Come every saturday Hodler’s digest helps you keep track of every single important message that happened this week. The best (and worst) quotes, introductory and regulatory highlights, leading coins, predictions, and more – one week on Cointelegraph in one link.
This week’s top stories
Bill to approve Bitcoin as legal tender in El Salvador
El Salvador is officially the first country in the world to introduce Bitcoin as legal tender.
A law outlining the proposals was passed by President Nayib Bukele with a “superior majority”, receiving 62 votes out of 84.
Under what is known as the Bitcoin Act, merchants must accept both Bitcoin and US dollars – and they are expected to quote prices for goods and services in both currencies. The government will issue an official crypto wallet for consumers, but they can rely on private providers if they prefer.
Permanent residence will be available to those who invest 3 BTC in the country, and now a 90-day implementation phase has started.
With the beginning of the 90-day implementation period the president asked a state-owned geothermal electricity company reviewing plans to “provide bitcoin mining facilities with very cheap, 100% clean, 100% renewable, zero-emission energy” – from its own volcanoes.
Unsurprisingly, the regulatory response hasn’t been overwhelmingly positive. A senior executive at the Bank for International Settlements has mentioned El Salvador’s move an “interesting experiment” – but warned that BTC failed the test as a means of payment. The International Monetary Fund has also warned against the decision could have significant legal and financial implications.
New report: El Salvador’s bitcoin pump failed to attract smart money for the time being
El Salvador’s plans were first announced during a keynote speech at Bitcoin 2021 in Miami, but the markets appeared to be paying little attention.
Things changed on Wednesday – the day Congress passed the law. Bitcoin saw its best daily performance since February 8, the day Tesla announced it was being added $ 1.5 billion Value of BTC on its balance sheet.
While there is cause for celebration, Lennard Neo, research director at Stack Funds, warned that there was little bullish reaction from so-called “smart” investors.
When he brought the cops back to Earth, he warned: “We shouldn’t expect a significant impact on Bitcoin for a country with a GDP per capita less than 7% that of the US, whose economy suffered its worst crash in decades last year.”
Bitcoin’s seven-day high stands at $ 38,334.33. The strong move helped save the bulls during Friday’s options expiration as every level below it $ 34,000 would have wiped it off 98% of call options.
MicroStrategy wins $ 1.6 billion contracts to offer junk bonds
MicroStrategy has picked up $ 1.6 billion Contract value in a recent junk bond offering – four times what the business intelligence firm was originally looking for.
Junk bonds are bonds issued by non-investment grade companies and typically offer investors higher returns with higher risk.
It comes days after the publicly traded company owns it 92,079 BTC with a current market value of $ 3.2 billion, announced plans to spin off its crypto holdings into a new subsidiary called MacroStrategy LLC.
Although this was interpreted as bullish news, Alarm bells began to ring after the junk bond offer was announced – the latest in a series of debt increases to buy more bitcoin. MSTR stock fell after the news.
MicroStrategy closed the week $ 516.44, a bit far from the previous year’s high of $ 1,315 that was seen in February.
In a recent article, analyst Juan de la Hoz said MicroStrategy was in danger of going bankrupt if bitcoin prices fell, adding: “MicroStrategy is a rare low-risk, low-return, high-risk investment.”
Positive COVID-19 tests from Bitcoin 2021 participants will go viral
Some of those who attended Bitcoin 2021 in Miami have tested positive for COVID-19, sparking a wave of negative media coverage and speculation that it may have been a “superspreader event”.
Thousands of people came to the two-day event that did not require proof of vaccination or the wearing of face masks. There was also little social distancing as people huddled in crowded auditoriums.
An influencer on Crypto Twitter, Mr. Whale, estimated it was more than 50,000 Visitors to the event. He noted that this was the first major face-to-face conference since the pandemic began and said dozens of attendees tested positive.
Vitalik Buterin has made $ 4.3 million on his $ 25,000 investment in Dogecoin … so far
Ethereum co-founder Vitalik Buterin has announced that he has invested $ 25,000 in DOGE in 2016 … and earned a pretty penny with it.
His first concern was how he would tell his mother – not least because “the only interesting thing about this coin is a logo of a dog somewhere”.
Buterin told Lex Fridman’s podcast that he was surprised by the speculative frenzy that resulted from Elon Musk’s fascination with the joke cryptocurrency.
He remembered being banned in Singapore when the price of DOGE skyrocketed 775% of $ 0.008 to $ 0.07 thinking in the course of a single day: “Oh my god, my DOGE is worth so much!”
Buterin added: “I sold half of the DOGE and got $ 4.3 million, donated the profit to GiveDirectly, and a few hours later the price dropped from about $ 0.07 to $ 0.04.”
Provided he held the rest of them 50% from his DOGE supply he would now be sitting on paper profits of tens of millions of dollars.
Winner and Loser
At the end of the week, Bitcoin is at $ 35,211.65, Ether at $ 2,318.90 $ 2 and XRP at $ 0.81. The total market capitalization is $ 1,493,755,186,500.
Among the top 100 cryptocurrencies, the week’s only two are altcoin winners amp and Chiliz. The three biggest altcoin losers of the week are Internet computer, THOR chain and Synthetix.
For more information on crypto pricing, be sure to read Market analysis by Cointelegraph.
The most memorable quotes
“Regulatory clarity enables companies like BlockFi to continue to innovate. It enables consumers and investors to participate in this sector with the greatest possible confidence. “
Zac Prince, BlockFi CEO
“The ~ $ 38,000 area for BTC is the one to watch for now.”
“Cryptocurrencies have all the hallmarks of ‘bad money’: unclear origin, insecure valuation, dodgy trading practices.”
Pieter Hasekamp, Dutch Bureau for Economic Analysis
“Investors should consider the volatility of Bitcoin and the Bitcoin futures market as well as the lack of regulation and the potential for fraud or manipulation of the underlying Bitcoin market.”
U.S. Securities and Exchange Commission
“@Davidguetta knows what’s going on. His Miami pad is for sale. Can be bought with #Bitcoin or #Ethereum. In general, it’s not a good idea to part with a disinflationary #crypto that consistently outperforms real estate … but smart people like Guetta are happy to take it away from you. “
“The introduction of Bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis. We are closely following developments and will continue our consultations with the authorities. “
Gerry Reis, IMF spokesman
“A few moments ago, an extremely rare“ Alien ”CryptoPunk # 7523 from the collection of @sillytuna in our #NativelyDigital NFT auction was sold for 11.8 million US dollars in our #London sales room – a new auction world record for a single CryptoPunk . “
“Stablecoins don’t take us to a brave new world […] The key here is to make sure we don’t treat the risks it poses differently just because something is wrapped in shiny technology. “
Christina Segal-Knowles, Bank of England
“Central bank digital currencies hold great promise. Legitimate digital public money could help to distribute counterfeit digital private money. “
Elizabeth Warren, Democratic Senator
“I don’t think @michael_saylor is familiar with Murphy’s Law. What if #Bitcoin crashes below $ 20,000? Will #MicroStrategy sell stocks at low prices to prop up its balance sheet? Will it sell Bitcoin to raise cash? If MicroStrategy goes bankrupt, will the creditors HODL their bitcoins? “
Peter Schiff, Economist and crypto-skeptic
“I should have bought a lot more – that was my mistake.”
Marc Lasry, CEO of the Avenue Capital Group
FUD of the week
U.S. officials reclaim $ 2.3 million in crypto from Colonial Pipeline ransom
US government task force officials have more than $ 2 million Paid in crypto as a ransom after an attack on the Colonial Pipeline system that caused fuel shortages for many people in the United States.
The bitcoin in question has been linked to DarkSide hackers based in Russia, and around 63.7 BTC was scratched back.
While there is little doubt that this is a good thing, Bitcoin’s price actually fell amid concerns about how the FBI actually managed to seize the cryptocurrency. Coin base has refuted suggestions that it was there.
Mati Greenspan, founder of Quantum Economics, has said the ransom collected for Bitcoin is actually bullish as many expected US politicians to use crypto as a scapegoat for the attack and enforce some stubborn regulations.
Proposed New York Bitcoin mining ban watered down to allow green projects
A proposed crypto mining ban, which calls for a forced three-year hiatus on all mining operations in New York, has been watered down – and will now enable green projects.
The bill was passed in the Senate on June 8th and has now been transferred to the state parliament. If the bill is passed there, it will be served on Governor Andrew Cuomo to either approve or veto the bill.
The original New York Senate Bill 6486A aimed to halt all crypto mining for three years in order to conduct environmental impact assessments for mining operations in the tri-state area.
However, the bill was changed in the Senate to get it over the line, and the revised 6486B bill now focuses solely on all companies using carbon-based fuel sources for proof-of-work crypto mining.
Alleged $ 3.6 billion crypto Ponzi victims still believe the exchange is legitimate
Victims of an alleged $ 3.6 billion crypto Ponzi scheme in South Korea are reportedly hindering the progress of a police investigation and joint lawsuit – as they still believe in the project and have hopes for a return on their investments.
V Global is accused of defrauding approximately 69,000 people of four trillion won ($ 3.6 billion) while promising investors to triple their investments.
A notice posted on the company’s website states that it has vigorously denied the “false” allegations and filed charges with the police for “defamation and obstruction of business.”
If V Global is found guilty, it would potentially be one of the largest crypto-related Ponzi schemes, much like OneCoin’s infamous multi-billion ponzi scheme in 2015.
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