Introduction

Hello everyone, Lumi’s team with you again. This week there were no dramatic price increases or any news that flew around the world like, for example, when the adoption of bitcoin was announced in El Salvador. On that note, we could close our digest and not read further. But a few interesting things still happened in the industry. Speaking of the most important news: Bitcoin has received an update. The Taproot update has been activated on the Bitcoin network. Taproot is one of the most important updates to the Bitcoin network protocol since SegWit in 2017.

The Taproot upgrade is actually an umbrella term referring to three interconnected Bitcoin Improvement Proposals (BIPs) set to activate simultaneously: 

1. BIP 340, or Schnorr. This proposal introduces Schnorr signatures, a digital signature scheme that is faster, more secure, and less data-intensive than the cryptographic method currently in use (Elliptic Curve Digital Signature Algorithm, or ECDSA).

2. BIP 341, or Taproot. This proposal defines Pay-to-Taproot (P2TR), a new way to send bitcoin that enhances privacy and flexibility for users. It also implements Merklized Alternative Script Trees (MAST), which compress complex Bitcoin transactions into a single hash. This reduces transaction fees, minimizes memory usage, and improves Bitcoin’s scalability.

3. BIP 342, or Tapscript. This proposal defines Tapscript, an update to Bitcoin’s original scripting language that enables P2TR transactions, leverages Schnorr signatures’ improved efficiency, and allows for more flexible upgrades going forward.

The Taproot upgrade will improve Bitcoin in a number of ways, such as:

 Lower fees: Since the data size of complex transactions will be reduced, transaction fees will decline proportionally.

 Improved lightning network efficiency: Taproot will make transactions on the Lightning Network cheaper, more flexible and more private.

Enhanced smart contract functionality: With Taproot, Bitcoin will be able to host smart contracts with any number of signatories while retaining the data size of a single-signature transaction. This lays the technical foundation for DeFi on the Bitcoin network.

Among other things, Taproot will facilitate future Bitcoin updates by reforming the language of the scripts it uses.

It is also interesting to watch strong market players such as Binance. One of the most critical players in the cryptocurrency market, Binance, is currently experiencing a crisis and is fiercely trying to defend the new world. Well, or adjust to the new conditions. And Binance published a New Crypto Manifesto. 

We suggest you familiarize yourself with it because the experience of a large company and the opinion of one of the industry leaders can help you understand what is happening around cryptocurrencies and what awaits us all in the future.

10 Fundamental rights for crypto users 

I. Every human being should have access to financial tools, like crypto, that allow for greater economic independence.

II. Industry participants have a responsibility to work with regulators and policymakers to shape new standards for crypto assets. Smart regulation encourages innovation and helps keep users safe.

III. Responsible crypto platforms have an obligation to protect users from bad actors and implement Know Your Customer (KYC) processes to prevent financial crimes.

IV. Privacy is a human right, and personally identifiable information (PII) data should be subject to strict levels of protection.

V. Crypto users have the right to access exchanges that keep their funds secure, in safe custody with comprehensive deposit insurance.

VI. Healthy markets should maintain a robust level of liquidity to ensure a stable and frictionless trading environment.

VII. Regulation and innovation are not mutually exclusive. Crypto users deserve safe access to emerging technologies and practices, including NFTs, stablecoins, staking, yield-farming, and more.

VIII. Closing the knowledge gap is essential when it comes to crypto. Users have the right to accurate information on crypto assets, without fear of falling victim to unfair or deceptive advertising.

IX. Marketplaces that offer derivative instruments should be subject to the appropriate regulations. This ensures all users meet eligibility requirements and that their transactions are fairly settled.

X. Crypto regulation is inevitable.* Users have the right to share their voice on how the industry should evolve with their blockchain platform of choice.


Probably the most important thing that can be learned from all this: Cryptocurrency is recognized as giving us greater freedom and the future of crypto needs to be user-focused.

And we, as industry participants, must understand that hype and fake news do not reflect all aspects and innovations that blockchain technology and cryptocurrencies bring.

Bitcoin price analysis

At the beginning of the week, Bitcoin started at $64k. At the time of writing, BTC is holding at $57k with a 24-hour trading volume of $38,674,997,569.07. Bitcoin has updated the local minimum, falling below $57k. The dominance of BTC in the market is 42.22%.The position of Bitcoin this week was again weakened by statements from the Chinese authorities. And the fall in the price of the first cryptocurrency pulled the entire market along with it, with the exception of popular gaming coins such as Axie Infinity.

Bitcoin update, the danger of cryptocurrencies, manifesto of crypto users – the top weekly crypto news

Ethereum price analysis

At the beginning of the week, the price was $4658, and at the time of writing, it’s $4290 with a 24-hour trading volume of $20,693,303,733.29. Meanwhile, the current market dominance of ETH is 20%. 

At the beginning of the week, the price was $4658, and at the time of writing, it’s $4290 with a 24-hour trading volume of $20,693,303,733.29. Meanwhile, the current market dominance of ETH is 20%. 

Bitcoin update, the danger of cryptocurrencies, manifesto of crypto users – the top weekly crypto news

TOP CRYPTO NEWS

  1. While many other technology giants embrace the metaverse as the next frontier of growth, Sundar Pichai sees Google’s future in its oldest offering: Internet searches. Some of Google’s largest peers such as Microsoft Corp. and Facebook parent Meta Platforms Inc., have pitched their futures around the virtual worlds of the metaverse. Evangelists of the metaverse often talk about the potential to build in new technologies like the blockchain and cryptocurrencies. Aside from some cloud partnerships, Google has largely steered clear of this part of the industry. Pichai said he doesn’t own any cryptocurrency. “I wish I did,” he said. “I’ve dabbled in it, you know, in and out.”
  2. TIME Magazine will store ETH on a corporate account as part of a deal with Galaxy Digital to educate readers about metaverses — as part of the partnership, the publication will launch a weekly called Into the Metaverse, in which it will present the top 100 companies working on virtual universes. By the way, NFTs from celebrities are falling sharply in price due to low liquidity. Once it turned out that outside the fanbase, pictures for hundreds of thousands of dollars are not needed by anyone, investors began to avoid them – the price of most of them fell by 80-100%. So the cost of NFT “Earth” from singer Grimes during the initial sale was $7,500, and recently one of the tokens was resold for only $1,200 (16% of the cost). And Grimes isn’t the only celebrity to face the depreciation of their NFT. Collectors say that the decline in the quality of the tokens themselves was an important factor in reducing the boom – most NFTs are created simply to make money.
  3. MicroStrategy CEO Michael Saylor believes that Bitcoin will continue to gain in value if world governments continue to be inflationary, and the first cryptocurrency will grow forever due to a limited supply of 21 million BTC, which cannot increase regardless of demand and price. Saylor also denied popular opinionw of a shortage of gold, stating that the supply of precious metals is increasing in both physical and paper forms.
  4. Austria says it wants to boost confidence in cryptocurrencies by taxing them like mainstream stock and bond investments. The govment intends to apply a 27.5% capital gains levy on digital tokens like Bitcoin and Ethereum from March 2022 as part of a wide-ranging tax overhaul. More jurisdictions have been examining the imposition of taxes as the global cryptocurrency market’s value has swelled to more than $3 trillion. 
  5. Square plans to integrate the Lightning Network into its CashApp application.
  6. Coinbase is considering integration with third-party DeFi platforms. Coinbase is betting that as crypto enters what the CFO called “the utility phase,” users won’t be coming to its platform just to transact, but to buy and sell crypto.
  7. Cryptocurrencies can destabilize nations, said Hillary Clinton. The first lady of the United States from 1993-2001 as the wife of former President Bill Clinton doesn’t seem fascinated with digital assets and their implementation in the global financial network. In a recent panel discussion at the Bloomberg New Economy Forum in Singapore, she opined that today’s world faces new challenges: disinformation, artificial intelligence, and cryptocurrencies. According to her, digital assets had grabbed the public’s attention due to their “interesting and somewhat exotic” nature. However, they present a threat to the US dollar. Clinton went even further, claiming that their adoption can destabilize whole nations
  8. A Digital Euro as a legal tender in the EU area is a likely outcome in the next 24 months, says top ECB official. Such status could potentially give the central-bank-issued digital currency an edge over other forms of electronic payments in Europe, which aren’t currently recognized as legal tender and therefore aren’t consistently available to consumers as a payment method. 

This is all the news, for now. We will continue to keep you informed of all the main events of the crypto market. This article is for informational purposes only and does not provide any financial advice. Stay tuned to our wallet, enjoy the usable interface and transaction security, and check back for updates and news on Twitter, Telegram, Facebook, TikTok and LinkedIn. Let’s learn the cryptocurrency market together step by step!