In a resounding declaration that has once again ignited the crypto sphere, Tether’s CEO, Paolo Ardoino, has doubled down on his Bitcoin maximalist beliefs. Imagine a world where the digital gold, Bitcoin, reigns supreme, outliving the traditional currencies we’ve known for centuries. Ardoino envisions exactly that, painting a compelling picture of a future where Bitcoin not only survives but thrives, while fiat currencies, including the dollar and euro, fade into obsolescence. Let’s dive into the details of this bold prediction and explore what it could mean for the future of finance. Why Does Tether’s CEO Believe Bitcoin Will Outlast Fiat Currency? Ardoino’s conviction isn’t just based on crypto enthusiasm; it stems from a deep-seated concern about the inherent vulnerabilities of fiat currency systems. In his recent interview with Bitcoin.com News, he articulated a stark view of fiat’s future, predicting its eventual downfall due to ‘structural flaws’. What are these flaws, you might ask? They boil down to issues that have plagued government-backed currencies throughout history: Inflationary Pressures: Fiat currencies are often susceptible to inflation, eroding purchasing power over time. Governments can print more money, leading to a devaluation of the existing currency. Centralized Control: Fiat systems are centrally controlled by governments and central banks. This centralization makes them vulnerable to political and economic instability, and decisions made by these entities can significantly impact the currency’s value. Debt Accumulation: Many fiat-based economies are burdened by massive debt. This unsustainable debt can lead to economic crises and currency devaluation. Loss of Trust: When governments mismanage economies or engage in excessive money printing, public trust in fiat currencies can erode, paving the way for alternative systems. Ardoino believes these structural issues will culminate in hyperinflation and a global financial reset, scenarios that fiat currencies are ill-equipped to handle. He positions Bitcoin as the antithesis to these flaws, highlighting its decentralized nature, limited supply, and resilience as key strengths for long-term survival. Tether USDT: A Temporary Bridge in the Crypto Market? Now, consider Tether USDT , the stablecoin behemoth with a market capitalization exceeding $140 billion. It might seem counterintuitive for the CEO of Tether, a company built on a fiat-backed stablecoin, to declare fiat’s impending demise. However, Ardoino views USDT not as a permanent fixture, but as a ‘temporary tool’. Think of it as a crucial stepping stone in the transition towards a Bitcoin-dominated financial system. USDT, and stablecoins in general, play a vital role in the current crypto market ecosystem: Liquidity Provision: Stablecoins provide essential liquidity to crypto exchanges, enabling seamless trading between different cryptocurrencies and fiat. Hedging Tool: Traders often use stablecoins to hedge against the volatility of other cryptocurrencies, parking their funds in USDT during market downturns. On-ramps and Off-ramps: USDT acts as a bridge between the traditional financial world and the crypto space, facilitating the entry and exit of funds. Global Transactions: Stablecoins streamline cross-border transactions, offering a faster and often cheaper alternative to traditional banking systems. Despite these advantages, Ardoino suggests that USDT’s reliance on fiat reserves inherently ties its fate to the very system he predicts will fail. In his vision, as Bitcoin adoption grows and the world moves closer to a BTC standard, the need for fiat-pegged stablecoins like USDT will eventually diminish. Bitcoin, in its pure, decentralized form, will become the primary unit of account and store of value. Is a Financial Reset Inevitable? The concept of a financial reset , often discussed in conjunction with fiat currency collapse, is a dramatic one. It implies a fundamental restructuring of the global financial system. Ardoino’s prediction of hyperinflation and fiat failure certainly points towards such a reset. But what does this actually entail, and is it truly inevitable? Arguments for a potential financial reset often highlight: Unsustainable Global Debt: The sheer volume of global debt, both public and private, is reaching unprecedented levels. Servicing this debt becomes increasingly challenging, and some argue it’s mathematically impossible to repay. Central Bank Policies: Years of quantitative easing and low-interest rate policies by central banks have arguably inflated asset bubbles and distorted markets. The unwinding of these policies could trigger significant economic shocks. Geopolitical Instability: Rising geopolitical tensions, trade wars, and conflicts can disrupt global supply chains and financial flows, potentially leading to economic instability. Technological Disruption: Emerging technologies, including blockchain and cryptocurrencies, are challenging traditional financial systems. This disruption could accelerate a shift towards new financial paradigms. While the idea of a complete financial reset is debated, the underlying concerns about fiat currency stability and the global economic outlook are very real. Ardoino’s perspective, while maximalist, taps into these anxieties and offers Bitcoin as a potential solution – a decentralized, censorship-resistant alternative in a world facing financial uncertainty. Bitcoin: A Currency for the Next 2,000 Years? Ardoino’s most striking claim is that Bitcoin is the only currency capable of lasting 2,000 years. This is a monumental assertion, considering the relatively short lifespan of most fiat currencies throughout history. What makes him so confident in Bitcoin’s enduring power? His confidence likely stems from Bitcoin’s core properties: Decentralization: Bitcoin is not controlled by any single entity, government, or corporation. This decentralization makes it resistant to censorship and manipulation. Limited Supply: The 21 million Bitcoin cap ensures scarcity, a fundamental property of sound money. This scarcity contrasts sharply with fiat currencies, which can be inflated at will. Transparency: All Bitcoin transactions are recorded on a public, immutable blockchain, providing a high degree of transparency and auditability. Network Effect: Bitcoin’s growing network effect, with increasing adoption and infrastructure development, strengthens its resilience and value proposition. Technological Innovation: The Bitcoin network continues to evolve with ongoing development and upgrades, enhancing its scalability, security, and functionality. While predicting any currency’s lifespan for 2,000 years is inherently speculative, Ardoino’s point underscores Bitcoin’s unique characteristics that differentiate it from traditional fiat. Its decentralized, scarce, and transparent nature positions it as a potential long-term store of value and medium of exchange, particularly in a digital age. Navigating the Crypto Market in a Potentially Fiat-less Future So, what are the actionable insights for those navigating the current crypto market , considering Ardoino’s visionary pronouncements? Whether or not you fully subscribe to the 2,000-year Bitcoin timeline, there are key takeaways: Diversification is Key (Even in Crypto): While Ardoino is a Bitcoin maximalist, a balanced portfolio in the broader crypto market might still be prudent. Explore other promising cryptocurrencies and blockchain projects, while maintaining a core Bitcoin holding. Understand Stablecoin Risks: Be aware of the potential risks associated with stablecoins, including regulatory scrutiny and reliance on fiat reserves. Consider decentralized stablecoin alternatives. Long-Term Perspective: Ardoino’s vision emphasizes a long-term perspective on Bitcoin and crypto. Focus on the fundamental value propositions of these technologies rather than short-term market fluctuations. Educate Yourself: Continuously learn about the evolving crypto landscape, including Bitcoin’s technological advancements, regulatory developments, and macroeconomic factors that could influence the future of finance. Prepare for Volatility: The crypto market is known for its volatility. Be prepared for price swings and manage your risk accordingly. Dollar-cost averaging can be a useful strategy for long-term accumulation. Ultimately, Paolo Ardoino’s statements serve as a powerful reminder of the transformative potential of Bitcoin and the questions surrounding the long-term viability of fiat currencies. Whether his predictions fully materialize remains to be seen, but his visionary outlook provides valuable food for thought for anyone interested in the future of money and the evolving financial landscape. In conclusion, Tether CEO Paolo Ardoino’s reaffirmation of his Bitcoin maximalism and his prediction of fiat currency collapse paint a dramatic, yet thought-provoking picture of the future. He positions Bitcoin as the ultimate survivor in a financial reset, while viewing USDT as a temporary tool in the transition. Whether you agree with his bold stance or not, his perspective highlights the fundamental questions surrounding the future of money and the enduring appeal of decentralized, scarce digital assets like Bitcoin. The crypto journey continues, and the narrative is far from over. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin institutional adoption.
BlackRock’s recent inclusion of its Bitcoin ETF into targeted allocation portfolios signals a significant shift in traditional finance’s approach to cryptocurrency. This strategic move by the world’s largest asset manager
The soaring price of Dogecoin (DOGE) following the November 2024 US elections has put unexpected pressure on China-based altcoin mining products provider Intchains Group. The company found itself scrambling to fill orders for Dogecoin mining rigs after underestimating the extent of demand. Intchains reported full-year earnings on Thursday, reporting non-GAAP adjusted net income of $8.3 million on revenue of $38.6 million, reflecting a significant 242.7% increase over the prior year. The company is looking to ship 2,681,500 ASIC chips in 2024, an 84% increase over the prior year. Notably, 1,705,408 units were sold in Q4 2024 alone, a significant jump from the 423,040 units sold in the same quarter the previous year. “The cryptocurrency market showed a strong performance in Q4 2024, and major financial institutions’ optimism about 2025 prospects has increased,” said Qiang Ding, CEO and chairman of Intchains. “Continuing this momentum, Dogecoin saw solid price growth throughout the quarter. As a leading supplier of Dogecoin mining machines, the company also achieved satisfactory operational results in Q4 2024.” Related News: How Are Binance Whales Behaving in the Recent Downturn? Custom Metric Reveals Onchain Binance Data Following Donald Trump’s election victory and his appointment of Elon Musk as head of the newly established Department of Government Efficiency (DOGE), demand for Dogecoin mining machines skyrocketed, catching Intchains off guard and leading to a backlog of unfulfilled orders spanning into the first quarter of 2025. The price of Dogecoin rose from $0.15 to a peak of just over $0.47 on Nov. 12 following Trump’s announcement of Musk’s new role. The cryptocurrency’s market cap then surpassed $60 billion, but has since lost significant value amid the overall cryptocurrency decline. *This is not investment advice. Continue Reading: Chinese Company Can’t Keep Up With Demand for Mining Devices in This Altcoin After Trump Wins Election
BlackRock, the world's largest asset manager, is including its Bitcoin ETF in a sliver of its Target Allocation with Alternatives portfolios.
According to the most recent data, Bitcoin’s hashrate has dipped beneath the 800 exahash per second (EH/s) threshold, coinciding with a 30-day low in mining revenue, commonly referred to as hashprice. As of Friday, the hashprice is hovering just below $50 per petahash per second (PH/s), marking a notable decline in miner profitability. Bitcoin Miners
Bitcoin Magazine MEVpool, The Best Bandaid We Have For MEV Miner Extractable Value. That phrase is essentially one of the biggest fundamental risk spaces that exist for blockchain based systems. The original conception of a blockchain included incentives for miners (or other consensus participants deciding transaction ordering) to earn revenue based on whatever initial block subsidy is entered into circulation each block in addition to fees paid by users to have their transactions confirmed. These two things are no longer the only sources of revenues that incentivize the actions of miners. More complicated contracts and protocols now exist to facilitate the creation of, and exchange between, different assets hosted on a blockchain. These contracts, by design, allow open access to anyone. If you have a required asset, and can fulfill the exchange conditions specified, any user can unilaterally interact with the contract or protocol to exchange assets. Given that miners ultimately decide what transactions are accepted into blocks, this gives miners preferential access to “jump the line” in interacting with such contracts and protocols. This presents a serious problem, depending on the degree of complexity involved in successfully extracting value from different contracts or protocols. This creates a huge centralization pressure on mining the more complicated these contracts and protocols become. Miners have the ability to collect all of this value, but in order to do so they actually need to analyze the current state of these contracts. The more complex the contract, the more complex and costly the analysis, and the more centralization pressure it creates for miners. This is horrible for censorship resistance. Proposer Builder Separation Ethereum is the poster child of MEV gone wrong. Due to the high complexity of contracts deployed on Ethereum, the amount of MEV created on that chain has been very large. Naturally they have come up with attempted solutions in response to the issue. Proposer Builder Separation sought to mitigate the centralization risks of MEV by creating separation between the two roles involved in moving the blockchain forward. Builders (block template creators) handle the role of actually assembling transactions into blocks, and Proposers (miners/stakers) choose between the available block templates to select the most profitable one. The idea behind the proposal is that we can let the centralization affect template producers, but safeguard miners/stakers from it. As long as there is a competitive market for template production, things should still be secure. In practice this isn’t what has happened. The reality is that only a few competitive Builders exist, and when the most profitable template producers decide to censor something, it is effectively censored by every miner/staker that chooses to use those profitable block templates. Given that it is economically irrational to not choose the most profitable template, this doesn’t truly solve the risk of censorship. MEVpool The MEVpool proposal by Matt Corallo and 7d5x9 is an attempt to modify the PBS proposal for Bitcoin in a way that actually does provide mitigation for the risk of censorship. The main difference between PBS and MEVpool is the outsourcing of template construction isn’t total, in MEVpool miners still ultimately construct the end block template themselves. They simply outsource the process of selecting the subset of transactions that optimize MEV extraction, including those in block templates they construct themselves. This aims to allow miners to maximize their cut of MEV while still maintaining the freedom to include whatever transactions they want, as opposed to the binary choice of accepting censorship for maximal profit or forgoing profit to prevent censorship under PBS. The proposal requires setting up marketplace relays to host orderbooks where MEV extractors can post their proposed transactions and the fees they will pay to miners for including them in a block. They would allow the extractor to define conditions under which they will pay for transaction conclusion, i.e. only if they are the first transaction to interact with a specific contract in the block. Marketplaces would also support sealed or unsealed orders, i.e. sealed requests are orders where the transaction proposed isn’t actually revealed to the miner until they mine the block. How does that work? All miners need is the hash of a transaction to include in the merkle tree to start mining, they don’t need the full transaction until they find a valid block and go to broadcast it. But they do need to know that the transaction is valid. This is the role the marketplace relays have to fill. There are two ways they can go about doing this. First, the simplest way is for them to be a purely trusted third party. Extractors of MEV would submit their transactions to relay operators, and miners would connect to these relays. Afterwards they would request the list of Sealed and Unsealed bids from the marketplace operator, including the hashes necessary to include Sealed bids, and have a custom piece of software construct the block template. Once they successfully find a valid blockheader, they would send the block minus the missing data to the relay. The relay would then include the full Sealed transactions, broadcast the block themselves, and then send the miner the full Sealed transactions so they could broadcast the block as well. During this entire process the MEV extractor’s fee would be held in escrow by the marketplace relay, and released to the miner after they find a valid block. This requires putting a lot of trust in the relay, both on the part of miners as well as the MEV extractors paying them. The second option is the use of a Trusted Execution Environment (TEE) to handle the construction of block templates on the part of miners, as well as handling the encrypted Sealed bids. Miners would run the custom template software and a Bitcoin node inside the TEE. After miners have received the Sealed and Unsealed bids and constructed their block, the TEE would sign an attestation of the block and provide the marketplace relay with a session key. The marketplace would encrypt the Sealed transactions and a transaction paying the miner its fee to the session key. After the miner finds a valid blockhash meeting the difficulty target, the TEE would decrypt the Sealed transactions and allow them to broadcast the full block and collect their fee from MEV extractors. In this scenario everyone involved has to trust the TEE to remain secure. The End Result The end result of this is very likely in my opinion to be similar to PBS on Ethereum. There are only a handful of large Builders constructing MEV optimized templates for miners, and they all have transactions directly submitted to them out of band from the mempool. MEVpool marketplace relays, both variations, are trusted to publicly broadcast fee information about orders submitted to them to allow normal users to make proper fee estimation. If large marketplaces were able to attract transaction submissions not sent elsewhere and withheld that fee data, this could affect users at large. Also, while it does allow miners the freedom to select their own transactions outside of the MEV optimized subgroup, it still leaves room for large marketplaces receiving private transaction submissions to leverage that position. Such marketplaces could coerce miners into censoring other transactions by withholding their orderbook data from them if no competitor existed with access to the same information. Ultimately I do not see this as a solution to the issue of MEV, more of a bandaid or mitigation of the worst possible effects of it. It does not completely remove the centralization risks and pressures, but it does ameliorate them in certain areas. This is a guest post by Shinobi. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine. This post MEVpool, The Best Bandaid We Have For MEV first appeared on Bitcoin Magazine and is written by Shinobi .
El Salvador's Bitcoin Law changes helped the country to secure up to $3.5 billion, despite some criticism among Bitcoin advocates.
Hyperliquid, the decentralized exchange (DEX) and Layer 1 (L1) blockchain, has flipped PumpFun to become the third highest revenue generator in DeFi, and the top revenue generator with a token. The DEX has earned $12.6 million in fees over the last week, or $1.8 million per day. The revenue does not include any blockchain (HyperEVM) transaction fees, and is exclusive to its DEX offerings. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io
The Biden administration’s regulatory stance on cryptocurrency has sparked controversy, with allegations of oppressive measures against DeFi founders in the sector. Reports indicate that some DeFi developers were coerced into
The Ethereum ecosystem is constantly evolving, and ensuring the security and reliability of its upgrades is paramount. In a recent development, the Ethereum Foundation has announced the successful completion of an external audit for the highly anticipated Pectra system contracts. This news comes on the heels of a setback encountered during the Holesky testnet phase, highlighting the rigorous processes in place to safeguard the network. Let’s delve into what this validated audit means for Ethereum and its future. Why is the Ethereum Pectra Audit Crucial? Audits are a cornerstone of blockchain development, acting as a critical line of defense against vulnerabilities. For a network as significant as Ethereum, the stakes are incredibly high. The Pectra upgrade, designed to enhance network performance and introduce new functionalities, requires meticulous scrutiny to prevent potential exploits or unforeseen issues. This is where external audits come into play. They provide an unbiased, expert assessment of the code, ensuring it meets the highest security standards before being deployed on the main network. Think of it like this: Independent Verification: External auditors are like independent reviewers checking a company’s financial statements. They bring fresh eyes and specialized skills to identify potential flaws that internal teams might miss. Risk Mitigation: Audits significantly reduce the risk of costly errors or security breaches in the live Ethereum network. Catching bugs in the audit phase is far less disruptive than dealing with them after deployment. Community Trust: A publicly available audit report builds confidence within the Ethereum community. It demonstrates transparency and a commitment to security, reassuring users and developers alike. The Ethereum Foundation’s proactive approach to security, demonstrated by this comprehensive audit, is a testament to their dedication to a robust and dependable blockchain platform. Holesky Testnet Failure: A Blessing in Disguise? Before celebrating the audit completion, it’s important to acknowledge the recent hurdle faced on the Holesky testnet. The Pectra upgrade experienced a failure on Holesky due to unexpected bugs. While initially appearing as a setback, this incident actually underscores the value of testnets and thorough testing. Consider these points about the Holesky testnet failure : Purpose of Testnets: Testnets like Holesky are specifically designed to mimic the main network environment but without real economic risk. They are crucial for identifying and resolving issues in a controlled setting. Early Bug Detection: The failure on Holesky allowed developers to pinpoint and address bugs that could have had far more serious consequences if they had slipped into the mainnet deployment. Enhanced Upgrade Robustness: By encountering and overcoming challenges on the testnet, the Pectra upgrade ultimately becomes more robust and reliable for its eventual mainnet launch. In essence, the Holesky incident, while initially disruptive, served as a valuable learning experience, reinforcing the importance of rigorous testing and iterative development in the complex world of blockchain upgrades. Who Conducted the Pectra System Contracts Audit? The Ethereum Foundation entrusted this critical task to a consortium of leading blockchain security firms, demonstrating a commitment to diverse expertise and comprehensive coverage. The auditors involved are: a16z: A prominent venture capital firm with a strong focus on crypto and blockchain technologies, bringing their deep understanding of the ecosystem to the audit process. Immunefi (Blackthorn): A leading bug bounty platform and security services provider in the blockchain space, known for their expertise in identifying and mitigating vulnerabilities. Dedaub: A renowned blockchain security and smart contract auditing firm, recognized for their rigorous methodologies and in-depth code analysis. Plainshift: Specialists in formal verification and smart contract security, employing advanced techniques to ensure code correctness and resilience. Sigma Prime: A well-respected blockchain security and engineering firm, with a proven track record in auditing and securing complex blockchain systems. The collaboration of these five distinct yet highly qualified entities ensures a multi-faceted and thorough blockchain security assessment of the Pectra system contracts. Accessing the Audit Reports: Transparency and Openness True to the ethos of blockchain and open-source development, the Ethereum Foundation has made the full audit reports publicly accessible. You can find them in the Pectra System Contracts Audits repository. This transparency is vital for several reasons: Community Scrutiny: Openly available reports allow the broader Ethereum community, including developers and security researchers, to review the findings and contribute to the ongoing security dialogue. Knowledge Sharing: Sharing audit details promotes knowledge sharing within the blockchain security community, fostering best practices and advancing the overall security landscape. Building Trust: Transparency in security processes strengthens trust in the Ethereum platform and its commitment to user safety. By making these reports readily available, the Ethereum Foundation reinforces its dedication to an open, secure, and collaborative ecosystem. What’s Next for the Ethereum Upgrade? With the successful completion of the external audit, the Ethereum upgrade process for Pectra can move forward with increased confidence. The insights gained from the audit, along with the lessons learned from the Holesky testnet experience, will be instrumental in ensuring a smooth and secure mainnet deployment. Looking ahead, expect the following: Addressing Audit Findings: The Ethereum development teams will carefully review the audit reports and address any recommendations or identified areas for improvement. Further Testing and Refinement: Continued testing on testnets and internal simulations will likely occur to validate the fixes and ensure the upgrade’s stability. Mainnet Deployment Planning: Once sufficient confidence is achieved, the Ethereum Foundation will announce a timeline and plan for the Pectra upgrade deployment on the main network. The journey of blockchain development is often iterative and involves navigating challenges. The Ethereum Foundation’s response to the Holesky testnet issue and the subsequent comprehensive audit highlight a mature and responsible approach to network evolution. This commitment to security and transparency is what underpins the long-term viability and success of Ethereum. The completion of the Pectra audit marks a significant milestone in Ethereum’s ongoing development. It showcases the robust processes and expert scrutiny applied to ensure the network’s security and reliability. While the road to upgrades may have its bumps, the Ethereum Foundation’s dedication to thorough testing and transparent communication ultimately strengthens the platform for the benefit of its entire community. The future of Ethereum looks secure and bright, thanks to these crucial steps. To learn more about the latest Ethereum trends, explore our article on key developments shaping Ethereum price action.