Why Bitcoin, Ethereum, and Dogecoin All Fell This Week

Why Bitcoin, Ethereum, and Dogecoin All Fell This Week

What happened

Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), and Dogecoin (CRYPTO:DOGE) are down 9.38%, 14.56%, and 17.44% respectively in the past seven days as of 9:00 a.m. EDT. They are now trading at $46,000.54, $3,378.97, and $0.2479 per coin respectively. After a record bull recovery, cryptocurrencies are witnessing significant fatigue amid more regulatory scrutiny, internal strife, and “altcoin rotation,” which is similar to sector rotation for stocks.

So what

When Bitcoin’s market cap approached $1 trillion, both governor Stefan Ingves of Riksbank (Central Bank) Sweden and governor Alejandro Diaz of Bank of Mexico criticized the currency as a stable medium of exchange, citing its significant trading volatility.

As for Ethereum, the coin is witnessing a low-scale “civil war” after the network became increasingly unfriendly to miners due to co-founder Vitalik Buterin’s desire to reducing its energy consumption. Out of a total of around 9,000 Ethereum nodes, or computers running software to keep the public ledger in order, 6,500 have disappeared from the network in the past two weeks. They’ve likely hard-forked and migrated to a new chain along with a subset of dissatisfied miners.

Lastly, Dogecoin is facing a great deal of uncertainty after the chairman of the U.K.’s Financial Conduct Authority, Charles Randell, targeted celebrity influencers such as Kim Kardashian for promoting high-risk altcoins that could very well turn out to be scams. Dogecoin is one of the most heavily promoted altcoins out there, touted by celebrities such as Tesla’s CEO, Elon Musk, and the billionaire owner of the Dallas Mavericks, Mark Cuban. What’s more, a meme competitor coin called Wifedoge seems to have diverted investors' attention of late with its sudden rise.

Finally, keep in mind that investors have been pulling funds out of major cryptocurrencies all week to participate in the Solana (CRYPTO:SOL) mania. The decentralized applications token has risen to around $200 apiece from roughly $1.50 at the beginning of the year.

Now what

The overall market cap of cryptocurrencies has nearly doubled since their nadir in May and is long due for a pullback. Even though blockchain innovations, such as the decentralized finance space, are rapidly gaining traction and may grow to as much as $800 billion next year, it can take quite some time for the market to take off again. So consider buying the dip in the meantime.

Gas Fee on Ethereum: Everything You Need to Know

Gas Fee on Ethereum: Everything You Need to Know

Ethereum gas is the life force of Ethereum but why is it important and, what role does it play in Ethereum Community?

Ethereum gas and gas costs are among the themes that unavoidably come up when there is a talk about the world’s second-biggest blockchain network. Ethereum gas is a fundamental component of the network that makes the Ethereum (virtual) machine tick. In this article, you get a closer look at what gas is and why it has turned into a subject of dispute inside the Ethereum community.

What are the basics of Ethereum gas?

At its center, there is nothing unique with regards to Ethereum gas. The term alludes to the charges paid with the goal for exchanges to be prepared on the Ethereum network. It is evaluated in a unique unit called gwei, which is a little category of Ethereum’s local token, Ether (one gwei is equivalent to 0.000000001 ETH). So basically, exchange charges on Ethereum are paid in Ether like Bitcoin exchange expenses are estimated in BTC. So for what reason is this additional degree of intricacy? Why thought of a different term like gas, in case it’s Ether?

How Ethereum differs from Bitcoin?

While Ethereum was roused by Bitcoin and was based on the standards spearheaded by the OG blockchain convention, it was intended to fill an altogether unique need. Ethereum was intended to be a broadly useful blockchain, a decentralized PC equipped for running a wide range of applications. This implies that contrasted with Bitcoin exchanges that just work with basic exchanges of significant worth, Ethereum exchanges are utilized for substantially more, for instance, for sending or setting off keen agreements that oversee decentralized applications. Having a different unit for exchange charges is a truly helpful method of estimating the computational expense of utilizing the Ethereum Virtual Machine. The EVM is the thing that empowers smart contracts to be run on Ethereum.

Everything you need to know about Ethereum gas fees

The Ethereum gas limit

Gas expenses are one of the instruments remunerating network members for accomplishing computational work on the Ethereum network. Clients who need to move ETH or run contracts on Ethereum incorporate such expenses to boost excavators to measure and approve their exchanges quicker. Clients can likewise draw a gas limit, which demonstrates the amount they will spend on an exchange. Any gas that stays unused in exchange is gotten back to the client. As far as possible additionally fills in as a shield against troublemakers spamming the networks, as it forestalls incidental or hostile infinite circles or other misuses of computational assets due to unoptimized code.

Ethereum gas cost

In present times, the rising gas cost is one of the main causes of worry inside the Ethereum community. Since diggers are intrinsically boosted to deal with exchanges that incorporate higher charges, clients need to pay more gas assuming they need to stay away from extended holding up periods. The new expansion in activity on Ethereum joined with the network’s restricted versatility has just exacerbated the issue. As per Etherscan, the normal Ethereum gas cost right now remains at around 54 gwei, which is almost multiple times higher than whatever it was a year prior. Also that the cost of Ether presently sits at around an unequaled high of more than $2,300, which makes exchanges on Ethereum considerably costlier.

The high gas cost is one reason driving clients and blockchain tasks to look for Ethereum choices (connection to the Ethereum options piece). Recently, Enjin, a blockchain platform for non-fungible tokens, reported that it was moving from Ethereum to a Polkadot para chain, referring to the high gas charges as the essential reason for the choice.

In the meantime, the Ethereum designer’s community is thinking of various approaches to settle these issues. Extensive endeavors are centered around alleged Layer 2 arrangements like ZK rollups and Plasma, which means, to bring down the heap on the principle Ethereum chain, further developing handling limits and bringing down expenses.

Yet, the primary expectation lies with the Ethereum 2.0 venture, which is set to, in addition to other things, supplant Ethereum’s energy-serious proof-of-work algorithm with a proof-of-stake agreement. The progress is relied upon to essentially decrease the measure of computational work expected to measure and approve exchanges on Ethereum.

In conclusion, it is certain that Ethereum gas will continue to be an essential part of the network and will assume a major part in deciding Ethereum’s utility and usability.

Survey reveals big shift in Australians investing in Bitcoin and Ethereum

More female investors are dipping their toes in the crypto markets.

The Bitcoin (CRYPTO: BTC) price has stabilised following yesterday’s 11% crash.

One Bitcoin is currently worth US$46,290 (AU$62,554). That’s down slightly less than 1% over the past 24 hours.

Ethereum (CRYTPO: ETH), the world’s number 2 crypto by market valuation, is up just under 1% at time of writing, after losing more than 12% yesterday.

One Ether is currently worth US$3,500.

But don’t let the calm waters of the past 24 hours fool you.

Bitcoin remains notoriously volatile

Sticking with the world’s largest crypto, Bitcoin fell 58% from its 16 April 2021 record highs until it began to rebound on 20 July.

Since 20 July it’s gained 56%, leaving it some 29% below its all-time highs. (If an asset falls by 50%, it needs to gain 100% to get back to even.)

However, according to a new survey by Australian cryptocurrency exchange CoinSpot and market research agency Ruby Cha Cha, that kind of volatility isn’t likely to dissuade the majority of Australian investors from buying Bitcoin or other cryptos.

What did CoinSpot’s survey reveal about Bitcoin volatility?

CoinSpot surveyed 607 Aussie investors to look at their behaviours and broader trends during the 2021 crypto boom.

As for Bitcoin and Ether’s volatility, 71% of respondents said they’re “willing to accept moderate to high risk when investing in crypto”.

CoinSpot reported that Aussie investors’ increased interest in cryptocurrencies is driven by factors including, “a declining appetite for credit cards and traditional financial institutions, concerns around inflation and interest rates, as well as a positive outlook on the Australian economy as it returns to pre-pandemic levels”.

As you might expect, younger investors are more likely to invest in cryptocurrencies than older investors. The survey showed a doubling of crypto investing among Generation Z, Millennials and Generation X since November 2020.

The younger generations also have more faith in Bitcoin and altcoins. 42% of Generation Z investors and 35% of Millennial investors surveyed said they “have a strong trust in crypto”.

Across all age groups, almost 20% of Australian bought, sold, swapped or traded cryptos in the past 4 years.

Additionally, 36% of respondents said “it’s likely they will own crypto in the next five years”.

Some other key findings from the survey showed significant changes in the way Aussies invest in Bitcoin, Ether and other cryptos over the past 4 years include:

Rather than going in blind, 76% of Australian crypto investors say they have “a fair amount of knowledge” of crypto.

1 in 2 Australians understand that crypto means a “digital asset” or “currency”.

75% of Australian investors use an app to invest in crypto.

34% of Australian investors trade crypto for fun.

Female crypto investors have increased from 27% to 33%.

A word from CoinSpot’s management

Tim Wilks is the marketing executive at CoinSpot.

Addressing the survey results he said:

These survey findings have indicated a real shift in attitudes towards crypto, especially if we compare attitudes between the 2017 and the 2021 crypto bull markets. As well-known cryptocurrencies like Bitcoin and Ethereum, plus high-interest altcoins create waves in the crypto market, we’re excited to see more everyday Aussies getting involved.

Whether you’re a veteran crypto investor yourself or still sitting on the sidelines, don’t lose sight of the fact that Bitcoin and other cryptos can lose value just as fast, or faster, than they gain it.