attractive when rates are high. And while the bank crisis not only makes a broad financial disaster look more plausible, it also increases the likelihood the Federal Reserve could pause hikes or even cut rates.

Bitcoin doesnt have a historical track record, but proponents think it has similar properties, such as a limited supply and low correlation with stocks, that could make it a digital replacement for gold. The tokens price has surged about 44% to $29,387 since regional banks started to teeter in early March.

But when choosing which asset to lean on, big and small investors seem to have diverged, J.P. Morgan said.

Advertisement - Scroll to Continue

Between March and early May, money managers added heavily to their exposure to gold futures, building a net long position of around $20 billion. Meanwhile, the amount of gold held in exchange-traded funds, a proxy for retail gold interest, rose only slightly.

Investor interest in Bitcoin has gone the opposite direction. Bitcoin futures data analyzed by J.P. Morgan seems to show money managers didnt buy into the tokens even as retail investors drove prices higher.

There are myriad reasons why institutions might be hesitant to seize on Bitcoin as a hedge against catastrophe. For one, Bitcoin has only been around for 14 years and has never faced a severe banking crisis. And while gold prices can be volatile, Bitcoin puts the precious metal to shame. Even with the surge, prices are still down more than 50% from their November 2021 peak.

But more than that, the analysts note, the U.S. is in the midst of a regulatory crackdown on crypto assets with uncertain repercussions for token prices. Regulators have blamed the failures of Silvergate Capital Corp. (ticker: SI) and Signature Bank

Advertisement - Scroll to Continue

It is hard to see Bitcoin as a shelter from the storm while it is in the sights of Uncle Sam.

Write to Joe Light at joe.light@barrons.com

Read more from the original source:

Bitcoin or Gold? Big Investors Think It's a No-Brainer. - Barron's