The World Of Crypto: Three Most Impactful Events The Past Month
The world of crypto has had quite an eventful month. Many changes have occurred that might leave investors pondering what has happened and why. Though it can be tricky to navigate through it all, here are three important events that went down.
Ethereum ‘London Hard Fork’
Ethereum Improvement Proposal 1559, (EIP-1559), was the eleventh fork to occur on the Ethereum blockchain. Past updates have changed the way the blockchain operates, 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 been succesful.
EIP-1559 has replaced miners with algorithms. It 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 back to miners. As a result of this, block 12,965,263 marked ETH’s first deflationary block to occur on the ETH blockchain.
NFT Craze
Non-Fungible Tokens (NFTs) are the latest fad in the crypto world, and seems like almost everyone, including Visa is 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.
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
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 specifically 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.
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.
Regardless of the 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.
