4 News Articles that you might have missed over the last 48 hours

By TrocProcLock | Random Tech News | 10 Mar 2020


So lets go over recent Crypto/World news. With the coronavirus happening it is effecting the world in many ways. It is also effecting the financial world and the crypto world by association.

 

On Monday (March 9th, 2020) the entire cryptocurrency market fell $26.43 million in a 24 hour period. Why did the value shrink so much? It's not because of the coronavirus. In fact it is because of oil prices that are plummeting. So long story short there is a international organization called OPEC, it is 14 nations who come together to agree on oil prices and distribution and supple to help stabilize the oil economy. Well OPEC did not come to an agreement to reduce production of oils so Saudi Arabia decided to slash its prices. Which then in turn created a mass chaos among the oil prices.

In case you didn't notice the world is using a ton of less oil in recent months. People are not flying as much or driving as much. So there is a bigger supply of oil around the world and there by the gas prices at the pumps are cheaper. 

 

Stock Markets around the world started to crash. Japan (5%) and Hong Kong/China (3%) stock markets fell sharply. In the United States the Dow went down 2,000 points (7.79%). This is all in response to the oil price drops which are directly because of the coronavirus. The beauty of cryptocurrencies is that they tend to fluctuate independently of the stock markets. Which is their design to be 'stable' even when a economy crashes. 

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New Bill in the US introduced "Crypto-Currency Act of 2020". Representative Paul Gosar (Republican-Arizona) introduced this bill to determine which U.S. regulating body is responsible for digital assets. What it is trying to do is break up Crypto Currency into three categories each governed by a different body.

Crypto-Commodity: CFTC = Commodity Futures Trading Commission 
Crypto-Currency: FinCEN = Security of the Treasury via the Financial Crimes Enforcement Network
Crypto-Security: SEC = Securities and Exchange Commission

What this does for us in the US is take cryptocurrencies and define them as a crypto-commodities. So your cryptocurrency would be "representations of the United States currency or synthetic derivatives". And what is says about crypto-securities is "add debt, equity, and derivative instruments that rest on a blockchain or decentralized cryptographic ledger."

 

Blockchain.com users can now borrow against their crypto holdings. Blockchain.com is a wallet and exchange in 1. People who are holding currencies in their wallets can now borrow US dollar-denominated stable-coins against their bitcoin being held in their Blockchain Wallet. It's just another instance of letting you borrow "real" money against your cryptocurrency.

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TrocProcLock
TrocProcLock

I am a crypto enthusiast and also a crypto noob :) Just trying to learn more each day.


Random Tech News
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