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This is our weekly blog going through all major news that happened during the previous week. Here is the main news of the week:

The Price

Price last week: $7000 US

Price this week: $6200 US, down 11.4%

The price decreased by $800 dollars, an 11.4% decrease in value from the $7000 US of last week. The price continues its drop after reaching a high of 8000 two weeks ago.

DEA Admits Drug Use Is Not Bitcoin’s Main Use

The Drug Enforcement Administration (DEA) has admitted that currently the amount of legal activity in Bitcoin is larger than the use in illegal activity.

The DEA states that when it started tracking Bitcoin, 5 years ago, 90% of the usage of the currency was illegal activity. The DEA states that now illegal activity only accounts for 10% of the transactions and that the main use of the currency at the current time is of speculation.

Bitcoin Developer Discovers Bitcoin Cash Vulnerability

A developer that usually works on the Bitcoin protocol disclosed a vulnerability in the Bitcoin Cash protocol.Bitcoin Cash is not to be confused with Bitcoin as it is a different protocol derived from the Bitcoin protocol.

The Bitcoin Cash protocol is an attempt to scale a blockchain faster than Bitcoin, but at the time it doesn’t seem to have much use and its value has been decreasing compared to Bitcoin’s over time.The vulnerability that was discovered in April and then fixed in may would have effectively made it impossible to use Bitcoin Cash securely.

Goldman Sachs Planning to Offer Custody For Cryptocurrency Funds

Goldman Sachs, one of the biggest investment banks in the world, is considering providing a custody solution for cryptocurrency funds.The consideration comes after clients of the bank starting asking for this kind of service.

It is usually best to hold cryptocurrencies personally and have control of the keys to access them, but for investment banks and regulated funds this is not possible because of regulations. For these companies to be able to hold bitcoins it is necessary for them to use a third party to store them.

Bitcoin Dominance Over 50% Again Bitcoin

is back to having a market capitalization of over half of the total market capitalization of all the cryptocurrencies. This means that the value of all the bitcoins that exist is larger than the sum of all other cryptocurrencies.

Bitcoin had been at less than 50% dominance since December 2017. The dominance index is not a perfectly accurate index as market capitalization of smaller currencies can be manipulated fairly easily. Even though the dominance index can be manipulated to an extend it is a good index to gauge the sentiment of the market in regards to Bitcoin and all other cryptocurrencies.  

Sources:

https://www.bloomberg.com/news/articles/2018-08-07/bitcoin-speculators-not-drug-dealers-dominate-crypto-use-now

https://medium.com/mit-media-lab-digital-currency-initiative/http-coryfields-com-cash-48a99b85aad4

http://bcbulletin.com/news/goldman-sachs-is-planning-custody-offering-for-cryptocurrency-funds-report/379/

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