Bitcoin hits all-time high; skepticism about bitcoin in Germany; German cabinet passes law for blockchain securities; IOTA 2.0 update approaches; and Trump reportedly considers pardoning Silk Road founder.
Bitcoin hits new all-time high
Bitcoin has reached a new record high. Virtually overnight, the digital store of value broke through the wall at $20,000 on Wednesday, reaching an interim high of $23,600. An enormous leap, considering that the price was still below 17,600 US dollars in some cases a week ago. Specifically, the Crypto Cash was able to turn over 18 percent into the plus on a 24-hour view, and even over 37 percent on a monthly view. The price increase is not a coincidence. Large investors such as MicroStrategy, Square or MassMutual are gradually advancing into the crypto sector and are making the previous private investors look old. Thus, it is mainly large exchange groups or asset management companies that want to participate in the market. But also hedge funds like that of the Ruffer Investment Company (700 million USD in Bitcoin) are jumping on the Bitcoin bandwagon. Billions are added daily, bringing the Bitcoin market capitalization to over $420 billion.
Skepticism about Bitcoin in Germany
Despite the all-time high, many people in Germany are skeptical about Bitcoin and Co. As the latest representative survey by the German digital association Bitkom shows, only two percent of those over 16 said they had invested in cryptocurrencies. 18 percent could in principle imagine investing in the field. The remaining participants expressed skepticism about digital assets. Specifically, 66 percent of respondents thought digital payment instruments were too complicated. 55 percent said cryptocurrencies were more suitable for speculators. 47 percent of 16 to 29-year-olds see Bitcoin and Co. as safe alternatives to the traditional monetary system. The survey shows that the younger generation in particular is enthusiastic about cryptocurrencies. However, if Bitcoin’s upswing continues, it is quite conceivable that investors in conventional assets will also become even more open to digital assets.
German cabinet passes law for blockchain securities
However, skepticism toward Bitcoin and Co. in Germany could diminish after the German Cabinet passed a law on December 16 to issue electronic securities. This marks an important milestone in the German government’s blockchain strategy, which could give Germany an important locational advantage. Consequently, digitally securitized securities could have the same status as their analog, certificated counterpart. The chances that the Electronic Securities Act will also be passed by the Bundestag early next year can generally be regarded as high. The law relates to the issuance of electronic debt securities. According to it, there will be two different types of registers. In addition to the well-known central securities depositories, the crypto securities register will now be added. According to the law, the register is to be kept „on a tamper-proof recording system in which data is logged in time sequence and stored in a manner protected against unauthorized deletion as well as subsequent modification.“ A claim that is tailor-made to fit blockchain technology.
IOTA 2.0 update approaches
The next milestone for cryptocurrencies is approaching. The IOTA Foundation announced Dec. 14 that the Chrysalis 1.5 public testnet is live. The update is an interim stage of IOTA 2.0, which is scheduled for release in 2021. The full implementation of IOTA 2.0 is the biggest upgrade the MIOTA network has ever seen, the company said. In fact, he said, it is a complete rewrite of the protocol. The current plan is to put Chrysalis 1.5 through its paces with a series of alpha tests. If all goes smoothly, the mainnet of Chrysalis will launch in the first two quarters of 2021, after which it will be possible to use smart contract on the Tangle network. This will open up various application scenarios that could also make Decentalized Finance (DeFi) possible on the Tangle network. In addition, the IOTA Foundation recently parted ways with David Sønstebø, one of the founding members. Strongly differing interests between Sønstebø and the board of directors were the reasons, he said.
Trump reportedly considers pardoning Silk Road founder
While IOTA is firing its founder, another in the U.S. could soon be set free. Outgoing U.S. President Donald Trump is said to have expressed positive views about a pardon for Silk Road founder Ross Ulbricht. As reported by the U.S.