There has been a lot going on in the crypto world since last week. Firstly the world’s largest cryptocurrency, Bitcoin has seen a price high and has gone above US$ 12,000.
In the first two quarters of the year, impacts of the pandemic were also prominent upon Bitcoin. It went low as US$ 6,000 in the first quarter of this year but regained its momentum gradually.
As per the latest news, Bitcoin’s current price range is over US$ 12K and is being traded for US$ 12,058. In two days alone, the legendary digital currency crossed two price barriers. Firstly it went over US$ 11,500 and the next day it crossed the US$ 12K barrier.
Technicians and experts are taking present conditions as Bullish indicators for Bitcoin. They are of the view that Bitcoin will keep on gaining highs in the future as well.
On the other hand, Ethereum, which is the second-largest cryptocurrency of the world, hasn’t been able to contribute much. Its blockchain network is the largest where the number of active users cannot be compared with none. It also relies heavily upon the fee it charges for the execution of transactions. However, since yesterday, Ethereum’s fee rate has gone down considerably.
A representative of Ethereum also confirmed that the fee has gone low as of July 2020.
CoinDesk suggested that Decentralized Finance (DeFi) had helped Ethereum phenomenally for a long time. However, currently, it seems that there is a decline in the use of DeFi. Experts and analysts are of the view that the reason for this reduction is more likely the Bitcoin.
Bitcoin is going up and up and continuously making headlines, said technicians. They said therefore more and more people are returning to Bitcoin. This is the reason that the reduction in DeFi frenzy is prominent, they said.
But one cannot be certain in the crypto world. For instance, China recently conducted a pilot test of its digital Yuan successfully but hasn’t decided to officially launch it. IMF also convened a meeting of Central Banks of the World in which US’s Jerome Powell was also present. He was asked about the US launching of its own CBDC. He however told that currently, the US hasn’t arrived at any final conclusion. There are still which require consideration and before that US will not be launching its CBDC.
In between this, the Government of Bahama yesterday announced officially of the launch of its digital dollar Sands Dollar. Hearing this, the Bank of Canada said that other countries would also need to develop CBDC on an emergent basis.
Currently, China and Sweden are two countries that are in the final phases of launching their official CBDCs. Both of them have also conducted successful tests.
But countries such as the US, Russia, and Europe are still in the process of developing and haven’t done any tests.