Editor’s Note: This is the second post in our new series on cryptocurrencies and their relevance among the dark web community. You can read the first installment here.
After a relatively stable weekend, the crypto market was once again severely destabilized after Bitcoin fell under $6,400.
The major pullback caused the market to lose $24 billion in just a day.
On Tuesday morning, the market cap went from $274 billion to $250 billion later in the day.
And despite the upward momentum that Bitcoin had during the previous week, the expectations of breaking the $7,000 resistance did not come to fruition.
BTC’s drop of 5 percent caused a downfall on other digital assets, including the second largest—ETH, which dropped by 10 percent.
The value of Ethereum from a stable price of $480 dropped to $430, within 12 hours.
Despite the slow performance of Bitcoin lately, the value per unit can reach $22,000 by the end of the year, predicted Fundstrat Co-Founder Tom Lee for CNBC earlier this month.
According to the only chief Wall Street strategist to make Bitcoin price targets, any return exceeding $20,000 for Bitcoin by the end of 2018 would be up for around 200 percent. Previously, this notorious Bitcoin expert, famous for his earlier predictions, said that Bitcoin would hit $25,000 by the end of this year, while in March he also gave a statement that the cryptocurrency would reach a price higher than $90,000 by 2020.
In other news, the previous days were marked with a controversial statement from Vitalik Buterin, co-founder of the second-biggest cryptocurrency Ethereum.
In an interview at a TechCrunch event earlier this month, Buterin criticized centralized platforms and said that he hopes they will “burn in hell.” He disagrees with the ability these platforms have to decide which cryptocurrencies “become big.”
The decentralization is what makes these cryptocurrencies so resistant to control by governments and banks, making them perfect for use in darknet markets.
This feature is precisely what makes cryptocurrencies undesirable for governments all over the world. And just recently, Iran has made a move towards censoring crypto exchanges.
Iran Toughens Stance on Crypto Exchanges After Rapid Growth in Bitcoin Usage
Each cryptocurrency exchange in the country has been filtered and crypto users are having a hard time accessing crypto exchanges even with a Virtual Private Network.
The Iranian government has strengthened its position towards Bitcoin, Ethereum and other bigger cryptocurrencies ever since their rapid increase among the population of Iran.
This new method of government censorship is implemented by cutting off Iranians from some of the most important links to the crypto economy.
South Korea Recognizes Crypto Exchanges
On the other hand, last week South Korea officially recognized crypto exchanges as regulated banks.
The government has realized the potential this market holds, and caught up with its citizens who are large contributors of the global cryptocurrency trading market.
Besides, the authorities will also alter the existing regulations to make the development of decentralized cryptocurrencies, such as Ethereum or EOS, much easier.
Will Dash Become the New PayPal?
New blockchain research shows that the Dash network can easily scale near PayPal levels.
According to the Arizona State University research, Dash can scale to 10mb blocks with only a 0.1 percent orphan rate, and its interval is 2.5 minutes, compared to Bitcoin’s 10.
This means that this will drastically increase the capacity of this network, making Dash a rival to the major global payment networks, as 10MB blocks will be able to process approximately 120 tx/sec.