Headlines
2024 is the "Summer of Bitcoin"
Frank Chaparro, director of special projects at The Block, and Laura Vidiella of MNNC Group wrote that if 2020 was the summer of DeFi, then 2024 is the summer of Bitcoin. Since the beginning of the year, Bitcoin's dominance has risen 10%, reaching 59% on August 5th - a three-year high. Meanwhile, DeFi's dominance has fallen sharply, recently hitting its lowest level in three years. The article points out that this does not necessarily mean the "death" of DeFi. In July, decentralized exchanges accounted for 13.9% of trading volume, an all-time high. In addition, after the spring surge, the number of new tokens launched on DEXs remained stable throughout the summer, thanks in part to the explosive growth of memecoin on Solana. Meanwhile, as of 15 days left in the month, DEX futures trading volume as a percentage of CEX futures trading volume is 6.6%.
Harris' economic agenda focuses on reducing costs
U.S. Vice President Harris has vowed to build an "opportunity economy," unveiling an economic agenda that seeks to address the burden of inflation by offering sweeping new subsidies and tax breaks for poor and middle-class Americans. The plan, Harris' first major policy initiative early in her campaign, is designed to address one of her biggest weaknesses: voter dissatisfaction with soaring prices in the wake of the pandemic. The proposal includes radical and expensive measures such as a $25,000 subsidy for first-time homebuyers, a major expansion of tax credits for parents, and a cap on out-of-pocket costs for prescription drugs. Harris also proposed measures to prevent price gouging at grocery stores and reduce the cost of buying health insurance on the health insurance marketplace. "As president, I will focus on creating opportunity for the middle class and promoting their economic security, stability and dignity," Harris said Friday in Raleigh, North Carolina, a state Democrats are expected to capture again after Biden dropped out of the race. She vowed to "make lowering costs and increasing economic security for all Americans a top priority."
Quotes
As of press time, according to Coingecko data:
BTC's latest transaction price is $58,491.67, with a daily change of -1.5%;
The latest transaction price of ETH is 2,596.53 yuan, with a daily change of -2.1%;
BNB's latest transaction price is $518.17, with a daily change of -2.1%;
SOL's latest trading price is $138.53, with a daily change of -4.6%;
DOGE's latest transaction price is 0.0995 yuan, with a daily change of -4.1%;
XPR’s most recent trading price is $0.563, with a daily change of -1.2%.
policy
▌Bank of Ghana releases draft rules for cryptocurrency exchanges
On August 16, the Central Bank of Ghana released draft guidelines on digital assets while soliciting feedback from the public and industry stakeholders on upcoming crypto regulations. According to the Central Bank of Ghana, data collected over three years shows a significant increase in interest in cryptocurrencies in Ghana. Ghana therefore intends to implement laws targeting risks such as money laundering and terrorist financing, fraud, and take measures to protect consumer rights. The Central Bank of Ghana has proposed an eight-pillar cryptocurrency regulatory framework that mainly strengthens registration and reporting requirements for cryptocurrency exchanges or virtual asset service providers (VASPs).
Dubai Court Recognizes Cryptocurrency as a Valid Method of Salary Payment
The UAE has made a significant update to its judicial approach to cryptocurrencies, with the Dubai Court of First Instance recognizing that wages paid in cryptocurrency are valid under employment contracts. Irina Heaver, a partner at UAE law firm NeosLegal, explained that the ruling in Case No. 1739 of 2024 represents a departure from the court’s earlier position in 2023, when a similar claim was dismissed because the cryptocurrency involved lacked an accurate valuation. Heaver believes this demonstrates a “progressive approach” to integrating digital currencies into the country’s legal and economic framework.
Blockchain Applications
▌LI.FI integrates cross-chain transaction protocol THORChain
The cross-chain bridge protocol LI.FI integrates the decentralized cross-chain transaction protocol THOR Chain to achieve seamless exchange of Bitcoin on the EVM chain. In addition, THOR Chain has been added to the cross-chain supported by LI.FI and provides users with the best rates for token exchange and cross-chain transfers. LI.FI also plans to expand support for Bitcoin L2 solutions.
Hyperledger's new lab Zeto launches Ethereum privacy solution
Hyperledger's new lab Zeto has launched an open source privacy solution designed to address privacy issues for enterprises on the Ethereum blockchain. Developed by Kaleido, Zeto uses zero-knowledge proof (ZKP) technology to provide multiple levels of privacy protection for Ethereum by introducing a Bitcoin-like token design. This includes privacy features from anonymous senders and receivers to hiding transaction amounts and history. The emergence of Zeto responds to institutional interest in permissioned versions of Ethereum, especially in projects such as DREX, the Brazilian Central Bank Digital Currency (CBDC) project, where privacy issues have caused project delays. Zeto's unique design is similar to Bitcoin's UTXO model, different from Ethereum's traditional ERC-20 token standard, and provides higher privacy protection for enterprise users.
Cryptocurrency
▌Opinion: Bitcoin’s recent performance proves that it is not suitable to be a reserve asset
Gold advocate and economist Peter Schiff said that Bitcoin's recent performance shows why it is not suitable to be a reserve asset. When everything is falling, Bitcoin falls the most. How can you use a reserve asset that falls more than the asset you are hedging? In addition, Peter Schiff also said that the right thing for the Federal Reserve to do now is to raise interest rates further and let everything take its course. Of course, the stock market will collapse, the real estate market will collapse, and we will have a hard landing. This will be a recession. But unfortunately, this is what we need. Not because it is interesting, but because it is necessary. Now, if you don't want to experience this necessary collapse, then the Federal Reserve should not make a deal with the devil, because the devil will come to collect debts sooner or later.
▌JP Morgan analyst: Bitcoin mining profitability fell to historic low in August
JPMorgan analysts pointed out that as the network computing power increased in the first two weeks of August, the profitability of Bitcoin mining fell to an all-time low. Despite this, the network computing power share of US listed miners rose to 26%, a new high. JPMorgan also said that the Bitcoin network computing power has increased by about 1% since August, reaching an average of 621 EH/s, but it is still 30 EH/s lower than before the halving. In addition, the price of Bitcoin has fallen by about 5% since the halving, but it is still up 35% since the beginning of the year, an increase of 104% year-on-year.
▌Germany's Federal Office for Information Security recommends using hardware wallets to counter the risk of cryptocurrency theft
Germany's Federal Office for Information Security (BSI) recommends that cryptocurrency users use hardware wallets to protect their digital assets. BSI points out that hardware wallets can keep users' cryptographic keys in offline storage and are the safest storage method. In contrast, storing assets on third-party platforms such as exchanges or using mobile phones and personal computers for self-custody poses greater security risks and is vulnerable to hacker attacks. This recommendation comes against the backdrop of an increase in cryptocurrency thefts. In the first half of 2024, the cryptocurrency industry lost nearly $1.6 billion due to attacks, including an increase in phishing attacks and ransomware. BSI emphasizes that using hardware wallets can effectively reduce these risks.
Important economic developments
▌Bank of America: The market is pricing in four rate cuts this year, and I don’t think Powell will go against market pricing
Fed Chairman Powell is scheduled to speak on the economic outlook at 10:00 p.m. Beijing time next Friday. Bank of America predicts that Powell's speech at the Jackson Hole conference is unlikely to have much impact on the dollar. The bank's analysts pointed out that funds are still optimistic about the strength of the dollar, which may bring downside risks. Bank of America said that the market has priced in four rate cuts this year, and we do not think Powell will go against market pricing. He will retain the option of aggressive easing, depending on the data before the September meeting.
▌Next week's global central bank annual meeting: The US economy is not afraid of interest rate hikes and ignores recession expectations
The theme of this year’s Jackson Hole symposium, “Reassessing the Effectiveness and Transmission of Monetary Policy,” will address the U.S. economy’s continued strength despite more than 5 percentage points of interest rate hikes and its defiance of numerous recession forecasts. Monetary policy may have less impact on the real economy than in past interest rate cycles, both because of the legacy of low interest rates that prevailed from 2009 to 2022 and because of structural changes in the economy. Millions of homeowners still hold 30-year mortgages with interest rates below 4%, while businesses are similarly taking advantage of ultra-low interest rates to refinance and extend loan maturities ahead of rate hikes. In fact, many of the largest U.S. companies are net interest earners.
Golden Encyclopedia
What is Zero-Knowledge Proof?
Zero-knowledge proof (ZKP) is a cryptographic method that allows multiple parties to verify the authenticity of a statement without revealing information other than the statement itself. Many blockchains leverage ZKP to improve the security of interactions involving sensitive data. As a result, participants in a blockchain with ZKP can interact with greater confidence because private information is less likely to be leaked or exploited by malicious actors.
Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.
