A well-known blockchain analytics company has issued a report commenting on this week's crash of the prices of cryptocurrency, including bitcoin. The report suggests there are significant differences between this week's price decline and declines in prior years such as the major price declines in March 2020 and December 2017. According to the report, among other things the differences include the very large investments in bitcoin that have taken place since those prior declines. The report also notes that during this week's price decline, "bitcoin inflows into exchanges are relatively low compared to past sell-offs," which "suggests that much of the selling is from people with assets already on exchanges, who tend to be retail investors."
Continuing the trend of bitcoin analysis, a research report issued this month by a digital asset financial services firm provides an analysis of the long-standing inquiry regarding the acceptability of the Bitcoin Network's energy consumption. While recognizing the subjective nature of the question, the report draws comparisons of the network's energy consumption to the energy footprints of long-established asset classes represented by the gold industry and the banking system. The report suggests that the energy used by each of the latter asset groups is more than double that consumed by the Bitcoin Network.
In other news, according to recent reports, a Wall Street banking giant has joined the Paxos Trust network utilizing blockchain technology in a move to make same-day stock trade settlements available to its clients, pending its approval as a clearing agency. Paxos previously applied its Ethereum-based system to effectuate same-day settlement capability for two other financial services firms in March of this year, according to the reports.
For more information, please refer to the following links:
- The May 2021 Cryptocurrency Crash Explained: Selling by Retail and not Institutions is Driving Crypto Price Plunge
- On Bitcoin's Energy Consumption: A Quantitative Approach to a Subjective Question
- Banking system consumes two times more energy than Bitcoin: research
- Bank of America Joins Paxos Network Eyeing Same-Day Stock Trade Settlement
- Bank of America partnership with Paxos will allow same-day trade settlements
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