What has been happening around Blockchain Technology and Cryptocurrencies this week? The most relevant local and international developments as well as appealing background reports in a pointed and compact way in retrospect in our weekly review.
Brief summary of our weekly review:
Tokenization, i.e. the representation of an asset on a blockchain, is gaining traction. For illiquid assets such as real estate, art or commodities, tokenization can open up completely new worlds. Through divisibility, global transferability and low transaction costs, private investors gain access to assets that were previously only available to institutional investors. Markets with historically low liquidity could thus enjoy a new inflow of investments. Only recently, a crypto exchange announced that it would offer tokenized shares on its platform. This week, the world's second largest bank, the China Construction Bank (CCB), showed that traditional financial instruments can also benefit. The major bank will be the first Chinese institution to launch digital bonds on the market. These will be tokenized certificates of deposit of bonds, to which private investors will also have access.
The blockchain technology and specifically tokenization is slowly finding its way into the mainstream through the gaming industry. This week, a blockchain game that creates unique tokens for football trading cards has brought German record-holding champions FC Bayern Munich on board. The strong growth of the crypto industry is obviously attracting attention. The fact that the gaming sector is at the forefront of adoption is not surprising either. After all, it is one of the most receptive industries for digital technologies. Just recently, a Japanese eSports team also announced that in future they will pay their players in crypto currencies.
Bitcoin and other crypto currencies had a good run this year. With a price increase of over 125% YTD, Bitcoin is the "Best Performing Asset" of this year. A simple view of a historical price developments is made possible by price diagrams. The historical price of an asset reflects market sentiment and decisions, both rational and irrational. The current price is the equilibrium between supply and demand of all market participants. Often, these charts are used to search for repetitive patterns with the aim of obtaining better probabilities of predicting future movements. While some market participants do in fact not know or do not want to deal with this area, others trade exclusively on such signals. A brief summary of the topic, which plays an important role in the traditional markets as well as in the world of crypto assets.
When investing in crypto assets, the security of their safekeeping is essential. There are many potential targets for fraudsters. Among various existing custody methods, hardware wallets offer optimal security for most users. A hardware wallet is a small, dedicated device that keeps the private keys offline. Roland Stadler illustrates how hardware wallets are easy to use and offer a high degree of security.
Security is critical in a world of digitalization. Blockchain technology can also be targeted by attackers due to its decentralized, open source nature. Yves Longchamp offers an overview of the three most common types of attack and their respective defense techniques. The most common attack is the "51% Attack" - the control over 51% of the hash rate of a network by a malicious attacker.
Futhermore: Bitcoin makes it onto the front pages of traditional media due to this year' s price rally. In fact, the crypto currency left behind all asset classes with a yearly performance of 108%. Even though it crashed by over 60% in march, bulls were able to regain control and started pushing towards all time highs. Not even the annual winners Gold (+27%), Silver (+39%) or the Nasdaq Index (+38%) were unable to keep up. The price development is no coincidence. In its eleven-year history, the oldest crypto currency has shown a remarkable development. In this connection, not only the price development should be considered, but in particular the factors which created the foundation for the new highs of the year.
Selected articles in the weekly review:
China Construction Bank (CCB) is the first financial institution to launch tokenized bonds. An overview and the advantages of tokenization.
A fantasy soccer game based on the blockchain technology brings FC Bayern Munich on board. Tokenization is slowly but surely finding its way into the mainstream through the gaming sector.
The historical price development of any asset, shown in a price chart, is more than just a graph. It reflects moods and decisions, both rational and irrational. An overview of the basics and concepts of technical analysis.
When investing in crypto assets, the security of their safekeeping is essential. A summary of the most common options for crypto custody and the advantages of hardware wallets.
Blockchain technology is intended to bring additional security to the online world. Nevertheless, there are some weak points that need to be taken into account. An overview of the three most popular blockchain attacks and corresponding defense techniques.
The impressive Bitcoin price increase surprises many. This is not by chance. The crypto currency strengthened its foundation in this year particularly. A (re)view on fundamental developments and the price increase.
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