Crypto Today – Highlights
1) Twitter Invests In OpenNode
bitcoin payment service OpenNode said on Wednesday that it had secured $20 million in a Series A round led by Twitter, Tim Draper, and Avon Ventures, among other investors.
In order to process and settle bitcoin payments in real time, OpenNode makes use of the Lightning Network, which is the most advanced technology for boosting bitcoin scalability available. According to the firm, payment buttons, hosted checkouts, eCommerce plug-ins, and optimized application programming interfaces (APIs) are all incorporated in the company’s business systems.
Bank Of America declares Bitcoin- a Risk Asset
However, according to CoinDesk, Bank of America has classified bitcoin to be a risk asset, despite the fact that the cryptocurrency’s supply restriction of 21 million units makes it the ideal inflation hedge (Feb. 9).
The correlations between bitcoin and the S&P 500 stock index, as well as the correlation between bitcoin and the Nasdaq, were at all-time highs. However, there has been no connection made between bitcoin and gold, which is typically employed as an inflation hedge or a store of value in the financial world.
While volatility has dropped since its peak in 2013, it continues to be high when compared to the S&P 500, the Nasdaq 100, and the price of gold.
EU Might Ban Crypto Mining
In other news, the European Union may propose prohibiting cryptocurrency mining due to concerns over energy use.
An article published on Wednesday by CoinDesk stated that a number of Swedish politicians have called for a ban on cryptocurrency mining, citing worries that green energy is being used to mine the currencies rather than for public use.
European Parliament member and bitcoin supporter Stefan Berger described a possible crypto mining ban as a “death sentence” for bitcoin in the EU on February 3 in a statement. Berger has also been a leading influence behind a proposed regulatory framework for crypto assets in the United States, which is now under consideration.