Daily Crypto NewsEDITION #221, 24 May 2021

Musk, you're wrong!

Hey #Moni maker 🔏

Today, in 1941, the American singer, poet and composer Bob Dylan was born. In one of his most famous songs, Bob is trying to reach heaven. To summarize everything, then this is what the entire crypto market is doing now. Everyone has forgotten about ToTheMoon and want at least go to the stratosphere, to heaven. We are about coin charts, of course.

Well, the Digest is with us on earth. And he calls you to read it! Let’s go!

Ethereum co-founder Vitalik Buterin has posted a lengthy paper on the limits to blockchain scalability, criticizing claims made by Tesla CEO Elon Musk.

The article, published on Buterin’s personal blog on Sunday, emphasizes the trade-off between decentralization and scalability in architecting blockchain networks. The article comes in response to Elon Musk’s May 15 tweet asserting that Dogecoin will emerge as the leading chain if it moves to increase its block size by 900%:

“Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.”

Buterin challenged Musk’s proposition, emphasizing the challenge of seeking to achieve a sharp increase in scalability and throughput “without leading to extreme centralization and compromising the fundamental properties that make a blockchain what it is.”

Elon replied with a meme "He fears the DOGE":

So what?

Okay, CEOs! Dive into crypto! Dive as much as you want. Just be careful with dogs - according to statistics, many of them suffer from rabies and can bite off something ... the desire to tweet, for example.

When you read a new post from Tony B ... all these scandals, meme coins, dumps and other scams seem completely empty against the background of such a fundamental work. As if we closed TikTok and went to the page of the site with neuropsychology.

By the way, the Tony’s Twitter is here, there are memes, so the balance is maintained. Thanos would be pleased. And by the way, he would have followed. And you follow.

Maestro, let’s go!

All models are wrong, some are useful. Part IIX: Relative Unrealized Profit/Loss

Indicator Overview

This indicator is derived from Market Value and Realized Value, which can be defined as:

Market Value: The current price of Bitcoin multiplied by the number of coins in circulation. This is like market cap in traditional markets i.e. share price multiplied by number of shares.

Realized Value: Rather than taking the current price of Bitcoin, Realized Value takes the price of each Bitcoin when it was last moved i.e. the last time it was sent from one wallet to another wallet. It then adds up all those individual prices and takes an average of them. It then multiplies that average price by the total number of coins in circulation.

By subtracting Realized Value from Market Value we calculate Unrealized Profit/Loss.

Unrealized Profit/Loss estimates the total paper profits/losses in Bitcoin. This is interesting to know but of greater value is identifying how this changes relatively over time.

To do this we can divide Unrealized Profit/Loss by Market Cap. This creates Relative Unrealized Profit/Loss which is very useful to track investor sentiment over time for Bitcoin.

How To View The Chart

The key principle of this tool is in the ratio between market cap and Bitcoin investors taking profit.

When market cap rises much faster than profit taking we see that the market is overheating, one could say due to investor greed (red band). For the strategic investor such times have historically been favourable to take profit.

We can break down different percentages of Bitcoin Relative Unrealized Profit/Loss to determine what stage of the market we are in. This can be advantageous for the long term strategic investor.

Interactive chart: lookintobitcoin.com

Members of the State Duma are now working on amendments that will permit the use of cryptocurrency as a contractual means of payment. Digital financial assets are regarded as property under Russian law and the changes will legalize crypto payments between parties to a contract.

And while Russian companies and residents are not allowed to accept cryptocurrency, amendments to the Administrative Offenses Code that would introduce legal liability for such violations have not been filed yet. Тhe Finance Ministry has proposed an administrative fine in the range of 20 – 200,000 rubles ($2,700). However, the chairman of the Financial Market Committee, Anatoly Aksakov, believes the legal definition of digital currency needs clarification regarding the whole variety of currencies, including cryptocurrencies, stablecoins, and the digital ruble.

So what?

Well, there is something beautiful in such laws! As it was said, crypto is possible. But we forgot to mention that this crypto will be called the digital ruble.

And you...buy Bitcoin! 😉 (it's a good time!)