It’s been a week dominated by rumours and speculations about Amazon accepting Bitcoin. As expected, the Amazon Go store is reportedly going to be accepting Bitcoin payments. Meanwhile, Mico is one of the early investors in the Bitcoin space and has decided to add more Bitcoin to its portfolio.
Amazon recently decided to accept Bitcoin for payments, which will make their product offering much more flexible. They’re not the first company to do so, but they send a message that other large companies need to follow suit.
Amazon, the largest online retailer in the world, is reportedly now accepting Bitcoin payments. This comes a decade after the retailer first started accepting Bitcoin payments. Amazon has been on a buying spree ever since it launched its own cryptocurrency, the Amazon Coin, which was designed to compete with Bitcoin. Amazon Coin is pegged to the U.S. dollar, meaning it has no intrinsic value.. Read more about does amazon accept bitcoin and let us know what you think.
Every Saturday, Hodler’s Digest will keep you up to date on all of the major news stories from the previous week. A week on Cointelegraph in one link: the greatest (and worse) comments, adoption and regulatory highlights, top currencies, forecasts, and much more.
This Week’s Top Stories
According to an insider, Amazon intends to accept Bitcoin payments this year.
At the start of this week, reports that Amazon was preparing to accept Bitcoin payments sent the crypto world into a frenzy.
On July 22, Amazon advertised a job vacancy for a digital currency and blockchain product lead, which sparked the speculations. Four days later, an unnamed source inside Amazon allegedly told City A.M. in London that the e-commerce behemoth planned to begin taking Bitcoin (BTC) payments by the end of 2021.
According to a story published on Sunday, the insider told City A.M., “This isn’t simply going through the motions to set up cryptocurrency payment options at some time in the future — this is a full-blown, well-discussed, essential component of the future mechanism of how Amazon will operate.”
According to Chinese crypto writer Colin Wu, Amazon’s reported intentions are to blame for Monday’s soaring market activity, during which Bitcoin gained approximately 15% in less than three hours.
After the multinational behemoth denied the notion two days later, that confident-sounding statement from an unidentified source proved out to be completely false.
“Despite our interest in the sector, the rumors about our particular intentions for cryptocurrencies are false,” a spokesman stated.
After Jerome Powell’s’most incomprehensible’ press conference, Bitcoin is struggling at $40,000.
On July 29, Bitcoin surpassed $40,000 for the first time, a day after the Federal Reserve indicated that it was nearing the end of its asset-purchase program, which has aided the US economy’s recovery.
Prior to the crucial Fed announcement, digital gold had reached $41,000. Following the publication of the Federal Open Market Committee’s policy statement and a press conference led by the Fed’s chairman, Jerome Powell, it began to lose upward momentum.
Powell has said that the Fed’s asset purchases would continue until the US economy made “substantial additional improvement.” However, for a long time, it was unclear what it meant, and Powell eventually clarified it after being questioned at a news conference on July 28.
It turns out that “significant additional development” entails high labor numbers and movement toward full employment.
The greatest amount of employment that the economy can achieve while keeping a steady inflation rate is referred to as maximum employment. The Fed’s maximum employment goals may need to be clarified in light of rising prices and job losses due to the epidemic.
Due to its involvement in assisting the Bitcoin bull market, BTC investors have been keeping a close eye on when the central bank would unwind its $120-billion-per-month bond-buying program.
Binance lowers withdrawal restrictions and introduces a tax-reporting facility.
Binance has been focusing on regulatory compliance as a result of increasing attention from governments and financial institutions across the world directed at the world’s largest crypto exchange.
Binance implemented withdrawal restrictions and a new tax reporting mechanism as part of its latest effort to continue communication with worldwide authorities.
On July 27, the firm made a substantial change to its Know Your Customer rules, lowering the maximum withdrawal amounts for customers who have not completed comprehensive identification verification.
New Binance accounts with just basic account verifications would be unable to withdraw more than 0.06 Bitcoin each day, valued approximately $2,329 at the time of writing, as of the date of the announcement. The maximum daily withdrawal amount was formerly set at 2 BTC ($77,661) each day.
On July 30, the site also stated that clients in Germany, Italy, and the Netherlands would be the first to lose access to its crypto derivatives trading.
Binance’s CEO and founder, Changpeng Zhao, said this week that the crypto exchange would cooperate with local authorities as it builds regional offices.
Zhao, who goes by the moniker CZ, indicated that Binance would abandon its decentralized approach to financing and that the exchange would work with authorities as it grew.
CZ said, “We want to be licensed everywhere.” “We’re going to be a financial institution from now on.”
Despite a $424.8 million loss on its BTC holdings in Q2, MicroStrategy promises to purchase more.
Despite posting $424.8 million in impairment losses in Q2, MicroStrategy promised to purchase more Bitcoin after stating in its July 29 Q2 report that company was “pleased” with the outcomes of its digital asset strategy.
MicroStrategy seemed to have lost the plot at first sight, as the Q2 report revealed that as of June 30, the company owned approximately 105,085 BTC with a carrying value of $2.051 billion, resulting in a $689.6 million impairment loss since purchase. The average Bitcoin carrying amount was projected to be $19,518.
Elon Musk’s Tesla also released a Q2 report earlier this week that revealed a $23 million impairment loss on its Bitcoin holdings.
Because both companies classify Bitcoin as a “intangible asset,” they must declare an impairment loss if the asset’s price falls below its cost basis. They are not, however, obliged to disclose price appreciation in the designated asset until the position is sold.
The digital asset figures were calculated using Generally Accepted Accounting Principles (GAAP) — a collection of commonly accepted accounting rules used for financial reporting. The firm also provided non-GAAP calculations, which in this report exclude the “impact of share-based compensation expense and impairment losses and gains on sale from intangible assets.”
The non-GAAP statistics for MicroStrategy’s digital asset holdings paint a different image, with the BTC cost basis at $2.741 billion but a market value of $3.653 billion, based on a $26,080 average cost per BTC and a market price of $34,763 as of June 30.
This may be why MicroStrategy CEO Michael Saylor is continuing to bet big on BTC and the hodl modl.
PayPal is planning to start cryptocurrency trading in the United Kingdom, and it may accept DeFi.
PayPal, the worldwide payments network, said on July 30 that it is seeking to extend its crypto trading services to the United Kingdom market, as well as adopting DeFi.
PayPal was eager to pat itself on the back after noting how well its crypto trading services fared in the second quarter, according to the company’s second-quarter earnings call on July 28. According to CEO Dan Schulman, the United Kingdom is expected to be the next nation to allow crypto trading, perhaps as soon as next month.
PayPal is looking at “what the future generation of the financial system looks like” and how to integrate smart contracts and decentralized apps onto the platform, according to Schulman on DeFi:
“How can we make smart contracts work better for us?” How can we digitize assets and make them available to customers who previously did not have access to them? There are also some intriguing DeFi apps. As a result, we’re putting in a lot of effort.”
Schulman also disclosed that Venmo, a PayPal-owned mobile payment service, had an 183 percent increase in income year over year, as well as widespread acceptance and trading of cryptocurrency on Venmo. In mid-April, Venmo began offering crypto trading services to its estimated 70 million members.
Paypal’s entry into crypto in 2020 was generally seen as one of the early drivers for last year’s stratospheric bull run, with the company initially revealing its plans in November.
Losers and Winners
Bitcoin is now trading at $38,906, Ether is trading at $2,357, and XRP is trading at $0.72 at the conclusion of the week. According to CoinMarketCap, the entire market cap is $1.53 trillion.
Quant (QNT), Amp (AMP), and Terra (LUNA) are the top three altcoin gainers of the week, with gains of 70.71 percent, 55.88 percent, and 43.75 percent, respectively, among the top 100 cryptocurrencies.
Compound (COMP), Mdex (MDX), and Shiba Inu (SHIB) are the top three cryptocurrency losses this week, with -5.79 percent, -5.35 percent, and -5.19 percent, respectively.
Read Cointelegraph’s market analysis for more information on crypto pricing.
The Most Memorable Quotes
“I believe central bank digital currencies were invented by Satan himself in hell.”
President of Asset Strategies International, Rich Checkan
“You even have those in the House who sit not distant from me on the House Financial Services Committee that consider blockchain to be a financial 9/11.”
Ted Budd, a member of the House Financial Services Committee and the Congressional Blockchain Caucus, is a Republican from North Carolina.
“They promise to make ‘transparency’ possible. Their supporters refer to the democratization of banking. A murky, widespread network of online funny money is neither democratic nor transparent.”
Senator Sherrod Brown of Ohio is a Democrat from the United States.
“Spending America deeper into a hole is a stupid, inflationary & altogether undesirable way to drive ppl to digital assets. I want USD to continue as the world’s reserve currency. We need to reign in spending & support financial innovation on US soil.”
Senator Cynthia Lummis is a Republican from the United States.
“When the COVID-19 epidemic struck, many economies were pushed into partial or complete lockdowns, reinforcing the need to pursue digitization.”
Ghana’s Vice President, Mahamudu Bawumia
“The major banks have failed miserably to reach out to customers throughout the nation. There may be a solution in digital money and central bank digital currency.”
Senator Elizabeth Warren (D-Massachusetts) is a former presidential contender.
“The outcomes of our digital asset strategy execution continue to delight us. Our most recent round of funding enabled us to increase our digital assets, which currently total more than 105,000 bitcoins. We plan to continue to invest more money in our digital asset strategy in the future.”
MicroStrategy CEO Michael Saylor
“Bitcoin mining is the world’s most environmentally friendly industry. Bitcoin miners use electricity 24 hours a day, seven days a week, and may be located near power plants that are wasting energy. Bitcoin miners assist energy firms in planning and controlling demand, generating money that may be used to divest from coal and invest in renewable energy assets.”
Will Szamosszegi, CEO and founder of Sazmining Inc., from Markets Pro Q&A
The Week’s Prediction
If the March 2020 chart fractal holds, Ethereum’s price may reach $14,000.
Numerous optimistic forecasts are resurfacing now that the cryptomarkets seem to be ramping up again. The current shift in public opinion makes one question whether the desired “moon” is once again within reach.
TradingView user “TradingShot” discovered a very optimistic fractal on the Ethereum chart earlier this week, indicating that ETH may conclude 2021 over $14,000.
Three technical indicators are used in the Ethereum fractal: a 50-day simple moving average (SMA), a Fibonacci channel, and a relative strength index (RSI).
In July 2021, Ether closed above its 50-day SMA for the first time since the bearish buzzkill market correction in May 2021. Breaking over the 50-day SMA has traditionally indicated bull runs, as TradingShot pointed out. For example, in just 137 days, a run-up over the 50-day SMA in April 2020 propelled the ETH/USD exchange rate from approximately $170 to over $500 in September 2020.
However, based on this author’s 20-second examination, a word of caution: In mid-May, when ETH reached all-time highs in the $4,000 to $4,300 price range, it remained there for about five days before falling hard and putting the bulls to sleep.
The Week’s FUD
Warren has written to Treasury Secretary Janet Yellen, urging her to take action against growing crypto-threats.
Senator Elizabeth Warren, a pro-crypto Democrat, called on Treasury Secretary Janet Yellen and other authorities to create a “comprehensive and coordinated” framework for tackling vulnerabilities in the cryptocurrency sector earlier this week.
In a letter to Yellen, Warren said, “As the demand for cryptocurrencies grows and these assets become more entrenched in our financial system, consumers, the environment, and our financial system are under increasing threat.”
According to Warren, an under-regulated cryptocurrency market poses a significant risk to major financial players, such as hedge funds and banks. What Warren is forgetting, however, is that hedge funds and banks are usually bailed out with taxpayer money in times of financial crises, so they really have nothing to worry about.
Senator John McCain is known for opposing crypto currencies, or whatever they’re called, and has referred to assets like Dogecoin as a “fourth-rate substitute to actual money.”
She doesn’t seem to have seen enough memes from the DOGE community to be persuaded of Dogecoin’s worth just yet.
The International Monetary Fund (IMF) has issued a veiled warning against El Salvador’s Bitcoin Law.
The International Monetary Fund, or IMF, cautioned this week that adopting Bitcoin as a national currency may have “dire” repercussions.
The IMF didn’t say whose country it was referring to, but it might be El Salvador, which was the first government to accept Bitcoin as a national currency.
According to Tobias Adrian, financial counselor and head of the IMF’s marketing department, and Rhoda Weeks-Brown, general counsel and director of the IMF’s legal department,
Countries that accept cryptocurrencies as national currency or “grant crypto assets legal tender status” risk having extremely volatile domestic values.
They further said that the assets may be utilized in violation of anti-money laundering and anti-terrorist funding laws, as well as having problems with macroeconomic stability and the environment.
During a hearing before the US Senate, a law professor argues for crypto mining regulation.
Just when everyone was getting enthusiastic about the bulk of the worldwide BTC hash rate moving out of China and into the United States, a little-known legal expert arrives to sabotage everything.
Professor Angela Walch of the St. Mary’s University School of Law spoke before the Senate Committee on Banking, Housing, and Urban Affairs’ crypto hearing on July 27 to advocate for tighter restrictions on those who keep the crypto industry running efficiently.
Thankfully, she wasn’t requesting a Chinese-style prohibition, and in her testimony before the committee, Walch stated that miners had “significant influence” over how blockchain networks function. She believes they may take advantage of the function of transaction ordering, which she believes will become a “big problem” for cryptocurrencies.
Professor Walch emphasized the idea by comparing the miner extractable value paradigm — in which miners make greater profits by arranging transactions in a certain manner — to a “bribe.”
However, she may have a point: when tokenized cats clog the network and send gas costs to the moon, it may seem like you’re paying someone to get an Ethereum transaction through the books.
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This article broadly covered the following related topics:
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