Monday, October 4th, 2021
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Your Weekly Update On All Things Crypto |
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El Salvador Starts Mining Bitcoin Using Geothermal Energy From Volcanoes |
El Salvador is making rapid progress in the cryptocurrency industry, having officially mined the first Bitcoin (BTC) using volcanic energy. Not only is this a historic development in its own right, but it is hot on the heels of the country making history by being the first-ever nation to make Bitcoin legal tender.
President Nayib Bukele announced the achievement via Twitter, which included an image of the mined Bitcoin while mentioning that additional testing and installation are still continuing as of this time. He has since referred to the project as ‘Volcanode’.
A new way to mine Bitcoin
President Bukele had stated this past June that he had indeed instructed LaGeo to permit Bitcoin miners to access the nation's volcanic sources of energy. So far, the plan to utilize geothermal energy is going well. El Salvador’s leader made it known that in order to mine Bitcoin, the mining operations must be extremely inexpensive, completely clean, renewable, and have no emissions whatsoever.
Furthermore, volcanic energy brings in clean mining for a digital asset that has been plagued by unfavorable press attributable to its carbon footprint. Notably, Bitcoin detractors have used the asset's environmental effect as justification for a total prohibition. It is a well-known fact that Bitcoin needs a significant amount of energy to be mined, which in certain circumstances exceeds the usage of several nations.
Mining firms are thus actively searching for renewable energy sources to power their assets, which is most likely the best course of action that can be taken right now as Bitcoin mining cannot continue if it consistently damages the environment and ecosystem.
Mixed reactions continue
It is worth mentioning that El Salvador's Bitcoin-oriented approach has been received with considerable suspicion, particularly from worldwide financial organizations such as the World Bank and the International Monetary Fund.
Steve Hanke, Professor of Applied Economics at Johns Hopkins University, raised some concerns about El Salvador's efforts, claiming that it will certainly have long-lasting ramifications, even going as far as to describe it as ‘economic incompetence’. According to Hanke, legalizing BTC may lead to an economic catastrophe.
To encourage adoption, the government had previously also distributed $30 in Bitcoin to each account holder in the nation. Furthermore, El Salvador's government may be planning to launch a local cryptocurrency to be used to pay for various services and products.
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SEC Close To Approving Bitcoin EFT... But Not The Kind We Wanted |
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With many Bitcoin ETF proposals under review by the US SEC, Gary Gensler the chairman restates his support for Bitcoin futures on Wednesday, at the Future of Asset Management North America Conference. Referencing open-end mutual funds invested in bitcoin futures traded on the Chicago Mercantile Exchange, Gensler reaffirms his positive outlook for that certain type of Bitcoin ETF. Bitcoin's price seemed to react with gains realized shortly after the announcement. Bitcoin gained 4.5% to trade near $43,400 after showing bearish movement the previous day. This Bitcoin ETF announcement renews speculation and hope of a regulated investment vehicle for the public Bitcoin investments. Critics of futures ETF's argue that this form of ETF does not buy crypto directly on the spot market, and has not been a positive influence on the price of gold since first launched in the US in 2004.
The long-awaited Bitcoin exchange-traded fund might finally happen—but not in the way many investors expected, or want. Though Bitcoin and other cryptocurrencies can be easily bought and traded on current exchanges, an ETF would eliminate the need to manage a digital wallet and allow investors to integrate the digital currency into their portfolios through traditional channels. This would surely bring many traditional investors to crypto, and in the case of a Bitcoin ETF that actually bought the underlying asset could result in the price reflecting the increased investment and demand. The same thing cannot necessarily be said about a futures ETF that does not directly own the asset, but instead, bets on its future value, on paper only.
The argument as to which form of ETF is better for Bitcoin is a deep subject worth developing an opinion on. It is important to recognize the difference between the two types of ETFs and draw perspective from historical applications such as gold. Gold and Bitcoin as alternative assets are inversely related to the stock market fluctuations, in that they go up in prices when traditional stock prices decline. This attribute is very attractive to investors as it helps reduce overall portfolio risk. Some believe that an ETF for Bitcoin vs a futures Bitcoin ETF is better because it invests directly in the assets. A Bitcoin futures ETF does not invest directly in the assets, and may even detract from the inverse relationship with stock prices. This is to remove or diminish its key alternative value proposition and enable traditional market players to have more control over the Bitcoin price.
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Nakamoto Games offers gamers worldwide the opportunity to participate in countless blockchain-based games and generate a sustainable and sizable income.
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Contango Digital Assets Partners with MRHB DeFi to Bridge DeFi and Muslim Communities |
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Today, Canadian venture capital fund Contango Digital Assets announced that it will be working with MRHB DeFi, a decentralized finance platform focused on “bridging the gap between the Muslim Community and the Blockchain world.” The partnership is set to extend DeFi’s opportunities to users who have refrained from participating due to ethical concerns.
With a team of dedicated experts in Islamic Finance, MRHB has built a solution that is Shariah-compliant. It uses smart contracts to standardize the body of rules and principles that adherents must follow in matters of business in order to participate in DeFi in accordance with their beliefs.
“It’s surprising to us that such an important part of the world has not been able to participate in DeFi opportunities yet. MRHB is opening an important door in the Muslim Community for people who wish to benefit from this technology while remaining faithful to their beliefs. We’re thrilled to be a part of that.” – Contango Managing Director, Mike Grantis.
Contango’s investment is a realization of the fact that there is over $3 trillion in liquidity available in this previously overlooked market. More so, the platform built by MRHB is not exclusive to Muslim users. It is designed to encourage its ethos through a user-friendly experience and comprehensive ecosystem of applications that include interest-free lending services and an authentic NFT marketplace.
“We have built DeFi services that solve issues of faith, ethics, exclusion, and complexity. Our user-friendly platform provides equal opportunities to everyone, not only those who share our concern for holding crypto assets that are halal. With Contango’s support, we will continue our journey of growth and development within Islamic communities and beyond.” – MRHB DeFi CEO, Naquib Mohammed.
By partnering with MRHB, Contango will also provide the platform with additional tools such as expert advice and professional marketing services that will ensure its growth. This includes collaborations with influencer marketing leaders in the blockchain space, Influx Group.
About Contango
Contango Digital Assets was launched to empower the financial revolution that is presented by blockchain and DeFi technology. It invests in innovative projects from around the world and fosters strategic partnerships with founders who look for more than just capital. Learn more about Contango by visiting the official website or following the fund on Twitter.
About MRHB DeFi
MRHB DeFi is the first ecosystem to offer equal and trusted access to crypto assets, services, and wealth creation opportunities for excluded communities worldwide. Its ecosystem leverages technical expertise and extensive knowledge of how the Islamic ecosystem works to make DeFi available to over one billion potential users. Learn more about MRHB DeFi by visiting the official website or following the project on Twitter.
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Solana Breakpoint is a groundbreaking celebration of everything the Solana community has accomplished, what they've inspired, and for what comes next. Breakpoint is the first conference organized by the Solana Foundation. The Lisbon-based conference will bring together industry leaders, builders, and innovators from around the globe. This year, the conference will be held in beautiful Lisbon, Portugal, from November 7th - 10th, and will be broken down into 3 separate tracks.
THE ECOSYSTEM STAGE - LxFactory
Amazing use-cases and applications.
A 175-year-old textile factory has been converted into a dynamic hub for artists, architects, and creative professionals. LxFactory can host up to 1,900 guests surrounded by restaurants, bars, shops, and street art. This is the home of Breakpoint’s Ecosystem stage.
THE GROWTH STAGE - Estufa Fria
Agenda setting discussions and announcements on the future of Solana.
Lisbon’s historic botanical gardens span 1.5 hectares, housing hundreds of species of plants. It’s also the setting for Breakpoint’s Growth stage, where we’ll get hands-on with the DeFi, NFT, and other use-cases driving the Solana world.
DEVELOPER TRACK - SUD Lisboa
Hands-on workshops and tutorials with the best devs in the ecosystem.
Sun’s out, the laptop’s out. With stunning rooftop views over the Tagus river, SUD Lisboa will host Breakpoint’s Developer track. Apply to speak on the Developer track below.
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We at CryptoWeekly are not Financial Advisors. None of the content or opinions expressed in this newsletter should be considered financial advice. We highly recommend that you do your own research before investing in any project within or outside the cryptocurrency space. |
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