Bitcoin Hashrate Recovers Strongly!!!
For today’s news, I have found four pretty interesting news pieces to share with you. Here is a summary of all the news. First up, yesterday’s harsh drop in Bitcoin’s hash rate is almost entirely corrected. It is currently returning back to normal levels at more than 92 exahashes per second. Next up, EOS parent firm Block.one announced the opening of its fourth global headquarters in Washington DC. Third up, the recent drop in Ether prices shakes DAI stablecoin peg with two collateral contract closed. And the final piece of the day, it looks like GOvernor of the Bank of England Mark Carney’s crypto idea gets turned down by former Fed official Simon Potter, claiming that any proposal to end the US dollar’s dominance with a digital currency makes no sense.
The Market Today
It looks like we have recovered nicely from yesterday’s crash. BTC while it’s still dropping, is decreasing in the single digits with a 3.47% decline, standing at $8,407 per coin. Meanwhile, we can see some nice greens on ETH and XRP with 0.05% and 3.64% increases.
Bitcoin hash rate strongly recovered
Beincrypto reported that Bitcoin’s hash rate has seen a great recovery from yesterday’s decline, back to more than 92.0 Exahashes per second at the time of reporting. For anyone new to crypto, a hash rate is simply a general measure of the processing power of the Bitcoin network, determined by Exahashes per second (EH/s). Back to the news, as you may know, the last few days we witnessed a plummet in the crypto market, as the prices of numerous digital currencies dropped by 20 to 30%, or even more. Analysts quickly pointed out that the reason behind the price crash could be due to a sudden and steep drop in Bitcoin’s hash rate, which fell from 98,12 EH/s on Sept 22, to 67,38 EH/s on Sept 23, more than 31% drop guys! The price of Bitcoin immediately began plummeting, which resulted in altcoins following a similar trend. So, you may ask, BTC prices dropped as soon as its hash rate plummeted. Will the price increase when the hash rate is going back up? Many people in the crypto sphere believe so. Some investors and traders are looking for another rally, believing that it could take Bitcoin back to the $15,000 mark.
Block.one opens headquarters in Washington D.C.
According to a report on Cointelegraph, Block.one, the parent firm of EOS, announced on Sept. 23 that it is building new headquarters for its United States operations arm in the Washington, D.C. metropolitan region. The company claimed that they are able to provide 170 high-skilled jobs for citizens in the next 3 years. Block.one CEO Brendan Blumer also added:
“Its proximity to the nation’s capital positions us close to the policy innovation around digital assets and distributed ledger technology in the U.S. This expansion opens up important new avenues of talent expansions for us at a time when there is rapidly increasing demand for blockchain-based technologies.”
Virginia Governor Ralph Northam revealed that Block.one promised to invest $10 million in this region, with the idea that they can help raise Virginia’s reputation in the IT sector.
DAI stablecoin dropped, CDP contracts closed due to Ether plummet
Yesterday, according to CoinTelegraph, Ethereum prices plummeted, which showed us the weaknesses of the decentralized stablecoin built by MakerDAO, DAI, and the decentralized finance ecosystem built on top of it. Now, for those who are not aware of DAI, is a decentralized cryptocurrency stabilized against the value of the US dollar. Created via the Makers (MKR) Dai Stablecoin System, it uses margin trading to respond to changing market conditions and preserve its value against the major world currencies. In response to the previous Ethereum crash, DAI lost more than 18% of its value in less than 2 hours, dipping from $190 to $155. On the other hand, DeFi Saver, a protocol management service, revealed on Twitter that the Ethereum system struggled to execute al needed Collateralized Debt Position (CDP) ratio adjustments in time. Now, CDP is a type of loan administered by a smart contract, allowing users to lock up Ether as collateral in order to draw out Dai which can then be used to trade crypto or convert to cash if needed. As announced earlier, the company has an independent service protecting CDP from liquidating. However, the company admits that due to the network congestion and transaction fees, this system failed to protect 2 monitored CDPs, which were liquidated in the process. The firm stated
“Although our automated protection is still in beta, our team is disappointed to have let some of our users down and we are willing to recuperate the losses suffered. We ask the owners of these two CDPs to please reach out.”
In an optimistic perspective, author of “Mastering Bitcoin,” Andreas Antonopoulos commented:
“It seems like DAI maintained the price parity, the CDP protection contracts worked in all but two cases. This was a good test and things worked pretty well.”
Former Fed official: it makes no sense to replace USD by crypto
According to CoinTelegraph, a former senior Federal Reserve official criticized the suggestion of the governor of the Bank of England when he recommended ending the USD dominance by replacing it with a digital currency. In August, Mark Carney, the Governor of the Bank of England, proposed that they should diminish the dominance of USD by adopting a cryptocurrency like the Libra token. He insisted that this is a better approach than replacing the USD with another national currency like China’s renminbi. Recently, in an interview with BNNBloomberg on September 25, Simon Potter, a former senior Federal Reserve official, criticized Carney’s argument.
“I see no argument that makes sense to have something that complicated out there when you have large, liquid capital markets in the U.S. Not having one currency that you can basically price things and have a deep market in, that makes life much harder for the global economy.”
That’s a wrap for today’s video! Please let me know what your thoughts are.
Do you believe in a coming surge in BTC price after the hash rate recovery?
Will the new headquarters of Block.One improve Virginia’s reputation with the IT sector?
What are your thoughts regarding the DAI
Do you agree with the idea of removing USD’s dominance with digital currency?
Please leave a comment right below to let me know what you guys are thinking. It’s your girl Cindy with CryptoPig. I’ll see you guys on Friday.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.