Bitcoin (BTC) is currently experiencing a significant price discrepancy on Binance.US, offering a tempting opportunity for arbitrage. The cryptocurrency is being sold at a nearly $3,000 discount compared to global spot prices.
This phenomenon has been referred to as a “depeg” of cryptocurrencies, as the prices listed on the United States crypto exchange deviate from the global average.
At present, Bitcoin is trading at $27,536 against the U.S. dollar on Binance.US, representing an 8.5% markdown from the global spot price of $30,106.
Other digital assets, including Ethereum, are also being traded at discounted rates.
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Ethereum is priced approximately $200 lower on Binance.US, with a current trading value of $1,695.
Even stablecoins like Tether (USDT) are affected, trading below their intended peg with Tether being valued at $0.915 on the exchange.
However, it is important to note that these discounts are only applicable when trading cryptocurrencies against fiat USD on Binance.US.
Unfortunately, most investors will not be able to take advantage of this opportunity due to the suspension of new USD deposits on the platform since June 9.
As a result, only those who already possess USD funds in their Binance.US accounts can purchase the discounted cryptocurrencies.
Moreover, concerns have arisen that Binance.US may soon halt USD withdrawals, prompting some users to sell their cryptocurrencies below market value in order to exit their positions in USD.
An email from Binance.US to customers, which has circulated on Twitter, states that the last day for USD withdrawals will be July 20.
This situation mirrors a similar incident that took place in late May at the Australian branch of Binance, where the company’s third-party payments provider ceased offering fiat on- and off-ramps.
Consequently, the price of BTC on Binance dropped by 20% when traded against the Australian dollar.
As a testament to the significance of these events, readers are encouraged to collect this article as a non-fungible token (NFT).
This unique digital asset will preserve this moment in history and demonstrate support for independent journalism in the cryptocurrency space.
Bitcoin (BTC) has the potential to become the currency of choice for artificial intelligence (AI), according to Arthur Hayes, the former CEO of BitMEX.
In his recent essay titled “Massa,” Hayes argues that as fiat currencies become increasingly dysfunctional, the AI revolution will flourish, leading to a surge in BTC adoption.
Hayes predicts that the price per coin could reach $760,000 as a result.
Hayes believes that the future will witness a significant expansion of AI-related applications, making AI an integral part of everyday life.
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The rapid advancements in computing power have brought us to the verge of an AI explosion that will revolutionize humanity.
Hayes cites the example of ChatGPT, which acquired 100 million monthly active users in just two months, highlighting the unprecedented pace of technological adoption.
When it comes to financial solutions for AI integration, Hayes suggests that Bitcoin, rather than a tailor-made altcoin, will be the preferred choice.
This is because AI systems are likely to perceive Bitcoin’s qualities, such as its fixed supply, digital scarcity, and status as “energy money,” as the most logical option.
AI systems are unlikely to rely on anything operated by human governments, thus making Bitcoin and gold the most suitable choices.
Hayes also outlines a potential path for Bitcoin’s price to reach $1 million.
He anticipates that the real impact of AI will be felt in approximately three years, and it could take another decade for the network value boost driven by AI alone to push BTC/USD to nearly $1 million.
Hayes emphasizes that his predictions aim to create a narrative that gains traction before the peak of what he calls “deranged growth investing” in 2025 to 2026.
Depending on the extent of investment, Bitcoin’s price could surge to $760,000 per coin.
Hayes concludes by stating that the market is most lucrative when it shifts from believing something is impossible to considering it as a possibility.
His optimistic outlook on Bitcoin’s future price is based on the expectation that the market will overvalue Bitcoin’s network growth if it sees a chance of his assumptions coming true.
Arthur Hayes is renowned for his bullish long-term perspective on Bitcoin and has previously advocated for a million-dollar price target, attributing it to the disintegration of fiat currencies.
Google Cloud, the $225-billion cloud and data service provider, has recently joined the ranks of companies showing interest in Bitcoin.
In a partnership with Voltage, an infrastructure provider specializing in the Bitcoin Lightning Network, Google Cloud aims to expand its Bitcoin-based services globally while assisting Voltage in expanding its operations.
Through this collaboration, Voltage will leverage Google Cloud to cater to its customers on a global scale.
Graham Krizek, CEO of Voltage, explained that they have larger customers who require nodes deployed in specific geographic regions such as the U.K. or Asia.
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On the other hand, Google can utilize Voltage as an outsourced Bitcoin and Lightning team, supporting companies interested in integrating Bitcoin or Lightning into their services.
The announcement of the partnership has garnered significant attention on social media, highlighting Google’s growing understanding and acceptance of Bitcoin and Lightning.
However, the implications of this collaboration run deeper than mere interest.
Christopher Calicott, managing director of venture capital firm Tramell Venture Partners, revealed that former Googlers had expressed how such unexpected social media engagement captures the attention of Google.
Additionally, Google’s open-minded approach to Lightning sets it apart from its competitor, Apple. Apple recently removed Damus, a Lightning-friendly decentralized social media protocol, from the App Store, indicating its aversion to Lightning.
Calicott suggested that the tech industry may be warming up to Lightning, particularly those involved in payment services.
Operating under the umbrella of Alphabet, Google Cloud benefits from its parent company’s extensive reach. Google Pay, the payment platform, boasts millions of users across more than 15 countries.
Since 2020, Google Ventures (GV), the investment arm of Google, has exhibited a strong interest in blockchain, Web3 companies, and Bitcoin.
GV participated in a $6-million seed round for Voltage in 2021, indicating the growing momentum in the crypto space.
Despite Apple’s actions, Lightning continues to gain traction among billion-dollar businesses worldwide.
One of Mexico’s largest companies has started experimenting with Lightning, and major crypto exchanges like Binance and Coinbase have promised Lightning integrations.
While it is still early in the adoption process, industry observers like Calicott emphasize the need to monitor its growth. Krizek, with his experience in the Bitcoin space since 2012, stressed the significance of the partnership.
As organizations are exposed to Bitcoin and its possibilities through Lightning, the increasing interest and demand have already captured their attention.
Krizek expects more services to be rolled out soon, accompanied by efforts in Bitcoin education.
According to a report by JPMorgan managing director Nikolaos Panigirtzoglou, the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States may not have a significant impact on crypto markets, but it could benefit the leading cryptocurrency.
Panigirtzoglou, based in London, is part of JPMorgan’s global market strategy team and believes that a Bitcoin ETF in the US would have a similar effect as those seen in Canada and Europe, where such ETFs have been available for some time.
The report reveals that Bitcoin ETFs have generally attracted little investor interest in other jurisdictions over the past two years.
They have also failed to benefit from investor outflows from gold ETFs.
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Despite this, Panigirtzoglou sees potential benefits if a Bitcoin ETF is approved in the US.
He suggests that it could bring more liquidity to Bitcoin markets and possibly lead to a shift in trading activity from BTC futures products.
Panigirtzoglou’s perspective differs from the high expectations surrounding the approval of a Bitcoin ETF in the United States. BlackRock’s CEO, Larry Fink, expressed during an interview on July 6 that investors might turn to Bitcoin as a hedge against inflation and the devaluation of fiat currencies.
Fink emphasized that Bitcoin is an international asset, not tied to any specific currency, making it an alternative asset for people to consider.
The annual inflation rate for the US, as reported by the Labor Department, was 4.0% for the 12 months ending in May.
The success of BlackRock in filling ETFs has generated optimism that their attempt to launch a Bitcoin ETF might also succeed.
Data from Bloomberg Intelligence’s Eric Balchunas and James Seyffart indicates that only one out of the 550 funds filed by BlackRock has been rejected to date.
Following BlackRock’s application, other companies such as Invesco, Fidelity, WisdomTree, and ARK Invest have also submitted applications or refilings with the Securities and Exchange Commission (SEC).
However, it’s worth noting that the SEC has previously denied several applications for Bitcoin ETFs.
In conclusion, while the approval of a Bitcoin ETF in the US may not be a game changer for crypto markets, it could have some positive implications for the leading cryptocurrency, such as increased liquidity and potential shifts in trading activity.
However, the overall impact might not be as significant as some anticipate, considering the historical investor interest in Bitcoin ETFs in other jurisdictions.
Bitcoin Mining Stocks Outperform BTC with Impressive Gains, but Potential Risks Loom
Bitcoin mining companies have significantly outperformed Bitcoin itself amid the recent bullish price action in the cryptocurrency market.
The top nine publicly traded Bitcoin mining firms have seen an average year-to-date stock price gain of 257.14% in 2023, nearly three times higher than Bitcoin’s gain in the same period.
The leveraged beta effect explains the higher gains of mining stocks.
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When Bitcoin experiences an upward trend, these stocks tend to outperform, while they face greater downside risk during Bitcoin slumps.
Consequently, the performance of Bitcoin will remain a crucial factor in determining the direction of mining stocks.
While miners are positioning themselves for the long term by expanding their operations and purchasing more machines, the accumulation levels have not matched those of previous bull markets.
This suggests that the upward trend in mining stocks may stall in the medium term.
Recent developments within the mining sector have added to positive sentiments and long-term value.
Some mining companies have made significant moves, such as Hut 8 Mining merging with US Bitcoin Corp, increasing its total hash rate to become the third-largest public mining entity in the US.
Cleanspark also invested to increase its hash rate, and Riot Blockchain entered a deal with mining hardware manufacturer MicroBT to double its hash rate capacity by 2024.
However, on-chain data reveals that miners have been selling a significant portion of their holdings, which could indicate an impending downturn.
Additionally, some mining stocks, like Marathon Digital Holdings, Riot Blockchain, and Cipher Mining, have attracted a substantial amount of short interest, possibly due to excessive debt and stock dilution, which can impact existing shareholders’ profitability.
While mining profits have improved, miners continue to sell their Bitcoin holdings.
The network’s total hash rate reached a new all-time high initially but has since dropped due to heat waves in Texas, where some mining farms are located.
The profitability of running miners has increased with Bitcoin’s price surpassing $30,000, but companies with operations in Texas may face losses due to the adverse climate conditions.
Despite revenue improvements, miners have been allocating funds to expansion and operation costs, suggesting that a full-fledged crypto bull market is yet to materialize.
The expansion plans of mining companies and the decline in on-chain miner holdings indicate a potential sideways price action or a correction in mining stocks if the BTC price drops.
The Bitcoin Legal Defense Fund (BLDF) argues that a recent report released by the United Kingdom’s Law Commission could undermine a crucial argument made by Craig Wright in his controversial lawsuit against 12 Bitcoin core developers.
The 300-page report, which focuses on digital assets, was published in late June by the Law Commission, an independent organization responsible for reviewing and recommending reforms to UK and Welsh laws.
It includes a classification of fiduciary duty that supports the developers’ defense, asserting that they are not directly responsible for the loss of 111,000 Bitcoin (BTC) valued at approximately $30,170, due to hacking.
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In his lawsuit filed in 2021, Craig Wright, the owner of Tulip Trading, claimed that the developers involved in the open-source development of Bitcoin Core owed him a fiduciary duty regarding his financial loss.
Wright is seeking access to the Bitcoin Core blockchain as a means to recover the allegedly stolen funds. He is also known for asserting that he is the pseudonymous creator of Bitcoin, Satoshi Nakamoto.
The UK report delves into the definition of fiduciary duty, identifying recognized categories such as “agents, trustees, partners, company directors, and solicitors.”
The report emphasizes that fiduciary duty rarely exists outside of these established categories. The BLDF, acting as the developers’ legal representative, argues that the defendants do not fall into any of the criteria outlined by the Law Commission.
In a recent blog post, the BLDF stated, “They are not agents, trustees, partners, company directors, or solicitors, and they never undertook or were entrusted with authority to manage the property or make discretionary decisions on behalf of another person.”
Furthermore, the BLDF emphasized that Bitcoin was designed to facilitate transactions between individuals without the need for third-party authority.
The outcome of the Tulip Trading lawsuit could establish a legal precedent for the liability of open-source developers concerning assets.
The trial is expected to take place in 2024 and could have far-reaching implications for the community of open-source developers, as 97% of the world’s software programs are open-sourced, as noted by Jessica Jonas, Chief Legal Officer of the BLDF, during the Bitcoin 2023 conference in May.
The UK Law Commission report also advocates for the creation of a new and distinct category of personal property to accommodate the unique characteristics of digital assets.
Bitcoin’s recent price drop to $30,098 has sparked discussions about the future of the cryptocurrency and the direction of its development.
Vitalik Buterin, co-founder of Ethereum, believes that the rise of projects like Ordinals signals the resurgence of a builder culture in the Bitcoin network.
In a Twitter Space conversation with Bitcoin proponents Eric Wall and Udi Wertheimer, Buterin praised Ordinals and its BRC-20 token standard as a rejection of the stagnant politics within the Bitcoin ecosystem.
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According to Buterin, Ordinals are reintroducing a culture of action and pushing back against the laser-eye movement, which he views as positive progress.
The main focus of the two-hour-long conversation revolved around scalability.
Wall expressed concerns about Bitcoin’s Lightning Network, stating that it struggles to scale for future users and frequently fails when processing medium-sized payments.
Buterin proposed that a solution would be to implement various layer-2 solutions and find ways to enhance the efficiency of the Bitcoin base layer.
He emphasized the importance of rollups and ZK-snark-based scaling solutions.
Wertheimer added that zero-knowledge rollups could potentially enable smart contracts on Bitcoin, creating a new execution environment.
However, proponents of the Ordinals project, such as Wall and Wertheimer, face criticism from traditional Bitcoin advocates.
Some argue that introducing NFTs and smart contracts on Bitcoin dilutes its primary function as a peer-to-peer cash network.
Samson Mow, CEO of Jan3, believes that Ordinals waste valuable block space that should be allocated to Bitcoin payments.
Wall responded to these criticisms by suggesting that Bitcoin could serve as a proof system for zero-knowledge proofs, avoiding network congestion.
He expressed the desire to utilize the Bitcoin base layer as a judge or arbiter of computations, rather than running them on-chain.
Wall urged the community to consider second layers as a means of achieving expressive capabilities, not just facilitating payments.
The discussion sparked controversy within the Bitcoin community, with Wertheimer criticizing Samson Mow and Adam Beck, CEO of Blockstream, for dismissing the conversation with Buterin.
The clash of opinions highlights the ongoing debate about the future of Bitcoin’s development and the potential for increased functionality within its network.
As Bitcoin enters this new era of development, it remains to be seen how the community will navigate these conflicting perspectives and shape the future of the world’s largest cryptocurrency.
Larry Fink, the CEO of BlackRock, the world’s largest asset management firm, recently vocalized his support for cryptocurrencies during an interview on Fox Business.
This comes as BlackRock applies to list a Bitcoin exchange-traded fund (ETF) in the U.S, a move that could revolutionize finance by providing an accessible investment tool linked directly to Bitcoin.
In the interview, Fink characterized cryptocurrency’s role as essentially “digitizing gold”, implying that it could serve as an alternative investment asset that isn’t tied to any specific currency.
He suggested that Bitcoin could provide investors with a way to protect against inflation and currency devaluation, signaling an international asset appeal.
Fink’s commentary on the crypto landscape has been consistent. He has weighed in on various important occurrences within the sector, such as the FTX downfall in 2022 and the growing intrigue surrounding Bitcoin.
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Given BlackRock’s influence, with over $9 trillion in assets under management as of April, Fink’s pro-crypto statements could trigger substantial impacts both within and outside the cryptocurrency domain.
Crypto enthusiasts online have reacted favorably to Fink’s pro-Bitcoin commentary, with some predicting a potential surge in certain asset prices, referred to as the “Fink Pump”.
At the time of the interview, Bitcoin’s price stood at $30,473, a slight 1% decline from the previous 24 hours.
It’s worth noting that under Fink’s leadership, BlackRock has pursued the launch of a Bitcoin ETF, with crypto giant Coinbase as a surveillance partner.
However, the outcome remains uncertain as the U.S Securities and Exchange Commission has previously rejected all spot Bitcoin ETF applications.
Fink’s positive stance on crypto could potentially tip the scales in favor of such advancements, marking a milestone for cryptocurrency integration into traditional finance.
Bitcoin miners experienced a significant boost in earnings during the second quarter of 2023, as transaction fees reached a staggering $184 million.
This figure surpasses the total transaction fee earnings for the entire year of 2022, showcasing the remarkable growth in profitability.
The latest data from cryptocurrency analytics platform Coin Metrics reveals that this represents a remarkable increase of over 270% from the first quarter of 2023.
Moreover, it marks the first time since the second quarter of 2021 that quarterly transaction fees have exceeded $100 million.
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This surge in fees can be attributed to two key factors. Firstly, Bitcoin’s price surge played a crucial role in bolstering top-line revenues.
Additionally, the introduction of BRC-20, a new token standard on the Bitcoin network, has expanded the possibilities for various use cases and accelerated the scalability of the network through the Lightning Network.
It is important to note that transaction fees accounted for only 7.7% of the total $2.4 billion earned by miners throughout the quarter.
The majority of their earnings still came from Bitcoin block rewards, which currently stand at 6.25 BTC per solved block.
However, this reward is set to decrease to 3.125 BTC following the network’s anticipated halving in May 2024.
Beyond their substantial earnings, Bitcoin miners had additional reasons to celebrate in Q2.
The blocking of the proposed Digital Asset Mining Energy tax by the Biden administration was a notable win for the mining industry.
Additionally, U.S.-based miners benefited from favorable macroeconomic conditions, leading to lower electricity prices due to receding inflation pressures.
Despite these positive developments, the mining fee market has become increasingly competitive as Bitcoin’s hash rate continues to reach new all-time highs.
Coin Metrics reports that the network’s efficiency has improved with the adoption of advanced ASICs like the S19 XP.
The fierce competition underscores the evolving landscape of Bitcoin mining and highlights the need for miners to stay ahead in this rapidly changing environment.
In conclusion, Bitcoin miners enjoyed a highly profitable second quarter of 2023, with transaction fees soaring to $184 million.
This milestone reflects the substantial growth in Bitcoin’s value and the emergence of new token standards.
However, miners must remain vigilant as competition intensifies, and they face the challenges of future halvings and a dynamic mining industry.
According to Blockstream CEO Adam Back, the Bitcoin ecosystem has been hindered by the prevalence of initial coin offerings (ICOs) and the subsequent focus of venture capitalists (VCs) on non-Bitcoin investments.
In a conversation with Cointelegraph’s Joseph Hall at the Lugano Plan B Summer School in Switzerland, Back highlighted the disparity between the lack of VC investment in Bitcoin and its dominant position in the overall cryptocurrency market.
Back referred to a market research report by Trammell Venture Partners, which revealed that VC flows into the ICO frenzy surged after the launch of Ethereum and smart contracts.
However, this trend has declined in recent years as investors sought early liquidity by purchasing discounted tokens and selling them to retail investors before the products were even available.
Back argued that although ICOs generated profits for investors, they often failed to deliver usable products due to misaligned incentives.
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The Trammell Ventures report indicated that 97% of VC investments in recent years went into “crypto” rather than Bitcoin.
Back emphasized that ICOs, altcoins, and discounted tokens attracted significant investor attention, which was surprising considering the actual real-world utility and adoption of Bitcoin.
He noted that exchange volume primarily consisted of Bitcoin, while the majority of VC spending went to “crypto” ICOs, highlighting the misallocation of resources.
Back pointed out that the underfunding of the Bitcoin space by these types of investors hindered innovation and the creation of valuable products.
However, he also mentioned a positive trend: investment in Bitcoin-related startups, especially at the early stage, had doubled in the last year, indicating renewed interest.
In addition to the discussion on VC funding, it was revealed that Twitter co-founder Jack Dorsey donated $5 million to Brink, a nonprofit organization that supports Bitcoin developers.
Back’s company, Blockstream, and Lightning Labs were recognized as significant contributors to the ongoing development of the Bitcoin protocol, with each employing eight developers dedicated to maintaining the leading cryptocurrency.
Overall, the impact of ICOs on the Bitcoin ecosystem has been significant, with VCs showing a preference for non-Bitcoin investments.
However, recent trends suggest a shift in funding behavior, with renewed interest in Bitcoin-related startups and increased support for Bitcoin developers.
This development bodes well for the continued innovation and advancement of the Bitcoin ecosystem.