EddieJayonCrypto

 21 Feb 22

tl;dr

The crypto space has taken more of a downturn. Here are my thoughts on what the future may hold.1. Russia is still prolonging what I believe to be quite inevitable. I believe this because they have been doing everything in their power to financially and strategically prepare for this moment. With an...

The crypto space has taken more of a downturn. Here are my thoughts on what the future may hold.

1. Russia is still prolonging what I believe to be quite inevitable. I believe this because they have been doing everything in their power to financially and strategically prepare for this moment. With an over $600 billion stockpiled in reserves, at least a couple of hundred billion dollars in cryptocurrencies and already having made adjustments to deal with the current sanctions, Russia is already poised to withstand additional sanctions. Now, Putin is stating he will "recognize" 2 sections of Ukraine. This further points to the impending attack and war started by Russia. This will continue to be an ongoing macro event that will have vast impacts across the globe. With all of this external maneuvering, the Russian stock index took another 13.21% drop. This is a part of a 35% drop in the index over the past 4 months. Even with all of the financial preparation, additional sanctions can still hurt Russia.

2. Canada implemented the Emergencies Act to help end the financial support for the anti-vax demonstrations in the country. This made it possible for financial institutions to freeze accounts without the need for a court order. The Act was updated to include cryptocurrencies. As a direct result 30 crypto wallets were frozen. Now Canada is considering making the Act permanent. This has a lot of people in Canada pulling their money out of financial institutions due to a lack of trust. One would think this would be a very heavy-handed move by Canada and could have long-lasting effects. This is something we would have to keep an eye on since it would be a very bold move.

3. Holding over 78K of the 296K validators on the Ethereum Beacon Chain, Coinbase and Kraken use Prysmatic Labs to manage those validators on the chain Ethereum will be merging to move to a Proof of Stake protocol. Community members have pointed out this could lead to client centralization and make the network more susceptible to attacks. Unlike the OpenSea phishing attack, this actually could have a negative effect on Ethereum and leave the door open to other Layer 1s to step up and gain share. One would think this could also have a negative impact on Coinbase and Kraken.

4. Elon Musk has gone on record stating DOGE will be accepted at Tesla charging stations in the future. This is good news for the DOGE community but has not had all too much of an impact on the coin now. I suspect the impact will come when it is implemented. Perhaps, there will be a follow-up announcement that people will be able to purchase cars using DOGE in the future, too.

5. As quickly as Salesforce announced it would be looking into getting into the NFT space, more than a few hundred employees sent an open letter to the executives stating their objection to the notion, citing environmental and fraud concerns.

6. It has been reported and confirmed that Intel's new cryptocurrency mining chip moves slower than that of Bitmain's best chip and sucks up more energy. This is clearly a setback for the already sluggish chipmaker.

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