Crypto markets rocked by US Fed announcement, Goldman Sachs predicts gold to lose its place in favor of Bitcoin and which digital coin was born 13 years ago this week? These stories and more this week in crypto.
Bitcoin, along with other cryptos, suffered a significant drop this week. Investors were shaken after the US Federal Reserve’s December meeting, where the Fed revealed it would slowly reduce its $ 8 trillion balance sheet in 2022 that was created during a program to buy record assets in response to the coronavirus outbreak.
Kazakhstan has experienced unprecedented political turmoil due to a sharp increase in fuel prices. As a result, the country’s government shut down the country’s internet, causing the overall Bitcoin network hash rate to drop by 13% within hours of the shutdown. Kazakhstan is the second largest country in the world when it comes to hashing activity for Bitcoin mining.
Goldman Sachs suggests that 2022 will see Bitcoin take market share from gold. The bank analyst estimated that bitcoin currently holds a 20% market share as a store of value, and that in a scenario where bitcoin could grab a 50% share of that market, its price could reach over $ 100,000.
The fintech giant PayPal has reportedly confirmed its intention to launch its own stablecoin called PayPal Coin. A PayPal spokesperson clarified that the source codes for the iPhone app were developed in a recent hackathon and that the company is indeed planning to create PayPal Coin, which will be backed by the US dollar.
Mexico’s central bank will issue its own digital currency. In a statement released by the Mexican president on Twitter, it was said development would likely be ready in 2024. The announcement adds Mexico to the growing list of countries looking into their own central bank digital currencies.
Shark Tank star Kevin O’Leary has revealed his cryptocurrency investment strategy, based on his belief that NFTs will ultimately be bigger than Bitcoin. According to O’Leary, NFTs offer all kinds of use cases, especially in the areas of authentication and asset tokenization. The investment guru also revealed the cryptos he currently holds based on their development teams.
Famous hip-hop artist Eminem spent nearly half a million dollars on just one NFT. The NFT is from the Bored Ape Yacht Club – one of the most famous and expensive collections. Eminem quickly made the monkey, who wears a military-style brown hat, hip hop clothing and a dazed expression, his Twitter Profile picture.
Bitcoin – the cryptocurrency that started it all has grown into a teenager this week. On January 3, 2009, the first bitcoin block, known as the Genesis Block, was mined by the pseudonymous creator of the project, Satoshi Nakamoto. Thirteen years after this event, and after many predictions of its demise, the number of cryptocurrency followers is larger than ever.
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That’s what happened this week in crypto, see you next week.
