Uzbekistan, a country located in the central part of Asia has come into the limelight by announcing that they will soon pass a law to regulate the use of Bitcoin in their country.
The President of Uzbekistan, Shavkat Miriyoyev decreed that the institution should draft a law to legalize cryptocurrency by the end of September this year. Various ministries of the country including the Central Bank, the Ministry of Information Technologies and Communications, the Finance Ministry and the Ministry of Economy have been given the task of preparing the bill.
Shavkat Miriyoyev has even instructed the concerned authorities to set-up a special ‘Center for Distributed Ledger Technologies’ within the Mirzo Ulugbek innovation center. The main role of the center will be to create conditions for using the various possibilities of blockchain technology. The center will also work towards improving and educating the local developers about the new trends and emerging technologies in DL technologies. The center will be opened by June 1st, 2018.
The President even emphasized on promoting the use of Cryptocurrency and smart contracts and encourage international payments systems to embark in the country.
Uzbekistan government had the opposite attitude towards digital currency. The Central Bank of Uzbekistan of Uzbekistan even proclaimed that cryptocurrencies are instruments of terrorism financing. But ever since the country’s Prime Minister, Abdulla Aripov supported the use of blockchain technology and attended ‘The Digital Agenda in the Era of Globalization’ forum in Kazakhstan’s financial capital, Almaty which attracted officials from the Commonwealth of Independent States (CIS) and the Eurasian Economic Commission (EEC), the country’s perspective seems to have changed.
Ajmal Karim, a Bitcoin and Ehereum investor says,
“It’s remarkable how countries which are less popular as this is looking for ways to legalize Bitcoin. China, time to up your game mate.”
Tony Charles Bowoskiv, a student at Georgia University says,
“Any country that has understood the vast opportunities presented by the blockchain technology and currencies like Bitcoin, have understood what the future is going to look like and definitely don’t want to be left behind.”
Due to this, the news has stirred up a lot of curiosity amongst the citizens of other countries. Recently, all the big player of Asia have taken decisions against cryptocurrencies, China banning ICO and declaring cryptocurrencies illegal, India not having a clear stand, South Korea, the major player in the virtual world passing laws and strict regulation on cryptocurrencies. Only time can tell what’s in store for Uzbekistan.
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Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market
The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.
At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.
At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.
A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.
At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.
Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.
According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.
A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.
However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.
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