So, what’s going on in the Ethereum world? Lots of exciting things! On the cryptocurrency front, this week saw the launch of the first phase of the Casper update, the first phase of which is not expected to be fully deployed until November 2018, and which will drive the transformation of Ethereum into a “proof-of-stake” platform.
A long time ago, Ethereum raised the gas limit on its network. This made it more difficult to attack the network and easier to run smart contracts. This was a good thing, but it lulled people into a false sense of security. This week, Ethereum lowered the gas limit again. When the dust settles, this will be seen as a step backward.
Since the Bitcoin hard fork in August of last year, the community has seen a huge amount of volatility in the price of Bitcoin. This week, Ethereum developers continue to work on their own hard fork implementation for the Ethereum blockchain, and a core developer has left the Ethereum foundation due to disputes with its leadership.. Read more about worst months for bitcoin and let us know what you think.
Every Saturday, Hodler’s Digest will keep you up to date on all of the major news stories from the previous week. A week on Cointelegraph in one link: the greatest (and worse) comments, adoption and regulatory highlights, top currencies, forecasts, and much more.
This Week’s Top Stories
In a $29 billion transaction, Square will buy Australian startup Afterpay.
This week, Jack Dorsey’s digital payments company Square agreed to acquire Australian buy now, pay later (BNPL) startup Afterpay for $29 billion in shares.
Square will basically be purchasing the company now and paying later, as the name suggests, with the transaction scheduled for the first quarter of 2022 and to be paid completely in Square common shares.
Anthony Pompliano, a proponent of Bitcoin (BTC), was delighted with the announcement, stating on his online series The Best Business Show that Square is one of the few companies he owns, predicting that the company’s value will skyrocket after the purchase.
In an Aug. 3 YouTube video, Pomp went for sheer and utter clickbait with the title “SQUARE is going to be worth 1 TRILLION dollars,” and he emphasized the potential of rolling out Afterpay’s BNPL services to 70 million Cash App users and 2 million Square merchants.
The hard fork for Ethereum London has gone live.
On Aug. 5, the London hard fork took place nearly on time, ushering in Ethereum Improvement Proposal 1559. The upgrade also brought in some optimistic emotions from Ethereum (ETH) supporters and some sour grapes from Bitcoin maxis, which is a fascinating aspect.
Ethereum has switched from a bidding-based fee market to a fixed price-and-burn system, which may cause deflation if more ETH is burnt in block rewards than is supplied. However, with ETH 2.0’s move to proof-of-stake, this may become more probable. If the asset becomes deflationary, it will achieve the status of “ultrasound money,” a phrase that has been a long-running joke among ETH forums, mocking Bitcoiners’ definition of BTC as sound money owing to its limited quantity of 21 million units.
NEWS FLASH: The White House has confirmed its support for modest modifications to the proposed crypto tax.
The White House has formally endorsed a last-minute change to the contentious US infrastructure plan that includes a $28 billion increase in bitcoin taxes. The change keeps blockchain developers and validators subject to strict reporting requirements while exempting miners.
However, because of the amendment’s ambiguous language and lack of precisely defined terminology, crypto developers and proof-of-stake validators may still be liable to increased reporting and taxes, which some have deemed “unworkable.”
Members of the White House seem to be keen on clamping down on crypto tax avoidance despite a lack of knowledge of the industry’s intricacies. They also seem to be blind to the system’s obvious rorting by multinational corporations that effectively drain money from people’s wallets while paying no taxes.
Mike Novogratz criticizes US authorities for their lack of understanding of the crypto sector.
In the face of impending crypto rules that will almost certainly raise taxes and reduce earnings, Galaxy Digital CEO Mike Novogratz has reacted angrily to Senator Elizabeth Warren’s comments that bitcoin is the “wild west” of the US financial system.
Most of Novogratz’s barbs were delivered through social media, with the billionaire crypto proponent going to Twitter on Aug. 3 to claim that most US politicians have no clue what they’re talking about when it comes to crypto:
“Crypto is the future of our financial system, and our people deserve leaders who take the time to learn about it. The majority of our leaders have yet to do so. We also need regulators and politicians who recognize that new ideas require space to develop.”
USDC payments based on usernames will be introduced by Circle and Unstoppable Domains.
To help the not-so-tech-savvy, a.k.a. beginners and boomers, Circle and Unstoppable Domains are collaborating to offer username-based addresses as an alternative to long-winded alphanumeric crypto wallet addresses.
Unstoppable Domains, a blockchain domain name supplier, and Circle, a stablecoin issuer, announced on Aug. 4 that they would collaborate to provide readable “.coin” identities for USD Coin (USDC) transactions.
Both businesses will cooperate as part of the agreement to allow support for.coin username extensions across wallets and crypto exchanges that offer the second-ranked stablecoin.
USDC transfers will be treated similarly to sending an email under this arrangement, removing the risk of sending coins to the incorrect address, losing money for good, and dealing with the consequences of one’s lack of vigilance.
Losers and Winners
Bitcoin is at $42,651, Ether is at $2,867, and XRP is at $0.74 at the conclusion of the week. According to CoinMarketCap, the entire market cap is $1.73 trillion.
The top three altcoin gainers of the week are Voyager Token (VGX) with a gain of 94.22 percent, THORChain (RUNE) with a gain of 50.69 percent, and Ravencoin (RVN) with a gain of 44.13 percent among the top 100 cryptocurrencies.
Amp (AMP), XinFin Network (XDC), and Telcoin (TEL) are the top three cryptocurrency losses this week, with -14.97 percent, -4.74 percent, and -1.66 percent, respectively.
Read Cointelegraph’s market analysis for more information on crypto pricing.
The Most Memorable Quotes
“Bitcoin is visible on the financial statements of cities, states, governments, businesses, and small [and] large investors.”
MicroStrategy CEO Michael Saylor
“We’re now heading towards a future where we have nonfungible software objects with distinct identities that can take money, pay money, and engage in governance, whether in decentralized autonomous organizations or possibly other types of self-governing governments.”
ConsenSys founder and CEO Joe Lubin
“Everything from regulation to licensing and everything in between takes about five hours of my day.”
CEO of FTX, Sam Bankman-Fried
“Crypto assets are mostly used as digital, scarce vehicles for speculative investment. As a result, they may be considered extremely speculative repositories of value.”
Chairman of the Securities and Exchange Commission of the United States, Gary Gensler
“Crypto reminds me of the blind men and the elephant story. It is touched from several angles. They get engrossed, swept away, and stimulated by these many topics.”
Andreessen Horowitz general partner and co-founder Marc Andreessen
“If you placed a pistol to my head and told me I could only have one, I’d pick gold.”
Hedge fund manager Ray Dalio is a billionaire.
“Just to be clear, the SEC has no jurisdiction over pure commodities or their trading platforms, whether they be wheat, gold, oil, or #crypto assets.”
Commissioner of the Commodity Futures Trading Commission of the United States, Brian Quintenz
“The more individuals who own stablecoins, the more people who can take part in decentralized finance.”
CEO of Unstoppable Domains, Matthew Gould
The Week’s Prediction
By September, the Bitcoin chart fractal predicts that the price will have risen to at least $80,000.
Bitcoiners may soon be able to drive their lambos on the moon if this newest optimistic BTC forecast comes true.
On Aug. 1, an independent market analyst, Nunya Bizniz, made an optimistic forecast, pointing out that the recent rise of approximately 40% in late July featured 10 straight days of beautiful green candles, rather than the dreaded red candles that bears like.
Each of BTC’s past 10-day bull runs concluded with a price rise of at least 100 percent within 30 to 60 days, according to the expert. As a result, if history repeats itself, Bitcoin’s price may double and reach new all-time highs around $80,000.
The Week’s FUD
According to reports, a South Korean regulator is planning to shut down 11 cryptocurrency exchanges.
Following reports this week that South Korea’s main financial regulator, the Financial Services Commission, or FSC, is preparing to shut down a dozen local cryptocurrency exchanges due to fraud allegations, crypto rules in the country may become more strict.
According to local media sources, the FSC would shut down at least 11 mid-sized crypto exchanges in South Korea owing to suspected unlawful activity and fake group accounts.
According to the newspaper, unnamed industry insiders say that the names of the exchanges have not yet been revealed, thus Koreans will have no idea what to FUD about until the names are revealed. According to the reports, the listed crypto exchanges will be unable to get FSC permission for operation.
The government is also preparing to impose tougher rules for smaller crypto exchanges in South Korea, meaning that any company that wants to engage in unlawful activity would have to do so on a big scale, according to the article.
Monero’s previous maintainer has been jailed in the United States on unrelated charges.
Riccardo Spagni, the former manager of the Monero (XMR) cryptocurrency, was arrested last month in Nashville, Tennessee, although not for any cryptocurrency-related offenses.
Spagni is accused of committing fraud between 2009 and 2011 while working as an information technology manager for a business called Cape Cookies in South Africa.
Spagni is accused of forging extra invoices from a Cape Cookies supplier, which contained exaggerated pricing for products and services as well as his bank information rather than the vendors’. He will now be subject to a hearing on Aug. 5 to decide whether he will be kept in custody awaiting trial. He risks a maximum sentence of 20 years in jail if convicted in South Africa.
BSV allegedly suffers a ‘massive’ 51 percent attack, according to reports.
On Aug. 3, Bitcoin SV was allegedly subjected to a “massive” 51 percent assault, with up to three copies of the chain being mined at the same time.
Lucas Nuzzi, a network data product manager at Coin Metrics, commented on the assault on Twitter, saying that “someone is really attempting to destroy BSV,” and adding that:
“Attackers were able to seize control of the chain for more than three hours. During that period, any exchangers that accepted BSV deposits may have been twice spent.”
Cointelegraph’s Best Features
Is BlockFi’s regulatory wrath a precursor to crypto lending regulations?
BlockFi, the crypto lending behemoth, is being scrutinized by a number of states in the United States ahead of a planned public offering.
Miami introduces its own digital coin, combining civic participation with cryptocurrency.
MiamiCoin is a decentralized program that may be used as a developer platform for cities, rather than simply a coin.
Are you ready to go? Amazon’s Bitcoin adoption may pave the way for a payment future.
Amazon has rejected rumors that it would begin accepting Bitcoin payments soon, but it seems that the internet titans will eventually embrace the token economy.
On July 1, the Ethereum blockchain underwent an upgrade that ushered in a new era of security for the network. The hard fork, which was live for a few hours before being rolled back, introduced Casper, a new consensus algorithm to secure the network, and a new state transition called “replay attacks,” which are when a node may be duped into accepting an invalid state transition of the blockchain. In addition, a new set of guidelines for Ethereum developers and new features for the wallet software have been implemented.. Read more about how low will btc drop and let us know what you think.
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