This Week in Crypto – Bitcoin Halving, Exchange Outages, China Approves Blockchain

Bitcoin Nears Its Next Halving

The long-awaited event with BTC halving is so close. As for the latest block, the world is 99% way there. It will take everyone to unexplored territory, and BTC can be twice as rare as the real-world currency, which is being printed at unprecedented levels.

There has been much debate so far, about how Bitcoin will respond to this halving.

Strangely enough, Bitcoin’s RSI has never shown so much weakness before halving it. There are many warnings that Bitcoin’s halving may be “priced in” and the Crypto world may end up anti-climax or non-event as opposed to 2016.

BTC halving

On the other hand, signs indicate that institutional investors are observing BTC until it is halved.

The best cryptocurrency exchanges have analysts, who maintain that Bitcoin will decrease the closer it gets to May 12th, and then it will rebound to a high by September. It should be noted that Bitcoin inflation would end much less than in fiat currencies.

The main issue is the deflationary crisis, which leaves many verdicts as to whether low inflation is an attractive proposition for investors. Either way, there will be much more about it in the next few weeks.

LocalBitcoins Turning Things Around

LocalBitcoins that began back in 2012 has seen a rock start to the year. January saw it suspending accounts, and March saw the P2P Bitcoin sharing site hit a 7-year low.

It didn’t bode well for anyone reading a LocalBitcoins review at these times, as it would have been hammered.

However. Data from LocalBitcoins shows they are at an all-time high in Chile with trading against Fiat currency at over 330 million Chilean pesos.

It isn’t all an explosion in business as there is some influence by the depreciation of the peso in Chile. The country is experiencing some hardship, much like any other country, yet the economic impact appears to be hitting them harder.

No matter what the reason, there is a massive upturn in crypto activity; so many citizens are probably trying to find a good home for their hard-earned pesos until there is an end to their troubles.

China Approves Blockchain Projects

With all the struggles that crypto companies had to establish themselves in China, there is now a massive turnaround.

China has approved another 224 projects, all based on blockchain technologies. Currently, this is batch number three to pass the state censors.

Beijing is making around 40% of these applications. Companies involved are big name brands such as Walmart, who is intending to use the blockchain for food safety training.

Other companies are Baidu, Alibaba, Suning, China Merchants Bank, and others.

There has been lots of pushing since they are controlling the pandemic. The country aims to produce a sovereign blockchain where they can transition the yuan to a ledger of their own.

Once this development is underway, it won’t be too long before they introduce the best hardware wallet, yet the west may wonder is it sends information back to china?

Tencent and Huawei are two members of the newly formed National Blockchain Committee. Their duties determine standards for the countries industries.

The CBDC (Central Bank Digital Currency) will commence testing in four cities and implementing significant corporations such as McDonald’s and Starbucks.

Coinbase as BTC soared

Exchange Outages as Bitcoin Soars

There was a brief outage on Coinbase as BTC soared to just under $9,000. All services such as the mobile app, API, and the website all had technical difficulties and major outages, due to connection issues.

Kraken another popular exchange also reported some issues on their API; however, they said their platform was running normally by the end of the day. They were not suffering outages, rather just connectivity issues.

The primary concern is that Coin Base appears to suffer on days where there is volatile trading. The same thing happened 12 months ago when the site and the API fall over when there was a $2,000 fall in a span of 15 minutes.

The same thing was hitting users of this exchange in November. Issues are still there and again in March this year, with the Black Thursday crash. It was this time where BTC shed 20% of its value in half an hour.

Recent reports show the exchange was trading over $300 million in daily volume. These numbers are dwarfing the totals from the seven days previously.

One question hangs over the exchange. Will they suffer another outage at the halving time, and there is a possible surge, or will it happen before?

dForce Refunds $25M

Earlier in April, a hacker was successful in breaching the defenses of dForce and draining about 99% of all funds the company thought were locked in a short span of three hours.

A couple of days later, the hacker made a blunder and revealed his identity while creating a fund transfer. The loss up until that point was around $25 million. It was when he noticed his identity was revealed; he returned all the funds.

Mindao Yang, one of the dForce founders, stated in a recent blog post that the funds had been recaptured. They made this possible through collaborative efforts by law enforcement, the crypto community, investors, and the company’s partners.

Since the event, dForce has been working alongside a third party to put in place some risk management methodologies to help redistribute the funds to customers.
The company has also been actively working on its Asset Recovery System that enables transitions of assets back to users who use the MetaMask wallets.

At the time of writing dForce states that all users affected by this breach, have had all their funds reinstated. 90% of these were handed back in 24 hours.

All appears good with the firm, yet there is plenty of criticism from around the crypto and blockchain community.

Many claim dForce is just a copy of another platform ‘Compound,’ and they copied the code before making some alterations and claiming it was theirs.

Unfortunately, they didn’t run the changes through security audits, and thus the above issue occurred.

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