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Andreas Antonopoulos says transaction fees help crypto-market release well-funded, well-developed wallets on time

Arijit Sarkar

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Andreas Antonopoulos explains the 'wallet-fees to fund developers' dillema
Credit: Pixabay

While the market and crypto-users suffer the most following misinformation campaigns on the Internet, Andreas Antonopoulos, Bitcoin advocate and expert, has been clearing clouds of confusion about the subject through various self-published podcasts and videos.

Antonopoulos recently conducted a MOOC [Massive Open Online Course] session, which detailed the alternative uses of the blockchain technology and touched upon popular alternative cryptocurrencies and their functionalities.

In a Q&A session that followed the online seminar, Antonopoulos gave his take on questions posted by one of the viewers (Mario),

“Have you heard about a new proposal to impose ‘gas fees’ on wallet transactions to fund developers? What is this about?”

In response, Antonopoulos highlighted that Vitalik Buterin was the first to propose this fee for the Ethereum community “to have a common practice, not a rule, to impose a slight voluntary fee on every transaction that funds developers”. On similar grounds, some wallets are now giving users the option to “make a donation or add a small fee that goes to the wallet developers”, he explained.

Antonopoulos added that one of the main problems in the crypto ecosystem was ‘underfunded wallets’ which were typically available for free and primarily rely on advertisements and add-on services. Antonopoulos concluded by stating that the transaction fees will help the crypto market release wallets that are well-funded and well-developed.





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Bitcoin

Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000

Akash Anand

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Bitcoin's on-chain/off-chain valuation indicators they key point of focus as crypto heads towards $13,000
Source: Pixabay

With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.

The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.

Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”

At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,

“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”

The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.





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