A lot has happened this past month in the world of crypto. Many changes have occurred that might leave the average investor wondering what has happened and why. Though it can be tricky to navigate, here at Bitcoinist we have managed to narrow these events down to the three most impactful.
The ‘London Hard Fork’
Ethereum Improvement Proposal 1559, or EIP-1559 for short, was the eleventh fork to occur on the Ethereum blockchain. Past updates have changed the way the blockchain opporates, but not quite like EIP-1559.
Gas prices have plagued Ethereum for a while now, and as a result, many are deterred from using the blockchain. EIP-1559 aims to change this issue, and so far, it has.
Related Reading | The Major Ethereum Change Explained: All About The ‘London Hard Fork’
EIP-1559 has replaced miners with algorithms. In short, this basically means that transaction prices are going to be a lot cheaper. Additionally, ETH will rise in price as gas fees are being burned instead of being given to miners. As a result of this, block 12,965,263 marked ETH’s first deflationary block to occur on the ETH blockchain.
NFTs
Non-Fungible Tokens (NFTs) are the latest fad to hit the crypto world, and more and more are jumping on the bandwagon. More specifically, digital art is making a headway. NFTs have different functions, but the particular aspect of digital art is what most people find most appealing about NFTs.
Though this might come as a strange way to invest, it is proving to be incredibly lucrative for some. A platform called OpenSea is one of the most popular trading platforms for NFTs on the Ethereum blockchain. Major celebrities such as Snoop Dogg, Jake Paul, Paris Hilton, Eminem, and many more use platforms such as this to buy, sell, create, and trade NFTs.
Related Reading | Understanding The Recent NFT Hype
There is really no end to the amount and style of artwork present on these platforms. Often times, artwork will be ‘minted’ in collections, and holders in these collections could potentially make a hefty profit, especially if a celebrity buys in. Currently, one of the most popular collections comes from an artist named Gyre. These pieces are generated by algorithms, and meant to capture what can only be described as “geometric ecstacy.” Beautifully congruent and mesmerizing, pieces in this collections jumped from about 0.2 ETH to 16 ETH in about a week (that’s roughly $635 to $50,000).
U.S. Crypto Legislation
Lastly, major U.S. legislation could have a huge impact on how crypto is used and recognized inside of the U.S. The “INVEST In America Act,” which mostly has nothing to do with crypto, contains a few phrases that might make the average crypto user a little uneasy.
One in particular stands out above the rest: the use of the word ‘broker.’ Two amendments were drafted following the passing of the bill in the Senate to better define the use of ‘broker.’ Parties who proposed the amendments critiqued the use of ‘broker’ in the bill as it was thought to be far too broad. Despite this, both amendment attempts failed.
Related Reading | Breaking Down The US Infrastructure Bill And Its Impact On Crypto
Essentially, the bill’s aim in its relation to crypto is to figure out a means to tax crypto users more effectively. Quite frankly, the purpose of taxing crypto in respect to this bill is not to find means of regulation, but rather to fund American infrastructure in this massively expensive bill. The bill is currently projected to add more than $500 billion to the nation’s national debt.
Crypto on rise as Bitcoin continues towards all-time high | Source: BTCUSD on TradingView.com
Irrespective of this legislation, the market continues to grow. Investors seem to be unshaken by recent legislation. Simply put, more good has been happening in the market than bad, and the U.S. government’s attempt to tax crypto comes with their inability to do so effectively.
Featured image from iStockPhoto, Charts from TradingView.com