roadrunner

While cryptocurrencies experienced their fair share of ups and downs over the week, nothing is holding back the stratospheric rise of NFTs. As another busy week comes to a close, a lot has unfolded in the world of NFTs. Here’s a quick rundown of the top events of this week. Bluzelle Revamps Itself to Overcome NFTs’ Critical Storage Problems Bluzelle, the decentralized data network for dApps, undergoes a massive transformation to bring forth a new and updated version, Bluzelle 2.0. While it started as a decentralized database, the platform has added several new modules alongside a brand redesign. To cater to the rising demand for tamper-proof, secure, and scalable storage for NFTs, Bluzelle 2.0, in collaboration with Mintable, has added file storage to its existing services. The new feature allows you to store NFT files over its decentralized network, replicating the files across several validator nodes, ensuring scalability, security, and availability. Marvel and DC Artist Rob Prior to Host an NFT Livestream Event Acclaimed artist Rob Prior, known for his legendary artwork for Marvel and DC, will burn his original painting and unveil the NFT during the NFT Livestream event hosted by Mogul Productions. Rob’s painting, inspired by the Wolf of Wall Street, showcases money falling from the sky. It is an expression signifying the future of art and NFTs. The painting will be digitized as an ERC1155 NFT during the live stream. In addition, Rob will also be unveiling two of his upcoming NFT drops, featuring a painting of Luke Skywalker from Star Wars and a Deadpool rendition. Enjin Airdrops 50,000 Unique NFTs Within Ads and Social Media Posts Enjin, the world’s leading NFT ecosystem and creator of the ERC1155 token standard, launched a unique marketing campaign to attract and engage new users. Dubbed as “MyFirstNFT,” the marketing tactic lays the foundation for a revolution in social media marketing. As part of the campaign, Enjin airdropped 50,000 unique NFTs, embedded in digital ads and social media posts across Twitter, Reddit, Facebook, and Instagram. All of the NFTs were displayed as scannable QR codes that activated transactions when scanned with the Enjin wallet. The campaign was a roaring success as all 50,000 NFTs were claimed within 48 hours, adding 38,000 new users. Terra Virtua Opens Auctions for The Br8ve NFT Terra Virtua, the home of digital collectibles, added another unique artwork, the Br8ve, to its platform. The NFT includes the world’s most advanced VR headset designed by the Finnish brand Varjo, controllers, a powerful laptop, and a physically signed print copy of the original version. Commissioned by an anonymous crypto OG who first revealed that Satoshi Nakamoto is not one but eight different individuals, the Br8ve NFT tells the story of Bitcoin. To bring the NFT to life, digital artist VESA spent five months converting it into digital artwork, followed by another six months of work by 3D maestro Frank Spalteholz and music composer Mighty33 to convert it into an exclusive VR artwork finally. Currently the bid for the artwork is at $500,000, which is the highest bid thus far on the Terra Viruta marketplace. Associated Press (AP) Unveils the First NFT From Its Collection of 10 Iconic NFTs The Associated Press (AP) has listed the first item from its collection of 10 unique NFTs for auction on OpenSea, the world’s biggest NFT marketplace. Dubbed as the AP ARTiFACTS: The 175 Collection, the series of NFTs celebrates the legendary news agency’s exceptional photojournalism over 175 years. The first NFT from the collection, a photo of American soldiers raising the American flag on Iwo Jima in 1945, is now available for bidding. Renowned digital artist, Marko Stanojevic, is the man behind transforming the Pulitzer Prize-winning image into digital art. It also includes some of the rarest images clicked by AP photographer Joe Rosenthal alongside an original music composition by Nick Kennerly. From iconic images to comics, what’s next for NFTs? Can you think of any other unexplored niche? Let us know in the comments section below. View the full article

Venezuela has been listed as the third country with the most cryptocurrency adoption in the world by Chainalysis in its 2020 report. With its citizens coping with crippling inflation and losing purchasing power, the country has taken a turn for these assets to survive. But what are the real numbers behind this crisis that made Venezuelans change their whole way of living? How Venezuela Adopted Crypto: The Numbers It is a popularly known fact that Venezuela is one of the countries that have adopted cryptocurrency with the most force in LATAM. This was corroborated by Chainalysis in its latest 2020 Geography of Cryptocurrency Report, where it states that Venezuela is in fact the third country with the most cryptocurrency adoption in all the world. There is no doubt in what caused this: the economic disaster that was the result of years of wrong monetary policies, exchange controls, and corruption. But how deep is the hole that Venezuelans are living in today? How Venezuela went from one of the richest countries in the region to become an inflationary mess in just a few years? It is difficult to pinpoint the numbers behind this disaster because official institutions have been withholding them for years. But several non-official sources can help us understand the magnitude of this crisis. Inflation in Venezuela: One of the Highest of the World While the Venezuelan economy always had a tendency to have important inflationary numbers, it reached a point of no return in 2014, with an annual increase of 69%. From that year, inflation figures worsen with each year, but the Central Bank of Venezuela stopped giving official numbers in 2015, which made it difficult to follow what was really going on in the country. For 2018, the International Monetary Fund estimated that the annual inflation would be 1,000,000%, a number that put Venezuela in one of the worst hyperinflationary escalates at that time. This made Venezuelans who saved in their local currency reach poverty status in less than a decade and destroyed the national currency as a store of value. Monetary Policy, Devaluation and Exchange Control The country had established an exchange control since 2003, with the creation of CADIVI, an institution that dealt with the distribution of dollars to the population and entrepreneurs according to limits dictated by the government. An official price was set by this organization for the U.S. dollar. This created a black market, that offered dollars freely but at a higher exchange rate than the official dollar price. This approach would be proven not viable anymore and the system evolved into a moving band system in 2016. However, the exchange control and the government’s policy of devaluing its own currency by increasing the price of the dollar/bolivar pair led to a de facto dollarization in the country, relegating the bolivar to a purely transactional currency. The value of the bolivar plunged even more as a consequence, making cash almost useless. To face this whole ordeal, the government took three zeroes out of its currency in 2008 and three zeroes of it again ten years later, in 2018, in a process called currency reconversion. However, this has not resulted in a more solid currency. In fact, only 1 of every 1000 emitted bolivares is in cash, leaving unbanked Venezuelans with almost no choice but to use dollars. Cryptocurrency Usage Soaring All of these factors have created a turbulent situation in the country, perfect for the adoption of new assets like cryptocurrencies, that are not linked to the emission policy of local governments and are not affected by other local problems. Numbers from Localbitcoins and Binance have confirmed this tendency, being these two the most used platforms in Venezuela to exchange bolivares or dollars. While the dollar is now the most used currency in the country for retail purchases, with 67% of the sales being paid with dollars according to a study made by Ecoanalitica, a local firm, cryptocurrency is being more and more popular among a significant part of Venezuelans, that see it as an opportunity to preserve (and even gain) part of their purchasing power. What do you think about Venezuela being the nation with the third-largest crypto adoption? Let us know what you think about this subject in the comments section below. View the full article

The Nigerian naira currency lost further ground against major currencies after it depreciated to 493 nairas for one dollar on the black market on May 25, 2021. Before the latest depreciation, the currency had stabilized at around 485 nairas to the dollar. This was shortly after the exchange rate dropped to a three and a half year low rate of 500 nairas for one dollar back in November 2020. Renewed Pressure on the Naira As one report explains, the naira’s latest depreciation comes just a week after the Central Bank of Nigeria (CBN) devalued the currency by over 5%. As previously reported by Bitcoin.com News, the CBN recently allowed the naira’s exchange rate to slide from 393 per dollar to around 410 per dollar. However, the same currency devaluation appears to have prompted the latest depreciation of the naira on the parallel market. Meanwhile, a different report is attributing the renewed pressure on Nigeria’s currency to “black market speculators who have taken advantage of the CBN’s newly adopted exchange rate to buy up and hoard dollars.” Further Devaluation Expected In the meantime, the same report also quotes analysts from CSL, a local stockbroking firm, explaining how Nigeria’s forex demand backlog will continue to add pressure to the naira in the short term. The analysts continued: As such, the CBN will likely devalue the I&E rate by about 5.0 -7.0per cent by year-end to unlock FX liquidity, attract new Foreign Portfolio Investment (FPI) flows and curb the current account imbalances, which is projected to reach US$10.80billion (2.1% of the GDP) in 2021. Before the naira’s devaluation, multilateral lending institutions like the World Bank and the International Monetary Fund had pushed for the unification of Nigeria’s multiple exchange rates. According to CSL stockbrokers, unifying Nigeria’s exchange rates sets the tone “for further funding from multilateral bodies.” Starting in 2017, Nigeria began using multiple exchange rates which the CBN continues to defend. While the central bank insists its decision to ration foreign currency is in the country’s best interests, this policy has nevertheless received widespread criticism. What are your thoughts on the naira’s latest depreciation against major currencies? You can share your thoughts in the comments section below. View the full article

Law enforcement authorities in Kyrgyzstan have confiscated thousands of crypto mining machines as part of a new offensive against illegal cryptocurrency mining in the country. Investigators have also identified industrial enterprises that have been supplying the bitcoin farms with electricity. Security Service Conducts Operation Against Illegal Mining in Kyrgyzstan The State Committee for National Security (GKNB), Kyrgyzstan’s organized crime-fighting agency, has recently found and raided a number of facilities mining cryptocurrency outside the law. The special operation has been conducted in the capital Bishkek and Chuy Oblast, the country’s northernmost region. During the offensive against illegal mining activities, law enforcement agents have seized around 2,000 cryptocurrency mining units, GKNB announced, quoted by Sputnik Kyrgyzstan. Pretrial proceedings are underway, the agency’s press service added. Ala-Too square in Bishkek. The process of cryptocurrency mining inflicts “colossal damage” on the country’s electricity network, the state committee emphasized. GKNB has also uncovered several large industrial enterprises supplying electrical power to illegal crypto farms. Most of the raided addresses are in the capital city of the Central Asian republic, Bishkek. Some of the mining devices have been seized from industrial facilities located in the Bishkek Free Economic Zone. The police are currently working to establish all individuals that have been involved in the corruption scheme. Government in Bishkek Takes Steps to Regulate Crypto Industry In August 2020, the Ministry of Economics put forward a bill regulating the taxation of bitcoin mining in Kyrgyzstan. According to the proposal, a 15% tax will be imposed on the cost of the electricity consumed to mint digital coins. The legislation obliges mining companies to apply for a registration which is needed to operate legally in the country. National Bank of the Kyrgyz Republic. In January of this year, the National Bank of the Kyrgyz Republic announced it’s preparing two draft laws to regulate local cryptocurrency exchanges. According to the bank, the bills are introducing an array of measures aimed at reducing the risks of money laundering and financing of terrorism. The trading platforms were required to report their activities to the government. Cryptocurrencies have enjoyed growing popularity in Kyrgyzstan over the past year. Decentralized digital money is viewed as a new investment opportunity and also as an alternative solution for cross-border payments. Last October, the country’s central bank suspended SWIFT transfers and banking activities amid raging anti-government protests. What are your thoughts on the government’s offensive against crypto mining farms in Kyrgyzstan? Let us know in the comments section below. View the full article

Ledn, a cryptocurrency lending and savings platform based in Canada, has managed to raise $30 million in its latest funding round. The money raised will be used to expand its offer of lending products, and to expand its reach in more countries. Ledn could take advantage of the recent problems that Blockfi, one of its contenders, is facing now to increase its share in the sector. Ledn Raises $30 Million in Latest Funding Ledn, a Canada-based cryptocurrency lending platform managed to raise $30 million in its Series A funding round, a more than tenfold increase from its first funding round. The round was led by Kingsway Capital, a London-based investment firm with a focus on digital assets and mobile internet investments. The round also had participation from other investors: Alan Howard, Hashed, Susquehanna Private Equity Investments LLLP, ParaFi Capital, Alexis Ohanian, and John Pfeffer. According to the press release statement, all of the first backers of the company also chipped in. This is the second successful funding round that Ledn has hosted, with the first one raising $2.7 million last February. Since then, the company has grown enormously with the Bitcoin bull market. Ledn’s CEO, Adam Reeds, stated that its priority is to occupy markets with big growth potential. Reeds stated: With this new injection of capital, we will expand on our success in North & South America and grow our global footprint, prioritizing growth markets. Our focus is to build simple and secure solutions that allow clients to participate in the growing digital asset economy in a way that meets their individual needs and our own rigorous standard for security and reliability. Mauricio Di Bartolomeo, who is Ledn’s CSO, stated the importance of Ledn’s proposal for emerging markets like Venezuela, where he grew up. Di Bartolomeo declared: Growing up in Venezuela, I saw firsthand how an unregulated system with little to no transparency can impact its people, and that’s why it’s such a core component of how we manage the funds our clients entrust to us. Ledn’s Focus Markets The focus that Ledn’s has on emerging markets separates them from most of their competitors. Its focus is to carry these financial opportunities to the unbanked, to onboard them to a new system. This is why Kingsway Capital has put its trust behind Ledn. Manuel Stotz, the founder of Kingsway Capital, declared: Having spent nearly a decade investing in emerging and frontier markets, we’ve had first-hand experience witnessing the power of disruptive technologies delivered to billions of consumers coming online for the very first time. The chance of bringing bitcoin (BTC) and stablecoins to these new markets via an established platform is a big opportunity for investors. And with this money influx, Ledn could have the manpower to take on the big players in the business, like Blockfi, which has faced some issues after a series of mistakes that have eroded the trust some customers had in the platform. What do you think of Ledn’s last funding round? Tell us in the comments section below. View the full article

Pocketnet is a fundamentally new way to build a social media platform powered by the cryptocurrency Pocketcoin (PKOIN). It is a mix of traditional social media platforms and Bitcoin with some cutting-edge new features, such as the ability to auction off your content through NFT-Scarce. Pocketcoin (PKOIN) is a Proof-of-Stake token that allows authors to earn crypto for their content and protects them from arbitrary censorship through community moderation. Blockchain tracks reputation and high reputation users moderate the platform. PKOIN is for decentralized advertising, boosting posts, buying unique fonts and themes in Pocketnet, as well as auctioning off NFT-Scarce tokens in the upcoming releases. Pocketnet is a network of fully decentralized equal nodes ran by users (hundreds of nodes around the world are already in operation). Take Back the Internet with Pocketnet: Exclusive Live Crypto Challenge Pocketnet announces a limited space exclusive live event for cryptocurrency buffs. The event will consist of four live sessions on June 10, 17, 24., 29 and will be called Take Back the Internet with Pocketnet: Exclusive Crypto Challenge. Learn how Pocketnet & Pocketcoin (PKOIN) blockchain changes the internet forever. The speakers will be Pocketnet core developers and surprise guests. There will be no public full recordings available from this exclusive closed-door event. Register today to reserve your spot. Register for the Free Crypto Challenge HERE. Pocketnet Releases New Whitepaper in English and Mandarin Pocketnet Core team released a new whitepaper outlining ambitious plans for further development, decentralized p2p encrypted chat, encrypted NFTs and decentralized social network advertising based on smart contracts. Read it in English HERE and in Chinese Mandarin HERE. Release of the Video Platform & Vlogger Incentive Program Pocketnet announces release of the decentralized video platform with content creators’ rewards in Pocketcoin. The video platform is set to include live video streams with seamless donations in Pocketcoin (PKOIN) cryptocurrency. Pocketnet also announces a special PKOIN incentive program for vloggers. Every 10K views with a minimum of 250 five-star ratings will bring the author an automatic reward of 350 PKOIN. This in addition to the standard rewards for high ratings in Pocketnet. Thus, a successful former youtuber could earn significantly more on Pocketnet. Creating a decentralized video hosting platform is a crucial question for several reasons: Video is becoming the main medium of communication Large providers inevitably abuse their quasi-monopoly positions by owning most of the value generated by the participants Hosting video and playing it on the web requires large, fixed cost in the infrastructure that is now mostly owned directly or indirectly by the same monopolistic players How Pocketnet video solves these problems? Pocketnet video uses an open-source technology called PeerTube but advances it in some important ways. Pocketnet blockchain provides a centralized coordination ledger, it controls which server hosts which video, who backs up whom, and very importantly how servers are compensated for their services. Here is the structure of the Pocketnet video network on the blockchain: Pocketnet video server registers on the blockchain. The server has a public address and locks some Pocketcoin (PKOIN) to be considered a valid server. It also publishes its IP address. Each Pocketnet user has a valid login and password to each of the servers (the login and password are deterministically derived through one-way functions from the Pocketnet private key). When a server registers, its public key is used to deterministically map a server into a cluster using a method called Rendezvous Hashing (also called Highest Random Weight Hashing). All servers within a cluster fully back each other up. This creates stability. If the number of servers in a cluster is below 5, new servers are assigned to that cluster by the blockchain algorithm. Each server confirms its participation in the network weekly, confirms its IP address and publishes its current capacity to accept video i.e., how much space is left. If the space left is not enough to remain in the cluster (it is more than 30% below the median in the cluster), then that server is excluded. It can continue to earn coins on any videos already uploaded but is not considered for new video uploads into that cluster. Each video post is assigned to a certain cluster based on the same Rendezvous Hashing algorithm (video transaction ID is multiplied by the public key, then the cluster with the closest hash is selected). After watching a video on the Pocketnet platform users will be asked if they liked the quality of the video. High marks will increase the reputation of each server and win them Pocketcoin (PKOIN) from the emission in the coinstake transaction, while low marks will reduce the reputation. Therefore, servers that provide low quality connection or do not actually store the video to which they were assigned, will get penalized and eventually excluded. When video is first loaded, there is a minimal PKOIN payment above and beyond the blockchain transaction fee. This covers the video hosting for 6 months. This fee per MB will be voted on by all valid servers with high reputation. After 6 months, videos that do not meet the minimum popularity bar (do not generate enough PKOIN for the servers) will need to be deleted. The author will need to pay the same minimal amount of PKOIN to keep them from deletion. There will be a notification in the Pocketnet app in such a scenario. This will allow them to keep only requested videos and compete with centralized platforms. Here is how Pocketnet solves problems A, B & C above. Tragedy of the commons. This is solved because now servers are compensated for their efforts and there is no longer a free public resource that can be abused by others. So Pocketnet blockchain and Pocketcoin (PKOIN) solve this difficult problem, while opening vast computing resources without requiring permission from Amazon AWS or any such system. Decentralized agreement. Pocketnet blockchain serves as the consensus layer. It maps every server into a cluster, controls the number of servers in a cluster algorithmically, while mapping every video into a specific cluster where it will be stored redundantly. Quality. Servers are incentivized to provide good quality, otherwise they will destroy the reputation and lose ability to earn PKOIN and more importantly will burn the locked PKOIN. Thus, you have a fully deterministic algorithm that maps any new server into a cluster and maps any new video into a cluster. Within a cluster all servers are synchronized, providing stability. The only known solution prior to Pocketnet only solved one problem out of three (specifically #2) and did it in a suboptimal way. You are talking about a Distributed Hash Table. DHT is used in torrent systems to locate a file within the system. Not only does DHT not solve problems #1 and #3, but DHT tables are notoriously slow and inefficient. One must bounce around the DHT table looking for the file, while in the combination of the Pocketnet blockchain and Rendezvous Hashing (also called Highest Random Weight Hashing), the cluster is found instantly based on the state of the blockchain at the time of the uploading of the video. Summary: Pocketnet and Pocketcoin (PKOIN) are developing rapidly after coming out of beta. The platform now boasts features that were once thought to be an exclusive province of centralized Big Tech platforms. Pocketcoin (PKOIN) facilitates the growth of the platform by allowing content creators and node operators to earn for maintaining and growing the decentralized platform. About Pocketnet: Pocketnet is a decentralized, open-sourced, non-corporate project. It is modeled on Bitcoin and can be called the Bitcoin of social networks, with the major difference that it uses the energy efficient Proof-of-Stake algorithm. Pocketnet is supported by a network of equal decentralized nodes with users maintaining full control of their data and content. Pocketnet rewards node operators, and all content contributors. Active users can gain reputation and may then participate in the sophisticated content moderation system. Many active bloggers have abandoned Big Tech’s social networks and turned their attention to Pocketnet. Pocketcoin (PKOIN) is the native token that facilitates the Proof-Of-Stake network, and emission is limited to 24,375,000. There was no premine or ICO, as the Pocketnet team is dedicated to the Bitcoin model of organic growth. Download the Pocketnet whitepaper in English here Download the Pocketnet whitepaper in Chinese Mandarin here Access the Pocketnet GitHub here This is a sponsored post. Learn how to reach our audience here. Read disclaimer below. View the full article

Virtue Poker revealed plans to organize a high-stakes 12-player celebrity poker tournament on its platform, live-streamed on Twitch, with the winner donating the event’s proceeds to their preferred charitable organization. Celebrity Charity Tournament Features NFTs & Giveaways Virtue Poker, one of the first decentralized casinos to use Ethereum and peer-to-peer networking, will soon host a charity poker tournament on its platform. Scheduled for June 22nd, the event will feature several renowned industry personalities alongside exclusive prizes and giveaways. Poker pro players Brian Rast, Poker Hall of Famer Phil Ivey, NBA Hall of Famer Paul Pierce, Consensys Co-Founder Joe Lubin, crypto entrepreneurs Nick Rose from Ethernity and Elliotrades from Superfarm, and other influencers will be participating. In addition to the celebrities, Virtue Poker will also select three lucky community members, one each from Ethernity, Virtue Poker, and Superfarm, to compete at the table. The event will be a standard no-limit Texas Hold’em poker tournament, consisting of two rounds, with six players per table. Following the first round, three players from each table will move to the final round. The winner will determine the charitable organization that receives the proceeds from the event. Other than the charitable cause, Virtue Poker, in partnership with Superfarm, will also issue NFTs to each celebrity, which will be used as a ‘bounty’ during the tournament. Live-streamed on Twitch and the player’s private channels, this event also includes many awards and giveaways for viewers. By tuning in to the live stream and making real-time predictions, viewers can increase their eligibility for special prizes announced during the event. Consensys incubated Virtue Poker in 2016. Led by Ryan Gittleson, the decentralized poker platform has been part of several successful funding rounds. It is backed by some of the biggest names in venture capital and private investors, including Pantera Capital, Fenbushi Capital, JRR, and more. CEO Ryan Gittleson is confident about the upcoming tournament, commenting, Virtue Poker is excited to take this next step to drive awareness and adoption of the world’s first blockchain-based P2P poker platform. Through our execution of our Celebrity Poker Charity event, Virtue Poker will be able to grow our community’s foundation as well as showcase the platform to a broad audience. Does anyone really stand a chance again Phil Ivey? Let us know what you think in the comments section below. View the full article

Billionaire investor Carl Icahn, the founder of Icahn Enterprises, says that his company is exploring how to get involved in cryptocurrency “in a relatively big way,” which he said could be an investment of about $1.5 billion. Carl Icahn Exploring Getting Into Cryptocurrency Carl Icahn, the founder and controlling shareholder of Icahn Enterprises, a diversified conglomerate holding company based in New York City, revealed his cryptocurrency plan in an interview with Bloomberg on Wednesday. He said: I’m looking at the whole business and how I can get involved in it with Icahn Enterprises in a relatively big way because, I think, it’s here to stay in one form or another. Icahn is one of Wall Street’s most successful investors. In 1678, he formed Icahn & Co., a securities firm focusing on arbitrage and options trading. In 1978, he began taking substantial positions in individual companies, including RJR Nabisco, Texaco, Phillips Petroleum, Western Union, Gulf & Western, Viacom, Uniroyal, Dan River, Marvel, Revlon, Fairmont, Time Warner, Yahoo, Lions Gate, CIT, Motorola, Genzyme, Biogen, Chesapeake Energy, El Paso, Amylin Pharmaceuticals, Lawson Software, Medimmune, Dell, Netflix, Forest Laboratories, Apple, and Ebay. The billionaire investor was asked specifically what a “relatively big way” means for him and his company. He described: A big way for us would be a billion dollars, a billion and a half dollars, something like that. That would be sort of a big way, I guess, for us. But sometimes we go bigger than that, sometimes a lot smaller. Im not going to say exactly. Icahn further clarified: “To be clear, we have never bought any cryptocurrency, but we are studying it.” The billionaire noted that many cryptocurrencies out there are overvalued in his view. He opined: “Much of the cryptocurrency issued today will not survive, but we believe cryptocurrency in one form or another might be here to stay.” What do you think about Carl Icahn getting into cryptocurrency in “a relatively big way”? Let us know in the comments section below. View the full article

Denmark’s central bank governor Lars Rohde says that he can be tempted to ignore cryptocurrency, stating that it is not a threat to the central bank at present. However, he pointed out that the real threat could come from big technology companies “invading the currency area or the transaction means.” Denmark’s Central Bank Governor Tempted to Ignore Cryptocurrency Danish central bank governor Lars Rohde discussed cryptocurrencies on Bloomberg from Copenhagen on Wednesday. He was asked whether the central bank sees the rise in cryptocurrency trading as a serious economic threat. The governor was specifically asked if the central bank is taking the matter seriously or whether it largely continues to ignore cryptocurrency. Governor Rohde replied: I could be tempted to ignore it. I think the term currency is badly used here. Most currencies are stores of value or means of transactions. He added, “There is no stability and no guarantee from any side about the value of cryptocurrencies so it is a very speculative asset at best.” The governor was further asked whether he thinks that central banks in general will take action to try to reduce the rivalry from cryptocurrency. He affirmed: “At present, no I don’t think that is an issue.” Rohde proceeded to share what he believes is much more interesting. The governor opined: What’s more interesting is big tech invading the currency area or the transaction means. That could be very very interesting and maybe also a real threat to the autonomy and the independence of central banks. Rohde has long been a bitcoin skeptic. In December 2017, he warned people to stay away from bitcoin, stating that “It is deadly.” He noted at the time that cryptocurrency “is not a regulated market,” emphasizing that “It is not the responsibility of the authorities. It is the responsibility of the individual.” Rohde then told investors not to “come and complain to us if it goes wrong.” In addition, he said, “I see bitcoin as tulipmania, which is a bubble that is out of control.” What do you think about the central banker’s comments on cryptocurrency? Let us know in the comments section below. View the full article

A Zimbabwean fintech lawyer, Prosper Mwedzi, recently initiated a process that seeks to bring recognition and regulation of cryptocurrencies. Under this private member bill procedure, a legislative proposition initiated by private citizens will be debated in the Zimbabwean parliament. If the crypto regulation bill succeeds in garnering the required support, it will become part of the country’s national laws. Meanwhile, Mwedzi’s attempt to use the private bill to bring regulation to Zimbabwe’s crypto space comes more than two years after the Reserve Bank of Zimbabwe (RBZ) issued a public advisory against cryptocurrency trading. For an update on the private bill’s progress, Terence ZImwara of Bitcoin.com News recently reached out to Mwedzi. Below are Mwedzi’s responses to a set of questions that were sent to him. Bitcoin.com News (BCN): Can you start by telling us what prompted you to go the route of a Private Member’s Bill? Prosper Mwedzi (PM): We have been trying to get regulators thinking about the future of digital assets in our economy since 2018 but there has been no meaningful engagement or progress. Going down the Private Bill route is a sign of frustration about inaction by regulators as we feel that we have exhausted all the other available avenues. BCN: Can briefly tell us what this process is really about? PM: The bill is all about enabling innovators and entrepreneurs to operate in the market under oversight by the Reserve Bank. This has the ability to strike a balance between protecting the public and enabling innovation. The Zimbabwean constitution provides for citizens to be able to legislate in their area of interest by following the private bill procedure although this is not very common. BCN: What is the current status of the bill and what has been the reaction like? PM: Currently, we are trying to create awareness about the technology and form alliances with stakeholders to promote the bill to the public. The risk of taking the bill through the procedure when there are fewer people who understand the technology especially in Parliament is that it can get shot down on first reading and that would be disastrous. BCN: How do you rate the bill’s chances of success given the fact that something similar was attempted in the past but this ultimately failed? PM: We are hopeful that developments globally will help get Parliament thinking about its next steps for the benefit of the country. Currently, Zimbabwe is lagging in this space when compared to our neighbouring countries like South Africa where there is an impetus on policymakers and legislators to move fast to usher the nation into the digital age. This is a non-partisan matter and it shouldn’t be controversial. BCN: In your view, are Zimbabwean regulators now ready to embrace digital assets or they are still pursuing the wait and see approach? PM: It looks like they are taking the wait and see approach but I also think that the knowledge gap in this space is impacting meaningful action on the ground by regulators as they lack the expertise. BCN: Besides this initiative, what else are you doing to help the Zimbabwean crypto space grow? PM: We have been pushing mainly on the educational front to make people realise the benefits of this technology in our economic circumstances. We are encouraging young people to participate in this industry which is growing fast and is now worth over $2 trillion dollars. If anyone is interested in building products in this space we can help with sourcing funding from VCs. We are providing training services as well. BCN: What kind of impact has the Covid-19 related economy shut down had on the Zimbabwean crypto industry? PM: I think this has had a positive impact, people had more time at their hands and they have sought new skills and made an entry into crypto. Though it is difficult to measure quantitatively this is our view. BCN: What do you think are some of the obstacles that crypto enthusiasts still face? PM: Currently, Zimbabwe is excluded on many platforms and this makes it challenging for traders to access exchange services and also to fund accounts. I would say on-ramps to crypto is still a barrier as well as off-ramps though the latter is less of a problem as there are always buyers on the local market when someone wants to sell. I would also mention the lack of knowledge to get into crypto to start. We have been mentoring new adopters and highlighting the risks and opportunities in crypto. I would also say that regulation is the elephant in the room- the current ban on the banking sector from servicing crypto activities is a big and real obstacle. What are your thoughts on Mwedzi’s initiative? Tell us what you think in the comments section below. View the full article

According to data from Skew Analytics, more than 55,000 bitcoin options contracts worth $2.2 billion will expire on Friday. Statistics further show, as far as options are concerned, Deribit captures the lion’s share of contracts with 48,469 bitcoin options contracts ($1.95 billion notional) set to expire. 55K in Bitcoin Option Set to Expire, Deribit Carries $1.95 Billion Notional Another large options expiry is set to happen on May 28, 2021, following last week’s bitcoin (BTC) market sell-off. The analytics provider’s Twitter account from skew.com revealed on May 25, 2021, that over “55k bitcoin options expiring this Friday with $40k strike open in $130mln notional.” Skew data shows approximately 55,900 contracts ($2.2 billion) will expire around 4 a.m. (ET) on Friday. The options expiry follows the recent market carnage stemming from China, significant leverage, and environment FUD during the last two weeks. However, Skew Analytics said that bitcoin (BTC) markets absorbed “this week’s sell-off much better than during the COVID-19 panic on the 12th of March 2020 with BTC going Data from the derivatives exchange Deribit shows the lion’s share of bitcoin options contracts have been placed on the trading platform. In regard to BTC options, in terms of open interest, exchanges like Ledgerx, Okex, and CME follow Deribit’s lead respectively. At press time, BTC ‘max pain’ at $50k is 26.9% higher than bitcoin’s (BTC) current spot market price at 5:30 p.m. (ET) on Thursday evening. Insights from Deribit indicate the exchange has a “large expiry coming up tomorrow as 48,469 BTC option contracts (USD 1.95b notional) expire and 307,558 ETH options (USD 877m notional).” Deribit Insights notes that “‘max pain’ for BTC is USD 50k and ETH USD 3k.” Deribit has also launched a new August expiry and July futures will be launched on May 28, 2021. The derivatives exchange further notes that “Contango has returned with annualised yields up to 8.5% for BTC and 10% for ETH,” and “perpetual funding positive again as well.” The Deribit Implied Volatility Index (DVOL) “ decreased to (still elevated) level of 110-115.” At press time, ETH ‘max pain’ at $3k is 11.11% higher than ethereum’s (ETH) current spot market price at 5:30 p.m. (ET) on Thursday evening. Last Friday, Deribit’s Insights’ Twitter account tweeted about the 48 hours in ethereum (ETH) options. “19/5 Short gamma+vega positions forced closed in explosive spot volatility. Fast market pricing surged Implied vol >350%; Realized way higher,” the exchange noted at the time. “But on 20/5 while BTC Options were calm, ETH Option flows saw large Straddle buyers pre-empting a big move.” Five days later on May 26, Skew Analytics wrote that as far as ETH volatility is concerned “current market volatility is back on par with [the] 2017 cycle.” What do you think about the 55k worth of bitcoin options set to expire on Friday? Let us know what you think about this subject in the comments section below. View the full article

Like Bitcoin, DeFi’s ambition to build a fully decentralized global network is the fundamental source of its revolutionary characteristics – that of being trustless and enabling disintermediation. It is these two characteristics that build the core value of DeFi and determine its long-term market growth. It’s easy to see why this is so: On the one hand, the core model of any DeFi project must be zero-centric in order to carry unlimited trust, exhibiting the value of a decentralized network beyond the market value of one single product or a brand. On the other hand, a decentralized network must also be disintermediated, in order to compete with centralized products and retain its most critical competencies. A non-cooperative network is a naturally robust decentralized network model. Shield is building a decentralized non-cooperative game theory based, derivatives trading network consisting of traders, dual liquidity pools, liquidators and brokers. Shield Decentralized Network Based on Non-cooperative Game Theory Non-cooperative game theory was first proposed by John Forbes Nash in 1950, describing a multiplayer game system that is not limited to two people (i.e., a zero-sum game) and that is stable after achieving a “Nash equilibrium”. Before the birth of blockchain, most governance systems of human society, including banks, exchanges, internet majors, and social institutions were based on zero-sum games. Zero-sum game systems pinned their hopes on leaving organizational functions, or providing order to combat decay, to a few centralized parties. However, a governance system based on zero-sum games is an unstable structure that moves to the left or to the right as the power of the game parties changes, a structure that, right from day one, determines the convergence of power to the strongest side of the game leading to the collapse and reconstruction of order over and over again. The Shield protocol is such a non-cooperative game network, as shown in this graph: Shield’s decentralized network is maintained by four key constituents: broker, private pool LP, public pool LP and liquidator. The transmission is executed via the governance token – SLD. Broker (responsible for bringing in trades): Consists of 4 levels, where traders are introduced to the network via competition to earn commissions, with different commission rates for different levels. C and D levels will take out 10% and 20% of the commission rates respectively into the reward pool. Every 30 days, 60% and 40% of the reward pool will be divided equally between the A and B brokers, and the ranking will be reset based on the latest ranking. Private Pool LP (Order Seller): Featured one address for one private pool, with each private pool competing with each other to provide liquidity (competing to be an option seller) to earn funding fees and SLD rewards for order taking liquidity. Public pool LP (Backup pool): A unified large liquidity pool that earns liquidity mining rewards by competing to provide guaranteed liquidity. Liquidators (provide liquidation): compete to perform network liquidation tasks and earn liquidation rewards. Each aspect of the network has a clear interest incentive and sufficient competition mechanisms, so they all perform the needs of the network for their own benefit. Thus they reach the optimal Nash equilibrium of the whole network to maintain the decentralized security and stability of the network. Dive Into Tokenomics for long-term Value The key to a decentralized and stable network is to deliver sufficient and reasonable incentives to each of the players maintaining the network through the value vehicle of a token. Shield has designed the following mining incentives for the public pool LPs, private pool LPs and liquidators who maintain the network: Reserve liquidity mining: each block that provides liquidity to the public pool will be rewarded with a “liquidity share*32” in SLD. Order taking liquidity mining: liquidity from either from private pool or public pools will be rewarded with the SLD of ” order funding fee * 30%/0.05″ upon order taking. Liquidation mining: liquidators will receive the SLD liquidation compensation reward of “Liquidation with Ether system Gas fee*150%/0.05” (in case of insufficient system fund) as well as the liquidation contest SLD reward. The mining rewards will be halved for every 20% of the remaining mining share. Shield generates a buyback price by maintaining 10% of the total SLDs in circulation as always equal to 100% of the value of the buyback pool (derived from 90% of the transaction fees), while the SLDs mined are redeemed by swap&burn contract (as shown above). When the secondary market price of SLDs is higher than current swap price, then the value of Swap&Burn pool will keep going up, because no one will swap. When the secondary market price falls back below current swap price, anyone can buy SLDs on the secondary market to earn the difference from this Swap&Burn pool, thus ensuring a minimum price in the secondary market price (this minimum price is similar to the price in stock valuation through PE valuation). While the transaction fees on the left side Swap&Burn pool increases with the development of the business model, the right side of the SLD pool will deflate as burn and mining rewards halve. Therefore, the value of SLDs will continue to rise in the long run. Conclusion Shield is the first decentralized derivatives network with non-cooperative game theory. Each player who helps maintain the network is fully incentivized. And the redemption of the token is accomplished through an innovative Swap&Burn model. Under the logic of uncapped business growth, i.e. uncapped growth in the value of Swap&Burn and continued deflation of the passes used to redeem value as they are destroyed and mined by half, the value of Shield’s native token, SLD, has long-term value potential. This is a sponsored post. Learn how to reach our audience here. Read disclaimer below. View the full article

Graphics cards manufacturer Nvidia has earned $155 million in revenue from chips designed for cryptocurrency mining during the first fiscal quarter. The company admitted that crypto miners have also pushed sales up in the gaming products segment which remains its main market. Leading GPU Maker Reports Record High Video Card Sales Supported by Crypto Miners Announcing its first fiscal 2022 results, Nvidia revealed its total revenue rose 84% in Q1 that ended on May 2. The record high $5.66 billion figure, which exceeded preliminary expectations, comes from the company’s gaming, data center and professional visualization platforms. Surging demand for graphics processing units (GPUs) during the pandemic, along with the growth of AI applications have played a major role, but so have booming crypto markets. While $155 million of the total have been attributed to crypto-specific chips, Nvidia also admitted that cryptocurrency miners have boosted sales in its larger gaming card segment, Reuters reported, noting that the company did not disclose their share. Nvidia expects purchases of its CMP chips, made specifically for professional crypto mining, to reach $400 million in the second quarter. As cryptocurrency prices were reaching their all-time highs earlier this year, Nvidia launched the dedicated mining chips to divert miners’ demand from its most important product line. It also limited the mining efficiency of its regular graphics cards to protect supply for gamers. Nvidia CEO Jensen Huang was quoted by CNBC saying: What we hope is that the CMPs will satisfy the miners and will stay in the professional mines. On Wednesday, the company also said that its first-quarter gaming revenue reached $2.76 billion, an increase of 106% from a year ago, while data center revenue was up 79% to $2.05 billion. Nvidia Struggles to Determine Miners’ Contribution to ‘Larger Than Ever’ Gaming Market Despite the positive news, Nvidia shares lost 1% to $621.95, according to data provided by Reuters. The report implies that investors might have been put off by the surge in card purchases for crypto mining usually occurring when the value of cryptocurrencies rises. In the past days and weeks, however, crypto markets have been hit by a series of negative statements and moves by public figures and governments that have brought prices down across the board. To reduce the impact of the volatile crypto demand on investors’ sentiment and address complaints by gamers over shortages of the popular Geforce RTX 30-series cards, Nvidia has used software and technology to make its GPUs less suitable for crypto mining while offering the purpose-built CMP chips separately. “It effectively increases our production and supply,” said Jensen Huang, commenting on the changes. The chief executive also remarked that the gaming market is now larger than ever before and emphasized that the growth trend is going to continue. Although crypto miners have clearly influenced the financial results of Nvidia’s core business, even after the chips were tweaked, CFO Colette Kress has been quoted stating that the company still finds it “hard to determine to what extent” they have contributed to its gaming division. What do you think about Nvidia’s latest revenue data? Let us know in the comments section below. View the full article

On Wednesday the White House defended President Joe Biden’s trillion-dollar spending proposals despite the criticism concerning rising inflation and low-interest rates. Inflation has risen at unprecedented levels in the U.S. and the average American’s purchasing power is growing less powerful. Now critics like JPMorgan Chase CEO Jamie Dimon and American economist Larry Summers have blasted the Biden administration because they expect inflation to grow “considerably higher.” Americans Watch Purchasing Power Sink While Analysts Suspect Even More Inflation on the Horizon Inflation has been a worry for American citizens ever since the U.S. government and Federal Reserve decided to increase the M1 monetary supply like never before in history. Essentially, inflation is the rise in price for goods and services, and the nation’s currency ends up buying fewer goods and services. Reports show that nearly everything is rising in value, and the U.S. dollar can purchase far less than it could before. Car prices are expected to go through the roof this year, food prices have grown astronomical and pork prices touched a seven-year high. The USDA expects the price of food to rise from 2.5% to 3.5% for the year. It’s quite blatant that the central bank and politician’s often quoted “2% inflation rate” is a myth, as 2021 statistics show prices of goods and services in the U.S. have surged. Despite some disapproval and inflation concerns, the Biden administration has been defending its proposed $2.3 trillion American Jobs Plan and the $1.8 trillion American Families Plan. Morningstar.com increased its 2021 inflation forecast for the Personal Consumption Expenditures Price Index on Wednesday. “We expect 2021 core inflation of 2.5%,” the prediction notes. “For 2022-25, our forecast is essentially unchanged; we expect moderate core inflation averaging 2.3%, just above the Federal Reserve’s 2% long-run target,” the Morningstar.com inflation report adds. Meanwhile, on May 26, financial executives and economists have criticized the Biden administration for seeking even more money from the Federal Reserve. “You’re talking about unprecedented continued fiscal and monetary policy, kind of on autopilot,” JPMorgan Chase CEO Jamie Dimon explained at Wednesday’s Senate hearing. “[There is] nothing wrong with 1.6%,” Dimon added. “I would expect it to go considerably higher than that. Hopefully, it won’t be out of whack and the Federal Reserve will be able to tamp it down. But we always plan for things worse than that.”JPMorgan Chase CEO Jamie Dimon spoke about inflation when he testified before the Senate Banking Committee held on May 25. While a great number of financial institutions and Wall Street CEOs argued against “woke capitalism” and “climate change” that day, Dimon spoke about inflation. The JPMorgan Chase CEO, who manages the largest financial institution by assets held, said the government’s stimulus could get carried away. “If that money is wasted, it is not productively spent, we will have more inflation, less productivity, slower growth and the American democracy you will have lost even more credibility [in the] eyes of the world,” Dimon Stressed. Despite Jamie Dimon’s commentary, the White House principal deputy press secretary, Karine Jean-Pierre, emphasized to the press that the “President’s plans are working.” “This is a president who understands about making sure that we’re not wasteful,” she added. “He made sure there was no corruption and no waste. And so he understands how this all works.” Larry Summers: ‘Fed’s Will Only Remove the Punchbowl After It Sees Some People Staggering Around Drunk’ Not everyone agrees with Karine Jean-Pierre and the Biden administration. At the Coindesk 2021 Consensus conference the former Clinton and Obama official, Larry Summers discussed runaway inflation and monetary easing policies as well. “I think [the] policy is rather overdoing it,” Summers said on Wednesday. “The sense of serenity and complacency being projected by the economic policymakers, that this is all something that can easily be managed, is misplaced.” The former Vice President of Development Economics and Chief Economist of the World Bank, former Clinton administration Treasury Department official, former director of the National Economic Council for the Obama administration, Larry Summers, has warned the Biden team of rising inflation. As far as the inflation forecast, Summers said there is “enormous uncertainty” at the Consensus conference this week. “Joe Biden has a historic opportunity to be a great president,” Summers further remarked. “But I think they should learn the lesson of the Johnson administration’s errors that elected Richard Nixon and the Carter administration’s errors that elected Ronald Reagan.” Summers statements concluded when he said: The Fed’s idea used to be that it removed the punchbowl before the party got good. Now, the Fed’s doctrine is that it will only remove the punchbowl after it sees some people staggering around drunk. We are printing money, we are creating government bonds, we are borrowing on unprecedented scales. Those are things that surely create more of a risk of a sharp dollar decline than we had before. And sharp dollar declines are much more likely to translate themselves into inflation than they were historically. Despite Clear Data and Criticism, White House Disagrees America Will See ‘Long-Term Inflation’ and It’s the Fed’s Job ‘First and Foremost’ In recent times as inflation has gripped the American economy, the U.S. dollar index (DXY) plummeted below 90 again growing weaker. Seven days ago the U.S. dollar dropped to a three-year low and economists think the dollar could dip 10% lower. Even though there is lots of data and statistics showing the dollar is weaker and inflation is dislocating the economy, the White House wholeheartedly disagrees. In response to Larry Summers’ recent critique of Biden economics, a White House official responded and told CNN it does “not see signs of persistent dislocation or long-term inflation.” The official noted that it does monitor the inflation rates but it’s more in the hands of the U.S. central bank. “Our team closely monitors inflationary pressures but inflation is first and foremost under the purview of the Federal Reserve,” the White House official concluded. What do you think about Biden’s economic plan and fears of runaway inflation gripping the American economy? Let us know what you think about this subject in the comments section below. View the full article

Iranian President Hassan Rouhani has announced that cryptocurrency mining is banned in Iran, effective immediately. The ban, which will last until Sept. 22, is imposed as many cities in the country are facing major power blackouts. Iran has banned cryptocurrency mining effective immediately, President Hassan Rouhani said on Wednesday in a televised speech at a cabinet meeting. He was quoted by the media as saying: The ban on the mining of cryptocurrencies is effective immediately until September 22. Many cities in Iran are facing major power blackouts and the government has blamed power cuts on cryptocurrency mining, drought, and rising demand for electricity in summer. Bitcoin News recently reported that Iran will shut down licensed crypto miners in peak hours of power consumption. Blockchain analytics firm Elliptic estimates that around 4.5% of all bitcoin mining takes place in Iran. The firm said income from mining has allowed “the country to circumvent trade embargoes and earn hundreds of millions of dollars in cryptoassets that can be used to purchase imports and bypass sanctions.” Iran requires licensed crypto miners to sell their bitcoins to the central bank directly. Cryptocurrencies mined legally in the country can be used to pay for imports of authorized goods. In April, Iran authorized banks and currency exchanges to use cryptocurrencies to pay for imports. Government officials say that a majority of the energy consumption from bitcoin mining comes from illegal miners operating without licenses. In January, Iranian police confiscated 45,000 bitcoin mining machines that were illegally using subsidized electricity. President Hassan Rouhani said Wednesday: Some 85% of the current mining in Iran is unlicensed. What do you think about Iran banning cryptocurrency mining in the summer? Let us know in the comments section below. View the full article

During the course of the week, the cryptocurrency community has been focused on China and the country’s Financial Stability Board detailing that it aims to crack down on the bitcoin mining sector. Following the statements from Chinese officials and a few crypto businesses abandoning services in the region, executives from some of China’s largest bitcoin mining companies have openly discussed the situation. Btc.top’s CEO: ‘If China Takes Regulatory Actions Against Crypto Mining, Then Major Chinese Manufacturers Will Sell Abroad The million-dollar question right now is whether or not the Chinese government will continue to crack down on the crypto industry. It all started when Reuters published a report on May 18, that said: “China bans financial, payment institutions from cryptocurrency business.” Essentially the news publication said that “three financial industry associations” from China told financial institutions and payment processors “not to offer any crypto-related services.” Services include “account openings, registration, trading, clearing, settlement, and insurance, reiterating the 2017 ban,” Reuters further noted in a follow-up explainer the next day. Then five days ago, regional reports detailed China’s 51st meeting of the Central Financial and Economic Affairs Commission, and the organization’s director, Liu He, discussed the bitcoin mining sector. Again, the Economic Affairs Commission and Financial Stability Board said it would crackdown on illegal bitcoin mining and monitor the sector. Following the economic affairs meeting and statements from Liu He, Btc.top’s CEO Jiang Zhuoer spoke about the situation. “According to the minutes of ‘China Financial Stability Board:’ We resolutely prevent and control financial risk…. we shall crack down Bitcoin mining and crypto trading activities in order to prevent individual risks from being spread to the social level,” Zhuoer said. “From there, we can see that the main spirit of the meeting is to ‘prevent and control financial risks,’ to restrain social capital from flowing into the crypto mining sector which might lead to risks transferring from individuals to the whole society,” Zhuoer continued. “In other words, individual mining is and has always been allowed as long as you’re responsible for your own risks and profits, whilst the mining operated by financial capital might be [forbidden].” Zhuoer also compared the minutes this year to what was said during the minutes’ definition declared back in 2013, which was repeated Zhuoer added. The Btc.top CEO spoke about September 4, 2017, that day the world watched China ban initial coin offerings (ICOs) and then the shut down of domestic crypto exchanges. As far as China’s bitcoin miners, Zhuoer says the guidelines may invoke some losses but it may not be as bad as most think. “Large [datacenters] and major veteran miners may suffer a significant loss this time, while the whole Bitcoin network will be as resilient as always,” Zhuoer stressed. “The worst scenario would be: large datacenters are shut down and we go back to old days in 2014-15. Small miners install several miners at home; Medium miners set dozens of miners in a warehouse or a few hundred miners in a factory; Veteran miners find a small remote hydroelectric power plant and locate there a couple thousand miners.” The Btc.top executive added: In conclusion, bitcoin mining will exist as normal, except the mining in China will be shifted from industrial-size datacenters to home miners, small or medium-sized miners. The entire Bitcoin network will always be strong even [if] its hashrate [declines] by 50%. Executives from Ebang, Canaan, and Innosilicon Discuss Alternative Strategies and International Locations In addition to Btc.top’s CEO, executives from a number of other Chinese mining firms and rig manufacturers spoke about the reported crackdowns. Reuters reported on May 26, that Chinese ASIC manufacturers “are now looking elsewhere for growth.” Alex Ao, vice president of Innosilicon Technology explained that “foreign miners will benefit.” “Places like North America and Central Asia have advantages in terms of power supply and policy support,” Ao detailed. In another statement, Hangzhou-based Ebang International remarked that “domestic customers will go overseas to mine.” “Mining machines will still be in short supply,” the Ebang spokesperson added. Edward Lu, senior vice president of Canaan Inc, added his opinion about the situation in China. “The strategy should be to strenuously develop markets such as Kazakhstan, Canada, and North Europe, where energy resources are abundant and cheap, while regulations are clear and predictable,” Lu said. Meanwhile, the Shenzhen-based firm Bit Mining announced plans this week that it will construct a 100 MW bitcoin mining data center in Kazakhstan. Formerly known as 500.com, Bit Mining owns Btc.com and the mining rig manufacturer Bee Computing. Similar to Bit Mining both Btc.com and Bee Computing are based in China and may face harsher regulations. The Sichuan Energy Regulatory Office also revealed this week that it will gather on June 2 to discuss bitcoin mining. The meeting is required by China’s National Energy Administration, according to a regional report. What do you think about the comments from Chinese mining rig manufacturers and mining farm operators? Let us know what you think about this subject in the comments section below. View the full article

PRESS RELEASE. Bitcoin.com Exchange is thrilled to announce the listing of GHX, being available to trade on the 27th May 2021 at 10:00AM UTC. GHX (GamerCoin) was created by the GamerHash team, as an incentive for the miners within the app and as a reward for carrying out the tasks on the Play&Earn module. GHX will start trading with BTC as a pair. What is GamerHash? GamerHash is an ecosystem where gamers can use their computing power to earn Bitcoin. That is the basic functionality of the platform, created in 2017, that has brought together over half a million gamers to this day. One of the moot points behind the recent GHX token growth is the already working platform supporting over 600,000 registered users. The big number of users (mostly gamers) corresponds with the ease of crypto mining on the platform – you can earn BTC while playing games or watching Netflix. At the same time, you receive GamerCoin as a 20% bonus on top of the BTC you mine. Lower-end PC owners with computers not suitable for mining can join Play&Earn where they can still enjoy crypto rewards when completing simple tasks such as playing games or registering on a GamerHash partners platform. In a nutshell, GamerHash is a self-financing supercomputer – built in a decentralized manner with the help of gamers. Most recently, GamerHash partnered with Exeedme and became a Silver Partner to Blockchain Game Alliance – one of the most influential Crypto & Gaming associations, where among its members, there is; Sandbox, Enjin, ANRKeyX, Simplex and other top NFT projects. This all boils down to a significant preparation period for future partnerships on top of ones that GamerHash already has with Chainlink and æternity. The platform is already successful, by means of its abundance of users, but the company CMO Artur Pszczółkowski wants to go deeper and become an “Amazon of NFTs” – the team would like to convince its users to partially spend what they’ve ‘mined’ to purchase their first NFTs. More importantly, the cooperation between Chainlink and GamerHash seems to give new possibilities such as utilizing match outcomes to mint rare NFTs, which can then trade on the GamerHash Marketplace. As previously mentioned, GamerHash would like to allow gamers to trade in the P2P way of their gaming NFTs in a safe environment. What is GamerCoin (GHX)? According to Wikipedia, Metcalfe’s law states that the value of a network is proportional to the square of the number of connected users of the system (n2). Therefore, the high price rise of GamerCoin is not a surprise (with over 600,000 users). The native $GHX ERC-20 token is used as an incentive for the miners within the app, and a reward for carrying out the tasks on the Play&Earn module. Future use cases will consist of getting access to special events within the ecosystem, as well as creating a P2P NFTs marketplace as part of expanding the GamerHash Store (~600 products). Another strong point about GamerHash and its GHX token is legal compliance. The team managed to have the GamerCoin whitepaper registered by the Maltese financial authorities (MFSA). It’s the first project in the European Union to launch a token within this new regulatory framework of Malta’s MFSA. Strong Endorsement Danish Chaudhry, CEO of Bitcoin.com Exchange, shared his views on GamerHash, and their respective token GHX: “From the beginning of the crypto industry, the gaming community has always been an integral part of the mining process, and the team at GamerHash have found a great way to target this group of individuals, and incentivise them for their hardware, and for their hobby, or work in some cases.” Chaudhry continues on by saying; “We’re very excited to see how GamerHash will continue to empower their vision for the future of wide-scale mining via gamers, and gain further outreach with our outstanding community at the exchange.” Artur Pszczolkowski, CMO of GamerHash expressed his enthusiasm towards the listing, stating that: “The Bitcoin.com Exchange is an important and well-respected part of the crypto ecosystem around the world. It is a great opportunity for the GH community to expand their trading area. We are delighted to be working hand in hand with such a good project. I hope it’s just the beginning of greater cooperation between us in the future”. About Bitcoin.com Exchange The mission of Bitcoin.com Exchange is to empower people from all over the world to trade cryptocurrencies with ease and confidence, from first-time traders to advanced trading professionals. With high liquidity, 24/7 multilingual support and dozens of trading pairs, complemented with a high level of security, it offers an attractive platform for trading any cryptocurrency. Within one year since launch, on average, the exchange has been visited by more than 500K active traders per month, and this number continues to grow as you read this sentence. About GamerHash GamerHash is an ecosystem with a native token GamerCoin (GHX) that is used by more than 600 000 gamers. Users exchange their idle computing power and complete Play&Earn tasks to earn Bitcoin. It can be withdrawn or exchanged for +600 digital products in the GamerHash Store. GamerCoin $GHX token is listed on top cryptocurrency exchanges such as Bithumb and KuCoin. At the same, it’s the first (EU) licensed gaming token. The project is planning to launch its own NFT marketplace focused on gaming and esport as well as reach 1.5 million users by the end of 2021. This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

Payments giant Paypal will soon allow its users to transfer cryptocurrencies away from its platform to third-party wallets, the company’s head of cryptocurrency reportedly revealed. Paypal has been seeing tremendous growth in its crypto business. Paypal to Support Crypto Transfers to Third-Party Wallets Jose Fernandez da Ponte, Paypal’s head of cryptocurrency, said during the Consensus 2021 conference Wednesday that his company will soon start allowing cryptocurrency withdrawals to third-party wallets. He explained: We want to make it as open as possible and we want to give choice to our consumers … They want to bring their crypto to us so they can use it in commerce, and we want them to be able to take the crypto they have bought with us and take it to the destination of their choice. The change will allow Paypal users to transfer their cryptocurrencies away from the platform to third-party wallets. Currently, Paypal’s terms and conditions for its crypto service state that “You currently are not able to send crypto assets to family or friends, or withdraw crypto assets from your Cryptocurrencies Hub to an external cryptocurrency wallet. You also cannot use crypto assets directly as currency to pay for goods or services. If you want to withdraw the value from your Cryptocurrencies Hub you will need to sell your crypto assets and withdraw the cash proceeds from their sale or use those cash proceeds to pay for purchases.” The head of cryptocurrency reportedly said that the changes will also apply to Venmo users but did not specify when users will be able to start transferring their cryptocurrencies out of Paypal. The platform currently supports bitcoin, ethereum, litecoin, and bitcoin cash. Earlier this month, CEO Dan Schulman said that the Paypal crypto business showed “really great results” as the company reported the best quarter ever. In April, he said that demand for cryptocurrencies was multiple-fold of Paypal’s initial expectations. During the first quarter, the payments giant rolled out the “checkout with crypto” feature, allowing users to pay with cryptocurrencies at millions of stores. It also launched the crypto service on Venmo, allowing the app users to buy, sell, and hold cryptocurrencies. What do you think about Paypal allowing users to transfer their cryptocurrencies off of its platform? Let us know in the comments section below. View the full article

Chia, a cryptocurrency project created in 2018 that uses storage for its consensus, is eyeing a public offering this year, according to statements from its COO, Gene Hoffman. The company just received an influx of investments that are pointing it to become the next ‘green bitcoin substitute,’ due to its relatively low energy consumption compared to other proof-of-work (PoW) alternatives. Chia Aims to Launch an IPO This Year Chia, a cryptocurrency that was founded two years ago but launched its mainnet recently, is striving to launch an initial public offering (IPO) as soon as this year, as statements from the company backing it show. Chia Network Inc, which was founded by the Bittorrent creator, Bram Cohen, just recently received a funding round of more than $60 million, which gave the cryptocurrency a valuation of $500 million. The companies which led the funding round were Richmond Global Ventures and the known Andreessen Horowitz, but other companies were also involved. Breyer Capital, Slow Ventures, True Ventures, Cygni Capital, Naval Ravikant, Collab+Currency, and DHVC also participated. Gene Hoffman, COO of the company, informed the public that these resources will be used to keep hiring manpower and fuel the promotion of the cryptocurrency as an alternative to other important coins in the space, like bitcoin. Hoffman stated: Our goal has always been to go public relatively quickly as that will significantly clarify our regulatory environment and allow customers to use currency to hedge public market volatility, which is different from other coins. The latest round of investments has made them confident about what they might achieve with an IPO. The recent environmental concern narrative that is now seeking greener alternatives to bitcoin’s PoW might help them in the process. Is Chia’s Use of Hardrives and SSDs Really Green? But, what is really Chia, and how does it compare to the Bitcoin network? Chia is a cryptocurrency that uses hard drive space, as the pivotal element of its consensus algorithm. Chia miners use this space to plot cryptographic answers that will be challenged by the network. If a block challenge has the same content that a plot in a miner hard drive, then the miner wins the reward. This is known as “Proof-of-Time-and-Space.” Compared to the Bitcoin network, this approach is greener than PoW consensus, because common hard drives and computers spend less energy than ASIC miners to confirm transactions. However, Chia still has its not-so-green side. There have been reports that show hard disks used by Chia miners often malfunction faster than drives used normally, due to the intensive use that they experience. This creates more electronic waste that needs to be recycled or dumped, also having an impact on the environment. Be this as it may, Chia proponents believe the asset has a real shot at becoming one of the most important cryptocurrencies in the future. Bram Cohen and Bittorent’s success has helped bolster optimism toward Chia. What do you think of Chia going public possibly this year? tell us in the comments section below. View the full article

Recent announcements and actions by Elon Musk surrounding bitcoin mining sustainability raise questions about the reasoning and motivations of Tesla’s Technoking. Is it possible that Musk is playing a calculated marketing game to introduce a Tesla mining solution? The World of Bitcoin Mining According to Musk Once upon a time, for 49 days, the world was able to purchase Teslas with bitcoin. Then, on May 12, Elon Musk posted the now-infamous tweet saying that Tesla “suspends” vehicle purchasing using bitcoin due to the increasing use of fossil fuels for bitcoin mining and transactions. It was a curious announcement. Was Musk not aware of the bitcoin mining footprint in March when announcing that Tesla would begin accepting bitcoin? Or when he bought $1.5 billion worth of the cryptocurrency? Another question that must be addressed – how many Teslas were actually purchased with bitcoin during those glorious 49 days? No data is available from Tesla on this, but one can speculate that not a single Tesla was paid for with bitcoin. This makes Musk’s announcement even more curious. What propelled him to reverse his earlier decision of accepting bitcoin? To add confusion and avoid scrutiny for bitcoin’s free fall in the days after, Musk assured the market on May 17 that Tesla “has not sold any bitcoin”. To clarify speculation, Tesla has not sold any Bitcoin — Elon Musk (@elonmusk) May 17, 2021 But the green genie was out of the bottle. Bitcoin mining became the conversation that framed the dip. For more than a week Musk just sat aside and let the discussion ramble on while bitcoin lost $250 billion in market value. Then, on May 20 Musk had an epiphany; all of sudden he came up with a solution for the reputation crisis he himself created for bitcoin: miners would “just post audited numbers of renewable energy vs not.” I agree that this *can* be done over time, but recent extreme energy usage growth could not possibly have been done so fast with renewables. This question is easily resolved if the top 10 hashing orgs just post audited numbers of renewable energy vs not. — Elon Musk (@elonmusk) May 20, 2021 From there, things moved surprisingly quickly. It took only three days to arrange a “secret meeting” of Musk and Michael Saylor of Microstrategy with top North American miners. In the meeting, Musk convinced the miners not only to publish their energy reports but also to form a Bitcoin Mining Council, which drew raves and criticism alike. Tesla to Mine Greener Bitcoin The question remains – what is Musk’s end game here? Musk is calculated enough to assume that this whole affair isn’t coincidental. Two things we can assert about Musk. First, he truly believes in the importance of green, renewable energy for the future of the planet; hence spearheading the electric car and solar panel markets. He even has an exit strategy if our collective effort to green-ify our planet fails – relocate to Mars. So it can be assumed, with a high degree of certainty, that Musk initiated a campaign in order to “clean” bitcoin mining. He has enough leverage, power, and influence to drive a real change in how bitcoin and other cryptocurrencies are mined. The second thing about Musk is that he is a builder. All his current operations are churning out tangible products, whether cars, rockets, or wall batteries; he knows his way around hardware. So if we attempt to put all the pieces of the last two weeks together, wouldn’t it be reasonable to assume that Musk is actually planning to introduce a Tesla mining solution? He has the knowledge and resources, and now after single-handedly creating a crisis-need in the crypto market for a sustainable solution for mining, coming up with one will position him as the savior. The conversation about the bitcoin energy problem won’t disappear. It will need to be resolved. Is there anyone more suitable and capable than Musk himself to resolve it? Probably not, and Musk knows it. Will Musk get into bitcoin mining? Will Tesla offer a “clean” mining solution? Let us know what you think in the comments section below. View the full article

Chinese traders still exert a major influence in the cryptocurrency market, even with all the distinct issues they must now face to operate. This is the opinion of several experts in the field that have weighed in on how the recent prohibitions and ban proposals from China are really affecting how Chinese bagholders that conduct their business in Asian and worldwide exchanges. Chinese Traders Still Big in the Market Chinese traders still have a big influence on how crypto markets move even with all of the difficulties they have to operate, according to different experts with knowledge about how Asian markets work. Even sidestepping all of the government regulations, these traders are still managing to do business, taking advantage of gray markets and other services that let them exchange the local currency for crypto. News of China invoking strict warnings toward cryptocurrency trading and initial coin offerings (ICOs) are not new: China has warned against these activities since 2017 when it outlawed domestic cryptocurrency exchanges. This has now seemingly extended to the field of cryptocurrency mining, with Chinese Vice Premier Liu He stating the country should “crackdown on bitcoin mining and trading behavior,” a statement that created some of the conditions for a big dump in the market last week. However, according to Matthew Graham, CEO of Sino Global Capital, a local blockchain firm, Chinese traders are still really powerful in the market even now. Graham stated: The waning influence of Chinese bitcoin traders is an exaggerated story. The fact is that Chinese traders still wield enormous influence. Bobby Lee, the founder of BTCC, one of the first Chinese cryptocurrency exchanges, also agreed with this opinion. Lee stressed: I think there is more Chinese traders now. Bitcoin has gained an order of magnitude in price How Is This Happening? After initiating harsh regulations toward most cryptocurrency-related services, an offshore gray market appeared to satisfy the demand for these assets. There are now services that allow for Chinese citizens to change their local currency, the yuan, to stablecoins such as USDT. Having USDT, traders now have the possibility of moving their business to offshore exchanges that allow for crypto to crypto trading. In this way, the renminbi is almost unused in cryptocurrency purchases, at least officially. Bobby Lee agrees with this, stating: “They no longer have to deal with RMB transfers, it is moving to a USDT payments society and moving into and out of bitcoin. It’s becoming an underground currency.” Lee makes emphasis in regard to the importance that USDT has for Chinese traders as a means for achieving trading in international exchanges. What do you think about the influence of Chinese traders in the cryptocurrency market? tell us in the comments section below. View the full article

The South African Reserve Bank (SARB) says it has commenced a feasibility study for a general-purpose retail central bank digital currency (CBDC). The study, which the SARB expects to conclude in 2022, will focus on the issuance of a domestic CBDC that can be used by consumers in South Africa for general retail purposes. Study to Focus on Retail CBDC In a statement released on May 25, 2021, the central bank says the feasibility study will include practical experimentation across different emerging technology platforms. The study will take into account a variety of factors, including policy, regulatory, security, and risk management implications. Still, the statement clarifies that this latest study will be distinct from the previous one. The statement explains: It should be noted that while the CBDC feasibility study is different from Project Khokha, which focuses on the settlement of high-value transactions between commercial banks and other stakeholders at the wholesale level, it is expected that the two studies will result in better policy alignment and coordination. However, the SARB has downplayed the possibility of it launching digital currency in the near future. It said it has “made no decision to issue a retail CBDC.” CBDCs and the SARB’s Mandate In 2017, the SARB created a simulation (Project Khokha) to assess if the performance, scale, and confidentiality of payments were possible utilizing the Ethereum blockchain technology. This simulation reportedly “exceeded the transaction performance target at 70,000 transactions in less than two hours.” Additionally, the simulation achieved a “95% block propagation time in less than 1 second and 99% propagation in less than 2 seconds.” The results demonstrated that “acceptable performance is achievable, despite the geographical distribution of the banks’ hardware.” Concerning its latest feasibility study, SARB says this will also consider how the issuance of a general-purpose CBDC will feed into the central bank’s policy position and mandate. What are your thoughts on the SARB’s latest feasibility study into CBDCs? You can share your views in the comments section below. View the full article

A new law draft approved just today by the Finance Commission of the Spanish Congress would make Spain-based custody services report the ownership of the cryptocurrencies under management. The law, which was stuck in Congress for some time, aims to close a gap in the legislation that allowed some users to bypass the requirements and avoid paying taxes in the process. Spain Based Custody Services Would Have to Report Ownership of Assets Third-Party custodial services based in Spain would have to report the holdings of its customers, as well as all the operations made with them, according to a new law draft approved on Wednesday by the Finance Commission of the Spanish Congress. The law, titled “Prevention and fight against tax fraud,” would make mandatory the report of any cryptocurrency funds in these institutions, and also includes individuals or institutions related to initial coin offerings in the mix. Until now, these institutions didn’t have to report any of their activities to the tax authorities, and the responsibility of doing this went to the actual owners of cryptocurrency. The current law makes it mandatory for users to report holdings of more than 50,000 euros in cryptocurrency, as well as all of the earnings coming from the trading of these. Also, the law includes cryptocurrency exchanges in this area, so all Spain-based cryptocurrency exchanges would have to also report the identity of their customers and the operations of each one of them to the tax authorities. The law draft, which was approved with 21 votes for it and 14 against it, now will go to the Senate to be approved or tossed. But the changes don’t only go to regulate cryptocurrencies. The tax authority also is establishing new limits on the amount that Spain residents can obtain as payments in cash, lowering it to 1,000 euros for entrepreneurs and professionals, and to 2,500 euros for others. Tough Stance on Crypto This is another new rule that comes to compliment the already tough stance that the Spanish governments and its lawmakers have applied for cryptocurrency-related matters. Earlier this month, the Spanish government also signed a royal decree that mandated exchanges and crypto custody firms to establish a report of all of their cryptocurrency transactions to share its data with the European Union bloc of countries. This decree also includes making reports of any “suspicious” transactions to the authorities. What do you think about the law draft approved in Spain? Tell us in the comments section below. View the full article

Famed American entrepreneur and investor Mark Cuban has divulged a strategic investment in Polygon, highlighting his own use and embrace of the protocol’s multi-chain approach to Ethereum. Investment Accompanies Release of the Polygon SDK As major names line up behind Ethereum, notably Goldman Sachs, which presented a thesis highlighting the network’s potential to overtake Bitcoin in terms of crypto dominance, Mark Cuban is among the latest high-profile figures to throw his support behind the network via an investment in Polygon. Polygon, formerly known as Matic, aims to help tackle the scaling constraints that have plagued Ethereum by delivering the interoperability needed to construct and connect Ethereum-compatible chains. The layer 2 scaling solution pioneered by the company will effectively benefit from Ethereum’s core features while building upon the network’s existing capacity. For projects like decentralized finance (defi) that want to avoid the throughput bottlenecks and high fees that currently impact the Ethereum mainnet, this new solution is designed to overcome these obstacles. Cuban withheld the terms and size of his investment in Polygon but did note, “I was a Polygon user and find myself using it more and more.” Already, he plans to integrate Polygon into Lazy.com, another blockchain business in his portfolio, to help users seamlessly display NFTs. This investment dovetails important advances for Polygon, namely the rollout of the Polygon SDK. The SDK will empower developers to build customized standalone chains that will be compatible with Ethereum with its growing set of modules. Besides helping deliver on its promise to cultivate a multi-chain ecosystem, Polygon’s high throughput and PoS consensus model support “zero-gas” transactions and near-instant confirmations. Future iterations of the Polygon SDK, set for eventual implementation, will support more layer 2 platforms, including Rollups and Plasma, each of which will also promote greater scalability and throughput over time. Are the billionaires lining up behind their favorite blockchains – Musk vs Cuban? Let us know what you think in the comments section below. View the full article

The chief investment officer of Guggenheim, Scott Minerd, has predicted more sell-off for bitcoin. He also warned that it will take a while for the cryptocurrency to return to its previous highs. However, in the long term, Minerd has predicted that bitcoin’s price could rise to $600K. Bitcoin Sell-Off to Continue, Minerd Says The chief investment officer (CIO) of Guggenheim Partners, Scott Minerd, has made another bearish prediction for bitcoin’s price in the short term. Minerd is also the chairman of Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners. Guggenheim Investments has about $270 billion in total assets under management across fixed income, equity, and alternative strategies. He told CNBC on Tuesday that bitcoin has not hit its bottom just yet, emphasizing: You can afford to be patient here. There’s more to go. He explained that bitcoin had gone “exponential” and it will take some time for the cryptocurrency to return to its previous highs. He believes that an obstacle to bitcoin will be that some investors are now moving capital away from BTC into competing cryptocurrencies. Furthermore, “Any market that goes exponential is automatically unsustainable. I just looked at it and realized that given the size of the move, which was essentially a mania or a bubble, that traditionally you get 50% to 75%, declines coming out of the top of the bubble,” the CIO opined. Minerd has been predicting a decline in the price of bitcoin for months. In April, he warned of a major correction in the cryptocurrency that could send its price down 50% to the $20K-$30K level. He said the BTC price at the time looked “very frothy.” Soon after his prediction, bitcoin’s price fell to the $30K level. In the long term, however, the CIO has predicted that the price of bitcoin could reach $600K. “If you consider the supply of bitcoin relative, let’s say, to the supply of gold in the world … You’ll be talking about $400K to $600K per bitcoin,” he said in February. “That’s an indication of what might be a fair value. That gives you a lot of room to run.” He ultimately sees bitcoin and ether as “winners” in the cryptocurrency market. What do you think about Guggenheim CIO Scott Minerd’s bitcoin prediction? Let us know in the comments section below. View the full article