The world of cryptocurrency is that of intrigue and excitement, and the market keeps changing trends faster than any other. The industry is constantly evolving reflecting the market trends, trader behavior, crypto prices, and likewise. Here we bring to you an update on what’s been happening in the realm of digital assets, with news of relevance in a nutshell. 

Bitcoin Surpassing Prominent Monetary Bases

With Bitcoin crossing $14,000 its market capitalization exceeded the monetary base of the Russian ruble, including both bank reserves and physical fiat currency. As the ruble fell, along with other significant fiat currencies, all eyes are now on the Canadian dollar, at BTC inches towards its $18000 target. 

Speculation regarding crossing the USD base might be just a matter of time. For BTC’s market cap to match the base monetary figure of the US, the price will have to exceed $263,000. It might seem a long haul now, but let’s not forget that the crypto has already surpassed fiat bases like the Swedish krona, South Korean won, Brazilian real, and recently the Russian ruble. 

Surpassing so many sovereign currencies is quite commendable for an 11 years old digital currency. According to the experts, it’s the global inflation that has depreciated the fiat currencies leading BTC to exceed several of them. 

42% Increase in Bitcoin’s Hash Power in 42 Hours

Bitcoin has experienced a 42 percent increase in hash power in just 2 days, indicating that a significant difficulty adjustment might not be far. The hash rate of BTC at the moment stands at 157.5 exahashes per second after momentarily crossing 160 exahashes per second. This comes after the coin suffered a sharp plunge in hash rate in October. 

The recent mining activity has led the experts to believe that the miners have completed their migration in Sichuan widely known as the Chinese mining hub. The Sichuan province has an abundance of cost-effective hydroelectric power that attracts more than 80 percent of the Chinese miners during the rainy season. As per a market survey, about 54% of the mining activity for Bitcoin happens through Sichuan.   

The sudden increase in the Bitcoin mining activity also indicates that the network will probably produce another difficulty adjustment. 

Can Crypto be more Profitable than Gold?

Over the past few months, a significant number of financial market leaders and experts have changed their attitude towards cryptocurrency. Some went on to even applaud Bitcoin for having the potential to store the value for the next generation, with many keeping the crypto even ahead of gold. 

Quite along the same line, a report was published by JPMorgan Chase stating and highlighting evidence of rising demand for Bitcoins, and a sudden shift from gold exchange-traded funds to cryptocurrencies by the investors. The global firm pointed out that the BTC and crypto demand has not only risen among younger retail investors but the institutional investors like asset managers as well.  

UK Drafts Regulations for Stable Coins

It has been declared by the Treasury Department of UK that it is working on regulating private stablecoins. Besides that, the ministry is also conducting research on central bank digital currencies as a potential alternative to fiat. The U.K. Treasury Chancellor, Rishi Sunak announced that the upcoming regulatory proposals will be followed by other policies concerning the UK’s financial sector. 

The announcement was made amid the post-Brexit trade deal negotiations between the UK and European Union. In his address, Chancellor Sunak mentioned that moving forward he is hopeful that the financial services sector of the UK will spearhead the global transition to new technologies like CBDCs and stablecoins. 

While details were not divulged, it is expected that the upcoming draft will need the stablecoin initiatives to adhere to likewise standards like the entities that are operating with other payment modes. The regulatory inferences of stablecoins became a major concern after it was announced that Facebook will be launching its digital currency Libra in 2019. Ever since that, the lawmakers in the country have been voicing for clear and stringent regulatory policies for private stablecoins, highlighting their concern regarding consumer security and monetary sovereignty.  

US Fed Economists Explore CBDC

The US Federal Reserve is busy exploring the intricacies of CBDC and its repercussions on the financial sector. It recently published a report on the matter with the title, “Central Bank Digital Currency: A Literature Review”. It is a complied research by Federal economists, where they have explored the potential and impact of the digital dollar on monetary policy and banking. 

The report explains how the emergence of central bank digital currencies would influence financial stability and consumer adoption. It, however, specifies that further research is needed on the subject of CBDC, especially its intrinsic attributes. 

CBDCs have been making headlines recently, with all the major economies exploring and researching on the topic, especially after the Bahamas launched the first-ever CBDC, their ‘Sand Dollar’. China is following up fast in the race for a digital Yuan sometime next year. 

With lots of interesting developments taking place around the realm of digital assets, the crypto industry is positive about the growing prominence of BTC and altcoins in 2021 as well. 

Leave a Reply

Your email address will not be published. Required fields are marked *

Download the Mobile Apps

Contact Us