Wednesday, March 18, 2020

BitMEX: Coronavirus is Bitcoin's "biggest test" / Hawaii's digital currency sandbox / Buterin's "approximate view" on Eth2.0

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Market Watch: Mid-week trading is down slightly today. The U.K.'s Chancellor of the Exchequer Rishi Sunak's emergency financial cash measures to help businesses amid the coronavirus haven't done much to boost markets. This could be having an impact on the crypto market, as it remains down today.

  • Bitcoin: $5,183 (⬇️ 1.91%) // $94.7 billion market cap.
  • Ethereum: $113 (⬇️ 3.16%) // $12.4 billion market cap.
  • XRP: $0.143 (⬇️ 3.01%) // 6.3 billion market cap.
  • Tether: $1.00 (⬆️ 0.35%) // $4.6 billion market cap.
  • Top 100 Winner: WAX: $0.041 (⬆️ 11.09%) // $44 million market cap. 
  • Top 100 Loser: Terra: $0.123 (⬇️ 10.60%) // $35 million market cap. 

Prices are as of 12:30 p.m. ET.

1. Crypto exchange BitMEX has published a report stating that the coronavirus pandemic will be Bitcoin's biggest test. The report, titled Inflation is Coming, states that the virus will "mark a significant economic regime change, from monetary policy to central bank funded fiscal expansion." It goes on to state that it is establishing itself as one of the great stock market crashes, alongside that of the 2008 financial crash, the 2000 dotcom bubble, and the Asian financial crisis in 1997. According to the report, there will one clear winner under current conditions: inflation. Turning to Bitcoin, this could be a chance for it to prove itself despite pointing out that it has dropped in value by 53 percent this year. The report said: "In our view, in this changed economic regime, where the economy and financial markets are set loose, with no significant anchor at all, not even inflation targeting, it could be the biggest opportunity Bitcoin has seen, in its short lifetime." The report from the exchange comes after a report from its CEO, Arthur Hayes, who said last week that Bitcoin would likely hit lower levels of up to $6,000 and could "enjoy a nice run back through $10,000 towards $20,000 by year end." -BITMEX

2. Hawaii has launched its first digital currency sandbox that doesn't require digital currency issuers to obtain a state money transmitter license for two years. In a statement issued yesterday, it states that the Digital Currency Innovation Lab is a partnership that's driven between the Department of Commerce and Consumer Affairs, the Division of Financial Institutions (DFI) and the Hawaii Technology Development Corporation (HTDC). Iris Ikeda, commissioner of Financial Institutions, said: "DFI is leveraging its statutory authority to provide an innovative way to introduce digital currency issuers into the State of Hawaii, while ensuring the safety of our consumers," adding that no action will be taken against a company conducting what it considers to be unlicensed money transmission activity. The aim of the sandbox is to achieve a comprehensive look into digital currency, which will be used to guide legislation and to help determine the future of the industry in Hawaii. This is a step away from its previous stance regarding crypto. In 2017, Coinbase posted a blog arguing that bad policy was harming its customers in the state. At the time, it was noted that the DFI required platforms such as Coinbase to hold just as much fiat as their clients held crypto, known as a double-reserve. Coinbase argued that this was "obviously untenable." The Digital Currency Innovation Lab will start accepting applications from March 17, 2020, to May 1, 2020, online. -COIN DESK

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3. Here's what Ethereum's Vitalik Buterin thinks Eth2.0 will look like in five to 10 years.

Originally expected to launch in January 2020, the release date for Ethereum 2.0 has been penciled in by developers for July of this year. Is that still achievable?

Subscribe below to find out where Vitalik Buterin thinks they have achieved so far, and where he thinks development is heading.

SUBSCRIBE NOW TO FIND OUT MORE

4. Two Canadian nationals arrested for Bitcoin fraud.

Find out what sentencing was handed down to two Canadian brothers, who scammed a victim out of 23.2 Bitcoin last year.

Subscribe below to read the full story and others in this newsletter.

SUBSCRIBE NOW TO FIND OUT MORE

5. Crypto custodian BitGo is offering excess insurance coverage for cold storage wallets only, on top of its existing $100 million policy.

BitGo is going one step further to ensuring clients' crypto assets remain safe in cold storage wallets. This story is available to our premium subscribers only.

SUBSCRIBE NOW TO FIND OUT MORE

6. Bitcoin and its fight with the most powerful institution.

Since Bitcoin's creation 11 years ago it has faced many battles. It's latest one is against the rise in interest from central banks. No central bank has achieved a digital currency yet; however, some, such as China, claim to be ready to launch theirs. Will CBDC's help or hinder Bitcoin's progress?

Subscribe to find out what people think and the fight it has on its hands.

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7. The lower house of India's parliament, the Lok Sabha, has submitted a filing that reveals an investigation into "fraudulent practices by bit coin companies." Indian politician Mohammed Faizal, of the Nationalist Congress Party, asked three questions regarding crypto companies in India. One of the questions focused on whether the government was aware of an increase in the number of reports made of "cheating and fraudulent bit coin companies." He then asked if so, were they violating rules laid out by the Corporate Affairs Ministry by failing to fill in their yearly balance sheets? His third question asked for the details and the action that has been taken so far. In response, politician Anurag Thakur said that the companies Faizal hinted at "are not defined under the Companies Act." He added that there are only two companies operating with Bitcoin that have operated with the Ministry of Corporate Affairs' Registrar of Companies: ZEB IT Services Private Limited and Unocoin Technologies Private Limited. News of this comes at a time when India's Supreme Court reversed a crypto ban ruling applied by the Reserve Bank of India (RBI) earlier this month, which has subsequently seen several platforms resume in the country. -GOVERNMENT OF INDIA

8. Find out why Tim Draper, billionaire and Bitcoin bull, is optimistic of Bitcoin.

Venture capitalist Tim Draper is a well-known figure in the crypto space, so much so, that in November he made a bullish call for Bitcoin, stating that it will reach $250,000 in 2022 or 2023. The reason? He believes that "Bitcoin payment processors are really going to open the floodgates." Some of these payment processors, in his opinion, include the Lightning Network and OpenNode.

Subscribe now to catch up with Tim Draper's views on Bitcoin and what he thinks will help the market recover from its current economic crisis.

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9. Coronavirus doctor's interview on the Ethereum network.

China's censorship makes it difficult for citizens to uncover fact from fiction. In this instance, though, a journalist claims to have posted an interview with a coronavirus doctor on the blockchain.

Subscribe to find out more about the interview.

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10. Bitcoin halving is "grossly overrated."

Trader Peter Brandt has given his fair share of crypto predictions in the past. Turning his attention to the Bitcoin halving, he unashamedly gives his opinion on it.

Subscribe to find out more about what he thinks.

SUBSCRIBE NOW TO FIND OUT MORE

This newsletter was written and curated by Rebecca Campbell. She has been writing and reporting on various industries for the past 10 years, more specifically tech in the last three. Connect with her on Twitter.

Edited by Beth Duckett, staff writer at Inside.

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