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September 2010

Tether (USDT) Surpasses Bitcoin for Exchange Activity

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Tether

Tether

Tether (USDT) popularity has hit an all-time high in the cryptocurrency sector. The stablecoin is now the most traded virtual currency, accounting for 32% of trading activities in crypto exchanges. Bitcoin (BTC) held the mantle due to the multiple base pairs in use but not anymore. BTC currently accounts for about 30% of exchange activity.

Growing Tether Popularity

Increased exchange activity follows many altcoins acquiring a USDT market, a development that has continued to boost the flow of the stablecoin in exchanges. As it stands, Tether is the fastest growing cryptocurrency in terms of usage.

Tether’s market share has already clocked highs of 24% from 15% as of last year. The fact that its trading has surpassed that of Bitcoin all but underscores its acceptance in the burgeoning sector. Tether’s popularity has continued to increase given its ability to make it easy for traders to move money in and out of other cryptocurrencies.

The pegging of Tether on the USD means traders do not have to exchange their crypto holdings to dollars with each trade. Crypto exchanges are also increasingly using the token to transfer funds in between them.

Increased Supply

Tether popularity and increased usage also stem from an increase in total supply. The number of USDT coins has already surpassed the 4 billion mark seen as one of the catalysts behind increased usage. In addition, diversification in the way new coins come into being has also had a hand in fuelling the coin’s market activity. Minting of the coin can now be done through Ethereum, EOS, and TRON, in addition to using Bitcoin Omni layer.

>> Bitcoin Extends Sell-Off as Facebook’s Libra Uncertainty Lingers

The company behind the stablecoin is in the process of launching a fifth blockchain. With the addition of the blockchain, users will be able to use the stablecoin on Algorand and EOS, as well as TRON and Omni.

“Extending Tether into the Algorand ecosystem is a fantastic opportunity for us to further contribute to blockchain interoperability and collaboration. We are very excited about the potential this enables for other projects in the decentralized ecosystem, and we eagerly await working closely with many of them in the future,” said Tether CTO Paolo Ardoino.

Featured image: DepositPhotos © iqoncept

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Bitcoin Cash (BCH) Climbs Higher After Halving Event

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Bitcoin cash

Bitcoin cash

One of the most crucial events in the lifetime of most cryptocurrencies is its halving event. Bitcoin Cash (BCH) had its much-anticipated halving on Wednesday. BCH had its first block reward halving yesterday, and the event resulted in a rally in the cryptocurrency. After the halving, BCH soared by 15% over the past 24 hours, and it will likely be in focus over the course of the coming days.

Is Halving a Bullish Sign?

A halving measure generally involves providing miners with half the rewards they used to get for mining one block. In theory, it should lessen the number of tokens in circulation in the long-term. That often leads to the rise in the price of tokens that were halved.

During the same period, Bitcoin SV managed to record gains of 19.4%, so it could be worthwhile for traders and digital asset investors to keep an eye on. BCH experienced a rapid surge, climbing from $249.23 per token to $277.22 per token in the last 24 hours.

However, the halving may not be particularly great news for Bitcoin Cash miners. It should be noted that BCH is the fifth biggest cryptocurrency in the world by market cap, and the rewards are considerable for the miners. However, the reduction of the block rewards by half could hit miners particularly hard.

>> Ethereum (ETH) Gains Momentum Ahead of ETH 2.0 Upgrade

The halving of the rewards will eventually result in gross margins dropping to almost zero once other costs are factored in. This is a situation that is certainly going to be in the minds of traders and investors as they go about figuring out the Bitcoin Cash halving. It remains to be seen how the miners react to the news.

What do you think about the Bitcoin Cash halving? Do you agree with the process?

Featured image: DepositPhotos © amanalang

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Coronavirus Outbreak Tests Bitcoin Safe Haven Status

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Bitcoin

Bitcoin

Bitcoin (BTC) has spent much of the last week in freefall, sinking to a low of $8,520, just as the Coronavirus outbreak prompts widespread panic in the financial world due to its potentially cataclysmic impact on the global economy. This negative correlation between a global crisis and the value of the world’s largest cryptocurrency is fuelling doubts that Bitcoin may not actually be a safe haven asset, as previously thought.

A safe haven asset is an investment that investors turn to during times of market volatility and instability, in order to “weather the storm,” and are typically immune to market volatility or may even perform better. For example, gold is the archetypal safe-haven asset as it is a physical commodity, cannot be printed like money, and its value is not impacted by interest rate decisions made by a government. Bitcoin had recently been viewed as a possible safe-haven asset as its value has increased in times when the global economy looks vulnerable.

However, Bitcoin has seen about 15% of its value wiped out since February 11, just as COVID-19 began spreading outside of China, raising questions as to whether it can be considered a safe haven or not.“Bitcoin has been uncorrelated to other asset classes,” said crypto analyst at Coinist Research, Luke Martin. “If stocks drop, this does not mean bitcoin has to pump. If gold prices climb, this does not mean bitcoin will rise with it every time.”

>> Class-Action Lawsuit Threatens Ripple’s Established Market

The negative correlation between the value of Bitcoin and the outbreak of the Coronavirus indicates that crypto speculators have returned to assessing BTC based on its own metrics, given that its value isn’t derived from the same indicators as fiat currencies, like interest rates and GDP. Instead, Bitcoin is driven purely by demand, which is why it often remains steady while other markets look fragile.

Bitcoin’s current value is US$8,790.

Featured Image: DepositPhotos © spaxiax

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Assembly Bill 953 | New Legislation Combines Weed and Stablecoins

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Assembly Bill 953

Assembly Bill 953

Lawmakers in California have introduced a new bill geared towards cannabis companies. Assembly Bill 953 was introduced on February 21st. This new piece of legislation would allow cannabis-related businesses to pay taxes and fees in digital currency—more specifically, in stablecoins.

Assembly Bill 953

If passed, Assembly Bill 953 would allow all California-based tax offices (state, city, and county) to accept stablecoins as a form of payment. Cannabis companies would be able to pay their cultivation taxes with stablecoins. At this time, a specific stablecoin has not been identified, and it remains unknown if all forms of stablecoins will be accepted.

Assembly Bill 953 wouldn’t go into effect until January 1st, 2020, if it is approved at all.

Currently, the state of California imposes a 15% state excise tax on cannabis and cannabis products. Because of this, cannabis companies tend to owe quite high taxes.

Another issue many cannabis businesses have run into is securing simple financing services from banks. There are a few states that have legalized the use of recreational cannabis, but it is deemed illegal under federal law. Most banks are secured by the Federal Deposit Insurance Corporation (FDIC) and won’t finance ‘illegal’ activity.

>> TRON VibraVid: John McAfee Gets Behind TRON’s Upcoming Platform

Due to this, cannabis companies hold hundreds of thousands of dollars in cash at any given time. Assembly Bill 953 is not geared towards boosting cryptocurrency or the legitimacy of stablecoins, but more to reduce the vast majority of cash that gets flooded into the tax offices across the state.

California’s State Treasurer, Fina Ma, recently testified in front of the US House Committee regarding the amounts of cash collected. Ma said:

“Duffel bags and sometimes suitcases of cash would arrive quarterly at some of our designated offices and some business owners had to drive 350 miles to pay their taxes.”

It remains unknown at this time when Assembly Bill 953 could be approved.

Featured Image: Pixabay

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