September 10, 2021

This edition of Netcoins news features major news regarding broader crypto adoption around the world. We get started with Redditors coming together to buy large amounts of Bitcoin in celebration of El Salvador officially granting the cryptocurrency status as legal tender in the country.

MasterCard is doing big things as it tries to enhance its crypto capabilities as well, with a major acquisition that will improve its scalability and security within the digital asset space.

Also, a major research firm in the United States is predicting that the price of Bitcoin will double from here by early next year and the price of Ethereum could go up as much as five times in that same span.

All of that and more in this week’s edition of the weekly news.

3.3 Million Bitcoin Redditors Buy Bitcoin on Tuesday in Homage to El Salvador

El Salvador officially made Bitcoin legal tender on September 7, marking yet another great milestone for the adoption of cryptocurrencies. Although it’s great for the crypto industry, most Salvadorans are actually against the proposal. Still, Redditors are all aboard the Bitcoin train.

A thread on the r/Bitcoin subreddit encouraging people to buy $30 worth of Bitcoin has over 7,700 likes. Why do they want to buy exactly $30 worth of Bitcoin? It’s because the government of El Salvador is giving $30 worth of Bitcoin to any Salvadoran who opens a crypto wallet as legalization comes into effect.

The legalization of it gives the country a chance to catch up to the rest of the world and stimulate the economy, but as mentioned, many groups see it as something that is happening too quickly or simply won’t work out in the long run.

Cryptocurrencies Experience Massive Flash Crash on Tuesday

Bitcoin tumbled by more than 10% in one hour on Tuesday while Ethereum dipped nearly 20% in a flash crash that shook the crypto world.

This is just a day after El Salvador purchased 400 bitcoins and plans to buy a lot more in the future.

Why the crash then?

Both the crypto market and the NFT market have been on fire over the last several weeks. On-chain metrics show an outflow of money from exchanges, which means more investors are HODLing. The thing is, many HODLers are also borrowing crypto capital to try to amplify their gains. When the price drops and they reach their margin requirements, not only do they wipe out their gains, they take on significant losses instead.

The price reached as low as $57,000 Canadian on Tuesday but on-chain analysis suggests that the dip is expected to be short-term.

Standard Chartered Predicts $125,000 Bitcoin by Early 2022

Standard Chartered is one of the most well-respected financial services firms in North America, and researchers at the firm are predicting that by early next year, one Bitcoin will be worth $125,000 Canadian or more. The same firm predicts a single Ethereum token will cost investors more than $40,000 Canadian.

The same researchers point out that while Ethereum’s short-term upside is much higher than Bitcoin’s, the risks associated with investing in Ethereum are also higher. The reason is simple. Bitcoin is a first of its kind, peer-to-peer payment network. As much as many cryptocurrency projects promise to overthrow Bitcoin, it will most certainly be the entry-level cryptocurrency for many years to come for most investors and it will likely play a major role in the world’s likely cashless future.

Although Ethereum is responsible for a large segment of the activity surrounding DeFi, NFTs, and other aspects of cryptocurrency, there are many smart contract platforms and altcoins attempting to overthrow the second most valuable crypto token in the world.

MasterCard Quietly Enhancing Crypto Capabilities

MasterCard is officially acquiring CipherTrace, a leading crypto intelligence firm that researches and has insights on over 900 cryptocurrency projects. The deal will increase MasterCard’s cyber security solutions revolving around digital assets and help manage regulatory frameworks surrounding the asset class.

MasterCard believes this deal will foster broader adoption and aid scalability as more and more people look to invest in cryptocurrencies and NFTs.

Visa released a report surrounding its intention to enter the cryptocurrency space in a big way last year and the growing popularity of the Crypto.com credit card is issued by the company.

The two largest legacy credit card brands in the world recognize the opportunity to tie their brands to the world of decentralized finance, NFTs, and crypto assets as the disruption of the traditional financial world continues.

That’s it for this week’s edition of the news. Don’t forget to sign up for a free account with Netcoins, the most trusted cryptocurrency exchange in Canada.

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