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February 2021

Bitcoin Dominance at 70% | BTC Surges Amid Economic Uncertainty

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Bitcoin Price

Bitcoin Price

Bitcoin has always dominated the cryptocurrency market. But for the first time since December 2017—when Bitcoin was valued at $20k per coin—Bitcoin dominance is nearing 70%. It’s a significant indicator of the current sentiment surrounding the world’s largest digital asset.

It also leaves a sizeable question mark over the future of the hundreds of altcoins that comprise this market.

Bitcoin Dominance Rating

Bitcoin’s market cap of $217.91 billion now covers 69.93% of the total cryptocurrency market according to NewsBTC.

Comparatively, at its lowest in January 2018, after Bitcoin price plunged from its all-time high, Bitcoin dominance was roughly 36.68%.

But especially amid 2019’s tumultuous financial backdrop, Bitcoin has built its dominance once again as investors speculate on the importance of Bitcoin being a non-governed asset.

Bitcoin will Be Tested in 2019/2020

The global economy is in the midst of certain crises, and this has brought Bitcoin’s necessity into question. For example, the US-China trade war, capital control in China, economic sanctions on Iran and Turkey, as well as hyperinflation in Zimbabwe and Venezuela are all wreaking havoc on the stock markets.

And while this is going on, many mainstream financial firms and retailers are beginning to cater to the growing number of Bitcoin traders. So it seems that while the global economy faces escalating crises, Bitcoin is becoming a more desirable asset; most likely because it is self-governed.

It also helps the coin that is the pioneering cryptocurrency, has always held the most value, and therefore holds a lot of real-world potential.

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The Takeaway

It is also likely that Bitcoin dominance is growing simply because the value of the currency is. In the last week, Bitcoin surged more than 30% – from $9,371 to as high as $12,320. This latest bull run was spurred on, once again, by an economic downturn. As Trump imposed further tariffs on $300 billion worth of Chinese imports, the People’s Bank of China reduced the price of the Chinese Yuan to under $7 a unit. This is its lowest in the last eleven years.

But where Bitcoin is concerned, this turmoil only caused the cryptocurrency to surge as traders begin to value the coin’s non-sovereign status.

Featured Image: DepositPhotos © spaxiax

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Bitcoin Price | Brian Kelly Tells CNBC Watch for Rising Price

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Bitcoin enthusiast and crypto fund manager Brian Kelly has told CNBC that Bitcoin price could rise further in the coming months.

His prediction isn’t unfounded; there is an impending supply cut on the horizon and this should help to push prices higher.

Brian Kelly Predicts Bitcoin Price will Rise

In an interview on CNBC’s Fast Money program yesterday, May 21st, Kelly explained that “the halvening,” which is due to take place in 2020, will cut mining rewards in half.

As such, he expects miners to begin hoarding BTC if they aren’t already doing so. This increased demand should see Bitcoin price rise as the supply becomes lessened.

Further, the coin is being spurred on by increased industrial adoption and use in retail.

Kelly described the four-year cycle that leads up to “the halvening,” saying:

“You generally have a rally a year into it, and a year out of it. And so we’re just at the beginning of that stage […] a supply cut is generally bullish.”

The fund manager goes on to say that investors should dedicate between 1% to 5% of their portfolio to cryptocurrency while prices remain stagnated around the current levels of $7,900.

Brian Kelly Predictions

Kelly has been a guest on Fast Money several times where he has made predictions for the future of Bitcoin and cryptocurrency.

Recently, the crypto-analyst stated that an approval for a Bitcoin Exchange-traded fund (ETF) was most likely to come in February 2019. We are still waiting on that one, however.

Other analysts believe there are several reasons for BTC’s recent surge. One idea suggests the United States and China trade war could be a reason. Another impetus could be the increased adoption of the mainstream. For example, Ebay recently caused a stir when photos of its banners at the Consensus conference in New York, leaked onto the web.

Saying: “Virtual Currency. it’s happening on Ebay”, the banners made many believe that the e-retailing giant is about to enter the cryptocurrency space. Ebay has yet to confirm anything, however.

Featured Image: Deposit Photos/stevanovicigor

Polkadot Targets Onboarding Ethereum Ecosystem with Chainlink Oracles

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Polkadot

Polkadot

Polkadot is readying itself for its expected network launch after it announced its integration with Chainlink oracles on February 25. The progress made with the integrations is an indication of a systematic approach that will allow porting with Ethereum infrastructure.

Polkadot Announces Integrations of Chainlink Oracles

The integration of Chainlink oracles is vital in the creation of Polkadot’s decentralized finance and other smart contracts. Chainlink has finalized the preliminary integration on Kusama, which is a Polkadot canary network synonymous with a testnet.

Following the move, Polkadot developers will now be able to get access to external data through Chainlink oracles. This is important, and it will enable most of the more advanced features connected with smart contracts. The nature of the operation of oracles is through the transmission of real-world information to a blockchain in a form that a smart contact will understand and thus act on that data.

Currently, the most prominent use of oracles is for price feeds of crypto and other digital assets. For instance, MakerDo depends on the ETH/USD price feed to create a DAU stablecoin despite being a different and exclusive oracle.

Chainlink will integrate on Polkadot with a committed parachain, which refers to a blockchain chip that has personalized features. The other parachains on the interoperable network will access data from Chainlink chips to power dApps. The heterogeneous sharding approach will help solve most of the common blockchain problems, such as scalability, interoperability, and governance, as well as network security.

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Parity Seeks to Onboard Ethereum Ecosystem Developers

Parity Technologies was the lead developer behind Polkadot because of its unique structure. Gavin Wood, the co-founder of Parity, was also among the co-founders of Ethereum. The Parity Ethereum client is one of the company’s products used in connecting with peers and processing the blockchain.

In December last year, Parity indicated that it will stop the development of its client and spin-off to a decentralized autonomous organization. Parity and the Web3 foundation have been making moves to onboard Ethereum ecosystem developers to their network. The addition of Chainlink indicates that there is a way of porting over Ethereum infrastructure.

Featured image: DepositPhotos © nazarenko

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Ripple Shuns Securities Question | Dismisses XRP Lawsuit

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Ripple

Ripple

Over the past few years, XRP has grown into the third-biggest cryptocurrency by market cap, and much of the credit for that goes to the company Ripple. The company holds the highest number of XRP tokens, and as a result, its activities have a direct impact on the price of the token. Over the course of September, the San Francisco startup has come under a lot of pressure from the XRP community due to the high volume of tokens it’s been selling.

In a new development, the company has now decided to file a motion in order to dismiss a lawsuit that alleges that it violated securities law in the United States. The violation pertains to its act of selling XRP tokens.

Now What?

Many members of the XRP community have claimed that the token has performed poorly throughout the year because of the fact that Ripple had sold billions of tokens every quarter. The company’s Chief Executive Officer Brad Garlinghouse had earlier dismissed the allegations and stated that the sales were meant for further developing the XRP ecosystem. In its motion to dismiss the lawsuit, the company stated that the case had not been brought within three years of XRP having its initial coin offering. Hence, the statutes of limitations have expired.

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However, along with the standard legalese in the motion to dismiss, the company also stated that XRP is not a security and hence, purchasing it does not mean that an investor has entered into an investment contract. In the motion, the company stated, “Purchasing XRP is not an ‘investment’ in Ripple; there is no common enterprise between Ripple and XRP purchasers; there was no promise that Ripple would help generate profits for XRP holders, and the XRP Ledger is decentralized.” It is a telling point and one that could give Ripple a massive advantage if the lawsuit ever goes to trial.

Featured image: DepositPhotos © rastudio

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