Throughout the last few months, the world of cryptocurrency has experienced some major developments. These include the news that Russia has become the first country to authorize a transaction in which digital financial assets are exchanged in a foreign currency. In addition, India has seen some big moves, such as the country's adoption of a crypto winter.
Bitcoin
Whether you're an investor or simply curious, you'll want to keep track of the latest cryptocurrency news. This may include new crypto projects, crypto related events, or even just the market's price movement.
If you're not familiar with what a cryptocurrency is, it's a digital currency that uses blockchain technology. It's a decentralized system of distributing money that relies on specialized computers to solve complex equations.
The latest fad in the financial world is the use of cryptocurrencies. This may not be the most glamorous subject in the finance world, but it is a relatively recent development that is gaining ground in various sectors.
There are many cryptocurrencies in the market, but the best known is the digital currency Bitcoin. The latest price of the crypto is a bit under $51,707, a 4.6 per cent drop from the previous day.
There are several facets to the cryptocurrency market, and one of the most important is regulation. The United States is working on legislation that will regulate the market, and investors hope this will encourage institutional investors to invest in cryptocurrencies.
It's not just the United States that is working on regulating cryptocurrencies. Europe is also looking into ways to better regulate digital assets. Several countries including Turkey and India have shown an interest in the technology.
In fact, crypto enthusiasts have found some unique ways to give meaning to decentralized money.
Dogecoin
Among the latest cryptocurrency news, Dogecoin has been getting a lot of attention. It is based on the internet meme "Doge" and it is touted as a decentralized currency. Despite its hype, it is not particularly useful as an investment tool.
Dogecoin started off as a joke. The creators of Dogecoin, Jackson Palmer and Billy Markus, didn't plan on making it a serious investment. They simply wanted to have fun with a crypto that would appeal to the mainstream and crypto enthusiasts. The result was a fun, yet unpopular, joke-based currency.
The hype was short-lived. The value of doge plummeted by 75 percent in less than two months. It was not until Twitter owner Elon Musk took over the reins that the coin's price went up by 200%.
However, Dogecoin isn't a fork of Litecoin, and it doesn't have much to offer. It has a few notable features, such as a decentralized digital ledger. It also has an inflationary monetary policy, which is unusual for a digital currency.
As of November 2019, Dogecoin has over 120 billion coins in circulation. It is currently ranked thirty-ninth on the market cap rankings.
Dogecoin has had several short-lived spikes in price. In March, it rose from $0.002 to $0.04, and it jumped to $0.2819 in October.
Eventually, the price of doge began to trend downwards, with a major drop in June and July. The bearish trend continued through the end of the year.
Ripple
During a recent interview on Fox Business, Ripple CEO Brad Garlinghouse criticized the Securities and Exchange Commission (SEC) and said that he was not surprised to learn that the SEC filed a lawsuit against the crypto firm. The SEC alleges that Ripple illegally sold investors $1.3 billion worth of unregistered securities, a claim that could have a significant impact on the crypto space.
According to the SEC, the San Francisco-based company "engaged in an unscrupulous effort to mislead investors by overstating the company's profits." The SEC also claims that Ripple failed to register its XRP token as a security.
The SEC's case against Ripple is currently pending in the U.S. District Court for the Southern District of New York. A judge is weighing the motions for summary judgment from both parties.
As part of its defense, Ripple claims that the SEC's lawsuit against it is a frivolous case that has no merit. It also argues that XRP is not a security because it isn't an investment contract. However, this position has been challenged by William Hinman, former director of the SEC's corporation finance division. In testimony earlier this year, Hinman argued that a digital asset like ether is not a security and should not be treated as a security.
A number of outside lawyers have been hired to defend Ripple. The roster includes former SEC chair Mary Jo White and Andrew Ceresney. They also include former chair of the Katten Muchin Rosenman financial markets practice Gary DeWaal.
Blockstream
Founded in 2014 by the leader of the "cypherpunk" community, Blockstream has been involved in Bitcoin and other cryptography work. The company has been a major funder of the development of the Bitcoin Core software. It has also been working to build the Lightning Network, a micropayment system.
A number of organizations have invested in Blockstream, including the Digital Currency Group and Horizons Ventures. The company has raised a total of $366 million CAD so far. The firm is seeking fresh funding to expand its mining operations and to drive the next stage of growth.
The company's current mining operations are located in Quebec and Georgia. It plans to launch a second site in the U.S., and intends to expand to other undisclosed locations. The firm also recently announced the launch of a satellite to broadcast the full Bitcoin blockchain. The Satellite uses the latest open source SDR technologies.
In August of 2021, the company closed a $210 million Series B round. The firm's valuation was estimated to be $3.2 billion. It was led by Baillie Gifford and included a variety of investors, including AXA Strategic Ventures, Horizons Ventures, and iFinex.
The company plans to use the funding to build out its mining operations and to develop financial products on top of the Liquid Network. It will also look to expand its engineering and business development teams.
India facing a 'crypto winter'
Earlier this year, India became one of the biggest markets for crypto trading. In a short span of time, millions of dollars were traded across the country. But these days, the crypto market is struggling. It is facing a 'crypto winter'.
There are a number of reasons why this is happening. First, scams are a major factor. Second, there are concerns about regulatory issues. And third, investors are avoiding assets with high taxes. All these factors are putting several players on the backfoot.
The Reserve Bank of India (RBI) has been hostile towards cryptocurrencies. They are suspicious of digital tokens, as they could aid crimes. And they are also afraid of the potential impact on the Indian economy.
The RBI has not even finalised its plan to test the use of blockchain technology in the banking system. But this will probably be implemented once the results of a pilot project are known. Until then, it is collaborating with IBM to curb fraud in the banking ecosystem.
The Indian government has also introduced new tax rules. This may lock up liquidity necessary to revive the crypto market. It will also increase compliance costs.
The crypto winter has affected many exchanges. For instance, WazirX, one of India's most popular crypto exchanges, laid off nearly 40% of its staff.
The company's main lines of business include bitcoin mining, distributed computing, and equipment sales. It is currently operating three facilities and has a fourth facility on the way.