Fallout from Elon’s Bitcoin Drop
Just when many had thought that Elon Musk had become the new ambassador of Bitcoin, his EV company drops Bitcoin as a payment option. But why?
Simply put, Tesla is all about reduce reduce the eco-impact of it’s products and the energy-heavy mining of Bitcoin is at odds with that vision. BTC is widely being reported as an energy hog with a big environmental impact – one that threatens the currencies long term prospects.
The fallout was a rapid decline to the $46k price-point for BTC, despite a couple of breakout attempts in the days following Elon’s announcement. Unsurprisingly, Dogecoin (DOGE) was the winner this week as we watched it climb 22 points shortly after Elon announced that he was collaborating with network to improve the efficiency of the asset’s transaction network.
‘’Working with Doge devs to improve system transaction efficiency’’
Doge, which started as ‘jokecoin’ featuring a Japanese Shibu Ino dog as its mascot, has recently seen higher highs thanks to support offered by Elon Musk and mega-exchange Coinbase; promising to list the currency within the next two moths.
IRS Set to Investigate Binance
Rumours this week indicate that Binance, the second largest crypto exchange, has fallen in the crosshairs for joint investigation by both the Inland Revenue Service and Department of Justice in the US. Allegations that their exchange is nurturing illegal trading by its users in the United States.
“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,” said Binance spokeswoman Jessica Jung.
Although an official public announcement confirming the investigation has yet to be made, the rumour started from a credible source and the ripple effect was quickly felt. Bitcoin dropped 3.8% while Ethereum witnessed a 5% drop once the story made front page on several leading news outlets.
The revelation follows hot on the heels of a recent story that the Commodity Futures Trading Commission was also investigating Binance back in March.
Digital Yuan Ramps up
Following a successful pilot by the HKMA (Hong Kong Monetary Authority), expansion talks are in progress between Hong Kong and China. The next phase of the Digital Yuan (e-CNY), is set to scale out to incorporate cross-border payments.
“We have tested the use of the related app, system connectivity and certain use cases such as cross-boundary purchases,” said a spokesperson for the HKMA.
The PBOC (People’s Bank of China) is has a significant lead over many central banks as it races towards creating its own digital currency. The primary aim of the Digital Yuan is to replace cash and coins whilst maintaining control of the local digital currency market which has becoming increasingly driven by large corporate firms.
Unlike most crypto-currencies, the Digital Yuan is a centralised entity and thus has received some negative press from many crypto enthusiasts and market analysts.