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BEQUANT Crypto&Coffee
Bitcoin continued to trade higher in the wake of the development from the previous day as market participants continued to digest the news that Tesla became the latest company to diversify into digital assets. However, the biggest question is: will Tesla add Doge to the balance sheet after all of the memes and love Elon has shown towards the cryptocurrency? To wit, Doge is actually just shy of $10 billion in market cap and as it stands it is set to over take Bitcoin Cash to move onto 10th place on CoinMarketCap list. But something that isn't mentioned enough is the underlying tokenomics and specifically, the unlimited supply. Something that, especially Bitcoin maximalists are strongly against. However, Dogecoin creator Jackson Palmer, once opined that placing a cap on the final number coins has the potential to make the rewards for mining Dogecoins so small (or non-existent) that there won't be enough miners to keep the system running. Furthermore, the sad reality is that a lot of the hash rate on alt-coin networks comes from multi-poolers who are mining coins then instantly cashing out—they just go after whatever is most profitable. As block rewards get lower and lower over time, these guys disappear and move on to a newer, more profitable alt-coin. It is worth noting that Doge and Litecoin hashrate has been in lockstep for sometime, athough mining difficulty for Doge remained significantly lower, even in spite of the recent upside. What the upside by Doge did result in is that mining profitability has risen to the same level as that of Litecoin. Time will tell whether the trend is sustainable but availability of Doge on DEX and other liquidity incentives will only drive the interest. In other news, CoinDesk writes that crypto lender BlockFi has launched its bitcoin trust with an annual fee that falls 0.25% below what industry-leader Grayscale Bitcoin Trust (GBTC) charges investors. With a 1.75% management fee, the fund started taking subscriptions last Friday and the fund has nearly $30 million in assets under management, according to its website. Roughly six to 12 months from now, the trust should be available on over-the-counter markets making it tradable through brokerage accounts. Elsewhere, Curve Finance is making its way to another blockchain – Polkadot. The decentralized finance (DeFi) money market is building a cross-chain implementation to run on the Polkadot parachain Equilibrium. Once implemented, the automated market maker (AMM) will exist on both Ethereum and Polkadot. The cross-chain project comes as transaction fees continue to soar on Ethereum, the preeminent blockchain for DeFi. As CoinDesk reported, the average transaction fee broke north of $20 last week. As a reminder, SushiSwap's roadmap for 2021 also revealed integration with Polkadot.
