Crypto Classified Issue #7

Hi there! ??

We’re back to give you the latest updates in the crypto world... ???

Thank you for subscribing to our monthly “Crypto Classified” newsletter. If you’re new here, welcome to the family! ??

This newsletter will give you the most current and important information you need to know when it comes to navigating the crypto world. If you don’t have time to follow crypto news daily, by simply subscribing to LocalBitcoins’ newsletter you’ll have access to useful information including a general idea of where the market may be headed as well as what’s going on with Bitcoin and the wonderful world of cryptocurrency…

In this month’s edition, we’ll be taking a look at Latin America, specifically Argentina, which has a lot going on in terms of crypto updates! ???? We will also briefly mention the awaited Ethereum merge that happened this month and so much more!

Oh! We also have some exciting news about LocalBitcoins. Don’t miss it!  ??

BTC Price… ??

The cryptocurrency market is a highly volatile market with sudden ups and downs in cryptocurrency prices!  Fortunately, it seems August has brought us a bit of relief in this ice-cold crypto winter. ??

Bitcoin started off the month at a value of US$23K after quite an increase in late July, when it jumped from US$21K to 23.8K. On August 17, the popular crypto reached the US$24K mark! That’s as high as it has been since the head-spinning low in June! It has gone down a bit since then, and it may not be much, but we sure are excited for the possibility of a smoother ride and warmer temperatures from here on out. It’s much too early to tell, but let’s keep our fingers crossed! ??

Popular cryptocurrencies in recent times… ??

• Ethereum ??  On August 10, Ethereum completed the Goerli public testnet merge — its final trial before making the migration from Proof-of-Work to Proof-of-Stake (PoS) on mainnet . It is now expected to complete the Merge on or around September 15… we’ll tell you more about it in next month’s newsletter! ?? In addition, ETH value also brings us some good news! During this month, US inflation was reported at  8.5%, which was lower than expected. As a result, on 10 August, the price of ETH increased sharply by 8%, from US$ 1,700 to US$ 1,850! It went up to US$ 1,980 on August 15 ??, but sadly dropped for the remainder of the month.
• Tether ?? Tether (USDT) is currently the largest stablecoin in crypto, with a total market cap of $66.6 billion, while USDC is relatively close behind at $54.1 billion. ?? Both stablecoins have a significant amount of their circulating supply on Ethereum’s current proof-of-work (PoW) blockchain, with USDT at $32.3 billion in August.
• Polkadot ?? As of August 23, Polkadot is trading at $7.56 in term of its USD rate with the price change of -2.25%. DOT has a total marketcap of $9,307,964,629 with the 24 hour trading volume of $470,988,236.00. This means Polkadot is currently ranking at 11 in the cryptocurrency market.

World Crypto News… ???

Latin America on the rise 

This month we’ve seen a lot of movement in the Latin American market, specially in Argentina, this comes as no surprise as it is clearly one of the leading countries in crypto adoption. ???? The demand for bitcoin and stablecoins has increased significantly during the last months. Specifically, two interesting projects have been announced in the past weeks!

First, the city of Buenos Aires will deploy Ethereum validator nodes next year. Diego Fernandez, secretary of Innovation and Digital Transformation of the city, stated that this project has an exploratory purpose: the objective is to achieve a deep understanding of the Ethereum chain to be able to regulate this crypto asset in the best possible way. ?? This is not the only blockchain project of Buenos Aires; the municipality is working on a platform to identify citizens with a blockchain-based system and, since last April, citizens can pay taxes with cryptocurrency! ??

On the other hand, in the province of Cordoba, the startup CryptoGranjas has developed a bitcoin mining center powered on agricultural residuals, animal excrement and other industrial waste, which are toxic for the environment ??. The CEO explains that this model captures carbon emissions, removes harmful waste, and transforms them into fertilizers. Under this formula, mining is actually beneficial for the environment! ?? As bitcoin mining has become unpopular among eco-activist for being a highly-cost activity in terms of energy, these kinds of initiatives are crucial to build a more sustainable industry. 

Ethereum Merge and what it means ?

We’re getting closer and closer to the big day! Ethereum, the second-largest cryptocurrency by market value, just ran a final test run before the long-awaited upgrade that’s being considered as one of the most important events in the history of crypto! ?? Aren’t we lucky to witness all this history being made?

Since its creation almost a decade ago, Ethereum has used a proof-of-work model for mining. This model, similar to the one Bitcoin uses, involves complex math equations that massive numbers of machines must race to solve and it requires A LOT of energy. ??

Ethereum has been working to shift to a new model called proof of stake to secure the network. This means that instead of relying on energy-intensive mining, the new method requires users to leverage their existing cache of ether as a means to verify transactions and mint tokens. It uses less power and is expected to allow faster transactions. 

On August 10, the final test was run and it was a complete success! The merge is scheduled to take place on or around September 15. ?? Let the countdown begin! 

The US Federal Reserve’s two cents on crypto

The U.S. Federal Reserve has announced its final guideline that might allow crypto banks to enter the banking system. ?? With Fed approval, crypto banks will no longer require partnerships with traditional banks that serve as their intermediaries, as they will be sidelined, and their financial systems will be opened up to these banks. 

It also issued additional guidance for banks considering activities involving cryptocurrencies. The rules states that they must notify the Federal Reserve beforehand and make sure whatever they do is permitted from a legal standpoint. In a statement, the Federal Reserve mentioned that, while cryptocurrencies could present "potential opportunities" to banks, firms needed to make sure they had systems in place beforehand. ??These systems should ensure the volatile assets did not threaten safety and soundness or consumer protections. 

So… what does this mean? Basically, the door is just starting to open. Cryptocurrency only briefly appears in the extensive guideline. In addition, the Federal Reserve's hasn't expressly granted access to crypto banks, but has definitely taken the first step. In any case, the Fed has warned the public to not get their hopes up, so we’ll keep you posted on how this plays out.

LocalBitcoins News ???? 

LocalBitcoins mobile app crossed 400,000 downloads during the summer and is quickly approaching half a million downloads. This is a good indication that more and more people globally are joining Bitcoin and want to do it through mobile.

We have also got a good amount of feedback from our new website and will continue working hard to make it the best possible experience for you. ??

Well, that’s it for another newsletter. Stay tuned for next month’s newsletter! Did we miss something? Let us know on Twitter, Facebook or Instagram! ????