ALBAWABA- In this week's crypto news, Robert F. Kennedy Jr. vows to back the USD with Bitcoin if elected president, Russia enacts the digital ruble bill, paving the way for its CBDC launch, Bitcoin hits block 800,000, with 40,000 left before the next halving. All that and more so let's dive in!
Robert F. Kennedy Jr. Pledges Progressive Backing of U.S. Dollar with Bitcoin as President
Democratic presidential candidate Robert F. Kennedy Jr. has unveiled an ambitious plan to back the United States dollar with Bitcoin if elected to the highest office. Speaking at a recent event, Kennedy emphasized the importance of supporting the dollar with what he termed "hard currency," which includes gold, silver, platinum, or Bitcoin, aiming to restore stability to the American economy. The backing process would be implemented gradually, and Kennedy expressed his readiness to adjust the amount based on the plan's success. Furthermore, he pledged to exempt Bitcoin-to-U.S. dollar conversions from capital gains taxes, an incentive to encourage greater investments in the nation.
Russia Advances with Digital Ruble as President Putin Signs CBDC Bill into Law
On July 24, President Vladimir Putin of Russia gave the green light to the digital ruble bill, solidifying the country's move towards a central bank digital currency (CBDC). The law is set to be effective from August 1, 2023, with almost all regulations ready for implementation, except for Article number three, which introduces amendments to various federal laws and will take effect from August 2024.
The new legislation grants the Russian central bank the authority to initiate the first CBDC pilot involving real consumers in August. Initially planned for trials in collaboration with 13 local banks, including major institutions like Sberbank, the government has now empowered the central bank to be the primary operator of the digital ruble infrastructure, with full responsibility for all stored assets. Notably, the digital ruble's primary purpose is as a payment and money transfer method and does not serve investment functions.
Bitcoin Celebrates Block 800,000
The Bitcoin network recently mined its 800,000th block, leaving only 40,000 blocks until the next mining reward halving. The milestone, marked by 3,721 transactions and a 1.64-megabyte block size, coincided with Bitcoin trading at $29,815 on July 24. Celebrated widely on social media, this achievement was seen as a testament to the network's security and resilience, with proponents and commentators highlighting its significance.
The block height in Bitcoin's blockchain indicates the number of blocks preceding it, serving as a chronological order of transactions and network data. This characteristic also enhances the blockchain's immutability, making it increasingly difficult for malicious actors to tamper with previous blocks as the chain grows.
Moreover, block height plays a crucial role in maintaining Bitcoin's mining difficulty, which adjusts every two weeks based on the total computational power of the network. The network generates a new block approximately every 10 minutes, and as more hashing power is added, the difficulty adjusts to ensure equilibrium.
Block height also influences the amount of Bitcoin rewarded to miners for adding a new block to the network. Bitcoin experiences halving events approximately every four years, reducing the block reward. The next halving is expected in April 2024, cutting the reward to 3.125 BTC. Historically, these events have coincided with significant price rallies for Bitcoin and the broader cryptocurrency market.
As the next halving approaches, the price of Bitcoin has been impacted by macro events following its all-time high in 2021. Recent filings for Bitcoin exchange-traded funds by asset managers BlackRock and Fidelity have sparked speculation about renewed institutional interest in Bitcoin. With excitement building for the next halving, the cryptocurrency community eagerly awaits future developments.
