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USA is said to be a leader in Bitcoin.
Donald Trump and Bitcoin Former President Donald Trump is highlighting the importance of U.S. leadership in Bitcoin and cryptocurrencies, positioning himself as a staunch Bitcoin advocate as he runs for the 2024 presidential election, becoming the first U.S. president to accept Bitcoin Lightning payments. These types of payments use the Bitcoin Lightning Network, a protocol for faster and cheaper transactions on the Bitcoin blockchain. He also opposes Central Bank Digital Currencies (CBDCs), i.e. digital currencies issued by central banks. On the campaign trail, Trump promises to keep regulators away from Bitcoin if he is elected. Support for Bitcoin and America's Future In a speech in Wisconsin, Trump declared his intention to "end Joe Biden's war on crypto." This is to secure America's economic future and ensure that the future of Bitcoin and crypto innovation lies in the US and not other countries. These statements mark a significant shift in Trump's position, as he now explicitly supports American leadership in Bitcoin. Promoting Bitcoin and crypto innovations Trump makes it clear that he recognizes the political benefits of supporting Bitcoin. As the cryptocurrency becomes too popular to be banned, he believes it is crucial to appeal to Bitcoin-friendly voters. He believes that lagging behind in Bitcoin and crypto innovation could result in the U.S. missing out on technological and financial advances. Trump emphasizes the need for America to become a center for Bitcoin and crypto developments in order to remain competitive on the global stage.
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First Bitcoin ETF approved by Australia's largest exchange.
Bitcoin ETF approved on the Australian Securities Exchange The Australian Securities Exchange (ASX) has approved the first Bitcoin exchange-traded fund (ETF) on its platform, which will be listed on June 20. The VanEck Bitcoin ETF (VBTC) will be the financial instrument provided by VanEck. This follows the successful launch of Bitcoin ETFs (exchange-traded funds) in the United States, where 11 such products have been listed since January, and in Hong Kong. Demand for Bitcoin access is increasing Arian Neiron, CEO of VanEck Asia Pacific, explained that demand from clients for bitcoin exposure through a listed financial instrument on the ASX is growing. In Australia, there are already spot bitcoin ETFs, i.e. funds that hold physical bitcoins. The Global X 21 Shares Bitcoin ETF (EBTC) debuted in April 2022, and the Monochrome Bitcoin ETF (IBTC) began trading on June 4 on Cboe Australia, the country's second-largest exchange. Bitcoin ETF offers visibility and credibility The listing of a Bitcoin ETF on the ASX, Australia's largest stock exchange, represents a significant achievement, providing institutional and retail investors with greater visibility and credibility for Bitcoin investments. These developments reflect the growing acceptance and interest in Bitcoin investment products worldwide and suggest that other countries may soon follow suit.
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Biden administration participates in Bitcoin roundtable with members of Congress.
Roundtable on Bitcoin and Blockchain in Washington DC US Congressman Ro Khanna from California's 17th district will host a roundtable on Bitcoin and blockchain in Washington DC in early July. Described as a major gathering of lawmakers and innovation leaders, the meeting is expected to include officials from the Biden administration, members of the House and Senate, and businessman Mark Cuban. The goal of the meeting is to develop strategies to encourage innovation in Bitcoin and blockchain in the US. Initiative in response to pro-Bitcoin actions by Donald Trump This initiative follows recent pro-Bitcoin actions by former President Donald Trump. Trump has begun accepting Bitcoin Lightning payments (a method for fast and inexpensive transactions on the Bitcoin blockchain) for campaign donations and has promised to end what he calls "Joe Biden's war on crypto." He also hosted a roundtable meeting with Bitcoin miners (people who create new Bitcoins and verify transactions through complex calculations) at Mar-a-Lago and pledged support for Bitcoin mining both nationally and globally. Biden administration’s stance on the Bitcoin and crypto industry Over the past four years, the Biden administration has been notably hostile to the Bitcoin and crypto industry. President Biden recently vetoed a bill that would have allowed financial institutions to hold Bitcoin and other cryptocurrencies. The Justice Department arrested the founders of the Samourai wallet (a privacy-focused Bitcoin wallet) on money laundering charges. Biden has criticized crypto traders, comparing them to "wealthy tax evaders." His administration has promoted a central bank digital currency (CBDC, a digital form of central bank money) and proposed a 30% tax on the electricity used for Bitcoin mining. Indication of possible change in Washington's attitude towards crypto This roundtable meeting hints at a potential shift in Washington's attitude toward crypto and could indicate a more moderate attitude among Democrats, especially given Khanna's party affiliation. Additionally, the Biden administration is considering accepting crypto donations through Coinbase Commerce (a platform that enables cryptocurrency payments for merchants), similar to what Trump recently introduced.
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MicroStrategy increases share sale to $700 million
MicroStrategy increases planned share sale MicroStrategy, led by CEO Michael Saylor, has increased its planned stock sale from $500 million to $700 million to acquire more Bitcoin. The company had originally announced plans to sell $500 million in convertible notes to qualified institutional buyers. These proceeds were also earmarked for acquiring additional Bitcoin. Currently, MicroStrategy owns over 214,400 BTC (Bitcoin) worth $15 billion. Offer increased to $700 million The offering, which was originally scheduled to close on June 17, was increased to $700 million the following day. Since 2020, MicroStrategy has been aggressively buying Bitcoin, with these purchases largely financed by debt, taking advantage of market fluctuations. Convertible bonds offer particular flexibility. They can be converted into MicroStrategy shares before their maturity in 2032. This gives investors the opportunity to benefit from an increase in Bitcoin's price while minimizing downside risk through the senior unsecured bonds' status. Primary goal remains Bitcoin acquisition While proceeds not used for Bitcoin could also cover general corporate needs, the primary goal remains to increase Bitcoin holdings while prices are relatively low. This approach underscores MicroStrategy's unwavering belief in Bitcoin as a key asset for corporate reserves.
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Bitcoin could reach $1 million by 2033.
Bernstein's Bitcoin forecast until 2033 Bernstein, a major Wall Street firm, predicts that Bitcoin could reach a value of $1 million by 2033 and $200,000 by 2025. This optimistic prediction highlights unprecedented demand for spot Bitcoin ETFs (exchange-traded funds) and a limited future supply. MicroStrategy and Bitcoin acquisition The firm's new report highlights Michael Saylor's MicroStrategy (a company that holds large amounts of Bitcoin) and positions it as a leader in Bitcoin acquisition through both debt and equity. MicroStrategy's active, leveraged Bitcoin strategy has outperformed passive ETFs, resulting in higher Bitcoin holdings per share. Bernstein's price target for MicroStrategy Bernstein also set a price target of $2,890 for MicroStrategy shares, nearly double the current price. Institutional acceptance of Bitcoin The bold prediction is in line with the growing institutional adoption of Bitcoin. Major asset managers such as BlackRock and Fidelity are offering Bitcoin investment products, which could lead to significant Bitcoin price increases. Bernstein highlights MicroStrategy's advantage as a pioneer among publicly traded Bitcoin entities with significant growth potential as Bitcoin adoption is still in its early stages.
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Director at Fidelity: Bitcoin is exponential gold.
Jurrien Timmer on Bitcoin as "exponential gold" Jurrien Timmer, Fidelity's Director of Global Macro, described Bitcoin as an emerging store of value, highlighting Bitcoin's scarcity and increasing adoption as key drivers of its potential as a long-term store of value, similar to gold. The growth of Bitcoin compared to other technologies Timmer compared Bitcoin's growth to the exponential spread of the internet and mobile technologies, highlighting accelerated adoption and network growth as key factors in Bitcoin's valuation. The increasing acceptance of Bitcoin Although Bitcoin is still in its infancy compared to traditional assets, adoption is increasing rapidly, which could make it a significant store of value in the future. Timmer pointed to Bitcoin's characteristic boom-bust cycles, noting that the number of non-zero addresses on its network follows a power curve, with the Bitcoin price oscillating around this curve like a pendulum. Bitcoin and institutional investors Timmer's view reflects a trend among institutional investors who recognize Bitcoin's potential, underpinning its growing legitimacy in the financial sector. He also noted that although Bitcoin's network growth has slowed recently, its price has continued to rise. To reach new highs, it may be necessary for network growth to pick up steam again.
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MicroStrategy plans to raise $500 million to buy Bitcoin.
MicroStrategy plans to raise capital for Bitcoin investment MicroStrategy, led by CEO Michael Saylor, plans to raise $500 million through a private offering of convertible senior notes to fund additional Bitcoin purchases. The company is already the largest public holder of Bitcoin, with over 214,400 BTC (Bitcoin), valued at $15 billion. Since 2020, MicroStrategy has adopted Bitcoin as its primary reserve asset. The company's average purchase price for Bitcoin is around $35,000, while Bitcoin is currently trading near $68,000. $500 million to finance Bitcoin purchases The $500 million will be raised through the sale of convertible senior notes to qualified institutional buyers. These bonds pay interest semi-annually and mature in 2032 unless converted or redeemed earlier. Although the funds raised could potentially be used for general corporate purposes, acquiring more Bitcoin remains the priority. Additionally, initial buyers will be given the option to purchase an additional $75 million worth of bonds. MicroStrategy as a proxy for Bitcoin MicroStrategy's deep commitment to Bitcoin has made the company a proxy for Bitcoin in the stock market. The company's share price often reflects Bitcoin's movements. This latest capital raise underscores the company's belief in Bitcoin's long-term appreciation, as Saylor looks to acquire more while prices are relatively low.
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Biden campaign explores bitcoin donations.
President Biden’s re-election campaign considers crypto donations President Biden's re-election campaign is reportedly considering accepting bitcoin and crypto donations through Coinbase Commerce, a well-known cryptocurrency payment system. This development follows Donald Trump's decision to enable bitcoin donations to his own campaign. Strategy to address crypto-affine voters Sources suggest that the Biden campaign is considering this option to appeal to Bitcoin and crypto-savvy voters ahead of the 2024 election. Despite opposition from some industry figures who point to the Biden administration's crypto-critical stance to date, the move aims to project a more crypto-friendly image. Mark Cuban warns of Trump's lead among crypto holders Mark Cuban, a well-known entrepreneur, suggested that Biden's perceived indifference to crypto could increase Trump's chances of winning the election. Recent polls show that Trump has a significant lead among crypto holders. Although the Biden campaign has not officially confirmed these reports, the growing importance of Bitcoin in political strategies is becoming clear. Both parties now recognize the need to attract Bitcoin supporters in the run-up to the election.
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Bitcoin trading protocol reaches milestone.
Civkit: Alpha version of a new peer-to-peer economy Civkit aims to revitalize the global peer-to-peer economy (direct exchange between users without intermediaries) and has released its first alpha version after over a year of development. The project focuses on decentralized peer-to-peer trading that does not require a centralized order book (a central list of buy and sell orders). It is based on Nostr (a decentralized communication protocol) and Lightning (a secondary network for Bitcoin transactions) and integrates a central reputation system. Funding and teams behind Civkit Anonymous developers led by Nicholas Gregory (known from Commerceblock and MercuryLayer) are driving this project forward. The project is funded by individuals from the global south (countries in Africa, Latin America and Asia) and is specifically tailored to their needs. Funding from Ray Youseff and Noones supports developers from these regions and ensures practical applicability. Civkit Node Features The Civkit node provides a user interface for creating peer-to-peer trade orders. Users can create buy/sell orders, pay invoices, chat with trading partners, confirm receipt of fiat money (traditional government currencies), file disputes, and view other trade transactions. Civkit uses a special Nostr event type to share orders across Nostr relays (network nodes for relaying messages), creating a global order book. The escrow system (a secure payment mechanism) locks 5% of the trade amount in a holding invoice that is released after the trade is completed. It also provides an encrypted chat URL for dispute resolution. Future plans and further development The team plans to release the alpha version of the reputation system in two weeks. After that, the focus will be on federating the order book and integrating the escrow system with Fedimint (a federated treasury protocol) as well as supporting eCash (electronic money). Gregory emphasizes the ambitious nature of the project and the importance of the first tangible results.
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