Elon Musk Bought Twitter  – Crypto Weekly Update

This week, the total market capitalization exceeded 1.71 trillion EUR. The decrease at the 7-day interval is 2.84%. Bitcoin increased by 6.59% during the week to a current value of over 37,400 EUR. Bitcoin dominance is 41.6%.

Zdroj: Coinmarketcap

Elon Musk Bought Twitter

Visionary and big crypto enthusiast Elon Musk bought social network Twitter on Monday for an astounding $44 billion. The founder of Tesla, which bought Bitcoin worth $1.5 billion last year, plans to turn the publicly traded company into a private company that will adhere much more closely to the principles of free speech, which Elon Musk considers ” the bedrock of a functioning democracy”.

Under the terms of the deal, shareholders will receive $54.20 in cash for each share of Twitter stock ($TWTR) they own, matching Musk’s original offer and marking a 38% premium over the stock price the day before Musk revealed his stake in the company.

The deal, which was unanimously approved by Twitter’s board, is expected to close this year. Twitter stock was up nearly 6% following the announcement of the deal, hovering around $51.84, just shy of the offer price. The deal is pending approval from shareholders and regulators.

Well-known cryptocurrencies also reacted to this deal. Market leader Bitcoin gained 3.78% within four hours of the announcement, while meme cryptocurrency Dogecoin, supported by Elon Musk, was up 24% within four hours.

In his statement Monday, Musk said he wants to “make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust and defeating the spam bots“. Source

Green Energy is Trendy

Interest in mining Bitcoin using green energy is constantly growing. 

The Bitcoin Mining Council (BMC), a group of 44 Bitcoin mining companies, claiming to represent 50% of the global Bitcoin network, has released a report focused on Bitcoin mining power consumption.

The BMC estimates the global mining industry’s sustainable electricity mix for the top crypto is now 58.4%, a fall of 0.1% from last quarter. Perhaps more importantly, it’s significant growth from the 36.8% renewables estimated in Q1 2021.

However, the sustainable energy mix of BMC members is even slightly higher, according to the survey. The survey showed that BMC member companies use, on average, up to 64.6% of resources from the sustainable energy mix.

Bitcoin is often the target of criticism because of its high energy consumption. The Bitcoin network currently consumes about the same amount of energy as the countries like Malaysia or Poland. If it were an independent country, it would rank 24th in countries ranked by electricity consumption. However, the increasing amount of renewable resources used in mining means that Bitcoin is becoming greener and more environmentally friendly day by day. Source

Binance Limits Services in Russia

Binance, the largest cryptocurrency exchange by trading volume, is adopting new restrictions on users from Russia. The adoption and deployment of new restrictions on Russian traders are coming in response to following the European Union’s fifth package of sanctions against Russia.

Last week, Binance announced new trading restrictions for Russian nationals and residents holding more than €10,000 (approximately US$10,800) in their Binance accounts.

Restricted individuals and entities with open futures or derivatives positions will have 90 days to close their positions.

The notice further states that “Accounts for Russian nationals residing outside Russia, as verified with proof of address, and accounts for Russian nationals or natural persons residing in Russia, or legal entities established in Russia, that remain below a total value of 10,000 EUR, will remain unaffected and active.”

Binance CEO Changpeng Zhao previously declared that crypto exchanges, including Binance, must respect and comply with sanctions in a similar way to traditional financial institutions. However, Zhao further added that Binance has no plans to freeze the accounts of millions of innocent users due to Western sanctions against Russia. Source 

Fidelity Investment Adds Bitcoin to Retirement Accounts

Fidelity Investments, one of the largest asset managers in the world, will allow investors to add Bitcoin to their retirement 401(k) plans.

In the United States, 401(k) retirement plans are employer-sponsored retirement savings plans offered by U.S. employers that have certain tax advantages for the saver. Employees who are part of this plan pay a few percent of their wages directly to their retirement investment accounts. Employees can directly choose which funds they want to invest in. 

A report published by Fidelity revealed that some of the 401(k) plans that Fidelity administers plan to offer employees means of investing in Bitcoin through dedicated “digital asset accounts” in the near future.

The report further revealed that Microstrategy would be the first consumer of the new product. This doesn’t come as a surprise, as the company currently holds up to 130,000 bitcoins on its balance sheet.

It’s a big move given that Fidelity is the largest 401(k) plan provider in the United States, acting as custodian for 23,000 plans, which have 20.4 million participants. In total, those plans represent $2.7 trillion in assets under management. Source

The First Non-Collateralized Crypto Mortgages Taken Out

With the growth of the cryptocurrency ecosystem and the merging of the traditional and decentralized financial system, loans made directly in cryptocurrencies are slowly but surely coming to the fore.

USDC.homes, a company that partners with mortgage lenders and brokers to provide non-collateralized crypto mortgages based on credit scores to facilitate crypto home loans, has completed its first sale via DeFi lending protocol Teller.

An investor from Texas, whose identity has not been revealed, took out the first-ever crypto mortgage of 500,000 USDC to purchase a condo valued at $680,000.

Teller’s DeFi protocol is calling it the “first unsecured DeFi mortgage” in which the borrower didn’t put up collateral, and the mortgage was based solely on the client’s credit score. All loan transactions were settled on-chain via Polygon, a layer two solution on the Ethereum network.

The main benefit of crypto uncollateralized mortgages is that investors who own cryptoassets do not have to sell off their assets in order to purchase real estate. In addition, the divestment of assets would be a taxable event on which the investor would have to pay a tax. Source

Interesting fact: Is it the Right Time to Buy the Dip?

According to Google Trends, searches targeting the keyword “Bitcoin” have plummeted to lows not seen in over a year. While this may look scary at first glance, the opposite tends to be true.

Although retail investor interest and demand for Bitcoin, based on statistics from Google Trends or the Fear & Greed Index, has declined compared to previous months, according to an analytics report published by the Cryptopotato platform, there has been a decent spike in activity from large investors, who have been quietly accumulating Bitcoin in recent days.

Don’t miss this opportunity either. As the world’s most famous investor Warren Buffett said, “Be greedy when others are fearful“. Cryptocurrency market crashes are not uncommon, quite the contrary. Smart investors in all financial markets, including the cryptocurrency market, use dips to buy assets and expand their investment portfolios. At Fumbi, we offer you the opportunity to invest in a bundle of 24 cryptocurrencies in just a few clicks. Source

Start investing safely in cryptocurrencies now.