MAJR Newsletter 038
Miami to launch it's own cryptocurrency - MaimiCoin, Square did $2.7B in BTC revenue in Q2'21, Ethereum's upcoming London hard fork could send ETH prices flying, NFT sales volume is soaring
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BITCOINMiami Set to Launch Its Own Cryptocurrency, Reward Users in Bitcoin
The city of Miami, FL is launching their own cryptocurrency, MiamiCoin ($MIA) to help incentivize people to support the city funding infrastructure and events. The initiative is led Mayor Francis Suarez who’s been outspoken supporter for bitcoin. He intends to make Miami the crypto capital of the US and a hub for tech innovation. Investors who buy MiamiCoin and stake the token will be rewarded by passively earning a yield in bitcoin and STX, which is the native token for the Blockstack, which is the protocol / technology building and supporting MiamiCoin. If successful, this project will most likely spur other cities, municipalities and states to consider launching their own token.
Square Customers Spent $2.7 Billion on Bitcoin in Q2
Square, the digital payments company reported $2.72 billion in bitcoin revenue in Q2’21. This revenue was up 3x year over year. Gross profit was $55 million. The company also reported a $45 million loss against it’s $220 million bitcoin purchases given May’s downturn in price. All of these numbers come on the heals of the company’s largest acquisition purchasing Afterpay, a online shopping fintech company for $29 billion.
Banished Chinese Bitcoin Miners Look to the West, and Far Beyond
Post Chinese bitcoin mining ban, bitcoin miners are looking for new homes and most are looking to the west for locations to host machines. There’s no clear winner for the historical migration of hashrate. It’s estimated that 25% will find it’s way to North America with another 25% going to central Asian countries like Kazakhstan, Mongolia and parts of Russia, 15% going to Latin America and then 10% heading to Europe.
CRYPTOHow Will EIP-1559 and Ethereum's 'Triple Halving' Affect ETH's Price?
Ethereum is upgrading its code making it’s native currency ETH more scarce. On August 5th, Ethereum will undergo the London hard fork, which implements the Ethereum Improvement Proposal 1559 (EIP-1559). The anticipated upgrade is important because now a portion of the ETH mining fees will be burned (destroyed) ultimately decreasing supply. This can be compared to Bitcoin’s halving, putting deflationary pressure on supply causing an increase in price. Over the last year, ETH has risen 600% in price and analysts predict we could see an even more dramatic increase in price post upgrade. There’s multiple deflationary factors coming together for Ethereum’s supply. The supply of ETH is being reduced in three ways - 1. EIP-1559 burns ETH via transaction fees - 2. A large amount of ETH is being staked in DeFi - 3. Ethereum is moving to Proof of Stake (POS) where token holders earn a yield from staking their ETH. This decreases the liquid supply of ETH over the next two years and beyond. One analyst predicts ETH could see $150k price levels in the not so far future.
NFT Market Comes Roaring Back as Ethereum Rises
Non-fungible tokens (NFTs) are back on the center stage for crypto as investors and influencers are buying digital art for millions. Gary Vaynerchuck bought a CryptoPunk for $3.7 million while the average price for a CryptoPunk jumped up 53% over the last week to $135k. Transaction volume for NFTs hit $2.5 billion in the first half of 2021. OpenSea, a top NFT marketplace did $95 million in volume in the last two days vs. $21 million in all of 2020.
US Infrastructure Bill Crypto Clause Updated, But ‘Not Good Enough’ Yet Say Insiders
The massive $550 billion United States infrastructure bill seeks to raise $28 billion from taxing “crypto brokers.” The definition of a “crypto broker” was not clearly defined and has created fear within the crypto community as the language was too broad, however, the definition was apparently revised over the weekend. The language was shifted from “any person who is responsible for and regularly provides and services effectuating transfers of digital assets" to “any person who is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.” The first draft could have affected a much wider range of individuals from miners, validators, DeFi projects and token holders, etc. The revised language isn’t great, but is an improvement. Apparently the bill has bi-partisan support and is expected to pass. Below is a quote from Blockchain Association Executive Director, Kristin Smith with regard to the language affecting the crypto ecosystem.
“While some minor improvements have been made, the latest language still poses fundamental concerns and questions about certain terms and definitions used in the provision,” said Blockchain Association Executive Director Kristin Smith, in a statement.
“This provision is written in a way that could be interpreted to apply to persons in the crypto ecosystem who don’t have access to the information required for information reporting,” Smith added. “If these network participants—who don’t have any customer relationships—are required to provide such information, it will be impossible to comply, driving innovation and business overseas.”
New Crypto Bill in US Congress Is the Most Comprehensive Yet
Senator Toomey Calls Text of Current Crypto Tax Proposal ‘Unworkable’
Voyager Digital acquires crypto payments company Coinify
Digital asset trading firm, Voyager Digital plans to buy payments company Coinify in a cash and stock deal worth $85 million. Voyager hopes that the acquisition will help expand its cross border payments capabilities. Voyager has been publicly listed in Canada since 2019.
MACROIMF Nations Approve Record $650 Billion to Aid Virus Fight
Member nations approved the largest resource injection in its history, with $650 billion towards helping countries deal with mounting debt from managing the pandemic. The IMF created reserve assets, known as special drawing rights (SDRs) to finance the capital injection. Of the $650 billion, 58% will go to advanced economies and 42% will go to emerging and developing countries.
The Winners and Losers in the Bipartisan Infrastructure Bill
The $550 billion US infrastructure bill that’s expected to pass follows Biden’s $1.9 trillion Covid relief bill passed in March and will benefit freight haulers, airlines and internet suppliers. Among the companies to benefits are Comcast, Charter Communications, Amazon, FedEx, UPS, American Airlines, Delta Airlines and Southwest Airlines. All of the roads, bridges, pipes, rails and electric wires will also benefit commodities given the fact that an enormous amount of steel, cement, aluminum, copper and metals will be needed.
Fed’s Brainard Says Labor Market Hasn’t Satisfied Goals for Reducing Bond Purchases
Fed governor Lael Brainard backed the Federal Reserve’s stance, that the labor market isn’t strong enough to pull back on its $120 billion monthly asset purchases. The Fed’s governors are split on the timing of when to taper. As of June, the economy is still short an estimated 7 million jobs. Brainard believes job growth will continue and that they’ll be in a better position come October to reassess their monetary policy.
Delta variant surges across U.S. South; political leaders clamp down again
Florida and Louisiana saw the countries highest hospitalization numbers stemming from the resurgence from the Covid Delta variant. More than 10k patients were hospitalized on Sunday in Florida. Louisiana is expected make new records in the coming 24 hrs., while hospitalizations are soaring in Arkansas too. Mask mandates for indoors are being reinstated in CA, NY and NJ. Florida Governor Ron DeSantis remains firm on getting his state back to normal and has taken the opposite approach then his left leaning counterparts by barring schools from requiring face coverings saying it should be up to the parents.
MEDIA The Supply Shock For Bitcoin Is Going To Make The Price Go Insane.
Vitalik Buterin : Things that matter outside of DeFi
Bitcoin and crypto adoption is here to stay. Don’t let your friends and family miss the opportunity of a lifetime.
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