Greetings Friends!
We are emailing this one out because its a good one 👊
China is scared of Bitcoin and it should be
Last month China kicked all the bitcoin miners out of the country. The crypto markets plummeted and all the naysayers cheered. As the Chinese miners disconnected from the network the “difficulty adjustment” (a stabilization feature built into the network to ensure miners can stay profitable) also dropped making mining much more profitable for the remaining miners and therefore encouraging new miners to join. Now prices are back on the rise and China has proven that they cant stop the Bitcoin machine. This was the largest test of the network by way of nation state “attack” we have ever seen and besides some short term price action and reduced hash rate Bitcoin has shrugged it off and is back accumulating millions of new users by the week. We feel this is some of the most Bullish news we have ever come across that is yet to be factored in to the “value” proposition of the network.
Binance Banned
On 26th June the Financial Conduct Authority (FCA) issued a consumer warning regarding the cryptocurrency platform Binance. The mainstream media lept into action with ‘Binance Banned’ headlines. This is infact misleading. It was enough negative attention to get Binance to freeze withdrawals of GBP to British accounts. Since then a number of retail banks have blocked payments to Binance.
The FCA confirmed on 26th June that ‘Binance Markets Limited is not permitted to undertake any regulated activity in the UK’.
In the same briefing the FCA stated ‘ while we don’t regulate cryptoassets like Bitcoin or Ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities’.
Binance provide an extensive platform for traders with a huge variety of trading options, futures and other market tools. It is absolutely not for the faint hearted and mixing crypto with leveraging options would undoubtedly mean a lot of inexperienced traders would lose money.
In summary, Binance hasnt been banned but it is in trouble for offering regulated services without a license.
Buying Bitcoin through a Business
We got our first Founding Few subscriber yesterday 🙏 and as a thank you we will be writing a special substack on the benefits of buying Bitcoin through a business. If you wish to read this click the subscribe button bellow
Bitcoin Whales are buying again
As noted by Willy Woo in his recent on-chain data analysis, even as the price was reacting to the China Ban FUD (Fear, Uncertainty and Doubt) the strong handed Whales (Large bitcoin holders) are buying heavily.
Nonce Finance
This might have been a minor stroke of marketing genius. Before we get too juvenile lets look at what the company actually does:
Nonce Finance provide “NFT Fractionalization protocol with high liquidity NFT ERC20 bridge”…
Breakdown
What is an Non Fungible Token (NFT)? In the real world the Mona Lisa is a unique painting. There is only one in existence but the image is widely distributed online, on postcards and posters etc. Its everywhere. Despite there being copies of it everywhere the value of the original is intact. Everyone knows the Mona Lisa hangs in the Louvre Museum and is one of the most valuable paintings in the world. People will pay to see the original. No one pays to see a copy because even a perfect replica is still just a replica.
A NFT is kind of like a certificate of authenticity and a location for a digital work.
‘I own this digital file and that file lives here’.
NFT’s are typically stored on a blockchain (notably Ethereum) which makes them extremely hard and expensive to tamper with. This means copies of the digital work can be doing the rounds on the internet but we can still identify who the real owner is (whoever holds the NFT) by looking at the NFT on the blockchain. Being able to prove ownership in such a transparent way could well help content creators profit from the work they create.
So what are Nonce Finance doing?
In short they are giving people the option to own a portion of an NFT. So instead of there being one owner there could be loads, not dissimillar to a shares in a company or a timeshare or anthing else these days. Like with a lot cutting edge technology its hard to envisage the value in the early days. Give it time though.
In the meantime Nonce Finance seem to have taken the teasing quite well…
Until next time
The Wealth Gap