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Bitcoin tipping on Twitter: A game changer for crypto adoption?

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Amid all the recent price volatility seen by Bitcoin (BTC) and the rest of the crypto market, news of social media behemoth Twitter reportedly getting ready to enable Bitcoin tipping for content creators went relatively unnoticed.

Reports suggest that the latest Twitter iOS beta is being devised in a way that will help BTC become part of the company’s upcoming Tip Jar module. If implemented, the move could have a substantial impact on the global crypto landscape, as it might instill the confidence necessary for other companies operating within the social media space to follow suit.

Merrick Theobald, vice president of marketing at crypto payments firm BitPay, told Cointelegraph that as more major mainstream business entities like Twitter embrace crypto and openly support Bitcoin and blockchain tech, it will help to push the industry forward since “Blockchain payments are the best way to transact online,” adding: “Twitter’s desire to add Bitcoin to the Twitter Tipping Jar embraces this new and different approach to financial technology and will help accelerate adoption.”

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Additionally, Theobald is intrigued by the prospect of the convergence of two great digital technologies — i.e., blockchain payments and tweets — especially as an increasing number of crypto holders seem to be looking for avenues to spend their digital assets. “The crypto market is huge with a total market cap exceeding $2+ trillion now,” he emphasized.

Crypto education and ease of use will drive Twitter’s BTC experiment

Despite growing awareness, the crypto industry is still in the early stages of widespread adoption, with most casual Twitter users as yet unaware of the technical ins and outs of this relatively nascent technology. For example, even many tech-savvy social media users may not be educated enough on how to buy, store and manage their digital assets and could overlook Twitter’s Bitcoin tipping payment option altogether.

Wes Levitt, head of strategy at Theta Labs — a decentralized peer-to-peer data streaming and delivery platform — seems to agree with this assessment but is also of the belief that if Twitter can make the entire crypto payment experience streamlined for its users, the company could be onto something, adding:

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“This has a good chance of making it into production, given that Jack’s a major Bitcoin supporter and holder. If his goal is widespread crypto adoption, he knows that exposing Twitter’s 300m+ active users to Bitcoin is a great start.”

In his view, it is critical that users also have the option to fund their tips via linked PayPal accounts as well as other traditional services like Apple Pay and others so that they are not having crypto forced down their throats. “You need the feature to gain traction first before you hit users with the complexity of crypto transactions,” Levitt closed out by saying.

If the crypto tipping feature is, in fact, on its way, BTC will be added alongside traditional gateways like PayPal and Venmo as acceptable payment options on the Tip Jar. The rollout may also see Twitter providing its users with a succinct tutorial regarding Bitcoin and the Lightning Network. Finally, all Bitcoin-based tips will most likely be facilitated via the use of the aforementioned Lightning Network, driving down the costs surrounding making a transaction.

Not everyone is sold on the move

Though some believe that if Twitter were to adopt BTC it could have a major positive impact on the crypto ecosystem, not everyone seems to agree with this assessment. For example, Nimrod Lehavi, CEO of Simplex — a crypto payments infrastructure firm — told Cointelegraph that the BTC tipping jar is not necessarily a “killer feature,” elaborating:

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“Crypto Twitter is indeed a very lively neighborhood but I really doubt if tipping is something that connects with opinion broadcasting. In social networks, if your opinion is valuable, you gain influence. And there are ways to monetize it.”

Even though the creation of such a tipping mechanism is quite straightforward in Lehavi’s eyes, the challenge will emerge when it comes to establishing on- and off-ramps that can help fulfill such a global vision. “It’s a big question how users will load more credit to be able to tip and the influencers cashing out,” he added.

He suggested that even though Twitter may provide its users with an initial amount to tip others, it remains to be seen how things will proceed from there because if the move is successful, it could potentially lay the groundwork for many other companies to follow.

Twitter’s crypto foray already in the making?

It is worth highlighting that Twitter CEO Jack Dorsey had previously hinted that a Bitcoin tipping option was in the works — as early as May — when his social media firm revealed its “Tip Jar” concept was designed to enable platform users to reward content creators with the touch of a button.

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That said, a Bitcoin tipping option seems to be just one of the many strings of BTC-focused adoption developments for the social media giant over the last few months, as earlier this year in August, Dorsey made his intentions clear when he announced his plans to build a decentralized exchange for Bitcoin.

Similarly, in July, Dorsey revealed that Square, an American financial services and digital payments company also owned by him, was also actively working on developing an “assisted custody” hardware wallet for Bitcoin.

Lastly, as per several interviews conducted earlier this year, Dorsey stated that he sees Bitcoin as being the key to Twitter’s future while noting that Twitter has a comprehensive roadmap that includes the use of BTC in relation to many of the company’s envisioned commercial and subscription-based activities.

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If Twitter’s Bitcoin tipping option comes to fruition soon, it could set in motion a domino effect that could see not only social media companies but also other financial entities from various domains begin to strongly consider the use of digital assets as one of the ways to facilitate payments.

Furthermore, the move could also serve as a tipping point for crypto as a legitimate payment medium, especially in the eyes of those individuals who may be sitting on the fence when it comes to investing in digital assets. Not only that, but it will also help BTC to fulfill one of the most important use cases for cryptocurrencies — i.e., of a payment medium — espoused by its proponents for more than a decade now.

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Wen moon? Data shows pro traders becoming more bullish on Bitcoin price

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MicroStrategy’s purchase of 7,002 BTC might have helped boost Bitcoin price today, but derivatives data also shows that pro traders are becoming more bullish.

The $4,700 Bitcoin (BTC) price spike on Nov. 29 was likely a great relief for holders, but it seems premature to call the bottom according to derivative metrics. 

This should not come as a surprise because Bitcoin price is still 15% below the $69,000 all-time high set on Nov. 10. Just 15 days later, the cryptocurrency was testing the $53,500 support after an abrupt 22% correction.

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Today’s trend reversal was possibly encouraged by MicroStrategy’s announcement that it had acquired 7,002 Bitcoin on Monday at an average price of $59,187 per coin. The listed company raised money by selling 571,001 shares between Oct. 1 and Nov. 29, raising a total of $414.4 million in cash.

More bullish news came after German stock market operator Deutsche Boerse announced the listing of the Invesco Physical Bitcoin exchange-traded note or ETN. The new product will trade under the ticker BTIC on Deutsche Boerse’s Xetra digital stock exchange.

Data shows pro traders are still neutral-to-bullish

To understand how bullish or bearish professional traders are positioned, one should analyze the futures basis rate. That indicator is also known as the futures premium, and it measures the difference between futures contracts and the current spot market at regular exchanges.

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Bitcoin’s quarterly futures are the preferred instruments of whales and arbitrage desks. Even though derivatives might seem complicated for retail traders due to their settlement date and price difference from spot markets, the most notorious benefit is the lack of a fluctuating funding rate.

Bitcoin 3-month futures basis rate. Source: Laevitas.ch
The three-month futures typically trade with a 5%–15% annualized premium, which is deemed an opportunity cost for arbitrage trading. By postponing settlement, sellers demand a higher price and this causes the price difference.

Notice the 9% bottom on Nov. 27, as Bitcoin tested the $56,500 support. Then, after Monday’s rally above $58,000, the indicator shifted back to a healthy 12%. Even with this movement, there is no sign of excitement, but none of the past few weeks could be described as a bearish period.

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Lending markets provide additional insight

Margin trading allows investors to borrow cryptocurrency to leverage their trading position, therefore increasing the returns. For example, one can buy Bitcoin by borrowing Tether (USDT), thus increasing the exposure. On the other hand, borrowing Bitcoin can only be used to short it or bet on the price decrease.

Unlike futures contracts, the balance between margin longs and shorts isn’t necessarily matched.

OKEx USDT/BTC margin lending ratio. Source: OKEx

When the margin lending ratio is high, it indicates that the market is bullish—the opposite, a low lending ratio signals that the market is bearish.

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The chart above shows that traders have been borrowing more Bitcoin recently, because the ratio decreased from 21.9 on Nov. 26 to the current 11.3. However, the data leans bullish in absolute terms because the indicator favors stablecoin borrowing by a wide margin.

Derivatives data shows zero excitement from pro traders even as Bitcoin gained 9% from the $53,400 low on Nov. 28. Unlike retail traders, these experienced whales avoid FOMO, although the margin lending indicator shows signs of excessive optimism.

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Bitcoin, Ethereum and Two Smart Contract Competitors Are the Winners Among Institutional Investors, According to Crypto Asset Manager CoinShares

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Leading digital asset manager CoinShares says institutional investors have a strong appetite for Bitcoin (BTC) and three leading smart contract platforms.

According to the firm, the overall crypto market correction has left investors hungry for more.

“Digital asset investment products saw inflows of US$306m last week suggesting [a] continued appetite for digital assets.”

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As usual, BTC led all digital assets in terms of capital inflows, this time in the wake of a new exchange-traded product (ETP) set to launch on the Deutsche Borse exchange.

“Bitcoin saw the largest inflows in 5 weeks totaling US$247m following the launch of another investment product in Europe. This brings the 11 week run of inflows to US$2.7bn.”

BTC is trading at $58,475 at time of writing, up nearly 6% on the day.

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The leading smart contract platform Ethereum (ETH) concluded a strong month of inflows with a week totaling over $23 million.

“Ethereum saw inflows totaling US$23m last week, marking its 5th consecutive week of inflows.”

This week’s big winners in inflows relative to assets under management (AuM) also include the scalable smart contract platform Solana (SOL) and the interoperable blockchain Polkadot, which is designed to support multiple layer-1 smart contract protocols.

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“In terms of inflows relative to AuM, Polkadot and Solana continue to be the winners, with inflows representing 8.6% (US$11.5m) and 5.9% (US$14.6m) of AuM respectively last week.”

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Source: CoinShares

Ethereum is currently trading at $4,453.79, up 7.5% in the last 24 hours. SOL and DOT are trading at $211.48 and $36.82, respectively, at time of writing.

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Nayib Bukele sends cryptic response to Bank of England over Bitcoin law criticism

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  • Nayib Bukele questions England love for El Salvador over Bitcoin adoption.
  • England expreses concern over El Salvador Bitcoin law.
  • Outside England IMF also criticized El Salvador over Bitcoin law.

After he expressed concerns over Bitcoin adoption in the country, El Salvador President Nayib Bukele has sent a cryptic response to the Governor of the Bank of England, Andrew Bailey.

Over the weekend, Bailey said he is not a fan of bitcoin or its growing adoption in countries like El Salvador. He expressed concerns while speaking at Cambridge University, asking if Salvadorians are aware of Bitcoin’s volatility.

“It concerns me that a country would choose it as its national currency,” Bailey said in response to a question at an appearance at the Cambridge University student union on Thursday. “What would worry me most of all is, do the citizens of El Salvador understand the nature and volatility of the currency they have.”

Bank of England is not the only international body to express concerns over Bitcoin adoption by El Salvador. Since June, when the Central American country announced its Bitcoin intention, numerous global financial organizations have tried to warn the country not to do it.

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Outside the Bank of England, the IMF also criticized the move by the country.

Nayib Bukele’s cryptic, Ironic response

While addressing Bailey’s most recent comments, President Bukele responded in a tweet pointing at the “genuine” concerns that the BOE has for the people of El Salvador.

“Bank of England is “worried about El Salvador’s adoption of Bitcoin? Really?

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I guess the Bank of England’s interest in the well-being of our people is genuine. Right?

I mean, they have always cared about our people. Always.

Gotta love Bank of England,” he wrote.

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El Salvador adopted Bitcoin as its legal tender months back, and according to Nayib Bukele, there has been progress since the country made the move.

For instance, the nation has used the aforementioned volatility, especially when the price dips, to accumulate more portions of the asset and to use the profits when the price increases to make plans for buying pet hospitals or new schools.

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El Salvador adopted Bitcoin as its legal tender months back, and according to Nayib Bukele, there has been progress since the country made the move.

For instance, the nation has used the aforementioned volatility, especially when the price dips, to accumulate more portions of the asset and to use the profits when the price increases to make plans for buying pet hospitals or new schools.

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