1 Year Until Bitcoin Halving – BitTalk #12
In this week’s episode of BitTalk, your weekly bite-sized Bitcoin news, we look at the CFTC coming after Binance, the potential for Bitcoin ETFs, interest rate hikes and Bitcoin development on Lightning.
In recent times, the US regulatory landscape has responded to the evolving cryptocurrency market, particularly regarding Binance and the CFTC. The ongoing battle between the SEC and the CFTC over jurisdiction in the crypto space has led to some uncertainty. However, it is widely agreed that Bitcoin is classified as a commodity. This could pave the way for a Spot Bitcoin ETF in the near future, which will be approved by the SEC, while the CFTC will be involved in regulating futures manipulation.
Comparison of Bitcoin ETFs with Gold and Silver ETFs
Looking back at the launch and performance of gold and silver ETFs, it is clear that these assets experienced significant appreciation after their introduction. For example, the SPDR Gold Shares ETF experienced a 309% increase over eight years, while the iShares Silver Trust saw a 255% increase in just five years. With Bitcoin’s fundamentals stronger than gold and silver, the potential introduction of a Bitcoin ETF could generate even greater returns for investors.
The role of public miners in hash rate growth
The Bitcoin hash rate has grown exponentially, with the most recent spike reaching 350 terahashes over a 7-day moving average. To better understand this growth, it is important to consider the role of public miners who have deployed new, more efficient mining equipment. Many of these public miners had planned to implement new ASIC miners in 2023, which would significantly increase the hashing power of the network. This could potentially lead to the highest hash rate growth in the last five years, further fueling the cryptocurrency market.
Navigating market uncertainty and interest rate increases
The current macroeconomic climate is characterized by uncertainty, as demonstrated by the market’s pricing in interest rate increases, pauses and interest rate cuts at the same time in June. This volatility can have a direct impact on the cryptocurrency market, causing fluctuations in value across assets such as Bitcoin. But despite this uncertain environment, many investors continue to stack up and remain optimistic about the long-term potential of the market.
The growing ecosystem of Lightning Network apps
The Lightning Network has seen increased adoption and innovation in recent years. Micro-payment Lightning apps like Stacker News have shown that it is possible to create engaging and informative platforms using this technology. As the Lightning Network continues to evolve, it is expected that more user-friendly applications will emerge, providing a seamless experience for both new and seasoned cryptocurrency enthusiasts.
Hear Nick, James and Akiba’s suggestions for these issues, as well as Michael Saylor’s 22% discount loan from Silvergate and more in this week’s BitTalk via the video above.
