Crypto markets crash wiping out billions in market cap and China puts limits on BTC mining but Cathie Wood still expects Bitcoin to reach $500k? These stories and more, this week in crypto.
Want a chance to meet me in person? And hear from some of the biggest names in the crypto space? then make your plans to attend Bitcoin 2021 in Miami. Use the code 99BITCOINS to get 10% off your ticket. See you there!
In a single day, Bitcoin erased 30% in value. A cascade of long liquidations pushed the BTC price from $38000 to $30000 in minutes. When the dust settled, $3.2Bn was liquidated in total. Altcoin prices were quick to follow, resulting in losses of nearly $500 billion market-wide.
This week’s crash also caused several problems for cryptocurrency exchanges. Users of Coinbase, Binance and other trading platforms reported having difficulties logging into the sites and trading specific currencies. These issues have since been resolved.
An “insider” on anonymous board 4Chan claims the crypto crash was caused by a coordinated attack by an unnamed firm connected to the Chinese government. Such claims, without a verifiable source, should be taken with a healthy dose of skepticism, but the post was indeed made 12 hours before markets collapsed.
China has announced that bitcoin mining and trading will face certain limits in the near future. This is not the first time China has banned or placed limits on Bitcoin: the country has had an up-and-down relationship with crypto in recent years.
The U.S. Treasury department is looking to increase the IRS’s budget by nearly $700 billion to ensure tax evaders receive their due. One of the factors included in the plan is stricter crypto regulation, including the requirement that all crypto transactions with a value of $10K or more be reported to financial authorities.
Societe Generale, has issued a recent note claiming that and that bitcoin cannot be trusted in the same way given that it remains extremely volatile, and that its “erratic price movements” present serious risk to traders.
A new report suggests that millennials are losing their love and respect for Bitcoin and turning to popular altcoins such as Doge. Many now even refer to bitcoin as “boomer coin” on social media, either referencing its age or the idea that it is designed largely for older or more experienced investors.
One of the U.S.’s largest financial services companies, Wells Fargo, is planning to offer an actively managed cryptocurrency strategy for its clients. However, due to the inherent risks associated with digital assets, Wells Fargo will offer crypto investing only to its wealthiest clients.
Despite all the negative news of this week, Cathie Wood of Ark Invest still sees bitcoin reaching a high of approximately $500,000 per unit in the coming years. Now that she feels the currency has likely bottomed out, she is confident that more institutions will feel comfortable buying in, which could make the price spike all over again.
That’s what’s happened this week in crypto. See you next week.
Want a chance to meet Nate in person? And hear from some of the biggest names in the crypto space? Then make your plans to attend Bitcoin 2021 in Miami. Use the code 99BITCOINS to get 10% off your ticket. See you there!
Watch This Episode On YouTube
Listen To This Episode:
Prior to the Bitcoin 2021 conference, “Bitcoin Magazine Podcast” host Christian Keroles sat down with keynote speaker and incredible Bitcoin thinker Allen Farrington for one of his very first podcasts appearances. This interview covered two of Farrington’s seminal works and why Farrington prefers to investigate Bitcoin’s cultural and literature alignments over the typical framing of economics, trading and technology.
First, Keroles and Farrington dove into the latter’s article, “The Capital Strip Mine.” The article is a roughly 30-minute read and it dives into why the current fiat system is effectively strip mining the U.S. and current financial system of its resources. Farrington compares what is going on in capital markets to the strip mining techniques that have become popular in the modern day. Farrington laments that, because of fiat money’s poor incentives, civilization has taken on a growth-at-all-costs mentality and has thrown away all regard for long-term thinking and preservation.
Second, they got into Farrington’s blockbuster article” Bitcoin Is Venice, Bitcoin Is.” In this article, Farrington educates the reader about the anomaly that is Venice, Italy at its peak. Venice was a magical mixture of sound money, capitalism and free society when many of its neighbors were still operating in futility. Venice, in contrast to other large cities, was a bastion for the arts, wealth and thought. Farrington details how Bitcoin’s sounds and fair monetary properties provide a framework for humanity to return back to Venice-like conditions and hopefully prosperity.
Lastly, Keroles and Farrington discussed Farrington’s plan’s for his now live Bitcoin 2021 keynote presentation titled, “The Milk Of Paradise: Bitcoin And The Western Canon.” The speech discussed how Western literature, culture and historical lessons can all be fit into the values and properties that Bitcoin codifies into a physical network on nodes that maintain consensus in a decentralized way. Please enjoy this fascinating conversation with Allen Farrington.
Watch This Episode On YouTube
Listen To This Episode:
This podcast episode was recorded as a primer for Greg Foss’ appearance on the Bitcoin 2021 “The Bitcoin Macro Landscape Panel.” If you couldn’t make the conference, be sure to catch the Bitcoin 2021 YouTube live stream for day one and for day two.
In this podcast recorded on May 25, Bitcoin Magazine Head of Research Dylan LeClair had a discussion with credit market expert Greg Foss to discuss the macroeconomic landscape surrounding bitcoin.
Foss has over 30 years of experience in credit markets, and his breadth of knowledge was put on full display during the podcast as the two discussed leverage in the financial system; investment strategies and hedging optionality using a small, long VOL allocation with a majority bitcoin position; and bitcoin as the ultimate solution to the fiat ponzi. The two also discussed the recent event of legendary macro investor Ray Dalio saying that he would rather own bitcoin than a bond, and what that means for the investment community.
This discussion is not one you want to miss. For more of Foss’ work, check out his report tilted, “Why Every Fixed Income Investor Needs To Consider Bitcoin As Portfolio Insurance,” and tune into his panel discussion with Preston Pysh, Jeff Booth, Mark Yusko and Trey Lockerbie from the main stage at Bitcoin 2021 in Miami.
Square is considering building a Bitcoin hardware wallet, Google lifts a ban on crypto ads and can Norton antivirus mine Ethereum? These stories and more, this week in crypto.
Bitcoin 2021 concluded over the weekend here in Miami. Friday’s opening remarks were delivered by Miami mayor Francis Suarez, who revealed he first bought BTC when the price was about $40,000. Political figures such as Ron Paul and Wyoming senator Cynthia Lummus, Bitcoin pioneer Nick Szabo, Twitter founder Jack Dorsey, and Microstrategy’s Michael Saylor headlined a powerful lineup of speakers touching on various topics.
Google has lifted a ban on cryptocurrency exchanges advertising on its platform. The nearly three year old policy was originally enacted to counter scam projects. Advertisers under the new policy must be registered either with FinCen or an officially chartered bank, and be in compliance with federal legal requirements and Google Ads policies.
Payment app, Square’s CEO Jack Dorsey revealed an upcoming entrance into the hardware wallet market. If Square proceeds with Dorsey’s plans, the new hardware wallet will have non-custodial solutions, so you can control your private key/ and it would be built entirely in the open, from software to hardware design, and in collaboration with the community.
Wall Street’s giant asset manager, Guggenheim Partners may invest in Bitcoin and other cryptocurrency assets through its latest fund called Guggenheim Active Allocation Fund. A recent filing with the Securities and Exchange Commission revealed the giant’s plans to receive the exposure through cash-settled crypto derivatives instruments. Guggenheim Partners manages over 270 billion dollars.
Standard Chartered Bank is setting up its own digital currency exchange. The move comes as a means of attracting more customers and specifically competing with another banking giant HSBC which is opposed to crypto. The project will be undertaken by the company’s innovation department in partnership with a Hong Kong-licensed cryptocurrency exchange.
Norton 360—a company popular for its antivirus software—has announced a new product that will allow its customers to mine Ethereum. The firm says that digital miners take a lot of risks when extracting new cryptocurrencies, and this will allow them to invoke more protection while garnering profits from digital coins.
Electric car company Daymak, has announced production on a new electric vehicle that claims to mine crypto while it charges. The car—which will be known as the Avvenire Spiritus—will be ready by 2023 and has already garnered Daymak more than $300 million in pre-sales.
BitMex has partnered with Astrobotic to take Bitcoin to the moon…literally. The mission will send a specially minted physical coin loaded with 1 BTC to the surface of the Moon in the world’s first commercial soft landing there.
And finally, a follow up on the DubaiCoin story we reported last week. The token claiming support of Dubai regulators that surged over 1000% turns out has nothing to do with the city emirate. The city issued a warning to investors, confirming the website promoting it was fake. Be aware of such cryptocurrency scams and continue to do your own research before investing.
That’s what’s happened this week in crypto, see you next week.