Bitcoin Taproot UPGRADE – Pass Infrastructure Support Package

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2022-01-14 05:14:09

On-chain situation

Yesterday, Bitcoin rallied back to $66,000 and wanted to break the old top. ETH also continued to rise to create new highs. Many altcoins also grew.

The on-chain situation has not changed much. The percentage of Bitcoin profitable updated at the price of 61,000 USD is more than 94%. Profitability of BTC remains high.

The amount of BTC withdrawn is higher than the amount of BTC deposited. The overall trend of BTC continues to decline across exchanges.

The Funding rate has cooled down and remains positive.

However, the volume of futures orders is still as high as when BTC was at $65,000 on April 4.

Recently, the Coinbase Premium Gap index has increased showing that the price on Coinbase is higher than that of Binance. This is a sign of institutional investors buying BTC.

BTC’s other on-chain indicators are still pretty quiet and not yet. The market in the time of growth may still have slight correction peaks. But if BTC continues to hold its current price zone, there will be more opportunities for altcoins to grow.

BTC’s Taproot update taking place next week is also getting attention. This was Bitcoin’s first major upgrade since August 2017, which saw the birth of Segregated Witness (SegWit) and led to the launch of the Lightning Network.

Bitcoin will undergo a Taproot soft fork update aimed at improving the network’s privacy, efficiency, and smart contract capabilities. For transactions or wallet addresses that need multiple signatures to approve (like the roots of a tree), Taproot will also implement Schnorr Signature, an algorithm that allows users to combine multiple signatures into one for a single transaction. unique (similar to the taproot of a tree). This will reduce the inherent difference between regular transactions and multiple signatures.

Previously, each signer for this multi-signature wallet was distributed and recorded on the blockchain, after the Taproot update, the signatures will be aggregated into one signature. Therefore, the blockchain will record and display the source of this signature, making it more secure for the component signatures.

Maybe updating Taproot won’t affect the price of BTC much. However, it is also an update that users are interested in in the development of this largest coin.

US passes 1.2 trillion USD support package and “broker” law related to BTC

The US $ 1.2 trillion support package updated by Thuan recently has changed. This support package has been passed by Congress, signaling a historic moment for crypto in the United States. In drafting the legislation, the senators inserted a provision that changed the Internal Revenue Service’s definition of “broker” to include institutions that trade crypto assets.

This means that, if President Biden signs the bill, centralized cryptocurrency exchanges like Coinbase or even decentralized exchanges will also be considered “brokers” and will be required to report. their transactions directly to the IRS (Internal Revenue Service – US Tax Administration). However, in reality, decentralized exchanges do not know the user’s identity, so they cannot control or obtain information to report to the IRS.

Brokers will be required to submit customer information including their name and address when a client trades over 10,000 USD. It is thought that the government will be able to raise an additional $28 billion in taxes through cryptocurrencies due to the proposed reporting requirements.

This regulation passed does not currently affect the market price of BTC. However, this law will greatly hinder the development of the crypto market in the United States. When the president signs and passes the law, it will not be until 2024 that this law will begin to be implemented in the US. Therefore, people still have time to be able to effect changes with the law attached to the support package.

Senator Lummis, one of Bitcoin’s strongest supporters in the Senate, continues to voice his convictions. She believes bitcoin is the only cryptocurrency here that has been around for the longest time.

Aside from BTC, she doesn’t care much for coins other than stablecoins. When asked for her thoughts on the state of stablecoin regulation in the industry, Ms. Lummis said that if only FDIC-insured banks were allowed to participate, it could stifle innovation in the industry. She also stated that private banks and “private institutions should be involved in providing stablecoins. Because of that, the crypto market can thrive in the United States.

Or the Mayor of New York City, Eric Adams, wants to receive his salary in BTC and support crypto development. Recently, he also suggested that schools should include cryptocurrency studies in their curricula. Describing cryptocurrencies as a new way to pay for goods and services, Mr. Adams even urged local schools to impart new ways of thinking to students through blockchain technology and digital assets. number.

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