Main developments in the Bitcoin market

The European Central Bank unintentionally promotes decentralised currencies, while Bitcoin is supposed to support the Iranian economy.

Total technical failure at ECB shows strength of Bitcoin

Last week ended with a total failure of the European Central Bank (ECB) on 23 October. For several hours the Target2 system was paralysed, as was the bank’s information network. This made it impossible for the ECB and national central banks to process transactions from commercial banks. Private customers were not affected. Nevertheless, this incident demonstrates the weaknesses of centralisation and the strengths of a more decentralised financial system. Advocates of crypto-currencies such as Bitcoin and digital central bank currencies (CBDCs) felt vindicated: In decentralised transaction systems, failure is impossible. Meanwhile, the ECB ruled out a cyber attack.

PayPal could soon issue its own crypto currency

It was only on 21 October that PayPal announced its intention that the platform would in future support the crypto currencies Bitcoin, (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). The Chief Strategy Officer of CoinShares, Meltem Demirors, suspects that the payment service provider will also soon offer its own token. This would probably be based on the US dollar: It would therefore be a stable coin Crypto Cash that reflects the value of the fiat currency, similar to the stable coin tether (USDT). The chief strategist of CoinShares believes that this token could be developed in six to twelve months: With PayPal planning to buy the crypto-custodian BitGo, the company’s crypto affinity is becoming increasingly apparent.

Iran’s central bank soon Bitcoin-Wal?

The USA is blocking international payments to and from Iran. The Islamic Republic has now responded with an unusual response: The government and the central bank are betting on the largest crypto currency by market capitalisation. The central bank provides importers with Bitcoin, which allows foreign traders to pay smoothly. The country legalised Bitcoin mining in 2019 and the regulatory environment is still uncertain. But the crypto community is happy about the news. Because the company shows the incorruptibility of digital money. The Iranian government seems to have understood this and is using the situation to its advantage.

Premiere: IPO in Australia accepts Stable Coin Tether

Initial Public Offerings are IPOs – investors pay shares with fiat money. The Australian West Coast Aquaculture Group (WCA) is offering its customers for the first time the possibility to buy shares with a crypto currency. This is a novelty for the country. The IPO will take place in mid-November, and in addition to the Australian dollar, the stable coin tether will also serve as a means of payment. Thanks to its peg to the US dollar and other assets, this is subject to only low volatility. Therefore, the WCA preferred this crypto currency. The IPO is expected to bring the company 5 million Australian Dollars, which it intends to use for the acquisition of breeding and rearing facilities, among other things.

Marathon and Riot fight for dominance in Bitcoin Mining

Bitcoin Mining remains a highly competitive business. Marathon and Riot show that it has long since ceased to be hobby computer scientists who use their home PCs to promote Bitcoin. They are fighting bitterly for the Bitcoin Mining crown. Marathon is investing in thousands of Antminer S-19 Pros, with which it aims to take pole position in July 2021 with 2.56 exahashes per second (EH/s). Then 1.9 percent of the network’s total mining power would be in the hands of the company. Riots plan was to achieve a computing power of 2.3 EH/s by then. This target is to be corrected with the acquisition of mining hardware of the same type as Marathon’s. But Riot is still ahead.

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