Crypto newsletter: Bitcoin's relentless rally continues

 

In an interview for CNBC’s Squawk Box program, current U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton noted that Bitcoin is a payment mechanism and a "store of value" and the inefficiencies in the traditional financial system is driving BTC’s price. Clayton who is known for his strict approach towards the cryptocurrency market also predicts increased regulation for the whole industry. While commenting statement from JPMorgan CEO Jamie Dimon which claims that the US government will regulate Bitcoin if it gets bigger, Clayton said "we did not regulate Bitcoin as a security," Further clarifying the SEC’s criteria for classifying an asset as security, Clayton said this occurs when a cryptocurrency is used to raise capital and reminded that the government does regulate payments.

 

Meanwhile Deutsche Bank has revealed increased institutional interest in Bitcoin as opposed to gold as an inflation protection asset. In the period from 6 to 17 November, gold and silver decreased by 3.6% and 4.4% respectively while Bitcoin jumped 13.4% consolidates itself as a strong alternative to the traditional safe heaven assets. Deutsche Bank states: "There […] seems to be an increasing demand to use bitcoin where gold used to be used to hedge dollar risk, inflation and other things."

 

Zcash is the 34th largest cryptocurrency focused on privacy and anonymity based on zk-SNARK zero-knowledge proof technology. Zcash debuted on October 28, 2016, as a decentralized cryptocurrency and recently underwent its first halving in conjunction with a fifth network upgrade called Canopy. Halving occurs when the block subsidy, generated from new coins mined, is divided by two. The coded-in event usually takes place every four years at particular block heights depending on the particular chain. In case of Zcash  block rewards for miners have been reduced from 6.25 ZEC ($391) to 3.25 ZEC ($196). Usually, the reduced coin supply leads to a price increase however Zcash price fell after halving. Meanwhile the new network establishes a new development fund while the controversial Founders Reward has come to an end. According to new rules, miners will receive only 80% of the block reward, while 20% will be distributed between developers, investors and founders.