Bitcoin and the Crypto market took a downturn this week, as BTC briefly dropped below $30,000 and then quickly found support. While this was a seemingly timely cool-off for an extremely bullish market, it left many wondering where we stand in the big picture of crypto.
The sell-off was contributed, in part, to a viral misunderstood story that Bitcoin was subject to a double-spend incident. People thought a Bitcoin transaction was counted on two different blocks, thus duplicating the $21 Bitcoin transaction and creating $42 on the network in two separate wallets. The double-spend problem is one of the primary use cases blockchain solves, as the network confirms transactions that can’t be duplicated or reversed.
This false news spread like wildfire, leaving some to question the integrity of the network.
What actually happened is that the same coins from the same wallet were registered in two different blocks during a typical split in Bitcoin’s blockchain. Only one of the transactions was recorded in the ledger’s history (Coindesk). There was no blip in the system, and the positive news is that Bitcoin has been operating seamlessly, 24/7, for 10-years+.
On Tuesday, the newly-appointed Treasury Secretary, Janet Yellen’s, comments on crypto also spooked the market this week, suggesting lawmakers "curtail" the use of Bitcoin amid terrorism concerns. Yellen said cryptocurrency transactions were used "mainly for illicit financing." She also mentioned considering the possibility of taxing unrealized capital gains.
By Thursday, we had a more nuanced and re-assuring commentary from Yellen. “I think we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and illegal activities,” she wrote. “If confirmed, I intend to work closely with the Federal Reserve Board and the other federal banking and securities regulators on how to implement an effective regulatory framework for these and other fintech innovations.” (CoinDesk.)
To add to the positive news from the newly inaugurated Biden Administration, the FinCEN regulation on proposed crypto wallet regulations was frozen for the time being. This ruling was not sensible, seemed rushed, and is now being re-evaluated (CoinTelegraph).
And to cap off the wild week in crypto, the largest fund manager in the world, Blackrock, who manages $7.8 Trillion in assets under management, gave two of its funds the go-ahead to invest in Bitcoin (DeCrypt).
While the crypto market did take a tumble, it has quickly bounced back. It’s clear that better regulations on crypto are coming, and institutions are still arriving in the blossoming marketplace. While the volatility in crypto is alive and well, so is its bright fintech future.
Top Market Movers:
- Enjin (ENJ) +125%
- Hedera Hashgraph (HBAR) +81%
- Decentraland (MANA) +50%
- Celo (CELO) +45%
Two New Coins Live On Voyager: Elrond & Terra
With the additions of Elrond (EGLD) & Terra (LUNA), you can now buy & trade 56 coins on the Voyager app!
Terra (LUNA) is “a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.” Terra LUNA is a next-generation smart contract platform & programmable money for the internet. Its platform supports stablecoins that offer instant settlements, low fees, and seamless cross-border exchange. The Terra Protocol runs on a Proof of Stake (PoS) blockchain and is backed by its cryptocurrency LUNA. Miners stake LUNA to mine Terra transactions and power the Terra network.
Elrond (EGLD) is “a highly scalable, fast and secure blockchain platform for distributed apps, enterprise use cases and the new internet economy.” In other words, Elrond is a blockchain protocol that aims to provide extremely fast transaction speeds by using sharding. This includes fintech, DeFi, and the Internet of Things. The unique thing about Elrond and its primary selling point is its high scalability.
Download the Voyager app now and start our new coins today!
ICYMI: CEO Steve Ehrlich Presents Voyager Digital at NobleCon17 Investor Conference
On Wednesday, 1/20, CEO Steve Ehrlich presented Voyager Digital to potential investors at the NobleCon17 Investor Conference.
He spoke about how Voyager is the fastest growing digital asset broker in North America and covered why the Voyager app is crypto made simple, our interest program, our smart order router system, and much more!
Click here to watch the presentation now!
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