Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

Bitcoin hits all-time high as major altcoins enjoy triple-digit gains

Without question, the biggest story of 2020 has to be Bitcoin’s dazzling return to $24,000 and beyond. Who would have thought this was possible back in March when BTC suffered an almighty flash crash that took it down to just $3,600?

Major altcoins were also basking in the glow of stellar returns this year. At one point this year, ETH was up 417% on where it started the year — outshining BTC in percentage terms, even though it’s some way off record highs.

Litecoin investors will also be popping open the champagne after prices managed to treble in 2020 — not bad considering it started the year at $40. And with all of these altcoins supported by PayPal’s crypto service, it’s very possible that their user bases will expand even further in 2021.

And who could forget DeFi — an industry that barely existed 12 months ago. Over the course of 2020, the total value locked in these protocols has leaped up by about 2,000%.

But as this festive edition of Hodler’s Digest was being written, one altcoin was suffering a rather spectacular fall from grace. The U.S. Securities and Exchange Commission announced it is taking legal action against Ripple — alleging that the XRP token is an unregistered security. After achieving highs of $0.76 in late November, the altcoin’s value has plummeted, and on Dec. 23, it fell below $0.30.

Who did the most for real-world crypto and blockchain adoption in 2020?

The history books will describe 2020 as a watershed moment for cryptocurrencies, but which companies, governments and organizations made the greatest contribution to adoption?

PayPal naturally makes the list. In October, it confirmed that it was planning to integrate cryptocurrencies into its platform — meaning that 300 million users would be able to buy, sell, hold and spend Bitcoin, Ether, Bitcoin Cash and Litecoin. The service is already available in the U.S. and is going to be rolled out next year.

Other big moments included the S&P Dow Jones Indices confirming that it will debut crypto indexes in 2021 — officially bringing digital assets to Wall Street. A vast majority of top-ranking tokens are going to be included, in a move that could spur further institutional adoption in cryptocurrency.

The Supreme Court of India leaped to the rescue when it sensationally overturned the Reserve Bank of India’s ban on financial institutions working with crypto companies — leaving many citizens unable to trade digital assets at all.

COVID-19 has also had an impact on cryptocurrency’s adoption as millions of us were forced to shift to digital payments. As Ben Franklin once said: “Out of adversity comes opportunity.”

Publicly recanted! Luminaries who came to terms with crypto in 2020

It’s exceedingly rare for public figures to perform a U-turn on remarks that they have made publicly. But Bitcoin’s dazzling performance this year has prompted several people to reevaluate their stance on cryptocurrencies.

In 2018, the economist Nouriel Roubini famously described crypto as “the mother of all scams,” dismissing blockchain as “the most over-hyped technology ever.” But in November 2020, he conceded that Bitcoin might qualify as a “partial store of value.”

Jim Cramer also realized the error of his ways after insisting that Bitcoin was not going to replace gold in 2017. In a segment on Mad Money at the time, he assured his viewers that the crypto craze was going to run out of steam. Fast forward three years, and he’s far more bullish… and full of praise for BTC’s scarcity.

And with PayPal wading into the industry, PayPal CEO Dan Schulman deserves an honorable mention, too. As recently as 2018, he had said crypto’s volatility made it “unsuitable to be a real currency that retailers can accept.” How things change. Within months, digital assets will be accepted by millions of its merchants.

Five times crypto got weird in 2020

Every industry, group, clique and conclave has its own share of weirdos — cryptocurrency and blockchain are no exception.

John McAfee announced that he was going to run as the “crypto candidate” in the U.S. presidential election but ended up running his campaign abroad because the U.S. was pursuing him on tax charges. He threw in the towel in May and instead ran for the vice presidency under the Libertarian Party. That didn’t go well, either.

Bitmain suffered a bitter power struggle that affected the company’s basic operations, leading to one of its co-founders being ousted. Thousands of mining rigs went missing in Mongolia, and it seems that the drama is far from over yet.

In July, Twitter was crippled by a devastating hack that saw the pages of high-profile figures including Elon Musk, Kanye West, Joe Biden and Warren Buffett compromised. Their profiles ended up being used for a Bitcoin giveaway scam, with tens of thousands of dollars being sent to fraudulent addresses.

Things got even weirder when Tron’s Justin Sun appeared to offer a $1-million bounty to track down those responsible, but the company failed to follow through on its high-profile promise.

And all of this comes before we even discuss John McAfee’s bizarre promise to eat his own genitalia if BTC fails to hit $1 million by the end of 2020. Sorry, John, looks like that price target is a little off the mark.

Gifting crypto to loved ones this holiday? Educate them first

This year, cryptocurrency has seeped into the public consciousness like never before, with BTC’s record surge making its way into the mainstream media. As a result, it’s little surprise that some crypto holders are planning to give digital assets as a gift this festive season.

Yet while the idea of gifting cryptocurrency to friends and family may sound appealing, there are considerations to take into account before sending them to your loved ones — especially newcomers.

For those who are tempted to follow through with this idea, educating recipients on how to store their crypto safely is crucial. Some of the easiest ways to gift crypto can include gift cards and ATM vouchers, eliminating the need to go through an exchange that may be difficult for newcomers to use.

BitPay chief marketing officer Bill Zielke told Cointelegraph that 2021 may be the tipping point for crypto to become a “cool gift to receive for special occasions.”

Winners and Losers

At the end of the week, Bitcoin is at $25,880, Ether $644 at and XRP at $.30. The total market cap is at $703,139,317,451.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are THETA, ZIL, and SNX. The top three altcoin losers of the week are XRP, OCEAN, and RSR.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis. 

Prediction of the Year

Top crypto adoption predictions that came true in 2020

Here at Hodler’s Digest, we’ve long brought you some of the industry’s most outlandish price predictions. But just like a broken clock is right twice a day, there are times when some of these forecasts are bang on the money.

Mike Novogratz had threatened to “hang his spurs” if BTC failed to hit $20,000 in 2020, but he is now entitled to breathe a sigh of relief after this all-important milestone was reached.

As early as 2013, Bill Gates had warned that currency can get “pretty inconvenient” — remarks that would prove timely as COVID-19 hastens the world’s transition to a cashless society.

And it’s also worth remembering that the Winklevoss twins have been banging the drum about Bitcoin being better than gold since 2016 when they put their case forward in the Financial Times. Fast forward to 2020, they now believe that BTC has the potential to wrestle away market share from gold and even achieve a price of $500,000 per coin.

FUD of the Week 

Notorious crypto figures arrested in 2020

Unfortunately, 2020 didn’t exactly shake off crypto’s reputation as being a honey pot for criminals — and from January to October, some estimates suggest that losses from thefts, fraud and hacks totaled a whopping $1.8 billion.

There were also a number of high-profile figures who became embroiled in legal issues. BitMEX founder Arthur Hayes went missing after the U.S. Department of Justice filed criminal charges — and he still hasn’t been tracked down. 

Meanwhile, John McAfee was detained in Barcelona over tax evasion charges levied by the U.S. government. He was also charged over fraudulently promoting a series of questionable crypto projects, from which he allegedly made millions of dollars. If convicted, he could face up to 30 years in prison.

And over in China, a staggering 109 people were taken into custody in connection with the PlusToken Ponzi scheme. In the end, 27 were accused of being the scheme’s masterminds, while the remaining 82 held smaller roles within the organization. In December, Chen Bo and 13 of his co-conspirators were sentenced to jail terms ranging between two and 11 years.

Cat got your tongue? Bitcoin critics wither in 2020

Compared with other bull run years such as 2017, 2020 has seen much less crypto criticism — with a number of Bitcoin naysayers appearing to soften their stance toward digital assets.

Prominent naysayers like Warren Buffett, Bill Gates and Donald Trump have largely remained silent about Bitcoin and crypto this year. Nobel Prize-winning economist Paul Krugman, who predicted a “total collapse” of Bitcoin in 2018, refrained from commenting as well.

According to data by major Bitcoin-themed website 99bitcoins, 2020 has been the year with the lowest Bitcoin “obituary” rate since 2013. 

Only seven cases of “Bitcoin death” were reported in media monitored by 99bitcoins, compared to 41 “obituaries” in 2019 and 93 in 2018.

Bitcoin FOMO? Tesla and these stocks crushed BTC’s gains in 2020

Bitcoin has wowed investors with all-time highs and year-to-date returns of over 200% — but there are stocks that still beat it.

As of Dec. 22, Peloton Interactive has secured dazzling annual returns of 384% as lockdowns forced many of us to exercise at home instead of in a gym.

Unsurprisingly, Moderna has also skyrocketed because of its involvement in developing a coronavirus vaccine — up 619%.

Zoom became a household name overnight when lockdowns began being imposed, with its stock racing up 495% year to date.

And of course, who could forget Tesla, which has stubbornly shrugged off any suggestion of a bubble and is now a member of the S&P 500? BTC’s gains pale in comparison to the 850% year-to-date gains TSLA has enjoyed this year.

Best Cointelegraph Features

China’s crypto landscape: How CBDCs drove blockchain adoption in 2020

As a developing tech power, China is one of the fastest countries in adopting blockchain technology.

Crypto’s loudest cheerleaders in 2020

Andrew Thurman takes a look back at the biggest names and the strongest voices that cheered crypto on throughout 2020.

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

Another day, another all-time high — Bitcoin hits $24,000 in weekend surge

On Dec. 18, 2017, Bitcoin hit an all-time high of $19,891.99. Years of price falls and drama followed. Nonetheless, believers remained confident that one day, one day, BTC would manage to crack $20,000.

And on Dec. 16, 2020, that day finally came. In quick succession, BTC smashed through $20,000, $21,000, $22,000 and $23,000, pausing for breath at $23,800. This stumbling block was eviscerated over the weekend when BTC headed above $24,000.

In an extraordinary run, Bitcoin’s price has surged by more than 25% in the space of a week, with Ether hitting yearly highs and altcoins such as Litecoin performing strongly, too.

On-chain analyst Willy Woo has proclaimed that $55,000 is the next landmark for Bitcoin to reach — asserting that $100,000 is a “ridiculously low” target. Meanwhile, Quantum Economics founder Mati Greenspan believes “things are just getting started.”

Early miners have been turned into millionaires, with the number of Bitcoin addresses holding at least $1 million surging by 150% this week. And for a time, anyone who had ever bought Bitcoin was officially in profit.

Bitcoin’s network fundamentals paint a very different picture to the 2017 bull run, but some things never change: as BTC surged beyond $20,000, both Binance and Coinbase suffered outages.

Bitcoin price can hit $25,000 before 2021 if this key support level holds

As the Lambo brochures land on doormats, with the moon in sight, what’s next?

Cointelegraph analyst Michaël van de Poppe says a drop to the $18,500 region in the short term shouldn’t be ruled out but adds there could be further room to run as price discovery continues.

He believes that $19,500 has now been turned into a critical level to hold. The next level of interest is found at $25,800, which could be the next marker for a potential top.

Van de Poppe wrote: “Such vertical rallies aren’t sustainable for long. Thus, a correction will occur at some point. However, predicting when it happens is anyone’s guess, as Bitcoin may easily run to $30,000 and then see a 30% correction.”

It’s also shaping up to be a “significant quarter” for altcoins. Historically, Bitcoin dominance tops out in December, and a strong quarter for smaller cryptocurrencies follows. The question now is if, and when, Bitcoin’s violent correction will occur.

The options market is pricing a potential Bitcoin rally to between $36,000 and $50,000, indicating many traders believe the surge will continue in 2021. A larger uptrend in the first half of 2021 would see BTC replicate the post-halving activity it saw in 2017.

“Now BTC has finally broken $20k, all bets are off,” crypto analyst and trader Cheds told Cointelegraph.

Bitcoin shortage as Wall Street FOMO turns Bitcoin whales into plankton

Institutions are now making mincemeat of whales — and they’re beginning to look like plankton. As long-term investors rush to offload Bitcoin at a profit, big firms are lining up to snap up their crypto en masse.

A shortage of BTC on exchanges, coupled with institutional buying at over-the-counter venues, has laid the foundation for a fight over the remaining supply. Price rises are the only logical solution.

“I’ll repeat… liquidity crisis incoming,” said Danny Scott, the CEO of U.K. exchange Coin Corner.

And there’s no sign of institutional activity slowing down, either, with some indicating that “there is going to be a generational allocation to this new asset class.”

Here’s the thing: Retail buyers aren’t even here. Twitter, Wikipedia and even Google search activity point to a world that’s unaware of Bitcoin’s surge. (That said, BTC has been getting increased coverage in newspapers — with my grandmother revealing she read about it over her morning cup of tea on Thursday.)

Tweets are only roughly where they were in January 2018; page views on Wikipedia are largely flat; and Google searches for “Bitcoin” have been less popular this week than they were in November.

BTC just doesn’t seem to have touched mainstream consciousness, and paradoxically, it seems many people are only prepared to buy crypto when it hits all-time highs.

The Coinbase IPO is coming, according to a SEC filing

One of crypto’s most-anticipated initial public offerings is now one step closer.

Coinbase has sent its draft registration for an IPO to the Securities and Exchange Commission. This is a big deal given how it’s one of the biggest names in crypto, with a reputation for working well with U.S. regulators.

According to the research company Messari, Coinbase could fetch a valuation of $28 billion if the IPO goes ahead. That’s a substantial rise compared with its most recent funding round in October 2018, which gave the company a price tag of $8 billion.

Reports suggest that Coinbase has approached Goldman Sachs to lead its IPO, but this is yet to be confirmed.

It’s here: Treasury proposes rule to monitor crypto going to self-hosted wallets

The Treasury has released its long-awaited proposal to restrict money services businesses, including U.S.-registered crypto exchanges, from dealing with self-hosted wallets.

Under the proposed rules, exchanges would have to verify “the identity of their customers if a counterparty uses an unhosted or otherwise covered wallet and the transaction is greater than $3,000.”

The Treasury has now given stakeholders 15 days to respond with their comments, and Coinbase CEO Brian Armstrong was among the first to express reservations about the rumored plan in November.

Several lawmakers have expressed opposition to the proposals, which could be regarded as an assault on the nature of peer-to-peer transactions. That said, the measures on the table are not as radical as some had feared they would be.

Analysts believe that the mooted restrictions won’t impact Bitcoin’s rally, arguing that the possibility of extra regulation has already been priced into the crypto market.

Winners and Losers

At the end of the week, Bitcoin is at $23,866.82, Ether at $663.73 and XRP at $0.58. The total market cap is at $674,326,311,469.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are SwissBorg, Elrond and Zilliqa. The top three altcoin losers of the week are Energy Web Token, Waves and Filecoin.

For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

Most Memorable Quotations

“All you had to do to be a millionaire today, is mine a *single* #Bitcoin block between 2009 and 2012. You had 210,000 chances to do so.”

Rafael Schultze-Kraft, Glassnode CTO

“One of Robinhood’s primary selling points was that it did not charge its customers trading commissions. In reality, however, ‘commission free’ trading at Robinhood came with a catch.”

The U.S. Securities and Exchange Commission

“We are not at the all-time-high juncture where the BTC Top Cap Model starts curving upwards. Let’s see how high she runs in 2021. $100k is a ridiculously low target at the current trajectory. $55k is the next landmark -> Bitcoin becomes a $1T macro asset bucket.”

Willy Woo, on-chain analyst

“I’ll repeat… liquidity crisis incoming.”

Danny Scott, Coin Corner

“$ETH has started its run every December the last 3 years with at least 100%+ ROI over the following months. What makes you think this year will be any different? #Ethereum to $1000+ within the next few months IMO.”

Altcoin Sherpa, crypto analyst

“Settle in, because we will be visiting the $20-$22K level at least half a dozen times before we break through to the $30K range later in 2021.”

Alex Mashinsky, Celsius Network CEO

“Sustained growth is likely from here, at least for the time being. We are being driven by corporations and billionaires now, not just retailers.”

Brandon Mintz, Bitcoin Depot CEO

“#Bitcoin just popped. Experienced some scaling issues. Should be fixed for now. Underestimated demand. Adding A LOT more ‘servers’ still.”

Changpeng Zhao, Binance CEO

“We have been waiting for this moment for years, and now that $BTC #Bitcoin has finally broken 20k, all bets are off.”

Cheds, crypto trader and analyst

“Glad I bought Bitcoin. Next stop $50k. Wall of institutional money coming 2021. Buy below $20k. If you missed Bitcoin, buy silver.”

Robert Kiyosaki, Rich Dad, Poor Dad author

“I would NEVER recommend anyone take out a personal loan to buy ETH or other ethereum assets.”

Vitalik Buterin, Ethereum co-founder

Prediction of the Week

DeVere CEO says Bitcoin will rise 50% and “possibly double” in 2021

There are oh so many predictions doing the rounds about what’s going to happen next.

DeVere Group CEO Nigel Green has proclaimed that Bitcoin will have another “record-breaking year” in 2021. 

Green believes prices will explode by 50% and hinted that they could even double. On this basis, he expects BTC to trade between $34,500 and $46,000 at some point next year.

Robert Kiyosaki — the bestselling author of Rich Dad, Poor Dad — has also thrown his hat into the prediction ring. “A wall of institutional money” is coming to Bitcoin in 2021, he said, setting a target of $50,000.

There’s one man who is relieved that one of his predictions finally came true. Back in April, Mike Novogratz warned he may “hang his spurs” if BTC failed to reach $20,000 in 2020. He’s since tweeted to say he’s “glad I don’t need to.”

FUD of the Week 

Shock survey suggests most investors think Bitcoin won’t top $50,000 by 2030

Unrelenting optimism over how Bitcoin will perform in 2021 doesn’t appear to be matched by everyday investors.

A Genesis Mining survey of 1,000 current and former U.S.-based Bitcoin investors suggests that just 17% believe BTC prices will exceed $50,000 in 10 years’ time. That’s despite the fact that this would only require an increase of 108% from current levels — with BTC surging by 230% year-to-date.

In total, 50.1% of those who took part in the poll believe that Bitcoin will be worth $20,000 or less by 2030; a third think it’ll be under $10,000; and a tenth fear prices will fall below $1,000.

Trading app Robinhood settles SEC charges for $65 million

Robinhood has staved off a lawsuit from the Securities and Exchange Commission by agreeing to pay $65 million.

The SEC had accused the trading app of deceiving users as to where its money was actually coming from between 2015 and 2018.

Regulators wrote: “One of Robinhood’s primary selling points was that it did not charge its customers trading commissions. In reality, however, ‘commission free’ trading at Robinhood came with a catch: Robinhood’s customers received inferior execution prices compared to what they would have received from Robinhood’s competitors.”

Speaking to Cointelegraph, the head of Robinhood’s legal team stressed that this is all in the past, explaining: “The settlement relates to historical practices that do not reflect Robinhood today.”

Unfortunately, Robinhood’s legal woes may not end here, with reports emerging that securities regulators in Massachusetts are weighing up whether to file a case against the company for subjecting inexperienced investors to “unnecessary trading risks.”

IRS tax form question leaves U.S. crypto users confused and concerned

Crypto users in the U.S. have been left confused and frustrated over the wording of a question about digital currencies on this year’s tax return form.

Form 1040 asks: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”

This question has now been placed much more prominently — near the top of the form. But here’s the problem: There’s a lack of explicit guidance on the definition of a “virtual currency.”

One crypto tax specialist has likened the question to a “perjury trap.”

Best Cointelegraph Features

How to build an exemplary crypto exchange

Building a crypto exchange can be a daunting process, but there’s one question that’s often overlooked: How do you build an excellent exchange? Cointelegraph Magazine takes a look. 

When will Ethereum 2.0 fully launch? Roadmap promises speed, but history says otherwise

What updates have been added, and how soon can they be implemented? Here’s Julia Magas.

Traditional crypto custodians ramp up security to accommodate institutional demand

Offline storage solutions are necessary for traditional custodians and banks supporting digital assets, as Rachel Wolfson explains.