Cryptocurrency Market Update: IMF on crypto, Tether daily transaction value outshines Bitcoin and Paypal’s

Bitcoin price resumed the uptrend this week, retesting the hurdle at $12,000. This follows drab price action laced with frequent dips towards $11,000 in the last two weeks of August. The entire cryptocurrency market has started to reverse the trend upwards after a couple of weeks of lethargic trading.

The IMF supports the creation of a special cryptocurrency

The International Monetary Fund (IMF) in a tutorial published this week highlighted some issues related to payments on a global scale. The tutorial also explained cryptocurrencies touching on their pros and cons as well as their potential of becoming the future of money.

What are cryptocurrencies? https://t.co/ggONlLkA2r pic.twitter.com/yYpj3Jf37E

— IMF (@IMFNews) August 23, 2020

In regard to payments, IMF believes that the world still doesn’t have a secure payment system with the ability to protect data from landing into the wrong hands. However, the IMF believes that a “special type” of cryptocurrency developed from a science and cryptography perspective would help solve most of the challenges being faced.

The global financial organization also highlighted some risks that come together with using cryptocurrencies. For instance, some cryptos are anonymous and, therefore, untraceable which makes it “easier for bad guys to make payments without being noticed.” There is also the challenge of losing all the funds if a user fails to remember their wallet’s password. Another challenge is the volatile nature of digital assets.

On the other hand, the organization reckoned that if all the challenges are addressed then digital currencies “could be the next step in the evolution of money.”

Tether’s seven-day average transfer value flips Bitcoin

According to data provided by Coinmetrics, the largest stablecoin, USDT daily transaction value has in the past few weeks flipped that of Bitcoin. USDT’s average transfer value hit a high of $3.55 billion on August 5 compared to Bitcoin’s $2.94 billion. Tether’s daily transfer value is also above that of PayPal ($2.93 billion) as per the company’s Q2 report.

Tether is now doing $3.55 billion in daily transfer value: https://t.co/CpW34wL3jA via @coinmetrics

Not bad. In Q2 2020, @PayPal did just $2.94 billion per day: https://t.co/kD3Bt9BEYF pic.twitter.com/uxaagM9pXU

— John Paul Koning (@jp_koning) August 25, 2020

Consequently, crypto miners are choosing to remain bullish owing to the fact that their holdings hit a two-year high this week. Moreover, mining difficulty rose to a new all-time high suggesting that miners are dedicating more of their resource to the network.