Category: Bitcoin

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Bitcoin Crypto News

Joe Rogan ‘One or Two Orange Pills Away’ From Becoming a Bitcoin Maxi

Joe Rogan, host of the world’s most popular podcast, is no stranger to alternative perspectives. Despite first hearing about Bitcoin in 2014, he is yet to become a full-blown proponent, though recent signals suggest he is nudging ever closer to becoming “orange-pilled”:

‘Orange-Pilled’?

Becoming “orange-pilled” is to recognise the irredeemable flaws of the debt-based fiat system, central banking and how Bitcoin fixes it. To supporters, the orange pill is a financial off-ramp towards freedom and monetary sovereignty:

Dr Satoshi’s Orange Pill. Source: Bitcoin Magazine

The phrase originates from the The Matrix, where Morpheus offers Neo a choice between a red pill or a blue pill:

This is your last chance. After this, there is no turning back. You take the blue pill – the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill – you stay in Wonderland, and I show you how deep the rabbit hole goes.

Morpheus, The Matrix

Rogan Staring Down the Bitcoin Rabbit Hole

With an average of 11 million downloads per episode, The Joe Rogan Experience (JRE) is one of the more influential sources of media in the world today. Most recently, the show hosted mixed martial arts (MMA) star Khalil Rountree, who shared his “Bitcoin awakening” with the world’s most popular podcaster:

Rountree kicked off by describing his experience at the Bitcoin 2022 Conference, saying that Bitcoin offered hope for humanity and the future. Rogan appeared to agree with the sentiment, likening Bitcoin to the early days of the internet when governments demonstrated an express desire to control it, though in the case of Bitcoin:

They [the government] didn’t see it coming and now it’s a viable form of currency – you can actually buy things with it.

Joe Rogan, JRE

Without explicitly naming them, Rogan then hinted at the risk of CBDCs (central bank digital currencies), explaining that there will be a time when government “limits what you spend your money on”.

Interestingly, Rogan first spoke publicly about Bitcoin with Andreas Antonopoulos in 2016, saying he was “on team Bitcoin”. Despite later arguing it could fail, his most recent pronouncement suggests he is closer than ever to becoming a Bitcoin maxi.

Michael Saylor recognised the significance of Rogan talking about Bitcoin, saying:

Immediately, requests started pouring in for Rogan to host two of the best Bitcoin bulls – Saylor, of MicroStrategy, and Strike chief executive Jack Mallers. Memes starting popping up everywhere, almost willing it into existence:

Image
Mallers and Saylor “appearing” on the JRE. Source: Bitcoin Meme Hub

Rogan is not just a podcaster – he is a cultural phenomenon whose listeners appreciate his intellectual honesty and willingness to engage with new ideas. From an ideological perspective, he has all the makings of a Bitcoiner and appears to be staring straight down the Bitcoin rabbit hole. Was it Canada confiscating its citizens’ assets? Or the realisation that Bitcoin is unseizable digital property?

Either way, it seems likely that sooner or later he will come out as a full-blown Bitcoin bull.

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Banking Bitcoin Crypto News

Goldman Sachs Makes its First Bitcoin-Backed Loan

Wall Street titan Goldman Sachs Group Inc (GS) has further legitimised Bitcoin as a global macro asset class by making its entrance into the world of bitcoin-backed lending.

BTC-Backed Loans Gaining Momentum

According to a report by Bloomberg, GS has offered its first-ever lending facility backed by bitcoin. While similar products are already available from several international crypto-focused businesses, GS’s move is been seen as a significant step towards major US banks embracing Bitcoin lending products.

Borrowing against bitcoin is becoming increasingly popular among Bitcoiners who are looking for liquidity – whether for household expenditure, to put down a deposit on a home, or to buy more BTC – but who do not wish to sell.

This attractive proposition is rather simple in practice – the investor posts some BTC as collateral, then borrows fiat currency and as the price of bitcoin rises, refinances ad infinitum. Of course, if the price moves in the opposite direction, you would need to post more collateral, reduce the liability or otherwise have a portion of collateral liquidated.

How a BTC backed loan works. Source: Zephyrnet

When employed successfully, this strategy allows for HODLers to keep their hard-earned stack without the worry of capital gains tax, which is payable on the sale of digital assets.

Goldman Becoming Bitcoin-Friendly

As recently as 2020, GS was telling its clients to steer clear of BTC. However, on the back of client demand, it has gradually softened its position and can these days be seen as somewhat of a Bitcoin bull.

Last year, GS filed for a Bitcoin exchange traded fund (ETF) and in January it released a report saying BTC was taking gold’s market share, commenting that it could hit US$100,000 by year end. And then last month, GS made history by becoming the first major US bank to facilitate an over-the-counter (OTC) bitcoin options trade:

Despite all these positive signals from a Wall Street mainstay, most Bitcoiners would be justifiably cautious since GS’s embrace of Bitcoin is undoubtedly driven by profits, and not an ideological desire to fundamentally alter the financial system.

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Australia Bitcoin ETFs Ethereum

Canadian Challenger Joins Australian ETF Race

A Canadian challenger could blow open the Australian crypto exchange-traded fund (ETF) race as it moves to seize an opportunity to make history by listing Australia’s first ETF.

According to a report in the Australian Financial Review, Toronto-based 3iQ Digital Asset Management has applied to launch two ETFs after a technical delay held up rival investment houses. The crypto specialist firm lodged disclosure documents with the Australian Securities and Investments Commission (ASIC) late last week. These documents revealed its plans to list the 3iQ CoinShares Bitcoin Feeder ETF and 3iQ CoinShares Ether Feeder ETF on the Cboe Australia exchange.

The fund will give exposure to both Bitcoin and Ether by buying units in two of 3iQ’s existing ETFs, which are listed on the Toronto Stock Exchange and co-managed by London-based CoinShares. The funds will trade on Cboe under the tickers BT3Q and ET3Q.

Technical Challenges Delay ETF Race

Local issuers ETF Securities and Cosmos Asset Management had expected their pending ETFs to begin trading on April 27, but were unable to launch after Cboe told the market “standard checks” were still ongoing. Both ETFs are still yet to begin trading.

The hold-up was caused by a powerful but undisclosed “prime broker” who required more time to support the new asset class, forcing a delay in trading. This presented 3iQ with the opportunity to get ahead of its competitors and list Australia’s first ETF to be invested directly in digital assets.

Australian ETF Race Heats Up

Australia appears to be leading the ETF charge ETFs. In December 2021 the country saw its first spot crypto ETF, which launched through ETF Securities and 21Shares. Early last month, it was announced that Australia would soon receive its first Bitcoin ETF. Since then a slew of competitors – Cosmos Asset Management Bitcoin ETF, 21Shares Bitcoin ETF, and 21Shares Ethereum ETF – were set to follow suit by launching their own crypto ETFs.

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Bitcoin Crypto News Cryptocurrencies Cryptocurrency Law Cryptocurrency Tax

Panama Passes Crypto Bill Exempting Digital Assets From Capital Gains Tax

One by one, nation states are taking steps towards becoming attractive destinations for the burgeoning digital asset sector. The latest to do so is international financial centre Panama, which has just passed a bill exempting crypto from capital gains tax:

Investment and Employment Boost

A plenary session of the Panamanian Legislative Assembly has approved a bill (40-0) regulating the use of crypto in the Central American country:

Project Law No. 697, which regulates the commercialisation and use of cryptocurrencies, the issuance of digital value, the tokenisation of precious metals and other goods, payment systems and dictates other provisions, was approved in the third debate.

Panamanian national assembly, Twitter

Congressman Gabriel Silver, who has actively promoted the bill, announced: “Crypto Law approved in third debate! This will help Panama become a hub of innovation and technology in Latin America!”

Last week, he argued that the bill aimed to “give legal stability to crypto assets in Panama [and] develop the crypto industry in the country to attract more investments and generate more employment”. Silver has since added:

The only thing missing is for the President to sign it. Thank you to all who helped. This will help create jobs and financial inclusion.

Gabriel Silver, Panama Congressman

Panama Steps Up its Game

Increasingly, we’re seeing countries, cities and regions implementing attractive regulatory frameworks to attract crypto capital and talent.

They don’t need to go as far as El Salvador and the Central African Republic and make bitcoin legal tender. Many have instead opted for zero capital gains tax, including the Swiss city of Lugano, as well as Roatán in Honduras and Madeira in Portugal.

Bitcoin Beach: has El Salvador started a fiat crypto wave? - Raconteur
A vendor at “Bitcoin Beach”, El Salvador. Source: Raconteur.net

In fact, Bitcoin educator Stefan Livera has argued that “removing capital gains from bitcoin spending is more important than legal tender laws”, and he may well be right.

The logic is that in doing so, bitcoin or cryptocurrencies become de facto legal tender as the act of spending does not constitute a capital gains tax event. This is also attractive to Bitcoiners as citizens have the ability to opt in, unlike legal tender laws, which are imposed from above by central authorities.

Panama’s latest move provides a clear signal to competing jurisdictions that when it comes to luring crypto investment and employment, it means serious business.

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Bitcoin Crypto News Payments Regulation

Central African Republic Becomes Second Country to Adopt BTC as Legal Tender

The rumours are indeed true – the Central African Republic (CAR) has become the second nation state to adopt bitcoin as legal tender, according to official government sources:

‘Now Our Country is One Step Ahead’

According to a statement from President Faustin Archange Touadera’s office, the National Assembly has passed, and he has signed, a bill establishing a legal and regulatory framework for cryptocurrencies, making bitcoin legal tender alongside the CFA franc:

Official announcement per Minister of Digital Economy

To some the news was surprising but to others less so, as CAR’s finance minister Herve Ndoba told Bloomberg last week:

There’s a common narrative that sub-Saharan African countries are often one step behind when it comes to adapting to new technology. This time, we can actually say that our country is one step ahead.

Herve Ndoba, CAR finance minister

Details Somewhat Murky for Now

Several sources in both traditional and crypto media have managed to verify the announcement on the ground, along with several credible Bitcoiners who make it their mission to establish the facts.

One of those is human rights advocate Alex Gladstein, who noted that the bill had been in the works for the past month “with a lot of debate and criticism from the opposition, but [it] was passed unanimously on April 22”. It is also understood that “some opponents of the bill didn’t show up for the vote, and some plan to challenge it later”.

Another Bitcoiner with her ear to the ground is Anita Posch, a Bitcoin educator on a mission to orange-pill Africa. She took to Twitter saying that the official statement “looked legit”, but that bitcoin wasn’t legal just yet as several compliance measures were required to “complete the process”:

Clear Obstacles Stand in the Way of Adoption

The most obvious challenge is that less than 11 percent of CAR’s population of 4.83 million have access to the internet, suggesting that the CFA franc will remain dominant for now. In fact the United Nations describes it as the second-least developed nation on Earth.

In addition, many in the opposition and civil society continue to believe that Bitcoin is a scam, as noted by Gladstein. He adds, however, that the government’s motivation may be twofold:

  1. it could open new opportunities and provide new economic development; and
  2. due to civil war, bitcoin could make it easier to trade in/out of the CFA franc.

Despite these challenges, Bitcoiners have cheered on the news, suggesting “two down [referring to El Salvador and now CAR], just another 193 to go”.

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Bitcoin ETFs Gold

World’s First Hybrid BTC and Gold ETF Launched

The world’s first combined Bitcoin and Gold exchange traded fund (ETF) has been launched this week in Switzerland. The product has been developed by ETP issuer 21Shares and cryptocurrency data provider ByteTree Asset Management.

The first ETF product to combine gold and and what has now become known as digital gold – bitcoin – in a single fund was launched on the SIX Swiss Exchange. As Charlie Morris, chief investment officer at ByteTree Asset Management, has said, “We are making bitcoin an acceptable asset to hold and bringing gold into the 21st century.”

ByteTree and 21Shares Make BOLD Move

ByteTree Asset Management BOLD ETP will track a customised benchmark index comprising bitcoin and gold, which rebalances monthly according to the comparative volatility of the two assets. Whichever of the two has been less volatile over the previous 360 days will be given the higher weighting. At launch, the weighting will be 18.5 percent bitcoin and 81.5 percent gold.

While gold ETPs and spot bitcoin ETPs are both widely available independently, at least in continental Europe, Morris claimed that ByteTree’s active rebalancing strategy had improved returns by seven to eight percentage points a year in backtesting. Morris added: “It struck me that bitcoin and gold were always counter-cyclical. It’s obvious to me that bitcoin has always been correlated to the stock market, or to risk assets in general.”

According to Charlie Erith, CEO of ByteTree Asset Management, the investment strategy is “a unique approach to blending a high return digital asset with a traditional store of value, with a low correlation to equities and bonds”. He added:

Gold has historically delivered portfolio protection in inflationary environments, while bitcoin is the digital equivalent of gold with growing adoption by investors as a distinct asset class and a core store of wealth … In a time of rising structural inflation and heightened geopolitical risk, we believe this can act as an important risk and return diversifier in a balanced portfolio.

Charlie Erith, CEO, ByteTree Asset Management

21Shares Has Form in ETF Space

21Shares has been very active in launching ETFs, after releasing a product in December 2021 that provided Australian investors with access to the country’s first direct Bitcoin and Ethereum ETFs.

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Australia Bitcoin DeFi Ethereum Market Analysis

Australians Made $2.1 Billion in Gains from Crypto in 2021

Australians realised US$2.1 billion in crypto gains in the 2021 calendar year, putting Australia in 17th place globally for annual realised crypto gains, according to blockchain analytics firm Chainalysis.

Globally, gains were up more than five-fold compared to the previous year, increasing from US$32.5 billion in 2020 to US$162.7 billion in 2021, with the US seeing the most gains by a wide margin:

Many Countries Record Increases of 400-500%

This is the first year that Chainalysis has reported annual gain data on cryptocurrencies other than Bitcoin (BTC), so it’s hard to draw direct comparisons – but based on the BTC data, it appears gains in Australia are up around 5x, which is in line with similar economies around the world. In 2020, Australia saw around US$0.2 billion in BTC gains, while in 2021 this figure was close to US$1 billion.

Many other countries saw similar increases: the US recorded growth of 476 percent, from US$8.1 billion to US$47.0 billion; UK gains grew 431 percent; and gains in Germany were up 423 percent.

China’s gains increased from US$1.7 billion to US$5.1 billion, a modest gain of 194 percent. This relatively subdued growth is most likely a reflection of the Chinese government’s crackdown on crypto activity over the past year.

Majority of Gains From Ethereum

On a per-crypto basis, the majority of realised gains globally came from Ethereum at US$76.3 billion, with Bitcoin coming in second at US$74.7 billion.

Crypto gains by country by coin. Source: Chainalysis

Chainalysis attributes Ethereum’s dominance to the explosion in DeFi in 2021, saying:

We believe this reflects increased demand for Ethereum as the result of DeFi’s rise in 2021, as most DeFi protocols are built on the Ethereum blockchain and use Ethereum as their primary currency.

Chainalysis

Good Signs for Crypto

Chainalysis believes its data shows that crypto is in a vigorous growth phase and suggests it still represents a good economic opportunity moving forward, explaining:

While there are still risks the industry must work to mitigate, the data not only shows that crypto asset prices are growing, but also that cryptocurrency remains a source of economic opportunity for users in emerging markets.

Chainalysis

The crypto environment in Australia in particular looks bright, with increased regulatory clarity on the way and numerous crypto ETFs set to launch in the coming weeks.

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Bitcoin Crypto News Lightning Network

Morgan Stanley Says Bitcoin’s Lightning Network Better Than Debit Cards

In a report released this week, global investment bank giant Morgan Stanley argued that bitcoin had reached a point where it is “more practical” for small payments than a debit card:

In outlining the reasons for its bold assertion, the report notes that bitcoin is progressing towards becoming a medium of exchange following an integration between Lightning Network-enabled Strike and BlackHawk Network, the world’s largest point-of-sale payment processor.

The integration, announced by Strike chief executive Jack Mallers at the 2022 Bitcoin Conference, allows consumers to pay in bitcoin using the Bitcoin network, and for merchants to receive US dollars without having to touch the asset.

Strike Announces Shopify Integration, Partnerships With NCR And Blackhawk Bringing Bitcoin Lightning Payments To Major Merchants
Strike chief executive Jack Mallers at the 2022 Bitcoin Conference. Source: Forbes

Put differently, if a consumer pays in bitcoin, the merchant can elect to receive either US dollars or bitcoin in real time with instant final settlement at virtually zero cost.

By contrast, traditional payment processors such as Visa or Mastercard charge merchants a transaction fee of 1-3 percent, in addition to imposing a 45-60 day settlement period in which charge-backs are possible.

Visa, PayPal, Bitcoin or Lightning Network? Let's compare | by GeniePay | Medium
Comparison of payment networks. Source: Geniepay

Lightning Network ‘More Practical’

Morgan Stanley noted that the “evolution of bitcoin usage as a medium of payment” will likely be driven by the ability of consumers to choose whether to pay for goods and services in physical locations with bitcoin through the Lightning Network.

This was largely because sending small payments was “more practical” with Lightning than debit cards, as Bitcoin’s layer-two solution can route transactions with next to zero fees. Furthermore, the banking giant expects that low transaction costs and merchant adoption will likely lead to less volatility in the asset over time.

In the US, where 85 percent of retail sales are still done in brick and mortar stores, this innovation is a potential game-changer for traditional retailers – a “superior payments experience”, as Jack Mallers would put it.

Many Twitter users found it astonishing that a Wall Street giant was effectively admitting that the Lightning Network was an improvement on the existing payments infrastructure:

It’s been more than a year since macro superstar Lyn Alden commented that people were “sleeping on the potential importance of Lightning”:

Based on available evidence, it appears that Alden’s comments were not only prescient but are playing out quicker than she could have anticipated.

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Bitcoin Crypto News Ripple

Ripple CEO Hits Out at Bitcoin Maximalists

Ripple CEO Brad Garlinghouse has said that bitcoin “tribalism”, or what he calls bitcoin maximalism, is inhibiting the entire cryptocurrency industry and has led to “fractured representation” when it comes to lobbying US lawmakers.

Garlinghouse also said that he finds the lack of coordination in Washington DC within the crypto industry “shocking”:

Bitcoin Maximalism Stifling Industry Growth

In an interview with CNBC, Garlinghouse said he owns multiple cryptocurrencies and expects them all to rise together as the overall industry grows:

I own Bitcoin, I own Ether, I own some others. I am an absolute believer that this industry is going to continue to thrive … All boats can rise.

Brad Garlinghouse, CEO, Ripple

While speaking out about his concerns, Garlinghouse compared the crypto market to the rise of the internet giants decades ago, saying: “Yahoo could be successful and so could eBay … They’re solving different problems … There [are] different use cases and different audiences and different markets. I think a lot of those parallels exist today.”

What Garlinghouse calls “bitcoin maximalists” refers to people who view one coin – in this case, bitcoin – as the currency that rules all others. According to this point of view, in the case of cryptocurrencies, it is that one asset that presents an outsized reward compared to others, causing what Garlinghouse calls “fractured representation”.

Ripple is still dealing with a lawsuit brought on by the US Securities and Exchange Commission (SEC) for allegedly issuing XRP, Ripple’s native coin, as an unregistered security. In February, some good news regarding the suit allowed XRP to soar 50 percent.

So-called “Bitcoin maximalists” have taken to Twitter to express their views:

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Australia Bitcoin Crypto News ETFs Ethereum

Australian Crypto ETF Competition Heats Up, Two More Listings Set to Launch

Within days of news that Australians will soon receive the country’s first Bitcoin exchange traded fund (ETF), a slew of competitors look set to follow suit by launching their own own crypto ETFs.

Another Bitcoin ETF and the First Australian Ethereum ETF

According to a press release, 21Shares AG (“21Shares”), a Swiss-based issuer of crypto exchange traded products (ETPs), and Australian ETF provider ETF Securities have jointly launched two funds to provide direct access to bitcoin and ethereum respectively:

  1. 21Shares Bitcoin ETF (EBTC)
  2. 21Shares Ethereum ETF (EETH)

Both EBTC and EETH are due to list on April 27 on Australia’s secondary public exchange, the Cboe (formerly Chi-X), with EBTC tracking the price of bitcoin and EETH tracking the price of ethereum, both in Australian dollars. Much like Cosmos Asset Management bitcoin ETF (CBTC), whose bitcoin will be held by Gemini, both of 21 Shares’ funds have opted for an offshore custodian in the form of Coinbase, who will hold the assets in cold storage.

While 21 Shares claims that both of its products are a first in Australia, sticklers for detail may wish to point out that EBTC is in fact tied for first with CBTC, as both are scheduled to go live April 27.

In describing the commercial basis for its imminent listings, ETF Securities Australia executive chairman, Graham Tuckwell, said:

The products give investors a way of trading cryptocurrency in a tightly regulated environment, without the need to establish and maintain their own bitcoin or ethereum wallets, or manage the risks.

Graham Tuckwell, executive chairman, ETF Securities Australia

Biggest Capital Market Gets Left Behind

Shortly after news that Australia was going full steam ahead with crypto ETFs, a representative of global ETF provider VanEck described the US regulator’s conservative stance on listing a bitcoin ETF as “a big loss for investors”. And at present, there doesn’t appear to be an end in sight.

Last year, Crypto News Australia reported that there were more than 34 applications outstanding in the US, with “market manipulation” being one of the more frequently cited concerns.

It goes without saying that there are plenty of variables potentially holding up ETFs in the US – whether financial, political, or otherwise driven by “investor protection”. Whatever the case may be, it’s evident that as Australia becomes the eighth nation to launch a bitcoin and ethereum ETF, the world’s most developed capital market is getting left behind: