Category: Bitcoin

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Bitcoin Crypto News Investing

Mexican Billionaire Ricardo Salinas Puts US$1.5 Billion into Bitcoin

Ricardo B. Salinas is among the swarm of cyber hornets as one of the top high-profile advocates for Bitcoin, with laser eyes and #Bitcoin in his Twitter profile. Putting his money where his mouth is, he has invested 10% of his personal wealth into Bitcoin.

Worth an estimated US$15.2 billion, Salinas is the third-richest man in Mexico and among the top 200 richest people in the world. As founder and chairman of Grupo Salinas, a group of companies with interests in telecommunications, media, financial services and retail stores, he says the best thing to put your money into is Bitcoin.

#Bitcoin @RicardoBSalinas on Twitter

Last November, Salinas tweeted a video showing piles of paper money thrown into a bank’s bin because it is so worthless, due to hyperinflation affecting most countries south of the US border.

Translation: “To start with the #Bitcoin I share a video taken in a Latin country where banks throw money away (paper money is worth nothing) that is why it is always good to diversify our investment portfolio. This is inflationary expropriation!”

Mexican Peso Blows Out 1000% in 40 Years

Talking about inflation, Salinas stated that when he first started working in 1981, a US dollar was worth 20 pesos. Now, 40 years later, a dollar equates to 20,000 pesos. Bitcoin’s finite supply makes it a very attractive asset to invest in because it is deflationary.

Along with other billionaires such as the Winklevoss twins and Michael Saylor, Salinas is pushing the Gold 2.0 crusade. He believes that every investor should have a part of their portfolio in Bitcoin, likening its value to a modern form of gold.

Bitcoin a ‘Store of Value’ for Billionaire Investors

Billionaires looking for ways to protect their wealth against growing inflation are favouring Bitcoin as a store of value because they understand the many advantages it offers. Even well-respected old-school American institutional investors such as Warren Buffett can’t ignore Bitcoin any longer. Hedge fund manager Marc Lasry, for another, says he regrets not buying more Bitcoin.

Australian billionaire Alex Waislitz, touted as “Australia’s Warren Buffett”, has made tremendous profits of over 400% by investing in cryptocurrency companies.

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Bitcoin Crypto News

‘The Bitcoin Fund’ ETF Launches on Dubai Stock Market

In a first for the Middle East, a crypto-based exchange-traded fund (EFT) has been listed on the Nasdaq Dubai exchange.

The Bitcoin EFT, trading under the ticker symbol QBTC, was met with strong demand when it debuted on the Nasdaq Dubai on Wednesday, June 23.

Interest in QBTC has been strong on the Nasdaq Dubai exchange

‘The Bitcoin Fund’ has roughly US$1.5 billion in assets under management and is dual-listed, having been established by Canadian digital asset management firm 3iQ on the Toronto Stock Exchange (TSX) in 2020. 

Expanding to the Middle East will capitalise on investor demand in the region and give people access to trade in their local time zone, according to 3iQ’s chairman and CEO Frederick Pye:

The idea is Bitcoin trades 24 hours a day … so our interest is to bring a regulated product to the Dubai market in their time hours.

Crypto EFTs Continue to Emerge Globally to Meet Demand

Canada was the first country to offer a crypto EFT on a major exchange in 2020 and now has multiple Bitcoin EFTs available on the Toronto Stock Exchange. 

Investment management firm Invesco – which holds US$1.5 trillion in assets – applied for two crypto-based EFTs in June 2021, joining a queue of companies waiting on the US Securities and Exchange Commission (SEC) to decide whether to give the EFTs the green light. 

Australia’s primary securities exchange the ASX is looking into the creation of a local EFT for cryptos to cater to demand, although the ASX has not specified a timeline for enacting such a mechanism.

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Bitcoin Crypto News Cryptocurrencies

“We’re Adopting Bitcoin for the Benefit of the People,” Says President of El Salvador

On 10 June 2021, El Salvador became the first country to adopt Bitcoin as legal tender. In an interview with Bitcoiner Peter McCormack on the “What Bitcoin Did” podcast, President Nayib Bukele provided additional context to the historic move, outlining how it would be implemented and how it would ultimately benefit Salvadorean citizens.

The Purported Benefits

In the discussion, President Bukele highlighted a number of key benefits to the newly enacted law, including:

  • Receiving remittances at the speed of light with almost no costs, compared to the slower and more costly fee structures of Western Union and the like. Importantly, personal remittances account for almost a quarter of El Salvador’s GDP
  • Providing financial inclusion to the 70% of the population who remain unbanked
  • Becoming less dependent on the output of new US dollars and resultant inflation due to an unprecedented increase in the money supply; in short, El Salvador wants to take back some control of its monetary system as it enjoys no benefit from the increased supply of US dollars, only the downside
  • Increased levels of financial investment and the attraction of global talent, particularly when coupled with forthcoming residency-by-investment laws.

Bukele noted that as the smallest country on the continent whose people had benefited little from the current system, it made sense for El Salvador to be at the forefront of an economic revolution by adopting a system that is open and free, rather than one dependent on another nation (referring to the US) which doesn’t necessarily consider the impact on countries such as El Salvador that use its currency.

The Roll-Out Plan and Government Wallet

The President is working towards having the law fully operational within 90 days, a target that is considered a stretch but achievable with requisite considerable effort.

El Salvador President Nayib Bukele

Within this aggressive timeline, government is also looking to roll out its non-mandatory government wallet which the President stressed would compete with free-market alternatives and existed simply to “fill in the gaps”. Specifically, the government wallet would provide transactional services (ie, free internet access) to those without reliable connectivity:

We don’t want a law that is only for the rich, not only for the middle class, we want a system that works for everybody … we want the most vulnerable economically to benefit from that.

Nayib Bukele

Is El Salvador the First of Many?

Since El Salvador adopted Bitcoin as legal tender and is potentially paying government employees in BTC, the question on everyone’s lips has been which country would be next. Following Bukele’s announcement, a slew of Latin American legislators adopted the Bitcoin laser-eyes on their Twitter profiles, signalling their intention to follow suit.

Reports suggest that Paraguay is likely to be next, but if we’ve learnt anything over the past 12 months in crypto, a lot and almost anything can happen in a very short space of time.

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Bitcoin Bitcoin Mining China Crypto News

Chinese Mining Businesses Migrate to Kazakhstan Amid the Crypto Crackdown

Canaan, a major ASIC miner manufacturer, and BTC.com, the fifth-largest Bitcoin miner group, are moving into China’s backyard, with particular focus on the Central Asian country of Kazakhstan.

As the crackdown on cryptocurrencies in China continues, so does the migration of miners looking to other parts of the world where they can set up shop. Today, political stability, regulatory clarity and respect for private property rights are the most important criteria for miners.

Miners Look to New Options

With confirmed bans in multiple regions including Xinjiang, Inner Mongolia, Sichuan and Yunnan, miners are looking for new options. One of BIT Mining’s data centres (part of the BTC.com mining pool) received a notice from the Sichuan State Grid informing it that the grid would cut its power supply by June 19. In response, the company expects to have 2600 Bitcoin miners shipped to Kazakhstan by the start of July.

Over the coming quarters, it plans to ship its remaining mining machines to other data centres outside of China. BIT Mining has also invested US$25 million in a new mining centre in Texas.

Following our investments in cryptocurrency mining data centres in Texas and Kazakhstan, we are accelerating our overseas development for alternative high-quality mining resources.

Xianfeng Yang, CEO of BIT Mining

Canaan the Latest Mover

Chinese ASIC manufacturer Canaan has also decided to set up a base in Kazakhstan, where it plans to diversify its mining operations.

One of the main considerations for these businesses moving from China is the high cost of transporting equipment halfway across the world. Miners need a place with existing infrastructure capable of supporting the needs of these types of businesses.

Some Operators Are More Cautious

Besides the country’s relative proximity, this is a contributing factor in moving to Kazakhstan as it is expected to host several other crypto mining firms in the future. Some operators, however, are more cautious.

I think Kazakhstan has already hit a sort of ceiling as to how many miners can move into the country.

Alejandro De La Torre,  Poolin vice-president

The US is a second option for miners who can afford it. States such as Texas, Mississippi, Tennessee and Florida have already indicated their openness to migratory miners. 

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Binance Bitcoin Crypto News

There’s Now Over 570,000 BTC Held on Binance, Far More Than Any Other Exchange

BTC/USDT price chart on Android mobile app by Binance
BTC/USDT price chart on Android mobile app by Binance [https://unsplash.com/photos/y3FRkhP-UgY]

The largest cryptocurrency exchange, Binance, currently holds over 570,000 BTC in reserve. This is considered the highest amount of BTC held by the exchange and far exceeds the balance in other major exchanges, according to data from CoinMetrics.

What’s Behind the Spike in Binance BTC Reserve

It’s worth noting that Binance and some other major exchanges have been seeing an increase in BTC inflows over the past few weeks. There are a lot of factors at play behind the increase in Binance BTC balance. One is the current bearish state of the market, which is causing some investors to deposit Bitcoin to exchanges, probably for selling. 

CoinMetrics also opines that the increase in Binance Bitcoin balance is partially caused by Chinese investors moving their BTC holdings off local exchanges. 

Recently, the Chinese authorities stepped up their efforts in cracking down on Bitcoin mining activities in the country. The People’s Bank of China also resounded its warnings to financial institutions on providing their services to cryptocurrency-related activities. Such a development would add an extra layer of difficulty for crypto traders in China.  

Miners’ Outflows Subside After Initial Flurry

Not minding the regulatory unrest in China concerning digital currencies, there hasn’t been any significant increase in BTC miners’ outflows over the recent days. At first, miners’ outflows to exchanges increased following the announcement that Chinese authorities are planning to clamp down on cryptocurrency mining activities. However, the outflows have since subsided, even as some of the affected miners are relocating. 

At the time of writing, Bitcoin’s price was up by over 3% at US$33,664 over the previous 24 hours. BTC dropped below US$29,000 on June 22, amid the bear market. It remains to be seen how soon the market will recover. However, Crypto News Australia recently reported that BTC investors are gradually regaining confidence in the market, following a reserve in exchange flow. 

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Bitcoin Crypto News

Michael Saylor Executes Corporate Treasury Strategy and Buys the Dip

Last week, MicroStrategy made headlines after it announced that it had closed a US$500 million offering in senior secured debt for the purpose of acquiring Bitcoin, in addition to raising $1.5 billion to buy even more. A short week later and the move has now officially been implemented.

Michael Saylor, nicknamed “Saylor Moon” by the Bitcoin community, made the announcement via Twitter:

Mixed Reactions

With MicroStrategy now holding over 0.5% of Bitcoin’s entire market capitalisation, the announcement has elicited the usual response from Bitcoin permabulls and permabears alike.

Cryptographer and Blockstream CEO Adam Back commented:

Diversification is for those without an investment thesis (paraphrasing Buffett).

Twitter

Others had a more humorous take:

Twitter

As Bitcoin’s price dropped on the news of China banning exchanges, Bitcoin sceptic Peter Schiff was quick to note:

That’s pretty bearish that you already bought all that #Bitcoin and the price kept dropping anyway.

Unsurprisingly, Bitcoin Twitter responded with a flurry of comments relating to gold’s underperformance over the past 12 months with memes ranging from the obscene to the hilarious:

Twitter

Who Else Has Been Buying Bitcoin?

Despite a drop in momentum over the past six months, the narrative in this Bitcoin cycle has been about growing institutional adoption.

If you’re interested in following the latest developments in this space, be sure to check out our Crypto Institutional Purchases List 2021, which we regularly update when new announcements are made.

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Bitcoin Crypto News Ethereum NFTs

Flawless 101-Carat Diamond to be Auctioned at Sotheby’s Accepting Crypto As Payment

perfect diamond isolated on shiny background with clipping path.

International auction house Sotheby’s will accept Bitcoin (BTC) and Ethereum (ETH) for a rare 101.38-carat diamond, the first time cryptocurrency will be accepted as payment at auction of a diamond weighing more than 100 carats.

No other physical object with an estimate even approaching this amount has ever been publicly offered for purchase with cryptocurrency, according to the auction house.

This is a truly symbolic moment. The most ancient and emblematic denominator of value can now, for the first time, be purchased using humanity’s newest universal currency. Never was there a better moment to bring a world-class diamond such as this to the market.

Patti Wong, chair of Sotheby’s Asia

Dubbed ‘The Key 10138’, it is an example of type IIa diamonds, the most chemically pure variety of which only 10 over 100 carats have ever been sold at auction.

A Homage to the Digital World

Sotheby’s, a British-founded American multinational corporation headquartered in New York City and operating in more than 40 countries, is one of the world’s largest brokers of fine and decorative art, jewellery, real estate and collectibles.

With the name ‘The Key 10138’, we wanted to celebrate this enlightening virtue while also alluding to the crucial function of digital keys in the world of NFTs and cryptocurrency.

Wenhao Yu, deputy chairman of Sotheby’s Jewellery in Asia

Along with fiat, the auction house will also accept Bitcoin and Ethereum as payment for the diamond, estimated to be worth between US$10 million and $15 million. The live single-lot auction will be held in Hong Kong on July 9, with online bidding open from June 25. Sotheby’s will host the auction using its hybrid online and live bidding process.

Advertisement for the diamond [Sotheby’s]

The Key 10138 diamond is the main attraction of Sotheby’s inaugural “Luxury Edit” sale series in Asia, bringing together a variety of luxury items that include jewels, watches, wine, handbags and rare sneakers. The auction house has not stated whether these other items will be available for purchase with crypto as well.

Increasing Interest in the Digital Space

Sotheby’s has made significant strides in the adoption of blockchain-related technologies such as NFTs. The organisation recently sold a CryptoPunk non-fungible token (NFT) for a record US$11.8 million.

Last month, Sotheby’s sold a Banksy for US$12.9 million in the first instance of a work of physical art sold by a major auction house that was bought with cryptocurrency.

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Bitcoin Crypto News Market Analysis

Bitcoin Returns in Q2 2021 – Worst in Eight Years

Bitcoin’s performance in 2021 has thus far been a tale of two quarters. In Q1, Bitcoin enjoyed the best start to a year in eight years, outperforming traditional asset classes with returns of over 100%. Of late, however, much of the wind has been knocked from Bitcoin’s sails as Q2 has been the worst on record in eight years.

How Does Bitcoin’s Performance Compare to Previous Years?

Relative to past performance, Q2 appears to be somewhat of an anomaly. Over the past eight years, there have only been two quarters that have recorded negative returns. Bitcoin’s returns of -40.03% in Q2 2021 are by far the worst in eight years, the next closest being -6.7% in 2018.

Data by Skew Analytics

Ethereum Has Outperformed Bitcoin in 2021

It is often stated that other cryptocurrencies, relative to Bitcoin, tend to outperform on both the upside (during bull markets) and downside (during bear markets). Thus far, 2021 doesn’t appear to be following that pattern, particularly when it comes to Ethereum.

Compared to Bitcoin, Ethereum has enjoyed a better year to date with returns of 162% in Q1 and just under -5% in Q2.

https://au.investing.com/crypto/ethereum

Bitcoin Markets Remain Uncertain

For the time being, the market appears to be on edge, despite bullish announcements such as MicroStrategy moving to acquire up to an additional US$1.5 billion in Bitcoin.

While not an exact science by any measure, the Fear & Greed Index below suggests we have a way to go before sentiment can be said to have shifted in a positive direction.

While the short-term downward moves are cause for concern among long traders, particularly those using leverage, many Bitcoiners remain undeterred.

Volatility, in their eyes, is to be expected of an emergent store of value on a price discovery path towards global adoption. In the interim, they simply #stacksats, HODL and repeat the mantra, BTFD.

There are top analysts however, that are predicting BTC will hit $160k by the end of 2021.

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Bitcoin Bitcoin Mining China Crypto News

Nvidia GPU Prices in China Fall Amid Bitcoin Mining Crackdown

Mining rigs of a super computer are pictured inside the bitcoin factory 'Genesis Farming' near Reykjavik, on March 16, 2018. - At the heart of Iceland's breathtaking lava fields stands one of the world's largest bitcoin factories at a secret location rich in renewable energy which runs the computers creating the virtual currency. (Photo by Halldor KOLBEINS / AFP)

Nvidia graphic card prices in China have fallen as much as two-thirds on Chinese e-commerce websites following the government’s crackdown on cryptocurrency mining.

As per a June 21 report by the South China Morning Post (SCMP), medium to advanced card prices fell on various e-commerce websites after Sichuan officials ordered the shutdown of several crypto mining facilities. The Nvidia Quadro P1000 model, an entry-level graphics card, was priced at 2,429 yuan (US$376) on JD.com, a popular online retailer in China.

The Asus RTX3060, which is a more advanced card, dropped from 13,499 yuan to 4,699 on June 21 on JD.com-operated online retailer site Tmall.

Mining Companies Pushed Overseas

Some miners plan to relocate from Guangzhou to US state Maryland, moving three tonnes of Bitcoin mining machines, according to a tweet from CNBC representative Eunice Yoon.

Xinjiang, Inner Mongolia and Sichuan were the three biggest provinces for crypto miners thanks to cheap electricity. But these areas have become hostile environments despite miners using hydroelectric energy instead of coal. This has pushed BTC mining companies overseas, some now looking at North America, Central Asia or South America.

One of the most attractive alternatives for miners is South America, which is becoming a mining hub as more countries follow El Salvador’s decision to make Bitcoin legal tender and facilitate BTC mining with wasted geothermal energy.

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Bitcoin Crypto News

Analyst Who Called The Drop Now Predicts BTC to Hit $160,000 by the End of 2021

Tech entrepreneur Alex Mashinsky (CEO of fintech platform Celsius Network) is confident that Bitcoin will resume tracking upwards, continuing its bullish macro trend.

Not even Elon Musk can stop Bitcoin’s dominance; as Musk’s credibility and influence are finally wearing thin on the crypto community, those who understand Bitcoin better – like Celsius founder Alex Mashinsky – have chipped in with their two Satoshis’ worth.

BTC to Push Upwards of $100,000 by End of Year

Just weeks ago euphoria in the market was at an all-time high, though Mashinsky correctly predicted that Bitcoin could see a harsh correction in the US$30K range. Many did not want to believe it or hear about it but, as we now know, it did happen. Although this near 50% drop was the most severe Bitcoin has sustained so far, overall the projection for its end-of-year price targets remains optimistic.

Mashinsky interviewed by Michelle Makori, editor-in-chief of Kitco News, June 14

Donning a HODL T-Shirt for a recent interview on Kitco News, Mashinsky explained – now all the highly leveraged traders have been flushed out, Bitcoin’s price has settled and found key resistance levels. HODLers unite!

We’ve flushed all the leverage in the system and found support at $30k and now we’re rebuilding upwards in price acceleration.

Alex Mashinsky

Mashinsky Dubs Musk a “Tourist”

Other “A+ ambassadors” for Bitcoin include the likes of Michael Saylor and Jack Dorsey (both of whom attended the Bitcoin 2021 conference in Miami earlier in June). Sadly for Elon, he isn’t in that club. Mashinsky playfully called him a “tourist”, inferring that Musk is dabbling in crypto for the wrong reasons (ie, to further his own interests, not to help others).

Forty percent of all the US dollars created were minted in the last 12 months.

Alex Mashinsky

Inflation on the Rise

The US and other countries have recently printed excessive amounts of paper money, giving serious concerns over growing inflation rates and what all this really means. A $1 million Bitcoin may not actually be that far off, now that institutions and entire countries are coming on board the crypto train. With El Salvador, Nigeria (and more to follow) adopting Bitcoin as legal currency, the global financial system is at the mercy of Bitcoin.

Today we have approximately 100 million participants in the Bitcoin system worldwide.

Alex Mashinsky

Watch the full interview on Kitco News below: