Intro

Good morning and Happy Wednesday! 🥳🥳🥳

Part #3: We’re continuing our blockchain and cryptocurrency mini-series. If you are a newcomer: welcome! And… be sure to read the previous two posts (here and here).

Tech Snippets

🕴 Korean cyber pirates: North Korea is the only country in the world whose government is well known for engaging in criminal hacking for monetary gain. Korean hackers have amassed billions of dollars through schemes such as ATM heists and cryptocurrency thefts. Deep Dive here →

🔬 DNA robots: To continue our mini-series on robot trends, here are some more: Scientists believe that tiny DNA-based robots and nanodevices will one day deliver medicine into our bodies, detect deadly pathogens, and aid in the development of small electronics. Researchers took a big step towards the future by launching a new tool that designs complex DNA robots and nanodevices that can perform multiple tasks. Deep Dive here →

👾 Family office gone crazy: The Nintendo founder’s family office went berserk. Their new website is everything you’d expect from such a well-known game developer. Make sure the sounds are turned on when you check it out here →

Micro Knowledge

5 Cryptocurrency Trends for 2021

Source: giphy.com

As the pandemic accelerated the digital transformation, the past year has been nothing short of a blessing in disguise for the blockchain market. Here are the top five trends to watch out for in the coming year.

#1 Institutionalization of the crypto world: One of the major breakthroughs in the crypto world has been the adoption of cryptocurrencies by large financial institutions. Both PayPal and its subsidiary Venmo have made crypto transactions available on their platforms. Square, Tesla and MicroStrategy somehow stunned the industry by investing vast chunks of their cash in bitcoin. With industrial behemoths in charge, the stage is set for other players to claim a piece of the crypto pie in 2021.

#2 DeFi (Decentralized Finance) will continue to grow: Compared to last year, the total value locked (TVL) in DeFi has increased exponentially from $8B to nearly $40B. With more investors getting involved and an increasing market for DeFi tokens, leading crypto exchanges have increased their support for DeFi.

#3 Tokenization of everything: Billions of dollars have been transferred to the blockchain in the form of coins. Pax tokenized gold possession, and that was just the beginning.

2020 saw the birth of new protocols that allow the tokenization of real assets. The absence of intermediaries means greater cost performance, and recent trading patterns have the potential to increase asset liquidity like never before.

#4 Central Bank Digital Currencies (CBDCs): The Central Bank Group is already weighing the benefits and drawbacks of CBDCs. Countries such as China are ahead of the curve, launching digital currency pilot trials. The ECB is also preparing for the Digital Euro project, which is set to launch in mid-2021.

#5 Tax Regulation: Although crypto taxes are not yet universal, they are beginning to appear as governments see potential and rising revenue tax income. The implementation of mandatory user authentication, monitoring of purchases, and regulations on digital assets demonstrates the evolving trend.

Companies, including Blockpit and CryptoTax, are now providing tax software for cryptocurrencies and digital assets. As a result, the world is expected to see the first bitcoin tax avoidance litigation in 2021.