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Avalanche (AVAX) Founder: Stablecoin Adoption Will Mark The Success of the Crypto Industry

What is the best thing the cryptocurrency ecosystem could do to ensure its global success? Boost the dominance of stablecoins.

Anyone who disagrees is free to debate with Emin Gün Sirer, CEO of Ava Labs, the company behind the succesful Avalanche protocol, who explained to Business Insider that stability must reign in the world of decentralized currencies if they are to be attractive to the general public.

Stablecoins Will Be The Next Big thing

ISpeaking to Business Insider, Emin Gün Sirer assured that the real success of cryptocurrencies as a social phenomenon will come when a fiat-pegged stablecoin becomes the No. 1 coin by market capitalization.

“We are not anywhere near done until the number one coin is a stablecoin. That’s my indicator for real success.”

As of now, Tether (USDT) is the most important stablecoin in the crypto world. Its market capitalization is around $69600 million, to rank number 5 on the list of most valuable cryptocurrencies.

5 places down in the list is USD Coin, a stablecoin maintained by Circle and Coinbase, with a market cap of $32600 million, but with a friendlier relationship with US regulators.

Emin Gün Sirer expects the use of stablecoins to increase, especially among DeFi users. The advantage of these coins would be precisely that users would be able to control the value they would be trading.

“People want to borrow, and they want there to be more stablecoins, so I expect the tethers of the world, the Circles of the world, to grow – and it’s going to be really exciting,”

A Difficult Milestone to Achieve

Although cryptocurrencies were the brainchild of cypherpunks looking for a way to escape the traditional financial system, stablecoin issuers took advantage of all the technology decentralized crytpocurrencies and used it to build a bridge to the legacy finance system.

Thus, in general a fiat stablecoin is backed entirely by cash, cash equivalents, or assets that guarantee that each token is equivalent to a specific fiat money unit — imagine one dollar for 1 USDC token, 1 Euro for 1 Stasis or 1 gram of gold for 1 Digix.

But this situation means that stablecoins tend to be dependent on a centralized entity. For example, USDT is controlled by Tether Inc, USDC by Circle, BUSD by Binance and DAI by a Decentralized Autonomous Organization.

In addition to the aforementioned philosophical problems, the centralization of stablecoins is a weakness that could allow for a stricter regulatory system – and even government control. Already Circle has frozen USDC tokens and blacklisted wallets to comply with the law, Tether has had to pay juicy fines, and regulators are looking for ways to give stablecoin issuers similar treatment to traditional banks.

Bitcoin (BTC) hashrate recovers from China’s crackdown

Earlier in the year when China renewed its hostilities towards the crypto industry, one metric that saw a negative effect of the crackdown was the Bitcoin mining hashrate that plummeted by more than 50% during this period largely because crypto miners were being pushed out of the Asian country. Bitcoin mining hashrate recovers from China::Listen

Earlier in the year when China renewed its hostilities towards the crypto industry, one metric that saw a negative effect of the crackdown was the Bitcoin mining hashrate that plummeted by more than 50% during this period largely because crypto miners were being pushed out of the Asian country.

Bitcoin mining hashrate recovers from China ban

With erstwhile Chinese miners finding new homes around the world, Bitcoin mining hashrate has begun an ascent to the top again as available data has shown that the metric has risen by around 80% within the last five months.

According to data from Coin Metrics, Bitcoin hashrate, during the peak of China’s crypto ban was as low as 84.79 exahashes per second (EH/s). That figure has now almost totally recovered as Bitcoin’s hashrate is now currently at 156.6 EH/s, after the mining of the flagship digital asset touched as high as 167.18 EH/s on November 17.

An intelligence report from Kraken has also predicted that the network hashrate might hit a new all-time high quicker than expected due to the computation power being deployed by miners. 

While many expected hash rate to hit an all-time high at the tail-end of December, the network is now pacing to beat expectations amid an ongoing surge in demand from miners.

BTC mining difficulty recovers as miners now earn more too

Apart from the decrease in BTC mining hashrate, another metric that suffered from China’s crypto meltdown was the mining difficulty of the crypto gold. 

The mining difficulty of Bitcoin before the ban was as high as 25.05 trillion in May, that figure dropped to a low of 13.67 trillion in July when the ban was in full swing.

But with miners moving to new centers in Russia, North America and, Kazakhstan, BTC mining difficulty has had a positive adjustment and has increased by 66% to over 22 trillion as of press time.

Interestingly, miners are also now raking in almost the same amount of money they were making before the ban. BTC miner’s revenue has been on the bounce for the past five months and is close to matching its previous ATH too.

All of this data proves that the industry is successfully weaning itself from the dependence it used to have on China miners and the effect the policies of the country used to have on the market in previous times.

The post Bitcoin (BTC) hashrate recovers from China’s crackdown appeared first on CryptoSlate.

Avalanche (AVAX) Founder: Stablecoin Adoption Will Mark The Success of the Crypto Industry

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