Bitcoin continues to serve as a protective assetAug 5, 2019
12 out of 14 cryptocurrencies, with a capitalization of more than $1B, completed the week in the green zone. BTC has shown the highest growth. BTC added more than 20%, while XRM grew by 14%, and BCH by 10.5%. At the same time, altcoin Tezos (XTZ) + 42.6% showed incredibly strong growth. Cardano (ADA) and Stellar (XLM) finished the week with a slight loss.
Rapid Growth of Tezos (XTZ)
Coinbase, a leading US cryptocurrency platform started supporting Tezos (XTZ). The company said that users of the Coinbase Pro would be able to make deposits in XTZ from August 5. Moreover, after the level of sufficient liquidity is reached, the XTZ/USD and XTZ/BTC pairs will be available.
Trump has helped the cryptocurrency market
Previously, it was noted that BTC acts as a protective asset. It is visible while worsening trade relations between the US and China. So, the next increase in tariffs on imports of goods from China has provided quite strong support for BTC.
We recall that all defensive assets rose sharply after the failed trade negotiations between representatives of the United States and China. More precisely, after Donald Trump’s statement, gold, the Japanese yen, the Swiss franc and 10-year US treasury bonds rose significantly. Along with the marked assets, it demonstrates the growth of BTC. As a result, the share of the main cryptocurrency increased to 67.6% from 64.5%.
Since BTC is growing much faster than other coins, it can be assumed that this cryptocurrency operates as a protective asset. It is noteworthy that ETH grew by only 8.5%, and XRP by 3.9%.
The future of cryptocurrencies is diverse and pluralist
Vitalik Buterin believes that the future of cryptocurrencies is diverse and pluralist, thereby confirming his support to the proposal of Blockade Games developers to combine the second layer of the Lightning Network bitcoin with the Ethereum blockchain.
The Blockade Games team, working on the Neon District game, described the process of implementing the Lightning Network as an interface for Ethereum smart contracts on its blog. This solution will allow instant payments in BTC with the simultaneous launch of a series of events in other blockchains.
The developers note that during the first test of the code on the Rinkeby test network, they were able to conduct a Lightning transaction that initiated the execution of a smart contract on the Ethereum network. In the next few weeks, the project is planned to be deployed in the main broadcast network.
It is a big step for the cryptocurrency market because the game industry is developing quite rapidly. As a result, the use of cryptocurrencies for internal calculations will increase the penetration depth and, the demand for main coins.
Cryptocurrency mining in Iran recognized as industrial activity
At the meeting of the Cabinet of Ministers of Iran, chaired by President Hassan Rouhani, cryptocurrency mining was recognized as an industrial activity. According to the government decree, miners will be required to obtain a license from the Ministry of Industry, Mines and Trade.
Even though it is still not possible to use cryptocurrencies in Iran as a means of payment, miners will receive benefits if they sell cryptocurrencies abroad and give part of profit to the state.
In general, this is good news for the market. However, it can’t provide very strong support for cryptocurrencies, such as the deterioration of trade relations between the US and China.