Come every Saturday, Hodler’s Digest Will help you keep track of every important news report that happened this week. The best (and worst) quotes, adoption and regulatory focus, leading tokens, forecasts, etc.-Cointelegraph for the week on a link.
Headlines this week
El Salvador officially became the first country in the world to adopt Bitcoin as its legal tender.
A law outlined by President Nayib Bukele (Nayib Bukele) was passed with an “absolute majority”, which received 62 votes out of 84.
According to the so-called Bitcoin law, merchants must accept Bitcoin and U.S. dollars-they will be expected to display the prices of goods and services in both currencies. The government will release an official crypto wallet for consumers to use, but if they want, they can rely on private suppliers.
Investors will get permanent residency 3 Bitcoin In China, the 90-day implementation period has now begun.
With the start of the 90-day implementation period, The president asked A state-owned geothermal power company is reviewing plans to “provide very cheap, 100% clean, 100% renewable, and zero-emission energy for Bitcoin mining”-from its own volcano.
Unsurprisingly, the response of regulators has not been very positive.An executive at the Bank for International Settlements says El Salvador’s move An “interesting experiment” -But warned that BTC has not passed the test of becoming a payment method. The International Monetary Fund also warned of the decision May have significant legal and financial consequences.
El Salvador’s plan was first announced in a keynote speech at the 2021 Bitcoin Conference in Miami, but the market did not seem to notice.
Things changed on Wednesday-the day Congress passed legislation. Bitcoin recorded its best single-day performance since February 8, when Tesla announced the increase $1.5 billion The value of BTC to its balance sheet.
Despite a cause for celebration, Lennard Neo, head of research at Stack Funds, warned that so-called “smart” investors have had little bullish reaction.
Bringing the bull back to earth, he warned: “For a country with a GDP per capita of less than 7% of the United States and whose economy suffered the worst crash in decades last year, we should not expect a significant impact on Bitcoin.”
Bitcoin’s seven-day high is at USD 38,334.33. During the option expiration on Friday, the strong move helped save the bulls, as any lower than 34,000 USD Will wipe off 98% Call options.
MicroStrategy attracted $1.6 billion The order value of the most recent junk bond issuance is four times the value of the order originally sought by the business intelligence company.
Junk bonds are bonds issued by companies that do not have an investment-grade credit rating, and usually provide investors with higher returns while taking on higher risks.
A few days ago, this listed company owned 92,079 Bitcoin The current market value is US$3.2 billion, Announced plans to spin off its encrypted assets into a new subsidiary called MacroStrategy LLC.
Although this is interpreted as good news, The alarm bell started to ring After announcing the issuance of junk bonds-this is the latest in a series of debt financing to buy more bitcoins. After the news, MSTR’s stock price fell.
MicroStrategy closed this week at USD 516.44, Some distance from the year-to-date high 1,315 USD I saw it in February.
In a recent article, analyst Juan de la Hoz stated that if the price of Bitcoin falls, MicroStrategy will face the risk of bankruptcy, adding: “MicroStrategy is a rare high-risk, low-return investment opportunity, and a strong selling opportunity.”
Some people who participated in Bitcoin 2021 in Miami tested positive for COVID-19, which led to a wave of negative media reports and speculated that this might be a “super spreader incident.”
Thousands of people participated in the two-day event and did not need to provide vaccination certificates or compulsory masks. When people crowd into the crowded auditorium, there is almost no social distancing.
Mr. Whale, an influencer on Crypto Twitter, estimates that more than 50,000 Visitors at the event site. He pointed out that this was the first large-scale face-to-face meeting since the pandemic began, and said dozens of participants had tested positive.
Ethereum co-founder Vitalik Buterin revealed that he invested 25,000 USD Joined DOGE in 2016…and made a lot of money as a result.
His first concern was how he would tell his mother—especially because “the only interesting thing about this coin is that there is a dog sign somewhere.”
Buterin told Lex Fridman’s podcast that he was caught off guard by the speculative frenzy caused by Elon Musk’s fascination with jokes about cryptocurrencies.
He recalled when the price of DOGE soared, he was locked in Singapore 775% From 0.008 USD to 0.07 USD In the course of the day, think about: “Oh my God, my DOGE is worth a lot of money!”
Buterin added: “I sold half of DOGE, got 4.3 million dollars, donated the profit to GiveDirectly, and after a few hours of doing this, the price dropped from about $0.07 to about $0.04.”
Suppose he insists on the rest 50% From his DOGE collection, he will now sit on tens of millions of dollars in book profits.
Winners and losers
This weekend, Bitcoin is located at 35,211.65 USD, Ether USD 2,318.90 And XRP in 0.81 USD. Total market capitalization 1,493,755,186,500 USD.
Among the 100 largest cryptocurrencies, the only two altcoin risers this week are Amplifier with Chiliz. The top three altcoin losers this week are Internet computer, Support chain with Synthesizer.
For more information on encryption prices, be sure to read Cointelegraph’s market analysis.
The most memorable quotes
“Regulatory clarity enables companies like BlockFi to continue to innovate. It enables consumers and investors to participate in this industry with the utmost confidence.”
Prince Zach, BlockFi CEO
“The area of about 38,000 USD in BTC is an area worthy of attention now.”
“Cryptocurrency exhibits all the characteristics of’bad currency’: unknown sources, uncertain valuations, and improper trading behavior.”
Peter Haskamp, Netherlands Agency for Economic Analysis
“Investors should consider the volatility of Bitcoin and Bitcoin futures markets, as well as the lack of regulation in the Bitcoin market and the possibility of fraud or manipulation.”
“@Davidguetta knows what’s going on. His Miami pad is for sale. It can be purchased with #Bitcoin or #Ethereum. In general, it is not a good idea to separate from the deflationary #crypto that continues to outperform real estate… but something like Guetta Smart people like to take it from you.”
“The adoption of Bitcoin as legal tender has raised many macroeconomic, financial and legal issues that require very careful analysis. We are monitoring developments closely and will continue to consult with the authorities.”
Grilais, Spokesperson of the International Monetary Fund
“Not long ago, at our #London auction, an extremely rare “Alien” CryptoPunk #7523 from the @sillytuna collection was sold as part of our #NativelyDigital NFT auction for $11.8 million-creating a single CryptoPunk’s new world auction record.”
“Stable coins have not allowed us to enter some brave new worlds […] The key here is to ensure that just because something is packaged in shiny technology, we don’t treat the risks it brings in a different way in some way. “
Christina Siegel-Knowles, Bank of England
“Digital currency from the central bank has a bright future. Legal digital public funds can help expel false digital private funds.”
Elizabeth Warren, Democratic Senator
“I think @michael_saylor is not familiar with Murphy’s law. What if #Bitcoin falls below $20,000? #MicroStrategy will sell stocks at a low price to support its balance sheet? Will it sell Bitcoin to raise cash? If MicroStrategy Bankruptcy, will creditors hold their bitcoins?”
Peter Schiff, Economist and crypto skeptic
“I should buy more-it was my mistake.”
Mark Lasley, Chief Executive Officer of Avenue Capital Group
FUD this week
Officials of the U.S. government task force seized more than US$2 million The ransom was paid in cryptocurrency after the colonial pipeline system was attacked, which caused a fuel shortage for many people in the United States
The Bitcoin in question is related to the DarkSide hacker in Russia, about 63.7 Bitcoin Has been retracted.
Although there is no doubt that this is a good thing, the price of Bitcoin actually eventually fell because of concerns about how the FBI actually managed to confiscate the cryptocurrency. Coin Bank Refuted the suggestion It involves.
Mati Greenspan, founder of Quantum Economics, stated that the ransom recovered is actually beneficial to Bitcoin, because many people had expected that U.S. politicians would use cryptocurrency as a scapegoat for attacks and impose strict regulations.
A cryptocurrency mining ban that required the mandatory suspension of all mining operations in New York for three years has been watered down, and green projects will now be allowed.
The bill was passed in the Senate on June 8 and has now been submitted to the state legislature. If the bill is passed there, it will be submitted to Governor Andrew Cuomo to approve or reject the proposed legislation.
The original New York Senate Bill 6486A sought to halt all crypto mining within three years in order to conduct environmental impact reviews of mining operations in the tri-state area.
However, the bill was amended in the Senate to pass it, and the revised bill 6486B now only focuses on any company that uses carbon-based fuel sources to power proof-of-work crypto mining.
The alleged victims of the $3.6 billion cryptocurrency Ponzi scheme still believe the exchange is legitimate
According to reports, victims of South Korea’s alleged $3.6 billion crypto Ponzi scheme hindered the progress of police investigations and joint litigation because they still believe in the project and hope to get a return on investment.
V Global was accused of defrauding approximately 69,000 people out of 4 trillion won (3.6 billion US dollars), while promising to investors that they would triple their investment.
The notice on the company’s website stated that it strongly denies the “false” allegations and has filed a “defamation and obstruction of business” complaint to the police.
If V Global is found guilty, it could become one of the largest encryption-related Ponzi schemes on record, similar to OneCoin’s infamous multi-billion Ponzi scheme in 2015.
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