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Binance to Invest $200 Million in Forbes

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Binance, a well-known cryptocurrency and blockchain infrastructure provider, is investing $200 million in Forbes, a 104 year old business information company. The move comes as Binance seeks to increase its exposure to traditional investors and expand its reach beyond the crypto community.

Binance announced their investment in Forbes prior to the media giant partnering with a special purpose acquisition company (SPAC), Magnum Opus Acquisition Limited, which is publicly traded. In August 2021, upon partnership with this acquisition company, Forbes also announced that it would go public under the tag “FRBS” on the stock exchange within the first quarter of 2022. By investing $200 Million in Forbes directly through this deal with Magnum Opus, Binance is furthering their relationship.

The investment in Forbes appears to be a large-scale marketing move by Binance as the website is reported to have an audience of 150 million people. This will allow for increased understanding and education of blockchain technologies by average consumers. Binance CEO, Billionaire ChangPeng ‘CZ’ Zhao gave a statement saying, “as Web3 and blockchain technologies move forward and the crypto market matures, we know that media plays an essential role in building consumer awareness.”

Binance is expected to help Forbes bridge the gap between its current and potential audience by expanding its opportunities to “maximize its brand and enterprise values”. In recent years, Forbes has lost significant ground as a media company due in part to its increasingly heavy reliance on unverified “contributors” to produce content for its website.

In 2016, Heather Morgan was charged with taking part in a billion-dollar Bitcoin theft scheme alongside her husband in Hong Kong that caused the value of Bitcoin to drop significantly. Another contributor recently confessed to being bribed $600 to write a story promoting Jeffrey Epstein. These are only examples from among the 3,000 contributors involved in similar pay-to-play schemes and accepting bribes for promotion found by Harvard’s Nieman Lab study.

Forbes’ reputation and trustworthiness were called into question in the light of these disputes, therefore the news source needed to rebrand to regain its lost following. Forbes will be able to utilize Binance as a platform for inputting their ideas, which, given the $20 billion annual revenue of the exchange, appears like excellent news for multi-million dollar media company.

Changpeng Zhao took to Twitter to ensure that despite the investment, “Forbes editorial independence is and will always be sacrosanct”. Forbes CEO Mike Federle claimed that the motive behind the business information media outlet selling stakes to a cryptocurrency provider is that “Forbes is committed to demystifying the complexities and providing helpful information about blockchain technologies and all emerging digital assets.”

The Binance-Forbes collaboration is expected to open a slew of business doors for both firms in the Web 2 and Web 3 sectors. Once Forbes becomes publicly listed on the stock market, Binance will supposedly acquire a stake in the magazine through an acquisition firm. By investing in Forbes, Binance not only creates a relationship with the classic brand, but also the Special Purpose Acquisition Company, Magnum Opus. Additionally, Binance Labs head Bill Chin and Chief Communications Officer Patrick Hillman are joining Forbes’ board of directors. This gives Binance an active voice in how Web3 is being implemented by a leading company in the space.

CDBCs behind the scene

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The inevitable collapse of physical Fiat currencies is why central banks around the world have been scrambling to develop their Central Bank digital currencies or CDBCs.

Not surprisingly the bank of England has been one of the most active in this regard, but it’s not the only one.

Over 90 percent of central banks are actively exploring CDBC’s, according to the bank for international settlements or BIS.

Fun fact – the BIS is the bank for central banks and it has been coordinating the rollout of CDBC’s around the world.

Now, Australia recently announced that it will be testing its digital Aussie dollar mid next year, this is around the time that the FEDs own fast payment service is supposed to be rolled out note that fast payment services are effectively a precursor to CDBC’s according to the BIS naturally.

Russia is working on its own CDBC which it plans to use for trade with China.

Russia’s digital Ruble is reportedly expected later this year and China’s own digital Yuan appears to be entering its final phase of rollout note that these are retail CDBC’s meaning they will be used by regular people.

Next we have a CDBC test which involved Hong Kong, Thailand, the UAE and China that was apparently very successful.

This test involved the BIS’s so-called multi-CDBC platform or MCDBC which is thankfully restricted to wholesale CDBCs that are intended for select individuals and institutions.

This is similar to the BIS’s so-called Icebreaker Hub, International CDBC experiment which will feature Norway, Sweden and Israel.

Note that Norway is reportedly testing its upcoming digital currency on Ethereum.

Israel reportedly did the same last summer, the more you know.

It seems that the only thing that’s left for the central banks to do is find some way of getting rid of cash.

Now I’ve long speculated that inflation is how they will achieve this and it looks like that prediction is starting to play out due to seemingly unrelated reasons, nobody will want cash when it’s worth nothing.

Luckily there is no way for these central banks to stop cryptocurrency, especially BTC there will always be a way to get your hands on cryptocurrency so long as the internet is intact.

Let’s hope they don’t do anything funny on that front.

How to Give Away Cryptocurrencies to a Loved One

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You may not think your small cryptocurrency investments are worth bother planning for, but if they continue to grow they could make up a large part of your estate. Make sure you have a plan in case something happens to you — after all, “you only live once!”

Crypto accounts differ from regular investment accounts in that they’re more prone to security risks and you usually can’t name a benefactor. If, for example, you keep your crypto on a physical device at home with only a few people knowing your key -– which functions as password of sorts allowing access to a Crypto wallet – one of those acquaintances could easily come into your house and burglarize your crypto just as if they walked off with great-grandmother’s diamond earrings. Alternately, if you share the keys with no one and something happens to them, then your crypto is lost forever.

Just like you would with any other valuable asset, it’s important to understand how to safely store your crypto and communicate your wishes with your loved ones.

Know how your crypto is stored

Leather wallets store and trade cryptocurrencies, but they’re not the kind you’ll find at Walmart or Etsy. Digital cryptocurrency wallets are software programs or websites that allow you to keep track of your crypto assets. Physical hardware wallets, on the other hand, provide a more secure way to store your digital currencies. The type you pick is determined by what you want to do with your bitcoin.

Hot wallets: Bitcoin ATMs are machines that allow users to trade and buy cryptocurrencies. They’re typically free and easy to use, but they’re not as secure because they’re always connected to the internet.

Cold wallets: The most secure method of storing crypto is to use a hardware wallet. These are used to keep cryptocurrency for longer periods of time. Consider it like putting your assets into a freezer.

The hot wallet is intended for more immediate use, like a checking account, while the cold wallet is better for long-term storage, similarly to a savings account. You’re able to have both at the same time.

The person who has control over the randomly generated numbers and letters that make up a password – known as a key – also has access to your crypto. This could be you, a third-party exchange, or some combination of both.

Alex Mejias, founder and managing attorney at James River Law in Richmond, Virginia recommends not keeping more than you’re willing to lose on a third-party exchange as a long-term solution. “You don’t control the keys,” he says. “They could freeze your funds or get attacked.” Instead, he suggests looking into a self-custody or hybrid option as the value of your crypto grows.

Keep your crypto secure, yet accessible

A cold wallet is a physical storage device that’s easy to lose because it’s small. To access your cold wallet, you need a PIN code, and you must also set up a recovery phrase as a backup in case you lose your key. Mejias says it’s crucial to have a fireproof safe at home or a safety deposit box at the bank; however, don’t store your coldwallet in the same place as the note containing all of items–your key, PIN, and recovery phrase. If somebody finds those together, then whoever has them can say goodbye to any Bitcoin stored there.

More than anything, devise a storage system that is logical. “Don’t make it overly complicated to the point where you can’t even remember it,” Mejias says. He knows of people who write down their keys and then tear the paper into three pieces before hiding each section in different places. “It sounds like a good idea at first, but it’s actually terrible. If you lose just one of those three pieces, your key is gone forever–and now you’ve tripled your risk.”

Make a detailed plan for your loved ones

You can name a beneficiary in your will for your crypto assets, as well as add a document to your estate plan with passwords, PINs, keys and instructions on how to find your cold wallet. If you have an account at a cryptocurrency exchange, then customer support can be contacted by your beneficiary after death.

If a Coinbase user passes away, their next of kin will be guided through a process by a Coinbase analyst who will provide one-on-one assistance. If a Gemini user passes away, their account can only be transferred out if the death certificate and power of attorney is provided.

A Gemini representative said, “We aim to make this process easier in the future, so we’re currently working on integrating account beneficiaries functionality into our platform.”

Update your plan and your wallet

Cold wallets need TLC, too. Ensure that your assets will go to the right people by keeping your estate plan updated with firmware updates and providing up-to-date instructions so beneficiaries can easily access these funds after you’re gone.

Mejias says that crypto has “the potential to be a very explosive thing” because investors could make a lot of money in a short period of time. He added that, within the next 5-10 years, there is potential for exponential growth in value.

What Is Cryptocurrency?

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A cryptocurrency is a digital or virtual currency that is secured using cryptography and thus virtually impossible to counterfeit or duplicate. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger maintained by a network of computers spread across the globe.

Cryptocurrencies, by definition, are not produced or controlled by any centralized authority, making them theoretically immune to government interference or manipulation.

Cryptocurrencies are digital or virtual currencies based on cryptographic algorithms. They allow people to make secure online payments without the use of third-party intermediaries. The term “crypto” refers to the various encryption algorithms and cryptographic techniques that protect these records, such as elliptical curve encryption, public-private key pairs, and hashing functions.

Cryptocurrencies might be mined or purchased on cryptocurrency exchanges. Some e-commerce sites do not accept cryptocurrencies as payment methods. Cryptocurrency values, in particular Bitcoin’s, have seen a tremendous boost in recent months, making them popular as trading instruments. To a lesser extent, they are utilized for cross-border transfers.

Blockchain technology is at the heart of Bitcoin’s popularity and usefulness. Blockchain, as the name suggests, is a set of linked blocks or an online ledger. Each block includes a list of transactions that have been independently verified by all members of the network.

In order to confirm a new block, every node must verify it first. This makes forging transaction histories nearly impossible.

The data within the online ledger must be confirmed by the entire network of an individual node, or computer storing a copy of the ledger.

Blockchain technology, according to experts, may be used in a variety of industries and procedures, including online voting and crowdfunding. JPMorgan Chase & Co., for example, is experimenting with blockchain technology to cut costs by simplifying payment processing.

Bitcoin is the most popular and valuable cryptocurrency in the world. Satoshi Nakamoto, an unknown individual, invented it and released it to the public in a white paper in 2008. There are now thousands of cryptocurrencies available on the market.

Each cryptocurrency has a unique function and set of specifications. For instance, Ethereum’s ether is meant to be used as gas for its smart contract platform. Similarly, Ripple’s XRP is utilized by banks to make cross-border transfers easier.

Bitcoin, which was released to the public in 2009, is by far the most widely traded and documented cryptocurrency. In May 2022, there were over 19 million bitcoins in circulation with a market capitalization of around $576 billion. Only 21 million bitcoins will ever exist.

In the aftermath of Bitcoin’s popularity, numerous “altcoins” have been developed. Some are clones or forks of Bitcoin, while others are new currencies that were constructed from the ground up. Solana, Litecoin, Ethereum, Cardano, and EOS are among them. By November 2021, the overall value of all cryptocurrencies in circulation had risen to over $2 trillion—nearly 41% of it was represented by Bitcoin.

Currencies not affiliated with any commodity, like dollars, get their value from the government or other financial institutions. For example, if you have a one dollar bill, it is backed by the Federal Reserve.

Cryptocurrencies are not backed by any public or private entities, so their legal status is unclear in different financial jurisdictions. Cryptocurrencies have mostly functioned outside existing financial infrastructure, making it difficult to use them in daily transactions and trading. In June 2019, the Financial Action Task Force (FATF) recommended that wire transfers of cryptocurrencies should be subject to requirements for compliance with anti-money laundering regulations.

El Salvador is the first and only country in the world as of December 2021 to allow Bitcoin as legal tender for monetary transactions. The regulation of cryptocurrency differs depending on location.

Bitcoin is legally considered property in Japan due to the Payment Services Act.

China, as previously reported by CBNC and other sources, has banned cryptocurrency exchanges and mining. Within its borders, China has prohibited cryptocurrency exchanges and mining. In December, it was said that India is working on a framework for cryptocurrencies.

Derivatives and other products that use cryptocurrencies will need to qualify as “financial instruments” in order for them to be legal in the European Union. In June 2021, rules were set by The Markets in Crypto-Assets (MiCA) regulation for companies or vendors providing financial services using cryptocurrencies was released by the European Commission.

The United States has the biggest and most sophisticated financial market in the world, where crypto derivatives like Bitcoin futures are available on exchanges such as the Chicago Mercantile Exchange. However, this does not mean that everyone is allowed to invest in Bitcoin or Ethereum. The Securities and Exchange Commission (SEC) has said that these two cryptocurrencies are not securities.

Cryptocurrencies have earned a poor reputation as an unstable investment, owing to high investor losses caused by frauds, hacks, and bugs. Although the underlying cryptography is generally safe, using and keeping crypto assets may be complicated for new users.

In addition to market risks associated with speculative assets, cryptocurrency investors should be aware of the following dangers:

There is no way to reverse or cancel a cryptocurrency transaction once it has been sent, unlike with traditional finance. According to some calculations, around a fifth of all bitcoins are now locked due to forgotten passwords or incorrect sending addresses.

Regulatory concerns: Many governments are still attempting to regulate cryptocurrencies as securities, currencies, or both, despite the fact that they have been designated as such. It might be tough to sell cryptocurrencies suddenly if a government bans them.

Counterparty risks: Many investors and merchants use exchanges or other custodians to store their cryptocurrency. The loss of one’s entire investment if a third party fails would be due to theft or loss by one of these third parties.

There are few protections against fraudulent or unethical management practices because there aren’t many uniform laws. Many investors have lost significant sums to management teams that failed to deliver a product.

Risks associated with programming: Some investment and lending platforms utilize automated smart contracts to manage user deposits. By investing in one of theseplatforms, you assume the risk that an error or security flaw in the programming could lead to losing your deposit.

Market Manipulation: Market manipulation is still a big issue in the cryptocurrency world, and several exchanges have been accused of artificially propping up or downing the price of their assets.

Despite the dangers, cryptocurrencies have experienced a significant increase in value, with the total market capitalization surpassing $1 trillion.

While there is no guarantee of success, some investors have made a lot of money by taking the risk and investing in early-stage cryptocurrencies.

Cryptocurrencies were created with the aim of revolutionizing banking infrastructure. There are, however, drawbacks to every upheaval. There are several contrasts between the theoretical ideal of a decentralized system using cryptocurrencies and its actual implementation at this time in cryptocurrency development.

The following are some advantages and disadvantages of cryptocurrencies.

Advantages

Cryptocurrencies are a new, decentralized paradigm for money. In this mechanism, intermediaries like banks and monetary institutions are not required to establish trust and enforce transactions between two parties. As a result, a system based on cryptocurrencies eliminates the risk of having a single point of failure, such as a big bank, causing a chain reaction of crises around the world similar to what occurred in 2008 when institutions in the United States failed.

Cryptocurrencies allow you to send money directly from one party to another without the need for a third party, such as a bank or a credit card company. Public and private keys are used in these decentralized transactions, as well as various incentive systems, such as proof of work and proof of stake.

Cryptocurrency transfers don’t use third-party intermediaries, making them quicker than standard money transfers. In decentralized finance, flash loans are an example of such a transfer. Without needing collateral, these transactions can be completed in just seconds and are often used for trading purposes. Investing in cryptocurrency can be profitable. Cryptocurrencies have exploded in value in the previous decade, eclipsing $2 trillion at one point. Bitcoin was worth more than $550 billion as of May 2022 in crypto markets.

The cryptocurrency world is being put to the test by the recent remittance boom. Cryptocurrencies, such as Bitcoin act as an intermediary currency to help those transferring money across borders. The process usually works like this: change a fiat currency into Bitcoin (or another cryptocurrency), make the border crossing, and finally convert it back into a fiat currency at your destination. This makes transfers quicker and often cheaper.

Disadvantages

Cryptocurrencies are pseudonymous rather than truly anonymous, as they leave a digital footprint that can be tracked by law enforcement. They provide the potential for government or federal authorities to follow the financial activities of ordinary individuals.

Cryptocurrencies have become a useful tool for unlawful activities like money laundering and black market purchases. The case of Dread Pirate Roberts, who ran an online marketplace to sell drugs on the dark web, is already well-known. Hackers have also taken to using cryptocurrencies for ransomware attacks.

Cryptocurrencies are supposed to be owned and distributed by many across a blockchain. In actuality, however, only a tiny number of holders possess the majority of these assets. For instance, research from MIT showed that in 2020 just 11000 investors held 45% of Bitcoin’s value.

Cryptocurrencies boast that anyone can mine them with only a computer and an Internet connection. Nevertheless, mining for popular cryptocurrencies necessitates a lot of energy – sometimes costing as much power to run as entire countries use. The uncertainly of mining returns along with the expensive energy costs have caused miners to gravitate towards large firms who regularly rake in billions of dollars in revenue. According to an MIT study, just 10% of miners are responsible for 90% of total cryptocurrency mined worldwide.

Although blockchains for cryptocurrencies are quite secure, other crypto storage locations, such as exchanges and wallets, can be hacked. Cryptocurrency exchanges and wallets have been hacked on numerous occasions, resulting in the loss of hundreds of millions of dollars’ worth of “money.”

The main issue with cryptocurrencies is their instability in public markets. For example, the value of Bitcoin surged to $17,738 in December 2017 but then plummeted to only $7,575 a few months later.

Cryptocurrencies are thus seen by some economists as a passing fad or speculative bubble.

Cryptocurrencies are digital assets that rely on cryptography for security. They’re a relatively new technology, so they tend to be quite speculative. Make sure you understand the risks before investing any money.

What Is Digital Money?

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Digital money, or digital currency, refers to any form of payment that only exists electronically. An example of digital money is cryptocurrency Bitcoin. Unlike physical currency, which is printed and minted on paper or metal, digital money isn’t tangible. Rather, it’s transferred using online systems.

Digital money refers to any currency that is only available in digital form. This can include fiat currencies, such as dollars or euros. Digital money is exchanged using technologies such as smartphones, credit cards, and online cryptocurrency exchanges. In some cases, it can be converted into physical cash through the use of an ATM machine

There’s already a form of digital currency existing in society today through cash deposited in online bank accounts. This money can be sent and received by others, as well as used for purchases made online.

In essence, a cryptocurrency is a digital form of money that can be used in the same way as traditional currency for everyday transactions. It is not, however, cash. For example, your online bank’s dollars are not digital money because you must physically retrieve them from an ATM to convert them into reality.

Bitcoin is the first and most well-known cryptocurrency. It was created by a person (or group of people) known as Satoshi Nakamoto, who published a paper describing bitcoin in 2008. Bitcoin is completely decentralized, which means no single institution or government controls it. Instead, bitcoin’s network is made up of computers that anyone can become a part of. These machines run software that verifies all transactions and keeps everyone’s copy of the blockchain up to date with other members’ in order to establish trust between them and ensure security for every user on the network. Because bitcoins aren’t printed or controlled by any bank or central authority, they may be used to send money across borders quickly and easily without any exchange rate fees or delays like you would experience when sending cash through the traditional financial system. Bitcoin has been called “digital money” because it improves upon the process of monetary transactions – just as e-mail improved upon handwriting correspondence. For example, digital currency’s technological rails make international money transfers quicker and easier than traditional money does. This sort of currency also eliminates some of the activities required during currency creation for central banks so they have more time to focus on their core responsibilities rather than administrative procedures related to printing new notes and distributing existing ones throughout their country . The use of cryptography in certain forms of electronic cash prevents governments or private agencies from restricting funds movement within crypto networks via interference .

Given these benefits, digital money has quickly become a high priority for governments all around the world. Since 2017, Sweden’s central bank has published several research papers that analyze the advantages and drawbacks of adopting digital currency into its economy. China has already done pilot tests with the DC/EP, which is the digital version of its national currency. The country plans to release it soon. The Bahamas released its digital iteration of the country’s national currency, called the sand dollar, in October 2020.

Around 111 countries from the IMF’s 159 member nations are researching or preparing to launch digital currency in the immediate future, according to a February 2021 poll by the International Monetary Fund (IMF).

Several systems, like credit card companies and wire transfer services, already use digital money for transactions. For example, you can purchase things on credit with a credit card. With a wire transfer system, you’re able to send cash internationally.

Because they rely on separate processing systems, these transactions are both costly and time-consuming. The SWIFT network, for example, is a payments systems network that includes various banks and financial institutions from around the world. Each transaction completed through the SWIFT network incurs fees. The member institutions of SWIFT also function in a patchwork of regulation, each specific to a different financial jurisdiction. Moreover, these systems are built on the promise of future payments, ensuring a time lag for each transaction. For example, reconciliation for credit cards occurs at a later date, and users can file chargebacks for transactions.

Using distributed ledger technology (DLT), digital money aims to reduce or eliminate the time lag and operating costs associated with traditional transactions. In a DLT system, nodes or shared ledgers connect to form a common network that processes transactions. This network can extend to other jurisdictions, which minimizes transaction processing time. By providing transparency to authorities and stakeholders, DLT improves the resiliency of financial networks by eliminating the need for centralized databases of records.

The Bitcoin network’s peer-to-peer payment system is decentralized and distributed, which eliminates the risk of a central authority controlling it. Blockchain technology uses an algorithmic consensus mechanism to solve this issue, as well. The problem, in a nutshell, is ensuring that the same person doesn’t spend the same “note” of digital currency twice.

A system of serial numbers is used in a centralized setup of currency production and distribution, such as the one with central banks today, to guarantee that each note is unique. Central bank digital currencies (CBDCs) and private-party digital money representing transactions are two forms of digital money that replicate the function of a central authority in assuring solvency and honesty.

Digital money that is not centralized is known as decentralized currency. They get rid of the need for central authorities to regulate production and intermediaries who are necessary to distribute the currency. Cryptography is utilized. Blind signatures conceal the identities of transacting parties, and zero-knowledge proofs encrypt transaction information. Bitcoin and Ethereum are examples of cryptocurrencies that use this sort of digital money.

Digital money can take on various forms, thanks to its technological underpinning. The three adaptations of digital money that have emerged in recent times are as follows:

Central bank digital currencies (CBDCs) are separate from fiat currencies, both of which are backed by the authority and credit of a central bank. CBDCs make it easier for a government to carry out monetary policy by removing the need for intermediaries, such as banks and financial institutions, who would normally distribute national currency. This establishes a direct connection between the government and its citizens.

There are two types of CBDCs – retail and wholesale – which function differently depending on their implementation in the economy. Retail CBDCs can be used for daily transactions, just like traditional fiat currencies, while Wholesale CBDCs are only used for transactions between banks and financial institutions.

Cryptocurrencies are decentralized, encrypted digital money. Cryptography is used to create cryptocurrencies. The crypto wrapper that surrounds a cryptocurrency adds extra protection and makes transactions tamper-proof. Bitcoin and Ethereum are the most popular cryptocurrencies. Since 2017, the popularity of cryptocurrencies as an investment category has skyrocketed, causing their value to rise dramatically and bringing crypto market capitalization to $2 trillion by July 2021.

Stablecoins are a type of cryptocurrency that was invented to topple the price inconsistencies of regular cryptocurrencies. They can be thought of as a form of private money whose value is linked to another currency or assets, ensuring stability. Stablecoins often take the place of fiat currencies but without government support. In recent years, the stablecoin market has seen significant growth. As of February 2021, over 200 stablecoins have been released with many more in development.