This Week in Crypto – Binance Number 1, Visa Wants a Crypto, BTC Death Spiral?

Binance Leaps to Number 1

One of the leading crypto market aggregators saw a turnaround in its methodology. With this came a sharp turnaround for the positioning of Binance in the rankings.

Around the time of last year, you could have seen our Binance review of its position to find it sat in the fourth position behind Bitfinex, Coinbase Pro, and Huobi Global.

However, things may not be as clear as it appears, and this jump may not be on the merits of Binance alone.

Binance Review

The jump in the ranking could be down to the changes in the algorithm, where there is more of a priority on web traffic above the ‘liquidity metric.’ CMC painstakingly developed this only, and what was to be the default ranking.

However, with the purchase of CoinMarketCap by Binance, there is no chance the CMC developed metric will be used.

Binance purchased the ranking company, and found their ranking climbs three positions? Is
it coincidence, or is there more to it, and the two are still run as separate companies?

Visa Wants a Crypto

The announcement is Visa has filed a patent application. It intends to create a digital coin mounted on the back of the Ethereum Blockchain.

The May 14 application states that the application was filed in November 2018 with the U.S. Patent and Trademark Office.

It mentions the Ethereum as a potential network. It details two records, the first indicating a digital currency for the amount linked to the denomination created for a public key linked to a digital wallet. On the other hand, the request states the withdrawal of physical currency from the FIAT system.

The application outlines a centralized approach to preserving the value of stablecoin. So here, each time a dollar of digital FIAT currency is generated, the central entity ensures that an actual dollar note is withdrawn from circulation, thus helping to regulate the value of digital FIAT currency.

Trezor Wallet for Crypto Funds

Coinbase has since announced it has become a leading Visa member. This enables the exchange to issue debit cards with cryptographic funds. Now it’s time to see if they make their Visa portfolio or choose an industry leader like the Trezor wallet?

Coinbase Thinks BTC is a Gateway to Altcoins

Following research into top cryptocurrency exchanges such as Coinbase. Bitcoin serves as a gateway to alternative currencies, with just 24 percent of investors holding this is their primary investment.

Their research findings show 60 percent of BTC users make this their first purchase of cryptocurrencies, while only 24 percent of investors remain loyal to Bitcoin. Investors seem to consider altcoins in bull runs, as when Bitcoin saw its market dominance drop below 30 percent on Coinbase in 2017.

At one point, Ethereum was dominant on the platform, with about 50 percent of the trading volume.

The reasons may be several, with one of the main ones being mainly psychological. As individuals feel confident about crypto investments like BTC, they branch out in search of other possible winners.

Others also see Bitcoin as a sort of ‘gateway drug’ to numerous other cryptos in the past.

Bloomberg Markets, Ryan Selkis hints that Facebook’s Libra may be in the same position as a ‘gateway drug’ for other investors and leads them to Bitcoin.

Is BTC, in a Death Spiral as Suggested?

Does a slow Bitcoin network support the ‘spiral of death’ scenario depicted by a V.C.? Maybe the signs of the cryptographic apocalypse are upon us, with BTC transaction rates peaking, the time to create blocks increasing, and congestion in the mempool.

It’s all been in the prediction of Zach Resnick, a managing partner at Unbounded Capital.

On May 8, Resnick spoke with Cointelegraph and laid out his thoughts on the spiral of scenic death and its effects being underestimated.

He went on to say that there is perhaps only a small percentage of chance that Bitcoin will be halved by killing the chain altogether. However, there was talk that the effects have zero chance of doing any severe damage.

During the halving, the reward is reduced, and a large number of miners decide to leave the network. Because of this, the hash rate of the network falls, and the blocking time increases, causing congestion.

The result of this is that the BTC becomes less attractive, as users do not want to wait for their transactions to be processed.

The price of Bitcoin can fall, and this again drives miners away. Once this happens, you’re on catch 22, and it spirals slowly until there’s nothing left.

The hash rate went down, the blocking time intervals went up, and more transactions were waiting to be processed in the mempool.

It does, although it’s still unlikely that a slow Bitcoin network will lead to its ultimate demise.

Bitcoin Casinos

Bitcoin Betting Big for Casinos?

Bitcoin is rapidly emerging as one of the high-level payment systems in use by various online casinos.

While the legal implications of spending Bitcoin every day and using it as currency are often debated, many casinos online have no problem in accepting it as payment from clients.

Nevertheless, a growing number of casino players are wary of gambling in Bitcoin casinos, as some have no official license.

The big shot online casino sites, in their attempts to outdo the competition and be the best Bitcoin casinos offering more than just betting with crypto, these sites come with much-respected licenses.

As Bitcoin casinos gain popularity and become more secure every day, depositing and playing using cryptocurrency is something players ought to consider trying. Many casinos want you to play with U.S. dollars. Therefore, here’s the thing:

You deposit Bitcoins, yet while you’re playing, the Bitcoins convert to U.S. dollars. However, when you wish to withdraw all your winnings, the dollars will switch back to their Bitcoin equivalent.

Some smaller casinos charge extra miner’s fees to process your transaction quickly and withdraw your winnings.

When it comes to withdrawals, the larger casinos offer the fastest Bitcoin payout anywhere in online casinos. Next, for players in countries where they prohibit online gambling, Bitcoin payouts provide a form of incognito banking.

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