There are tons of news that surround cryptocurrency every day. Most of the information is about Bitcoin; however, other crypto assets are mentioned as well. Here, we will present to you, the most important crypto news that occurred this week. Keep reading to find out more information on the subject. There are a lot of crypto related events that happen daily in the world. This article will cover the most intriguing ones that happened during the past couple of days. The Coronavirus has affected everything, including the crypto world. That’s exactly why there are tons of news about cryptocurrencies that are connected to the world’s biggest problem at the moment. We have picked some of the most exciting and most recent news for this article.
Bitcoin fees have been growing rapidly during these COVID-19 times. We are going to talk about how they reached February 2018 levels. However, they have now dropped more than 54%. Next, we have to mention the chip that Samsung have developed with the aim to secure crypto transactions on mobile devices. Last but not least, we have to talk about what direction is crypto going to take post the COVID-19 era. Being in full lock-down just proved the need for libertarian solutions like cryptocurrency.
Bitcoin Fees Dropped 54%
After spiking a week ago to levels last seen in February 2018, the average Bitcoin (BTC) transaction fee has fallen by more than half. Bitcoin’s average fee decreased by nearly 54% from $6.65 on May 20 to $3.07 on May 25. The median — or most common — fee peaked at $3.91, but has now fallen to $1.65. According to Hayden Otto from Bitcoin Cash, the reduction in fees had to happen. If they grew even further, people would have abandoned BTC and turned their attention towards altcoins. He said the following:
“When BTC is operating at capacity with a huge backlog of transactions, it will slowly [lose users to altcoins] again. […] I’m sure most people trying to move funds around would convert to another coin before withdrawing from exchanges.”
There was a considerable amount of speculation that Bitcoin’s block reward halving might destabilize its blockchain. Otto argues that the halving did indeed have this destabilizing effect on Bitcoin’s functional dynamics, although this was beginning to smooth out. He said the number of unconfirmed transactions held in Bitcoin’s mempool recently stabilized at just over 20,000, after having reached this year’s highest level of more than 80,000. Otto suggests this is a sign that the Bitcoin network is regaining stability after its economy changed in the wake of the latest recent halvings. However, he believes that all of this might not be enough:
“We have already had one difficulty adjustment since the halving but it will take another one or two adjustments until it settles. Due to a decline in hash rate, blocks are being produced slower. BTC’s hash rate has dropped nearly 30% since the halving and the difficulty only lowered by 6%, thus difficulty will need to decrease further before blocks are mined at 10 minute average intervals.”
Samsung’s New Crypto-Based Technology
South Korean tech titan Samsung announced a standalone turnkey security solution that secures cryptocurrency transactions on smartphones and tablets. The solution consists of a Secure Element (SE) chip S3FV9RR and “enhanced” software. It is designed to secure the booting process, isolated storage, and mobile-based payments. Samsung released a press release, revealing their new technology. They said the chip will be available for customers in Q3 of 2020. Additionally, Samsung were saying that cryptocurrency transactions will be the primary purpose of this new technology. The press release, noted the following:
“In this era of mobility and contact-less interactions, we expect our connected devices, such as smartphones or tablets, to be highly secure so as to protect personal data and enable fin-tech activities such as mobile banking, stock trading and cryptocurrency transactions.”
Samsung are once again showing interest in Bitcoin and other cryptocurrencies. Earlier this month, Samsung Pay teamed up with cryptocurrency Visa card platform Swipe, allowing users to make crypto payments with their Samsung Pay-enabled devices. In February, Samsung presented its latest smartphone series, the Galaxy S20, which reportedly improved on the integrated blockchain security features introduced a year ago on the Galaxy S10. Samsung’s interest in cryptocurrencies and blockchain is well known, as the corporation has invested in numerous DLT startups, and has integrated the technology in its own products.
The Future of Crypto
It’s interesting to see what the Birth of Crypto Can Predict for the Post-COVID-19 World. We, as a society, are now experiencing a crisis of trust. Institutions, government entities, and the media have all failed us. From trusting financial institutions to guard our assets to expecting politicians to enact smart policies to hoping the media informs us on issues truthfully, we’ve entrusted these institutions to have the public’s best interest in mind and to provide crucial guidance in times of crisis. Instead of witnessing any of that, we have seen politicians, government agencies and the media fail catastrophically in the critical, early stages of the COVID-19 pandemic, with the few reasonable voices offering practical advice coming from Silicon Valley.
So, if we think about it, all these things remind us of the 2008 crisis. We can safely say that history finds a way of repeating itself. The 2008 crisis destroyed the public’s trust in the banks. That eventually led to the birth and proliferation of cryptocurrency. This genesis moment for cryptocurrency occurred, as it became evident that banks, and associated third parties, were unable to safeguard people’s assets. People wanted to permanently remove, on a structural level, any financial middlemen. Today, we can see similar patterns occurring all over the world.
People have to stay home to reduce the spread of COVID-19. Making payments is much harder, and cash is barely being used. All in all, these are the perfect conditions for cryptocurrencies. The need to replace legacy social systems based on blind trust with decentralized alternatives that are based on fundamental mathematics to empower the individual is now extremely clear. This will usher in an age of reason based on science, research and, most of all, data and facts
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