Bitcoin and Ethereum Heavily Hit Resulting in Market Crash
Cryptocurrencies volatility is not something new in the crypto industry. But this certain character could sometimes blow up resulting in a massive loss due to a market crash. BTC (bitcoin) and ETH (ethereum), two of the most dominant cryptocurrencies have been heavily hit which have caused the recent market crash. When these digital assets plummet, it’s almost inevitable that the other major altcoins follow.
For the case of BTC (bitcoin), there are 3 reasons for the recent price plunge. Due to the intensive crackdown of China against cryptocurrency activities including bitcoin, there has been a massive exodus of miners to crypto-friendly countries like Kazakhstan. The country is now the world’s second-largest bitcoin mining hub but is now in chaos due to social unrest. To counter this, the authorities have shut down the internet services across the country which resulted in bitcoin’s hashrate plunging. As of writing, the bitcoin hashrate is now at 174 EH/s down by 14.5% from its previous all-time high of 203.5 EH/s on Jan. 2.
On Jan. 5, the U.S. Federal Reserve has made an announcement that its plan of raising interest rates and halting printing money will be implemented by mid-March. BTC (bitcoin) along with the industry’s market cap plunged by 6% as a result.
Also, the supposed verdict on Jan. 4 of the United States Securities and Exchange Commission on the approval or rejection of a Bitcoin spot ETF application by the New York Digital Investment Group (NYDIG) was moved to a later date on March 16 this year.
ETH (ethereum), the second most dominant cryptocurrency is now heavily under threat by so-called “ETH killers” like Polkadot, Avalanche, Solana, and Terra. On Jan. 5, a team of analysts at investment bank JP Morgan and a report by crypto investment firm Electric Capital stated that Ethereum will soon be replaced by its competitors due to superiority in issues of scalability and that they offer lower gas fees compared to the blockchain.
In recent data by Crypto.co, BTC (bitcoin) is now at $ 41,673 while ETH (ethereum)is now at $ 3,106 and has both plummeted in a 24-hr chart. 2021 started with a big bang as a result of a bitcoin’s price rally bringing the whole market in euphoria after recording an all-time high after another. But it was the contrary this year due to a lot of factors at the end of 2021 resulting in a lot of uncertainties for the industry and consecutive crashes that have even expanded to the traditional market. But despite this, the industry has come a long way and is definitely here to stay.
Matt Damon Crypto.com TV Ad Receives Backlash by Crypto Haters
Snoop Dogg, Paris Hilton, and Kim Kardashian, and Tom Brady were among the long list of celebrities who were paid to do a crypto advertisement ad. The latest addition was Matt Damon after being tapped for a Crypto.com tv ad “Fortune Favors the Brave” and it has been airing since late October.
Crypto.com with now a total of 10M users would like to expand its market to users even more to a global extent. Kris Marszalek, Crypto.com co-founder, and CEO stated:
“We’re very excited to introduce our company to a global audience, inviting them to our secure platform with a message focused on financial independence and self-determination.”
The commercial ad is now gaining so much attention…from crypto haters. Jemima Kelly, a known crypto critic referred to it as “grotesque.” Carole Cadwalladr, a columnist at The Guardian, stated total distaste to Damon’s ad in a tweet.
Correction: there isn’t enough yuck in the world to describe Matt Damon advertising a Ponzi scheme *and comparing it to the moon landings*
— Carole Cadwalladr (@carolecadwalla) January 3, 2022
Benjamin McKenzie, an American actor who played the role of Ryan Atwood from the television series “The O.C.” has slammed Damon’s crypto ad by stating that investing in cryptos is not an act of bravery but gambling instead.
Not to state the obvious, but gambling on unlicensed, unregistered securities through an app on your phone isn’t bravery. It’s gambling.
— Ben McKenzie (@ben_mckenzie) January 3, 2022
Stephen Diehl, an anti-crypto programmer also wrote:
“I just can’t get over the unfiltered nihilism that suggests that investing in dog coins is like the moon landing.”
Crypto haters will always exist the way crypto proponents do. But what could probably make them go away? Adoption and real-world cases could be the key for haters to finally recognize crypto. But for now, it’s going to be a wait-and-see for everyone in the industry. Until then, crypto haters and proponents will continue to co-exist.
As for Matt Damon, let’s all wait and see his next movie since we will definitely appreciate acting skills more than his crypto ad.
Yield Guild Games Raises $1.4M for Victims of Typhoon Rai
Yield Guild Games, a play-to-earn guild raised a total of $1.4M for victims of typhoon Odette (with the international name “Rai”) in the Philippines.
The fundraising began on December 17 and was announced by the guild on their official Twitter account.
YGG is working with community managers to raise money for #OdettePH victims. For Eth, you may send donations to yggph.eth. For Ronin, pls send to ronin:bf298227e40c55f5d5a85e5aecc61c622f4b20ac@YieldGuild @kookoocryptotv @helloluis @gabusch @Goltra @AxuSprakyYGG @Shanksplaysaxie
— YGGPilipinas (@YGGPilipinas) December 17, 2021
Donations started to pour in the form of cryptocurrencies like ETH (Ethereum), SLP (Smooth Love Potion), and stablecoin USDC (USD Coin).
Jeff Zirlin a.k.a “The Jiho”, the co-founder of Axie Infinity were among the donators and made a hefty donation of 5 ETH or $19,970 with ETH (ethereum) value of $3,994 at that time.
I'm sending 5 ETH here. Will use at least another 5 ETH as I believe other community-efforts may be coming. https://t.co/T9qU4oysUl
— The Jiho.eth | #AxieOrigins (@Jihoz_Axie) December 17, 2021
The initiative made by YGG definitely proves that the crypto community is not only into gains and profits but also helping fellows who are in despair like those who became unfortunate due to natural disasters.
El Salvador to Issue Bitcoin Bonds
Last month, El Salvador announced its plan to issue Bitcoin-backed bonds and it will soon to a realization. Alejandro Zelaya, the country’s finance minister revealed in an interview that the country will soon proceed with the creation of legislation. He further added that it will start by sending Congress around 20 bills to initiate the process.
The government will be issuing $1 billion in bonds yearly with 50% of which will be converted to bitcoin and will be used for the development of the country’s bitcoin mining infrastructure. Zelaya boasted the country’s position as the first to adopt the cryptocurrency as legal tender.
“We are the first country to release a Bitcoin bond. And because we are the first country to do this, it needs to be regulated.”
The country is now in the process of creating a legislation draft for the bonds to be issued by the government.
With the price dips resulting in consecutive market crashes, most bitcoin adopters remain bullish on the most dominant cryptocurrency just like El Salvador.
