After several weeks in Wonderland, the spell was finally broken. The honeymoon ended due to the comments of the members of the Federal Reserve and the caution of investors. The markets are settling down and hitting the ground. You don’t have to be a genius to know that the fight against inflation is not a tangerine. We are in times of high uncertainty. The context is extremely complex. And it is quite naive to claim victory at the first change. I’m afraid a couple of positive reports is not enough. More time and more data are required to be able to draw the picture more clearly.
Uncertainty breeds fear. And doubt causes volatility. That does not imply that all weeks are red. Every bearish cycle has its bullish rallies from time to time. Today, the bears are winning. Tomorrow it will be the turn of the bulls. Over the past few weeks, the bulls have built an optimistic narrative created by assumptions. This new optimism is not entirely irrational. Inflation did drop in July. Which is extremely positive, because inflation did nothing but rise. In this sense, joy is realistic. However, that does not mean that with this battle we won the war. Relief rallies are necessary. But from catharsis we went to euphoria in a few days.
It is not very prudent to make predictions at this time. Because there are no models for such atypical times. Here anything can happen. The truth is the US economy is still grossly overheated. And the Fed must continue to tighten the dollar in order to tame the beast of inflation.. There is no choice but to wait for the data as new reports come in and wait for announcements from the Reserve during their monthly meetings. You have to live one day at a time. The only probable thing in such a context is a high volatility. Volatility up. Or volatility down. But it is sensible to expect a lot of volatility.
Bitcoin in recent days has lost the gains of almost a month. If we continue to fall like this, the bulls will have a harder time making their case. I mean, if a rebound is not achieved soon, the possibility of revisiting the $17-$19 neighborhood would not be so unlikely.
Now, we talk, with a critical eye, about the top crypto news of the week.
Spain: MundoCrypto expects to gather more than 7,000 people for the launch of its own Metaverse, in Madrid
Apparently, it is an event with a lot of calls on a topic of great interest. Spain is not at its best. And the whole rise of the Metaverse is no longer like it was last year. But events like this show us that, despite the problems, there are still people working on the future.
In relation to the Metaverse, we always have that tirade between centralized solutions and decentralized solutions. Facebook (Now Meta) is the villain of the movie for lovers of decentralization. But not everyone who criticizes builds. Y the Metaverse needs more developers than critics. Because users want more proposals than debates. I hope that this meeting in Madrid will serve as a stimulus for the development of new applications.
Dutch Authorities Arrest Suspected Tornado Cash Developer
The subject of financial crimes is quite complex. And, like it or not, the citizen must comply with the laws. That is, the authorities act according to their mandates. And the political or ethical ideas of the individual are not always taken into account. In other words, no matter how much classical liberalism and free market capitalism is talked about, the law is the law. That is the power of the state. Private keys or not, confiscable or not, Satoshi this, Satoshi that, if something is a crime, something is a crime.
If the matter were that easy, the FBI would not have so much BTC in its possession. Many people evade the law by hiding things with the latest technologies. But that does not imply that you are above the law. There is no “unconfiscatable” technology. What it really means is that you haven’t been caught yet. I’m afraid that’s the way things are. And it’s not a matter of taste.
Ethereum miners claim to have deactivated the “difficulty bomb”
The Ethereum “Merge” is on the table. According to Bitcoin maximalists, Bitcoin is the most decentralized network of all. Not everyone agrees with this statement. In fact, there are people who are very doubtful of the supposed decentralization of Bitcoin. Is Bitcoin mining decentralized? Is Bitcoin development decentralized? Are exchanges decentralized? These fights between protocols are more about tribalism than anything else. They are distant cosmologies. Therefore, each team defends its own.
Now, the environmental issue is one of the weighty factors for those who want to migrate to a Proof-of-Stake. Here the beneficiaries are those who have the stack (stake) larger. However, in every change, there are also dissatisfied sides. Actually, it is not a big surprise that Ethereum miners are not very happy with a “difficulty bomb”. Of course Whether or not these divisions within the community will dissipate over time remains to be seen.
Mercado Libre announces the launch of its own cryptocurrency, Mercado Coin
From the beginning, you could see that it was not just a matter of accepting cryptocurrencies as a form of payment. The agreement between Mercado Libre and Paxos goes further. It deals with the buying and selling of cryptocurrencies. In the deal, the Paxos stablecoin is also mentioned. And now the launch of its own cryptocurrency, “Mercado Coin”, of variable value, to “loyalty” its users. Okaythere is no doubt that Mercado Libre has an interest in the crypto industry.
“The cryptocurrency was developed as ERC-20, in the Ethereum blockchain and will be sold in Mercado Pago, with an initial price of 0.10 dollars, but its value may vary according to market demand, Mercado Libre explained during the announcement.
The option, for now, is only available in Brazil. Okay, We will be very attentive to the evaluation of this interesting project. Good luck. And I wish you success.
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