April's First Week's Crypto News
If you are wondering why Bitcoin is pumping this week, the crypto news is good, sure, but nothing out of the ordinary. The big thing that's changing is the macro-environment.
Interest rates are down and so is the U.S. Dollar.
For those of you who are not steeped in the traditions of macro investing, when rates and dollar goes down it means Bitcoin up.
On deck, we've got Filecoin (FIL) breaking out of the cabinet, Cosmos is delivering on promises and everybody's favorite regulator FinCEN are doing what they do best.
Filecoin is saying it
Image source : Box mining.com
Just in case you haven't heard of file coin already, it's a crypto project that's decentralizing, as the name says, file storage.
The story goes like this, there are millions or even trillions of terabytes around the world of unused hard drive space. Using Filecoin, a corporation or data center can rent out that empty hard drive space and paid for it.
Filecoin is basically like Dropbox, but cheaper and decentralized. Filecoin is doing a classic crypto move as I make this article. It's up 430% in the last month from $35 to just over $190. There are fundamental reasons for the move but perhaps the most important is that Filecoin was just listed on Coinbase and that means institutional investors can finally buy the token. Filecoin is also available in Grayscale and by all accounts, sales are off the charts.
All of this has taken Filecoin close to the top 10 in the crypto ranks, and it's not even done going up. Congrats to the Filecoin team and all of you Filecoin holders out there.
Dogecoin to the moon?
Image source: News18.com
Dogecoin pumped to nearly $0.07 on Thursday on the back of another Elon Musk Dogecoin tweet.
We know Elon Musk likes to joke around and is the most well-known fan of Dogecoin memes. But is he serious when he tweeted this out on April 1st, April Fool's Day?
And here's a good answer to that.
Elon used the word "literal" twice in his tweet. As the human race expands into the cosmos, physical currencies like paper money or stores a value like gold will not make sense. They'll take up valuable space and add unnecessary weight on our spaceships. Cryptocurrencies like Bitcoin and Dogecoin are the most efficient ways to transfer value - they transcend borders, are weightless and are immune to the unpredictable weather in space. Crypto is destined for the moon and beyond.
FINCEN to expose investor's data?
Image source: FinCEN.gov
FinCEN, one of America's many Financial Regulators wants to make it so that crypto companies, mostly exchanges, would have to collect information about the wallets their customers send crypto to. In other words, Coinbase would have to maintain a massive database keeping track of where their customers send their crypto.
No doubt, you can think of more issues with this proposal but here are the three major problems I believe are wrong with this idea:
It creates a honey pot for hackers to break into. The hackers could find out who the names of everyone who is "crypto rich" and go after them.
What will FinCEN is going to do with all this data? How would they sort it, rank it or analyze it.
Keeping track of all this data costs money. Those additional costs would eventually get passed along to the customer. So in summary, FinCEN wants to charge you more so that they can collect your data, which may be stolen at some point and we'll definitely be shared with the government.
Cosmos' IBC is live
Image source: medium.com
Five years in the making, the Cosmos Inter-blockchain Communication protocol or IBC for short is finally going live. If you're not already familiar with Cosmos, the simple explanation is that Cosmos is a blockchain that can connect other blockchains together. Cosmos sits at the center of a web of connections and the Inter-Blockchain Communication protocol is what makes interoperability a possibility. Once 2 blockchains are connected via Cosmos, they can't share information and execute fast and inexpensive token swaps. Cosmo says that they're even going to support NFT transfers. It's a pretty cool technology, to be honest.
The Flare Network is back with ADA token
Image source: heraldsheets.com
I'm sure you remember about the Flare Network they announced they were going to do a massive airdrop of their Flare tokens to all XRP holders. Well Flare is back in the news again, since they've announced that they'll be bringing Cardano (ADA) to their platform and.
That doesn't mean that Flare is fully integrating with Cardano the way Cosmos integrates with the blockchain for example. Rather, Flare is going to be integrating with the ADA token. Flare still has a long way to go to prove itself, but it's certainly an interesting project for 2021.
Bitcoin's and Ethereum's price
Bitcoin above $60,000 again for a short time.
So Bitcoin has broken through $60,000 again, and yeah, it didn't stick around long. But, Ethereum investors must be feeling good because ETH just stayed above $2,000 and everything is right.
Lead Image source: Cointelegraph.com
@Ryry.BCH
Flare is a scam asf. Not a single airdrop came for 5 months of waiting. Not gonna support it by the way.