Find the best broker for your trading or investing needs For cryptocurrencies, the week began with a negative report from the Bank for International Settlements (BIS), a consortium of some 60 central banks from around the world. The BIS issued a report Monday that was highly critical of the digital currency space.
The 24-page article alleged that digital currencies like bitcoin (BTC) are “not scalable” to a sufficient degree to ever be able to function as money within the global economy. The report cited the proof-of-work consensus mechanisms used to govern the blockchain systems underlying these digital currencies.
But despite the BIS report, cryptocurrencies were able to turn around a period of sustained losses later in the week, climbing by $13 billion as a group in the span of just a single hour. On June 18, BTC and ethereum (ETH) led the surge in cryptocurrency prices, climbing by roughly 4% by midday, according to Coin Telegraph.
By that point, the total market cap of all digital currencies was roughly $289.2 billion, marking a gain of about $13 billion, which occurred over the period of about an hour. That total approached the most recent local high of $300 billion in total market cap achieved on June 12.
The BIS report was fairly scathing, suggesting that “the more people use a cryptocurrency, the more cumbersome payments become.” One of the most popular lines from the report included the suggestion that storage demands associated with cryptocurrency adoption on a large scale could be so heavy as to “bring the internet to a halt.” Read more from investopedia.com…
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