The first Spot Ethereum ETF in the U.S. has been approved

What are we talking about today?

Today we are talking about one of the most exciting events in the world of cryptocurrencies – the approval of the first Spot Ethereum ETF in the United States of America. This historic moment took place on 23.5.2024, and trading of the new ETF is expected to start at the earliest at the beginning of the seventh, and no later than in the ninth month of this year. A spot Ethereum ETF allows investors to gain exposure to Ethereum, the second-largest cryptocurrency by market capitalization, without having to own or manage it directly. This approval represents a significant step forward for the wider adoption of Ethereum, as it provides institutional and retail investors with a new opportunity to participate in the market. Below, we’ll explore in more detail what this ETF means for the future of Ethereum, and compare this approval to that of the Spot Bitcoin ETF.

Source: cointelegraph

What is a Spot ETF?

A spot ETF is an exchange-traded fund, that is, a type of financial product that tracks the price of an underlying asset in real time, in this case Ethereum (ETH). Unlike a futures ETF, which is based on future-price contracts, a Spot ETF reflects the current market price of an asset. This means that investors through the Spot Ethereum ETF can indirectly own Ethereum without the need for direct buying, storage, or security measures that come with owning cryptocurrencies. This simplifies the investment process and reduces the risks associated with the technical aspects of managing cryptocurrencies, making them more accessible to a wider range of investors. In short, this ETF should enable more people to invest in Ethereum, and thus push the price of it up.

Source: cointelegraph

Comparison with Spot Bitcoin ETF

When the Spot Ethereum ETF launches, we can expect similar market reactions as with the launch of the Spot Bitcoin ETF. The spot Bitcoin ETF, which was launched earlier, opened the door to institutional investors and significantly increased Bitcoin’s legitimacy as an investment vehicle. In a similar vein, the Spot Ethereum ETF is likely to increase interest in Ethereum, leading to higher trading volume and potentially higher prices. Parallel to the Bitcoin ETF, the Ethereum ETF can also contribute to stabilizing the market, as it will allow for a wider range of investors, including those who may not be willing to invest directly in cryptocurrencies due to technical and security challenges. Overall, the launch of the Spot Ethereum ETF represents a significant step for the cryptocurrency market, increasing the accessibility and acceptance of Ethereum globally, and we can expect that if all goes well, the launch of ETFs for numerous other cryptocurrencies will go smoothly.

Source: cointelegraph

Ethereum and SEC

The relationship between Ethereum and the U.S. Securities and Exchange Commission (SEC) has long been the subject of debate within the financial community. Currently, the SEC does not classify Ethereum as a security, and this was an important factor when approving the Spot Ethereum ETF. If the situation had been different, that is, if Ethereum had been classified as security, the ETF would very likely not have been approved. This also gives institutional investors a certain amount of security, given that the SEC confirmed with this move that Ethereum is not and will not be classified as security, which could not be known with certainty in the earlier period.

Source: cointelegraph

Launch of the Spot Ethereum ETF

The launch of the Spot Ethereum ETF is predicted by some Bloomberg analysts as early as the beginning of July. However, there is a broader consensus that the ETF will launch in September at the latest. These different time frames indicate optimism and excitement in the market, as the regulatory processes nearing completion. The expected launch within these frameworks may further boost investor interest and increase trading volume, providing a new impetus to the Ethereum market.

Source: cointelegraph

Ethereum in a wallet or in an ETF

When investors are considering investing in Ethereum, there is a crucial decision they must make: keep Ethereum in their own wallet or invest through an ETF. If we keep money in an ETF, technically speaking, that money is not directly owned by us. In the event of complications, although very unlikely, we can lose access to all our money. On the other hand, if we keep Ethereum in our personal wallet, there is a risk of losing access to the wallet, either due to a forgotten password or technical problems, which can also result in losing money. The final choice depends on personal preference and comfort level with different types of risks. It is recommended to thoroughly research what suits you best, but if you can be responsible and careful with your private keys, it is always more recommended to keep Ethereum on your own wallet for greater control and security.

Source: cointelegraph

Conclusion

The launch of the Spot Ethereum ETF in the U.S. marks a significant step forward for the cryptocurrency market, providing investors with the opportunity to own Ethereum without directly managing it. The ETF’s approval, which is expected between July and September, could increase liquidity and stabilize Ethereum prices. Spot Ethereum ETFs are likely to attract more institutional investors and improve the legitimacy of cryptocurrencies. However, investors must decide between investing through an ETF or directly owning Ethereum in their own wallet, taking into account the risks and benefits of both options. This decision depends on personal preference and comfort level with different types of risks. Regardless of the choice, the approval and launch of the Spot Ethereum ETF represents a significant step for the wider acceptance and stability of the cryptocurrency market, and is likely to contribute to increasing the number of investors in Ethereum and other cryptocurrencies. We hope you enjoyed reading today’s blog, and that you learned something new. If you have any questions or suggestions, you can always contact us via our social networks (Twitter, Instagram).

Bitcoin bonds in El Salvador

What are we talking about today?

Today, we look at the significant steps that El Salvador is taking in the world of cryptocurrencies, especially in the context of Bitcoin bonds. After 2021. In the year bitcoin became legal tender, El Salvador announced the issuance of Bitcoin bonds, with the aim of attracting investment for the development of the Bitcoin city and encouraging bitcoin mining. While the bonds were initially postponed due to poor market conditions, they have now been given regulatory green light, after which they were expected to be issued in the first quarter of 2024. years. This move joins other initiatives such as the Freedom Visa program, anyone who donates one million dollars in bitcoin receives El Salvador citizenship, making El Salvador a globally attractive destination for bitcoin holders. All of these initiatives indicate that El Salvador is striving to be a pioneer in the adoption of digital assets, opening a new chapter in its financial future.

Source: cointelegraph

El Salvador Bonds

El Salvador’s bonds are in 2023. year, with returns ranging between 5.5% and 9.75%, were among the most profitable. Bloomberg ranked them there, and their connection to bitcoin and cryptocurrencies is still the subject of analysis and research. S&P Global Ratings positively revised the rating of the bonds, which resulted in an increase in their price and value, and President Nayib Bukele points out that the traditional media unjustifiably predicted the country’s bankruptcy because of its “Bitcoin bet”, but El Salvador successfully paid off the debt of $ 800 million.

Source: cointelegraph

"Volcanic bonds"

El Salvador has laid the groundwork for its financial future with “Volcanic Bonds,” an initiative named after a planned Bitcoin city, which will be powered by energy from the Conchagua volcano. This 33-page bill, introduced in November 2022, allows El Salvador to raise $1 billion for key national projects. The funds raised from the Vulcan bonds will be directed towards resolving the national debt and financing the construction of a Bitcoin city, as well as encouraging the development of bitcoin mining infrastructure. The bonds, denominated in US dollars, offer investors an attractive annual return of 6.5% over a ten-year period, with a five-year lock-in period. As an added incentive, investors can take advantage of the accelerated path to El Salvador citizenship, thereby increasing the attractiveness of this investment product.

Source: cointelegraph

The Road to Economic Prosperity

El Salvador stands out as a country that attracts foreign direct investment (FDI). Foreign Direct Investment (FDI)), especially in the Bitcoin and sustainable energy sectors. Recently, Volcano Energy announced a $1 billion investment for a 241-megawatt bitcoin mining project in the Metapán region, an example of how El Salvador is using innovation to attract capital. This investment not only confirms El Salvador’s ambitions to become a key player in the Bitcoin ecosystem, but also highlights the economic benefits that come with attracting foreign investment. Given that Tether, the issuer of the USDT stablecoin , plays a significant role in this financial endeavor, it is clear that El Salvador is making progress towards economic prosperity. The mining site in Metapán uses renewable energy, with 169 MW from solar sources and 72 MW from wind power, and thus aims to raise computing power to an impressive 1.3 exahashes per second (EH/s).

Government cooperation and strategic ownership

In projects related to Bitcoin bonds, the government of El Salvador is not only the initiator but also a strategic partner. Their central role in planning and implementation ensures that the government generates a “preferred share equivalent to 23% of revenue”, which is crucial for aligning state interests with the private sector. This partnership allows the government to have significant influence while also attracting outside investors who own a 27% stake in the venture. Such structured cooperation is crucial for attracting foreign capital and fosters El Salvador’s international financial integration.

Source: cointelegraph

Economic impact and global recognition

El Salvador has become a global phenomenon in 2023. year with a $1 billion renewable energy project, attracting investment from major companies like Tether. This influx of foreign investment highlights the economic viability of renewable energy projects related to bitcoin mining. El Salvador’s approach to using rich renewable energy sources to mine bitcoin sets the standard for other countries exploring to improve their economies through mining initiatives, or the use of natural energy resources.

Contributes to economic growth and technological progress

Volcano Energy has pledged to contribute 23% of net revenue from mining operations to the government of El Salvador, demonstrating the country’s commitment to economic growth. The reinvestment of mining profits in energy transmission and infrastructure further encourages technological progress in this Central American country. This approach not only positions El Salvador as a leader in bitcoin acceptance, but also makes it an example of sustainable economic development through strategic foreign investment.

Source: cointelegraph

Conclusion

Ultimately, El Salvador’s initiative to harness the potential of bitcoin and renewable energy to drive economic prosperity and technological advancement positions the country as a leader in the global crypto scene. Their innovative approach to attracting foreign investment, including Volcano Energy’s commitment to bitcoin mining and its partnership with Tether, not only indicates the economic feasibility of such projects, but also sets the standard for economic models. The government’s cooperation with the private sector, along with the commitment to reinvest profits in infrastructure projects, shows a clear vision towards the future that combines technological progress with sustainable development. Through these initiatives, El Salvador is not only positioning itself as a leader in the world of cryptocurrencies, but also as an example to other countries looking for ways to improve their economy and technological infrastructure. We hope you enjoyed today’s blog, and that you learned something new, if you have any questions or suggestions, feel free to contact us on our social networks (Twitter, Instagram).

Ethereum Dencun upgrade

What is dencun upgrade?

The Ethereum network has undergone a significant upgrade known as Dancun, which is a technical “hard fork” implemented in the 269,568 epoch. This upgrade, finalized in just 15 minutes, brings revolutionary changes aimed at reducing the price of transaction fees and improving the overall scalability of Ethereum. The Dancun upgrade is particularly significant because it introduces “proto-danksharding,” an innovative concept that allows Layer-2 solutions like Polygon, Arbitrum and Optimism to store transaction data outside the main chain. This not only reduces fees for users on L2 solutions, but also frees up the Ethereum network to process essential transactions. Dancun comes as the successor to the Shanghai upgrade, which enabled the withdrawal of the acquired Ether (ETH), and represents a key step in Ethereum’s evolution towards greater efficiency and affordability. With “proto-danksharding” as a harbinger to complete “danksharding,” Dancun opens the door to massive improvements in scalability, positioning Ethereum as a leading blockchain platform ready for the future of decentralized applications.

Source: cointelegraph

What is EIP-4844 ("proto-danksharding")?

EIP-4844, known as “proto-danksharding”, represents an innovative approach in the Ethereum ecosystem with the aim of improving the efficiency and scalability of storing transaction data on Layer 2 networks. This upgrade proposal introduces “blobs” of data, which will replace the currently used “calldata” transactions. “Calldata” is limited data that is stored on a chain and requires permanent maintenance by nodes, which creates a large burden on validators. With “proto-danksharding,” Ethereum is turning to using “blobs” that allow larger amounts of data to be managed outside the chain, thus freeing rollups for more scalable data storage. This new method of storing transactions is expected to reduce the load on Ethereum nodes, reduce network congestion, and optimize its size for better performance. Lower transaction prices resulting from this system will increase the usability and efficiency of applications on L2. “Blobs” are usually deleted after about two weeks, allowing validators to optimize disk space. EIP-4844 also introduces cryptographic tools like the KZG obligation scheme, which ensure that data stored in “blobs” can be verified as valid without disclosing the data itself, thereby maintaining the integrity and security of the network. This proposal is a key step towards reducing costs and increasing the availability of the Ethereum platform for widespread use.

Source: cointelegraph

Reducing fees on layer 2 networks

The Dencun upgrade represents a significant step forward in reducing fees on Layer-2 networks that are built on Ethereum. This technology allows for the grouping of transactions within L2 networks, resulting in a reduction in costs before their final transfer to the main Ethereum blockchain. A key innovation that Dencun brings is proto-danksharding, which was introduced through EIP-4844. This functionality allows L2 solutions to keep transaction data off-chain, significantly reducing costs and facilitating scaling. Proto-danksharding has thus reduced the financial burden on users and encouraged greater efficiency and speed of transactions.

Source: cointelegraph

Improved security

The Dencun upgrade brings with it several key security improvements that were not in the primary focus but were implemented as part of the upgrade. With the introduction of EIP-4788, Dencun has strengthened the communication link between the layers of consent, where validators play a key role in network protection, and the execution layer, where transactions are processed. This improved communication between layers makes Ethereum more resistant to potential attacks, as it makes it difficult to exploit weaknesses within individual layers. In addition, the EIP-6780 changes the functionality within smart contracts, some of the new features allow contracts to “self-destruct”. This change reduces the possibility of abuse of this function by attackers, thereby increasing the security of smart contracts on Ethereum.

Source: cointelegraph

How does Dencun upgrade affect users and developers?

The Dencun upgrade to Ethereum brings significant changes that directly affect users and developers. Proto-danksharding, a key element of the upgrade, reduces transaction costs for L2 solutions, thus providing users with a more economical experience, particularly when using NFTs and DeFi services. For developers, Dencun simplifies transaction management processes and consent mechanisms, leading to a better development experience. This makes it easy to build and deploy decentralized applications (DApps) on Ethereum, making the whole process faster and more intuitive. The improvements that Dencun brings not only enrich the current Ethereum ecosystem, but also fuel a wave of innovative projects. Through these changes, Dencun is bringing Ethereum closer to the goal of achieving a truly scalable and user-friendly platform, ready for wider adoption and a brighter future.

Source: cointelegraph

Ethereum roadmap

On the road to ethereum development, developers focus their work on innovations that simplify the production of blocks, such as separating proponents and executors. They also work on data availability solutions, ensuring that off-chain data can be verified even if certain validators are offline. The final goal is to implement a complete Danksharding system that will split the Ethereum blockchain into fragments (shards), with each of them processing different groups of transactions. This separation will allow for mass scalability. The next upgrade on Ethereum’s path is Petra, which brings together the Prague and Electra upgrades. While details are still the subject of debate, potential features include Verkle trees for efficient data storage and laying the foundation for “The Verge,” which aims to simplify block verification. This focus on scalability creates a path for Ethereum that will be more convenient for users. The exact time to complete Danksharding is unknown; estimates range from several years to decades. Nevertheless, the successful implementation of Dencun demonstrates the commitment of ethereum developers to continuous development. We hope you enjoyed today’s blog, we would love to hear your opinion on the recent upgrade, and what do you think the future of Ethereum is. You can share your opinion, as well as any questions or suggestions with us on our social networks (Twitter, Instagram).

SEC attack on Ethereum

What are we talking about today?

In the world of cryptocurrencies, where innovation and regulation often clash, recent developments between the Securities and Exchange Commission (SEC) and Ethereum have provoked many reactions. The central question that arises is: is Ethereum, the first and largest smart contract platform and the second largest cryptocurrency by market capitalization, actually a security in the eyes of regulators? This blog will explore the implications of the SEC’s potential decision to declare Ethereum a securities . Security), and how it could affect the future of decentralized finance, innovation in blockchain technology, and the entire crypto market in general.

Source: cointelegraph

What is a security (eng. Security)

A security in financial terms represents a negotiating financial instrument that has a certain monetary value. In the United States, the Securities act of 1933. It was the first federal law regulating the U.S. securities market, and later the Securities and Exchange Commission (SEC) was created to regulate and implement 1. Although the term “securities” is often associated with stocks and bonds, the U.S. Supreme Court gives a much broader interpretation of this term. In Howey v. SEC (1946), the court found that the sale of land and agricultural services constituted an “investment contract” – although there were no traces of stocks or bonds. This case established a four-part Howey test, which states that an investment can be regulated as a security if: there is an investment of money, the investment is made in a “joint venture”, investors expect profit from their investment, and any expected profit or return is due to the actions of a third party or promoter. This rule implies that it does not matter whether the offer of securities is formalized by a legal contract or equity certificates; any type of investment offer can be a security.

Source: cointelegraph

History of Ethereum and the SEC

Ethereum, the second largest cryptocurrency by market capitalization, was founded in 2015. In 2011, the company had a vision of creating a decentralized platform that enables the execution of smart contracts and the construction of decentralized applications. Since its inception, Ethereum has undergone a series of technical upgrades, including the transition from a Proof of Work model to a Proof of Stake role model in 2022. year. This transition has attracted the attention of the SEC, which has begun considering classifying Ethereum as a security, which could have significant implications for its future and regulatory status. Bill Hinman, former head of the SEC’s corporate finance division, previously stated that Ethereum is not a security because it is “decentralized enough.” However, recent research and reports suggest that the SEC may be reconsidering this classification, especially after a change in ethereum’s security model.

Source: cointelegraph

What does this mean for Ethereum?

If the Securities and Exchange Commission (SEC) classifies Ethereum as a security, it could have far-reaching consequences for the entire Ethereum ecosystem and the wider cryptocurrency market. First and foremost, Ethereum would be subject to stricter regulatory requirements, which could limit its ability to act as an open, global platform. This could also lead to legal challenges, including the ability to remove ETH from Crypto exchanges in the US, which would significantly affect liquidity and market capitalization, that is, would lead to a loss in the value of ETH. In addition, projects that are built on the Ethereum blockchain could face uncertainty and potential obstacles, as using a registered security for everyday transactions, such as paying transaction fees, would be impractical. This could slow or even stop innovation and development in the field of decentralized finance (DeFi) and other applications that rely on Ethereum. Given that Ethereum has already switched to a Proof of Stake model, which allows ETH owners to stake their coins in exchange for rewards, similar to interest paid on bonds, this change could be a key factor in the SEC’s decision.

Source: cointelegraph

Other cryptocurrencies and investors

The designation of Ethereum as a security by the Securities and Exchange Commission (SEC) could also affect a wide range of altcoins. Investors could become more cautious when investing in cryptocurrencies in general, which could lead to a decrease in the value of Ethereum and related altcoins, causing significant losses. In addition, if Ethereum were classified as a security, it could drastically affect other cryptocurrencies and tokens, potentially attracting heightened regulatory oversight and affecting investor confidence. For crypto exchanges and platforms, such a classification could require changes in the way Ethereum and similar tokens are traded, including the need to register and adhere to stricter regulatory standards. Also, it is possible that regulatory uncertainty for development projects and startups in the crypto space would increase, which could slow innovation and the development of new technologies.

Source: cointelegraph

Conclusion

As the Securities and Exchange Commission (SEC) prepares to potentially classify Ethereum as a security, the entire crypto world is preparing for this decision, which could not only redefine the legal status of Ethereum, but could serve as a precedent for future regulations in the cryptocurrency space. The history of Ethereum and the SEC shows the complex relationship between innovation and regulation, where every move is closely monitored. If Ethereum becomes “Security,” it could mean significant changes for investors, not just in Ethereum, but in the entire crypto market. It will certainly be interesting to observe how the relationship between Ethereum and the SEC will unfold. You can of course write your opinion to us on our social networks, or if you have any questions or suggestions you can contact us on them (Twitter, Instagram).

Coinbase and Base network

Coinbase – the largest crypto exchange

Coinbase is one of the largest and most popular crypto exchanges in the world. This 2024. In 2018, the exchange became crucial for institutional investors, providing custody and other services for Spot Bitcoin ETFs in the US, which further strengthened its position in the market. With an impressive revenue of $3.1 billion in 2023. In 2018, Coinbase showed that they are operating successfully regardless of the bad year in the crypto world, and they are additionally supported by the realized profit of 273.4 million dollars in the last quarter of the same year. This success confirms to us that cryptocurrencies and their vision will live in the future, and Coinbase’s ability to adapt to the market, considering that they have been successfully operating since 2012. years. As we have already said, probably the biggest advantage over other crypto exchanges is given by the newly created spot bitcoin ETFs, which have just chosen coinbase as the bitcoin holder for these same ETFs. We can expect this to further increase Coinbase’s earnings in 2024, and solidify the exchange as an industry leader.

Source: cointelegraph

Business

Coinbase operates as a remote company and does not have a physical headquarters. As part of its filing with the SEC, the company reported 43 million verified users, 7,000 institutions and 115,000 partners in more than 100 countries. Likewise, Coinbase is publicly known to hold approximately 1 million bitcoins in various wallets, which is definitely an enviable figure. However, of those 1 million, only about 9,000 are actually owned by the company.

Source: cointelegraph

Coinbase launches its network

The Coinbase exchange itself decided on August 9, 2023. take a significant step forward by launching the Base Network, its version of the Ethereum Layer 2 solution. This move will enable the development and implementation of smart contracts, which is essential to modernize and expand the services offered by Coinbase, given that these networks will be fully decentralized. The base network, which uses the Optimism OP Stack (a type of layer 2 network), provides a high level of security, scalability and interoperability, which opens the door to faster transactions and lower costs. Given that Coinbase has already established a network of over 110 million users and more than $80 billion in assets within the network itself, the Base network has apparently successfully attracted even more users to cryptocurrencies. In the long term, this initiative is expected to not only improve user experience but also significantly increase Coinbase’s revenue, given that Coinbase receives a small percentage of each transaction fee on the network itself. This is just another proof of Coinbase’s innovation and commitment to improving its services, which will guarantee them a secure place among the leading companies of the crypto industry in the future.

Source: cointelegraph

Coinbase Shares

Investing in Coinbase shares is one way to invest in this crypto exchange. As a publicly listed company, Coinbase offers investors the opportunity to become a partial owner of the company, thereby potentially making good money if Coinbase’s business expands successfully. Coinbase shares are directly traded on NASDAQ, which has attracted a lot of attention from investors. The positives include the potential for the stock to grow due to the expansion of the crypto market and the innovations that Coinbase is introducing, such as the Base network and various financial products. Also, Coinbase is known for its security and ease of use, which can be attractive to investors. In other words, it is currently very likely that Coinbase will operate with increasing profits in the future, so investing in the shares themselves could pay off many times over. On the other hand, the downsides can include the volatility of the crypto market which directly affects stock performance. Also, increased competition and potential regulatory challenges may pose risks for investors. Investing in Coinbase stock requires an understanding of market trends and potential risks associated with the crypto industry. So this will remain just an idea that needs to be analyzed in detail, because nothing listed is financial advice.

Source: cointelegraph

Conclusion

In today’s blog, we introduced you to Coinbase as one of the leading crypto exchanges, as well as the largest crypto companies. We connected the newly created spot Bitcoin ETFs in the USA with Coinbase’s operations, and briefly introduced you to their Base network. We believe that Coinbase is a truly promising company with huge potential that has so far done a great job of innovation and adaptation to the crypto market. If it continues on the same path in the future, we can expect an increase in income, and thus profits, and an increasing number of Coinbase users, and thus cryptocurrencies. We hope you enjoyed reading today’s blog and learned something new. If you have any questions or suggestions, you can always contact us on our social networks ( Twitter , Instagram ).

Argentina – cryptocurrency country

What are we talking about today?

Argentina is a country that is known for its rich culture, beautiful nature and, for many, for its football. But Argentina is also a country that faces many economic challenges, such as high inflation, an unstable currency and limited access to foreign exchange. In such circumstances, many residents of Argentina have turned to cryptocurrencies as an alternative way of saving, paying and investing. In November 2023. Argentina elected a new president, Javier Milea, who surprised the whole world with his libertarian orientation. Milei is an economist and media star, who advocates for a free market, a smaller role of the state, and therefore also supports cryptocurrencies. He proposed replacing the Argentine peso with the US dollar, abolishing the central bank and reducing the number of ministries, which would reduce government spending and transfer most government jobs to the private sector. How will Milei lead Argentina in the coming period, and what will be his influence on cryptocurrencies in the country? We talk about that and other things in this blog.

Source: cointelegraph

The new president of Argentina

Javier Milei is the new president of Argentina, who is up for election in November 2023. defeated the current president Alberto Fernandez, who led the center-left coalition. Milei is a libertarian by orientation, which means that he is fully in favor of the free market and as little government regulation and interference in economic matters as possible. He believes that the state is the main cause of Argentina’s economic crisis, which has lasted for decades, and that the only solution is a radical reform that will reduce taxes, public spending and debt. Milei is also a critic of the welfare state, which, in his opinion, creates dependence and irresponsibility among citizens. Milei’s views and program are in complete contrast to Argentina, which had a long tradition of populism, interventionism and protectionism. Argentina was one of the richest countries in the world at the beginning of the 20th century. century, but since then it has experienced a series of political and economic crises, which have led to a decline in living standards, poverty and inequality. Argentina was also influenced by different ideologies, from Peronism, which combined nationalism and socialism, to Kirchnerism, which advocated the redistribution of wealth and state control of key sectors. Milei, on the contrary, is an advocate of classical liberalism, which is based on individualism, freedom and the right to property. It will certainly be interesting to observe how this radical change will affect the economic situation in Argentina in the coming years.

Source: cointelegraph

Bitcoin as a currency

Javier Milei made the decision that anything two parties decide to use as a medium of exchange is also a legal medium of exchange, and it was specifically noted that this includes Bitcoin . This decision is part of his plan to reshape Argentina’s economy with an emphasis on freedom, privacy and innovation. Milei believes that Bitcoin offers great advantages such as transactions without the need for intermediaries or regulators, transparency and security, as all transactions are recorded on a public and indelible blockchain, and perhaps most importantly independence and sovereignty, as Bitcoin cannot be banned, confiscated or censored by governments or banks. Likewise, the president hopes that his decision will encourage other countries to do the same, creating a global network of countries that support Bitcoin and the crypto-industry. He believes that this is the way to stimulate economic growth, technological progress and social welfare.

Source: cointelegraph

Stablecoins in Argentina

Stablecoins are cryptocurrencies that are tied to an asset, such as the US dollar, and have a constant value. Many residents of Argentina have turned to stablecoins as an alternative way to save, pay and send money, without the need for third parties such as banks. Stablecoins also provided access to international markets and services, which were otherwise limited or unavailable because no one in the world accepted the Argentine peso. According to Bitso, one of the leading crypto-platforms in Latin America, 60% of crypto-transactions in Argentina were in dollars or stablecoins, such as USDT and USDC. These stablecoins were more in demand than Bitcoin, which is usually the most popular cryptocurrency. The reason for this is that Argentinians were looking for security and stability, not speculation and risk, that is, investments. The new changes made by President Milei, which support cryptocurrencies as a legal medium of exchange, will further improve the situation for all of Argentina. Stablecoins will become even more accessible and accepted, both by individuals and by companies and institutions.

Source: cointelegraph

Conclusion

In today’s blog, we commented on the recent political and above all economic changes in Argentina. A country that has recently elected a new president who has a completely different view of the economy than the rest of the world. He advocates the idea from which Bitcoin was born, so it will be interesting to observe how Bitcoin will behave in Argentina, where until now the use of cryptocurrencies was popular initially due to high inflation, but also due to other unfavorable economic reasons. We hope you enjoyed reading today’s blog, and that you learned something new, and if you have any questions or comments, you can always contact us on our social networks ( Instagram , Twitter ).

Ethereum is becoming centralized

What is happening with Ethereum?

Ethereum creator Vitalik Buterin has published a new roadmap (a proposal for the future of Ethereum) in which he proposes to reduce the network load associated with a high number of validators. The number of validators is currently approximately 895,000. This large number enables decentralization and gives ordinary individuals the opportunity to participate in staking, but it burdens the network due to the huge number of signatures it has to process. According to Buterin, the workload and technical complexity are currently too high and need to be addressed. Buterin claims that the current signature collection system processes approximately 28,000 signatures per slot (12 seconds), creating complexity and not achieving the ultimate goal of as many transactions as possible for as little cost as possible.

Source: cointelegraph

What are Ethereum slots?

A slot is the name for a unit of time on the Ethereum network. A time period of 12 seconds is called a slot and is given for the network to choose a random validator to propose a block. Vitalik believes that reducing it to 8,192 signatures per slot (instead of the current 28,000) would reduce the technical complexity, and that the price of transaction fees would be drastically reduced, thereby enabling even greater acceptance and use of Ethereum on a global level.

Source: cointelegraph

Staking pools – ETH becomes centralized (option 1)

Ethereum is currently one of the most popular and innovative platforms for smart contracts and decentralized applications. However, its future may not be as decentralized as expected. Recently, Vitalik Buterin proposed three possible ways to increase the number of transactions per second and reduce transaction fees. One of these possibilities is to increase the minimum amount of ETH required for staking to 4096 ETH, and also the number of validators would be limited to only 4096. Given that staking would become drastically more expensive, and the number of validators would be limited, the centralization of Ethereum would inevitably occur. This would mean that only the richest and most powerful players on the network would be able to participate in maintaining the safety and stability of Ethereum, while small and average stakers would be forced to join decentralized staking pools or give up staking altogether. This could lead to more centralization and inequality on Ethereum, which would contradict its initial vision of an open platform for Web 3.0.

Source: cointelegraph

Two-layer staking (option 2)

Alternatively, Buterin proposed the introduction of a two-layer staking system, where validators would be divided into a “heavy” layer and a “light” layer. The heavy layer would be composed of validators with a minimum deposit of 4096 ETH, who would be responsible for the basic consensus mechanisms. A lightweight layer would include validators with no minimum deposit, which would contribute to the overall security of the network without the same level of direct participation in consensus, this option is slightly better, but will still contribute to the centralization of Ethereum in the long run.

Source: cointelegraph

Rotating participation (option 3)

As a last option, Buterin proposed a rotating participation approach, where for each slot a subset of 4096 validators would be randomly selected to participate in the consensus. This would ensure a diverse and dynamic set of validators while maintaining the efficiency, scalability and most importantly the decentralization of the network.

Source: cointelegraph

Conclusion

The proposed changes presented by Vitalik Buterin will drastically change the structure of Ethereum. With Ethereum taking a prominent position as the second largest cryptocurrency, these changes could reshape the Ethereum network itself and potentially impact the broader context of the crypto industry. It is important that these changes that occur in order to increase the overall efficiency of the Ethereum network take place while taking care of maintaining the decentralization of the network, and not that the network is only centralized and thereby achieve greater efficiency temporarily. We hope that you enjoyed today’s blog and that you learned something new. If you have any questions or suggestions, feel free to contact us on our social networks ( Twitter , Instagram ).

The first spot Bitcoin ETF in the US

US Spot Bitcoin ETF Approved

After more than ten years of waiting and rejection, the US Securities and Exchange Commission (SEC) has finally approved the first spot Bitcoin ETF (exchange-traded fund). In fact, the SEC is 10th. January 2024 approved as many as 11 spot Bitcoin ETFs, and gave investors more options for investing in the most popular cryptocurrency. Spot Bitcoin ETFs are funds that invest directly in bitcoin, and not in derivatives that follow the price of bitcoin. If you are interested in more detail about what a Bitcoin ETF is, you can read about it on one of our previous blogs . The decision of the SEC was made by voting, where 5 members were in favor of approval and 3 members were against. With this, Bitcoin became even more easily accessible to the largest capital market in the world, and turned another new page in its history.

Source: cointelegraph

How much is this ETF trading?

In the first three days of trading, spot Bitcoin ETFs generated a total volume of around $10 billion. However, not all spot Bitcoin ETFs are equally popular. Grayscale Bitcoin Trust (GBTC) dominated the competition, with more than half of the total trading volume in the first days. This is most likely a temporary phenomenon, as some investors are selling their GBTC shares in order to buy newly available alternatives. Other leading players in terms of trading volume were BlackRock (IBIT) with more than $1 billion and Fidelity (FBTC) with more than $700 million.

Source: cointelegraph

How many bitcoins have the funds accumulated?

The Spot Bitcoin ETFs collectively own about 650,000 bitcoins, representing approximately 3% of the maximum supply of 21 million bitcoins. However, most of these bitcoins have previously belonged to the Grayscale Bitcoin Trust (GBTC). GBTC currently holds about 581,000 bitcoins, which is almost 90% of the total amount of bitcoins held by ETFs, or funds that manage them. Other spot Bitcoin ETFs have significantly fewer bitcoins in their reserves. For example, BlackRock’s ETF (IBIT) has about 25,000, while Fidelity ETF (FBTC) has about 20,000 bitcoins. Grayscale’s share is expected to decrease, given the fact that other ETF providers have offered much more favorable terms for holding bitcoins with them. Likewise, in the long term, we believe that the total amount of bitcoins owned by these ETFs, or funds, will increase drastically, but it is still impressive that in just one week, more than 85,000 bitcoins have been accumulated.

Source: cointelegraph

How much will individual ETFs earn?

All these funds charge a commission for holding bitcoins in their reserves. This commission is deducted from the value of the fund and represents a cost for investors. However, given that there is a lot of competition among issuers of spot Bitcoin ETFs, some of them have temporarily reduced or eliminated their commissions to attract more investors, but generally these commissions will be minimal. For example, Fidelity will charge 0% until the 31st. July 2024 year, and then will increase the commission to 0.25%. Similarly, Invesco will charge 0% for the first six months or the first $5 billion in assets, then increase the fee to 0.59%. Other spot Bitcoin ETFs have different commissions, ranging from 0.20% for iShares Bitcoin Trust (IBIT), which is the cheapest, to 1.50% for Grayscale Bitcoin Trust (GBTC). Fees at these new funds are significantly lower than those of others, such as Grayscale’s trusts for other cryptocurrencies that charge between 2% and 3%, or bitcoin futures ETFs that charge around 0.95%.

Source: cointelegraph

Bitcoin in a wallet or in an ETF

One of the key questions raised after the approval of these ETFs is whether it is better to hold Bitcoin in your digital wallet or in an ETF. Many crypto enthusiasts will say that it is better to have Bitcoin in your wallet, because it means that you have full control over your money, rather than handing it over to a third party. Bitcoin is a decentralized currency that does not depend on any institution or government. This means that there is no one who can freeze, seize or censor your transactions. Also, by having Bitcoin in your wallet, you can take advantage of all the advantages offered by the crypto ecosystem, such as speed, transparency, privacy and innovation. On the other hand, investing in a Bitcoin ETF has its drawbacks. First, you don’t own the actual Bitcoin, just a portion of the fund that tracks it. This means that you are exposed to the risk of the fund failing, being hacked or its rules being changed. Second, you pay high fund management fees, which reduce your earnings. Third, you are limited to market hours and regulations that may affect your ability to trade. Fourth, you lose some of the anonymity and security that Bitcoin provides, because you have to reveal your identity and entrust your money to someone else. Therefore, if you are a crypto enthusiast who values ​​freedom, independence and innovation, it is better to keep Bitcoin in your wallet than in an ETF. On the other hand, if you are afraid of losing your money, losing your keys or access to it, and prefer to trust a third party such as one of the funds that hold the ETF, then an ETF may be a better option for you.

Source: cointelegraph

Conclusion

After more than ten years of waiting, we got not only one but eleven Spot Bitcoin ETFs in the USA, the country with the largest capital market, and thus the greatest potential for investing in Bitcoin. In today’s blog, we showed you the results of trading these ETFs in the first week, and it will definitely be interesting to see how the whole situation with ETFs will develop further. We also answered the question, should you keep real bitcoin in your wallet or buy it through ETFs. We hope you enjoyed today’s blog and learned something new, if you have any questions you can always contact us on our social networks ( Twitter , Instagram ).

The latest news about the Spot Bitcoin ETF

What's been going on in the past months?

In recent months, the SEC has delayed a decision on several applications for spot Bitcoin ETFs, which would allow investors to buy and sell Bitcoin at the current market price. Among those claims are those submitted by BlackRock, Ark Invest, Grayscale, WisdomTree, Invesco Galaxy, VanEck, Bitwise and Valkyrie Digital Assets. The SEC has a total of 240 days from the start of the application review to make a final decision on approval or refusal, so we can expect more delays on their part, and the next applications awaiting SEC decisions are those that have deadlines in January 2024. The chances of the SEC approving a spot Bitcoin ETF are still uncertain, as regulators have concerns about possible fraud and manipulation in the cryptocurrency market. However, some analysts and experts feel that BlackRock could have an advantage over other applicants, as it is the world’s largest asset manager and a leading company in the ETFs industry. Also, BlackRock suggested the so-called “surveillance-sharing agreement” with Coinbase, which would help track trading and customer identities. This could allay some of the SEC’s fears and increase the chances of approval. Therefore, BlackRock’s ETF is most likely the first to get permission from the SEC, if the regulator changes its attitude towardspot Bitcoin ETFs. We all know that this approval would have a positive impact on the price, primarily bitcoin, and then other cryptocurrencies, so we hope that the approval will come soon. There is of course also the possibility that this approval coincides with the next Bitcoin halving, and this combination would certainly have a very positive effect on the price.

Source: cointelegraph

We also get Ethereum Spot ETF

After the SEC approved several ETFs that track the price of bitcoin and ethereum based on future contracts, many investors are awaiting the approval of ETFs that track the price of cryptocurrencies based on the current market, the so-called ethereum market. spot ETFs. Among them is BlackRock, the world’s largest asset manager, who recently decided to file an application for an Ethereum Spot ETF. BlackRock has already filed an application for the Bitcoin Spot ETF, which is still awaiting the SEC3’s decision. BlackRock’s move was interpreted as confirmation that the SEC would soon approve the bitcoin ETF spot, as it would open the door for approval of other spot crypto ETFs, including Ethereum. Many analysts and experts believe that BlackRock has an advantage over other applicants, as it has extensive experience and reputation in the ETF industry, as well as a collaboration with Coinbase, america’s largest crypto exchange, which would guard ethereum for the ETF. If the SEC approves BlackRock’s Ethereum Spot ETF, it could have a major impact on the price of ethereum, but also all applications on ethereum, especially in the field of decentralized finance (DeFi). Ethereum is the second largest cryptocurrency by market capitalization, which at the time of writing this blog was about $ 240 billion, and the price of ethereum itself rose by about 10% after the news of BlackRock’s application, reaching more than $ 2,100 per ethereum.

Source: cointelegraph

A blend of the traditional world of finance and cryptocurrencies

Cryptocurrency-tracking ETFs, especially Bitcoin and Ethereum, are attracting increasing attention and demand, as they offer an easy, secure and regulated way to invest in this sector. Many investors who do not use cryptocurrencies, or are not technically equipped or do not know blockchain well enough to be able to use it, see ETFs as an opportunity to participate in a growing cryptocurrency market without the need to own, store or manage cryptocurrencies. The approval of crypto ETFs by regulators, especially the SEC in the US, is expected to lead to a rise in the price of cryptocurrencies, as it will increase demand, liquidity and confidence in this sector. Also, it could stimulate development and innovation in the crypto industry, as it would attract new players, partners and users . Therefore, crypto ETFs represent a blend of traditional finance and cryptocurrencies, which could have a major impact on the future of both sectors.

Source: cointelegraph

Lack of crypto ETFs

While crypto ETFs offer many advantages for investors and the cryptocurrency market, they also have some disadvantages that can deter some cryptocurrency lovers from using them. One major drawback is that crypto ETFs are not in line with the decentralization and independence philosophy behind cryptocurrencies, as they require trust in third parties, such as ETF issuers, exchanges and regulators. This means that investors who buy crypto ETFs do not own real cryptocurrencies, but only a stake in the fund that accompanies them. Investors in the same cannot control their cryptocurrencies, nor have access to their private keys, which are unique digital signatures that allow cryptocurrencies to be sent and received. All the big believers in Bitcoin and cryptocurrencies are actually advocating storing cryptocurrencies on their own wallet rather than giving access to the same other people that is, in this case, whoever manages the ETF. This is because they believe this is the only way to ensure security, privacy and independence, and to avoid potential risks such as hacking, theft, censorship, freezing or confiscation of funds by third parties.

Source: cointelegraph

Conclusion

In this blog, we wrote about spot Bitcoin ETFs, which are one of the most anticipated and controversial topics in the crypto world. The SEC has already delayed several times the decision of the application for spot Bitcoin ETFs, filed by various issuers, among them BlackRock, the world’s largest asset manager. BlackRock has also filed an application for an Ethereum Spot ETF, which would track the price of the second largest cryptocurrency. Many feel that BlackRock has an advantage over the others, as it has extensive experience and reputation in the ETF industry, as well as cooperation with Coinbase. If the SEC approves the spot crypto ETFs, it could have a major impact on the cryptocurrency market and attract new investors to this sector. However, spot crypto ETFs also have some drawbacks, such as a higher risk of volatility, lack of decentralization and independence, and a possible negative impact on demand for real cryptocurrencies. We hope you enjoyed reading today’s blog, we hope you have learned something new, and we would like you to share your opinion on crypto spot ETFs with us on our social networks (Twitter, Instagram).

The latest news about FTX

What's been going on in the past months?

The trial against FTX, formerly the second largest crypto exchange in the world, began in New York on March 3. October 2023 years. The founder and former DIRECTOR of FTX, Sam Bankman-Fried, has been charged with multiple felonies, including fraud, money laundering, conspiracy and violations of political finance laws. Prosecutors allege Bankman-Fried stole billions of dollars from his clients, investors and creditors, and used some of that money to bribe and donate to politicians. Bankman-Fried was arrested in the Bahamas in December 2022. Ftx went bankrupt and left a debt of about eight billion dollars. In the past three months, the court has issued several decisions that have influenced the course of the trial. In late July, prosecutors dropped charges of violating election funding rules, after the Bahamas confirmed they would not extradite him to the U.S. over that charge. In doing so, the trial lost one political dimension, but also facilitated the extradition of the SBF. In late August, the court granted a request by Terraform Labs, one of ftx’s lenders, to issue subpoenas to FTX and FTX. U.S., two affiliated companies, to gather evidence for his defense. Terraform Labs is one of the sides launched by the SEC against ftx for allegedinvestor fraud. In early September, the court rejected a request by Bankman-Fried’s legal team to postpone the trial due to the coronavirus pandemic, and confirmed the trial start date for March 3rd. October. Given the gravity of the allegations and the magnitude of the fraud, the trial against FTX is expected to take several months, if not years. The SBF has pleaded not guilty to all charges, and will fight for his innocence. He also faces a second indictment, which will begin next year, relating to bribery, conspiracy and bank fraud of international proportions. The fate of the SBF, as well as its former clients, that is, investors, will depend on the outcome of this court process, which is already known as one of the largest cases of financial fraud in American history.

Source: cointelegraph

Sam Bankman Fried in prison

After being found guilty of all counts, Sam Bankman Fried ended up in jail, where he is awaiting sentencing. The former FTX CEO has been charged with 11 felonies, each carrying a maximum sentence of 20 years in prison, except for one that carries 5 years. That means Bankman Fried could get up to 115 years in prison, though a judge is unlikely to impose such a sentence. However, the SBF is expected to receive a sentence that will last for decades, given the gravity and extent of its scams. His trial lasted a month and the jury reached a verdict after less than five hours of deliberation. Sam Bankman Fried has been in jail since December 2022. He was arrested in the Bahamas, where he tried to flee from U.S. authorities.

Source: cointelegraph

What will happen to the user's funds?

Ftx beneficiaries’ funds are largely compromised due to a scam committed by Sam Bankman-Fried. According to a Reuters report, after the collapse of FTX, allegedly ten billion dollars worth of user funds were secretly transferred to Alameda Research, a trading company co-founded by Bankman-Fried. This means that FTX has a shortage of user funds and cannot pay out all of its users, of which there were more than a million. The plan to return funds to FTX users is not yet clear, as FTX has filed for bankruptcy protection in the U.S. This means that FTX will try to restructure its debts and continue operations, rather than liquidating and selling off its assets. However, it also means that the reimbursement process will be complex and time-consuming, as it will involve courts, bankruptcy trustees, regulatory agencies and various other complications. Bankruptcy lawyers warn that extracting funds from ftx could take years or even decades. The likelihood that FTX users will get their funds back depends on a number of factors, such as the outcome of the trial against Bankman-Fried, the condition and location of ftx’s assets, the priority and claims of various creditors, bankruptcy costs and legal disputes. Some FTX users have already filed lawsuits against FTX and Bankman-Fried, seeking damages and refunds. However, there is no guarantee that these lawsuits will succeed or that there will be sufficient funds to pay all beneficiaries. FTX users who have traded crypto for crypto may not see the distribution for years, while those who have bought crypto with cash have a slightly higher chance of refunding.

Source: cointelegraph

The importance of keeping cryptocurrencies on your own wallet

One of the most important lessons we can learn from the FTX case is the importance of keeping cryptocurrencies on our own wallet. When you use a crypto exchange, you don’t actually own your cryptocurrencies, but entrust them to a third party, which can be unreliable, insecure, or even fraudulent. This means that you are at risk of losing your money if the exchange crashes, is hacked, robbed or regulated. This happened to many FTX users, who ran out of their funds after FTX went bankrupt and charged with fraud. Therefore, we always recommend that you keep your money on your own wallet, so that no one but you has access to the funds. Your own wallet is an app or device that allows you to send, receive and store cryptocurrencies in a secure and decentralized way. There are different types of wallets, such as software, hardware, paper or mobile wallets, but they all have one thing in common: words for recovery. Words for recovery are a series of 12 or 24 words that serve as a key to your wallet. If you lose or damage your wallet, you can recover it using those words. However, if you lose or forget those words, you won’t be able to access your money. That is why it is very important that wallet recovery words are always physically written down by users on a piece of paper and kept in a safe place. You should not keep these words on your computer, mobile phone or e-mail, as this increases the risk of hacking, theft or loss. Also, you should never share those words with anyone, because it means giving control of your money to another person. If someone is looking for your words to recover, it’s probably a scam. Keeping cryptocurrencies on your own wallet gives you full responsibility, but also full freedom over your money. You don’t have to rely on exchange offices, which can be unsafe, expensive, slow, or unavailable. You can manage your transactions, security and privacy yourself. This is in line with the idea of cryptocurrencies, which are designed to be decentralized, transparent and resistant to censorship. That is why you should not keep money on exchange offices, just because of cases such as FTX.

Source: cointelegraph

Conclusion

We hope you have learned something new about recent developments related to the demise of the crypto exchange FTX. We all hope that the funds will be returned to users, but what we have definitely learned is that cryptocurrencies should be kept on their own wallet, where only you have access to the funds, and not entrusted to third parties such as crypto exchanges. If you have any questions feel free to ask them on our social networks (Twitter, Instagram).