For most of the weekend, digital asset markets were fairly tame – echoing the preceding week. There was a healthy balance of both positive and negative news, resulting in a minimal change between prices at the beginning and end of the weekend. The following are some of the market developments from the past few days, which resulted in this balance.
Cuba to Recognize BTC?
In the coming weeks, all eyes will be on El Salvador and BTC as it officially transitions to legal tender within the Central American nation. Ever since the announcement that El Salvador would be accepting BTC as legal tender, enthusiasts have been speculating on who next will follow this lead. Naturally, when news broke that the Cuban government was actively establishing rules which would see it both recognize and regulate BTC as a form of payment, excitement rose. It is important to note that not only has nothing official has come of this yet, there are extremely few details for now on what this regulation would look like.
While the remittance industry is a main driving factor behind El Salvador’s decision surrounding Bitcoins adoption, Cuba’s motivation is different. Rather, it is believed that if the nation does indeed formally adopt BTC as a means of payment within its borders, it will be as an attempt to circumvent various restrictions placed upon it by the United States.
TBD Decentralized Exchange
For years now, Jack Dorsey has been one of the most vocal, and influential Bitcoin advocates. He has managed to gain a huge following among Bitcoin enthusiasts not only by sharing his own pro-BTC mindset, but by actually developing/implementing use cases for the top digital asset. The most recent example of this came in the form of ‘TBD’ – a new company focused on ‘building an open developer platform’.
This endeavour is now coming in to focus, with Jack Dorsey announcing just before the weekend the direction that this platform would take.
Mike Brock, who is heading up the TBD project, echoed past statements made by Dorsey in his belief that ‘Bitcoin will be the native currency of the internet’. The following is how he described the project.
“…entirely developed in public, open-source, open-protocol, and any wallet will be able to use. No foundation or governance model that TBD controls. Permissionless or bust…We’d love for this to be Bitcoin-native, top to bottom.”
Mike Brock did note that there will be multiple hurdles along the way, as it looks to develop this decentralized exchange.
- Exchange infrastructure between assets
It is noted that Lightning Network will go a long way towards solving these issues in time.
China Ramps up Crackdown
As time keeps slipping, the aftershock of China’s anti-BTC sentiments is becoming less pronounced. While the narrative of China ‘cracking down’ on BTC may have played a role in subduing markets this past weekend, it did not result in a pronounced downward swing.
This narrative was re-iterated by the People Bank of China (PBoC), when it reminded people of its stance surrounding digital assets.
“We remind the people once again that virtual currencies such as Bitcoin are not legal tenders and have no actual value support”
This statement, which was made by Yin Youpin, Deputy Director of the Financial Consumer Rights Protection Bureau of the PBoC, is reflective of actions currently being considered by the bank – actions which are believed to soon block the use of digital assets among various service providers.
The beauty of digital assets like BTC, are their global and decentralized nature. This has allowed the Bitcoin network to rebound much quicker than expected after China recently ousted a massive amount of miners from its borders – miners which simply migrated to a friendlier climate, setting up shop there instead. Essentially, in its attempt to control digital asset markets, China’s decision to continually ‘crack down’ on the industry simply resulted in a major decrease of the control it did have.
While the market saw minor ups and downs over the weekend, it was fairly subdued overall for BTC, with no major swings seen.
Although there was a slight ramp up in prices going in to Saturday, on the back of the aforementioned news involving TBD and Cuba, excitement clearly waned throughout the following days – possibly as a result of more FUD stemming from China.
Overall, the price of BTC has been range-bound in the mid-$40,000s for weeks now, testing the $50,000 mark twice, unsuccessfully. Many believe that the longer that this remains the case, the stronger its foundation becomes as more wallets buy-in at this price range. This should result in a decreased likelihood of any significant drops in the short term.
For the time being, most traders remain steadfast that BTC will soon cross the $50,000 threshold, on its way to new all-time-highs.