Cryptocurrency astonishes everyone with its strength
Because of the Ukraine conflict, the cryptocurrency market is under pressure. Even though the prices of the crypto struggle, it showed signs of strength in other key areas.
A prospect of Hope.
Although there are price struggles amid geopolitical turmoil, crypto continues to show signs of strength.
As the ongoing tensions concerning Ukraine escalate, questions of the Fed’s plan to raise interest rates go unanswered; it continues to pressure global markets and the crypto prices this week. BTC slumped below $37,000 on Monday, roughly shedding 5% since Sunday as the S&P 500 entered the bearish territory. The news regarding the crypto economy is surprisingly not all that bad, even though prices are only part of the story. Despite troubling geopolitical headlines, the crypto industry has quietly won a few successes in recent weeks, ranging from rising global adoption to Wall Street’s growing thirst for bitcoin. Let’s get started.
- As more miners join to compete to earn BTC rewards for verifying transactions and strengthening the blockchain, Bitcoin mining has surpassed all previous records. Mining power or “Hashrate” is frequently mentioned as a proxy for network health and security, hitting a record high on February 17, a significant recovery after the China mining crackdown last summer. Roughly 35% of Bitcoin’s hashrate emerged from North America, now a leading miner in the world after the China ban.
- Approximately 25% of consumers globally own crypto, and as per a new survey, Latin American countries have the highest adoption rates, with crypto investments reaching the tune of $653 million in 2021. Nearly 50% of Argentinians have reportedly owned crypto, and crypto credit cards are booming as the country is plagued with ever-increasing inflation. In 2021, Brazil’s Bitcoin commerce was estimated to be worth $12 billion, and Rio de Janeiro, the country’s second-largest city, plans to invest 1% of its treasury in cryptocurrency.
- While waiting for the White House to release a crypto-related executive order, some states in the United States are debating crypto legislation. A Tennessee plan would allow the state to invest in cryptocurrency, an Arizona lawmaker wants to make bitcoin legal tender, and Missouri lawmakers want to exclude bitcoin from state taxes. Meanwhile, Wyoming lawmakers are considering creating a stablecoin, while Colorado’s governor has declared that the state will begin accepting cryptocurrency for tax payments soon.
- Customers should expect to see more crypto offerings as global financial firms staff up their crypto divisions and extend their crypto offers. In the meantime, Mastercard aims to recruit further 500 people to expand its crypto consultancy services; in Europe, a BTC-backed fund is launched by Fidelity, and the New York Stock Exchange has filed trademark licensing to launch its NFT market. 300 banks in the United States are planning to allow BTC trading, according to J.P. Morgan (which now has a virtual lounge in the metaverse).
Even though news from Ukraine is dragging global markets and crypto prices down, a more comprehensive view of the crypto economy reveals plenty of reasons to be positive as more governments, companies, and individuals join the fold. Furthermore, from Intel’s new energy-efficient mining processor to Twitter’s ETH-tipping tool, the list of developments and opportunities in this vast $1.7 trillion sector will only grow. Walmart’s senior board director recently declared, “It’s apparent this is a powerful and constructive technology with substantial development potential over the next few years and beyond.”