ETH Upgrade, Crypto Regulation, and Blackrock CEO on BTC as a Global Asset
Hey Redpill Readers!
Today’s newsletter brings you the latest crypto news and analysis.
But first, a crypto quick-take…
On the top movers and shakers in the space.
ETHEREUM 2.0 IS HERE
The long-awaited Ethereum 2.0 has finally arrived as the Ethereum network launched its Beacon Chain this December.
QUICK EXPLAINER: ETH 2.0 is the improved version of Ethereum… an upgrade that aims to make it more fast, more scalable, and more sustainable.
Here’s what we know so far:
The launched Beacon Chain addresses Ethereum's security. The Beacon Chain introduces proof-of-stake to the Ethereum network.
Proof of Stake (or PoS) pertains to a concept where a person can mine or validate block transactions based from the coins he or she holds.
880,000 Ethereum have been staked to date, which is around 355,000 more than the minimum amount required.
Looking back... this is huge, huge news for the crypto community as the planned launch of the upgrade has been brewing since early 2020.
And this major transition for the world’s second largest cryptocurrency is set to take Ethereum to new heights.
So what’s next up with this upgrade? Well, the next phase will be the introduction of “shard chains” which is more geek speak.
But in case you don’t know what those are…
Shard chains are means of increasing the network capacity (while reducing network congestion), as well as increasing the number of transactions per second.
In other words, more efficiency (across the board).
But the next phase of this Ethereum 2.0 upgrade won’t take place til next year.
With the success of this initial upgrade, more people will be desiring to have Ethereum because they can stake it and validate it.
And as demand for Ethereum rises, its price is also expected to increase, too.
The upgrade on Ethereum’s security is good news. Which creates positive sentiment among crypto users (who will likely fuel Ethereum’s price).
FINAL NOTE: What if the entire series of Ethereum 2.0 upgrades succeeds? Well, for Ethereum fans, that would be an insane milestone. A big win, for sure.
PAYPAL CEO TELLS CRYPTO INDUSTRY TO WORK WITH REGULATORS ASAP
PayPal CEO and President Dan Schulman made an important request to the crypto industry during the Web Summit Online Conference.
The head of the payment processing giant asked the crypto industry to work well with financial regulators. I know. We all want to do our own thing.
But he says it’s the only way for the crypto industry to thrive (in addition to offering more utility). And that makes sense.
But his main point is… regulatory compliance is important. Without it, the crypto industry can’t fully thrive.
Doubling down: Earlier this year, Schulman even voiced his willingness to collaborate with regulators around the world…
As he said, ‘the shift to digital forms of currencies [are] inevitable.’
Schulman’s call for cooperation with regulators renews the unavoidable debate on the pros and cons of crypto regulations.
Some, like Schulman, welcome regulations.
For them, playing by the rules is the only way forward.
On the flip side: Other crypto advocates oppose regulations altogether.
They claim that it will cripple the industry considering the regulators’ bias for traditional fiat currencies.
But whatever side you’re on… our take is simple.
Regulators and the crypto industry should meet halfway.
Regulations cannot be entirely avoided.
In fact, regulatory measures on the crypto market that aim to protect crypto users across the platforms are fine (for the most part).
But tight regulations that eliminate the idea of free markets, and crypto freedom, as well as limit the potential of digital currencies, are no-nos.
A large number of nations, including many G-7 members, agree on the importance of crypto regulation. They want more rules for crypto. But do we?
See also: Erik Voorhees, CEO and founder of ShapeShift.io, who said… institutions will protect Bitcoin from government overreach.
As far as that goes, Voorhees noted his belief that “the greater the mix and diversity of holders, the better,” before continuing…
“Democratization of control over money is the essence of Bitcoin.”
Our man in the mix: Free thinker and former congressman, Ron Paul, believes the government is “watching very closely” to see what happens with cryptos.
But having said that…
“We should do whatever we can” to legalize Bitcoin, says the libertarian hero (and an outspoken critic of the Federal Reserve). Rock on, Ron.
S&P DOW JONES INDICES TO LAUNCH CRYPTOCURRENCY INDEXES NEXT YEAR
Here are the details: S&P Dow Jones Indices, a division of financial data provider S&P Global Inc, announced that it will launch crypto indices in 2021.
The S&P will be using data from its partner Lukka, a blockchain data provider based in New York, to launch the indexes on more than 550 cryptocurrencies.
Major traditional financial companies getting involved in crypto is big-time!
Right on point… Peter Roffman, global head of innovation and strategy at S&P Dow Jones Indices, said something else that was important…
He said “with digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks.”
And we fully agree.
This move by the S&P Dow Jones crew will only help Bitcoin, Ethereum, and the other cryptocurrencies gain mass exposure.
What made these institutional firms venture into digital currencies?
For one, we don’t think it's merely because of industry buzz. But it is because of the credibility and promising nature of blockchain technology.
And let’s be real… this small community of crypto heads have all built their credibility, their philosophy, and their technology from the ground up.
Cypherpunks and libertarians have been leading the way for years. And this kind of mainstream adoption has been something they’ve anticipated for a long, long time.
Lastly, in other bullish news…
BITCOIN COULD POSSIBLY EVOLVE INTO A GLOBAL ASSET, SAYS BLACKROCK’S CEO
BlackRock’s CEO Larry Fink says Bitcoin can possibly ‘evolve’ into a global asset.
You might wonder if we’re talking about BlackRock’s Larry Fink…
The guy who called cryptocurrencies an ‘index of money laundering’ and extremely ‘speculative’ investments, just three years ago.
Well, yes… exactly the same guy.
The CEO of the world’s largest asset manager has turned bullish on Bitcoin last week while speaking at the Council on Foreign Relations…
With the former Bank of England Governor, Mark Carney.
Here’s what he said: “Bitcoin has caught the attention and the imagination of many people.” Still untested though. And still pretty small relative to other markets.
And he added: “Can it evolve into a global market? Possibly.”
Fink isn’t the first of his kind to change his mind about BTC and cryptocurrencies.
In fact… he adds to the number of huge figures in traditional finance that previously talked about cryptocurrency in a negative light…
But are now diving head first into the Bitcoin rabbit hole.
Like who? Well, JP Morgan’s head honcho Jamie Dimon for one. And billionaire investor Stanley Druckenmiller to name another.
With all these legends changing tunes towards cryptocurrencies… new all-time highs for Bitcoin should be coming. We see good times ahead, folks.
MORE REDPILL CRYPTO NEWS
Crypto for pizza? Now possible as Pizza Hut Venezuela accepts cryptocurrency payments. Order your next pepperoni pizza with crypto, will ya?
Private German bank starting a cryptocurrency fund next year
Nigel Farage, leader of the British Brexit Party, said that it’s “crucially important” for people to get into crypto amid the pandemic.
Crypto Industry says no to Congress’ Stable Coin Proposal
Spotify is hiring for Payments roles that include a focus on the zuck buck aka Facebook’s Diem (ex-Libra project). One role is for potential moves with crypto, stablecoins, blockchain, and central bank digital currencies (CBDCs).
Australian crypto exchange accidentally leaks personal data of 270k users
Blockstack, a team we rate highly, may have successfully transformed its STX token from securities registration to commodity status.
DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They’re meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security.
All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.
Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision. © 2020 Redpill Crypto Research. All Rights Reserved.