Category: Bitcoin

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Australia Bitcoin Independent Reserve Investing Surveys

Bitcoin Dominates Brand Awareness as Voted by Aussies

Bitcoin (BTC) is far and away the most well known cryptocurrency, with over 90 percent of Australians having heard of the OG crypto, according to a 2022 survey by Australian cryptocurrency exchange Independent Reserve.

The Independent Reserve Cryptocurrency Index (IRCI) is an annual cross-sectional survey of the attitudes of 2,000 Australians towards cryptocurrency and is designed to reflect the age, gender and demographics of the broader Australian population.

Aussies Consider Bitcoin an Investment

This year’s IRCI found that more Aussies than ever before consider Bitcoin an investment asset, at just under 30 percent. This rise coincides with a downward trend since 2019 in the number of people who consider Bitcoin a form of money, a scam, or had simply not thought about it enough to answer.

The survey also found that plenty of Aussies knew about crypto other than Bitcoin, with 42.9 percent having heard of Ethereum, 35.8 percent aware of Dogecoin, and 15.1 percent familiar with XRP.

Bitcoin and Ethereum are the most well-known cryptocurrencies in Australia. Image source: Independent Reserve

Short-Term Sentiment Falls

While awareness of crypto is high, sentiment has fallen compared to last year’s survey, with Independent Reserve’s overall index dropping from 54 to 45. According to Independent Reserve, a score of 100 would “indicate complete awareness, optimism, trust and adoption” while 0 would indicate the opposite.

Independent Reserve said a more negative sentiment in 2022 reflected lower crypto ownership rates and a fall in short term confidence in crypto. Despite this drop in sentiment since 2021, overall ownership rates remain up in 2020. 

The steepest drop in crypto ownership occurred in the 18-24 age group where it dropped from 56 percent in 2021 to just 33.3 percent this year. In other age groups, ownership rates actually held steady or grew.

Long Confidence Remains Strong

Despite the drop in short-term sentiment, the survey found Aussie’s longer term confidence in crypto remains strong:

  • Only eight percent of respondents said they plan to get out of crypto entirely;
  • 44 percent said they plan to increase or diversify their crypto holdings;
  • 45 percent said they would hold.

When asked what they thought Bitcoin’s price would be in 2030, the most popular response from both crypto owners and non-owners was between $30,000 and $100,000, indicating many believe Bitcoin’s value will grow considerably from where it sits today.

The prospect of crypto eventually being widely accepted by people and businesses was highly correlated with age, with all age groups under 44 strongly believing it was likely. People aged between 45 and 54 years old were fairly evenly split between likely and unlikely, while those over 54 considered it unlikely.

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Bitcoin Crypto News Economics

El Salvador to Start Purchasing 1 Bitcoin a Day

The President of El Salvador, Nayib Bukele, announced via Twitter that the Central-American nation will start accumulating Bitcoin (BTC) at the rate of one Bitcoin per day starting from today, November 18, 2022. 

El Salvador previously became the first country in the world to recognise Bitcoin as legal tender last year and already reportedly owns 2,381 Bitcoins. 

So far however, El Salvador’s foray into Bitcoin investing hasn’t paid off — the nation is estimated to have spent around US$100 million on Bitcoin, which is currently valued at around US$40 million, meaning it’s currently sitting on unrealised losses of around US$60 million.

The International Monetary Fund has previously warned that the country’s use of Bitcoin poses “large risks” when it comes to the stability of El Salvador’s financial institutions, financial integrity, consumer protections, and liabilities related to the use of public money to fund Bitcoin’s adoption.

We’re Still Early, Says El Salvador

El Salvador had not bought any BTC since July, when it picked up 80 BTC at the price of around US$19,0000 per coin.

But since BTC’s price has fallen in the wake of the FTX collapse, El Salvador apparently believes now is the time to start dollar-cost averaging. 

On Twitter, Bukele explained his belief that BTC is “the opposite” of FTX, stating BTC was designed specifically to avoid frauds and bank runs, and that purchasers of BTC are “still early.”

Justin Sun Chimes in to Match El Salvador 

The founder and CEO of the Tron blockchain, Justin Sun, responded to Bukele’s announcement by stating that Tron DAO will also start buying 1 BTC per day to store in its reserve. The Tron DAO Reserve is used by Tron to maintain the value of Tron-based stablecoins and to mitigate other financial risks to the blockchain.

If El Salvador continues to buy at the rate of 1 BTC per day for a prolonged period of time it could substantially increase its bitcoin holdings by the the time the next crypto bull market arrives. 

For a country already saddled with significant national debt, this aggressive BTC accumulation strategy is high risk — both Bukele and the citizens of El Salvador will be praying it pays off over the next few years. 

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Bitcoin ETFs Markets

Australian Asset Manager to Delist Crypto ETFs after 6 months

In the same year that Australia’s first crypto exchange-traded funds (ETF) launched — they’re ending: the asset manager behind the highly-anticipated ETFs has said that it intends to delist its funds that invest in Bitcoin (BTC) and Ethereum (ETH).

On November 2, Cosmos Asset Management advised the Cboe exchange of its plan to revoke its Bitcoin and Ethereum ETFs and that trading had been halted. 

Cosmos Company Secretary Hollie Wight said that after receiving “in-principle advice for Cboe that it will agree to the request”, the funds would be delisted effective from close of trade on Tuesday, November 8, 2022.

Bitcoin ETF Not Immune From Crypto Winter

It’s a disappointing end for the first Bitcoin ETF listed on the Australian stock market, but not totally surprising given broader crypto market conditions. 

Cosmos indicated that from November 9, the company would return funds to investors and that Cosmos would cover the funds’ closure costs.

“Subject to Cboe’s formal decision on the application, the responsible entity will commence the process on 9 November 2022 to redeem all investors at NAV as calculated by the Funds’ administrator and return their capital as soon as possible.”

Cosmos Company Secretary Hollie Wight

There was much hoopla when Cosmos launched its Purpose Bitcoin Access ETF (CBTC) and Purpose Ethereum Access ETF (CPET) funds in early 2022. The announcement was closely followed by news of competing Bitcoin ETFs from 21Shares.

But almost simultaneously the crypto winter was cooling the market. The price of Cosmos’ Bitcoin ETF has fallen around 19 percent since its launch in May.

CBTC price fall in the past year. Source: Cboe Australia
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Bitcoin Crypto News History

Bitcoin Added to the Guinness Book of World Records

Bitcoin and trophy

Alongside quirky honours like ‘Tallest man ever’ and ‘Largest living cat’, Bitcoin (BTC) has now been immortalised in the Guinness World Records (previously known as The Guinness Book of Records). 

Guinness World Records has recognised several of the OG cryptocurrency’s most noteworthy achievements, including its status as the world’s oldest cryptocurrency and the most valuable cryptocurrency.

These entries, and a host of other crypto-related entries, were included in the 2023 edition of the annual compendium. Other notable new entries into the Guinness World Records recognised topical subjects such as TikTok and space travel.

Listing Reflects Crypto’s Relevance

In addition to the records mentioned above, the 2023 edition of the Guinness World Records includes quite a few other Bitcoin and crypto-related records. 

Some of the more notable entries include:

  • The most expensive NFT artwork went to an artist known as Beeple (real name Mike Winklemann) for his work ‘Everydays: The First 5000 Days’, which sold in March 2021 for a whopping US$63,346,250. 
  • The first country to adopt Bitcoin as legal tender is listed as El Salvador on September 7, 2021.

Other crypto-related entries appearing on the Guinness World Records website include:

  • Largest Bitcoin Fraud
  • First Commercial Bitcoin Transaction
  • First Bitcoin Transaction
  • First Minecraft Server With a Bitcoin Economy
  • First Country to Adopt Bitcoin as Legal Tender
  • Most Valuable Cryptocurrency
  • Oldest Cryptocurrency
  • First Cryptocurrency Exchange
  • First Blockchain
  • Largest Cryptocurrency Hack
  • First Decentralised Cryptocurrency
  • First Seizure of Cryptocurrency
  • First NFT
  • First Tradable NFT
  • Largest Cryptocurrency Winning Jackpot in an Online Poker Tournament
  • Most Expensive NFT Artwork (Limited Edition)
  • Most Expensive NFT Artwork (Open-Edition Auction)
  • Largest Seizure of Cryptocurrency
  • Most Valuable Sports Club NFT
  • Most Expensive NFT Collectible
  • First Ethereum NFT
  • Highest Floor price for an NFT Collection
  • Richest Crypto-billionaire (Current)
  • Highest Transaction Volume for an NFT Collectible Game
  • Most Expensive Tweet Sold at Auction

Speaking to Coin Telegraph, a representative from Guinness World Records explained the publication’s interest in crypto:

“[Guinness World Records] tries to reflect that year’s zeitgeist and the topics our readers are likely to be discussing…We will be watching this space with interest over the next few years, as the technologies that underpin crypto develop and find a wider range of applications.” 

Guinness World Records Spokesperson
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Bitcoin Crypto News Economics Market Analysis

Latest US Inflation Report Higher Than Expected – Bitcoin Swings 6%

Bitcoin with chart in the background

A higher than expected CPI figure from the US Department of Labor released on October 13 saw Bitcoin’s (BTC) price immediately plummet, before recovering to sit up 1.5 percent.

The inflation figure of 8.2 percent was higher than the 8.1 percent most market watchers had predicted, sending both crypto markets and traditional financial markets tumbling. 

According to data from CoinGecko, immediately following the news Bitcoin’s price dropped over three percent from just over US$19,000 to US$18,317. In the hours since the initial decline, both traditional and crypto markets rallied strongly. At the time of writing, Bitcoin was changing hands at US19,423.

Recovery Follows Traditional Markets

After the initial rapid fall, traditional markets closed the day up, with the Dow up 2.8 percent on the day and the S&P 500 up 2.6 percent. The popular view is that crypto markets reacted to what was going on in the traditional markets and tracked their behaviour.

Analysts aren’t entirely sure what caused the traditional markets to rally so strongly after the initial impact of the CPI announcement, but some say the high CPI figure was simply already priced in.

Core Inflation High, Markets Await November Rate Announcement

The core inflation figure, which came in at 6.6 percent, is perhaps even more worrying than the headline figure. Core inflation, which excludes food and energy prices, now sits at its highest level in forty years and suggests high inflation may be becoming a more permanent feature of the US economy. 

With such a high core inflation figure it’s now likely the US Federal Reserve will issue a large rate hike when they meet in November. 

Further evidence of a likely large rate increase comes from data on federal-fund futures trading from CME, which suggests a strong chance of an interest rate rise of 75 basis points, or 0.75 percent. 

Generally, rate hikes have been bad news for risk-on investments like cryptocurrency, so the next few months may be a tough time for the crypto markets.

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Australia Bitcoin Crypto News Regulation

Aussie Government Prioritises ‘Token Mapping’ for New Regulatory Framework

The Australian government has released a statement indicating that it will begin a review as to how digital assets should be managed. This starts with a process it has termed “token mapping”:

Crypto Reform Under Way

In the statement, Treasurer Jim Chalmers highlighted that the review was designed to ensure that Australia kept in line with global best practices:

Australians are experiencing a digital revolution across all sectors of the economy, but regulation is struggling to keep pace and adapt with the crypto asset sector.

Jim Chalmers, Australian federal Treasurer

In doing so, the first item on the agenda was a so-called “token mapping” exercise aimed to establish how different digital assets and related services ought to be regulated. Apparently, this is the first of its kind, making Australia “leaders in this work”.

What Is Token Mapping?

The process of token mapping is said to entail uncovering the characteristics of all digital asset tokens, including the different types, their underlying protocols, and any other relevant technological features.

Chalmers added: “As it stands, the crypto sector is largely unregulated, and we need to do some work to get the balance right so we can embrace new and innovative technologies while safeguarding consumers.”

Noting the increased proliferation of crypto investments to the extent that related promotions are “plastered all over big sporting events”, Chalmers stressed that “we need to make sure customers engaging with crypto are adequately informed and protected”.

Prior to the token mapping exercise, government is expected to release a consultation paper with industry regarding a proposed regulatory framework.

Given the widespread belief among mainstream pundits that most cryptos amount to unregistered securities (including NFTs), the so-called token mapping exercise may yield at least one positive outcome – that it simply isn’t feasible to have different sets of rules for the traditional and crypto sectors (particularly with regards to fundraising and disclosures).

If government does the work, you’d expect it to find that Bitcoin is best reviewed as a commodity, whereas all the other cryptocurrencies are more accurately seen as companies. Most Bitcoiners aren’t, however, holding their breath:

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Bitcoin Crypto News

Hodlonaut Receives $1 Million in BTC to Defend Faketoshi Lawsuit

The self-proclaimed inventor of Bitcoin, commonly known as “Faketoshi” among Bitcoiners, is back at it again. This time, Craig Wright is suing a pseudonomyous Bitcoin website editor for defamation.

‘We Are All Hodlonaut’

True to form, the Bitcoin community has rallied in support of “Hodlonaut”, raising over US$1 million (52 BTC) to support what is expected to be a costly lawsuit.

With the trial set to commence on September 12 in Oslo, Hodlonaut reached out to the community for support, highlighting that in addition to defending the defamation claims he would also be seeking an order preventing Wright from additional claims in the future:

Hodlonaut call to arms. Source: Twitter

The Bitcoin community heard the call to action and wave of support followed, with one particularly deep-pocketed Bitcoiner donating 47 BTC:

Aside from financial contributions, the community offered its support with the hashtag #WeAreAllHodlonaut. Michael “Gigachad” Saylor, the unofficial corporate king of Bitcoin, tweeted the hashtag on the same day as the massive 47 bitcoin donation was received. Coincidence?

Defending Bitcoin

It’s difficult to remember a time when Craig Wright wasn’t embroiled in some or other legal proceedings. Most recently, he won a case against a popular British podcaster for defamation, however ended up with the paltry sum of £1 for deliberating manufacturing evidence.

Wright has routinely threatened media personalities and Bitcoin Core developers with lawsuits, which has ultimately led to the creation of a fundraising page called defendingbtc. Thus far, over 50 bitcoin has been donated and, given the community’s support behind Hodlonaut, that figure is likely to only go up.

Despite having numerous opportunities to conclusively prove that he is Satoshi, Wright has failed in each case. Is Hodlonaut the person to once and for all and finally put to rest Wright’s persistent baseless claims? Time will tell.

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Bitcoin Canada Crypto News Ethereum Regulation

Ontario-Based Exchanges Impose $30,000 Annual Buy Limit on Altcoins, a Trend?

Canadian cryptocurrency platforms Newton and Bitbuy are imposing a CA$30,000 annual net buy limit on altcoins in some provinces, though the limit will not apply to unrestricted cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash:

Toronto-based exchange Newton says the limit will apply to what are being called restricted cryptocurrencies, or altcoins. A net buy limit tallies up all crypto purchases minus sells (at average cost) over a rolling 12-month period, according to Bitbuy.

Nine Provinces Affected

Provinces where the buy limits will be imposed are New Brunswick, Newfoundland, Nova Scotia, Nunavut, Northwest Territories, Ontario, Prince Edward Island, Saskatchewan, and Yukon. Users can still resell restricted cryptocurrencies to reduce their balance towards the limit, which resets after one year.

The limits, put in place by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators, are calculated based on the amount in Canadian dollars altcoins are worth at the time of trade and are thereby unaffected by increases or decreases in the value of one or more digital assets.

The decision has rightly caused some confusion of frustration among Canadian residents who took to Twitter to express their concern:

On the other hand, Ethereum co-founder Vitalik Buterin is understandably happy about the decision to privilege major coins such as Ethereum:

Canada’s Shifting Crypto Landscape

Canada’s crypto scene has caused much confusion and frustration this year after Prime Minister Justin Trudeau took unprecedented steps in February by invoking the 1988 Emergencies Act, which enables the government to freeze bank accounts without going through the courts, in an attempt to deny funding to the Canadian “Freedom Convoy”, thus essentially banning cryptocurrencies.

The Freedom Convoy was established through a loose affiliation of truckers and citizens who launched protests over vaccine mandates for truckers crossing the US/Canada border. Many have slated the country’s decision as undemocratic and authoritarian.

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Australia Bitcoin

Aussie Bitcoiners Gather the Tribe in Proof-of-Work Bush Bash

What started as an ad-hoc post-lockdown gathering of Australian Bitcoiners in Woop Woop, the Bitcoin Bush Bash has inadvertently become a triannual grassroots pilgrimage attracting plebs from across the country, most recently to the coastal town of Yeppoon, Queensland.

Bottoms-Up Event in True Bitcoin Spirit

Back in October 2020, there were growing signs that state borders would be opening soon. This sparked an idea among a couple of Bitcoiners on opposite ends of the country to meet in the middle to catch up and discuss all things Bitcoin over a few cold beers.

One of the organisers put word out to the Bitcoin community, saying:

Hit up @hodloncomrades or @BTCSchellingPt if you wanna come and join us.

@hodloncomrades via Twitter

The plan was to meet at the small, charming country town of Murrurundi in New South Wales, some 320km north of Sydney and over 900km from Brisbane.

Whether intentional or not, the “proof-of-work” required to attend had a self-selecting effect, attracting only impassioned Bitcoiners with conviction from across the country, doubling the amount expected, and substantially more than the average local Bitcoin meetup.

That weekend in Murrurundi, which since has been unofficially declared the Bitcoin capital of Australia, was filled with questions, answers and discussions and demonstrations aplenty – a formula that has since been applied to subsequent iterations of the event.

The Bush Bash is truly an event for and by the plebs. Attendees praise the lack of corporate sponsorship, as well as the opportunity to connect, educate and create long-lasting bonds with like-minded individuals. With support from the Bitcoin Moon Fund and others, it is unlike almost all conferences since it is free, does not require registration to attend, is open-source, and most notably embodies an unspoken egalitarian spirit of humility and sharing of knowledge.

I spent the weekend matching names with Twitter handles, eating steak and left feeling energised and super grateful to be a part of this phenomenal community.

Anon Yeppoon 2022 attendee

Finally, aside from the electric sense of optimism that flows from a Bush Bash, one of the encouraging by-products is the impact on local communities and businesses in each of Bush Bash locations, namely Murrurundi, Beechworth and Yeppoon.

Yeppoon 2022

The most recent Bush Bash took place at the Strand Hotel in Yeppoon, attracting Bitcoiners from far and wide, including one from Perth in Western Australia who travelled an incredible 4,500km. Proof-of-work indeed.

The Strand Hotel played host to Bitcoin Bush Bash 2022 in Yeppoon.

The topics were diverse and varied, from the technical to the philosophical. Among those issues discussed were:

  • The Lightning Network – what Lightning is, the different types of nodes and some key lessons learnt by a node operator along the way;
  • Looking Glass Education – how an Aussie Bitcoiner teamed up with a couple of macro heavyweights to launch the world’s go-to source for Bitcoin and macro education for beginners;
  • Citadels – Bitcoin citadels, their purpose, and strategies employed in their defence;
  • Bitcoin News – the launch of Australia’s first Bitcoin-only news and education website;
  • Bitcoin mining – energy 101, how Bitcoin is the buyer of first and last resort, and what its environment impact is;
  • Bitcoin mining and the grid – energy demand, mining components and home mining operations; and
  • FediMint – an open-source custody protocol enabling groups of individuals to create federated Chaumian Mints on Bitcoin.

In between sessions, there was a tremendous energy among attendees and an overarching sense of shared values and understanding. If Australian Bitcoiners are in search of their tribe, the Bush Bash is most certainly where they would find it.

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Bitcoin Crypto News Ethereum Federal Reserve Markets

BTC and ETH Rally as US Inflation Shrinks to 8.5%

Crypto markets have responded favourably to a slower-than-expected US inflation print in July, with the official rate steady at 8.5 percent and both Bitcoin (2 percent) and Ethereum (9 percent) up within minutes of the report’s release:

With the worst of consumer price increases now behind the US economy, there was widespread relief on the part of crypto traders that the Federal Reserve might relax its aggressive approach to tightening monetary conditions.

CPI Unchanged, Below Projections

The consumer price index (CPI) was unchanged from the previous month, due in part to lower energy prices, according to a Bureau of Labor Statistics report. Food and energy prices aside, core CPI remained unchanged at 5.9 percent over the past 12 months, just under a projected 6.1 percent.

“The Fed will be cheered by the news, especially the fact that core inflation was also lower than expected,” said Richard Carter, head of fixed interest research at UK-based investment management firm Quilter Cheviot.

They will still need to hike rates at their next meeting in September, but this reduces the risk of another 75 basis-point move and, going forward, we might just see markets act a little calmer than they have to date.

Richard Carter, head of fixed interest research, Quilter Cheviot

Next Rate Hike Likely to be 50 Points, Not 75

More than 60 percent of traders are now betting the Fed will hike interest rates by 50 basis points in September, compared with half that number just one day ago, according to the CME FedWatch Tool. Traders saw a 75 basis-point hike as the likelier scenario after last week’s Bureau of Labor report showed the economy was still able to sustain more rate hikes.

All of which is a far cry from two months ago when crypto markets shed US$100 billion in the wake of the highest US CPI print in 40 years.