It was a very nice week for crypto. Bitcoin is up 9% over the last week, while ethereum is up 12.9%, according to CoinMarketCap data.
Ethereum jumped on its implementation of EIP-1559, a network upgrade that burns a portion of miner fees and reduces supply. Collectible non-fungible tokens are also driving a massive surge in usage.
In my view, bitcoin is being driven higher by its utility as an inflation hedge and uncensorable form of money. Inflation continues to heat up, with wholesale prices as measured by the producer price index soaring 7.8% in July. The tailwinds boosting bitcoin are far stronger than they’ve ever been before.
The primary threat to crypto growth is government interference. Regulators around the world are starting to pay attention to the booming crypto markets. I am monitoring this closely and am largely encouraged by what I’m seeing. Crypto owners are fighting back against legislation that would cripple the crypto industry.
As crypto continues to be adopted by citizens all over the world, our power will continue to grow. If we continue to push back against harmful legislation and raise our voices, I’m confident that we can overcome the regulatory risks that threaten the crypto industry.
Enjoy the weekend, everyone.