Daily Crypto Update

Hello there! Here is what we are covering today!

đź’°Ethereum rival Polkadot jumps 30% for the last 7 days

Earlier this fall Cardano and Solana took investors’ attention but it seems that the battle for the next “Ethereum killer” is still ongoing. Polkadot’s DOT coin made a significant jump of 30% over the last week and rose 17.58% over 24 hours. Yesterday DOT hit $42, levels the token saw in May when it reached an all-time high of $49.35.

The development team behind the project announced yesterday that it is ready to launch what it is called “parachains”. Parachains are blockchains that are run alongside the main blockchain. They are used for better security and validating transactions.

Being a native token, DOT is a governance token that gives voting rights. The owner could also “stake” DOT and help the network to be more secure. In addition to the new update, the users who want to create new parachains need DOT tokens. That naturally increased demand and the price of DOT.

đź’°The USA is the largest Bitcoin mining market

According to the latest report by Cambridge University, the US has become the world’s largest market for Bitcoin mining. Currently, it holds 35.4% of the global market after the Chinese governance banned the industry. In April 2021 the US was responsible for only 16.8% of the global hash rate, meaning the American share increased by 105%.

Kazakhstan and Russia are also among the top three countries with a market share of 18.1% and 11%. They increased their share by 120% and 61% respectively.

According to the report the global hash rate dropped by 38% in May but soon after that the metrics started to recover and bounced back by 20% in July and August. Michel Rauchs, digital assets lead at the Cambridge Centre for Alternative Finance, said that most of the miners moved their equipment and started operating again.

đź’°Binance to delist Chinese Yuan from its OTC trading desk

The largest crypto exchange, Binance, announced that it will delist the Chinese Yuan (CNY) from its over-the-counter trading desk.

OTC is also known as C2C (customer-to-customer) marketplace that allows traders to place orders without creating an exchange rate and to select a payment method with any fiat currency.

The move is due to the regulatory requirements and the new rules will come into force from 31 December 2021.

In its announcement, Binance also noted that it will block trading in mainland China. The users’ accounts mood will be switched to “withdraw only”.

💰Mike Novogratz and Brian Armstrong take action against Dimon’s criticism of Bitcoin

Yesterday on the main topics among the crypto enthusiasts was the CEO of JP Morgan and his criticism of Bitcoin. Speaking at an Institute of International Finance event on Monday, Dimon called the cryptocurrency “worthless” and openly stated that he doesn’t believe in its fixed supply of 21 million. “You all read the algorithms? You guys all believe that? I don't know, I've always been a skeptic of stuff like that.” - said the CEO.

These words throw the bomb and Coinbase CEO Brian Armstrong went on Twitter to say that “CEOs without a science/engineering background are going to be at a disadvantage in the coming decades,” because “software is eating the world, changing every industry.”

Mike Novogratz, the CEO of Galaxy Digital joined the crowd and wrote “So strange. For a man who has done a brilliant job running a giant bank, his answers around [Bitcoin] are sophomoric and he keeps doubling down on them.”

Despite Dimon’s skepticism of Bitcoin many investors want to invest in the new asset class. The high demand forced JP Morgan to offer five crypto-related products that give exposure to Bitcoin, Bitcoin Cash, Ethereum, and Ethereum Classic.