The past week has been filled with an exciting amount of news. For one, the two cryptocurrency giants Ethereum and Bitcoin went on a tear this past week -- pricing at more than 50% and 20% higher. This is especially unique because typically these summer months are slower than others. Of particular note, however, is the outperformance of Ethereum over Bitcoin, which may be indicative of a new exciting trend in the digital asset world. The uptick in Blockchain activity may also be a result of the global pandemic triggering changes in our social, political, and technological institutions.
Cryptocurrencies prices spike: What does it mean?An abnormal summer is leading to abnormal developments in the markets. With massive increases in price across the board in the past week -- Ethereum seems to be leading the way towards something exciting. Or perhaps, is it indicative of something that is already here? It has been a very active summer with many successful projects popping up on the Ethereum Blockchain (notably defi networks). The crypto giants -- Bitcoin and Ether -- are also gaining attention from the conventional financial institutions. As inflation reaches record annual highs, cryptocurrencies are being seen as a “hedge against inflation” on Wall Street. For many years now, Bitcoin has been compared to gold -- mimicking relative scarcity and therefore minimal inflation rates. This, therefore, may be causing spikes in cryptocurrency prices.
Court reveals Bitcoin as a currency
In the District court of Washington D.C, criminal charges of money laundering using bitcoin against Larry Dean Harmon were not dismissed. Harmon’s attorneys argued that is not ‘money’ and thus cant be accused of money laundering, but the case was opposed and shut when the District Judge determined that Bitcoin does fit the definition of money -- a medium of exchange, method of payment, or store of value. Though this doesn’t have any revolutionary implications, it will set a precedent for any future legal cases concerning the illegal use of digital assets. It is also reflective of the ever-growing integration of Bitcoin in our social, political and legal institutions.
A new era of Blockchain: Ethereum and the power of PoS
Ethereum’s eventual transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) is expected to occur before year’s end. This is reflective of a truly transformative phase within the Ethereum Blockchain. Proof-of-stake won’t only garner more support and attention, but it will also get rid of certain mining costs and energy waste which proof-of-work exploited. Though proof-of-stake lowers the amount of “nodes” on the Blockchain -- making it less secure than under proof-of-work -- leaders in the space are arguing that the network is big enough to minimize nodes to improve efficiency and scalability on the . This exciting upcoming technical event may be a contributing factor to Ethereum’s recent price change. Though the price of Ethereum may indicate certain developments, factoring all risks and unaccounted variables is vital when evaluating the growth and strength of a network. Thanks to Ethereum’s active leadership, the network may one day may come out ahead of Bitcoin in certain fields, as its developers are working around-the-clock to build a bright future for Ethereum and its components.