Bitcoin has maintained its bear market and has now arrived momentarily down to 28K and recovered to 30K, in what could be the start of a further price adjustment. At the same time, Yearn Finance (YFI) is considering minting, or printing, $290 million worth of its YFI token. These and more news in this practical daily summary so that you are always informed with the most recent events that occur within the crypto world.
📍 The price of Bitcoin has set off alarm bells for traders around the world by reaching the 28K barrier, this in the midst of a drop that has taken the price of the cryptocurrency from 41K to the current support. Specialist traders indicate that this drop in price may just be a larger adjustment than what we have already experienced during 2021, and the sentiment for the cryptocurrency still remains bullish, something that can be seen in the rapid recovery of the price of Bitcoin to 30K.
However, this drop in price has erased most of the gains made during 2021 and mid-December 2020, so traders remain alert in what could be (or not) the beginning of a bear market like the one experienced in 2018. Be that as it may, the crypto market remains strong and future forecasts remain positive.
📍 On the other hand, in the face of claims of double spending in Bitcoin, Bitcoin evangelist, Andreas Antonopoulos, dismissed these claims by pointing out that it was a reorganization in the Bitcoin blockchain, which is a normal occurrence within this network based on proof of work (Proof of Work – PoW). Antonopoulos pointed out that it was irresponsible to say that there had been a double spending in Bitcoin, especially when there were those who presumed that this fact was what had actually led to the recent fall in the price of Bitcoin.
Antonopoulos makes it very clear that this was not a double spend, and that you can see in the blockchain history how one of the blocks mined at the same time has been discarded, leaving only one of the transactions as valid and the network has continued with that “longer” history without problems. This is how Bitcoin is designed, and in 12 years of uninterrupted operation, no double spending has been detected on the network.
📍 Another wake-up call within the ecosystem comes from the protocol DeFi, Year Finance (YFI), where the minting of new YFI tokens is being considered, worth a total of $296 million. As expressed by the user yfi_lit, a participant in Yearn's governance forums, this protocol should not be like Bitcoin, because finite emission is not necessarily “the best execution route to obtain maximum value”. This user he presented a proposal for Yearn Finance (YFI), in which it proposes minting 1.000 new YFI tokens, valued at $29.670 USD per unit at the time of writing.
The proposal to increase the issuance of YFI is supported by 11 people in the community, who have even considered it prudent to increase the proposal and mint 22% more of these tokens. Likewise, there are those who do not agree with the centralization of the project and the proposals made.
📍 In the United States, legislators in the state of North Dakota are proposing to the government to approve the custody of digital currencies by the Bank of North Dakota. According to they report According to the media, the lawmakers' petition indicates that this is the only bank of its kind in the United States that, according to its regulations, is authorized to provide custody services for digital currencies and also to implement exchanges with this type of currencies.
Meanwhile, in the state of Nebraska, Senator Mike Flood is proposing a bill called «Digital Asset Transactions Act», which would allow the state to establish a financial technology center that would encourage the creation of more jobs in the region. It seems that for the senator, cryptocurrencies represent a great opportunity to transform northeast Nebraska into a major financial center.
📍 China announces a new lottery to distribute another 3 million dollars to its citizens in the form of its digital currency DCEP, or digital yuan. The Asian nation will be conducting its fourth public test of its future digital currency CBDC again in the city of Shenzhen, where two of the previous tests have already been carried out. According to they report According to local media in the city, this new lottery will be carried out in a similar way as the previous ones, distributing 200 digital yuan in “red packets” to 100.000 randomly selected citizens.
Applications for the new lottery are now open, and winners will be able to use the digital yuan they receive during the Spring Festival in Longhua District, from February 1 to 9. Although it has not yet been specified whether the country will test new functionalities for the DCEP, it is expected that China will surprise us with some new innovation.
Continue reading: Bitcoin sets new record with more than 11.000 nodes, while rewards skyrocket this month
