Mercado Libre Announces Crypto Services, Tether Backs Ethereum Merger, Coinbase Posts Big Quarterly Losses, and More

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Last Wednesday a new inflation report was published in the USA. The famous and anticipated Consumer Price Index (CPI). According to the CPI, annual inflation in the report for July fell to 8.5%, after registering 9.1% in the report for June. This is mainly due to a reduction in the price of gasoline. The price of a gallon, at the moment, is below (on average) $4. In fact, it has been going down for almost two months consecutively. We must remember that since March the price of the gallon has not stopped rising. But eventually it peaked at $5.02 in mid-June. This decrease is due to several factors: a reduction in demand due to high costs, a reduction in the price of Petroleum due to the global economic slowdown and a tax suspension in some states.

The US Senate passed the Inflation Reduction Act. We cannot say that it was approved in bipartisan consensus. In fact, the conservatives are not very happy. Nor can we say that the law does much to reduce inflation in the short term. Its name is more of a headline and is not necessarily a reflection of its content. However, it represents a political victory for Biden and the Democrats. It is not a flawless law. But his focus on climate change, healthcare and tax reform has been applauded by many experts. Environmentalists, in particular, are very pleased with the motion.

Wall Street and cryptoland are enjoying a newfound optimism based on progress in fighting inflation. Of course BitcoinSo far, it hasn’t been able to break above $25K. Despite the good news around inflation and the official arrival of financial giant BlackRock in the ecosystem, investors are proceeding cautiously. Because it is very possible that the market is claiming victory before its time. In my opinion, there is an exaggeration. It is true that inflation is going down. And consequently, that could eventually mean that the Federal Reserve of the United States would not have to be so aggressive in raising interest rates. Nevertheless, We cannot underestimate how long and complex the process of bringing inflation back to 2% will be. In other words, we cannot count the chicks before they hatch.

Now, let’s talk, with a critical eye, about the top crypto news of the week.

MercadoLibre will allow cryptocurrency trading throughout Latin America alongside Paxos

I always applaud news like this. They are very good advertising. And, for Mercado Libre and Paxos customers, this news represents one more product. Which is also possible, because it expands the range of options. What does seem quite curious to me is that normally the businesses that accept cryptocurrencies as a form of payment they do not experience a dramatic increase in payments in cryptocurrencies. Compared to conventional channels, the percentage in crypto payments is not something to write home about.

This may be because many people view cryptocurrencies more as an investment than a form of payment. And they prefer more to accumulate than to spend. The interesting thing here is that Mercado Libre is talking about buying and selling cryptocurrencies. In addition, you have to remember the stablecoin from Paxos. So, it is not about Mercado Libre adding one more payment method to its customers. Apparently what we have here is an exchange. It will be curious to observe the development of these events.

Bitcoin without internet: an SMS service allows you to send BTC with a text

Countries with poor internet often also have poor telecommunications. In some cases, to add insult to injury, they also have a scarce and poor electrical service. In VenezuelaFor example, it is not uncommon that after eating in a restaurant, at the time of paying the bill, the electricity goes out and the telephony begins to fail. In this case, cash or credit become the heroes of the movie. In other words, we need more such options. The SMS service is an excellent idea. A BTC in physical form, a kind of certificate, is also a good idea.

Nerves over US CPI release curb bitcoin price gains

In the introduction, I talked a bit about inflation. Indeed, earlier in the week, investors were anticipating Wednesday’s report quite nervously. Nevertheless, once the data came out better than expected, a relief rally ensued. Of course, all enthusiasm has its limits.

Tether also confirms its support for the Ethereum merger

Tether has lost many users lately due to competition. Tether is still important in the trading. Because Tether still has a strong presence in the most liquid pairs on most exchanges. Nevertheless, its rival, USDC, has gained a lot of ground thanks to its transparency and regulatory status. Users feel more comfortable holding USDC than holding Tether. Tether is used more for short affairs.

Now both stablecoins are tokens over the network Ethereum. In other words, they are suffering from the matter. Then, the support of both is significant for Ethereum and its plans.

Coinbase Records $1.1 Billion Loss in Q2 of Year Due to ‘Fast and Furious’ Crypto Crash

Exchanges make money from purchases and sales. However, volume falls due to pessimism during down cycles. Also, coinbase does not have a derivatives business as Binance. It also doesn’t have a token like BNB. It is true that Binance is very popular outside of the United States. Suddenly Binance’s success is because it has more freedom. Because Binance has been able to take advantage of regulatory loopholes globally.

On the other hand, Coinbase is an exchange with a strong base in the United States. It is a public company listed on Nasdaq. And it has made a considerable effort in the regulatory field. Despite its problems with the SEC, it could be said that Coinbase is a regulated exchange. It is no coincidence that BlackRock has made an alliance with Coinbase. And now Coinbase is part of the Aladdin Network. Which is not a small thing. So, there’s hope that a bad quarter won’t be the end of the world for the company. Coinbase still promises.

Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

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