 QUOTE OF THE DAY  |
| "Any sufficiently advanced technology is equivalent to magic." - Arthur Clarke |
Happy Thursday! Last day to enter the giveaway to win a copy of @cointradernik new book An Altcoin Trader's Handbook! Simply follow the steps in the 'Giveaway' section below to enter! Winners will be announced tomorrow.
Cheers,
Blockchain Brew Team
| COIN | PRICE | 24H |
|
| BTC | $7,443.52 | +0.1% |
|
| ETH | $481.52 | -3.19% |
|
| XRP | $0.490557 | -4.22% |
|
| BCH | $838.179 | -3.52% |
|
| EOS | $8.68285 | -2.47% |
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*Information as of 9:30 AM EST
CEO of Digital Currency Group Claims BlackRock CEO is Wrong About Crypto's Lack of Institutional Interest
INSTITUTIONAL INTEREST
- Yesterday, CEO of Digital Currency Group Barry Silbert had an interview on CNBC to share his thoughts on the current crypto environment
- Earlier this week, though BlackRock was rumored to have been exploring cryptocurrencies, CEO Larry Fink implied there was no institutional interest with zero clients asking for crypto exposure
- Silbert made sure to dismiss Fink's claim during his interview by stating that Grayscale Investments, a crypto-focused subsidiary of Digital Currency Group, raised $250 in capital with 56% flowing in from institutions
Silbert explained his observations regarding cryptocurrency investment among institutional investors:
"A year ago, two years ago, it was almost nonexistent. So, we're starting to see that money come in, but we need custody solutions, and I think what you'll hear from a lot of them is 'We don't want to be first, we want to be second, fast second follower, we don't want to be last."
CALLING THE BOTTOM
- In addition to implying Larry Fink is wrong about institutional interest, Silbert also mentioned that he believes Bitcoin has bottomed for the year
- Silbert reasoned that from a technical perspective "it's starting to look pretty good" and that it is always a bullish sign when Howard Marks, a Chair of the Federal Reserve, says negative things about Bitcoin and the cryptocurrency doesn't drop
Silbert explained that the recent decline is nothing more than the same routine Bitcoin has gone through on every big correction, just on a larger scale:
"I started buying Bitcoin in 2012 when the price was $10. And I've gone through, now, two 80% corrections, and this was like a 65% correction... It's the same old criticisms, and a lot of it is... the uninformed... I think anybody who takes the time to look at what is this asset class, why is it important, why does it have such potential, they come out of it being a believer."
Mastercard Granted Patent for Cryptocurrency Accounts
PATENT
- Mastercard was just granted a patent that allow its customers to have linked fiat and cryptocurrency accounts
- This would be one step closer to being able to use a debit card to spend cryptocurrencies anywhere
The patented is summarized in the filing:
“A method for managing fractional reserves of blockchain currency includes: storing, in a first central account, a fiat amount associated with a fiat currency; storing, in a second central account, a blockchain amount associated with a blockchain currency; storing a plurality of account profiles, each profile including a fiat currency amount, blockchain currency amount, account identifier, and address; receiving a transaction message associated with a payment transaction, the message being formatted based on one or more standards and including a plurality of data elements, including a data element reserved for private use including a specific address and a transaction amount; identifying a specific account profile that includes the specific address included in the data element in the received transaction message; and updating the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data element in the received transaction message.”
MASTERCARD'S VIEW ON CRYPTO
- In the filing, Mastercard recognizes that some prefer cryptocurrencies because of their privacy, but this represents somewhat of a challenge for Mastercard
- Another skepticism Mastercard has about crypto is that it takes time for transactions to confirm, this can be an issue when trying to make payments in a store for example
- Finally, Mastercard is uncertain about individuals and merchants willingness to adopt a new method for transacting, especially when the current method isn’t really broken
MASTER PLAN
- No one really knows what MasterCard’s plan is for cryptocurrencies, but it is obvious they are mulling the idea
- This new patent is just another added to the company’s collection of Blockchain related patents
Seth Eisen, Mastercard’s senior vice president for communications spoke about the company’s patent strategy:
“We’re consistently looking at ways to bring new thinking and new innovations to market to create value for us and our customers and cardholders. Patent applications are part of that process, taking steps to protect the company’s intellectual property, whether or not the idea ever comes to market.”
South Korea Will Subsidize Blockchain Startups
KOREA & CRYPTO
- Korea is seemingly contemplating loosening some of its regulations towards cryptocurrencies
- Earlier this month, the Korean Financial Services Commission publicized that it has no oppositions to cryptocurrencies
- It seems likely that Korea will follow the G20’s guidance in creating a worldwide treatment for cryptocurrencies for all nations to follow
- Also this month, Korea revealed a draft of industry classification standards that recognizes cryptocurrency exchanges as financial institutions
TAX BREAKS
- On Wednesday, ministers from eight South Korean agencies working on economic policy met to discuss the current tax laws
- The committee decided to enact a reduced tax rates for startups developing innovative technologies, blockchain was specifically mentioned as one of these technologies
- Specifics of the tax cut have not been revealed, but should be released on July 26th and take effect starting in 2019
- This news comes just after South Korea's Ministry of Science and ICT announced $9 million in investments into blockchain programs until 2019
U.S. Lawmaker Wants to Ban Citizens from Buying Crypto
BLANKET BAN
- Yesterday, during a hearing of a subcommittee for the House of Representatives Financial Services Committee, Congressman Brad Sherman proposed a blanket ban to keep U.S. citizens from mining or buying cryptocurrencies
- This is no surprise as the California congressman had called cryptocurrencies "a crock" in March
- Sherman, whose top donor is credit card processor Allied Wallet, claimed that cryptocurrencies are used by criminals, tax evaders, and rogue states looking to bypass U.S. sanctions
In defense to Sherman's statements, expert panelist Norbert Michel told the subcommittee:
"Yes it is true that criminals have used bitcoin, but it's also true that criminals have used airplanes, computers and automobiles. We shouldn't criminalize any of those instruments simply because criminals used them."
NO CBDC
- During the subcommittee, members also spoke on the possibility of creating a central bank-backed digital currency (CBDC)
- However, this idea was quickly shot down amongst the members due to the unforeseen consequences like an increase in bank runs and weakened financial stability
- One member, Alex Pollock, shamed the idea saying it's "a terrible idea - one of the worst financial ideas of recent times"
- At this point, the U.S. Federal Reserve is yet to release research or a statement regarding the idea of a central bank-backed digital currency
IT'S GIVEAWAY TIME!
That's right. It's giveaway time. This time we are giving away 3 copies of @cointradernik's newest book An Altcoin Trader's Handbook!
HOW TO ENTER:
- Click the 'Win Your Copy' button above
- Forward the Blockchain Brew newsletter to 3 new people
That's it! We will be tracking the results and announcing winners in the Friday, July 20th newsletter.
P.S. Don't miss this opportunity...this may be the easiest way to get a free book in your lifetime:)
- Ethereum’s Vitalik Buterin: Crypto Must Overcome Two Big Challenges to Go Mainstream
- Wells Fargo Files Patent for Tokenization System to Protect Sensitive Data
- John McAfee Says Bitcoin Bull Market is Coming – Get Prepared for a ‘Volcanic Eruption’
Binance Coin (BNB)
"In accordance with our white paper, we will burn 2,528,767 BNB for our 4th quarter, and will be executed within the next two days."
ZenCash (ZEN)
Hardfork which introduces Super Nodes at block height 344700, which is estimated to occur on July 19.
BitShares (BTS)
"This is a protocol upgrade release. All nodes should upgrade before this date."
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