The Core Warning:
Edwards suggests that if Bitcoin does not develop quantum resistance by 2028, its price could plummet below $50,000 due to a crisis of confidence.

The Nature of the Threat:
Advanced quantum computers could, in theory, break the encryption securing user wallets. This would expose private keys, making funds and data vulnerable.

The Timeline:
While often seen as a distant future problem, Edwards predicts the risk window could accelerate, making 2028 a critical horizon for the entire industry.

The message is clear: proactive adaptation is no longer optional — it's essential for Bitcoin's long-term survival and valuation.

What is a market bubble?

A market bubble is a situation in the market when the price of an asset significantly exceeds its real value, which sooner or later leads to its sharp fall.

Economic bubbles do not appear suddenly. They can take months or years to form, and they can cover any area of the economy, from real estate to stocks.

Although some experts consider economic bubbles to be a myth, most economists do not share this view and identify a number of reasons for their occurrence:

• Unreasonable investor behavior and desire for quick profits.

• Low-interest loans that encourage borrowing and increase purchasing power.

• The instinct for group behavior when one thinks the majority can't be wrong, and furthermore, if they are well-known investors and financial institutions.

Interestingly, it is difficult to predict an economic bubble. It usually becomes apparent at the final stage, when the price of an asset declines sharply.

Some investors and experts believe that the entire digital asset market is a bubble. For example, in April 2023, famous investor Warren Buffett said that Bitcoin is “a gambling cryptocurrency, and it has no intrinsic value”.

It should be noted that the fears of some experts are not groundless. In the history of cryptocurrencies, there have been cases when market bubbles did occur.

For example, in late 2017, the value of Bitcoin rose sharply to $15,000 after which it fell to around $3500 in 2018. This collapse pulled all other cryptocurrencies and then the digital asset market fell by almost 80%.

In 2022, a similar situation occurred when the Luna token and the UST stablecoin collapsed and depreciated in a matter of days. However, the market has gradually recovered and most digital asset prices have returned to their previous positions, although there have been other bubbles like the bankruptcy of Celsius Network or the collapse of the FTX exchange.

Nevertheless, the overall trend shows that the crypto market continues to grow. Global capitalization, which at the time of writing stands at around $2.4 trillion, indicates that despite periodic bubbles, the general interest in investing in the cryptocurrency market is growing more and more.

The features of stock and cryptocurrency bubbles have both common and distinctive features.

General Characteristics:

• Speculative in nature: both types of bubbles are caused by speculative behavior by investors in an effort to make a quick buck.

• Investor sentiment: in both the stock and cryptocurrency markets, investor sentiment is amplified by social media and media.

• Irrationality: investors often ignore or underestimate the risks associated with assets.

• Volatility and price correction: high volatility and sharp price correction are characteristic of both types of bubbles.

• Market manipulation: manipulative practices such as Pump and Dump cases accompany both markets.

Differences:

• Materiality: stock bubbles concern physical assets, while cryptocurrency bubbles focus on digital assets.

• Global reach: cryptocurrencies are available to investors everywhere 24/7, unlike stock assets.

• Regulation: the stock market is much more heavily regulated.

• Accessibility: cryptocurrencies provide lower barriers to entry for investors compared to conventional assets.

As more people invest in and use cryptocurrency, companies see it as an opportunity to serve a wider customer base. It's a profitable business strategy, and that's why more and more organizations are investing in digital assets and holding a significant portion of their capital in them.

Here's a list of some of the companies and what they invest in:

• MicroStrategy: investing in Bitcoin.

• Tesla: investing in Bitcoin.

• Coinbase Ventures: the company invests in altcoins such as Aptos (APT), Polygon (MATIC), Celestia (TIA) and many others.

• Block (Square): invests mainly in Bitcoin.

• Pantera Capital: the fund's portfolio includes such crypto projects as Ethereum, Solana, Polygon and others.

Blockchain technology is a revolutionary approach to storing and exchanging information that has the potential to radically change many sectors of the economy. Blockchain is already demonstrating its impact through cryptocurrencies, offering secure and transparent transactions without the need for intermediaries such as banks or brokers.

However, this technology can be used for more than just financial services. For example, in logistics, blockchain can bring transparency to supply chains, allowing consumers to verify the origin of products.

The healthcare sector may also undergo a transformation. Blockchain enables healthcare providers to create secure electronic medical records that ensure the accuracy of information. This facilitates efficient management of patient data and reduces the amount of paper documentation.

Using blockchain in retail has its advantages too, such as the ability to verify the authenticity of goods, which is especially important for jewelry, electronics and pharmaceuticals.

One of the key areas of blockchain development is its increasing use in the corporate sector. Blockchain offers businesses increased security, high transparency of transactions, and protection from cyber threats.

The history of cryptocurrencies has seen periods of financial bubbles. This phenomenon is not unique to cryptocurrencies and is part and parcel of the evolution of any economic sector, especially those that are evolving as rapidly as the digital asset market. However, despite this, cryptocurrency and the blockchain on which it is based have significant potential to benefit society in many areas.

Thus, while cryptocurrency markets may experience periods of volatility, the overall contribution of digital assets remains significant on a global scale.

BitMEX co-founder, Arthur Hayes, argues that bitcoin offers more attractive investment opportunities than gold in light of the current economic climate. He attributes this to the shift from a unipolar to a multipolar world order, which is affecting the financial infrastructure. Bitcoin's decentralized nature increases its value.

At the same time, government actions, such as funding wars and increasing the money supply, devalue traditional currencies, making assets outside the control of governments more attractive.

Arthur Hayes notes that bitcoin, backed by blockchain technology, is becoming a modern alternative to gold as a means of saving. He predicts that in the face of inflation and increasing money supply, bitcoin will be the preferred instrument for preserving value.

The former CEO of payment company PayPal and billionaire Peter Thiel said he doesn't see the massive growth of bitcoin starting anytime soon.

During the Founders Fund program on CNBC Peter Thiel said that he still has some BTC in his wallets, but not as much as he should have. At the same time, Peter Thiel is not sure when a new batch of buyers will come to the market, as now all eyes are on the results of spot bitcoin ETFs. It is quite possible that the rate will rise by some percentage, but it will be a volatile period with large drawdowns and growth.

Peter Thiel invested in bitcoin back in 2014, and recorded a $1.8 billion profit in 2022 before the rate plummeted, but as it turns out, Peter Thiel has become a bit disillusioned with bitcoin, as he initially saw BTC as anarchic, out-of-control money for governments, but people at the FBI say it would be better if criminals used bitcoin instead of $100 bills, so the technology isn't working the way it should.

In the first tweet posted on behalf of Metallica, the attackers announced that the METAL token would improve fan interaction with the music band. Subscribers were told that the developers of the METAL token have partnered with Ticketmaster, so investors can enjoy discounts of up to 25% on concert tickets, as well as participate in an exclusive token giveaway.

The hackers then published another tweet that talked about a partnership with the MoonPay payment service, making it possible for users to buy METAL tokens with credit and debit cards. MoonPay management soon denied the information, saying that they do not support the token:

"If someone is offering you a $METAL token, they are not the master of puppets – they’re the master of scams!"

About 20 minutes after the hacker tweets were published, the market capitalization of the METAL token exceeded $3 million. After reports of the hack surfaced, the token collapsed nearly 100% and the market capitalization dropped below $90,000. Metallica has already restored access to its account and deleted the tweets.

• Cryptocurrency Exchange Traded Funds (ETFs) are exchange traded investment funds that track the prices of cryptocurrency assets. By purchasing ETFs, you can access changes in the value of cryptocurrencies without the need to manage private keys and store digital wallets.

• Grayscale Bitcoin Trust (GBTC) is one of the well-known cryptocurrency ETFs. With GBTC, you get exposure to the price of bitcoin. For example, if you buy GBTC shares and the price of bitcoin doubles, the value of your GBTC shares will also double.

• Bitwise 10 Crypto Index Fund (BITW) is a fund that invests in the 10 largest cryptocurrencies by market capitalization. The fund buys assets from the Bitwise 10 Crypto Index, excluding Bitcoin.

• Osprey Bitcoin Trust (OBTC) is a fund that invests only in bitcoin. OBTC allows investors to access bitcoin without having to buy it themselves.

A lot of companies are involved in cryptocurrencies, and investing in their stocks can be a way to gain indirect access to the cryptocurrency market. For example, Square and Tesla shares have a connection to cryptocurrencies and react to changes in bitcoin prices. But there are also other companies that are linked to cryptocurrency:

• Coinbase Global Inc. (COIN) is a company that develops platforms for buying, selling, and storing cryptocurrencies. COIN also provides services for institutional investors.

• MicroStrategy Incorporated (MSTR) is a company that invests in bitcoin as a reserve asset. MSTR also provides data analytics and business intelligence services.

• Riot Blockchain Inc. (RIOT) is a company that mining bitcoin and other cryptocurrencies. RIOT also invests in other cryptocurrency projects and technologies.

Derivatives are financial instruments whose value depends on the price of another asset, called the underlying asset. Derivatives are used to protect against the risks of changes in the value of the underlying asset, as well as for speculative purposes.

Derivatives, such as futures and options, allow you to speculate on changes in the price of virtual coins. With their help, you can make money on the rise or fall in the price of cryptocurrency without actually owning it. Such contracts are also used to protect against fluctuations in the price of cryptocurrency. Examples of derivatives:

• Bitcoin futures on the CME Group exchange

• Contract for difference (CFD) on eToro platform

Investing in Initial Coin Offerings (ICO) or Security Token Offerings (STO) provides an opportunity to invest in young cryptocurrency projects.

An ICO is a method of attracting investment in a cryptocurrency project where a company issues its own cryptocurrency and sells it to investors. Examples of ICOs: Ethereum, EOS, Tezos.

An example of a successful ICO is Ethereum, which held its ICO in 2014 and raised $18 million. With this funding, the Ethereum team developed a blockchain platform that enables the creation of decentralized applications and smart contracts.

New ICOs can be found on ICO Drops, a service that provides detailed analytics on upcoming and past ICOs.

STO is a method of attracting investment in a cryptocurrency project in which a company issues securities on the blockchain that can be exchanged for shares or a stake in the company. For example, tZERO held its STO in 2018 and raised $134 million. tZERO is a securities trading platform that uses blockchain technology to secure transactions.

By the way, mining can also be indirectly attributed to investing in cryptocurrency without buying it. Of course, this method requires more initial investment, but the potential profit can be greater than buying funds or shares.

Analytical firm Santiment has published new data. According to the report, the supply of some cryptocurrencies to the wallets of major exchanges has decreased. This indicates that users have become less interested in trading and more interested in saving.

Among the cryptocurrencies for which this is observed are Ethereum (ETH), Shiba Inu (SHIB) and Chainlink (LINK). The outflow of ETH from exchange wallets from May 27 to now is 8.6%. For SHIB it is 2.4%, for LINK — 2.9%.

At the same time, the volume of crypto-assets on the balance sheets of long-term holders has grown. This means investors who hold assets for a year or more.

According to IntoTheBlock, over 24 hours the balance on the wallets of long-term ETH holders grew by 1.4%. For LINK the growth amounted to 0.8%, for SHIB — no change. This is a signal of market confidence in the growth prospects of the assets.

Peter Schiff is known for his bearish views on the cryptocurrency market. In his opinion, bitcoin has not long left to be "on top", but this time the investor compared the first cryptocurrency not with gold, but with silver. Peter Schiff noted that since April, the growth of bitcoin rate is 2%, and this is too "pale" compared to the growth of silver by 21%. The expert stated: such a low result of bitcoin is a sign of the imminent death of the cryptocurrency.

Silver now has a market capitalization of $1.83 trillion, which is $500 billion more than bitcoin's market capitalization ($1.31 trillion). This means bitcoin would have to grow 40% to reach $93,000 and catch up with silver.

In the comments, bitcoin supporters objected to Peter Schiff suggesting that he may be selectively using short-term data to support his arguments against bitcoin. Over the year, BTC has grown by almost 60%, while silver has had a more modest performance: since the beginning of the year, the precious metal has grown by 14.46%.

Peter Schiff is concerned that bitcoin is often positioned as the digital equivalent of gold. As the economist explained, with his negative comments, he seeks to correct what he considers a misconception and prevent potential investors from making the serious mistake of investing in bitcoin.

P.S. Peter Schiff predicted the 2008 financial crisis 🤔

Whether cryptocurrency can be called the new gold is debatable. There are some similarities between the two assets, but there are also some key differences.

Similarities

• Both gold and cryptocurrency are scarce assets. There is a limited amount of gold and a limited amount of cryptocurrencies in the world (in the case of bitcoin, there can be a maximum of 21 million coins).

• Both are seen as a defense against inflation. When the value of paper currencies (such as the dollar) declines due to inflation, the value of gold and cryptocurrency increases.

• Both gold and cryptocurrency are decentralized.

Differences

• Gold is a physical asset, while cryptocurrency is a digital asset. Gold can be stored in physical form, whereas cryptocurrency exists only in the form of computer code.

• Gold has a long history of use as a savings vehicle, whereas cryptocurrency is a relatively new asset.

• Cryptocurrency is widely accepted for payment, while gold cannot be used in this way.

Bottom line: gold and cryptocurrencies are both scarce and decentralized assets that can act as a hedge against inflation. However, gold is a tangible, time-tested means of saving, while cryptocurrencies are newer digital assets but can be used for payments.

The value of gold has been relatively stable over the long term. The price of gold has doubled only a few times in the last 100 years. Gold is seen as a hedge against inflation: while traditional currencies have become cheaper, gold has retained its value.

The price of bitcoin has been much more volatile than the price of gold. Bitcoin has risen and fallen sharply several times in the last 11 years.

Note that high returns in the past do not guarantee high returns in the future.

Gold has long been used as a hedge against inflation, so it is considered the best choice for this purpose. Bitcoin has the potential to replace the precious metal, but so far trust in it is not high enough.

Gold is more stable than cryptocurrencies. The price of bitcoin has fluctuated wildly in recent years, making it a risky investment for some people.

Gold is considered a safe asset, while bitcoin is more risky, but has the potential for greater returns. Ultimately your best investment will depend on your circumstances and risk tolerance.

The right choice may be to have a diversified portfolio of different assets: not only gold and bitcoin, but also stocks, CFDs, etc.

A team of experts from three institutions analyzed nearly 36,000 posts on the X network on behalf of 180 of the most popular and influential individuals in the crypto community. The study of posts was limited to a two-year period ending in December 2022 and covered more than 1,600 cryptocurrencies.

Researchers have obtained compelling evidence that influencers advice about investing in cryptocurrency is, on average, unfavorable. This confirms the validity of regulators concerns that social media can mislead retail investors. People who represent a large share of the entire crypto market and for whom financial losses can be particularly devastating financially and socially. The future of cryptocurrency cannot be built on viral tweets, and informed investment in digital assets is a long marathon, not a sprint to the moon.

Researchers state: influential bloggers are interested in public attention and income from integrations with brands, while social platforms earn their share from advertising revenue. At the same time, both sides of the process are interested in making a quick profit and do not aim to disseminate useful advice.

This trend is most pronounced among self-proclaimed crypto experts who have a large number of subscribers in X. These individuals are actively exploiting the public sentiment, creating excitement and making buy recommendations, suggesting the possibility of manipulation and misinformation of unsophisticated investors. One of the most disturbing findings of the study were the findings of significant negative long-term returns on such financial recommendations.

For example, over the long term, the average cumulative returns ten and thirty days after a promotional tweet is -2.24% and -6.53%, respectively. A rough estimate shows: if an individual invests $1,000 in a cryptocurrency asset that is not in the top 100 on the date of the tweet and then holds for thirty days, it will result in a loss of $79 (7.9%; 62.8% annualized).

Thus, it is possible to gain profit only by exiting the position shortly after the tweet is published. However, this strategy may not always be feasible due to insufficient market liquidity and artificial limitations of the cryptocurrency project.

According to the IMF study, there is some correlation between the cryptocurrency market and stocks. And it is growing over time. The correlation has grown especially strong between 2020 and 2021. This study included crypto assets such as BTC and ETH, as well as the S&P 500, Nasdaq, Russell 2000 and MSCI EM1 equity indices. Between January 2017 and December 2019, the volatility correlation between Bitcoin and the S&P 500 was 0.1, and between January 2020 and November 2021, it increased to 0.46. The return correlation also increased from 0.01 to 0.36. Similar changes in correlation were seen between Ethereum and the S&P 500.

Conclusion: there is a certain correlation, although not a direct one.

However, it is worth noting that the correlation between the cryptocurrency market and the stock market is not unambiguous and constant. Some companies that are directly linked to the cryptocurrency market through investments or business processes may have a correlation with stock price movements. This is especially true for publicly traded cryptocurrency companies such as Coinbase, whose shares ($COIN) are traded on the stock markets. However, there is no clear and consistent correlation with the cryptocurrency market for general equity indices.

It is also worth considering that the correlation between cryptocurrencies and stocks is fickle. The fact that the correlation was stronger in previous years does not guarantee that this trend will continue in the future. It is best to analyze the actual data yourself and form your own conclusions.

Cryptocurrencies such as Bitcoin and Ethereum are known for their high volatility. Fluctuations of 3-5% per day are considered the norm here. Less popular cryptocurrencies can fluctuate even more (up to +1000% or -99% in a day). Stocks can also be volatile, but to a lesser extent. If you compare a diversified portfolio of cryptocurrencies and a stock index (like the S&P 500), the cryptocurrencies will be more volatile and the indexes will be more stable.

So, historical data shows that there is no direct correlation between the two markets. There can be large divergences between them. Which means that traders can capitalize on the divergence of the rates. It is possible to convert assets from stocks to cryptocurrencies depending on which market gives a higher return in the moment.

However, there is a problem with asset conversion here. Cryptocurrencies are usually traded on cryptocurrency exchanges, while stocks are traded on special brokerage platforms. If you constantly transfer assets between platforms, you can lose money on commissions.

Following the events of November 2017, when an unknown hacker stole more than $30 million in USDT stablecoins from a Tether Treasury wallet, the issuer of these stablecoins, Tether announced the release of a new version of its Omni Core software client capable of blocking assets and transactions from blacklisted cryptocurrency wallets.

In December 2023, Tether announced an updated blocking policy. From that time until now, the company has been actively blocking USDT holders' access to wallets on the U.S. sanctions watchlist (SDN). Enforcement is monitored by the Office of Foreign Assets Control (OFAC).

Tether said that this strategic decision is consistent with their unwavering commitment to maintain the highest standards of security for their global ecosystem and fosters an expanded close working relationship with global law enforcement and regulators.

According to Dune Analytics, there are now about 1,500 addresses on Tether's blacklist that hold approximately 1.1 billion USDT.

Hash Telegraph's sources believe that blocking USDT by the issuer violates the fundamental principles of decentralization and freedom of cryptocurrencies, effectively being an extrajudicial confiscation of funds. However, this cannot be fought, as Tether has absolute control over both the issuance and circulation of USDT stablecoins. And the authority is enshrined in the user agreement with the owners of cryptoassets.

The Terms of Service state that Tether may, in its sole discretion, seize your property and turn it over to any government, law enforcement or other authority when circumstances warrant.

Tether says these powers are necessary to comply with international anti-money laundering (AML) and counter-terrorist financing (CFT) standards.

It should be noted that the token Ethena (ENA) lost 13.45% over the past 24 hours. As of the evening of May 1, 2024, the ENA cryptocurrency is trading around $0.78, and its capitalization reaches $1.11 billion. Over the past 24 hours, traders made transactions with the token on the spot market for a total of $448 million.

Bitget Token (BGB) and Neo (NEO) rose in value by 2.55% and 1.97%, respectively. All other digital currencies fell in value to varying degrees. The losses of TRON (TRX) were insignificant. This cryptocurrency fell in price by only 0.6%. Also, the prices of such well-known cryptocurrencies as Monero (XMR) and Binance Coin (BNB) fell insignificantly. The digital assets lost only 1.55% and 4.5%, respectively.

However, there were cryptocurrencies that significantly disappointed investors. For example, the rate of the new digital currency Wormhole (W) collapsed by almost 52% over the month. In addition, Aptos (APT), Core (CORE), Conflux (CFX), Jupiter (JUP), Pyth Network (PYTH), Uniswap (UNI), Axelar (AXL), Sui (SUI), THORChain (RUNE), dogwifhat (WIF), and Synthetix (SNX) lost significant value. All of them lost between 40% and 48% of their value 30 days ago.

As for the leading cryptocurrencies, Bitcoin (BTC) is down 17.5% to $57,280 as of this writing. Capitalization is equal to $1.12 trillion, and daily transaction volumes on the spot market are $48.3 billion. Ethereum (ETH), which ranks 2nd in terms of total supply with $356.71 million, has fallen in price by 15.95% during the time period under review. Its price stands at $2920.

Rob Ginsberg highlighted several factors in an interview with CNBC. First, like small-cap stocks, bitcoin is subject to sharp price fluctuations. This is due to its relatively small market and less liquidity compared to the larger assets of the traditional financial market.

At the same time, investing in bitcoin is speculative in nature, as is the case with shares of small capitalization companies. Investors buy bitcoin in the hope of rapid price growth and are guided by short-term goals, rather than making long-term investment decisions based on the fundamental value of the BTC.

Rob Ginsberg added that the price of bitcoin, as well as the prices of small-cap stocks, is highly dependent on the general mood in the market, when positive news can lead to a sharp rise in the price of the asset, and negative news can lead to their fall.

The analyst believes that collectively, these similarities to small-cap stocks could prevent bitcoin from reaching and holding its market value at new all-time highs.

Now the market value of bitcoin fluctuates between $63,300-$64,780. BTC lost about 1% of its initial value over the day.

The proceeds from the sale of the notebook are promised to be used to develop a cryptocurrency wallet in the Lightning network based on the decentralized Urbit platform. The founder of the project is Christian Langalis, the author of the inscription on the notebook.

A leaf from a notebook labeled Buy Bitcoin became a meme after coming into view of television cameras during a speech by Federal Reserve chief Janet Yellen in 2017.

Christian Langalis was then a 22-year-old intern in the Congressional office and took the opportunity to show the inscription from behind an official in the middle of a meeting of the House Financial Services Committee. A short time later, the intern was forcibly removed from the room. And the inscription gained cult status. Christian Langalis was given the Internet nickname Bitcoin Sign Guy.

When you are promised a return of 10-30% per month, you should be wary. Even the most successful investment funds and traders can rarely guarantee such figures. The promise of high and fast returns is a classic sign of a Ponzi scheme.

If the project cannot clearly explain exactly how revenues will be generated, this is a cause for concern. Reliable investments have a clear business model and transparent sources of profit, while fraudsters often use complex or obviously unclear schemes.

If it is necessary to attract new participants to receive the promised income, this is a sure sign of a fraudulent scheme. In such projects, the income of the first investors is formed from the contributions of subsequent investors, which is unstable and doomed to collapse. If the project under the guise of an exchange, be sure to check the availability of this exchange on aggregators such as CoinMarketCap, Coingecko, Cryptorank.

If withdrawing your earnings requires you to make additional payments first, this should be alarming. In legitimate projects, withdrawal is not conditional on making new payments. This technique is used to lure more money out before the scammers disappear.

Be vigilant and always do a thorough analysis before investing in cryptocurrency projects.

A recent survey of participants conducted by Finders has revealed the future price outlook of the Cardano (ADA) cryptocurrency. According to the report, this crypto coin is expected to witness significant growth between $5.37 and $3.15 on average by 2023.

Supporting the potential rise in cryptocurrency prices, Layer One X chief operating officer Matiu Rudolph predicted that the price of ADA coins could rise to $3.50 or higher by 2025 and reach a new all-time high of $10 by 2030.

Matiu Rudolph based his predictions on Cardano's growing ecosystem and strong community of supporters. The loyal community of this cryptocurrency is one of its greatest assets, driving global adoption and increasing the value of coins.

Speaking also about the future price prospects of the Cardano ecosystem, founder of Omnia Markets Inc. Mitesh Shah predicts that the ADA price will rise to $2.75 by 2025. The price could rise to new highs.

Nick Ranga, who is Senior Cryptocurrency and Forex Analyst at Forex Traders, believes that the halving of bitcoin will lead to a bullish cryptocurrency market next year. That's when Cardano (ADA) will skyrocket in value.

Seasonal Tokens creator Ruadhan O is actively investing in the Cardano ecosystem, is optimistic and expects the cryptocurrency to grow to $2 by 2030. Ruadhan O also said that Cardano is likely to witness a significant increase in Ethereum's market share during the next bull run.

Despite the optimistic outlook of a significant number of survey participants regarding the price of the ADA cryptocurrency, others expressed contrary opinions, emphasizing the inefficiency of the Cardano ecosystem and its inability to keep up with market expectations.

Origin Protocol co-founder Josh Fraser predicts Cardano's price could fall to zero by 2030. Futurist Joseph Raczynski thinks Cardano's price will drop by 2025.

Many analysts agree that the price of the Cardano (ADA) cryptocurrency will go down because the Cardano ecosystem lacks decentralized applications and ADA coins are not globally deployed anywhere.

Main risks in the cryptocurrency market

Investing in digital currency attracts high returns. Therefore, there are many dangers in the cryptocurrency market. Analysts combine the risks into several groups:

• Vulnerabilities in cryptocurrency wallet security systems. Private keys, which are 256-bit code, securely guard access to vaults. It would take attackers millions of years to crack them. Wallets become vulnerable due to bugs in the program and user errors.

• Phishing attacks. Attackers often use fake emails on behalf of companies to coerce users into providing sensitive data. For example, in 2023, hackers sent fake hacking notifications to Trezor customers and asked them to provide a mnemonic phrase for verification purposes.

• Exchange Risks. Most users buy and sell cryptocurrencies on the CEX. However, exchanges can be subject to hacker attacks. Most often, attackers withdraw money from users' wallets.

Compare the main cryptocurrency wallet vulnerabilities that are often exploited by attackers, as well as ways to protect yourself:

[Vulnerability]: Bug in the random number generator when creating a wallet.
[Note]: A random number generator generates a private key with repeating characters (e.g., a key with many zeros) instead of a random number.
[Protection method]: It is necessary to check the code string for the presence of identical characters. You can use special open source tools (e.g. Swippcore) to convert a short key to a long key.

[Vulnerability]: Generating keys from non-random data (Weak Brainwallet).
[Note]: Brainwallet technology allows you to create a secret code from phrases or individual words specified by the user. Often users generate keys from simple words, numbers like 12341234, phone numbers, and so on. Hackers are left to find the right combination, taking into account human predictability.
[Protection method]: It is safer to generate a Private Key in the wallet or set a complex combination of numbers and letters of different case, special characters.

[Vulnerability]: Creating compromised keys on scam sites.
[Note]: Online address generators for paper wallets may issue the same keys to different users or contain vulnerabilities to intercept them.
[Protection method]: It is recommended to create keys only in hardware devices or cryptocurrency applications.

New trends in cryptocurrency security

The decentralized nature of digital currency opens up many opportunities for investors and users. Risks in the crypto market are also high, but developers are constantly improving protection systems in networks and individual projects. Exchanges and cryptocurrency wallets are usually the first to test new security technologies.

Biometric authentication for cryptocurrency wallets

This technology uses a person's unique biological traits for identification. Biometrics is already being integrated into the interface of cryptocurrency wallets, providing an additional level of security. To gain access to coins, you need to verify your identity through certain mechanisms. Among them:

• Fingerprint scanning. This is one of the most common types of biometrics. In 2024, imToken, Trust and other mobile wallets use scanning.

• Facial Recognition. The popularity of the technique is due to its simplicity and passive identity verification process. The user is only required to look at the camera. The scanner evaluates facial features, checking the obtained data against the original data. In 2024, wallets (e.g., ZenGo), exchanges (e.g., Binance) and other cryptocurrency platforms are using such biometrics.

• Iris and retina scanning. This technique is characterized by high identification accuracy, but is still being tested for cryptocurrency applications. The program reads a unique pattern in the iris or blood vessels of the fiber of the eye.

• Voice Recognition. While easy to use, the technology does not provide complete security. In 2024, fraudsters have learned how to use AI to reproduce a person's voice.

According to analysts, the integration of biometric authentication mechanisms into cryptocurrency projects will intensify as the industry grows. In combination with artificial intelligence and machine learning, this technology can become the basis for creating more accurate and flexible methods of identification.

In the future, technology will learn to recognize gait, heart rate. Biometric systems will adapt to age-related changes in users. Exchanges and cryptocurrency wallets will actively implement these mechanisms to enhance security and increase customer confidence.

Decentralized methods for identification

Web3 gives users the exclusive right to manage personal data themselves without the involvement of a third party. This is possible through the introduction of Decentralized Identity (DID) - digital identity cards that store information on the blockchain.

The blockchain acts as a publicly available verifier and repository of information. If someone needs the validity of a DID, they can find the corresponding public key in the blockchain.

In 2024, the technology is used in decentralized KYC (DOCK) systems. But the potential of DID is much broader. Identifiers can be used for quick access to cryptocurrency platforms and honest online voting. The types of DIDs available in 2024 are:

• Off-chain attestations. Digital certificates that are stored off-chain (in wallets) and signed with a DID. The DID can be used to verify the validity of the data.

• On-chain certificates. Stored in network smart contracts. The algorithm compares the information with the provided public key (DID).

• Soulbound Tokens (SBT). Digital assets that contain the user's personal data and information about the organization. Usually issued by exchanges (e.g., Binance) or wallets.

Privacy of cryptocurrency transactions

The idea of decentralized identity is based on the principle of anonymity of personal information. This is crucial for cryptocurrency users in an increasingly regulated environment.

This will allow transaction details to be hidden from outsiders. In 2024, cryptocurrency companies are already testing homomorphic encryption and zero-knowledge proof techniques for identification without disclosing biometric data.

Implementing security features in hardware wallets

The concept of autonomous storage of private keys implies the creation of its own security system. In 2024, the trend to use secure chips in hardware wallets is gaining momentum.

In 2024, Ledger, Keystone, ColdCard crypto wallets are using secure chips. For example, the Ledger Nano X utilizes a dual-chip architecture with a universal MCU and a single Secure Element SE (Secure Element ST33J2M0). Secure Element contains sensitive account information and allows you to run isolated applications in a secure environment.

It is theoretically possible to hack hardware wallets with Secure Element technology, but it would require significant resources.

Conclusion

To cope with potential challenges in the growing digital space, it is important to keep an eye on new investment protection technologies.

Despite being a highly risky and speculative instrument, bitcoin's value and ability to generate profits is astounding. In the last six months, the value of the coin has grown from $27,000 to $73,000. And there are several reasons for this. The first and most important one is the SEC's approval of applications for tradable funds on BTC and ETH. In fact, this event marked the beginning of mass adoption of cryptocurrencies among corporate and institutional investors. ETFs opened access to cryptocurrencies for those who for a long time could not officially invest in these assets due to the lack of relevant legislation. After applications from 16 major companies and funds were approved, millions of investor dollars flooded into the cryptocurrency market, leading to an unprecedented rise in the price of bitcoin. Only the bitcoin ETF from the BlackRock investment fund raised $10 billion in investments.

Such a rapid rise in the price of the asset also affected other market players. For example, miners stopped selling bitcoin in anticipation of an even greater price increase ahead of and immediately after the next bitcoin halving, while traders, on the contrary, increased trading volumes. According to the latest published statistics from Collin Wu, cryptocurrency exchanges have significantly increased trading volume, with Bitget increasing its spot trading volume by 18%, Bybit by 8%, and Binance by 7%. It is safe to say that this is not just a cryptocurrency thaw, but the market has entered a real bullish trend.

When bitcoin will rise to a price of $100,000

In order for bitcoin and the crypto market as a whole to continue its active growth, a few basic conditions are necessary:

• Mass adoption of cryptocurrencies at the level of institutional investors. For example, the launch of new tradable funds on bitcoin and ETH. By the way, the recent fund approval on Ethereum has already led to an increase in the price of ETH token to $4000, which gave an impetus to the growth of bitcoin price and a number of assets such as SOL, TON and others. If this trend continues for the rest of the year, it is likely that we will see bitcoin at $100,000 as early as November or December.

• Halving as an event. Many retail and institutional investors have been buying up bitcoin en masse in anticipation of its halving, expecting an even bigger rise in price. There are currently 50 million bitcoin holders worldwide and the majority is concentrated in the hands of institutional investors. It is quite expected that they will continue to buy up the coins ahead of the halving, pushing the price of the asset upwards.

• General economic situation. Despite the fact that bitcoin is the only truly decentralized cryptocurrency, the impact of the economic situation on its price remains significant. After inflation in America and the EU began to decline, asset values began to rise. This is largely due to the improved financial situation of residents of the US, Europe and Latin American countries, which are the main consumers and holders of cryptoassets.

• Political situation. The governments of the United States and the European Union have long tried to ban the circulation of cryptocurrencies in these regions, but all efforts have proved fruitless. Cryptocurrency is firmly embedded in the lives of modern people and banning the use of digital assets is like fighting windmills. Therefore, today we see a change of policy course from prohibiting to regulating. Lawmakers are trying to regulate and control the circulation of digital assets, which may give a certain impetus to the use of cryptocurrency in business.

And if the Black Swan arrives

The emergence of unforeseen situations is also possible. Among the negative factors affecting the crypto market are the upcoming trial of CZ, as well as the still unclear outcome of the US presidential election.

If after the change of leadership in the U.S. the policy is reversed, it is possible that ETFs will be closed and funds will flow out of the market, which will eventually lead to a 30-40% drop in bitcoin price.

Also, we should not rule out a massive sell-off of bitcoin immediately after the halving, which can be provoked by miners and large investors. In this case, the price of the coin may fall to $55,000 - $60,000 or even lower. In any case, you should constantly monitor the market situation and adjust your trading and investment strategies to the conditions in the financial sector and in the world as a whole.

While analysts are predicting a promising price movement, traders are looking for alternatives from which they can capitalize during the current bull rally. Experts suggest that the next 4 meme coins are worth keeping an eye on, as their popularity is skyrocketing.

SMOG

While BONK is an enviable crypto asset, there is another contender that is competing for traders' attention. This is the Smog token (SMOG), which caused a big stir in the market immediately after its listing.

This cryptocurrency has gained investor support thanks to a 490 million coin giveaway, which could well be called the largest airdrop on the Solana network. Thus, investors need to purchase and store SMOG to earn points and qualify for the giveaway.

Smog airdrop is being conducted through the Zealy app, which allows market participants to complete daily missions and accumulate points. According to the team, 700,000 missions have already been completed as investors rush to get their share of the upcoming token draw.

SMOG coin features that can stimulate growth:

• Support for two blockchain, Ethereum and Solana, which opens up the asset to more Web3 users.

• SMOG coin holders can move their tokens into the ETH liquidity pool to earn an APY of 42%.

SPONGE V2

Sponge V2 (SPONGEV2) is an ERC-20 token that will replace Sponge V1 in the cryptocurrency market. The original coin reached a market capitalization of $100 million at the peak of its popularity, which brought investors a 100x return. According to analysts, the new asset has the same potential for a quick takeoff.

The Play-to-Earn racing game may help the token grow in value. The game is scheduled to be released at the third stage of the roadmap, right after the coin is listed on exchanges.

Those who already have Sponge V1 tokens can send them to Stacking to earn Sponge V2. Others can purchase them on the project's website. All that is needed is to connect a cryptocurrency wallet and use ETH, MATIC or USDT to complete the purchase.

SPONGEV2 coin features that can stimulate growth:

• Opportunity to earn passive income in Ethereum (185 %) and in Polygon (749 %).

• A planned listing on major exchanges could lead to a sharp rise in the asset.

SCOTTY

Scotty the AI (SCOTTY) cryptocurrency aims to protect the Web3 space with artificial intelligence. This project offers advanced AI-based solutions for fraud detection.

All the actions of Scotty the AI are aimed at reducing risks for investors and increasing security in the blockchain. The platform also monitors transactions, detecting fraud and irregularities in the network.

SCOTTY is the project's own token, which is realized during the pre-sale. Out of a total of 1,734,567,890 coins, 40 % have been allocated to the pre-sale, which has already attracted more than $2.2 million in investments.

What's more, SCOTTY can be sent to steaking for an APY of 120 %. During the current pre-sale round, the coin is priced at $0.00705, but it will rise to $0.01 by the end.

Growth prospects:

• The supply of SCOTTY will be fixed, which could create a shortage, and the value of the token could rise as demand increases.

• Staking will incentivize long-term ownership of the asset.

Meme Kombat

While meme coins are not typically associated with high utility, the new Meme Kombat (MK) token offers numerous revenue opportunities. The team is using artificial intelligence and blockchain to create a battle arena with Play-to-Earn mechanics.

Players need to send MK coins to steaking to engage in virtual battles. There are different modes, and merchants are rewarded with in-game prizes and additional MK coins.

Of the maximum offer of 120 million tokens, 60 million were allocated for the pre-sale, which has almost ended. While waiting for listing on exchanges, investors still have some time to buy the coin at a discount - for $0.279. As history shows, meme coins often rise in price in the first few days of trading.

Future growth is possible due to the following factors:

• MK is needed to participate in the game, so the growing interest in battles may trigger an increase in value.

• Traders can earn high passive income (93 %) and free tokens through the Meme Kombat ecosystem.

• As the number of investments in the cryptosphere increases, the amount of money flowing into MK is likely to increase and the value of the token will rise.

Conclusion

Analysts predict: a bull market for cryptocurrencies will occur in 2024, which is good news for altcoins and meme coins such as SPONGE, SMOG and MK.

Investing in new projects represents a potential opportunity to generate substantial returns. First, investing early allows traders to access tokens at a lower cost compared to their potential. Second, innovations in the industry often attract significant attention from the crypto community, as was the case with SMOG, leading to rapid growth after listing. Finally, successful projects can introduce innovative technologies or solutions to existing problems, as the SCOTTY coin does.

If the new tokens become widespread, their value could increase dramatically, generating substantial returns for early investors.

Are the above coins worth investing in? What do you think?