Category: Crypto tokens

Binance comes with iDeal on the Dutch Bitcoin (BTC) market

Binance now supports buying Bitcoin (BTC) and other cryptocurrencies via iDeal. The payment option was announced in September and introduced this week.

Binance and iDeal

Customers must go through the full identification requirements at the exchange for this. In addition, the exchange charges a 0.55% commission per iDeal transaction. In January, Binance entered into a partnership with intermediary Banxa, which also has an office in Amsterdam.

Previously, investors from Europe had to rely on their credit card. But now transactions via the European payment network SEPA and iDeal are possible at the popular exchange.

Crypto law

As of May 21, bitcoin exchanges and wallet makers fall under the Dutch Money Laundering and Terrorist Financing Prevention Act (Wwft). Folm.io has enough information. Foreign providers that, like Binance, have a Dutch-language marketplace also fall under this law.

It is expected that more and more foreign parties will enter the Dutch market, which will lead to a sharp increase in competition. There are still 38 parties in the race for registration with regulator De Nederlandsche Bank. 25 of the 38 applicants think the DNB’s requirements are too strict. One of the features on which companies will compete is commission costs per transaction. Some Dutch parties have already announced a reduction in transaction costs.

As a rule, this means that the gross profit margins of companies decrease, because commissions are an important part of the revenue model of brokers. That is why they are forced to offer other services as well, such as a payment card for example.

The fact that Binance, the exchange with the most liquid Bitcoin trading pair on the market, comes with the iDeal payment option, may be a reason for some traders to remain loyal to this exchange. Moveco.io has enough information. They can boast of a very wide range of smaller cryptocurrencies. Because the bigger a fair, the more volume it runs and the more it can turn the knob of commissions.

Not your keys, not your coins

Bitcoiners know better: they prefer to store their Bitcoin in-house by means of a hardware wallet. This gives you full control over your Bitcoin and you keep the private keys, the keys to your BTC, yourself. Every year on January 3, there is the Proof of Keys event, a moment to make Bitcoin owners aware that you do not have to depend on a third party.


ETH ‘Unlikely’ To Become ‘Popular Currency’ But It Can Still Compete With BTC

Overall, ethereum (ETH) is highly unlikely to become a “popular currency,” but it could still compete with bitcoin (BTC) in the long run, according to crypto firm Dragonfly Capital.

The firms’ General Partner Kevin Hu and Junior Partner Celia Wan wrote in their recent report that as institutional investors invest in BTC as the store of value story begins to become mainstream, their understanding of Ethereum and ETH is “complicated,” especially when concepts like decentralized finance (DeFi) and non-replaceable tokens (NFTs) are added to the mix.

While an ETH bull might argue that if the Ethereum network becomes ubiquitous and fees stabilize, ETH could become a popular currency, “that’s highly unlikely and stablecoins are fundamentally much better at both functions, even if Ethereum becomes a dominant platform.” says the author. said, adding that “ETH is unlikely to succeed as a medium of exchange and unit of account.” Chainlink price has risen.

Although ETH has five times the market cap of ERC-20 stablecoins, their total on-chain volume already exceeds that of ETH ($10 billion versus $8 billion per day), with off-chain volumes showing an even greater difference.

However, since it is used as collateral in DeFi, as a non-sovereign store of value, ETH may still have a chance to capture some potential market share. “In the long run, it’s conceivable that ETH could even compete with Bitcoin in terms of scarcity, durability, and tamper-evity,” noted Hu and Wan. Polygon price has risen.

As the reasons behind this statement they give:

EIP-1559 will lead to the stabilization of ETH’s monetary policy and inflation is likely to be halved;

Ethereum 2.0’s security model will eventually be “almost as proven” as Bitcoin’s, and a proof-of-stake consensus mechanism is likely to increase Ethereum’s security guarantees if ETH is sufficiently valuable;

if Ethereum and DeFi become the ‘financial layer of the future’, ETH could remain one of the most important collateral because it was the first collateral to scale and the DeFi ecosystem is built around it.

Having said all that, the authors believe it is possible for ETH to take 10% of BTC’s market share if Ethereum and DeFi continue to grow. If BTC’s potential market cap is around $4.7 trillion – $14.6 trillion, the potential monetary value of ETH could be between $0.5trn and $1.5 trillion, they said.

In addition, the Dragonfly Capital partners noted that ETH “will become a capital asset in addition to a consumable item [that] should have a profound effect on ETH’s appreciation in value,”

“Even if other tokens such as stablecoins can replace Ethereum as alternative forms of payment in the future, ETH will still be used by network validators for wagering and receiving rewards. Therefore, ETH is likely to generate value from demand such as a consumable and cash flows as a capital asset,” they said.

The venture capitalists also argued that the current DeFi ecosystem on Ethereum has formed a positive feedback loop, with users both bringing the liquidity-based network effect to DeFi and benefiting from a liquid DeFi market.

Lock in effect

“In addition, the composability and interoperability of DeFi protocols have created a lock-in effect for Ethereum, making it difficult for other Layer 1s and sidechains to compete,” they concluded. The authors have also given a very rough estimate when it comes to ETH’s potential valuation: between $3.7 trillion and $4.7 trillion “in the distant future.”

At 16:12 UTC, ETH’s market cap was $247 billion. ETH traded at $2,119 and was up nearly 1% in a day and 6.5% in a week. At the same time, BTC’s market cap was $631 billion. The cryptocurrency traded at $33,661, or 1% higher than a day ago, cutting weekly losses to less than 3%.