As June begins, cryptocurrencies were struggling to register gains. Here's what you can't miss in cryptocurrency for Friday, June 1.
April Showers Bring May ... Losses
Bitcoin had a rough go of it in May. Despite a mid-month rally that saw the top cryptocurrency reaching for $10,000, bitcoin closed out May with a tough 19% price decline, according to data from Bitfinex. That monthly loss pushed bitcoin's five-month moving average below its 10-month moving average for the first time since June 2014. As June began, bitcoin was still lower at about $7,400 for most of the day. While that puts bitcoin about 62% lower than its record high set in December 2017, it's worth noting that bitcoin traded for just $2,407 on June 1, 2017. In the last year, prices have climbed more than 200%.
IMF Official: Central Banks Need to Compete
Dong He, the deputy director for the International Monetary Fund's Monetary and Capital Markets Department, said in an editorial that central banks need to offer "better" fiat currencies in order to compete with cryptocurrencies. He noted that central banks should consider adopting some of the technological innovation in play in the crypto space to "forestall the competitive pressure crypto assets may exert on fiat currencies." The deputy director's thesis was based on the notion that, if cryptocurrencies become the de facto currency of choice over fiat currencies, central banks will lose their ability to influence the economy in times of duress.
Bitcoin Is Worth as Much as This Banknote
While many bitcoin evangelists have suggested the cryptocurrency will replace all fiat currencies in coming years, the digital assets have yet to do so. But right now, one single bitcoin has about the same market value as the largest banknote in circulation, Quartz pointed out. Brunei's B$10,000 note is worth about $7,480 - nearly in line with bitcoin's price this week. Most people in Brunei don't use the note, instead hoarding it for an emergency or for use in wartime. It also has, since its introduction in 2006, sometimes served as the go-to currency for illicit transactions. Few countries allow for such large banknotes anymore. The eurozone most recently moved to retire its 500-euro bill, often called the "bin Laden" following concerns the high-value banknote was being used to fund terrorism.
GMO Launches Bitcoin Reward for Gamers
GMO Internet Group, a Japanese technology firm, has developed a new app for mobile devices that rewards users with bitcoin earned by playing games. The company calls the app CryptoChips, it announced this week. At its launch, CryptoChips will be integrated with the real-time territorial battle game "Whimsical War," also developed by GMO. By playing the game, users can earn bitcoin based on their rankings and on missions achieved in "Whimsical War." The program is scheduled to begin in August, GMO said. Developers said the goal of the bitcoin reward system is to encourage the broader public to become more familiar with cryptocurrencies, as players who want to earn bitcoin will have to open their own digital wallets to receive their crypto rewards.