Here are some of the major developments in the world of crypto over the past few days.
On 19 July, blockchain networks, such as Bitcoin and Ethereum, once again proved how resilient they could be by running smoothly amid what could be termed one of the largest IT outages in history. As many centralized services—courts, healthcare, and airlines—were paralyzed, blockchain transactions remained unaffected.
On the social network X, ex-Linux kernel and Bitcoin Core engineer Jeff Garzik wrote, "Global IT outage: Linux, Bitcoin, and Ethereum unaffected." Jameson Lopp, the co-founder of Casa, called to avoid auto-updates, stating that they create systemic risks.
Pro-crypto Senator Cynthia Lummis also pointed out that Bitcoin had never stopped, emphasizing the resilience of decentralized systems with the phrase "Vires in Numeris," which means "Strength in Numbers," referring to the thousands of Bitcoin validator nodes.
Some of them pointed out that the fault lay somewhere within the Windows operating system and highlighted blockchains regarding compatibility with all operating systems. Dr. Calle, the developer of the Bitcoin wallet Cashu, referred to Satoshi Nakamoto's initial hesitation to develop a Linux client. In contrast, Bitcoin Core developer Peter Todd founder of Bitcoin Lab added that Bitcoin's resilience lay in its accessibility with Linux.
First introduced on Windows in January 2009, a Bitcoin version on Linux was then released later the same year. The global outage was blamed on a CrowdStrike automatic update for Windows, flawed in nature, that had no effects on Mac and Linux versions. According to CrowdStrike's CEO, George Kurtz, efforts were made to resolve the problem and return businesses to normal.
Ethereum Price Facing a Potential Drop Despite Launching of Spot ETF, Warns Analyst
Ethereum price could slump once the initial rush on spot Ethereum exchange-traded funds fades, if its supply keeps up the current pace, crypto trader and founder of Into The Cryptoverse, Benjamin Cowen warned. In a post on X on July 19, Cowen highlighted how ETH supply has increased by about 60,000 ETH per month since April. By December, it could bring the supply back to pre-merge levels.
Onchain analyst Leon Waidmann highlighted Ethereum's "supply crisis," which includes the fact that exchange balances have been cut down to 10.2%, while 39.3% of ETH is locked in smart contracts. After receiving SEC approval on May 23, five spot Ethereum ETFs will begin trading on the Chicago Board Options Exchange on July 23. These include ETFs from 21Shares, Fidelity, Invesco Galaxy, VanEck, and Franklin.
US Court Permits Binance To Invest Customer Funds In US Treasury Bills
The United States District Court for the District of Columbia has permitted Binance to invest customer funds in US Treasury Bills. According to a court order dated July 19, Binance will be allowed to invest the funds through a third-party investment manager if such investments are not funnelled back into Binance or its affiliates.
Treasury investments-related data is also required to be included in the monthly business expense reports that shall be provided by Binance. The decision could shed light on the role of cryptocurrency in boosting demand for the US dollar, as de-dollarization plans by BRICS nations are implemented.
It is expected that it may help in continuing the US dollar dominance because collateralized stablecoins would buy and hold US debt instruments, countering inflation from quantitative easing and fiscal mismanagement. For example, in 2023, Tether held $72.5 billion in US Treasuries, rivalling some developing nations. Tether underlines how an over-collateralization of its dollar-pegged stablecoin guards against economic collapse.
Former US House Speaker Paul Ryan pointed out how stablecoins can offset debt crises and maintain the competitiveness of the US dollar in international markets. He added that dollar-pegged stablecoins create huge demand for the US dollar and related debt instruments.