We’re not having a great time in the cryptocurrencyA digital currency running on a blockchain and built with cryptography. Contrary to central-bank issued currency, cryptocurrency issuance rules are... markets for now. BitcoinBitcoin is the first decentralized digital currency. It was created in 2009, by an anonymous founder or group of founders... More (BTCAn abbreviation for Bitcoin.) lost its last support at $35k, decreasing by over 13% in the last week. Meanwhile, the whole crypto market erased 11% during the same period [CoinMarketCap]. Beyond Bitcoin, some currencies managed to avoid the crash, though. Among them, Monero (XMR) and Tron (TRX) stand out.
The main reason behind the recent Bitcoin crash seems to point to the recent interest rate decision by the U.S. Federal Reserve (Fed). They’re going to raise the interest rates by 0.5% —the higher adjustment in over two decades. Additionally, the global economy is also stumbling.
Inflation isn’t growing only in the United States, but also in Europe. The latter hit a record high for the sixth month in a row, with over 7.5% in April. China doesn’t have good news either. A new outbreak of COVID-19 and its subsequent quarantine might cause a global supply chain crisis.
On top of all of this, according to Meltem Demirors, Chief Strategy Officer at CoinShares, several governments may be looking to silently ban Proof-of-Work (PoW) mining —and thus, Bitcoin. They’d allege energy concerns, but perhaps the main reason would be to stop further decentralizationThe transfer of control from one central entity to numerous smaller entities. Generally, cryptocurrencies are decentralized. Every crypto transaction is.... A proposal to ban PoW coins was recently rejected in the European Union, indeed.
If the circumstances continue as currently, Bitcoin could crash to a low of $28,000 – $21,000 soon, as indicated by some expert traders. On the other hand, other experts believe there’s still one All-Time-High (ATH) ahead before a neutral market.
Bitcoin crashed, but Monero and Tron resist
Probably thanks to its new algorithmic stablecoin, Tron (TRX) increased by over 14% in the last week. The new Decentralized USD (USDD) is now live on this blockchainBlockchain is a type of database storing an immutable set of data, verifiable to anyone with access to it —through..., and it’ll be also available on Ethereum and BNB Chain via the BitTorrent network’s cross-chain protocol. As the announcement reads:
“USDD will be pegged to the underlying asset, TRX, and issued in a decentralized manner. When USDD’s price is lower than 1 USD, users and arbitrageurs can send 1 USDD to the system and receive 1 USD worth of TRX. When USDD’s price is higher than 1 USD, users and arbitrageurs can send 1 USD worth of TRX to the decentralized system and receive 1 USDD.”
Besides, the non-custodial exchanges Alfacash and Alfacash Store; and the payment processor ALFAcoins recently added this asset to their list. On the other hand, Monero gained around 7% in the last week. This privacy coin will have soon an update to apply a new feature: the “Tail Emission”.
The Tail Emission will ensure at least 0.6 XMR per blockA collection of cryptocurrency transactions. Every few minutes (or seconds, depending on the blockchain) one miner or validator verifies the... for the miners, independently of the usual transactionA cryptocurrency transaction is an entry on the blockchain ledger, noting sender, receiver and number of coins transacted. fees. That’s something done to secure the network in the future (when the mining rewards finish). The update also brings dynamic block sizes, in case of network congestion.
Wanna trade BTC, XMR, TRX, and other tokens? You can do it safely on Alfacash! We’re talking about this and a lot of other things on our social media.
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