El Salvador Doubles Down on Bitcoin π
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In a series of strategic moves that underline its commitment to cryptocurrency, El Salvador continues to deepen its engagement with the digital currency market, particularly Bitcoin ($BTC). The country's president, Nayib Bukele, recently announced El Salvador's plan to buy one Bitcoin every day, aiming to continue this practice until it becomes unaffordable with fiat currencies. This initiative has pushed the nation's Bitcoin holdings to a substantial total of 5,690 BTC, valued at approximately $397 million.
In tandem with its cryptocurrency endeavors, El Salvador has made a bold statement in the global investment landscape by eliminating income tax for international investments and money transfers. This tax cut, from 30% to 0%, is designed to attract foreign investors and boost economic growth.
The country's commitment to Bitcoin was further highlighted this week as it transferred more than 5,000 BTC into a cold wallet. President Bukele disclosed that a significant portion of these assets, amounting to $400 million worth of Bitcoin, has been moved to an offline device stored in a physical vault within the nation's territory. This move to secure the digital assets in a "Bitcoin piggy bank" marks a significant step in El Salvador's financial strategy, offering a higher level of security and signaling strong faith in the cryptocurrency's future.
The decision to make the transfer to a cold wallet came after El Salvador's Bitcoin treasury swelled unexpectedly, nearly doubling its previously known stash. The country had been acquiring Bitcoin through various means, including daily purchases, sales of passports, currency conversions for businesses, mining, and government services. This approach has dramatically increased El Salvador's Bitcoin holdings, which were believed to be less than 3,000 BTC ($205 million) before this revelation.
El Salvador's pioneering stance on Bitcoin began in September 2021 when it became the first country to adopt the digital currency as legal tender. Since then, Bitcoin's value has seen significant fluctuations, recently hitting a record high of $73,800. The country's ongoing daily Bitcoin purchases and the creation of a tax-free crypto haven powered by geothermal energy from a volcano showcase its innovative approach to harnessing cryptocurrency for economic development.
President Bukele's vision extends beyond merely accumulating Bitcoin; he envisions transforming El Salvador into a wealthy nation through strategic investments and initiatives related to the digital currency. Despite criticisms and warnings from international bodies like the International Monetary Fund (IMF), El Salvador's commitment to its Bitcoin strategy remains steadfast, with the nation showing no signs of divesting from the cryptocurrency.
El Salvador's bold foray into the world of Bitcoin and its efforts to create a conducive environment for cryptocurrency investments reflect a significant shift in how nations perceive and engage with digital currencies. As the country continues its Bitcoin acquisition program and enhances its cryptocurrency infrastructure, it sets a precedent for others to follow, potentially reshaping the global financial landscape in the process.
This Week By the Numbers π
Quick Facts:
President Biden states "we have the lowest inflation rates of any country in America" Β π§
Bitcoin surpasses the Swiss Franc, becoming the 13th largest currency globally
Bitcoin surpasses gold in investor portfolio allocations, according to JPMorgan
5,000 blocks remain until Bitcoin halving
BTC's price fluctuates, sinking below $65k before a rebound
BTC experiences a 9% drop in a correction, leading to $700m in liquidations
MicroStrategy plans to raise $500m to purchase more BTC
The funding rate on cryptocurrency futures exchanges declines by 77% from its recent peak
AI coin values increase ahead of Nvidia's conference on Monday
BTC and Nvidia's correlation reaches new highs
Grayscale's ETH discount doubles within a week
VanEck suggests an ETH ETF could surpass BTC in size
Franklin Templeton publishes a paper on memecoins
Solana overtakes BNB, becoming the 4th largest cryptocurrency by market value
Solana achieves its highest daily DEX volume, surpassing $3.5 billion
Elon Musk Hints Dogecoin Payment For Teslas βAt Some Pointβ
Top Stories ποΈ
Craig Wright Is Not Bitcoin Creator Satoshi Nakamoto, Judge Declares
An Australian computer scientist who claims he inventedΒ bitcoinΒ is not βSatoshi Nakamoto,β the pseudonymous inventor of the cryptocurrency, a judge at Londonβs High Court ruled on Thursday. Craig Wright has long claimed to have been the author of a 2008 white paper, the foundational text ofΒ bitcoin, published under the pseudonym. The Crypto Open Patent Alliance (COPA)Β took Wright to courtΒ to stop him from suingΒ bitcoinΒ developers, asking for a ruling that Wright was not Satoshi. Judge James Mellor said at the end of closing arguments on Thursday that the evidenceΒ WrightΒ was not Satoshi was βoverwhelming.β βDrΒ WrightΒ is not the author of the Bitcoin white paper,β Mellor said. βDrΒ WrightΒ is not the person who adopted or operated under the pseudonym Satoshi Nakamoto in the period 2008 to 2011.β COPA β whose members include Twitter founder Jack Dorseyβs payments firm BlockΒ SQ.NΒ β said the ruling was βa win for developers, for the entire open source community and for the truth.β
Berachain raises $69 million in latest funding round
Berachain, a bear-themed DeFi project run by pseudonymous co-founders, is expected to reach unicorn status after raising over $69 million in a fund round led by Brevan Howard Digital and Framework Ventures. Berachainβs projected value stands at $1.5 billion following the latest funding round through selling tokens, according to the Bloomberg report.Β The Cosmos-based, EVM-compatible Berachain focuses on DeFi trading, lending and borrowing services with its tri-token system. The platform consists of native gas token bera, honey stablecoin and βnon-transferableβ governance token BGT, the project said. With the mechanism, users can stake bera to earn BGT and receive rewards in honey for governance participation. Last year, Berachain raised $42 million in a private token round led by Polychain Capital, with participants including Hack VC, Shima Capital, Robot Ventures and Goldentree Asset Management.
Binance Labs Goes Solo: $10 Billion Arm Spins Out From Binance
In a calculated maneuver echoing through the cryptocurrency realm, Binance Labs, the $10 billion venture capital arm of leading exchange Binance, has opted for autonomy. The decision to detach Binance Labs from its parent company signals a fundamental change in direction, in line with the vision of newly appointed CEO Richard Teng. Insights from the firmβs Investment Director, Alex Odagiu, reveal that the venture capital arm now operates independently, with separate contracts for its personnel. This strategic restructuring mirrors the operational model seen in Binance-backed projects like the BNB Chain, enhancing efficiency and adaptability. The decision to sever ties with the wider Binance group comes amidst heightened regulatory scrutiny and significant legal agreements with US agencies. Observers within the crypto industry perceive this move as a nuanced response to regulatory challenges. Binance Labs is fortifying the position of the venture capital arm.
Putin set to sweep to fifth term as Russians head to polls
Russians are heading to the polls for aΒ presidential election that is set to hand Vladimir Putin a fifth term in power as he faces opponents carefully curated by the KremlinΒ andΒ who pose no real threat to his legitimacy. Voting started on Friday and will continue until Sunday across the countryβs 11 time zones β from the far eastern regions near Alaska to the western exclave of KaliningradΒ on the Baltic CoastΒ β and itsΒ 88 federal subjects, includingΒ parts of occupied Ukraine illegally annexed by RussiaΒ after it launched its full-scale invasion more than two years ago. With most opposition candidates eitherΒ dead,Β jailed,Β exiled,Β barred from runningΒ or simply token figures, a victory for Putin, whoΒ has in effectΒ been Russiaβs head of stateΒ since before the turn of the century, is all but guaranteed. Putinβs reelection would extend his rule until at least 2030. FollowingΒ constitutional changesΒ in 2020, heΒ wouldΒ then be able to run again and potentially stay in power until 2036, which would see himΒ secure his place asΒ Russiaβs longest-serving rulerΒ since Soviet dictator Joseph Stalin.
US Cancer Deaths Spiked In 2021 And 2022 In "Large Excess Over Trend"
Cancer deaths in the United States spiked in 2021 and 2022 among 15-44 year-olds "in large excess over trend," marking jumps of 5.6% and 7.9% respectively vs. a rise of 1.7% in 2020, according to a new preprint study from deep-dive research firm, Phinance Technologies. The report, which relies on data from the CDC, paints a troubling picture. "We show a rise in excess mortality from neoplasms reported as underlying cause of death, which started in 2020 (1.7%) and accelerated substantially in 2021 (5.6%) and 2022 (7.9%). The increase in excess mortality in both 2021 (Z-score of 11.8) and 2022 (Z-score of 16.5) are highly statistically significant (extreme events)," according to the authors. That said, co-author, David Wiseman, PhD (who has 86 publications to his name), leaves the cause an open question - suggesting it could either be a "novel phenomenon," Covid-19, or the Covid-19 vaccine.
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About the Author: Tatiana Koffman, GP @ Moonwalker Capital
Hi there and thanks for reading! If you stumble upon my newsletter, you will notice that I write about money, economics, and technology. I hold a JD/MBA and spent my career in Capital Markets working across Mergers & Acquisitions, Derivatives, Venture Capital, and Cryptocurrencies. I write to make financial topics more accessible and create equal opportunity for the next generation of investors. I have personally invested in 20+ companies and funds (πΒ my portfolio).