Welcome to the Crypto Weekly Update, where we organize all the crypto news from the previous week for your reading pleasure. The Crypto Weekly Update will be released every Monday afternoon. Think we can improve? Let us know in the comments section below!
Verge Announces Partnership
The announcement was made on Tuesday that Verge would be teaming up with MindGeek. Mindgeek is one of the largest payment processors on the internet. They control a variety of different pornographic websites and pornographic networks. Their most popular website, Pornhub, will be accepting XVG as payment for its various membership products.
The price of XVG quickly dropped after the announcement was made. At one point the price had decreased by over 20% in a 24 hour period. This seems to be the recent trend in cryptocurrency markets. Traders will buy the rumor and sell immediately after the news is released. It doesn’t matter if the announcement is legitimate or not. The price will drop regardless.
This partnership is pretty big though. The porn industry spans the globe and teaming up with the biggest name in that space is a big deal. But I don’t expect it to make an immediate economic impact as it concerns XVG price or the market overall. Cryptocurrency is still difficult to use unfortunately. Until it becomes easier to use I expect Pornhub members to pay their fees with credit cards instead of XVG.
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Crypto Market Up After Tax Day
After a month plus of waiting investors finally got what they wanted. The markets were all green on Wednesday morning and that trend continued into the weekend. Obviously investors are still wary to dive in full force but market conditions are signaling bullish movements in the near future.
Plenty of professional fund managers hinted that the markets could turn around after April 17th, the day that tax payments were due to the IRS. It was estimated that large investors were selling off their cryptocurrency holdings to produce cash. This cash would go towards paying down the large tax bills they had incurred in 2017.
It was unfortunate the way things worked out from a tax perspective. Prices were very high at the end of 2017 and if you sold your altcoins for BTC you probably recognized large gains. But if you didnt move your BTC into fiat before prices dropped significantly at the beginning of 2018 you were stuck in an awkward position.
This was the worst possible scenario for investors. Many were stuck paying tax on large gains made in 2017 but did not have the cash to cover the tax. Further selling to produce cash caused people to panic and that drove the market down even further.
Now investors do not need to sell to cover their tax liability. Heck, some are even getting refunds from the government. This is good news for crypto-markets as a large amount of cryptocurrencies are considered cheap when compared to previous all time highs.
Bitcoin Approved For Muslim Investment
Individuals that follow Islamic Law have been excluded from investing in Bitcoin and other cryptocurrencies. Islamic law urges that people who follow the faith should not invest in speculative assets because it is akin to gambling. Bitcoin and other cryptocurrencies are prone to manipulation and this has also turned Muslim communities off.
However, a new report put out by Muhammad Abu Bakar has changed all this. Abu Bakar is a well-known and well-respected legal scholar in the Muslim community. His report titled ‘Is Bitcoin Halal or Haram: A Sharia Analysis‘ makes several points that would make Bitcoin a legitimate investment under Islamic Law.
In his report he goes on to say:
“Crypto traders should not purchase cryptocurrencies for investment purposes. Rather, it is advisable to utilize cryptocurrency networks as a payment system in the cases where cryptocurrency network offer specific benefits and advantages over conventional systems.”
“Bitcoin is permissible in principal as bitcoin is treated as valuable by market price on global exchanges and it is accepted for payment at a wide variety of merchants. Moreover, many private individuals accept bitcoin as a medium of exchange in their private transactions.”
Muslim populations currently make up over 20% of the total world population. This is a big win for cryptocurrencies. More people will be able to experiment with these assets and this will only increase the adoption rate around the globe.