Staying updated on the ever-changing cryptocurrency market doesn’t have to be as tough as predicting FIFA World Cup standings. I mean Germany, really?!
I’ve rounded up the latest set of news to help y’all stay in the loop.
First off, here’s a snapshot of how bitcoin and its buddies have fared in the past seven days as of June 22, 3:00 am GMT.
Square Gets BitLicensed!
Bitcoin and its buddies woke up on the right side of the bed for the trading week thanks to news that the New York Department of Financial Services granted a BitLicense to Square.
This means that users Square’s mobile Cash App in New York can now be able to buy and sell bitcoin from their smartphones.
Now this is a pretty huge deal since the industry has been feeling the weight of potentially stricter oversight in the past weeks, and the Big Apple’s BitLicense has previously pushed other crypto companies out of the state. Way to go concrete jungle where bitcoin can be traded, there’s nothing you can’t do!
Following last week’s hack on Coinrail, another South Korean exchange reported that $30 million worth of cryptocurrencies were stolen on a large-scale security attack.
Bithumb, which is the world’s sixth largest crypto exchange, promptly froze client deposits and withdrawals while assets were transferred to a cold wallet. The exchange also stated that it would compensate users affected by the hack.
Financial authorities in South Korea were also quick to investigate the matter, with the Korea Internet & Security Agency and Ministry of Science and Technology working closely with local police and other agencies to get to the bottom of things.
Although this sparked yet another sharp tumble in bitcoin prices when the news broke out, it’s also worth noting that the reaction was not as severe compared to the Coinrail news. Still, this marks another dent in the industry’s reputation, likely keeping investors on edge.
Goldman Sachs gives mixed signals
In an interview on Tuesday, Goldman Sachs CEO Lloyd Blankfein stated that bitcoin is just not for him. However, he did admit that the adoption of cryptocurrencies later on isn’t such a far-off concept, comparing it to how paper money eventually replaced gold.
Blankfein probably won’t be around in the company to oversee all that, though, as there have been reports that he will step down as CEO soon.
Besides, COO David Solomon mentioned in an interview the following day that Goldman Sachs is looking into cryptocurrency trading derivatives. He noted:
“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too.”
The company is already assisting clients in trading bitcoin futures and Solomon emphasized the need to “evolve its business and adapt to the environment.”
BIS: Cryptocurrencies not scalable enough
As part of its annual report, the Bank of International Settlements included a 24-page article on how cryptocurrencies will never replace actual money in the global economy.
In particular, the organization cited three reasons for this: scalability, stability of value and trust in the finality of payments.
It cited that the decentralized nature isn’t a good thing because “trust can evaporate at any time because of the fragility of the decentralized consensus through which transactions are recorded.” BIS also warned that the hard forks in blockchains can ultimately result in the loss of value.
Also, the BIS predicted that mass adoption can lead to massive storage demands and large communication volumes that could break the internet. It looks Kim Kardashian’s got some competition!