This Week in Crypto – Bitcoin Warning, Ethereum Killer, No Power for Crypto Miners

Bitcoin Warning from New ECB Boss

The European Central Bank looks like it will have a new boss. Christine Lagarde the best nominee has warned about the system shaking cryptocurrencies are causing. This could lead to changes in the way the ECB looks at Bitcoin and crypto on the whole.

This could spur adoption of cryptos, but she stated that nothing should shake the system to such a level that stability is lost. It may sound she is against crypto’s, but that is far from the truth and she is rather crypto friendly.

The major concern will be the introduction of Facebook and a cluster of Wall St Banks who are keen to enter the cryptocurrency arena. This will make it difficult for institutions such as the ECB to disregard or sideline the effect of crypto.

Do Bulls Fear a Recent Rally for Gold?

The Bitcoin price highs have led it to be termed the new gold, however, over the past few months; the old gold has seen a rally of its own.

There has been a significant amount of traffic where consumers are unloading expensive watches and their precious metals. This has stirred precious metal sellers into a hive of activity. Recently gold saw a spike in value, which is the highest since 2009.

Gold interest usually grows when the economy is slowing. The question is, will traders create a Bitcoin bubble by ditching the cryptocurrency in favor of the yellow metal? Skeptics still see no real value in Bitcoin, or that it is a store of value as it is claimed to be.

Gold on the other hand has both, but the true believers are heavily into BTC and won’t jump because of the increase in the value of gold. They have enough on their plate with the volatility of BTC itself, never mind outside influences.

All Time High of BTC Hash Rate

An all-time-high for the BTC hash rate was set on July 7, 2019. This previous record was broken back in June once 65.19 TH/s was reached. The higher the hash rate, the higher the amount of resources it takes for anyone to carry out a 51% attack. The network then becomes safe against this.

The downside being it takes more energy to carry out these operations, but Coinshares estimated that 78% of crypto mining (BTC mining in particular) is powered by renewable energy.

During the so-called crypto winter (September 2018), Cointelegraph reported it was a retrograde step for bitcoin networks when the hash rate dropped for the first time in history.
Adding to this, back in June the mining difficulty for BTC reached the highest ever, so there is increasing competition for block rewards between crypto miners.

The Ethereum Killer

While BTC sits on its own pedestal, the one crypto that many altcoins want to dethrone is the number two, Eth. Over the last few months, ETH has been under attack, and by its subtle nature, it has gone unnoticed.

The term Ethereum Killer is often self-applied by start-ups or over ambitious projects that see themselves leap frogging ETH. For the majority, none of this materializes, yet, the new attack comes from a very different area.

Binance, one of the major crypto exchanges is refusing to list new ETH token on their platform. There are cases where trading pairs have also been removed. Much of the focus is to entice any ETH projects to migrate across to Binance Chain rather than use the ETH blockchain.

All the evidence points to a distaste of ETH by Binance, although the founder and CEO denies anything of the sort and stated he wished to see both ETH and Binance grow together. The case is out on this one, but there is evidence there, or lack of showing for ETH on Binance. One thing that can be seen are the trading pair removals when one migrated to Binance Chain.
A prime example being Red Pulse Phoenix. Once it made the migration, the PHX/ETH trading pairs were removed.

Ethereum Wallet Fees Blown back

Generation Z Not Showing Any Crypto Interest

In the past week, a survey was released by Business Insider. Out of just under 2,000 US residents aged 13 to 21, they were asked their opinions on purchasing cryptocurrency in the coming six months.

A majority of over 50% said they wouldn’t consider purchasing in this time period. One thing of note is that this survey was conducted back in the end of the crypto winter, and a bull run began to today’s prices.

Some may take this report as an indication of the views of Generation Z. However, kids of these ages on the whole may not be in a position to contemplate a purchase of any crypto. Some of them may not even understand the concept of investments to that degree.

No Power for Crypto Miners

In June, headlines from Iran were that the government was cutting off the power to crypto (BTC) miners. The hash rate increased, but there is a reminder of the hold that officials have, and what they can do as influence against cryptocurrencies.

While there are signs that offer some encouragement, there are still notable obstacles to get over. Iran may be the latest to hold restrictions over the heads of miner, yet there are similar hurdles hovering over this side of the industry.

One other noticeable country this year is Russia where the use of Bitcoin for payments is illegal. There are also reports that miners of cryptocurrencies can face fines for taking part in this activity.

The longer it goes on, and the price and demand of electricity continues, there will more than likely be a few more places, which will either block mining, or endorse the operations with open arms.

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