Coming every Saturday, hodler digest Will help you track every single important news that happened this week. The best (and worst) quotes, adoption and regulation highlights, major coins, predictions and more – a week on Cointelegraph in one link.
Top news of the week
Bill to make bitcoin legal tender in El Salvador
El Salvador has become the first country in the world to officially adopt bitcoin as legal tender.
A law outlining the proposals, introduced by President Nayib Bukele, was passed with a “superiority”, attracting 62 out of 84 votes.
Under the so-called bitcoin law, merchants would have to accept bitcoin as well as US dollars – and would be expected to offer prices for goods and services in both currencies. The government is going to issue an official crypto wallet for consumers to use, but they can rely on private providers if they wish.
Permanent residence is going to be available for those who invest 3 BTC In the country, and now, the implementation period of 90 days has started.
As the 90-day implementation period begins, the president has asked A state-owned geothermal electric company to investigate plans to “provide facilities for bitcoin mining with very cheap, 100% clean, 100% renewable, zero-emissions energy” from its own volcanoes.
Unsurprisingly, the response from regulators has not been overwhelmingly positive. An executive of the Bank for International Settlements called the move of El Salvador an “interesting experiment” – But be warned that BTC has not passed the test of being a means of payment. The International Monetary Fund has also warned of the decision can have significant legal and financial implications.
New Report: El Salvador Bitcoin Pump Fails To Attract Smart Money For Now
El Salvador’s plans were first announced during a keynote address at Bitcoin 2021 in Miami, but the markets gave little notice.
Things changed on Wednesday — the day Congress passed the law. Bitcoin recorded its best daily performance since February 8, the day Tesla announced it had added $1.5 billion The value of BTC in its balance sheet.
While there are reasons to celebrate, Stack Funds’ head of research Lenard Neo warned that there was little in the way of a rapid response from so-called “smart” investors.
Bringing the bulls back to earth, he warned: “We should not expect a significant impact on bitcoin for a country with a per capita GDP of less than 7% of the US, its economy suffering the worst crash in decades last year.”
bitcoin hits seven day high $38,334.33. A strong move during Friday’s options expiry helped protect the bulls as any levels below $34,000 would have erased 98% Call options.
Microstrategy gets orders worth $1.6 billion in junk bond offering
MicroStrategy has attracted $1.6 billion The order price in a recent junk bond offering—four times more than what the business intelligence firm had initially demanded.
Junk bonds are loans offered by companies without investment-grade credit ratings and typically offer high returns to investors while taking on higher risks.
This comes days after the publicly listed company, which 92,079 BTC B with the current market price of $3.2 billionannounced plans to convert its crypto holdings into a new subsidiary called MacroStrategy LLC.
Although it has increasingly been interpreted as news, alarm bells rang Following the announcement of the junk bond offering – the latest in a series of loans to buy more bitcoin. MSTR stock fell after the news.
MicroStrategy closes out the week $516.44, somehow far from year-on-year highs $1,315 Which was seen in February.
In a recent article, analyst Juan de la Hoz stated that the microstrategy will be at risk of bankruptcy if the bitcoin price falls: “Microstrategy is a rare high-risk low-reward investment opportunity, and a strong sell.”
Some of the participants of Bitcoin 2021 in Miami have tested positive for COVID-19, leading to negative media coverage and speculation that it could be a “superspreader event”.
Thousands went to the two-day event, which did not require proof of vaccination or enforce the wearing of face masks. Being packed into crowded auditoriums had little in the way of social distancing either.
An influencer on crypto Twitter, Mr. Whale, speculated that there were more than 50,000 Visitors to the event. He said it was the first major in-person conference since the pandemic began, and added that dozens of participants have tested positive.
Vitalik Buterin has made $4.3 million from his $25,000 investment in Dogecoin… so far
Ethereum co-founder Vitalik Buterin reveals he invested in $25,000 in DOGE in 2016 … and have made a lot of money as a result.
His first concern was how he would tell his mother—not least because “the only interesting thing about this coin is that there’s a dog logo somewhere.”
Buterin told Lex Friedman’s podcast that he was spared the speculative frenzy that resulted from Elon Musk’s fascination with cryptocurrencies as a joke.
He recalled being in lockdown in Singapore when the price of DOGE went up 775% from $0.008 To $0.07 During a single day, wondering: “Oh my god, my DOGE is worth, like, a lot!”
Buterin added: “I sold half of DOGE, and I got $4.3 million, donated the profit to GiveDirectly, and a few hours after doing so, the price dropped from about $0.07 to $0.04.”
assuming that he has held the remainder 50% With his DOGE stash, he would now be sitting on tens of millions of dollars in paper profits.
winners and losers
At the end of the week, bitcoin is on $35,211.65, ether at $2,318.90 and on XRP $0.81. total market cap is $1,493,755,186,500.
Among the top 100 cryptocurrencies, only two altcoins of the week are about to gain amp and chilizo. Top three altcoin losers of the week internet computer, Thorchen and synthetics.
For more information on crypto prices, be sure to read Cointelegraph’s market analysis.
most memorable quotations
“Regulatory clarity enables companies like BlockFi to continue to innovate. It enables consumers and investors to participate in this space with utmost confidence.”
zack prince, BlockFi CEO
“The ~$38,000 area is yet to be seen for BTC.”
“Cryptocurrencies exhibit all the signs of ‘bad money’: unclear origins, uncertain valuations, shady business practices.”
Peter HasekampNetherlands Bureau for Economic Analysis
“Investors should consider the volatility of the bitcoin and bitcoin futures markets, as well as the lack of regulation and the potential for fraud or manipulation in the underlying bitcoin market.”
US Securities and Exchange Commission
“@davidguetta knows what’s up. His Miami pad is for sale. Can buy with #Bitcoin or #Ethereum. In general, it’s not a good idea to break into #crypto that consistently outperforms real estate… but smart people like Guetta like to take it from you. “
“The adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis. We are following developments closely, and we are continuing our discussions with the authorities. Will keep.”
gerry riceIMF spokesperson
“A few moments ago in our #London cellroom, an extremely rare “Alien” Cryptopunk #7523 from the collection of @sillytuna sold for $11.8M as part of our #NativelyDigital NFT auction – A New World auction for a single Cryptopunk setting a record.
“Stablecoins Aren’t Launching Us Into Some Brave New World” […] The key here is to make sure that just because something is packed in flashy technology, we don’t in any way treat its risks differently. “
Christina Segal-Knowles, Bank of England
“Digital currency has huge promise from central banks. Legitimate digital public money can help weed out fictitious digital private money.”
Elizabeth Warren, Democratic Senator
“I don’t think @michael_saylor is familiar with Murphy’s Law. What if #Bitcoin drops below $20K? Will #MicroStrategy sell stocks at lower prices to bolster its balance sheet? Is it bitcoin to raise cash? Will creditors give their bitcoins to HODL if MicroStrategy goes bankrupt?”
Peter SchiffEconomist and crypto skeptic
“I should have bought more – that was my fault.”
Mark Lassery, Avenue Capital Group CEO
FUD of the week
US Officials Recover $2.3 Million in Crypto from Colonial Pipeline Ransom
US government workforce officials have seized more than $2 million Ransom paid in crypto after an attack on the colonial pipeline system that led to fuel shortages for many in the US
The bitcoin in question was linked to Russia-based Darkside hackers, and about 63.7 BTC The back has been patted.
While there is no doubt that this is a good thing, the price of bitcoin actually fell due to concerns about how the FBI actually managed to confiscate the cryptocurrency. coinbase suggestions are denied that it was included.
Mati Greenspan, the founder of Quantum Economics, has said that the recovered ransom is actually faster for bitcoin, as many expected US politicians to use crypto as scapegoats for attacks and impose some heavy-handed regulations.
Proposed New York bitcoin mining ban eased to allow green projects
A proposed crypto mining ban on all mining operations in New York has been forcibly eased for a three-year hiatus – and will now allow green projects.
The bill passed in the Senate on June 8, and has now been sent to the state assembly. If the bill is passed there, it will be given to Governor Andrew Cuomo to approve or veto the proposed legislation.
Initial New York Senate Bill 6486A sought to halt all crypto mining for three years to review the environmental impact on mining operations in the tri-state area.
However, the Senate was amended to bring the bill in line, and the amended 6486B bill now focuses solely on any firm that uses carbon-based fuel sources to power proof-of-work crypto mining. .
Victims of Alleged $3.6 Billion Crypto Ponzi Believe the Exchange Is Legitimate
Victims of an alleged $3.6 billion crypto Ponzi scheme in South Korea are hindering the progress of a police investigation and joint trial – as they still believe in the project and expect a return on their investment.
V Global is accused of defrauding nearly 69,000 people out of four trillion won ($3.6 billion), all while promising investors they would triple their investments.
A notice on the company’s website said it strongly denies the “false” claims and has filed a police complaint for “defamation and obstruction of business”.
If V Global is found guilty, it would potentially be one of the largest crypto-related Ponzi schemes on record, similar to OneCoin’s infamous multi-billion Ponzi scheme in 2015.
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