Crypto weekly update
4. November 2021  • clock 3 min •  Daniel Mitrovsky

Bitcoin White Paper celebrates its 13th birthday – Crypto weekly update

This week, the total market capitalization exceeded 2.35 trillion EUR. Increase at the 7-day interval is 10.79 %. Bitcoin increased by 1.86 % during the week to a current value of over than 53 500 EUR. Bitcoin dominance is 42.9 %.

Source: Coinmarketcap

Bitcoin whitepaper celebrates its 13th birthday

Although Bitcoin whitepaper, the first and final official file released on bitcoin, only has nine pages yet it contained enough to dig the entire financial world from the ground up. At the end of October, bitcoin whitepaper celebrated its 13th birthday, just at a time when the world continues to deal with a global pandemic and inflation fears.

On October 31, 2008, Satoshi Nakamoto released the Bitcoin white paper to a cryptography mailing list hosted by Metzdow. The Metzdow mailing list was run by a group of cypherpunks and was filled with ideas meant to create a form of digital currency.

Although many people think bitcoin was the first idea to create digital money, in fact it is a little different. The quest for digital cash had started many years before the Bitcoin white paper was published, and Bitcoin is more accurately seen as the culmination of decades of research and development. However, Satoshi proved something that no one else did before him – he combined all previous unsuccessful attempts and ideas into one brilliant idea – which created Bitcoin.

Whitepaper, titled “Bitcoin: A Peer-to-Peer Electronic Cash System“, in which Nakamoto explained that his digital currency is fully peer-to-peer (P2P) and requires no trusted third party for a transaction to occur. Through the peer-to-peer network and the consensual Proof-of-Work algorithm, Bitcoin solved the double-spending problem, all while maintaining the full anonymity of participants.

Although the document did not receive the attention it would realistically deserve at the time, whitepaper was truly the beginning of a new era for monetary systems of the world, because it brought forth the idea that decentralization has more value than centralization. Source

Eurozone continues to struggle with inflation

Euro zone inflation hit a new 13-year high in October, as the currency bloc battles surging energy costs.

Headline inflation on Friday came in at 4.1% for this month, according to preliminary data from Europe’s statistics office Eurostat. Reuters points out that this was the highest level since July 2008, and was ahead of a consensus forecast of 3.7 %.

Third-quarter data out Friday also showed that GDP for the bloc grew 2.2% compared to the previous period, its fastest pace in a year.

Although people invest in cryptocurrencies for different reasons, one of the most significant reasons is the fact that Bitcoin, thanks to its limited supply, is a great hedge against inflation. In general, when inflation rises, the value of money depreciates.

To beat this recurring problem, many people invest in assets that are almost certain to rise in value at a rate more than inflation, so that the purchasing power of their money does not depreciate. With inflation rising, it can therefore be assumed that investors will continue to look for different assets to hedge against inflation. The ideal solution in this case is Bitcoin.

CME introduces micro Ether futures

The Chicago Mercantile Exchange (CME), one of the world’s biggest derivatives marketplaces, continues expanding its cryptocurrency derivatives offerings by adding a new Ether-based product.

CME announced Tuesday that it is planning to launch a micro Ether futures contract, sized at 0.1 ETH, enabling a new type of Ether exposure to institutional and individual traders.

Tim McCourt, CME Group Global head of alternative investment products, noted that the launch of micro ETH futures aims to bring more investors to the market by enabling smaller investments.

The new product will become the fourth crypto derivatives product ever launched by CME and is expected to be rolled out on Dec. 6, 2021, pending regulatory approval. Source

Australia’s largest bank to integrate bitcoin services

Australia’s largest bank, Commonwealth Bank (CBA), is likely to allow its clients to become part of the cryptocurrency ecosystem soon.

Commonwealth Bank (CBA) will reportedly enable its 6.5 million customers to buy, sell, and hold bitcoin directly in its banking app, according to the Australian Financial Review. The bank will become the first in Australia to offer customers direct access to bitcoin and join a handful of other financial institutions in the world to cater to the growing demand for the scarce asset.

However, the Bank hasn’t made a formal announcement yet. Sources close to the matter say this could happen during this week.

Commonwealth Bank (CBA) is Australia’s largest bank and the country’s leading financial services provider, including retail, premium, business, and institutional banking. The bank’s over 6.5 million clients represent more than 25% of the country’s total population. Source

El Salvador plans to build bitcoin schools

Another El Salvador project, known to the public mainly for its implementation of Bitcoin as a legal tender, is to enhance the cryptocurrency education for locals by constructing 20 bitcoin schools.

The country plans to fund this initiative from profits that come from investing in bitcoin. The announcement comes just a month after El Salvador’s President Bukele announced he would build a pet hospital in the country.

As of the moment, El Salvador is the only state that accepts BTC as legal tender. The historical move became a reality on September 7th this year, despite the enhanced criticism the country faced from global organizations like the IMF.

El Salvador currently owns 1,120 bitcoins worth roughly $70 million (€60.59 million)Source

Curiosity : Effectiveness of U.S. stimulus checks

An average American taxpayer received three rounds of stimulus checks from the United States government as a means to reignite the economy by increasing consumers’ spending potential. For some, this meant an opportunity to invest in Bitcoin (BTC).

A Cointelegraph report from Aug. 26 shows that 11% of the respondents between the ages of 18 to 34 reinvested a part of their stimulus checks into cryptocurrencies. Adult Americans that reinvested the first round of stimulus payments from April 2020 into Bitcoin have realized a net income of roughly 342%, turning a $1,200 investment into $5,304 as of Oct. 31, 2021.

The second stimulus check of $600 was distributed between December 2020 and January 2021, just two months before Bitcoin achieved an all-time high of $65,320 for the first time. If reinvested in Bitcoin, the second check would return a profit of 52% (approximately $312).

The average payout for the third stimulus check was set at $1,400, which was made available for eligible taxpayers from March 2021. Since then, Bitcoin underwent a three-month-long bearish market but made a full recovery to cross $65,000 in trading value for the first time. Despite the fluctuations, reinvesting the third stimulus check in Bitcoin would return a modest 7% or $98 in profit.

Based on the findings above, a timely reinvestment of $3,200 (€2,770) worth of stimulus checks into Bitcoin would return a total profit of $4,514 (€3,907) – nearly 141 % by the end of October. In a study conducted by Harris Poll on behalf of Yahoo Finance, most Americans willing to invest in cryptocurrencies cited primary interest in Bitcoin and Ether (ETH). Source

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Daniel Mitrovsky


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