Taproot Lock-in Achieved — Bitcoin Network Set to Activate Biggest Upgrade in Four Years

Taproot Lock-in Achieved — Bitcoin Network Set to Activate Biggest Upgrade in Four Years

The ‘Speedy Trial’ lock-in period for the Bitcoin network upgrade Taproot is now complete. Data from taproot.watch details the lock-in has been achieved and it was locked in at block height 687,285 and mined by the mining pool Slushpool.

Bitcoin Taproot Lock-in Complete at Block Height 687,285

  • Taproot is coming this November as the web portal taproot.watch indicates that the lock-in period of signaling has finished. “This period has reached 1815 Taproot signaling blocks, which is required for lock-in.”
  • The Taproot upgrade is considered one of the largest upgrades in four years since the activation of Segregated Witness (Segwit) back in 2017.
  • Poolin executive Alejandro De La Torre tweeted about the milestone after the signaling finished. “Taproot has locked-in,” De La Torre said. “Excellent work miners. Congratulations bitcoiners. Bitcoin protocol upgrade now set to activate in November.

Taproot Lock-in Achieved — Bitcoin Network Set to Activate Biggest Upgrade in Four Years

  • When activated in November, Taproot addresses will be able to leverage Schnorr signatures in contrast to Bitcoin’s current elliptic curve digital signature algorithm (ECDSA). Because Schnorr signatures are more compact than ECDSA it could improve scaling.
  • Other features besides the bump in scaling expected from Taproot activation include more complex BTC smart contracts and decision-based transactions. Alongside this, it’s been said that Taproot and Schnorr signatures will also allow for more privacy when transacting.
  • Taproot enhancements also include the ability for BTC participants to utilize Merkle trees.
  • Bitcoin Core versions 0.21.1 and versions above this release will be able to upgrade to Taproot in November. There will be roughly five months for miners and other node operators who want to transition to Taproot.
  • Taproot, however, is a soft fork which means similar to Segwit, network participants do not necessarily have to upgrade to the new ruleset.
  • The founder of the 13exchange, Nikita Vassev, was pleased with the lock-in completion and tweeted about the landmark occasion on Twitter. “There was a tremendous amount of work done on activation,” Vassev wrote on Friday. “I was impressed with how the pools joined in, and it is our common achievement.”

What do you think about the Bitcoin protocol upgrading to Taproot this November? Let us know what you think about this subject in the comments section below.

Original Article

Stock-to-Flow Creator Says ‘$288K Still in Play,’ Mike McGlone Sees an ‘Ace up Bitcoin’s Sleeve’

The popular Twitter account and creator of the bitcoin stock-to-flow (S2F) price model explained that “$288K [is] still in play.” Meanwhile, data from the exchange Deribit shows there’s 425 bitcoin call options with a strike price of $200K set for December 31, 2021.

Plan B Says: ‘$288K Still in Play’

On June 12, 2021, while bitcoin (BTC) prices have been hovering just above the $35K zone, the popular Twitter account Plan B (@100trillionusd) told his 553,000 followers that six-figure bitcoin prices are still intact. Plan B is a pseudonym and he published the stock-to-flow (S2F) price model in March 2019. He also updated the S2F model to another version called the stock-to-flow cross-asset (S2FX) model.

Twelve days ago, Bitcoin.com News reported on how Plan B said his S2FX model was “intact.” Plan B has always shown confidence in his model but when he last tweeted about the S2FX being intact, he invoked a poll on Twitter. The pseudonym asked his followers if they thought the S2F model would break or will it turn out to be an excellent buy signal. When the poll completed more than 53% of the 31,824 votes said it was a “buy signal.”

Plan B’s statements on Saturday still show confidence in the model and even six-figure price targets. “$288K still in play,” Plan B said on Twitter. “It would really surprise me if bitcoin would not touch the black S2FX model line this phase. Regardless of current volatility, yellow green and blue dots will be (much) higher than red orange dots,” the analyst added.

Chart shared on Saturday, June 12, 2021, by stock-to-flow (S2F) creator Plan B on Twitter.

A Twitter account responded to Plan B’s tweet on Saturday and asked: “What gives this confidence given the large downwards deviation from the model at the moment? Is it onchain analytics?”

Plan B responded and noted that things look awfully similar to 2013 and 2017. Plan B noted:

Deviation is not much different from 2013 (S2F ~10) or 2017 (S2F ~25), just the usual inertia after a halving.

Deribit Call Options With a Strike Price of $200K for December 31, Bloomberg Strategist McGlone Sees an Ace up Bitcoin’s Sleeve

Plan B is not the only person expecting six-figure prices as data from Deribit’s call options records show more than 400 contracts with an expiry set for the last day of 2021 for a price above $200K per BTC.

Chart shared on Saturday, June 12, 2021, by Senior commodity strategist at Bloomberg Intelligence Mike McGlone on Twitter.

Senior commodity strategist at Bloomberg Intelligence, Mike McGlone, also spoke about bitcoin’s scarcity and touched upon the next halving on Saturday.

“Bitcoin $100,000 Has Bullish Ace Up Its Sleeve: Declining Supply — This year follows a cut in Bitcoin supply, making the price more likely to appreciate if past patterns hold,” McGlone tweeted, while also sharing a chart of the diminishing BTC supply. The diminishing bitcoin supply is a stark contrast to the $8 trillion recorded on the Federal Reserve’s balance sheet for the first time in history on June 10, 2021.

Meanwhile, some skeptics as usual disagree with people like Plan B or Mike McGlone as one person responded to McGlone’s optimistic outlook. “Don’t marry the trade, it’s in a bear market,” the individual replied to McGlone on Twitter.

What do you think about the six-figure prices “still in play” for bitcoin according to Plan B or the 400+ contracts betting the price will be $200K by the year’s end? Let us know what you think about this subject in the comments section below.

Original Article

Basel Committee Proposes Differentiating Regulation of Crypto Assets Based on Risks to Banks

Basel Committee Proposes Differentiating Regulation of Crypto Assets Based on Risks to Banks

The Basel Committee on Banking Supervision has proposed dividing crypto assets into two groups and regulating them based on their market, liquidity, credit, and operational risks to banks. Cryptocurrencies, such as bitcoin, will be subject to “a new conservative prudential treatment.”

Crypto Regulation Proposed by Basel Committee on Banking Supervision

The Basel Committee has proposed regulating crypto assets based on their risks to banks. The Bank of International Settlement (BIS) published the committee’s public consultation on “preliminary proposals for the prudential treatment of banks’ cryptoasset exposures” Thursday.

The BIS explained that banks’ exposures to cryptocurrencies are currently limited. However, it added:

Continued growth and innovation in crypto assets and related services, coupled with the heightened interest of some banks, could increase global financial stability concerns and risks to the banking system in the absence of a specified prudential treatment.

The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the prudential regulation of banks. Its 45 members comprise central banks and bank supervisors from 28 jurisdictions. The committee’s secretariat is located at the BIS in Basel, Switzerland.

The committee’s “proposals differentiate between crypto assets based on the market, liquidity, credit and operational risks they present for banks,” the BIS described, elaborating:

The proposals split crypto assets into two broad groups: those eligible for treatment under the existing Basel Framework with some modifications; and others, such as bitcoin, are subject to a new conservative prudential treatment.

The first group includes “certain tokenized traditional assets and stablecoins,” the BIS clarified, adding that crypto assets in the second group “pose additional and higher risks.”

Submissions on the proposals must be made by Sept. 10. However, the BIS stated that due to the rapidly evolving and complex nature of this asset class, more than one consultation is likely needed. The BIS further noted that central bank digital currencies (CBDCs) are not within the scope of the consultation.

What do you think about the Basel Committee’s proposals? Let us know in the comments section below.

Original Article