El Salvador’s adoption of Bitcoin as legal tender, a year ago, was considered a watershed moment by crypto advocates hankering for more recognition for the world’s biggest cryptocurrency. The tiny Central American country is the region’s fourth biggest economy and has been a dollarized nation since 2001. Proponents of the move argued that Bitcoin adoption would unshackle its economy from American monetary policy and bring … Continue reading Is El Salvador’s Bitcoin Experiment A Failure?
It was unthinkable some years ago. Fed Day – a day when the Federal Reserve Open Markets Committee (FOMC) meets – is fast becoming an important ritual in bitcoin’s calendar because it determines the cryptocurrency’s future price trajectory. Cryptocurrency markets are poised in anticipation of Fed Chairman Jerome Powell’s announcement his afternoon regarding interest rate hikes. Last month, Chairman Powell indicated that consumers should be … Continue reading Notes 9/21: FOMC and Bitcoin Price, Retail CBDCs, and Tether In Trouble Again
The effect of Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS) on the price of its native token ether has receded. Investors bid up ether’s price in the weeks leading up to the merge. It remained flat during the actual event. And now, it is in decline. After reaching a high of $2,007 slightly more than a month ago, ether prices … Continue reading Notes 9/16: ETHW Crash, ETH As a Security
Ethereum’s Merge – a transition from the Proof of Work consensus mechanism to Proof of Stake – was finalized at 6:59 AM this morning. The Merge has been in the making for many years and was implemented by nine teams and more than 100 developers spread out across the globe. As has been repeated many times across multiple media platforms, the event cuts down the … Continue reading Notes 9/15: The Merge, Ether As Wall Street Asset, and Payments Industry Regulation
When Bitcoin was launched, it had ambitions to become a peer-to-peer payment system powered by electronic cash. It is yet to fulfill that promise. Ethereum, another monetary system underpinned by blockchain, has much grander ambitions. Released six years after Bitcoin’s, Ethereum’s whitepaper outlines a raft of ambitious applications – a platform for financial derivatives to voting mechanisms to decentralized governance that works across borders – … Continue reading Notes 9/14: Ethereum’s Merge
Crypto markets were awash in a sea of red after the release of unexpected figures for the Consumer Price Inflation (CPI) index. Bitcoin was down by almost 6% from its price 24 hours ago and trading at $20,964.21. Ethereum tumbled by 9% and is changing hands at $1,583.35. The overall market capitalization of cryptocurrency markets 5.1% to $1 trillion. CPI rose by 0.1% and declined … Continue reading Notes 9/13: Bitcoin Falls On Weak CPI Data, ETHW Sputters to Life, and the Max Pain of Mining Crypto
Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS), more popularly known as The Merge, continues to dominate crypto narrative. The price for Ethereum’s ether, which had been on a tear in recent weeks, fell this morning. Like most things crypto, it is difficult to pinpoint an exact reason. While Bitcoin’s price is influenced by global macroeconomic factors, the catalysts for ether’s … Continue reading Notes 9/12: Ether Prices and Staking
There were no surprises in the Securities and Exchange Commission (SEC) chief Gary Gensler’s conversation with Coindesk this morning. He hammered his main talking points – most crypto tokens are securities and crypto services should register with his agency – throughout the interview. In a later industry conference, however, he said that he was looking forward to working with Congress to pave the way for … Continue reading SEC Chief Gensler Will Work With Congress to Ensure CFTC Regulates “Non-Security” Crypto Tokens
One of the benefits being touted about Ethereum’s Merge is that it will “democratize” the blockchain by making it possible for anyone to participate in its network. That claim about the event, which will transition the blockchain from an energy-intensive Proof of Work (PoW) mining to the Proof of Stake (PoS) consensus mechanism, is similar to the one made about Bitcoin when it was first … Continue reading Notes 9/8: Ethereum’s Merge and Democratization, Ethereum’s Trends
The Merge – Ethereum’s anticipated transition from an energy-intensive Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS) continues to move markets in cryptocurrency. The Bellatrix Upgrade, initiated on the Ethereum chain this morning, pushed the price of ether, Ethereum’s native token, up by 5% to $164.37 from its price 24 hours ago. On a weekly basis, the price of ether is up by 10%. Momentum for … Continue reading Notes 9/6: The Merge Boosts Ethereum, Binance Provides A Leg Up To USDC
The fun never stops in cryptocurrencies. When they are not tilting at the windmills of a surveillance state, crypto purists are devising methods to escape it. The latest attempt comes from MakerDAO, a lending platform that is also home to Dai, the world’s fourth biggest stablecoin by market capitalization. Rune Christensen, one of its founders, proposed an “endgame” for the stablecoin to convert it into … Continue reading MakerDAO’s Unlikely Evolution
For Bitcoin and the larger crypto ecosystem, this summer wasn’t a particularly warm one. In fact, a series of bankruptcies and scandals by major players crashed the ecosystem and prices plummeted. Bitcoin price has fallen by roughly 13% from the start of August and the overall market cap for cryptocurrencies declined by 8.1% to $992 billion in the same period, based on data from Coinmarketcap. … Continue reading What Will September Bring for Bitcoin and Crypto Markets?
Equities fell and crypto markets plummeted after Federal Reserve Chairman Jerome Powell reiterated his agency’s aggressive stance towards future interest rate hikes. The Dow Jones Industrial Average fell by 1.85% while the S&P 500 and Nasdaq Composite witnessed declines of 2.18% and 2.71% respectively immediately after the Fed’s speech. Bitcoin price fell by almost 5% following Powell’s speech before recovering. As of this writing, it … Continue reading Powell Reaffirms Aggressive Stance To Rate Hikes. What Does it Mean For Crypto?
Bitcoin Depot, a bitcoin ATM company, has reached a deal to merge with a Special Purpose Acquisition Company (SPAC) that will enable it to list in public markets. The deal values Bitcoin Depot at $885 million. As their name denotes, SPACs are special vehicles that allow early-stage companies and startups to tap public markets for cash without making the rigorous disclosures required of public companies. … Continue reading Notes 8/25: Bitcoin Depot’s Mysterious Earnings, Coinbase’s Margin Compression
There’s money to be made in cryptocurrencies. And much of it is going to trading exchanges. Coinbase rode the crypto run last year to generate revenues of $7.8 billion, a surge of 550% from 2020 figures. As it turns out, rival FTX did not do too badly either. According to a recent CNBC report, FTX grew its revenue from $89 million in 2020 to $1.02 … Continue reading FTX Revenues Surpassed $1 Billion Dollars In 2021: CNBC
Controversial stablecoin Tether’s holdings of commercial paper fell and its cash and bank deposit holdings rose, according to “reasonable engagement report” released yesterday. The report provides a breakdown of the reserves backing tokens circulating in the market. Tether claims that its holdings of commercial paper and cash and bank deposits increased by 58% and 32% respectively. [Commercial paper is considered a risky investment because its … Continue reading Tether’s Misrepresentations Continue In Its Latest Reserves Report
The fallout from the Treasury Department’s sanctions on Tornado Cash continued this week. The department’s Office of Foreign Assets Control (OFAC) claims that the crypto-mixing service, which is a decentralized application (dApp) running off Ethereum’s blockchain, was used by hackers in North Korea to launder more than $7 billion worth of cryptocurrencies. Privacy activists in crypto are decrying the sanctions as an assault on “free … Continue reading Tornado Cash Sanctions Become Rallying Cry For Crypto Privacy Activists
The world’s biggest stablecoin has switched accounting firms again. In an announcement this morning, Tether said it had hired BDO Italia, a subsidiary of BDO Inc., one of the world’s biggest accounting firms, to produce attestations about its reserve holdings – a basket of assets that is used to back up and facilitate quick redemption of Tether tokens. It also said that it was planning … Continue reading Tether Hires New Accounting Firm ￼
One of the constituencies affected by the slump in bitcoin prices is its mining community. A decline in bitcoin’s price makes the cryptocurrency less profitable to mine because revenues fall. Bitcoin mining is a capital-intensive business. It requires significant investments in real estate, mining rigs, electricity, and, in some instances, energy sources. The main source of revenues for miners, after making these investments, are transaction … Continue reading How Are Bitcoin Miners Handling The Crypto Winter?
Establishing an interface with banks has been one of the biggest problems for cryptocurrency businesses in the last ten years. Bitcoin’s dubious utility, an absence of regulatory guidance and volatility in crypto markets has made mainstream banks wary of processing transactions that involve cryptocurrencies. Crypto companies have, instead, turned towards smaller institutions. Three banks – Silvergate Bank, Signature Bank, and Customers’ Bank – have garnered … Continue reading Notes 8/16: Crypto Banks
Chandler Guo is what is known as an OG (Original Gangster, for the uninitiated) in crypto circles. A former beef salesman, Guo made his cryptocurrency millions by setting up a mining farm in Inner Mongolia and selling it for a massive payday during the asset class’s early days. He reportedly lives in a California mansion now and owns an estate, where he grows vegetables and … Continue reading Notes 8/12: Chandler Guo’s Crusade, the Tornado Cash Circus