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Blockchain.News Presents: State of DeFi Survey

“Decentralized finance (DeFi) essentially involves a brand-new monetary system being built on public blockchains.” With the advent of blockchain, the concept of DeFi arises from the fact that there are 1.7 billion people do not have the right material or access to financial services. As a result, the wealth generated is not efficiently transferred to the unbanked population. Decentralization, as a concept allows for identical records to be kept in thousands of computers through peer to peer networks, adding to the fact that access can be granted to everyone!

DeFi is one of the hottest topics in the crypto world in 2019. According to the recent findings by dapp.com, DeFi gained tremendous growth in Q3 2019 with a market value of over USD 525 million. 88% of DeFi dApps are built on Ethereum, and MakerDAO and Nest are the two leading DeFi dApps. Finance dApps ranks 2nd in terms of trading volume, and gambling dApps remains its dominance.

Blockchain.News is proud to present the “State of DeFi Survey”! We would love to hear your thoughts on DeFi, as well as its challenges and future prediction by 25 Oct.

Take part in our survey now!

https://forms.gle/f9oDeG4djJGMrpiy6

Bitcoin Set to Recover From the Coronavirus Pandemic-Triggered Global Financial Crisis?

The price of Bitcoin has seen a decline of 8 percent from the start of this year until early April, and 90% of Finder’s survey panel believes it is caused by the coronavirus pandemic. Although COVID-19 made up for most of the explanation for the dip, many believe that the Plus Token scam also had an impact.

As economists are forecasting a global recession, the majority of the crypto community believes that Bitcoin could survive a global financial crisis. As governments around the world had been seen scurrying to produce and import scarce medical gear, BlockToken Co-founder Genson Glier added, “Most individuals will have some loss of faith in their government, especially given the crisis. This loss and lack of trust are just one of the reasons why BTC has been able to establish itself. I think people will see it as an additional asset class for wealth distribution, now more so than ever.”

Elvira Sojli, an associate professor at the University of New South Wales suggested that the upcoming Bitcoin halving event will support Bitcoin’s price. “The shrinkage in resources due to losses in the stock markets and demand for goods further depress the BTC price. The halving is the only thing keeping the price above the $5,000 threshold.”

Bitcoin as a safe-haven asset

The majority of those who were surveyed say that Bitcoin’s recent behavior affects its viability as a safe-haven asset; however, it has been suggested that the market is slow on “picking it up as a commonly tradable item.” This further suggests that Bitcoin is still lacking liquidity, while gold is currently increasingly being liquidated.

Bitcoin and Ethereum win sentiment scores

Those who were surveyed were asked if they had a positive or negative outlook on 11 cryptocurrencies. Bitcoin and Ethereum showed a majority of positive outlooks, while Binance Coin received the highest negative sentiment rate.

Ajay Shrestha, a Ph.D. candidate at the University of Saskatchewan commented, “I believe BTC (and ETH) will be more widely adopted on a long-term basis. BTC being a native cryptocurrency has lots of growth potential. Ethereum being adopted for the utility of the tokens and applications to utilize blockchain-backed digital assets will continue to rise and thrive.”

How Blockchain Technology is Helping to Fight the Novel COVID-19 Pandemic

As the world battles with the Covid-19 pandemic, and it’s consequent economic and social effects: several world governments, agencies, and institutions are joining the fight to help reduce the spread of the virus while assiduously working to create a cure and a vaccine. For each country, the coronavirus pandemic has caused a major state of emergency, the Government’s role in addressing the issue is more visible at this time when compared to private and independent institutions.

In Italy for instance, the country has recorded a cataclysmic rise in the total number of deaths which stands at 18,279 along with a record 143,626 confirmed cases as of April 10th. While the government’s proactive measures in declaring a stay at home order, closure of businesses and, sanitization of public spaces are valiant efforts can be applauded; the efforts of individuals like Cristian Fracassi and Alessandro Romaioli in turning snorkeling masks into essential breathing equipment may not be as widely publicized or recognized globally.

While innovation and technology are being deployed at scale to free the world of Covid-19, the role of blockchain technology to combat aspects of the pandemics’ negative effects has been a particularly potent weapon in this fight to restore our supply lines and authenticate information, as well as cross-border remittance.

Blockchain Gets Busy

Blockchain technology remains a game-changer in the use of encrypted open-source ledger in the processing of data. In its own right, it came as a disruptive technology that is now gradually being embraced by technology-dependent and futuristic firms worldwide. With the outbreak of the coronavirus disease in late 2019, many blockchain-based firms have launched innovative ways to make a difference in this global medical upset. Few of the application of blockchain technology in the fight against coronavirus is outlined below;

Insurance Claims

The coronavirus disease creates a major health concern that is enough to create an unbalanced book for medical insurance companies worldwide. With over a million cases all over the world, the impact on Health Management Organizations cannot be underestimated. In China where the outbreak began, Ant Financials online Mutual Aid blockchain-based platform Xiang Hu Bao has introduced a new function to process several coronavirus claims. This function undoubtedly has helped the firm reduce in-person contact as these claims are made online.

Education

With the coronavirus pandemic, there’s been a major disruption in education across all levels as the stay at home order looms. Higher educational institutions are resorting to online alternatives to take classes and write exams and Odem is providing free access to its blockchain-powered educational and credentialing platform to higher institutions. While the Odem platform may not be a perfect replacement for the traditional classroom experience, it definitely is helping to bridge the learning gap in these trying times.

Donation Tracking

The humanitarian grace of many people was reawakened with the Covid-19 disease outbreak. With donations coming from sports celebrities, business leaders, etc. HyperChain, Hangzhou based blockchain startup has created a donation tracking system that will help donors see where funds are urgently needed. With this ingenuity, HyperChain has raised millions of dollars in coronavirus donations with the promise of transparency and responsibility.

Algorand

The Algorand Foundation launched a health survey website to record public health trends during the novel coronavirus pandemic. With this survey website called iReport-COVID, infected persons can give an account of their experiences anonymously with an assurance that their identities will be protected.

Cross Border Payment Solution

The better perk of blockchain technology and its associated cryptocurrencies is to facilitate financial transactions worldwide. With financial institutions crippled, cross country payment solutions require an alternative which is best obtained from blockchain-powered cryptocurrencies.

Need for Applause?

With all that is being done with blockchain technology of which just a fraction is documented in this article, one might want to give a loud applause for these contributions but until a final victory over the coronavirus disease is achieved, all active stakeholders must keep working till global health is restored and life returns to normal in our cities. It is then that our applause to our medical practitioners, scientists, and technology deployed can be resounding.

Image via Shutterstock

Is The US Ready for CBDC? Most Americans Opposed to Digital Dollar Adoption, Survey Reveals

Most American citizens appear to be against a national digital dollar adoption within the US, preferring paper money to a central bank digital currency (CBDC), according to a survey on money perception within the United States.

CBDC sentiments in America

According to a research study conducted by crypto mining firm Genesis Mining research, findings suggest that most US citizens are opposed to the idea of a digital currency. Out of 400 participants, less than 25% of respondents agreed that the US government should adopt a central bank digital currency over traditional paper money. 60% of participants said that the US government should not “replace physical cash with a digital-only dollar.”

However, it appears as though there are more respondents that agree to CBDC adoption by the government, as the same survey conducted in 2019 only saw 13% of respondents being in favor of digital dollar adoption.

Why the opposition to CBDC adoption?

Through the survey, it was found that the general American population had a poor understanding of what assets or value actually backed the US dollar, with 38% of participants believing that USD was pegged to gold, bonds, or oil. Another 13% of participants responded that “they simply did not know.”

However, despite the lack of monetary awareness, a majority of participants identified inflation as a critical issue impacting the financial system.

Furthermore, according to the report released by Genesis Mining, it appears as though many US citizens associated digital currencies with cybercrime, indicating that they were used to funnel illicit activities. This may be a reason why many showed a lack of support for central bank digital currency adoption.

Though most US respondents seemed to oppose the idea of replacing paper money with digital currency, many acknowledged that 100 years from now, people will no longer be using physical cash.

Federal Reserve is furthering CBDC research

The findings were released the same week the president of the Cleveland Federal Reserve, Loretta Mester, delivered a speech regarding the US national Federal Reserve and regional Federal reserve banks’ partnership in furthering CBDC research. She said that throughout the pandemic, the US Federal Reserve had been assessing the costs, risks, and benefits behind CBDC development.

With the COVID-19 pandemic leading to increased online services and digital payments leveraged by consumers worldwide, Mester said that the US was evaluating and researching CBDC issuance, to see whether it would go in hand with the rise in demand of consumer-to-consumer and cross-border payments.

The Cleveland Federal Reserve Bank president acknowledged that “central bank digital currency had to do with the future” and said that the Federal Reserve was working to deliver appropriate adjustments for an enhanced digital system that will remain in effect after the pandemic.

Mester said:

“The Fed is working to enhance our current portfolio of payment services to ensure they meet evolving customer needs […] But one thing is certain: we must ensure that our payments system remains modern, resilient, and able to adapt to changing customer needs as they evolve.”

Do Europeans Want a Decentralized Digital Euro? Asks ECB Survey

Do Europeans want a decentralized digital euro that does not rely on the central bank or a trusted central intermediary?

The European Central Bank is asking for public opinion with a new survey on the potential and public sentiment of a decentralized digital euro.

On Nov 1, Christine Lagarde, the President of the European Central Bank (ECB) launched a public consultation survey to gather citizen’s thoughts and feedback on the potential of a digital euro.

In a Tweet, ECB President Lagarde posted a link to the survey and said:

“We’ve started exploring the possibility of launching a digital euro. As Europeans are increasingly turning to digital in the ways they spend, save and invest, we should be prepared to issue a digital euro, if needed. I’m also keen to hear your views on it.”

The ECB President’s tweeted survey asks respondents to rank their preferences for a digital euro including what the public would expect for a CBDC in terms of services, functionalities and use cases.

In a follow-up Tweet, Lagarde posted a video and highlighted that through the survey:

“Europeans can actually express their preference and tell us whether they would be happy to use a digital euro just in the way they use a euro coin or a euro banknote, knowing that it is central bank money that is available and that they can rely upon.”

Centralized or Decentralized

The Euro Central Bank’s public consultation survey asks European’s to rank their preference for the digital euro to be decentralized or controlled by the Central bank.

The survey outlines that there are two approaches that can be taken to make a digital euro work—”one that requires intermediaries to process the payment and one that doesn’t.”

In the most likely issuance of the digital euro, it is expected that the central bank or trusted financial intermediaries would be responsible for the record the transactions.

The other method that the ECB describes for digital euro governance is decentralized, meaning it has no need for the European central bank or an “intermediary to be involved in the processing of every single payment.”

The ECB explains that a decentralized version of the digital euro would “feel closer to cash payments, but in digital form – you would be able to use the digital euro even when not connected to the internet, and your privacy and personal data would be better protected.”

This is an interesting and surprising approach by the ECB, and would bring the digital euro closer to cryptocurrency like Bitcoin, which was essentially built to end the reliance of the financial system on central banks.

While central bank digital currencies will have the speed and practicality of cryptocurrency, opposition to crypto is fundamentally why CBDC will soon exist and philosophically they are the antithesis of everything that Bitcoin was created for—to escape the constraints of a broken financial system, empower individuals with financial autonomy, and to bring transparency and trust to finance.

$250,000 BTC: Kraken Survey Shows Investors are Bullish on Bitcoin, Altcoins and DeFi in 2021

The latest Kraken VIP sentiment survey reflects how professionals and investors are thinking about how the cryptocurrency sector might evolve in the year ahead. Bitcoin price sentiment is at an all-time high with some projecting the BTC price as high as $250,000.

In the Kraken Intelligence 2H2020 Crypto Sentiment Survey released on Dec. 1, the research arm of the US-based crypto exchange Kraken focuses on its VIPS—a diverse mix of brokers, custodians, family offices, hedge funds, market makers, miners and traders—sharing their insight into the state of the crypto market heading into 2021 for any investor seeking an edge.

While there has been a slew of prominent funds and investors like Microstrategy’s Michael Saylor and billionaire investor Paul Tudor Jones making big bets on Bitcoin this year—the Kraken intelligence report indicates that the bullish sentiment has spread to its VIPs and extends to altcoins and the DeFi space.

Bitcoin and Ethereum Price Sentiment

The respondents to Kraken’s sentiment survey offer a bullish forecast for the Bitcoin and Ethereum price in 2021. The high-end estimates for the BTC price appreciation tops at $250,000 while Eth price tops at $15,010. Respondents are optimistic that next year both cryptocurrencies will provide at least 175% returns from October prices.

With the intent of gauging market optimism, particularly in light of what has been a 6-month crypto rally following unforeseen circumstances in the COVID-19 economic disruption from March 2020, Kraken Intelligence asked survey takers for their 2020 Bitcoin (BTC) and ether (ETH) price targets, in addition to 2021 to compare survey-over-survey summary statistics to identify changes.

According to the Bitcoin price targets for 2020 fell in the last half of the year. The Kraken findings show:

“The average Bitcoin price target among 309 responses fell -35% survey over-survey to $14,866, well below February’s average of $22,866. The median price target also retraced -28% from $19,424 to $14,000, and the most commonly cited price target was $15,000, down -25% from $20,000.”

For crypto’s number two—Ethereum—price sentiment was also down in the latter half of the year. The survey reads:

“With respect to ether (ETH), the average price target among 289 responses was $549, off -32% from the previous survey’s average of $810. The median price target was unchanged at $500 and the most frequently cited price target was $500, up +66% from $300. With only 3 months left in the year, we anticipated less optimistic summary statistics and lower standard deviations for both Bitcoin and ether price targets.”

The responses from participants on their 2021 Bitcoin and Ether price targets indicate that the market believes the latest crypto rally has serious legs and will continue into 2021.

The Kraken findings show:

“The average 2021 price target for Bitcoin came in at $36,602. The median price target is $25,000, and the most commonly submitted target is $20,000. Approximately, 8% of respondents provided a price target greater-than-or-equal-to $100,000, roughly 20% of respondents reported a price target greater-than-or-equal-to $50,000.”

Regarding Ethereum, Kraken’s survey participants appear to be even more optimistic of ETH performance next year with close to 59% believe that ether will, at least, hit $800. Additionally, 22% of respondents see ETH surpassing its previous all-time high of $1,595 set in early January 2018 and just under 92% see ether, at the very least, trading higher than current prices in 2021.

Altcoin and DeFi Sentiment

Altcoin and DeFi will not be left behind by investors in 2021, if Kraken’s findings are any indication. Despite tendencies to be highly volatile, altcoins remain front and center for many market participants despite collectively underperforming to Bitcoin.

Respondents were asked which altcoins were their favorite(s) and why. Participants were told to provide no more than 5 altcoins and those with fewer than 10 votes were excluded from the analysis. Approximately 105 unique altcoins were mentioned across 466 entries, with respondents providing an average of 2.5 altcoins.

Polkadot, Chainlink and Monero led the charge after Ethereum as the most popular alternative cryptocurrencies. A big factor for Kraken’s respondents in selection altcoin projects was cited as “community strength.”

Regarding the decentralized finance (DeFi ) space—the popularity of Ethereum, Polkadot and Chainlink reflected the rise of DeFi. Kraken’s respondents are investing in the belief that decentralized finance and reimagined financial products may disrupt the traditional industry. DeFi is also being credited for the increased adoption of stablecoins.

Optimism Ahead

In conclusion, the findings of Kraken’s report show that institutional adoption is driving bullish sentiment in the Bitcoin and crypto space. Almost 70% of survey respondents believe we are now in a bull market and believe that innovation, improvements, and positive regulation will boost their investments in 2021.

Why Bitcoin Investors Shouldn’t Expect a Straight Moon Shot Over $20,000 Just Yet

Bitcoin has gained over 166% since the start of the year and while the BTC price has been continuously testing the $19,500 resistance over the last month—the pioneer cryptocurrency has not yet produced the much-anticipated moon shot over $20,000.

While the crypto market has been rallying on increased institutional acceptance of Bitcoin, a strong correlation to a bullish stock market and government COVID-induced money printing—recent analysis and survey results indicate we could be in for a long period of stagnation before the BTC price moons.

Where’s the BTC Moon Shot?

Institutional and retail investor belief in Bitcoin has been building this year and has consequently propelled BTC prices to its all-time-high level. More impressive is that less than a year ago, BTC was worth just $4,000 per coin after taking a black swan dive with the rest of the traditional markets in March.

Paolo Ardoino, CTO of Bitfinex commented on growing institutional belief. He told Blockchain.News:

“Bitcoin has solidified its place in investment portfolios as an asset to hold as a hedge against inflation and currency devaluation. As Bitcoin continues on its path towards acceptance as an established asset class, interest from institutional investors will grow, while traditional financial institutions will develop even more crypto-related products to meet the growing interest and appetite for Bitcoin.”

Following its breathtaking rally, the market appeared in full belief that once Bitcoin reached this price level, nothing would stop the cryptocurrency from launching into completely new realms of price discovery, but instead, the market has been moving sideways for the last month and consolidating.

Lark Davis, a popular YouTube crypto analyst known as the CryptoLark today tweeted an eerily similar comparison of Bitcoin at the $10,000 level and today’s levels above $19,000, indicating crypto investors could be in for weeks of sideways Bitcoin price action.

The CryptoLark shared the analysis above and wrote:

“Eerily similar chart pattern playing out now compared to the 10k range for Bitcoin. What if we don’t stage an insane breakout to 20k any second but instead range sideways for weeks?”

While price consolidation is often a bullish sign that upward movement will follow, another technical analyst called ImmortalTechnique says a breakout won’t arrive before a number of shakeouts, traps in either direction and extreme deviations.

Source: BTCUSD on TradingView.com

The pseudonymous analyst argues that although Bitcoin should “consolidate” below ATH, price action will get extremely volatile.

What do Investors Think?

As Bitcoin exploded towards the end of 2020 and recorded gains over 160% for the year, news sites and Twitter feeds have reported an overwhelming bullish sentiment for the flagship cryptocurrency with projections ranging from $50,000 – $500,000 per BTC in the next few years. But a shock survey from Genesis Mining reveals that not everyone is so sure.

Institutional mining platform, Genesis Mining conducted a survey to quantify the current Bitcoin investment sentiment. 1,000 US-based investors were surveyed revealing that although the majority were sure the BTC price would continue to appreciate—only 17% are betting on $50,000 BTC and only around 3.5% of respondents believe that the Bitcoin price can reach $500,000 by 2030.

The survey, however, found strong support for Bitcoin’s case as a store of value with two-thirds tipping BTC as a better long-term hold than the US dollar. Over 50% also tipped that Bitcoin will replace traditional safe-haven assets like gold and real estate within the next ten years.

Genesis survey reveals that the overall sentiment for Bitcoin remains bullish in the majority, but with only 17% predicting $50,000 by 2030 the findings indicate that that overall the respondents do not believe Bitcoin can grow another 160% in the next ten years—despite Bitcoin making an almost identical price percentage gain in just the last few months.

The results reveal that over 30% of respondents are expecting the Bitcoin price to move sideways or decrease over the next ten years due to regulatory pressure and around 20% are expecting overreaching government bans.

While the sample size is not indicative of the entire global Bitcoin investor base, the revelations in the findings may serve as a shock to most taking part in the current Bitcoin bull market.

At Least 16% of Americans Have Invested in Crypto: Pew Research Center

A recent survey from the Pew Research Center has drawn an insight into the popularity of emerging digital currencies amongst Americans.

Per the survey conducted between 13 to 19th of September, at least 16% of respondents say they have either invested in, done transactions with, or interacted with cryptocurrencies. The survey shows that digital currencies like Bitcoin (BTC), Ethereum (ETH), and other altcoins are more popular amongst men than women.

The level of popularity of digital currencies varies amongst Americans, with 86% saying they have heard little about the nascent asset class. As much as 24% acknowledged they have listened to a lot about crypto, 13% say they have heard nothing about crypto.

Knowledge Gap Tightening

Understanding digital currencies amongst Americans is growing, and the Pew Research Center survey supports this fact. In similar research conducted back in 2015, the centre reported as many as 48% of adults to say they had heard of Bitcoin (the primary subject of the survey), and just 1% said they had ever collected, traded, or used it.

This result is obviously different from the 16% who have now engaged with the coin in one form or the other. Younger adults are also proven to have greater exposure to cryptocurrencies compared to their older counterparts. While men are twice (22%) as likely to engage with crypto as women (10%), the Pew Research survey shows that crypto is more popular amongst Asian Americans, with 43% saying they have heard a lot about digital currencies.

Hispanic adults at about 29% and Black or African American 25%, noting they have heard much about cryptocurrencies. Across household income groups, high earners have higher interest crypto followed by middle income and lower earners, respectively.

Growing Media Hype Aiding Crypto’s Popularity

The performance of the cryptocurrency industry in the year-to-date period has particularly attracted a lot of media hype. Mainstream media houses, including Bloomberg, Forbes, and CNBC, do not only cover events in the space; most now have a dedicated section for cryptocurrencies. All these contribute to the overall popularity of digital currencies.

Investors Enjoy Growing Enthusiasm & Popularity of Bitcoin: Grayscale's Study

Grayscale Investments surveyed 1000 U.S. investors recently; the Digital Currency Group (DCG) owned crypto asset manager has revealed the growing enthusiasm and popularity of Bitcoin as an investable asset class.

Key Takeaways in the Grayscale Survey

Per the survey, more than half of cryptocurrency investors in America, or about 55%, started investing in the space in the past 12 months, showing the demand for Bitcoin has surged within this time frame. According to the report, more than 66% of those who acquired the premier digital currency are still HODLing their bag to date.

About 91% of those investors who have liquidated their Bitcoin portfolio have done so at a good profit margin. The survey revealed that the growth in Decentralized Finance (DeFi) and its attendant investment innovations and the growth of Non-Fungible Tokens (NFTs) have not deterred the influence of BTC in the broader industry. Grayscale unveiled that Bitcoin still accounts for 46% of the total value of crypto markets, despite this apparent growth.

The presence of government-backed investment products linked to Bitcoin has also been cited as a good catalyst for some investors.

“More than three-quarters (77%) of the U.S. investors said they would be more likely to invest in Bitcoin if an ETF existed,” the survey report reads.

Investors welcomed its first Bitcoin Futures-linked ETF product through ProShares back in October. This has fueled the optimism that with more obvious strides, the Securities and Exchange Commission (SEC) can be convinced to approve the first Bitcoin ETF, as many other market regulators have.

Implications for Grayscale

With solid plans to offer an additional suite of digital assets products to meet investor demand, Grayscale has been sailing against the tides to float a Bitcoin ETF product. Armed through the survey with the knowledge that investors’ interest in a Bitcoin ETF has not waned over the past year, Grayscale can draw an additional motivation to meet the SEC’s demands to permit a functioning, full-fledged BTC ETF.

Image source: Shuttstock

20% of American Adults Involves in the Crypto Space, Study Shows

One of five Americans has used, traded, or invested in cryptocurrency, according to a poll by NBC News.

These statistics show that cryptocurrencies continue to gain steam despite lawmakers warning about the risks involved as they craft measures to regulate the sector.

Out of the 1,000 Americans polled from March 18 to March 22, 20% of them have dabbled in crypto, showing how the industry has soared in recent years despite being relatively young.

Half of the men surveyed between 18 and 49 years acknowledged that they had entered the crypto space, representing the largest share of all demographic groups.

In addition, per the report:

“40% of Black Americans said they have traded or used crypto, while 42% of all people between the ages of 18 and 34 years said the same.”

Crypto advocates have opined that digital assets like Ethereum (ETH), Bitcoin (BTC), and stablecoins render security, privacy, lower costs, better transaction speeds, and give the underbanked financial services.

These are some of the factors that have triggered interest in cryptocurrencies on American soil.

The crypto market in the United States has grown to the extent that President Joe Biden signed an executive order last month, directing relevant authorities to scrutinize the benefits and risks.

This move marked the first step toward regulating how crypto assets are traded.

Crypto adoption continues to gain steam across the globe. According to a recent study by Arcane Research and Ernst & Young (EY), 10% of Norwegian adults own crypto, double the rate recorded in 2018.

Furthermore, a survey by crypto exchange KuCoin revealed that 44% of Germans see crypto as part of the future of finance, Blockchain.News reported.