Bitcoin is down slightly this week, holding just over $ 11,000. This rise in volatility, according to some experts, is only expected because we are nearing the end of some BTC futures and options. Other factors contributing to increased volatility are Bitcoin’s long consolidation phase and a significant level of resistance.
But what next? World leaders discussed the role of cryptocurrencies during the Great Reset, the period that followed the end of the pandemic and the reopening of the global economy. As some leaders search for a new breed of capitalism, the cryptocurrency industry hopes for more decentralization and more personal control.
This requires a greater appetite for cryptocurrencies. Bitcoin Capital is trying to make its contribution. The company launches an exchange-traded product that can fund up to fifteen digital currencies. altFins are trying to help, too. The cloud-based platform deploys an app that allows you to monetize across multiple exchanges. This step should make the trade more mature.
Even the SEC is trying to help, at least indirectly. The authority changed its definition of “accredited investor” to include “professional certificates, titles, diplomas or other credentials issued by an accredited educational institution.” Previously, classification required a million dollar fortune or steady income of at least $ 200,000 a year. The new name could help cryptocurrency traders.
However, it is possible that many Americans have already used cryptocurrencies. New IRS forms should clarify this. In the 2020 income tax forms, Americans are asked whether they received, sold, sent, exchanged, or bought “financial shares in virtual currency.” If the IRS takes encryption seriously, you know it has arrived.
However, the steps to expand the use of cryptocurrencies could be very late. Chris Larsen, co-founder and chairman of Ripple Corporation, has warned that US regulation will take a toll on the Cold War tech. The Chinese digital currency could replace the US dollar as the world’s reserve currency.
Other countries are already moving forward. Canadian restaurant chain Tahini’s decided to convert all cash reserves into Bitcoin. In India, the peer-to-peer market for cryptocurrencies has tripled since the start of the year. No wonder Binance has started a new hackathon in the country and is creating an accelerator for the nation’s decentralized financial ecosystem.
However, not all news is good. Miners in Central Mongolia must do without cheap electricity.
In Better News, Deepak Chopra talks about using blockchain to tackle mental health problems caused by Covid-19. An interesting simulation showed that Satoshi Nakamoto mined 1.1 million Bitcoins with one computer. It was a different time.