Bitcoin (BTC 0.68%) has been a hot topic in the financial world for years, with opinions about the cryptocurrency running the gamut from a "revolutionary new asset class" to a "dangerous speculative bubble." One thing that most experts can agree on, however, is that its volatility has historically made it a less-than-ideal safe-haven asset. But recent market movements seemed to have changed that tune. There are fewer sad trombones and more sparkly vibraphone grooves in the Bitcoin canticle nowadays.

But is the cryptocurrency really ready to serve as a long-term vault for your hard-earned wealth? Let's look closer at Bitcoin's suitability for that august role in light of recent data and expert analyses.

Bitcoin has been on a tear since the beginning of 2023, rising 45% since the start of the year. On the other hand, the S&P 500 (^GSPC 1.41%) index is up by a mere 0.8% over the same period, and gold has gained 2.6%.

Zooming out to a three-year view, you'll find that Bitcoin has outperformed the traditional safe havens of gold and broad stock market indexes again. This time, gold is up by 19%. The S&P 500's dividend-adjusted total return stops at 49%. Over the same span, Bitcoin soared 367% higher.

And if you allow me to go back six years instead, incorporating the surge of 2017 and the 2018 crypto winter into the data, we can see how a $10,000 investment in Bitcoin has performed against gold and the S&P 500 since the spring of 2017:

Bitcoin Price data by YCharts

Of course, past performance is not a reliable indicator of future results. Bitcoin is notoriously volatile, and its value could plummet just as quickly as it has risen. The chart above, impressive as it is, also shows many dramatic price drops over the years.

But it seems that Bitcoin has finally established itself as a contender in the category of safe-haven assets. As investors seek out alternatives to traditional value stores, like precious metals or diverse stock market indexes, Bitcoin's unique characteristics and limited supply could make it an attractive option for those looking to protect their wealth against inflation and currency fluctuations.

And that's right in line with the original intentions of Satoshi Nakamoto, Bitcoin's unknown inventor (or group of inventors). The cryptocurrency was designed to resist inflation through a lifetime maximum of 21 million digital coins, and 19.3 million of them are already minted. This capped long-term supply is similar to the limited amount of gold on the planet, which is why Bitcoin bulls often refer to it as "digital gold."

Despite its volatility, some market experts believe that Bitcoin could continue to serve as a safe-haven asset in the future. Beyond the gold-like supply-and-demand equation, some Bitcoin gurus point to the growing interest from institutional investors and large corporations. As a result, the cryptocurrency may be becoming more mainstream and accepted as a legitimate asset class.

In fact, companies like Tesla (TSLA 2.39%) and Block (SQ 1.54%) have even added Bitcoin to their balance sheets, further signaling their confidence in the cryptocurrency. Taking that idea to its next logical step, business software builder MicroStrategy (MSTR 5.01%) has converted most of its cash reserves into Bitcoin -- and keeps buying more coins financed by a combination of cash flows, loans, and stock sales.

deVere Group CEO Nigel Green calls the current banking crisis a "springboard event" for Bitcoin as traditional-minded investors start to treat the digital asset as a safe port in the storm. The financial shake-up may inspire others to follow in the steps of Tesla, Block, and MicroStrategy. Massive long-term inflation of the U.S. dollar is a critical part of this scenario: "Investors are therefore looking for alternative currencies, such as cryptocurrencies," Green writes in a recent press release. "Moving forward, these will increasingly compete with traditional, fiat ones, and this will help trigger the decreasing dominance of currently leading international currencies."

Nobody knows for sure where Bitcoin is going next. The crypto winter may be thawing as we speak, or another cold snap could bring Bitcoin prices down again in 2023.

But I think it's abundantly clear by now that cryptocurrencies are here to stay, and that Bitcoin will probably be a reliable store of wealth for many years. MicroStrategy chairman Michael Saylor may be onto something after all. Truly committed Bitcoin bulls with diamond hands should see stellar results a few years down the road.

That being said, I still don't want to convert my entire net worth into Bitcoin and take out loans to buy more. Leave that to the professional risk-takers for now. Instead, I'm happy with a modest Bitcoin position that could serve me well in the long run without adding much short-term risk. It's a good place to park cash you won't need for at least a year or two, allowing Bitcoin to get over speed bumps and challenges on the road to sustained wealth. In fact, that's how I think about all investments. Saintly patience is arguably the best quality an investor could have. Just ask Warren Buffett or Peter Lynch.

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Is Bitcoin a Safe-Haven Asset Now? Recent Data and Market ... - The Motley Fool

The launch of the DAO Governance marks a significant milestone in the decentralization of the Arbitrum One and Arbitrum Nova networks, becoming the first EVM rollup technology to achieve Stage 1 decentralization

NEW YORK, March 16, 2023 /PRNewswire/ -- The Arbitrum Foundation today announced the launch of DAO governance for the Arbitrum One and Arbitrum Nova networks, a massive leap forward in the decentralization of the two networks. Alongside the DAO governance structure, The Arbitrum Foundation also announced an upcoming drop of $ARB to users of the Arbitrum ecosystem on Thursday, March 23.

Arbitrum Foundation (PRNewsfoto/Arbitrum Foundation)

Late last year, Vitalik Buterin proposed a 3 stage schema for decentralizing rollups, and with today's announcement Arbitrum has now become the first EVM rollup ever to achieve Stage 1. The milestone signifies an important achievement for both Arbitrum networks and for the state of Ethereum scaling more broadly.

The $ARB token will facilitate the decentralization of the Arbirum network, and the $ARB airdrop will place the governance token in the hands of the users who are actively participating in the Arbitrum ecosystem. Users can visit gov.arbitrum.foundation and follow the prompts for eligibility details and to claim their share in governance. The majority of the $ARB supply will be under the control of the Arbitrum community via The Arbitrum Foundation, accelerating growth of the ecosystem organically. $ARB token holders will govern The Arbitrum Foundation through the Arbitrum DAO.

Steven Goldfeder, CEO and Co-Founder of Offchain Labscommented: "We are extraordinarily excited for the official launch of The Arbitrum Foundation and DAO governance and to see Arbitrum One become the first EVM rollup to advance to Stage 1 decentralization, a tremendous milestone for both Arbitrum and Ethereum. Through the community airdrop, the delegation process, and the introduction of the Security Council, community participation and control is at the forefront of today's announcement, and the requirements for receiving a share of Arbitrum governance have been crafted meticulously, optimizing for the longevity of the ecosystem and community. Looking ahead, we're moving closer and closer toward a decentralized financial system, with the Arbitrum technology at the very forefront of that.."

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To facilitate effective community governance, users will be able to delegate voting power to individuals they view as effective stewards of their values. Delegates will be expected to vote on proposals that pass through the Arbitrum DAO in a way that represents the token-holders who have assigned their voting power to them. The Arbitrum DAO will have the power to control key decisions at the core protocol level, from how the chain's technology is upgraded to how the revenue from the chain can be used to support the ecosystem. Those interested in becoming a delegate are encouraged to visit the governance forum and apply.

Crucially, Arbitrum's governance will be self-executing, meaning that the DAO's votes will directly have the power to effect and execute its on-chain decisions, and not rely on an intermediary to carry out those decisions. Self-executing governance is a critical milestone for decentralization and giving the community the power to govern the chain, and Arbitrum is leading the way as the first L2 to launch self-executing governance.

The Arbitrum Foundation also announced the creation of the Arbitrum Security Council, a 12-member multisig of highly regarded community members designed to ensure the security of the chains and be able to act quickly in the event of a security vulnerability. The decision-making powers of the Security Council are determined by a smart contract that will require multiple secure signatures by its members in order to implement any changes to the protocol. In case of emergency, the Arbitrum Security Council will be able to act quickly but this will require participation from 9 of the 12 members. The Arbitrum DAO will be the ultimate governing body over the Arbitrum Security Council, with elections for the Council being held twice annually.

The introduction further reinforces Arbitrum's focus on decentralization by giving the community the ability to play a more active role in Arbitrum governance and have a say over what occurs within the ecosystem.

Arbitrum is the leading Layer 2 (L2) scaling solution for Ethereum, boasting the highest Total Value Locked (TVL) across all L2 networks with approximately $3.61B, 55% market share across all rollups, and the Arbitrum One network recently surpassed Ethereum daily transactions on two occasions.

For more information, please visit the Arbitrum blog: http://arbitrumfoundation.medium.com/

About Offchain LabsOffchain Labs is a venture-backed and Princeton-founded company that was the initial developers of Arbitrum, a suite of secure scaling solutions for Ethereum. Arbitrum's technologies instantly scale dApps, significantly reducing costs and increasing speed, without sacrificing Ethereum's security. Porting contracts to Arbitrum requires no code changes or downloads as Arbitrum is fully EVM compatible. Offchain Labs also maintains Prsym, the leading Ethereum consensus client.

About The Arbitrum FoundationThe Arbitrum Foundation has a mission to help support and grow the Arbitrum network and its community while remaining at the forefront of blockchain adoption. The Foundation oversees the $ARB token and governance structure as well as the Arbitrum Security Council, a 12-member multisig of well regarded community members designed to ensure the security of the chains.

Media contact: Dillon Arace, arbitrumpr@mgroupsc.com

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The Arbitrum Foundation Announces DAO Governance for the Arbitrum One and Nova Networks and Airdrop of $ARB Token to Arbitrum Users - Yahoo Finance

Kyiv, Ukraine --News Direct-- Blaize Technology

By Jad Malaeb, Benzinga

Every few years, a form of technology arises that reshapes how humans view and interact with the world. In 1983, that technology was the internet; today, many say its the blockchain.

A blockchain is a distributed ledger that stores data and validates transfers across an interconnected network. All information placed into a blockchain is first formulated into a block.

Blocks are added to the blockchain only after theyve been validated by network nodes. The requirement for a consensus between the nodes before a block is placed ensures that the information is accurate and trustworthy. Additionally, any modification to an existing block would trigger a change in all the blocks preceding it, making all information on the blockchain immutable.

With the advent of complementary technologies like smart contracts and cryptocurrencies, blockchain became the foundation of a $3 trillion cryptocurrency value and the cornerstone of the broader decentralization movement. According to a report by MarketsandMarkets, the blockchain market is expected to be worth $67.4 billion by 2026. The question on the minds of investors, entrepreneurs and spectators now is: What will blockchain look like in that time?

Currently, blockchains are divided into three domains and four types.

Public blockchains, like Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Litecoin (CRYPTO: LTC), belong to the permissionless domain, a class of blockchains that has no central authority and is dependent on the cooperation of independent nodes for consensus.

Public blockchains are the main propagators of the decentralized movement, and theyre by far the most well-known blockchains. Permissionless blockchains typically sacrifice transaction speed for security, as more nodes mean safer but slower data transfer.

Private and consortium blockchains, like Ripple and Hyperledger respectively, belong to the permissioned domain, a class of blockchains that has one or more central authorities dictating node accessibility and functionality within a blockchain network. Private blockchains control who is allowed to be a node, and what functions these nodes have.

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Private blockchains represent the individualization of blockchain. These blockchains tend to be specific to the central authoritys purpose. For example, private blockchains are popular for supply management functions and insurance claims, two industries where the networks function is improved by the restriction, rather than popularization, of information.

Hybrid blockchains reside in the middle of these two classes and represent the third domain of blockchains. As more Web3 projects aim to improve security while keeping decentralization an option, hybrid blockchains are quickly becoming one of the most popular forms of blockchain technology, and they could very likely be the next evolution of blockchains.

Most of the blockchains discussed above are layer-1 blockchains.

Layer-1 blockchains set the groundwork for the way users can expect the network to operate. They not only provide the base on which all data transfer is made but also define the rules, outlining how consensus is achieved, how nodes operate and other essential requirements.

Achieving a high level of decentralization and security while maintaining efficiency is one of the great challenges of layer-1 networks. In May 2021, for example, the average transaction fee rose to $69 on the Ethereum network as a result of an overload of transaction requests. Bitcoin transaction speed, which reached a low of 4.6 transactions per second compared to Visas 1,700 transactions per second, is another template of layer-1s scalability issues.

Layer-2 blockchains help take the workload off of layer-1s. If the crypto industry were a kitchen, layer-1 blockchains are the chefs and layer-2s are the sous-chefs. The primary function of layer-2 blockchain is to improve the transaction speed and reduce gas fees of layer-1 blockchains while layer-1 maintains the security and integrity of the overall system.

The popular layer-2 project Bitcoin Lighting Network, for example, makes Bitcoin transactions faster and less costly by executing Bitcoin orders through their network. This helps Bitcoin achieve its promise as a medium of exchange. Similar layer 2s are available for Ethereum, including Loopring, Optimism and Ethereum Plasma. While many see the necessity of layer-2 blockchains for scalability as a shortcoming of layer-1 blockchains, others argue that theyre a necessary ingredient in the recipe for global decentralization.

A layer-1 blockchain that can fulfill scalability, security and decentralization functions without a layer-2 could have a huge competitive advantage; it ranks highly in the category of the next best thing.

The importance of blockchain software developers like Blaize.Tech cannot be overstated in the pursuit of the next evolution of blockchain technology.

Behind Ethereum, Avalanche and Cardano is an army of talented blockchain developers working together with a singular purpose. Nothing large in blockchain happens without developers. Blaize has already had a head start on its competitors, deploying over 400+ smart contracts and completing over 70+ successful blockchain projects.

Developers like Blaize help companies create blockchain systems, decentralized applications, smart contracts and enterprise solutions. Blaize specifically has all these capabilities and even provides developer tools like software development kits, allows non-blockchain projects to integrate the technology into their business and provides blockchain-specific services like security audits and technical due diligence.

If youre interested in any form of blockchain technology integration, Blaize.Tech is a go-to destination.

In many ways, decentralized finance (DeFi) is the reason for blockchains popularization.

Blockchains first public triumph was Bitcoin, a DeFi solution that allowed regular people to send and receive currency without the need for central authorities. The current examples of DeFi projects all reflect the financial decentralization concept, but express it in different ways.

Aave (CRYPTO: AAVE), for example, is a DeFi project that allows the lending and borrowing of currency without the need for a central authority. Aave achieves this by using smart contracts, which are programs that automatically run on the blockchain when certain conditions are met. The automatic execution of smart contracts is what enables all DeFi services, including trading, investing, lending and borrowing.

Smart contracts have been central in the creation of decentralized exchanges like Uniswap (CRYPTO: UNI), decentralized oracle services like Chainlink (CRYPTO: LINK) and inter-blockchain communication platforms like Polkadot (CRYPTO: DOT). As a result of smart contracts and blockchains, the DeFi industry is expected to be worth $231 billion by 2030 according to a report by Grand View Research, but hacking, safety and trust issues must be addressed before the industry can advance.

Similarly, NFTs are currently awaiting a renaissance of their own after their fall from grace in 2022. Last year, it became clear that the majority of the value perceived by NFT traders was a result of one of the greatest bull markets of all time. As soon as the curtains receded, NFT valuations reverted to sane valuations, leading many to believe they had no value to begin with.

The conversation around NFTs is now changing. A growing number of NFT advocates contend that NFTs value can extend beyond speculation, and advocates have begun to test this idea with the launch of utility NFTs. Utility NFTs grant their purchasers something more than just an ownership stamp; they grant owners access to perks and rewards. Utility NFTs have been embraced by some of the biggest brands from Nike and Dolce and Gabanna to Adidas and the Premier League. Many posit that NFTs will play a major role in broader-themed movements like Web3 and the metaverse.

Safe, secure and user-optimized DeFi services and utility-based NFTs have a strong argument for a place in the future of blockchain.

One exciting domain of exploration for the future of blockchain is in on-chain analytics.

In traditional markets, investors have access to very limited information, and they must make predictive assumptions with a lot of missing variables. In an environment as complicated as the financial markets, acting on limited information only makes the process of investing harder.

The breadth and availability of information that crypto investors can glean from on-chain analytics is changing the investing landscape. In essence, on-chain analysis is the process of monitoring the flow of money into and out of crypto assets. Because of the sheer quantity of available information, many crypto investors are capable of making decisions with a much larger set of facts and information than their traditional counterparts.

On-chain analysis can involve a number of different ratios, calculations and observations. Some of these include monitoring central exchange flows, which could depict large-scale entry or exit from certain assets by examining exchange-based information. Others could include whale watching (i.e. monitoring large-scale orders), while others could take a more granular approach and record active addresses, supply distribution, miner revenue and realized profit or losses.

The use of on-chain analytics is considered by many the rise of blockchains own fundamental analysis. Despite all of blockchains potentially life-changing qualities, investing and trading remain two of the largest areas of interest in this industry. On-chain analytics represent the first clues of the emergence of educated speculation, and it, too, can play a large role in the future.

As discussed, there are many potential avenues blockchain technology could take, and none are mutually exclusive.

On the private scale, blockchains have already been implemented in governments and corporations, but this avenue has the lowest potential to influence the world. Public blockchains, while the most problematic of the bunch, bring about a whole new ecosystem of products that are independent of central authorities.

There are suspicions that blockchain, as a peer-to-peer network, may have too many faults, and that these decentralized approaches could be better achieved through alternative systems like Urbit or Hedera. Nonetheless, thousands of entrepreneurs are pushing to improve blockchains trust and automation issues in order to take it to the next level, and there are plenty of promising avenues of exploration.

This article was originally published on Benzinga here.

Blaize is a software company providing blockchain development outsourcing solutions for different types of businesses. Blockchain ecosystem creation and decentralized application development are our core specializations. We have vast expertise in building DeFi applications, decentralized exchanges, DAO, smart contract development&deployment, blockchain nodes development, and creation of staking platforms.

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

Pasha Bergman CBDO

pasha@blaize.tech

Blockchain development company

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The Next Big Thing In Blockchain And Crypto? (Hint: Its Not NFTs) - Yahoo Finance

Servers support decentralized social media. dpa/picture alliance via Getty I

Meta is in the early stages of developing a text-based social media app that could rival Twitter, MoneyControl reported yesterday (March 9). Unlike its other social media platforms, Facebook and Instagramand unlike Twitterthe app will reportedly be decentralized. Meta didnt clarify what this would mean, but other decentralized apps like Mastodon, a Twitter rival, support independent servers where users create their own rules about content moderation.

Metas new app, codenamed P92, will reportedly integrate ActivityPub, the set of rules that allow networks to communicate. ActivityPub is what allows for decentralization, or interconnectedness between social platforms. Users will be able to engage with content across the platforms that support ActivityPub without having to make accounts for each one. Mastodon supports ActivityPub, and Tumblr announced in November it is adding the protocol. Flickr, an image and video hosting platform, is considering adding it as well.

The increasing integration of decentralization capabilities like ActivityPub could change the social media landscape. The movement is intended to give more control to users rather than social media corporations and the billionaires that own them. No one company will be able to control data and content in the decentralized servers. Third parties wont be able to collect user data, which could change how companies advertise to consumers.

The popularity of decentralized social media platforms is a response to calls for more ethical social networks and an increasing focus on user privacy, inspired in part by the prevalence of Covid-19 digital contact tracing that some felt violated their privacy. Privacy advocates like Netherlands-based Advocacy Unified Network have written in support of decentralization.

PeerTube, a video hosting platform similar to YouTube, and Pixelfed, which is similar to Instagram, also have ActivityPub capabilities. When social media platforms integrate ActivityPub, the walls between platforms are taken down. Right now, if a Twitter user wants to share a video they created on YouTube, they have to tweet the link. With ActivityPub capabilities, a Tumblr user could follow a Mastodon user from within the Tumblr platform. They could see posts originating on PeerTube, Pixelfed and Metas P92in their Tumblr feed.

Meta could create greater synergy between its platforms if it adopted ActivityPub across Facebook, Instagram and P92. But it would also lose some control over content moderation. Its advertising sales could also suffer, so it is hard to imagine Meta adopting a fully decentralized approach.

ActivityPub was authored by Christine Lemmer-Webber, Jessica Tallon, Erin Shepherd, Amy Guy and Evan Prodromou. Prodromou previously started Wikitravel and StatusNet, a microblogging platform similar to Twitter.

The World Wide Web Consortium, a group that sets internet standards, endorsed ActivityPub in 2018, which is a step towards normalizing the protocol. Other protocols similar to ActivityPub include Diaspora, Scuttlebutt and Atom.

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ActivityPub Is Changing Social MediaHeres Why - Observer

Made famous by her love of innovation, Cathie Wood's Ark Invest is naturally a fan of Bitcoin (BTC 0.51%). Every month a team of Ark analysts explore statistics on the Bitcoin blockchain and other economic trends in an effort to gauge Bitcoin's overall position in the market and where it might be headed.

This month's report looked back on February. It was full of valuable information for investors and highlighted why Bitcoin will likely remain at the top of the cryptocurrency asset class for years to come.

Despite retreating more than 14% at the beginning of March, likely due to uncertainty in the crypto landscape as talks of regulation heated up and more crypto-related businesses went bankrupt, Bitcoin has actually had a great start to 2023. Since the beginning of the year, Bitcoin is up nearly 50% and looks to be the most resilient as it is one of the most resistant and resilient to regulation. This comes from a combination of its vast decentralization and high levels of security.

After a successful January, its price climbed further in February thanks to a new technology called Ordinals, which was introduced to make the Bitcoin blockchain non-fungible token (NFT) compatible. Before Ordinals, only blockchains with smart contracts could host NFTs.

With the introduction of Ordinals, the average block size of Bitcoin hit a new all-time high. Ark analysts believe this is a bullish sign as they view the limited space in each block as being similar to real estate. The less block size available, the more valuable the space becomes as demand increases.

Although still in their infancy, Ordinals could prove to add even more pressure to block space demand. While the launch of Ordinals and a stellar February were a bit of good news for Bitcoin, it seemed to be short-lived.

While there is reason to be optimistic about Bitcoin's future, Ark believes there are two unknown factors that could dampen growth -- looming regulation and an uncertain macroenvironment.

As a result of multiple catastrophes in 2022, politicians and legislators seem to be turning up the heat in the regulatory environment. Just three months into the year, there have been multiple examples of fines and penalties being levied against crypto-related businesses by the Securities Exchange Commission (SEC).

This is likely due to SEC Chairman Gary Gensler's beliefs that a majority of cryptocurrencies are actually securities and therefore fall within reach of the commission's jurisdiction.

To start off 2023, the SEC has already announced a settlement with the cryptocurrency exchange platform Kraken to suspend its staking product. The agency also sent a warning to the stablecoin issuer Paxos, which stated that its products also met the criteria of a security and to cease its offering.

Ark believes that these efforts by the SEC and other government agencies will only pick up in 2023 and could prove to be detrimental for the majority of cryptocurrencies.

However, it also believes that Bitcoin is different from other cryptocurrencies due to its high levels of decentralization. This opinion has been reaffirmed as chairman Gensler is on record saying multiple times that he considers Bitcoin a commodity and, therefore, outside of his commission's control.

Adding to potential regulation, Ark views the current macroeconomic environment as being less than ideal for more-risky assets like Bitcoin to grow. Analysts pointed to a handful of metrics like the monetary velocity, trends in consumer spending, and patterns in the 10-year Treasury yield as a reason to believe that not only will riskier assets continue to struggle but that a recession might even be looming.

While it remains unknown as to whether our worst fears come to be, Ark analysts painted a clear picture that in the current economic and regulatory landscape, Bitcoin is the safest option for those looking to invest in cryptocurrency. It reiterated this stance with a variety of supporting statistics, such as mining difficulty and the long-term holder supply, which show that even in the depths of a bear market, Bitcoin's blockchain is still relatively healthy.

As the future remains unclear, Bitcoin offers crypto investors a refreshing sense of hope that no matter what happens, it can still continue on its path of price appreciation.

RJ Fulton has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

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Here's What 1 of the Smartest Investors on the Planet Is Saying ... - The Motley Fool

On March 10, after days of uncertainty spurred on by $1.8 billion in surprise bond losses, Silicon Valley Bank (SVB) collapsed, sending a tidal waves worth of ripple effects throughout the financial industry. The event quickly prompted the U.S. Treasury, Federal Reserve, and the FDIC to step in to effectively circumvent catastrophe and assure depositors of access to all of their funds, whether insured or not.

While the situation is still developing, the seeming fiasco has left those in traditional finance to shudder in remembrance of the 2008 financial crisis. Yet, the context of the collapse that SVB was a significantly popular choice for venture capitalists and tech startups has urged more contemporary investors (like those in Web3) to remark about the potential of decentralization in eschewing central bank issues.

But even so, in the days since the debacle, its become clear that the NFT space mightve actually dodged a bullet itself with help from regulators. Because while Web3 staunchly purports to be decentralized, some of the most prominent players seemingly only narrowly escaped being caught up in the debacle.

How did the 16th largest bank in the United States become the second-biggest bank failure in U.S. history? To summarize, the collapse came down to two major factors.

The first is that, within the last year, the Federal Reserve has raised the Federal funds rate by nearly five percentage points in an attempt to tame inflation. These higher interest rates significantly chipped away at the value of long-term bonds that SVB and many other banks took on previously when interest rates were next to nothing.

The second factor concerns the quick and broad decline in tech revenue and venture capital experienced within the U.S. In response to the wane, startups had opted to withdraw funds held in SVB, meaning that the bank was facing significant unrealized losses in bonds while simultaneously, customer withdrawals were escalating. This, in turn, caused a run on the bank where customers panicked and all attempted to withdraw their money at once.

Only two days after the SVB closure, the Department of the Treasury, Federal Reserve, and FDIC released a joint statement saying that depositors will have access to all of their money starting Monday, March 13, and that no losses associated with the resolution of SVB would come from taxpayer dollars.

The statement also mentioned that regulators took these unusual steps because SVB presented a significant risk for the U.S. economy. While regulators continue to look for a buyer for SVB and the uncertainty for what comes next is mounting, HSBC has acquired SVB UK for a symbolic 1.

Outside the traditional finance world, those in the blockchain industry are doing their best to understand how the situation might have, and could still, affect their stomping grounds.

Not to be confused with the fall of FTX, this latest three-letter acronymous fiasco had a significantly less detrimental effect on the NFT space than the aforementioned failed crypto exchange. Thanks to the actions of the Federal Reserve and FDIC, the many accounts housed under SVB which included consumer accounts as well as those of high-profile companies like Roblox, Buzzfeed, Etsy, and more were made whole as of March 13.

But the fact remains that the SVB collapse couldve very significantly affected the blockchain industry. Because apart from crypto companies like Avalanche, BlockFi, Ripple, Pantera, and others that had funds locked up in the SVB debacle, numerous NFT adjacent entities wouldve been in for a world of hurt as well. Here are a few examples.

One of the most immediate and impactful concerns arose from the untethering of the USDC stablecoin. USDC lost its 1/1 peg to the U.S. dollar only hours after SVB was closed, and Circles $3.3 billion cash reserves (about eight percent of the funds backing USDC) went into limbo. Although the situation has since been rectified, USDC has yet to return to the $1 peg as Signature Bank (another institution critical to USDC holdings) was seized in the wake of a similar bank run.

The Proof Collective which has grown increasingly in popularity over the past few years thanks to the success of projects like Moonbirds,Oddities,and Grails became an immediate concern for the NFT community in the aftermath of the SVB news. Addressing the Proof community via Twitter, the project team confirmed that Proof held cash in SVB, although they didnt state how much. Further, they noted that they had diversified assets across ETH, stablecoins, and fiat.

When word first came down about SVB, many also looked to the popular PFP project Azuki (helmed by ex-big tech entrepreneur Zagabond) to see if it was affected. Yet, Zagabond quickly dispelled worry, stating to the projects thousands of Discord members that SVB was only one of their many banking partners and that the bank held less than five percent of project funds.

NFT community members also quickly voiced concern for Yuga Labs following SVBs closure. Yet, similar to Azuki, the brand made it clear that the fiasco wouldnt affect their business or plan in any way. Yuga founder Greg Solano announced via Discord that the company had super limited financial exposure to the situation.

Memeland, the Web3 venture studio created by Hong Kong-based meme-centric entertainment website 9GAG, was similarly minimally affected by the SVB collapse. Taking to Twitter, Ray Chan, CEO and Co-founder of 9GAG, shared that Memeland had only around $40,000 held in the bank, with no plans of withdrawing. He went on to voice his lack of concern about the fiasco as well, stating, when SVB falls down as quickly as FTX did, crypto and NFT dont look so risky at all.

Its no stretch to say that the implications of the SVB closure mightve been significantly worse had regulators not stepped in to guarantee deposits. Even considering the minimal exposure that most major NFT players had to the bank, Web3 wouldve surely felt ripples from the Circle situation alone, as USDC is a highly popular stablecoin to those in the NFT space.

Yet, a few key takeaways have emerged in response to the near-catastrophic experience. The most prominent of which has everything to do with the already widely held Web3 ethos: decentralization. Of course, this goes far beyond advocating for decentralization and keeping funds out of the central banking system (as many already do). Because the major lesson learned from the SVB fiasco is that to mitigate crypto and NFT risk, users should absolutely not keep all their assets in one place.

Surely, NFT-native users will have heard this warning time and time again. Aside from following the best practices in Web3 security, locking up assets for safekeeping or even simply spreading assets throughout multiple secure wallets and accounts could help mitigate risk significantly.

So goes the adage: Dont put all your eggs in one basket.

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A Web3 Cautionary Tale: The Biggest NFT Brands Had Funds in SVB - nft now

We have had three decades of decentralized local governments. Next month will mark the 30th anniversary of panchayati raj, when the 73rd and 74th amendments gave Constitutional status to rural panchayats and urban municipal councils. The conventional wisdom is that panchayati raj is a great idea, the amendments were faulty and while local government has created tens of thousands of local politicians, improvements in local governance itself have been marginal.

We have had three decades of decentralized local governments. Next month will mark the 30th anniversary of panchayati raj, when the 73rd and 74th amendments gave Constitutional status to rural panchayats and urban municipal councils. The conventional wisdom is that panchayati raj is a great idea, the amendments were faulty and while local government has created tens of thousands of local politicians, improvements in local governance itself have been marginal.

The idea of decentralizing power and situating it close to citizens has appeal. Yet, whatever political theory advertises, it must pass the empirical test. The crop might be bounteous, but it must grow on Indian soil. After 30 years, can we really claim that we are better off with panchayati raj than without it? Even its most fervent proponents will argue that this barrel is half-full. Only if you scrape the bottom, I would add.

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The idea of decentralizing power and situating it close to citizens has appeal. Yet, whatever political theory advertises, it must pass the empirical test. The crop might be bounteous, but it must grow on Indian soil. After 30 years, can we really claim that we are better off with panchayati raj than without it? Even its most fervent proponents will argue that this barrel is half-full. Only if you scrape the bottom, I would add.

The argument that the amendments had flaws or its implementation was undermined by Indias political economy avoids confronting more fundamental issues. In any case, as Ambedkar said, However good a constitution may be, if those who are implementing it are not good, it will prove to be bad. However bad a constitution may be, if those implementing it are good, it will prove to be good." So we are back to the question of whether the crop of panchayati raj can grow well in the soil of Indian society. There are four broad reasons to challenge the assumption that grassroots democracy delivers.

First, as Ambedkar argued, there is an absence of fraternity at all levels of Indian society. People of an Indian village or town do not have a shared sense of civic community. There is, instead, an intense inter-group competition for resources, status, power and opportunities. Politics is primarily devoted to pursuing and managing this competition and, as a consequence, is poorly equipped to manage common resources or delivering quality public services. Can panchayati raj create the fraternity that is essential to its success? The empirical evidence suggests it does not: on the contrary, to the extent that caste and community identities are poles around which political mobilization takes place, it has perhaps created the opposite.

Second, the claim that local politics will lead to better governance must contend with the reality that Indian voters do not connect their electoral decisions with the delivery of better public services or economic development. The number of politicians who have been re-elected based on their track record of improving law-and-order, building infrastructure and raising growth is small. Populism, corruption, caste and communal mobilization are far more effective in winning elections at the state and national levels. Why should it be any different at panchayats or municipalities? After all, its the same electorates.

Third, people dont expect panchayati raj institutions to be accountable because the link between paying them direct taxes and receiving public services is weak. If you pay a part of your income to the local council to pay for schools, roads and hospitals, and if you are convinced that there is a connection between them, you are likely to hold the councillors accountable. This happens, to some extent, in urban resident welfare associations, where the payer-to-voter ratio is high. But it does not happen in panchayats and municipalities, as the direct taxpayer-to-voter ratio is very low.

Local governments can raise more revenues under various heads under their purview. But they dont. Their own revenues as a share of their total budget have been declining over the last decade. We can blame centrally sponsored schemes and non-decentralization of state finances for this, but how do you explain lack of interest in collecting property and other taxes that municipalities ought to? As Arvind Subramanian told me, The closer the government is to the people, the more unwilling it is to raise taxes." The downshot is that broadening the tax base is tantamount to narrowing the electoral base. Why would panchayati raj be more accountable for its governance responsibilities?

Finally, the lack of a republican consciousness among our citizens cannot be ignored. Democratic institutions are about role-playing: mayors, officials and magistrates are not exemplary individuals parachuted from another planet. They are ordinary citizens given constitutionally ring-fenced roles to play. It is not that we are incapable of playing these roles, but rather, nobody spends any effort educating citizens on their roles and responsibilities. Civic education is woefully short of demographic growth.

Indias raucous public sphere is filled with demands for a lot of things: one that is conspicuously missing is demand for decentralization. When was the last time there was a public agitation for more power to the panchayat"? Why, Bengaluru has not had a municipal corporation for over two years and people are going about their daily lives as usual.

Like they say about democracy, we could argue that panchayati raj is the worst form of government except for all the alternatives. I think thats a cop-out. Instead of worshipping at its altar, we should be thinking of more effective models that can improve grassroots governance in Indian conditions in the information age.

Nitin Pai is co-founder and director of The Takshashila Institution, an independent centre for research and education in public policy

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It is time to ask if the panchayati raj model really works for India | Mint - Mint

The idea of central bank digital currencies (CBDCs) has been brewing over the past few years. CBDCs are virtual currencies authorized by central banks that can potentially revolutionize the world economy. Although CBDCs are not widely adopted, many countries have taken substantial steps to introduce CBDCs.

The main reason behind it is the importance of CBDCs for crypto regulation. Governments believe that digitized fiat currencies can be the future of money. However, governments' interference in CBDCs conflicts with blockchain's decentralization nature.

So, what are CBDCs, and how do they work?

To begin with, "CBDC" stands for "central bank digital currency." CBDCs are a type of digital asset that represents the fiat currency of a country. Digital currency can offer various benefits. For instance, it gives financial safety to investors and helps eliminate crypto volatility.

A CBDC is similar to a cryptocurrency stablecoin. It relies on a peg to maintain its value, with each token tied to a fiat currency at a 1:1 ratio. However, these are not algorithmic tokens. Instead, a central bank has its country's fiat currency reserves to ensure the digital token does not lose its peg.

There are several differences between CBDCs and cryptocurrencies. Unlike cryptocurrencies, one notable difference is that a CBDC has a single authority managing them. This removes the core decentralized feature of cryptocurrency and blockchain technology from a CBDC.

This type of digital currency can still play a role in the future of finance. For example, it can create a financial system that is completely cashless. It can also play a role in promoting the mass adoption of digital assets, granting users from various socioeconomic backgrounds, those that may have been considered "unbanked" before, access to financial products.

Central bank-backed virtual currencies work in the same way as conventional fiat currency. It is like a digital payment system allowing users to send and receive money instantly anywhere. However, a CBDC is not only a means of payment but also stores the value of fiat currency.

What differentiates them from digital payment methods? Well, it's the relationship between CBDCs and blockchain technology. Central banks leverage distributed ledger technology to create a digitized token representing fiat money's value.

It uses the pegging method, which ties the token to fiat money at 1:1. As a result, each CBDC shows the value of a single fiat currency unit. Since these coins rely heavily on fiat currency, their value depends on the country's monetary policies.

Since its inception, distributed ledger technology (DLT) has financially empowered the masses. It has opened the gateway to financial products and services and made them more inclusive. However, the technology's decentralized nature makes it vulnerable to criminals. Cyberattacks and scamming projects in crypto have stolen millions of investor funds, and there are heaps of issues with the usability of crypto. Send your crypto to the wrong address? Well, it's gone forever, and that's that.

For these reasons, governments are keen to regulate the crypto market. Financial authorities worldwide have taken several steps, like KYC verification, licensing, scrutiny of crypto firms, and others. In recent years, the focus of crypto regulators has been on the introduction of CBDCs.

Although CBDC may not use conventional DLT, it will adopt some of its features, like transaction history. It will work as a digital fiat currency offering ease like a cryptocurrency. Besides, it's completely regulated by the government and can be used as physical money. This way, it blends crypto and paper money features and maintains its centralization.

A CBDC could help authorities monitor the country's macroeconomic situation through the ledger. Besides, it can facilitate transactions by lowering costs and limiting liquidity risk. Also, centralized currency allows a secure path for cross-border money transfers.

Therefore, by adopting CBDCs, governments can better regulate the market and provide financial security to consumers.

Atlantic Council reports that 11 countries have successfully launched CBDCs, including The Bahamas, Nigeria, Jamaica, and eight other Caribbean countries.

The Bahamian Sand Dollar, launched in October 2020, was among the first. It was designed to reach the underbanked or unbanked populations of The Bahamas, with the CBDC targeting usage in over 30 Bahamian islands.

Furthermore, 17 countries are in the CBDC piloting phase. These countries include China, Saudi Arabia, Russia, Iran, India, Australia, and others. Meanwhile, the 33 countries are currently at the development stage of their central bank-backed coins. The US is one of the countries planning the launch of CBDC.

On the other hand, the trend has also inspired many other countries to begin their research for CBDC. As of now, 39 countries have started exploring technology.

There are many benefits of CBDCs for governments around the globe. Here's how CBDC can help governments:

First, as the culture of paperless money and cryptocurrency is prevalent in society, physical fiat currencies might become obsolete. That's why the primary reason behind the adoption of CBDCs is to bring inclusivity and ease of use. Also, it will help governments to make financial products more inclusive.

Second, governments can gain authority over the digital asset market. Encouraging CBDCs' mass adoption would allow governments to monitor and track transactions, regulate digital asset firms, and offer more economic tools. This way, authorities can shape a secure and efficient ecosystem where digitized fiat plays a significant role.

Moreover, it will create a frictionless and efficient ecosystem for cross-border transfers. Besides, cooperation between governments can help transform the global market.

Adopting blockchain technology for digital money will allow governments to implement monetary policies swiftly. In addition, it would allow them to build a financial system where the central bank can directly entertain citizens.

Governments can also use them to offer economic safety to crypto investors. However, cryptocurrencies are highly volatile, which results in financial losses for many crypto users. In addition, the market is also prone to liquidity issues.

Introducing a reliable digital asset backed by the central bank reserves can offer price stability and improve liquidity issues. In addition, it may encourage more users to explore the digital asset market.

There are two major drawbacks of CBDCs.

CBDCs are issued and managed by central banks. It gives the government authority to monitor and trace user transactions, which limits users' control over their assets. For this reason, many users may be wary of the government's surveillance and hesitate to adopt CBDCs.

Like any digital asset, CBDCs can be vulnerable to cyberattacks. That's why central banks must ensure robust security measures to prevent cyber thefts. Any loophole in its security can potentially put users' funds at risk and may impact the reputation of a central bank.

There are several potential challenges and opportunities for CBDCs. For policymakers, digital fiat can counter the popularity of cryptocurrencies by integrating blockchain technology in a controlled manner. It can also help governments to design a financial ecosystem that helps in fiscal policy implementation. Furthermore, it has the potential to bring inclusivity to the financial system.

However, the concept of centralized digital currency is still in its infancy. As a result, many countries are still exploring how they can integrate CBDC into their economies. Additionally, there is a lack of clarity regarding which form of blockchain tech they would adopt.

CBDCs will also encounter resistance from the evangelists of decentralization, which could affect mass adoption and prevent CBDCs from becoming "the future of money." Finally, CBDCs will also encounter strong resistance from those who don't want closer government control over money, especially regarding CBDC privacy, blocking, and tracking, along with forcing society into a purely cashless model.

CBDCs can potentially revolutionize how we think about money and payments. But their success will depend on various factors, including technology, cybersecurity, regulation, and public acceptance. Only time will tell how CBDCs will shape the future of finance. It is still a topic that will continue generating interest and discussion in the future.

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What Are CBDCs and How Do They Work? - MUO - MakeUseOf

Following the collapse of crypto-exchange giant FTX, national governments are expediting the process of putting crypto regulations firmly in place. Many crypto hubs are reassessing how to capitalize on the benefits of the technology while proactively mitigating its risks. Noteworthy examples of jurisdictions where regulators are making headway and grabbing headlines include those in the United States, the European Union, the United Kingdom, Hong Kong and Singapore.

But the race to regulate crypto could actually be a problem, according to regulators at the supranational level. The Financial Stability Board (FSB) and the International Monetary Fund (IMF) are advocating the creation of globally coordinated crypto regulation standards before national authorities get locked into differing, even incompatible frameworks.

According to the FSB, the potential for across-the-board consistency and comprehensiveness of crypto-asset regulation is expected to strengthen international cooperation, coordination and information sharing. To achieve that, the FSB advocates equivalent regulations for digital assets and intermediaries that perform the same function as their traditional finance (TradFi) counterparts.

Meanwhile, on the user side of the equation, investors are now prioritizing self-custody crypto wallets and shifting toward decentralized exchanges, seeking greater transparency and control. This ongoing shift toward decentralized finance (DeFi) is causing national and supranational regulators to take another look at the benefits of decentralization, just as they set out to coordinate a global regulatory approach to crypto.

As the FTX debacle revealed, the shortcomings and drawbacks of centralized exchanges (CEXs) reflect certain opaque qualities of TradFi, where much behind-closed-doors activity is accepted as a matter of course. In addition to the lack of transparency relating to balance sheets and client assets, centralized finance organizations keep their systems and records off-chain.

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Meanwhile, DeFi offers permissionless financial products that offer high transparency regarding client funds and non-custodial wallets. In short, the undetected misuse of user funds we saw at FTX could never happen in DeFi. Built on public blockchains, the composability of smart contracts also enables considerable space for fintech innovation. For example, right now, were seeing a major uptick in efforts to improve DeFis user experience and user interface (UX/UI) design, especially as simple, user-friendly interfaces are the primary advantages for most centralized exchanges.

Prompted by the FTX scandal and the resulting upsurge in interest in DeFi platforms, regulatory bodies and TradFi institutions are taking a closer look at DeFi. Our team at SynFutures recently discussed the relative advantages of DeFi with the IMF, highlighting the benefits of decentralization, such as on-chain transparency as well as non-custodial and trustless solutions as a viable alternative to TradFi.

As we pointed out to the IMF, DeFi is about more than the single asset class of cryptocurrency. DeFis goal is to democratize access to all kinds of investment products and services. Where market trust has been forfeited to intermediaries and distracted by strong marketing fronts, DeFi reinstates the real operational backbone: solid code and permissionless systems.

Given its open-source nature, DeFi has been able to iterate and innovate quickly, improving on existing TradFi infrastructure at a remarkable rate. However, the uncertainty that remains around DeFi hinders its mass adoption.

First, permissionlessness can be exploited by bad actors, enabling money laundering and illicit financing. Second, the absence of clear regulatory guidelines also means customers are more susceptible to becoming targets of Ponzi schemes or otherwise deceptive activities. Third, smart contracts can be subject to exploitation and hacks, especially when unaudited.

While DeFi prefers to differentiate itself from TradFi, it is imperative for DeFi to build upon and implement the existing security measures prevalent within TradFi, such as risk control, treasury management and regulatory frameworks. DeFis mass adoption hinges on accountability and consumer protections in the same way that TradFi globally has relied on regulatory and self-regulatory practices for functional stability. Moving forward, public trust in the industry will depend on government regulation and trusted blockchain applications.

My expectation is that efforts to institute a global crypto framework would likely start with replicating TradFis measures. This next step in establishing a pattern of proactive cryptocurrency regulation illustrates the global communitys continued effort to provide a clear framework for crypto services. Borrowing modes of governance from an already familiar TradFi network could also have a wider impact on how governments go about implementing regulatory measures. This would require all parties within the crypto industry, as well as within national and supranational regulatory bodies working together, to ensure the rules dont limit innovation, and to support and protect both consumers and firms across borders.

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Why global coordination on crypto regulation is paramount - Yahoo Finance

Cybershib

Cybershib is a pre-eminent crypto firm based on the Shibarium network that aids developers in project development and provides marketing services to startups.

CAPE CORAL , FL, March 15, 2023 (GLOBE NEWSWIRE) -- Artificial Intelligence (AI) is being increasingly utilized by the masses and this use is not just limited to getting questions answered or writing research papers, articles, and blogs. It is also being utilized to come up with unique designs, logos, and solutions to problems faced by skilled people in different sectors. Recently, the use of this innovation was included in the crypto industry which helped yield fantastic results. AI not only provides assistance for the development of the blockchain-based projects but is also steadily culling the problems faced by developers and users in the crypto sphere.

What is Cybershib?

Cybershib is a newbie cryptocurrency firm built on the decentralized Shibarium network. The firm aspires to make web 3.0 development a piece of cake for every individual by handing over the developmental work to artificial intelligence.

Individuals planning on creating new projects simply have to enter their requirements as a command on the platform and wait for AI to do the rest of the job. Currently, users can access the firms website and use the AI image generator to understand how things work.

Cybershib is currently working on the launch of a Pro version platform that will provide AI assistance to developers for creating new projects on the blockchain.

The $CHI AI PRO Version

Cybershib owns a superlative AI technology that has the capability of comprehending the complex systems of blockchain and providing flawless solutions to the problems faced by developers. The AI system also responds to the needs of creators by pioneering advanced mechanisms through the use of algorithms.

The Pro version of Cybershib will aid in the creation of tokens, logos, animations, smart contracts, telegram bots, and even complete websites. Users just have to enter the description of what they exactly need.

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Payment Mechanisms

Payments received by Cybershib in exchange for their services can only be in the form of $SHIB or $CHI. The firm utilizes this digital method of monetary exchange to ensure safety and transparency at all levels.

Utilization of Revenue

Cybershib believes that the prosperity of a firm lies in the well-being of its community. For this purpose, all its actions are aimed at the welfare of its users. Tokens collected as revenue will be burned by the firm. This burning mechanism will help diminish the supply of tokens. The decreased supply together with the increased demand will create surges in the token price. This in turn will help ameliorate the value of assets owned by investors.

Cybershib and its Marketing Agency

For it to thrive a startup not only needs a strong foundation but also good marketing tactics. To facilitate new projects, Cybershib has also launched its very own marketing agency under the name of Shibarium TokensTM. This is another great utility for the firm and the revenue generated via the provision of marketing services will also be used for the betterment and development of the Cybershib platform.

Features Available on the Website

The Cybershib website provides services like telegram call channels, Twitter influencers, YouTube promotions, social media management, ads management, and graphic designs.

Renouncement of Ownership

The ownership of Cybershib was renounced as soon as the project was deployed to uphold the concept of decentralization and promote safety and transparency.

$CHI token can be traded on Shiba Swap.

Final Words

Cybershib has well-calculated assumptions about the potential of AI and how it can revolutionize the crypto industry. It thus exploits AI for the greater good of people.

Furthermore, potential investors and cryptocurrency enthusiasts interested in Cybershib can visit the projects official website or check out their social platforms for more details.

Website | Twitter | Telegram | Instagram | Medium

Disclaimer:

The information provided in this release is not investment advice, financial advice, or trading advice. It is recommended that you practice due diligence (including consultation with a professional financial advisor) before investing or trading securities and cryptocurrency.

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Web 3.0 Developers Get the Magical AI, CyberShib, for the Development of New Projects - Yahoo Finance