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2024 Updates On Solana Network SOL Price Potential and The Markethive Community Wins

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2024 Updates On Solana Network, SOL Price Potential, and The Markethive Community Wins

With Bitcoin's record-breaking surge, the crypto community is abuzz with anticipation for the next altcoin to make a significant leap. And all signs are pointing to SOL. Solana has shown remarkable resilience recently and is on the cusp of achieving significant milestones that could trigger a substantial price surge. This growth potential is an exciting prospect for cryptocurrency enthusiasts and investors.

SOL, a native cryptocurrency of the Solana blockchain, holds immense potential. It covers costs on the Solana network through burning and can be deposited as a stake to operate a blockchain node. SOL tokens are not just for trading and peer-to-peer transactions but also as rewards for staking SOL. Since its introduction to the market in March 2020, it has gained significant popularity, being recognized as one of the top ten cryptocurrencies on CoinMarketCap. With a market capitalization of $61.9 billion and 618,596 SOL tokens in circulation, SOL is poised for a promising future.

As valued members of the Markethive community, we've been at the forefront of Solana's journey, given that our own Hivecoin operates on the Solana blockchain. This previous article from 2022 provides an overview of Solana, highlighting its blockchain's suitability for supporting Markethive's decentralized ecosystem. In this update, I will discuss Solana's recent developments, explore SOL's potential growth, and identify the key factors that could drive its value higher, emphasizing Solana’s crucial role in the Markethive community in this exciting journey.

Solana Has Been Making Waves

Solana, a layer-1 protocol in the blockchain arena, stands out with its exceptional transaction velocity and affordability. It can handle an impressive 50,000 to 65,000 transactions per second, far surpassing Ethereum's current processing power of around 30 transactions per second. This cutting-edge platform deploys smart contracts and decentralized applications, leveraging a proof-of-stake consensus mechanism that ensures ease of access and timestamped transactions to optimize performance.

This article highlights Solana's eight core features, including its groundbreaking Sealevel technology. This innovative feature allows concurrent execution of multiple smart contract runtimes on a single chain, thereby significantly boosting the network's ability to handle multiple transactions simultaneously.

Since its establishment in 2017, Solana has experienced significant growth and development, forging connections with major technology corporations like Google, Visa, and Amazon. These alliances are crucial benchmarks for blockchain initiatives, as they validate the project's credibility, demonstrating real-world adoption, practical use cases, and technological progress.

Solana has forged alliances with a diverse range of notable entities, including Chainlink, a decentralized data provider on Ethereum, and two leading stablecoin issuers: Tether, which has integrated its USDT token into Solana's network, and Circle, whose USDC stablecoin is a critical player in the decentralized finance (DeFi) sector. 

Moreover, Solana has partnered with Asics, a renowned sportswear brand, and Membrane Finance, a Finnish fintech company that has introduced the first Euro-backed stablecoin on the Solana platform. Notably, Solana's collaboration with e-commerce giant Shopify has opened the door for customers to make purchases using USDC, further expanding the utility of the Solana ecosystem.

In May 2023, Solana unveiled the Saga, a cutting-edge Android smartphone boasting robust blockchain capabilities. This innovative device is now accessible to consumers in various countries, including the UK, EU member states, Canada, the US, New Zealand, Switzerland, and Australia.

Concurrently, Solana revealed its collaboration with ChatGPT, a cutting-edge technology born out of Solana Labs. According to Anatoly Yakovenko, the founder and CEO, "AI will make Solana more usable and understandable." The open-source ChatGPT plugin seamlessly merged with Solana's ecosystem, initially facilitating various operations, including NFT acquisitions, token transfers, finding NFT collections, reviewing transactions, and interpreting public account data.

The frenzy surrounding meme coins on Solana kicked off in December 2023 with the debut of the BONK token. The subsequent distribution of BONK to owners of Solana's Saga smartphone led to the device selling out, and it appears to have had a ripple effect, causing Solana's future phone releases to sell out as well. Amidst the chaos of meme coin excitement, Solana made two significant announcements that flew under the radar.

One notable development was Circle's decision to launch its euro-pegged stablecoin natively on the Solana blockchain. It's worth mentioning that Solana was previously designated as the preferred blockchain for Circle's USDC, although it's unclear if this is still the case. Combined with the recent approval from New York regulators for Paxos to issue its assets on Solana, institutional investors increasingly view Solana as a viable alternative to Ethereum.


Source: X

Could a Solana Spot ETF Be the Next Big Thing?

Following the debut of Bitcoin spot ETFs in January, there has been mounting anticipation about the potential for a similar investment product dedicated to Solana. This buzz seems to have originated from statements made by Franklin Templeton, a prominent asset management firm, which emphasized Solana's notable advantages on the social media platform X.

Despite expectations, Bloomberg's ETF analyst James Seyffart casts doubt on the imminent arrival of a Solana ETF, citing the US Securities and Exchange Commission's (SEC) ongoing scrutiny. The SEC's classification of SOL as a security in its recent lawsuits against major exchanges Binance and Coinbase may be a significant hurdle. 

Nevertheless, Solana may still have a chance to secure its own ETF in the future. This prospect appears to hinge on whether SOL is listed on the prestigious Chicago Mercantile Exchange (CME), following in the footsteps of Bitcoin and Ethereum. Industry insiders believe that SOL and other prominent cryptocurrencies like ADA and DOT will eventually be listed on the CME, particularly since the exchange began providing pricing data for these assets in 2022.

Beyond the excitement surrounding ETF speculation, Solana garnered attention in January by introducing Token Extensions, a new development designed to facilitate widespread adoption among institutional investors. Essentially, these extensions represent fresh token standards on the Solana platform, boasting integrated compliance and privacy safeguards to meet the specific needs of institutional users.

Obstacles Facing Solana

Despite the positive developments, Solana's progress was hindered by a significant setback in early February when the network suffered unexpected downtime. This marked the first such incident in nearly 12 months. However, it's important to note that Solana's team swiftly addressed the issue, demonstrating their commitment to maintaining the network's stability. A thorough investigation subsequently identified the outage's root cause as a known bug previously flagged by developers, reassuring us of Solana's ability to overcome challenges and continue its upward trajectory.

Institutional investors prioritize consistency and stability above all else, so Solana's downtime may have affected their trust in the project. Nevertheless, this setback did not prevent Abu Dhabi from collaborating with Solana to develop blockchain solutions. Moreover, it did not deter Sam Bankman-Fried, the embattled founder of FTX, from promoting SOL to his prison authorities.

In addition, Binance revealed in March 2024 that it had put a temporary hold on withdrawals due to overwhelming network activity on the Solana blockchain. Around the same time, Coinbase users may recall similar notifications. Clearly, the Solana network became overwhelmed due to the surging popularity of memecoins, which reached a fever pitch and generated hundreds of millions of dollars in presale revenue on the platform.

Several people drew parallels between these pre-sales and the excitement surrounding Ethereum's initial coin offering (ICO) during the bullish market 2017. Yet, the underlying technical causes of the problems caused by this congestion may be obscure. A deeper understanding reveals that the congestion problems primarily stemmed from the Maximum Extractable Value (MEV) mechanism provided by Solana clients, particularly Jito, which ceased its mempool functionality in March 2024.

To clarify for those who may not know, MEV gives validators the ability to reorder transactions in a way that boosts their earnings. As a result, some transactions may not be processed successfully, leading to exchange problems.

Furthermore, transactions are temporarily stored in mempools before being included in the blockchain. While Solana's fundamental structure does not include a mempool, Jito's block engine, which aims to maximize extractable value (MEV), does have one. As a result, numerous expensive front-running attacks have been carried out on cryptocurrency traders, including sandwich attacks.

In the end, the Jito Labs team sees negative MEV, including sandwich attacks, as a hindrance to the Solana ecosystem, which is why they have decided to suspend it. Nonetheless, they are committed to providing an additional revenue stream for validators and stakers while striving to make Solana the top choice for all users in terms of performance.

On a positive note, Jito's bundle and block processing systems remain functional, and the rewards for maximizing extractor value (MEV) have not experienced a significant decline. Moreover, the attractive economic benefits will likely motivate teams to develop similar mempool solutions inspired by Jito's model.

It's worth noting that Franklin Templeton remains optimistic about Solana's prospects, as evidenced by a recent research report shared with its clients, which argues that memecoins can successfully drive user growth. This suggests that the recent surge in memecoin popularity may be intentionally orchestrated to achieve this goal. The results support this theory, with Solana reportedly surpassing Ethereum in terms of decentralized exchange trading volume.


Source: X

SOL’s Price Movement 

Solana's price movement has been influenced by its recent updates, announcements, and progress, leading to significant SOL value growth. Analysis of on-chain data indicates that this surge in price may be attributed to the popularity of memecoins, with an increase in user activity and transactions on the Solana network. This trend is further supported by the growing adoption of the Phantom wallet browser extension, which has now surpassed 3 million downloads.

Let's take a step back to appreciate the rapid progress: just six months ago, Phantom had 2 million downloads—this stark contrast highlights Solana's astounding growth rate, which is accelerating at an incredible pace. A closer look at on-chain data reveals a remarkable surge in Solana accounts, with growth rates reminiscent of the crypto market's peak in 2021.

According to DappRadar's statistics, the Raydium DEX on Solana has attracted nearly 1.3 million unique wallets, while the Magic Eden NFT Marketplace has gained 300,000 new wallets. This indicates a resurgence in Solana's NFT environment. Current data shows that Solana NFT transactions have reached a significant milestone of $5 billion in trading volume.


Source: DappRadar

The importance of this lies in the fact that SOL is a necessary prerequisite for purchasing memecoins and NFTs on the Solana platform. As a result, any individual seeking to invest in or speculate on these digital assets must initially acquire SOL, thereby generating a surge in demand. This increased demand has been the primary force driving up the value of SOL over the past few months.

However, that only addresses the demand side of the situation. When considering the supply side of the equation, historical information indicates that the SOL supply has risen by around 20 million in the past six months. Therefore, using an estimated price of $150 per SOL could lead to potential selling pressure amounting to as high as $3 billion.

Despite significant selling pressure, SOL's price came remarkably close to reaching a record high, implying that the demand was exceptionally strong, possibly exceeding $3 billion. Alternatively, the selling pressure may have been overstated. Nevertheless, observing the substantial funds invested in memecoins is quite revealing.

As mentioned in this article, the rise in popularity of memecoins is thought to be caused by the absence of new retail investors entering the market. This situation may have encouraged large-scale investors, known as "whales,"  to target the existing retail investors familiar with decentralized exchanges (DEXs), leading to the hype surrounding memecoins. Despite the underlying reasons, Solana (SOL) displays a strongly optimistic outlook across various time frames.


Source: Messari

Solana’s Actual Road Map For 2024

Solana developed a de facto roadmap for 2024, established by the Solana Foundation in January. This plan includes four key milestones. The first milestone was the introduction of Token Extensions, completed in January. The second milestone involves the rollout of new validator clients, such as Fire Dancer, which is already operational on the testnet. Without delving into complex technical details, validator clients effectively enable validators to engage with the blockchain, enhancing network performance. 

The introduction of the Fire Dancer client is expected to substantially boost Solana's speed, although the exact improvement remains uncertain. Anatoly Yakovenko, the founder of Solana, mentioned in a December 2023 discussion that the Fire Dancer client is anticipated to be launched by the upcoming Breakpoint Conference in September 2024.

Interesting tidbit: With the successful integration of Fire Dancer, Solana will finally shed its beta label. This milestone, combined with the anticipated boost in performance, is expected to have a profoundly positive impact on SOL's value. Many experts believe this could be the spark that propels SOL to surpass the $300 mark in the upcoming weeks.

The next significant benchmark on Solana's defacto roadmap is unspecified institutional support. This milestone marks a crucial step forward, indicating that businesses now have unrestricted access to a comprehensive suite of tools necessary for building on the Solana platform. Furthermore, given Solana's ambition to emulate a decentralized version of the NASDAQ exchange, the integration of tokenized, real-world assets is likely on the horizon.

The following key objective is establishing a “mature building ecosystem,” where Solana’s developers are encouraged to leverage the full range of tools to create innovative products and services on the platform. The authors identify six critical focus areas: developing gaming finance applications, (GameFi) decentralized autonomous organizations, (DAOs)  permission products, infrastructure solutions, payment systems, and interoperability features.

The Solana Foundation recently announced a new milestone in a blog post involving an upcoming upgrade to address Solana's congestion problems. This upgrade began in mid-April and may include potential MEV functionality.

The Governance Forum of Solana has indicated that it plans to develop a new governance framework. An article published in August 2023 mentions that the introduction of this governance structure is expected in the first quarter of 2024. However, it remains to be seen whether it has been finalized at this point.

Closing Thoughts on Solana

Anatoly Yakovenko, the mastermind behind Solana, noted in an interview the importance of considering the potential shift in efficiency between decentralized and centralized exchanges. As decentralized exchanges become more effective, centralized cryptocurrency exchanges will likely transition to utilizing the decentralized blockchain for enhanced efficiency. Solana is determined to be at the forefront of this shift and has a strong possibility of emerging as the go-to blockchain solution.

Solana boasts 29.7 million active accounts and 340 million minted NFTs. With fast block times at 400ms and a low median TX fee of $0.00064, the network is known for its energy efficiency and zero net carbon impact. Despite notable obstacles, the Solana ecosystem has shown impressive resilience and sustained expansion. It has emerged as a leading candidate for managing millions of users on decentralized trading platforms.

Solana is an impressive venture supported by influential figures who believe in the network. The team is both reliable and innovative. Despite being in beta, Solana has demonstrated its capabilities beyond just a polished interface, processing billions of transactions. Additionally, the company started modestly without relying on massive amounts of venture capital, focusing on achieving tangible outcomes. These aspects collectively indicate a focus on delivering results.

Markethive Thrives On The Solana Blockchain

Solana is a perfect fit for the Markethive ecosystem, empowering the Markethive to further its mission of creating a fully decentralized platform for social media, marketing, and broadcasting where users can freely express themselves without fear of censorship. This all-encompassing ecosystem provides a comprehensive suite of tools for social media, marketing, broadcasting, publishing, eCommerce, and business facilitation. Ultimately, this collaboration aims to create an environment where individuals from diverse backgrounds can flourish in a cottage industry economy.

A key long-term goal is to launch the Markethive blockchain and decentralized exchange (DEX). This comprehensive project, designed to operate independently at every level, will resist the oppressive forces affecting societies worldwide. Multiple components of Markethive's ecosystem are being developed in tandem, preparing the way for the millions seeking a safe haven and reclaiming their independence. We have established our sovereign merchant account and successfully activated the Markethive wallet.

To conduct transactions through your Markethive wallet, you will need Solana's native coin (SOL) for the transaction fees, as Markethive’s Hivecoin (HVC) is a Solana token. Sending HVC involves paying gas fees. If Hivecoin were based on the Ethereum network, sending 10 HVC would cost $4.16. However, because Hivecoin is built on the Solana Network, the cost of sending 10 HVC is just $0.00003, which is a minuscule amount by comparison.

SOL can be purchased from a wallet like Solflare, Trust, or Exodus and then sent to your Markethive Solana sub-wallet. Watch this video for a step-by-step guide on setting up and utilizing the Exodus wallet to purchase SOL. To begin building your SOL reserves, leverage Solana's numerous faucets, which offer free SOL in exchange for participation. As detailed in this article, you can also take advantage of airdrops through Trojan On Solana. 

Markethive originated from modest roots without the backing of influential investors. Instead, it was created by the people and for the people, forming a collaborative environment that empowers entrepreneurs. The true beneficiaries of this system are its grassroots community, who will collectively reap the rewards and share in the prosperity and abundance that permeates every level of humanity. 

Keep updated on the advancements of Markethive as we implement our innovative new system—a secure Divine fortress impervious to malevolent forces. Join us for the weekly meetings held every Sunday at 8 a.m. Mountain Time. You can access the meeting via the invitation link in the Markethive calendar.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

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Earn Free Solana Make 500 per Day

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Earn Free Solana — Make $500 per Day Guide!

Let's see how to get free Solana without spending any money! With this guide, you can earn free Solana tokens effortlessly.

One method is through referral platforms like Trojan On Solana.

Follow the steps below to learn how you can get started and earn free Solana!

How To Get Free Solana (SOL) With Trojan On Solana

Earn Solana For Free

Join Trojan On Solana

First you need to, join Trojan via Telegram to access its referral program. Once you’ve signed up, you’re ready to start earning.

Why Trojan?

Trojan On Solana stands out as the fastest-growing Solana bot on Telegram, offering a higher conversion rate for referrals compared to other platforms. It has the best referral system, where you not only earn from direct referrals but also from indirect ones.

Start Referring

Click on the “🤑 Referrals” button within the Trojan bot interface to access your unique referral link. Share this link with your friends, family, or followers to start earning referral rewards. You don’t need a large following to begin — anyone can participate and earn.

Earn Rewards Daily

By referring users to Trojan On Solana, you not only receive daily referral rewards but also qualify for the upcoming $TROJAN token airdrop based on your referral activity.

$TROJAN On Solana Airdrop Guide

Tokens will be airdropped to Trojan users based on their trading volume and referral activity, providing yet another incentive to join the platform.

Unique Features

Trojan On Solana offers a range of features such as copytrading, limit orders, and quick execution time, making it the go-to trading bot for Solana enthusiasts.

Tiered Referral System

Unlike other trading bots, Trojan implements a tiered referral system, allowing you to earn rewards not only from direct referrals but also from the referrals made by your direct invites (indirect referrals).

Lowest Trading Fees

With a trading fee of just 0.9%, Trojan On Solana has the lowest trading fees among Telegram bots. Instead of keeping the majority of the revenue, the platform distributes a larger portion to its users, making it a lucrative option for earning free Solana.

Conclusion

With Trojan On Solana’s referral program, earning free Solana has never been easier. Simply sign up, start referring, and watch your Solana bags grow!

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TROJAN On Solana Airdrop Guide

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$TROJAN On Solana Airdrop Guide

Trojan on Solana Airdrop Guide

Are you ready to seize the opportunity of the upcoming $TROJAN airdrop? This guide will walk you through the steps to participate in this HUGE Trojan on Solana Airdrop!

With Trojan getting impressive lifetime volume and revenue, the $TROJAN token is going to make waves in the crypto space.

By following these simple steps, you can position yourself to benefit from this crypto airdrop.

Key Details 🔑

  • Total Volume: Trojan has achieved a staggering $1.8 billion in lifetime volume, making it one of the most successful trading bots across all chains.
  • Airdrop Potential: With a confirmed airdrop on the horizon, participating in $TROJAN could yield substantial profits.
  • Backed by Experts: $TROJAN is backed by @TrojanOnSolana, the developers behind Unibot, lending credibility to its potential success.

Step-by-Step Guide 📖

To begin your journey towards the $TROJAN airdrop, follow these simple steps:

  • Click here to sign up for the Trojan bot.
  • Start the bot and deposit SOL to get started.
  • Navigate to https://dexscreener.com and filter by volume to identify potential coins for trading.
  • Select a coin of interest and copy its contract address.
  • Paste the contract address into the Trojan bot and press the buy button to initiate the purchase.
  • Once you’ve executed trades and generated profits, you’ll be considered for the $TROJAN airdrop.
  • The more transactions you do, the more $TROJAN tokens you will receive.
  • Refer others to join Trojan Bot.

Cost and Time Investment ⌛

  • Cost: Expect to invest between $1 to $50 (more investment = bigger airdrop) in fees to participate in the airdrop.
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By actively participating in the $TROJAN airdrop, you could potentially earn between $1,000 to $20,000 in profits, making it a highly lucrative opportunity.

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Follow these steps to get started and position yourself for potential profits.

Happy trading!

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Separating Fact from Fiction: The Real Story Behind China’s Controversial Social Credit System

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Separating Fact from Fiction: The Real Story Behind China's Controversial Social Credit System

Imagine a world where your social standing is dictated by a government-controlled formula that constantly monitors and judges your every move and utterance, imposing instant penalties for any perceived misstep. This Orwellian scenario is precisely what's conjured up by the term "Social Credit System." For years, mainstream media in the West has painted a dire picture of China's social credit system, warning of a dystopian future where citizens live in fear of being penalized for their words and actions.

The Social Credit System is a very real policy in China, yet many may not clearly understand its nature and functioning. This article aims to distinguish between reality and misconceptions surrounding the system, clarify its true essence, and assess the level of concern it warrants.

This article presents a thorough and impartial overview, drawing on the expertise of graduates from Germany's esteemed Mercator Institute for China Studies (MERICS). Additionally, it incorporates valuable insights from Vincent Brussee's 2023 publication, "Social Credit: The Warring States of China's Emerging Data Empire," ensuring a well-rounded perspective.

As geopolitical tensions escalate, it's essential to approach the following information with a healthy dose of skepticism. The Chinese government is exerting increased control over the narrative, while Western media outlets often display a strong bias against China. It's crucial to scrutinize all information critically and acknowledge that our understanding is likely limited. That being said, the social credit system is relatively transparent and accessible, unlike China's secretive defense research endeavors. With a development history spanning approximately 25 years, a wealth of information is available for analysis.


Source: Mercator Institute for China Studies 

The Social Credit System (SoCS) Origin

The subject of the social credit system in China is vast and complex. It's also a misnomer because there isn't one integrated system. Instead, it is a general term used to represent a diverse collection of policies and initiatives implemented by various levels of government in China, central and local. Despite this diversity, these initiatives align with their fundamental principles and objectives, which become more apparent when examining the issues the government seeks to address.

From Beijing's perspective, the absence of transparency, ethical standards, and a robust legal framework stifles economic and social growth. A prime illustration of this issue is the frequent disregard for court rulings. Such problems create an unfavorable business environment, as the inability to enforce court decisions renders contracts ineffective. In essence, agreements are reduced to verbal assurances, which can be precarious, particularly for smaller companies entering into contracts with larger, more powerful entities that may exploit their vulnerability.

Beyond these issues, the government acknowledges that inadequate law enforcement has led to a multitude of ongoing concerns, including devastating industrial accidents, breaches of food and medicine safety, bogus financial claims, the proliferation of fake goods, tax avoidance, false insurance claims, academic dishonesty, and other such illicit activities that continue to plague the system despite repeated prohibitions.

The social credit system was launched as a comprehensive solution to address many challenges. As a result, its reach goes beyond the traditional concept of creditworthiness in the marketplace, as seen in other nations. In defining the social credit system, the Chinese government has traditionally employed sweeping and ambiguous language, deliberately avoiding specificity. This approach allows for adaptability in policy-making, which is a top priority.

At first glance, Beijing may seem to be granting itself the unlimited authority to control the Chinese populace, which is a concerning prospect. Yet, surprisingly, the social credit system is quite dispersed and lacks centralized control. Local authorities have been afforded significant autonomy to respond innovatively to Beijing's vague objectives and develop their own unique iterations of the social credit system.

Due to the social credit system's complex and constantly shifting nature, it can be more productive to clarify what it is not rather than attempting to define what it is. A good starting point would be to debunk the prevalent myths surrounding this system and then work backward to better understand its true nature.

Debunking the Myth of a Nationwide Social Credit Score

One widespread misconception about China's social credit system is that the government assigns a numerical score to every citizen. However, this is not the case. In reality, no centralized scoring system is in place, and most initiatives under the social credit system do not involve numerical ratings. The few that do are limited to experimental programs introduced and managed by local city administrations. These pilot cities played a significant role in shaping the social credit system in the 2010s, with many emerging and disappearing over the past decade.

The initiatives ranged from the ordinary to the foreboding and the bizarre. What they all shared, however, was an air of innovation, as the social credit system remains a developing project with much still to be ironed out. It was the city-based trials that generated the most alarming news stories about China's social credit system, which were then picked up by Western media outlets, perpetuating a sense of unease about China's social credit system.

Rumors have circulated about draconian measures proposed by local authorities to penalize citizens for minor infractions, such as crossing the street illegally, failing to honor reservations at hotels or restaurants, or blasting loud music on public transportation. While most of these harsh initiatives stalled in the planning phase, the few that made it through sent a disturbing message.

The City of Rongcheng in Shandong province stands out as the most egregious violator, exemplifying the most extreme application of the social credit system on record. According to Adam Knight, a PhD candidate at the University of Leiden who researched Rongcheng's social credit initiative, the city's system evaluates businesses, government agencies, and individuals across a staggering 570 criteria, assigning scores that reflect their performance.

People could earn credits for virtuous acts such as donating to charity or giving blood, while they may lose points for negative actions like littering or engaging in public fights. If an individual's rating falls too low, they might face restrictions on purchasing transportation tickets for up to a year. Moreover, they could be publicly exposed and humiliated on a billboard. On the positive side, the initiative led to the dismissal of corrupt local officials and a significant reduction in grievances about misbehaving taxi drivers.

The positive development is that China's state media openly criticized rating systems incorporating punitive measures, such as the one in Rongcheng. The China Youth Daily aptly noted, “People should have rated government employees, and instead, the government has rated the people.”  Following this, the central government prohibited scoring systems that penalize individuals. They are now more akin to a loyalty rewards program rather than resembling something from a George Orwell novel.

By 2022, at least 62 cities had implemented their own social credit initiatives. Participation in these programs was optional, and not all utilized rating systems. Residents of these areas must proactively request a government-issued score, as it is not automatically assigned. The incentives offered to high-achieving individuals differ by location, ranging from discounted public transportation fares to priority parking and marginal tax breaks.

On the other hand, having the lowest score in the area would have no significant impact. A more appealing option is to opt out of participating in such initiatives altogether. The latter choice is widely favored in China. Involvement in these programs has been minimal, with many individuals unaware of their existence.

According to a study conducted by Genia Kostka, a professor specializing in Chinese politics at the Freie Universität in Berlin, a mere 7% of participants were aware of a social credit system within their local government. Additionally, the research highlighted that the primary focus of social credit systems in China is on evaluating the creditworthiness of government entities and businesses rather than individual citizens.


Source: Mercator Institute for China Studies 

The Target Audience of the Social Credit System

The primary objective of the social credit system is to enhance governance and foster a favorable business climate in China. Consequently, most of the central government's resources have been dedicated to developing the corporate social credit system. This emphasis is evident on the government's Credit China website, which offers a comprehensive overview of the social credit system. The website's content primarily focuses on businesses and public entities, reflecting the system's main priorities. Furthermore, data on enforcement actions undertaken under the social credit system confirms this bias towards corporate entities.

From 2014, when the city pilot programs began, to 2020, 73% of enforcement measures were aimed at businesses. Government agencies were the next most targeted group, accounting for 13% of these actions; 10% focused on individuals, with the remaining percentage focused on non-governmental organizations. While social credit's significance for individuals may increase in the future, its primary focus is on evaluating and impacting private companies rather than personal reputations.

Government Watchlists: A Powerful Tool of Control

Regardless of their penalty points, individuals and businesses can be subject to government pressure by being placed on a specialized register. This registry, comprised of "blacklists" and "redlists" (the government's term for trusted or "white lists"), plays a crucial role in the social credit system. These two lists are highly fragmented and uncoordinated across central and local governments. 

The Supreme People's Court oversees the most influential blacklist on a national scale. This registry documents entities and individuals legally mandated to settle outstanding debts yet deliberately choose not to despite having the financial capability to do so. Before establishing this black list, the court lacked the authority to enforce its decisions, leading to a widespread phenomenon of individuals disregarding its judgments.

Ever since the blacklist was established in 2013, it has evolved into a fundamental component of the social credit system and a valuable instrument for the judiciary. Individuals on the blacklist face limitations on indulging in lavish expenditures, such as purchasing plane and high-speed train tickets, staying at high-end hotels, enrolling in expensive private schools, and acquiring luxury vehicles.

Before inclusion on the list, the court must inform the affected individual or business of its ruling and its justification. Parties that have been blacklisted have the opportunity to have their names stricken from the list and sanctions revoked, provided they consent to settling their outstanding debt and committing to lawful behavior going forward.

In addition to the above, the Civil Aviation Administration and the National Railway Administration maintain no-fly and no-ride lists. These are lists of individuals prohibited from flying or taking the train. Disruptive behavior, such as physically harming transportation employees or fellow travelers, disregarding safety protocols, using counterfeit tickets, or smoking onboard, can land you on one of these lists. As a consequence, you may be barred from purchasing new tickets for a period of six to twelve months. Notably, being placed on this list has no broader implications for your personal or professional life.


Source: AIES Conference 

Regardless of one's stance on the infractions and penalties detailed, the centralized government's blacklists appear to possess a certain level of consistency and well-defined boundaries. In contrast, certain pilot cities' ad hoc blacklists lack uniformity and coherence, with no clear-cut parameters or limitations.

Various cities had numerous black and red lists, with their content and emphasis differing significantly from one city to another. To illustrate, in a particular inner Mongolian county, parents who sought to remove their children from local schools teaching Mandarin were allegedly intimidated by the prospect of being placed on a blacklist.

Amid the pandemic, certain cities put citizens on a blacklist for not adhering to mask-wearing regulations in certain urban areas. In Anqing, a resident was even ostracized for allegedly "spreading panic" after sharing footage of an ambulance transporting a person suspected of having contracted the virus. Mainstream Chinese media outlets have denounced these actions, deeming them capricious and unrelated to the principle of "social creditworthiness."

In Zhengzhou, the city authorities indiscriminately red-listed all hospitals handling pandemic victims, commending them for simply fulfilling their obligations. In Rongcheng, 75% of red-listed individuals earned their prestigious status due to their exemplary tax compliance. Similarly, roughly 75% of distinguished entities in Putian were red-listed for meeting food safety standards. 


Source: Mercator Institute for China Studies 

Beijing seemed dissatisfied with the situation and consequently released a policy document in 2020 aimed at enhancing the standardization of social credit and limiting the abuse of power by local officials. The updated guidelines emphasized that blacklists should be reserved for cases of significant harm, focusing on safeguarding information security and privacy. Additionally, the document underscored the importance of widespread agreement before implementing social credit measures, discouraged the arbitrary creation of new blacklists, and highlighted the need for a transparent process for black-listed entities to restore their credit standing.

A Rudimentary System In The 21st Century

One could easily view China's social credit system as an expansion of the surveillance state. The government could monitor and manipulate citizens with precision and ease through algorithms, artificial intelligence, massive data collection, and numerous cameras. This dystopian scenario appears plausible, given the government's penchant for control and access to the technological tools necessary to implement such a system on a massive scale.

Despite the prevailing notion, the facts don't support this assessment. It's striking that a government with extensive surveillance infrastructure relies on an astonishingly rudimentary social credit system, which relies more on antiquated technologies like fax machines and paper-based documentation rather than cutting-edge machine learning applications.

The social credit system's level of digital maturity is evident in official government documents, which repeatedly emphasize the necessity of building comprehensive databases and platforms that facilitate seamless information sharing. A notable challenge, however, is the lack of standardization in data presentation, with cities submitting reports in varying formats, including spreadsheets, news articles, and even JPEG images.

The pilot city initiatives gathered data through manual efforts, utilizing basic tools like Microsoft Excel and WeChat, resulting in inconsistent and uneven data quantities. For instance, in Anqing, a single department was responsible for a staggering 90% of all data accumulated under the social credit system. In contrast, in a metropolis with a population exceeding 9 million, numerous departments contributed a mere trickle of data, with fewer than 100 weekly entries.

The social credit system has taken the concept of big data to a new level, mainly due to the rampant inflation and the motivations of local officials to exaggerate their statistics. Impressive figures can boost a team's reputation and even lead to career advancement. However, a curious phenomenon has been observed: the more data collected, the fewer individuals are actually penalized, suggesting an inverse relationship between the two.

Initial obstacles have hindered the government's efforts to transition to digital systems. This slow progress is attributed to the absence of standard guidelines, a centralized data storage system, ambiguous credit classifications, and disparities in data collection practices across regions and institutions. Consequently, it's unsurprising that the capital has recently prioritized standardization and digitization.

However, suppose you believe this enables them to suppress individuals more effectively. In that case, it is essential to note that the disorganized, chaotic, and outdated execution of the social credit system has led to numerous negative consequences, such as unjust blacklisting of innocent individuals and contentious practices of gathering and evaluating behavioral information in trial cities. In every scenario, the central government in Beijing stepped in to limit the abuses carried out by out-of-control local authorities.

Beijing may not necessarily be portrayed as the positive force in this situation, as we will discuss shortly. However, it appears that the social credit system is becoming a permanent fixture, and streamlining and modernizing its application to eliminate its current chaotic state is not a terrible idea. Furthermore, those concerned about a surveillance state can take comfort in the central government's awareness of the risks of relying solely on automated decision-making processes.

China prioritizes human oversight in its social credit system, as demonstrated by a 2021 amendment to the administrative penalties law emphasizing the need for human review of digitally gathered evidence. Furthermore, as of 2023, most social credit-related decisions were allegedly made by human assessors rather than artificial intelligence.

Stay Vigilant

During a speech in 2018, former US Vice President Mike Pence connected the social credit system to China's surveillance State, describing it as “An Orwellian system premised on controlling virtually every facet of human life.” 

In truth, it is a public, somewhat transparent, and diminishing effort to enforce moral standards in the public sphere that is quite separate. While not entirely harmless, it is not as sensational as Pence and others have portrayed. The concept of a social credit score, which is largely exaggerated, has frequently been used to represent a frightening, techno-dystopian future. Over time, it has become a popular cultural reference and the only version of reality that people tend to recall.

It's common to see satirical posts on Chinese social media platforms ridiculing individuals who naively assume that a social credit system is fully operational. On Weibo, for instance, users have created humorous mock-ups of China's social credit app, displaying absurd scores like 726, accompanied by warnings of being under close surveillance as a "second-class citizen" or alarmingly low scores of 0, instructing the individual to surrender, or even a score of -278, demanding immediate execution.


Source: X 

Regrettably, the social credit system has garnered excessive attention, overshadowing the fact that China, similar to numerous other governments globally, possesses numerous more effective methods for widespread surveillance, counterinsurgency, countersubversion, political oppression, and social control that often operate covertly and outside the confines of laws and regulations. 

While China's social credit system is well-known, fewer people know about initiatives like Project Sharp Eyes, Golden Shield, the Integrated Joint Operations Platform, and Skynet. Unfortunately, freedom and privacy violations occur daily in China and globally, often flying under the radar, maybe because they just aren't as meme-able as the idea of social credit.

It's crucial that we approach all of these issues with a critical eye, accurately identifying and understanding their impact and origins. If we fail to think critically and look beyond the surface level of popular narratives and memes, we risk becoming vulnerable to a surveillance state that erodes our autonomy.

 


 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

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The Top Ten Cryptocurrency Blunders: A Must-Read Guide for All Investors

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The Top Ten Cryptocurrency Blunders: A Must-Read Guide for All Investors

Are you eager to maximize your returns in the cryptocurrency market? If so, it's crucial to avoid common pitfalls that could lead to significant financial losses. This comprehensive guide will delve into the ten most critical errors crypto investors often make, which can result in substantial monetary losses. By understanding and avoiding these mistakes, you can ensure that your investments not only avoid unexpected setbacks but also thrive, leading to significant profits that can potentially change your financial future.

#1. Not Doing Your Own Research (DYOR)

One of the most common blunders for investors is the lack of thorough research before diving into an investment opportunity. It's easy to get excited, especially when a friend boasts about a lucrative altcoin investment that promises astronomical returns. However, it's essential to avoid getting caught up in the frenzy and instead take a step back to educate yourself. 

This includes learning about reputable exchanges, secure cryptocurrency storage, and tax implications, as well as delving deeper into the specifics of individual crypto projects. By conducting your own research, you are taking control of your investments and empowering yourself with knowledge.

When evaluating research and projects, two crucial factors come into play. Firstly, verifying the project's authenticity and examining the token distribution is essential. To accomplish this, CoinmarketCap or CoinGecko can be used to analyze the coin or token. Delve into the data, focusing specifically on the price movement and trading activity. The trading volume should be substantial, indicating genuine interest and market participation. Additionally, the token should be listed on at least one reputable exchange.


Source: CoinGecko

With the basics covered, it's time to delve into more in-depth information from secondary sources. Explore cryptocurrencies on websites such as Messari, Binance Research, and CoinBureau, which provide comprehensive introductions to projects, their core teams, and objectives. Be sure to examine the profile section on Messari, which offers valuable insights into a project's background, token distribution, and other essential details.

It is essential to consider how tokens are allocated. It is favorable when tokens are distributed broadly among the community, indicating a healthy sign. Conversely, it raises concerns if a small group, often the founders, possesses most of the tokens. Additionally, it's essential to investigate the backgrounds and credentials of the founder, CEO, and other key team members. Videos featuring these individuals can provide valuable insight into their expertise and vision.


Source: Markethive.com

Previous interviews offer valuable insights into their progress in realizing their goals. Also, if they conduct regular meetings or webinars open to the public, it indicates transparency. Another key indicator of their credibility is their ability to follow through on their road map. At this stage, you should have gathered sufficient information to assess the project's authenticity and potential for long-term success.

#2. Opting For Inadequate Crypto Exchanges

Choosing the right exchange is a make-or-break decision. Many beginners and experienced cryptocurrency users fall into the trap of selecting the wrong exchange platform. The severity of this mistake can vary greatly, but it's crucial to start by verifying the exchange's authenticity. Unfortunately, many individuals are deceived by fraudulent crypto exchanges, underlining the need for vigilance in this crucial step.

Exercise caution when encountering sponsored advertisements for cryptocurrency exchanges, even when they appear on trusted news websites. Conduct thorough due diligence. Look into online discussions on Reddit, X, Bitcointalk, and other forums to see what users say about their experiences with these exchanges. 

Additionally, investigate the exchange's leadership, including the founders' backgrounds and the company's history. Just as you would carefully vet individual cryptocurrency projects, it's crucial to apply the same level of scrutiny when evaluating exchanges, particularly those that are less well-known.

Next, ensure the exchange aligns with your investment approach. This involves checking if the exchange provides the specific tokens you want to purchase. Most exchanges will meet your needs if you focus on investing in well-established large-cap tokens. However, if you're interested in smaller-cap tokens with greater risk but the potential for high returns, you'll need to be more discerning in choosing exchanges.

While specific cryptocurrency exchanges boast an extensive catalog of digital assets, others, like Coinbase, have a more limited selection, comprising only a few hundred options. Nevertheless, Coinbase's strict adherence to regulatory standards as a publicly traded company in the US ensures the implementation of rigorous security protocols. This sets it apart from many other exchanges, which lack similar oversight and may not inspire the same confidence level.

Beyond security and coin allocation, consider whether the exchange's features align with your trading style. As a beginner, you may prefer an exchange with a user-friendly interface. If you're more seasoned, verify that the exchange offers the advanced trading features you need. Many exchanges cater to diverse skill levels by providing basic and advanced platforms, but exploring your options is essential to finding the best fit.

Finally, ensure the platform you consider using accepts your currency and does not charge excessive trading fees. High fees can ruin a successful trading day, especially when more affordable options are available.

#3. Impulsive Decisionmaking With No Strategy

The third mistake to avoid is entering the crypto market without a strategic approach. As the saying goes, 'Failing to plan is planning to fail.' This adage holds particularly true in crypto, where impulsive decisions often lead to regret. By establishing a well-thought-out strategy, you can confidently navigate the market, making informed investment choices rather than relying on chance. With a solid strategy in place, you can feel secure in your decisions and confident in your ability to navigate the market. 

A solid strategy serves as a guiding framework, protecting you from making rash, emotional decisions and keeping you on track despite the influences of fear, uncertainty, and doubt (FUD) and the fear of missing out (FOMO). With a robust strategy and the discipline to stick to it, you can progress steadily without getting derailed.

Crafting a winning approach requires a tailored plan that suits your unique needs. Some general principles can serve as a guide. Start by setting clear and measurable goals rather than vague aspirations. Consider your comfort level with risk when setting these goals. For instance, someone in their early years without family responsibilities may be more inclined to invest heavily in cryptocurrency, whereas someone older with dependents may take a more cautious approach.

Regarding your cryptocurrency investments, you need to determine your comfort level with risk. Will you diversify your portfolio with smaller, more volatile altcoins, offering more significant growth opportunities but with higher uncertainty, or play it safer with established large-cap coins that provide more stability but limited upside? Additionally, should you hold onto your investments for the long term (HODL) or engage in active trading? This decision ultimately hinges on your personal risk tolerance and the trade-offs you're willing to make between security and potential returns.

Regardless of your investment approach, remember this crucial rule: never put in more money than you can comfortably part with, and refrain from taking on debt to fund your investments—it's simply not a risk worth taking. New investors, in particular, should resist the urge to amplify their bets with excessive borrowing, such as crypto leverage trading. Additionally, be sure to cash in on your gains periodically. Failing to do so is a common pitfall, so make it a deliberate part of your strategy, and you'll be grateful for it in the long run.

#4. Relying on a Centralized Exchange Instead of a Personal Wallet

Fourth on the list is a crucial security oversight: neglecting to self-custody one's crypto. To clarify, self-custody means having complete autonomy over your cryptocurrency by storing it in a personal wallet that only you can access and control. This approach is akin to keeping your physical cash in a personal safe rather than relying on a bank. For optimal security, self-custodial wallets are the recommended choice. Newcomers to the crypto world may wonder why they shouldn't simply store their funds on a centralized platform like Coinbase, Kraken, or KuCoin, but there are important reasons to avoid this approach.

Keeping some of your assets on these platforms for easy trading might be practical. However, there are risks when entrusting your assets to third parties online. Trusting the entity you are dealing with is essential, as some dishonest individuals are in the industry. A recent example is Sam Bankman Fried, who was once highly regarded in the crypto world but ended up causing significant financial losses to many. As a result, it's imperative to exercise extreme caution when dealing with online asset storage.

A second drawback of centralized exchanges is that, regardless of their trustworthy nature and rigorous security measures, they can never provide a guarantee against cyber-attacks. The cryptocurrency industry has witnessed a staggering $2.85 billion in losses due to theft from various exchanges and custodial services since 2012, demonstrating that no platform is entirely immune to breaches. Not even significant exchanges like Binance are immune, as evidenced by a hack they experienced in 2019 despite their robust security measures.

Cryptocurrency exchanges are attractive targets for cybercriminals due to the potential for substantial financial gains if their security measures are compromised. Malicious individuals seeking to take advantage of vulnerabilities in these platforms constantly threaten them. Additionally, regulatory uncertainties pose a risk for exchanges, as they may be subject to sudden closure or asset seizure by government authorities. An example occurred in 2021 when South Korea closed down 11 exchanges allegedly engaged in fraudulent activities.

Finally, there is a perpetual threat of financial collapse and insolvency. In such a scenario, users' assets could be at risk. The likelihood of this increases if an exchange fails to perform regular proof of reserve audits. Therefore, it is not advisable to keep assets on exchanges. Due to these concerns, the risks associated with storing assets on exchanges outweigh any potential benefits. As Benjamin Cowen, CEO of Intothecryptoverse.com, aptly puts it, "Treat exchanges like public toilets. Get in, do your business, and get out.”

So what should you do instead? You need to self custody your crypto by holding a non-custodial or self-custodial wallet. Non-custodial wallets are a broader category encompassing various wallets where users control their private keys. A non-custodial wallet can be browser-based or software-based, like Trust, Solflare, or Exodus, where users control their private keys. Although the wallet provider still bears some responsibility for safeguarding your assets, you have ultimate authority over your cryptocurrency.

Self-custodial wallets are a type of non-custodial wallet in which the user has complete control over their private keys and is responsible for managing their funds. They are hardware wallets like Ledger or Trezor in which the user has complete control over their private keys and is solely responsible for securing their assets. In both cases, the user controls their private keys and manages their funds. Still, the level of control and responsibility can vary depending on the type of wallet.

#5. Neglecting To Back Up Seed Phrases and Passwords

Another common security mistake is neglecting to create backups of seed phrases and passwords. A seed phrase is a set of words your cryptocurrency wallet generates and serves as the master key for managing and retrieving your funds. In the event of device failure, loss, or theft, your seed phrase is the only way to regain access to your assets stored in the wallet. 

Storing physical copies of your seed phrases and passwords may seem inconvenient to some people. However, considering the importance of safeguarding your finances, it is essential to prioritize security over convenience. It is crucial that these backups are kept in a tangible format. Avoid saving seed words digitally on your device at all costs, as this dramatically increases the risk of your cryptocurrency being stolen by malware or cyber criminals.

Consider choosing between a paper backup method or engraving the information on a steel card for added security. Ensure that you store this vital information in a secure location. Additionally, take into account the security measures for your cryptocurrency exchange accounts. Implement two-factor authentication, and remember to store the backup codes needed for account recovery securely. Losing access to your phone can lead to being locked out of your account, resulting in a cumbersome verification process to regain entry. Prevent this potential hassle by documenting and safeguarding the codes along with your seed phrases in a secure container or safe.

#6. No Risk Management Plan

Effective risk management is essential for achieving long-term success in the crypto market. It is commonplace to become impulsive and deviate from your initial investment strategy. Staying composed during a bullish market is crucial to avoid making hasty decisions. Therefore, having a risk management plan tailored to your investment approach is vital.

A crucial rule of thumb for all investors is investing only money you are comfortable potentially losing.  If you're an active trader, consider implementing risk management strategies such as stop-loss orders and profit-taking limits. These tools enable you to lock in gains when the market is favorable and limit potential losses when it turns sour. By doing so, you can avoid the need for constant market surveillance, providing peace of mind and a more hands-off approach to investing.

When managing risk, adopting a cautious mindset that extends beyond trading to include withdrawing your assets, also known as off-ramping, is essential. Many fall prey to a common mistake: sending funds to the wrong blockchain via an exchange. This mistake is easily preventable, but it can have irreversible consequences, and even with the help of wallet providers or exchanges, rectifying the situation is not always possible and can be highly stressful. To avoid this, take the precautionary step of sending a small test transaction to confirm the successful funds transfer. While this will incur some gas fees, it's a minor cost compared to the potential risks involved.

#7. Falling For Scams

Be cautious of fraudulent schemes, which are a significant concern in cryptocurrency and are closely related to managing risks. Conducting thorough research and remaining vigilant are essential to avoid falling prey to such schemes. Adopt a skeptical mindset and stay alert to potential red flags. Empowering yourself with knowledge of common fraudulent tactics is key to protecting your investments.

Some typical fraudulent schemes include Ponzi schemes, which rely on flimsy foundations and promise high returns but fail when new investments dwindle. Scammers may also attempt to attract victims to questionable investment platforms where funds are deposited but never returned. Another tactic is phishing attacks, where fraudsters create fake websites or emails to deceive individuals into revealing confidential information like private keys or wallet passwords.

Another insidious practice is pig butchering, a deceitful scheme in which individuals build a fake online connection with their targets and then manipulate them into divulging sensitive financial details or transferring funds. This deceptive tactic, akin to the tactics of the "Tinder Swindler," is prevalent in financial fraud. Moreover, cryptocurrency scams frequently exploit the influence of celebrities, using their images and names to deceive unsuspecting followers. Falling prey to such scams can have devastating consequences, not only draining your finances but also taking a heavy emotional toll on your well-being.

#8. Falling For FOMO 

The following three mistakes are rooted in emotional biases. Although intuition has its place in some regions of life, it's essential to separate emotions from rational thinking when making investment decisions. The fear of missing out (FOMO) is a common psychological trap, and it can cleverly manipulate investors into making impulsive choices.

Theodore Roosevelt once pointed out the negative impact of comparing oneself to others on happiness, quoting, “Comparison is the thief of joy.” “This concept can also be applied to investing. During times of positive market trends and when your peers are succeeding, it can be tempting to abandon one's investment strategy and lose focus.

The proliferation of social media has exacerbated the problem, as overnight successes and compelling forecasts of price surges create unrealistic expectations. For instance, many individuals were convinced that Bitcoin would soar to $100,000 during the previous market upswing despite falling short. The allure of this narrative led people to hold onto their investments for too long, neglecting to cash in when they should have. 

This reinforces the importance of developing a strategy tailored to one's risk tolerance and grounded in thorough research rather than following the crowd. Tuning out the noise and focusing on your approach is essential, a lesson closely tied to the following common pitfall: having inflated expectations, particularly among those new to the market.

#9. Inflated Economics

High hopes can sometimes result in significant letdowns. Viewing cryptocurrency investments as a means to rapid wealth can result in severe financial setbacks when reality fails to match these lofty expectations, particularly in the short term; investors often make ill-advised choices. Such mistakes include impulsively selling during market downturns or investing in high-stakes assets without adequately evaluating the risks.

It is crucial to have a solid strategy and adhere to it in order to succeed. By remaining patient and disciplined, your chances of success are higher. Should you experience good fortune in cryptocurrency, you must exercise humility and discretion. Boasting about your wealth can attract unwanted attention, and there have been disturbing instances where individuals who publicly flaunted their crypto gains online became targets of criminal activity. It's wise to keep your accomplishments private and avoid drawing unnecessary attention to yourself.

#10. Quitting Prematurely

Lastly, a common pitfall is surrendering too soon, which can cause investors to forfeit potential profits. The market's tendency to experience significant fluctuations can be intimidating, and those not prepared for such instability might quickly sell their assets during downturns, putting themselves at risk of losses. Exiting too early could result in missing opportunities for potential gains.

Successful investors are resilient and endure challenges, adapting their strategies and gaining knowledge along the way. Having a long-term perspective is key. While prices may experience significant fluctuations in the short run, it is essential to maintain a broader view. Viewing a bear market from a longer-term standpoint can offer a more positive outlook. 

Patience and holding onto investments can eventually lead to significant gains. Sometimes, you just have to “hold on for dear life” and wait for your fortunes to moon. Finding a balance and following the profit-taking strategy mentioned earlier is prudent. It is crucial not to let short-term market trends distract you from your crypto journey and to keep the perspective of how far the cryptocurrency industry has come since its inception. 

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 


 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

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The Fourth Bitcoin Halving is done How Has It Stacked Up Historically? What can you expect in the coming months?

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The Fourth Bitcoin Halving is done. How Has It Stacked Up Historically? What can you expect in the coming months? 

The Bitcoin halving, a highly anticipated and pivotal event in the cryptocurrency industry, has finally taken place. As history has demonstrated, when the supply of new BTC is reduced while demand remains steady or increases, Bitcoin tends to reach record levels, significantly impacting the entire cryptocurrency market.

The Bitcoin halving event has sparked concerns about its potential impact on Bitcoin miners, which could, in turn, affect the value of the cryptocurrency and the broader market. This article explores the Bitcoin halving, examining its historical effects on the crypto market and its implications from the most recent halving in April 2024.

What Is The Bitcoin Halving?

It's important to differentiate between Bitcoin, the network, and BTC, the digital currency, to understand Bitcoin's halving. The Bitcoin network is a series of data blocks, each with a record of BTC transactions and a link to the previous block, forming a chain-like structure called a blockchain.

Bitcoin (BTC), on the other hand, functions as a virtual medium of exchange that incentivizes specialized computers, known as miners, to gather and validate outstanding Bitcoin transactions. These transactions are then bundled into a block and linked to the decentralized ledger, referred to as the blockchain. As a result of this process, the miner is rewarded with a predetermined quantity of Bitcoin.


Source: Techopedia

The BTC reward is sourced from two different places. The initial source is the coinbase transaction, also known as the block reward, which is the origin of the name for the Coinbase Exchange. The second source of rewards is miner tips, which are transaction fees paid by users who attach BTC tips to their transactions to expedite their inclusion in blocks.


Source: bitcoin.com 

A fascinating point to note is that Bitcoin initially did not involve any transaction fees due to the presence of primarily empty blocks with no transactions. However, as the use of Bitcoin expanded, the number of transactions rose, leading individuals to add fees to guarantee the inclusion of their transactions in subsequent blocks.

Unlike transaction fees, which fluctuate, block rewards are predetermined and hardcoded into the system. The generation of new Bitcoins is automated. Initially, when Bitcoin's first block was extracted in January 2009, the reward was 50 Bitcoins; however, it has since decreased to 3.125. 

This reduction results from the Bitcoin halving mechanism, which systematically slashes the block reward in half every four years. The initial block reward reduction occurred in November 2012, followed by subsequent reductions in July 2016 and May 2020, with the most recent one occurring on April 19th of this year. 


Source: Coindcx

According to fundamental economic principles, prices tend to rise when demand remains steady or grows while supply decreases. In the context of Bitcoin's halving, a 50% supply cut should theoretically lead to a doubling of its price. However, past trends have shown that the price surge following each halving has been even more dramatic, primarily due to the concurrent rise in demand for the cryptocurrency.

Let's take a step back to appreciate the remarkable growth of Bitcoin. When it first launched, only a small group of around a few dozen individuals owned BTC. Fast forward to today, and that number has skyrocketed to over 200 million people worldwide. This surge in adoption has had a profound impact on the value of BTC, causing its price to rise exponentially. What's truly astonishing is that since its humble beginnings in July 2010, when it was worth nine cents, BTC has returned a staggering 720,000 times its initial value. This historical growth is a testament to the potential of Bitcoin and its ability to generate significant returns for investors.

What Has Been the Outcome of Previous Halving Events?

The results of past halving events have shown significant price increases for Bitcoin. For instance, after the first halving in November 2012, Bitcoin's price surged from about $11 to $1,100 in November 2013. Similarly, following the second halving in July 2016, the price jumped from around $650 to almost $20,000 by December 2017. In the third halving, Bitcoin reached over $69,000 the following year.

Historical examples indicate that the decreased availability of newly generated Bitcoins following a halving event may result in greater scarcity and, thus, elevated prices. It is crucial to recognize that although a relationship between these factors exists, it does not necessarily indicate a direct cause-and-effect relationship. Multiple elements, such as market sentiment, adoption patterns, and macroeconomic circumstances, also play a role in influencing price fluctuations.

This brings us to the current halving, with Bitcoin's widespread recognition reaching an all-time high. Some pundits believe that this increased awareness has already been factored into the current market price, leading to a relatively stable future for BTC. On the other hand, others contend that the introduction of spot Bitcoin ETFs has generated a consistent flow of investment, which, when paired with the impending reduction in new coin supply, will likely trigger a rapid and dramatic surge in price following the halving.

What About The Bitcoin Miners?

Halving Bitcoin has an immediate and significant effect on miners, who experience a 50% reduction in their earnings from block rewards. This drastic cut can alter the profitability of mining operations, potentially leading to a shift in the cryptocurrency mining landscape. Following the latest halving event, the payout for successfully mining a Bitcoin block dropped from 6.25 BTC to 3.125 BTC.

About a week before the halving event on April 13, the value of a single Bitcoin plummeted from over $67,000 to $62,000. At that time, with the block reward standing at 6.25 Bitcoins, an individual miner would receive a payout of roughly $387,500 for each block of Bitcoin successfully mined.

By April 20, the bitcoin price had stabilized at around $64,000, meaning the new 3.125 BTC reward was roughly $200,000. However, reducing mining rewards could pose difficulties for smaller-scale mining operations in the post-halving period: the increased processing power and energy required to produce new coins pressure miners' profit margins. Numerous predictions have been made that several major Bitcoin miners will struggle to stay afloat following the halving event.

The established, more prominent mining operations should have the financial means to upgrade their equipment and explore more efficient power options. Others believe that given their ample time to adapt to the impending Bitcoin halving, it's reasonable to expect them to be prepared. On the other hand, the halving event poses an existential threat to smaller, less-resourced mining entities, making their survival increasingly uncertain with each successive occurrence.

The Bitcoin halving in April 2024 stands out from its predecessors. Unlike in the past, the crypto landscape has shifted due to the influx of new mining operations, leading to decreased profitability as the growing number of miners share the same rewards pool. 

Another notable shift this time is that the block reward is no longer miners' primary source of income. According to reports, mining companies are expanding their business scope beyond traditional Bitcoin mining to explore alternative revenue streams, venturing into complementary areas such as energy harvesting, data warehousing, and AI development to boost their earnings.

So, How High Could Bitcoin Go?

Some experts believe that introducing ETFs has opened the floodgates to a new wave of investment that could propel Bitcoin's price to unprecedented heights. Moreover, these ETF inflows may also serve as a buffer, mitigating the severity of any future downturns in the cryptocurrency's value. Historically, Bitcoin has experienced drastic declines of over 70% following market peaks. However, the subsequent correction may be less severe, with more seasoned investors entering the fray and accumulating more significant stakes in BTC.

If ETFs are not the driving force, central banks could step in to make an impact instead. In a new development, central banks can allocate 2% of their balance sheets to cryptocurrency starting January 1, 2025. In 2022, the Central Bank of Switzerland expressed interest in purchasing BTC. A significant BTC purchase by a major central bank might trigger a peak in BTC's price. On the other hand, it could also signify the start of the blow-off top phase of the crypto bull market cycle, similar to when MicroStrategy acquired BTC in mid-2020.


Source: Coinmarketcap

Historical Decline Of Bitcoin Dominance. What That Means For Altcoins

The impact of Bitcoin's halving on the broader cryptocurrency landscape is closely related to the shift in market dynamics that follows this event. Analyzing the changes in Bitcoin's market share after the halving is essential to understanding this phenomenon better. This market share, known as Bitcoin dominance, represents the proportion of the total market capitalization of all cryptocurrencies attributed to Bitcoin alone. However, it's worth noting that historical data on Bitcoin dominance is limited and does not extend back to the first-ever Bitcoin halving in November 2012.

It's probable that altcoins still needed to hold a substantial portion of the market during that time, which limited their influence. Additionally, the entire cryptocurrency infrastructure was still in its early stages, making this point somewhat moot. What's intriguing is that following the second Bitcoin halving event in July 2016, Bitcoin's market dominance decreased by around 4%. This implies that investors shifted their focus away from Bitcoin and towards altcoins. Notably, even when Bitcoin's value plummeted by 40%, its relative strength compared to altcoins failed to rebound.

In other words, BTC is considered the go-to choice for cryptocurrencies' safety. Therefore, a significant 40% drop in BTC's price should have increased BTC's dominance since other cryptocurrencies would have likely decreased in value as well, causing investors to move their funds into BTC. The fact that this shift did not occur could be due to the overall immaturity of the cryptocurrency market.

Despite this, Bitcoin dominance plummeted by 60% during the 2017 cryptocurrency boom, dropping to approximately 40% of the overall market capitalization. Notably, this decline occurred towards the peak of the 2017 cycle, specifically in December 2017, indicating a high level of speculation in alternative cryptocurrencies at that time.

Following the third Bitcoin halving event in May 2020, BTC dominance dropped by 14%, a threefold more significant decrease than the aftermath of the second halving. This considerable decline implies that investors shifted their funds away from Bitcoin and into altcoins even faster after the third halving. Similarly, during the 2021 crypto bull market, Bitcoin's market share plummeted by approximately 35%, falling to around 40% of the total market capitalization, mirroring the trend seen in 2017.

In contrast to the 2017 scenario, this phenomenon occurred earlier in the cycle, emerging around April 2021 and persisting until April 2022. This prolonged rotation into alternative cryptocurrencies implies a more enduring trend than the 2017 cycle, which is reasonable considering that most alternative cryptocurrencies lacked significant utility until 2021.

The brief historical data indicates some unique trends in altcoin dominance for this cycle. BTC's dominance could decrease significantly, up to 40% after the halving, but only around 10% as we near the next cycle's peak. Additionally, altcoins may demonstrate greater resilience during the next crypto bear market.

The significant 40% decrease in BTC's dominance may seem surprising. Still, it becomes more understandable when considering the rising influence of stablecoins and the recent approval of spot Ethereum ETFs. As we move closer to the next bullish crypto market phase, the market capitalization of stablecoins is expected to see substantial growth, while ETH's market cap is likely to increase following the introduction of spot Ethereum ETFs.

How High Will Altcoins Go?

The critical factor is the extent and duration of the rally that altcoins may experience. It is important to note that the prices of altcoins are closely linked to the price of BTC. Altcoins perform well when BTC's price is stable (trading sideways) or increasing slowly. This scenario tends to prompt traders to seek opportunities in more speculative cryptocurrencies due to boredom.


Source: Investopedia

The experts at Coinbureau recommend analyzing altcoin performance compared to Bitcoin by applying conventional stock market measures. They suggest looking at the "Beta to Bitcoin" concept to gauge the volatility of altcoins with BTC. As a general guideline, altcoins with a market capitalization over $1 billion tend to have a beta of 2, meaning they are twice as volatile as Bitcoin. Those with a market capitalization under $1 billion have a beta of up to 4, while those with a market capitalization under $100 million have a beta of around 8, indicating significantly higher volatility compared to Bitcoin.

So if BTC’s price goes up by 2.5x between now and the cycle top, some large capital coins should eventually go up by around 5x, some mid caps should eventually go up by around 10x, and some small caps should eventually go up by around 20x. It is important to note that this is a general guideline and not a definitive prediction for every coin. It is crucial to emphasize the term "eventually" because these projected outcomes are not immediate and may not unfold simultaneously for all alternative coins.

It's a given that the growth won't be a steady upward trajectory; instead, there will be significant downturns and reversals, which will become more pronounced as the market reaches its peak. If Coinbureau's forecasts about dominance hold true, altcoins may experience prolonged periods at or near their record highs, unlike in past cycles. Conversely, this implies that they will face similar declines during the next downturn in the cryptocurrency bear market.

However, a catch could be that this phenomenon may be limited to well-established alternative cryptocurrencies like Ethereum, which have already inspired their own exchange-traded funds (ETFs) and could consequently exhibit the previously mentioned dynamics: unexpected high points, reduced volatility in downturns and potentially propped up by central banks. 

How Can You Take Advantage of Potential Gains?

It is essential to be aware of upcoming opportunities to maximize potential profits. There are three critical steps to take advantage of these gains. The initial step involves recognizing the key narratives expected to dominate the upcoming cryptocurrency bull market. This article explores the narratives likely to experience significant growth in the next bullish cycle.

Your next step is establishing a presence on the most suitable cryptocurrency trading platforms. The third is to remember that not all altcoins will surge in value simultaneously. If you notice specific cryptocurrencies surging in a particular narrative, avoid rushing to invest in them. Look for other cryptocurrencies within that narrative that have yet to experience a rally. 

Likewise, if your portfolio's cryptocurrencies are underperforming compared to the broader market, they may be experiencing a temporary delay. While it's true that some may never recover if you've conducted thorough research, likely, this won't be the case, and they'll eventually catch up.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

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How To Add Hivecoin To Three Non-Custodial Software Wallets

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How To Add Hivecoin To Three Non-Custodial Software Wallets 

Understanding the Role of a Crypto Software Wallet

A software or digital wallet is a powerful tool that simplifies and empowers your cryptocurrency experience. It's a handy app or site that securely stores your cryptocurrency keys, always at your fingertips, ready to be accessed anytime, anywhere with an internet connection.

This convenience puts you in the driver's seat of your digital assets, allowing you to manage them with ease and confidence. Importantly, non-custodial means you have complete control over your keys and funds, unlike custodial wallets, where a third party holds your keys.

Software wallets play a vital role in your cryptocurrency journey. They don't store your crypto; your coins are stored on the blockchain. Instead, they provide you with access to your passkeys, enabling you to transact with your digital currencies. This accessibility allows you to buy, sell, trade, or transfer crypto from your computer or mobile device without needing a physical device. Moreover, these software wallets are fortified with robust security measures, providing protection surpassing centralized exchanges. 

Today, we’ll explore three non-custodial software wallets that allow you to list and transact with Hivecoin. Hivecoin is a crypto asset that is part of the Markethive community. It is instrumental in creating transactional activity within the community as we prepare to list Hivecoin (HVC) on crypto exchanges, where it will be available for free market trading. 

Upon setup, each wallet prompts you to save a secret recovery phrase, a unique combination of 12 words. This phrase, best stored on paper and kept secure, not on your computer, serves as your key to access your wallet from any device. This feature ensures that even if you lose your mobile phone or access to your computer, your digital assets remain secure.

Solflare Wallet

The Solflare wallet is a comprehensive crypto wallet offering various features. It allows you to send, receive, and securely store tokens on the Solana blockchain. It also grants access to decentralized applications (dApps) on Solana, including decentralized finance (DeFi) platforms, decentralized exchanges (DEXs), and decentralized social media platforms. (DeSo) Additionally, Solflare offers a swap function that allows you to swap between tokens within your wallet.

Key Features

  • Send, receive, and store tokens on the Solana blockchain
  • Access to decentralized applications (dApps) on Solana
  • Support for staking Solana to a validator of your choice
  • Swap function for swapping between tokens within the wallet
  • Compatible with hardware wallets like Ledger
  • Available as a desktop and mobile browser app, as well as a mobile app on the App Store and Google Play
  • User-friendly interface with easy onboarding and advanced features for experienced users

Key Benefits

  • Secure and robust crypto wallet for Solana users
  • Easy to use, with a user-friendly interface and advanced features for experienced users
  • Supports multiple platforms, including desktop and mobile devices
  • Compatible with hardware wallets like Ledger for added security
  • Offers a swap function for swapping between tokens within the wallet

How to Add the Hivecoin Token to the Solflare Wallet

Once you’ve downloaded the Solflare wallet onto your device, which is comprehensively explained in this video, you can add the Hivecoin token (HVC) to your wallet. Adding a new asset to your wallet is a simple process. 

On your Portfolio homepage, you'll find an option to "Add new asset," as shown in the image below. Clicking on this will prompt you to enter the details of the new asset, including its token address and number of decimals. Once listed, you can send and receive Hivecoin to the Markethive Wallets and associated wallets where the HVC token is listed. 

The Hivecoin mint address is APRXuct2fy7yXeSPcS5r4pTdh6P34xhqj1Pio1dyc1j6
The token's representation has nine decimal places. Below is an image of Hivecoin’s mint token address and decimal places on Solana Explorer. 


Source: Solana FM Explorer

Exodus Wallet

The Exodus wallet is a popular cryptocurrency wallet with a user-friendly interface and a wide range of features for managing and securing digital assets. Here are some key points about Exodus Wallet:

Key Features

  • Exodus is a non-custodial wallet, meaning users have complete control over their private keys and funds. To protect user assets, the wallet uses advanced security measures, including multi-sig technology and cold storage.
  • Exodus supports over 319 cryptocurrencies and offers features like in-app swaps, staking, and NFT marketplaces. It also supports Trezor Model T and Trezor One hardware wallets for offline cryptocurrency storage.
  • Exodus's user interface is designed to be easy to use, even for beginners. The wallet offers a clean and intuitive design, making navigating and managing digital assets simple.
  • Exodus is available on multiple platforms, including desktop (Windows, macOS, and Linux), mobile (iOS and Android), and browser extensions (Chrome and Brave).
  • Exodus has received positive reviews from users and critics alike, with many praising its ease of use, security, and feature set.

Key Benefits

  • Easy to Use: Exodus is designed to be user-friendly, making it easy for beginners to get started with cryptocurrency.
  • Security: Exodus uses advanced security measures to protect user assets, including multi-sig technology and cold storage.
  • Comprehensive Support: Exodus supports over 319 cryptocurrencies, making it an excellent option for users who want to manage various digital assets.
  • In-App Swaps: Exodus allows users to swap between cryptocurrencies within the wallet, making managing and diversifying their portfolios easy.

This short video explains how to download the Exodus wallet on your mobile phone, and here is a brief tutorial illustrating the desktop download. You can then synchronize both wallets.   

How to Add the Hivecoin Token to the Exodus Wallet

Once downloaded, you can add The Hivecoin token by scrolling down on your Portfolio page and clicking “+ Add More,” as shown above. 

That will take you to the Assets page. Click on the three dots next to ‘show all, ' and select “Add Custom Token,” as shown below. 

First, select the Solana Network, click Search, and paste the HVC mint token address. The Hivecoin mint address is APRXuct2fy7yXeSPcS5r4pTdh6P34xhqj1Pio1dyc1j6

Click on the Hivecoin display banner. A pop-up will appear asking to Add Hivecoin?  Click on ADD TOKEN. A message appears: “You’ll be able to send and receive this token.” 

Trust wallet

The Trust Wallet is a multi-chain self-custody cryptocurrency wallet and secure gateway to thousands of Web3 decentralized applications (dApps). With over 100 million users, Trust Wallet is one of the market's most popular and trusted cryptocurrency wallets.

Key Features

  • Trust Wallet supports over 100 blockchains, including Bitcoin, Ethereum, Solana, Cosmos, Optimism, and many more.
  • Trust Wallet allows users complete control over their digital assets, ensuring the security and ownership of their cryptocurrencies.
  • Trust Wallet provides a built-in browser for accessing and interacting with decentralized applications (dApps) on the Web3 ecosystem.
  • Trust Wallet lets users store, send, and receive non-fungible tokens (NFTs).
  • Trust Wallet supports various decentralized finance (DeFi) and game finance (GameFi) protocols, enabling users to participate in DeFi lending, borrowing, and gaming.

Key Benefits

  • Ease of use: Trust Wallet is designed to be user-friendly, making it easy for new users to get started with cryptocurrency and Web3.
  • Security: Trust Wallet prioritizes security, providing a secure gateway to the Web3 ecosystem and protecting users’ digital assets.
  • Community-driven: Trust Wallet has a large and active community that strongly emphasizes user support and collaboration.

Here is a step-by-step tutorial on downloading the Trust wallet on your mobile phone and using it as an extension in your browser. 

How to Add the Hivecoin Token to the Trust Wallet

Again, it’s simple to access by clicking “Manage Crypto” at the bottom of your app extension on your browser. Enter the Hivecoin mint address, which is APRXuct2fy7yXeSPcS5r4pTdh6P34xhqj1Pio1dyc1j6. It’s also known as the contract address. It will then appear as shown in the image below. 

A Message To All Markethivers

To transact using any wallet, including the Markethive wallet, you must have a small balance of Solana’s Token, SOL, for transaction fees. These fees are minuscule, so a little bit of SOL goes a long way.  

Take the first step towards energizing our blockchain by acquiring one or more of these wallets, and let's work together to galvanize our Hivecoin network through frequent transactions. Every exchange of Hivecoin serves as a catalyst, stimulating community interaction and fortifying the connections that unite us.

The frequent exchange of Hivecoin within and beyond the Markethive network has a profound impact. Doing so fosters a thriving and dynamic blockchain ecosystem, bolstering its strength and adaptability. Additionally, it demonstrates Hivecoin’s real-world value and appeal among our community members, highlighting its practical uses and popularity.

This intensified participation significantly increases the token's worth and is crucial in furthering Markethive's vision. As it stimulates more activity on the blockchain, it strengthens Markethive's efforts to list Hivecoin on leading exchanges, ultimately expanding its presence and capabilities beyond the Markethive ecosystem.

Become a valued member of the Markethive Community Group and play a pivotal role in influencing Hivecoin's development within the dynamic Markethive network. Once in the group, you can send Hivecoin back and forth to other members. Enter your Hivecoin wallet address on the post with an active thread, and other members will send HVC to your wallet. You can then reciprocate by returning the HVC to the specific members. When interacting with members, quoting your HVC wallet address each time is advisable. 

Additionally, To increase your Hivecoin holdings, make a habit of visiting our faucet every day at https://gotco.in. Simply input your wallet address and complete the captcha to receive a reward of 0.00001 HVC. This wallet address can belong to your Markethive wallet or any other one you own. This faucet is just one of the many that Markethive plans to introduce to support our operations and make it convenient for everyone to access.


 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

 

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The Causation Of Financial Nihilism Is Globalization Is This The End Of Globalism?

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The Causation Of Financial Nihilism Is Globalization. Is This The End Of Globalism? 

For die-hard cryptocurrency enthusiasts, the drive to invest often stems from a deep-seated conviction that it's the sole path to achieving financial success. This sentiment is widespread, particularly among younger age groups. An increasing number of individuals are convinced that the only route to accumulating substantial wealth is to take bold risks with their limited financial resources, and this mindset is gaining momentum. Interestingly, this mindset has a distinct label: financial nihilism. This trend has been gaining traction over the years and experienced a sharp surge following the pandemic, primarily due to the influx of pandemic-related stimulus funds. 

The underlying principles of financial nihilism have the potential to impact societal dynamics and market performance significantly. In this discussion, we'll delve into the specifics of this mindset, its origins, the consequences of holding onto it, and the benefits of resolving it. We'll also suggest strategies for coping with these challenges in the meantime.

What Is Financial Nihilism?

Financial nihilism refers to a mindset that suggests achieving financial success requires taking drastic, high-risk gambles with limited resources. This term, introduced by entrepreneur and podcaster Demitri Kofinas, has been gaining traction, especially in cryptocurrency. 

Demitri's original definition of financial nihilism diverges from the abovementioned understanding. According to Demitri, financial nihilism is the belief or the realization that there is a disconnect between how much something costs and how much it's actually worth. 

The housing market provides an excellent illustration; social media has been flooded with images of residences in city dwellings like Toronto, London, Sydney, and New York City that boast astronomical price tags despite their subpar condition. Conversely, other online posts have drawn attention to the fact that these properties are priced similarly to authentic, centuries-old castles, prompting many to question the value proposition.

Another notable illustration of this phenomenon is the stock market, where most shares are valued significantly higher than the earnings of their respective companies. This trend is even more pronounced in crypto. A striking example is Dogecoin, which currently boasts a market capitalization surpassing the media giant Warner Brothers. 

Meanwhile, the cost of housing, stock prices, and the worth of meme coins continue to soar. Whenever it seems like this economic bubble is on the verge of collapse, governments and central banks intervene to reinflate it, ultimately widening the wealth gap between the affluent and the disadvantaged.


Source: Kirupa

This raises the issue of how the disconnect between price and value originated. According to Demitri, the root cause lies in globalization. For the context of this article, consider globalization as an economic approach that spans the world rather than individual nations. In essence, this involves relocating business operations from countries with high labor costs to those with lower costs, thereby reducing expenses and boosting profit margins.

Globalism has significantly impacted the world since the late 1980s, although it may not be immediately apparent. One critical effect is the notable drop in prices of many goods and services, which benefits the general population by allowing them to purchase more items than before. Additionally, globalism has led to increased financial gains for influential individuals. Furthermore, it has played a role in maintaining low interest rates, especially in Western countries.

This is because the nations selling goods to Western countries used the proceeds to purchase Western government debt, thereby keeping interest rates low. This situation benefited ordinary individuals by allowing them to access more borrowing opportunities. Still, it has been even more advantageous for influential individuals who can borrow significantly more.

Unlike ordinary individuals who use borrowed funds to acquire consumer goods, influential individuals invest in assets, leading to two notable consequences. Firstly, the prices of essential assets, such as housing, have increased at a rate surpassing wage growth, while the costs of most consumer goods have declined due to international outsourcing. This disparity has resulted in the current disconnect between asset values and the overall economy. 

Secondly, this phenomenon has led to an unusual wealth accumulation among a select few powerful individuals who have greatly benefited from globalization, earning them the label of "globalists." Unsurprisingly, many globalists hold leadership positions or have significant investments in the world's largest corporations.

In past videos, Demitri pointed out that a small group of powerful elites have accumulated vast wealth and influence, enabling them to establish parallel systems of governance that wield more power than democratically elected governments. The World Economic Forum is a prime illustration of this phenomenon, and it's just the tip of the iceberg. 

By their very nature, these parallel institutions exist to promote the elite's agenda rather than serve the needs of ordinary citizens. Consequently, a significant gap has emerged between the interests of the average person and those of their governments, whose policies are ultimately shaped by the dictates of these globalist institutions.

The Effects Of Financial Nihilism On Society

Now that we've identified the roots of financial nihilism, we can delve deeper into its far-reaching consequences on society, the economy, and beyond. As highlighted in a recent article by Travis Kling, Founder and Chief Investment Officer of crypto VC firm Ikigai Asset Management, who has been instrumental in bringing the concept of financial nihilism to the forefront, he emphasizes the close relationship between financial nihilism and populism, which he defines as the perception that influential individuals are neglecting the needs and concerns of ordinary people.

This concept is closely related to global powers' influence and underlying agendas. Travis also emphasizes the importance of examining the root causes of financial nihilism. The stark disparity between housing costs and average earnings is a prime illustration. Specifically, in the US, the median home price is a staggering 7.5 times higher than the median income, a telling indicator of the issue.

Take a step back and look at the bigger picture: according to recent findings, homeownership has become an unattainable dream for 99% of Americans. Travis astutely observes that the massive financial and monetary measures implemented in response to the pandemic have exacerbated this issue, leading to a surge in financial nihilism. As a reminder, approximately $5 trillion was allocated towards pandemic relief, based on official records. Although a significant portion of this funding was distributed to individual citizens, most people went on to spend this money at the mega-corporations that belong to the globalists. 

The concept of universal basic income (UBI) is fundamentally flawed. The government's handouts would ultimately benefit wealthy elites, a point also raised by Demitri. Furthermore, the pandemic-related restrictions led to the demise of many small businesses, which were forced to shut down, while large corporations were allowed to continue operating. The policy decision to protect big business at the expense of small enterprises during the pandemic is a stark illustration of how the interests of powerful global elites often shape government policies.

The massive monetary stimulus during the pandemic resulted in the wealthiest 1% of the population now possessing more wealth than the entire middle class combined. This growing disparity in wealth distribution has been a persistent trend since the advent of globalization in the late 1980s, although it has intensified in recent years, potentially by design.

To reinforce his argument, Travis highlights two striking facts. Firstly, Millennials possess a smaller proportion of real estate value than previous generations of the same age. This means that when Baby Boomers and Gen X were Millennials' current age, they had a more significant stake in the property market. Secondly, Travis points out that total household wealth has increased sevenfold since the 1980s, yet Millennials only control a mere 9%. In contrast, Gen X holds 21%, and Boomers hold a substantial 51%, likely due to their greater advantage from globalization.

Initially, globalization positively impacted the average individual, reducing consumer goods prices and affordable asset values. However, over time, the benefits of globalization began to erode as ordinary people's wages failed to keep up with the rising cost of assets, mainly due to the outsourcing of labor and asset acquisitions by global players. This disparity is illustrated in the comparison between median income and the S&P 500, as shown in the graph below. 

During the late 1980s and mid-1990s, median income remained relatively stable in relation to the S&P 500. However, it experienced a sharp decline following the dot-com bubble in 2001 and again after the 2008 financial crisis.

So What Can We Do About It? 

Faced with such disheartening realities and numbers, it's only logical to wonder what steps can be taken to address the issue. According to Travis, who approaches this problem from a financial nihilist standpoint, stipulates,

“You take bigger risks. You feel driven to take bigger risks to try and leapfrog from your current financial position (mostly paycheck to paycheck; buying a home feels nearly impossible; saddled with student loans; salary increases not keeping up expense increases) to something more tenable. More comfortable. More baller. So you gamble. You. F**king. Gamble. You look anywhere for anything that can give you a 5:1, 10:1, 50:1 type of payout. Naturally, you look to literal gambling, which is growing at a breakneck pace.” 

Travis cites a surge in gambling revenue to bolster his argument, which is experiencing an even more dramatic upward trend than Nvidia's stock performance. Notably, US casinos reached unprecedented revenue highs in 2023. Travis further supports his claim with detailed statistics, including the volume of wagers on specific events such as the Super Bowl and data on zero-day-to-expiry options.

For those new to the concept, zero-day-to-expiry options enable wagering on a stock's direction by the day's close. These options have seen a meteoric rise, now accounting for 43% of S&P options trading volume, a surge that began during the pandemic. Travis suggests that a subconscious awareness of the drastic instability in current fiscal and monetary policies drives the typical individual to engage in this behavior. What's intriguing is that this average person may not even realize the underlying macroeconomic factors at play but instead is guided by a gut feeling that something is amiss.

Travis injects cryptocurrency into the discussion, calling it "The Roman Colosseum for asset price and risk-taking distortions.”  He notes that specific cryptocurrencies have yielded returns far surpass those of any zero-day-to-expiry option or meme stock. To drive his point home, Travis cites several examples. He then declares that crypto is, at its core, “ A populist movement. A countercultural movement. A YOUNG PERSON’s movement. Boomers don’t get it. It’s “our” thing. It’s the one thing we can actually beat Boomers at (so far).”

He anticipates that Millennials will inherit the $53 trillion wealth held by Boomers and invest a significant portion of it in cryptocurrency. In the near future, he foresees that this cryptocurrency trend will reveal unprecedented reckless actions. This projection is unfolding as anticipated, as various meme coins with little value are reaching market capitalizations in the billions of dollars.

The prospect of this scenario defining most of the crypto bull market is unsettling. Travis advises giving in and embracing it rather than fighting it. “You can wish that weren’t the case. You can wish the crypto market would be more sound-minded. More sober. More focused on providing solutions to real problems. More rooted in reasonable valuation methodologies. Less bubble-ish. But I believe those wishes will be left ungranted.”

This assumes that the situation will persist if the root causes of financial nihilism are not dealt with. Yet, there is a growing public awareness regarding the WEF's questionable motives and associated institutions’ less-than-favorable agendas and virtue signaling, leading to a rapid understanding of these underlying issues.

So, When Will The Causes Of Financial Nihilism Be Addressed? 

Acknowledging that economic globalization is the primary culprit behind this crisis is essential. Given that nationalism is the antithesis of globalization, it's logical to conclude that the antidote lies in economic nationalism. While this notion may initially seem radical, it's already gaining traction. The recent trends of onshoring and friendshoring, often mentioned in economic discourse, are, in fact, manifestations of economic nationalism. This approach involves reintegrating most outsourced operations, regardless of the expenses involved. This is where the first major hurdle arises – the significant costs that come with it.

It is often overlooked how globalism has positively impacted the everyday individual. Due to outsourcing manufacturing operations, the average person has benefited from lower costs of goods and certain services. Reversing this trend and bringing production back onshore would likely result in price increases for goods, especially when asset prices are already high, creating a challenging situation for the average person. This scenario is the opposite of when globalization began taking shape.

In stark contrast to the favorable economic climate of the 1990s, when commodity prices declined and assets were reasonably priced, the shift towards nationalist policies will bring about a period of financial strain, marked by rapid inflation and persistently high asset values that remain out of reach for many.

A promising trend is the potential for a surge in average salaries, with some indications that this upward shift is underway. As a natural consequence, the exorbitant earnings of the wealthy elite are likely to decrease in tandem. It's implicit that this prospect is unappealing to those at the top, who may even view it as an existential threat, given the staggering levels of debt they've accrued and cannot repay.

In other words, those with power are vested in suppressing wage growth for the general population, as increased earnings would erode their wealth and profits. Similarly, they cannot permit interest rates to climb, lest they face insurmountable debt repayment challenges resulting from the excessive borrowing they engaged in during the era of inexpensive credit that characterized globalization.

This shows why globalists are fixated on innovations like artificial intelligence. It enables them to maintain low wages and profit in an economically nationalist setting. Similarly, their enthusiasm for central bank digital currencies (CBDCs) can be seen as a means to manipulate interest rates and debt levels. Furthermore, it's notable that many nationalist-leaning leaders elected globally have ties to the World Economic Forum, suggesting that their allegiance may not be to national sovereignty but to the globalist ideology that aligns with the WEF's agenda.

Notably, ordinary individuals increasingly recognize this situation, leading to a decline in trust in established organizations. Demitri has consistently emphasized this point in his discussions. The main challenge in combating financial nihilism lies in losing confidence in the institutions responsible for implementing solutions, as global interests have influenced these institutions and have become corrupted.

The only viable remedy for the crippling effects of financial nihilism lies in establishing new organizations prioritizing ordinary individuals' needs over those of the powerful elites. This transformation is still in its infancy and may require several decades to reach fruition, much like the gradual rise of globalization in its formative years.

Navigating Turbulent Times Ahead 

The main question is how to address the changing dynamics during this period. More specifically, how can individuals cope with the impending peak in asset values and the rapid surge in goods prices? Both the timing and location factors influence the solution. Looking at the timing perspective, Travis's forecast about this being an exceedingly speculative crypto market cycle is accurate and is expected to persist. Additionally, his assertion that the crypto market will present the most outstanding returns among speculative asset classes also holds true.

When considering the increasing participation of globalist investors such as BlackRock in cryptocurrency, it becomes evident that investing in crypto presents a significant opportunity to enhance one's financial position in the near future. To prosper financially within a globalist context, it is essential to emulate the strategies of global investors. Many are now mimicking the investment decisions of influential figures like Nancy Pelosi. However, the challenge lies in exiting these investments at the right moment or, preferably, beforehand. Achieving this task is more complex than it may seem.

One of cryptocurrency's most exciting aspects is its transparency, allowing all transactions to be publicly visible. This unique feature enables individuals to monitor and track the investment strategies of experienced traders in real time, often providing valuable insights. By doing so, many people have successfully identified emerging trends, including the rapid growth of memecoins, before they surge in value.

This approach may only be viable in the short term. Beyond that, we may witness a widespread asset selloff as heavily indebted global powers attempt to settle their debts. This scenario presupposes that their efforts to manipulate wages and interest rates will ultimately fail, which appears probable. Those familiar with the CBDC narrative will understand that developing and launching such technologies is complex. Moreover, coercing people to adopt these technologies and actually getting them to use them are two distinct challenges, with the former being relatively easier to achieve than the latter.

If globalization efforts stagnate, the value of assets will decline, while the cost of goods and wages will increase. To thrive in this scenario, it's essential to adopt a diligent work ethic, particularly in sectors experiencing a resurgence of domestic production. Reestablishing local operations will necessitate massive investments of energy and resources. Strategically placing yourself near these industrial centers can provide indirect benefits, even if you're not directly employed in these fields.

This pertains to the second aspect of addressing the consequences of globalism, which is location. Assuming that globalists can establish CBDCs and similar systems, there will likely be certain countries and regions where their influence will be limited. These technologies may be less widespread or may not be present.  It needs to be determined which countries and areas these may be, but this should become clearer over time.


Source: Visual Capitalist

Countries less inclined to adhere to globalist principles, like the BRICS nations and their allies, often face the most adverse impacts from them. Even if the globalists do not succeed in introducing their dystopian technology, it may still be wise to consider moving, as certain countries may struggle to bring operations back onshore efficiently due to limitations in resources or workforce. Europe and the UK are especially vulnerable to this scenario.

In essence, navigating the challenges of globalism and its eventual downfall will require flexibility in managing one's finances, career, and home. We're operating in a globalized system, so it's crucial to mirror the investment strategies of globalists and be prepared to move to avoid their control. As we transition towards a more nation-centric environment, your ability to find meaningful employment will become more vital to your survival than your investment savvy, which may also require relocating to a new country. However, choose a nation that won't likely end up in a kinetic war because of its nationalism.

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.