Dacxi Crypto Wealth | This Week In Crypto | 5 - 11 January

This Week In Crypto | 5 - 11 January

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Dacxi

Jan 10, 2022

5 MIN

With USD-backed stablecoin in plans, PayPal is making further moves to cement its position in the crypto market amid increasing competition in the payments space. 

A group of lawmakers in the United Kingdom are coming together to create a crypto advocacy group. It shows that though one faction of British lawmakers is in favor of implementing harsh laws to rein in the crypto industry in the country and control it from growing beyond a certain limit, some lawmakers want the laws to aid the industry, so that crypto space will continue the innovation blitzkrieg.

Amid rising ETH gas fees, Vitalik Buterin, Ethereum's co-founder, has come up with a new idea to tackle it, which proves that Vitalik Buterin is aiming to catch the "Tiger by its Tail" this time.

Also, the legendary investor & ex-Bitcoin critic Ray Dalio, who had a change of heart about Bitcoin in 2021, suggests dedicating 1% to 2% of the portfolio to Bitcoin. El Salvador continues its Bitcoin-friendly initiatives with 20 new laws under progress to create a legal framework for Bitcoin bonds. Let's dive to know each of this news in detail.

 

Welcome to another edition of crypto updates. As we have always said, no week goes by in the crypto world without anything interesting. This week, too, many interesting activities took place in the crypto space.

 

PayPal is Exploring to Launch Its Own Stablecoin

PayPal is reportedly going to launch its own stablecoin in a bid to explore the growing cryptocurrency market. The coin named PayPal coin will be backed by the U.S. dollar.

With this move, the company aims to get deeper into the cryptocurrency market. In 2020, the company allowed users to buy and sell crypto and make transactions on its platform; however, the services are currently limited only to the U.S. region.

Jose Fernandez da Ponte, PayPal's senior vice president of crypto and digital currencies, said “We are exploring a stablecoin; if and when we seek to move forward, we will, of course, work closely with relevant regulators.”

Although the digital asset of the payments giant is still in the making, the name and features are subject to change before it gets officially rolled out. The company has also not announced the date of the launch of its stablecoin.

 

UK Lawmakers Join Hands to Form a Crypto Advocacy Group For Parliament

In a significant development, UK lawmakers have joined hands to form a crypto advocacy group and support innovation in the crypto industry.

Dubbed as the Crypto and Digital Assets Group, the group consists of Members of the House of Lords along with the UK MPs. Lisa Cameron, an MP for the UK's House of Commons, is reportedly chairing this group.

Lisa said that they will work on creating laws and rules supporting the overall innovation of the crypto industry. The cross-party advocacy group also aims to protect investors from financial crimes.

Several crypto companies operating in the UK have been lobbying for bringing in regulations on time. They have also criticized the country for being very slow in creating the right framework for crypto laws, forcing them to move their businesses to other countries.

But now, the formation of the crypto advocacy group shows that lawmakers are interested in cryptocurrencies and also want to regulate the industry to protect investors from unnecessary risks.

 

Ethereum Co-founder Proposes New Changes to Ethereum Fees

Vitalik Buterin, the co-founder of Ethereum, has proposed a new 'multidimensional' approach to gas fees in an attempt to improve the current few structures of the network.

The proposed fee structure called the “Multidimensional EIP-1559,” was proposed by Buterin in a blog post on January 5. In this post, he said that different resources in the Ethereum Virtual Machine (EVM) have different demands in terms of gas usage.

He has proposed two potential fairly complicated solutions using “multidimensional” pricing. In the first option, the base fee is a fixed-per-block network fee included in the Ethereum Improvement Proposal (EIP) 1559 algorithm. It will calculate the gas fees for resources like call data and storage by dividing the base fee for each unit of the resource by the total base fee.

The second option will set a base fee for using resources but includes burst limits on each resource. It will also include priority fees, which are set as a percentage and calculated by multiplying the percentage by the base fee.

Overall, Buterin thinks that by charging different gas prices depending on the resource used, users will benefit from optimal gas costs.

Allocating 1% to 2% of Your Portfolio to Bitcoin is Reasonable, Says Ray Dalio

It is reasonable for everyday investors to hold a small amount of bitcoin, says billionaire investor Ray Dalio.

The hedge fund manager is also bullish on Bitcoin in the current year and noted various reasons for the positive outlook and Bitcoin’s impressive growth. Recently, in an interview with “The Investors Podcast,” he talked up gold and BTC as an inflation hedge.

When asked by co-host William Green about what a sensible portfolio allocation for a person would be, he said that he has the same opinion as fellow billionaire Bill Miller’s suggestion that 1%–2% is the right allocation.

Earlier, Dalio was a crypto skeptic as he had criticized digital assets for their volatility. He also called bitcoin a bubble in 2017. However, in 2021 he changed his perception about digital assets saying he was impressed that Bitcoin has survived the past decade and also reiterated that he is not favorable to cash.