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February 10, 2021
Comments Off on Tesla bought $1.5 billion worth of Bitcoins; Tesla will accept BTC payouts
Bitcoin is making history. Where bitcoin was circling $40K unable to break the barriers. Tesla came in as a savior launching it to the moon after the company released its annual report. Tesla announced that it had invested close to $ 1.5 billion in bitcoin.
The Californian car manufacturer revealed its new strategy to the SEC on Monday. The company’s investments in other reserves & digital currencies are growing exponentially. In addition, you can 
soon use Bitcoin for paying them. This made Tesla the first big player to accept bitcoins as payment. Tesla in its end quarter results said that it had around $19 Billion in cash reserves.
soon use Bitcoin for paying them. This made Tesla the first big player to accept bitcoins as payment. Tesla in its end quarter results said that it had around $19 Billion in cash reserves.How did the Market react to this?
Bitcoin has already surged by five times since October from below $ 10K to almost $40K in 2021. The currency appreciated 50% in 2021 alone creating milestones and many ATHs. But, after tesla’s announcement on Monday, the bitcoin market went bonkers. The news came in as an upsurge pushing BTC above its ATH once again. The price of bitcoin increased by as much as 15% on Monday alone. BTC reached $ 44,500 by Monday night from a mere $38,000 in the morning creating havoc in the community.
Why did Tesla Invest in Bitcoin?
Bitcoin is the talk of the town for the last 5 months creating a feat of its own. The majority of investors that invest in BTC, do so because it’s limited and very secure. It is also volatile and not many people use it for making payments. People generally buy bitcoins as a store of value just like they buy gold.
Many companies like Square & MicroStrategy have already invested in Bitcoin. Mainly due to its rapid growth and global outrage.
Tesla’s investment can be banked primarily on two reasons:
- The first reason was to create an alternate cash reserve in the form of digital assets. As Tesla announced to hold and acquire more digital currencies like BTC.
- Also, they wanted to accept payments via Bitcoin. So, they bought a certain amount of BTC to create a friendly ecosystem for buyers.
Was this Elon Musk’s Plan all-along?
Tesla’s executive chief Elon Musk has a name for being “the man with a golden hand.” Musk’s Twitter with 46 
Million followers can skyrocket any exchangeable commodity in minutes. In the most recent incident, he cheered for Dogecoin which is a token that begun as a joke digitally. Soon, its price soared more than 5 times its value before the tweet. After this Tesla made the announcement. People are speculating Elon’s past actions, as a part of his strategy to generate more attention.
Million followers can skyrocket any exchangeable commodity in minutes. In the most recent incident, he cheered for Dogecoin which is a token that begun as a joke digitally. Soon, its price soared more than 5 times its value before the tweet. After this Tesla made the announcement. People are speculating Elon’s past actions, as a part of his strategy to generate more attention.In December, he tweeted whether bitcoin was capable of completing large transactions. In January he even changed his Twitter bio and added #bitcoin to it. He even stated that bitcoin will become a more acceptable last week. Saying that BTC is on the verge of acceptance by investors.
February 9, 2021
Comments Off on FBI Warned FG & CBN before the Nigerian Crypto Ban
Recently, Nigeria escalated to becoming the world’s second-highest crypto transactor. It was raking cryptos around $ 200 Million or more in a week. This instigated CBN and other regulatory authorities to look into the matter. But, with no proper evidence, CBN had to force a total shutdown. After this CBN prohibited all financial institutes from allowing payments to crypto operators.
FBI’s role
In recent research, multiple facts have escalated amidst the countrywide ban. In addition, major banks like Apex stopped all their payment facilities to crypto exchanges. However, people thought 
this was a temporary regulatory measure to prevent ransom donations.
this was a temporary regulatory measure to prevent ransom donations. An investigation by THISDAY revealed that the ‘FBI’ tipped the federal authorities. Above all, the FBI warned the Nigerian regulators about these ransom transactions. As millions of dollars were coming into Nigeria by fraudsters using cryptocurrencies. Also, they said that the money was illegally acquired from western countries like the USA. The money racked contained relief funds for COVID-19. In addition, this fund was to lower the impact of lockdown on businesses and the citizens of those countries.
Who were the conspirers?
There are no valid proofs that can identify the persons responsible for this. However, THISDAY revealed that the FBI has discovered the group behind this activity. They are Nigerians who are also known as “yahoo boys.” These goons raked around $300 Million into Nigeria by using cryptocurrency every week. FBI indicates that they took charge of large sums of money. Above all, the money was for stimulus to citizens affected by the pandemic.
Why is the money un-traceable?
Cryptocurrencies are not controlled by the government. A person can use it to buy and sell goods as per their face value. It uses a strongly cryptographed online ledger for making secure transactions. This is the reason why CBN has failed to locate the true conspirers. Because these transactions are very hard to trace.
To avoid federal charges this group sent cryptos to Nigeria every week. These were worth millions. Due to its un-traceable nature both the authorities of Nigeria and the US are unable to locate that money.
Was a Ban the Only option?
The Nigerian economy was already on its knees due to the global pandemic. And CBN was aware that these 
funds could destabilize the Nigerian economy. Due to which they had to use force to control this outbreak. After the ban CBN faced severe criticism for making harsh and unfavorable decisions. Many backlashes kept coming from the Nigerian crypto community and its old leaders.
funds could destabilize the Nigerian economy. Due to which they had to use force to control this outbreak. After the ban CBN faced severe criticism for making harsh and unfavorable decisions. Many backlashes kept coming from the Nigerian crypto community and its old leaders. Former VC Atiku Abubakar released a statement opposing CBN’s decision. He said, there are more severe problems like unemployment that need more attention. He stated that Nigeria should consider opening-up its economy and creating more jobs. Nigeria has already seen many economic losses, he added.
Accordingly, he stated that this is not the right time to impose such strict policies. As other regulations can create better outcomes without affecting Nigeria’s capital inflow. He even advised Apex bank to rethink their choices. Thereby, opposing CBN’s decision to close the country’s economy.
February 8, 2021
Comments Off on Central Bank of Nigeria Prohibits Payments to Crypto accounts
Recently, the Central Bank of Nigeria (CBN) published an open letter. It was in support of the one released in 2017. This letter obligates financial institutes to terminate accounts consisting of 
crypto-related transactions. Otherwise, CBN threatens to impose severe regulatory sanctions on them. The director of banking supervision Bello Hassan signed and certified the letter. As a result, the regulation created a ruckus in the Nigerian crypto market.
Is it related to the 2017 Bill?
On Jan 12, 2017, CBN released an identical letter to create similar prohibitions. To stop local financial institutes from making payments or dealing in crypto transactions. It states that any cryptocurrency including BTC is not a legal tender of this country.
The letter released on 5th February serves as a reminder to the financial institutes. Therefore, they no longer allow such transactions. On the contrary, in September Nigeria’s SEC had something else to say. It stated that they are going to regulate crypto transactions. Also, make it easier to understand. SEC said this measure will protect investors and make transactions more transparent.
Official Reason
CBN is yet to publish any official reason for such an abrupt decision in the biggest crypto hub of Africa. But, a strict regulatory decision like this cannot pass due to one reason. This step is a result of multiple complications. Some of the possible causes for this can be:
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A decline in Inflow:
The direct remittance into Nigeria decreased from $2 Billion to $50 Million in 2020. There are speculations that a drastic decline of more than 95% cannot be a fluke. It is due to the increase in crypto transactions. Experts speculate that CBN is using this to Nigerians using crypto-based remittance channels.
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Due to EndSARS Protests:
In October, a major protest broke out in Nigeria. Amidst, opposing police brutality by the Special Anti-robbery Squad (SARS). These protests were not favored by the government. So, CBN blocked any local payment 
gateways from accepting donations for the protests. After this, the protesting organizers started asking for anonymous donations via bitcoins. CBN came across this after few days which was in some way a breach of its decision. So, this incident can also be a reason for prohibiting crypto transactions.
How are people reacting to the ban?
- Most of the major banking institutes have begun to comply with CBN’s directive. They are actively working to prohibit crypto-related transactions.
- This news led to a panic in the crypto space of Nigeria. It was a nightmare for new crypto investors. But, most of the trades occurring in the Nigerian market are p2p (Peer-to-peer). The decentralization factor ensured that most traders are not affected, said the chief officer of a Defi platform.
- The letter surfaced on the internet in few hours. After this many crypto users from Nigeria started tweeting #wewantourcryptoback. This tag was re-tweeted more than 25000 times.
In an interesting interview of a Blockchain engineer. He said CBN’s aim is not to ban cryptocurrencies. Instead, its end goal is to make Niara more adoptable. This is possible when financial institutes regulate crypto transactions. Furthermore, dis-allow users from dealing in crypto directly on exchanges like Binance.
February 6, 2021
Comments Off on Understanding technical and fundamental analysis
Many types of analysis are presently available now for doing good research. Basically, it has two major categories. One is fundamental analysis and another is technical analysis. Both involve different technology and analysis process. However, both got used for predicting the future of crypto markets. So, it is essential to understand the basics of both types of analysis.
Fundamental Analysis Concepts
While doing the research, through fundamental analysis, one considers multiple factors. This analysis gives the intrinsic or inherent properties of the specific crypto. In this analysis, one tries to 
find the impact on the share’s integral value. One has to do thorough research to understand the factor that affects the price of the crypto. This gives the analyst an idea about the Competency of the correctness of the crypto’s price. It considers the macro and microeconomic factors that have an influence on the cryptos. One uses the qualitative as well as quantitative metrics for this type of research.
Different metrics used for Fundamental Analysis
Some of the qualitative metrics include:
- Competency of the management
- The intangible assets the company has
- Company’s working strategy
- Global acceptance of the business
- The industry’s customer base
- The competitive edge the company has
Some of the quantitative metrics include:
- The company’s annual revenue
- The total profit of the company
- Tangible assets of the company
- The accounting ratios of the company
What we know after fundamental analysis
Using this analysis, the analyst predicts if the price of the security as compared to the market. He will be able to know if the crypto’s price is more or less as compared to the market. A higher value is an indication that the estimated value is more than the actual and vice-versa. After this analysis, traders decide to buy or sell their shares. If it is undervalued crypto, traders prefer to buy that crypto and vice-versa.
Technical Analysis
The major difference here is the consideration of the past history of the crypto. The analyst considers the crypto’s 
historical data to predict the future price. So, this analysis includes the past prices, the company’s returns, and the volume of trade. The price prediction is based on the crypto’s historical movement. So, it is basically the trend of the movement of the crypto’s price.
What we know after technical analysis
In this analysis, the analysts refer to the range of price of the cryptos. This helps in generating a profitable trade. This helps them to understand whether to buy or sell the cryptos. If crypto is moving towards the lower range, the trader will buy the cryptos of that company. The reason is once the price hits the bottom of the range, it will move upwards. The exact opposite will happen when the price is moving upwards. So, the traders sell their cryptos to gain profit.
Conclusion
Both analyses are for determining the future price of the cryptos. The technical analysis is for short term trading mostly. The fundamental analysis is for long term trading predominately.