cropped-Weekly_Wrap_Article_Image-scaled-4.jpg

 

1. Bitcoin becomes legal tender in El Salvador

The Facts:

  • On Tuesday, El Salvador became the first country to adopt Bitcoin as legal tender.
  • Salvadoran citizens received $30 in BTC upon registering in the official Chivo wallet.
  • In preparation for the law coming into effect, El Salvador has installed 200 Bitcoin ATMs.

Why it’s important:

  • As roughly 70% of El Salvador’s citizens are unbanked, Bitcoin could play an important role in democratizing access to digital banking.
  • This move could set precedence for other nations to evaluate the possibility of adopting Bitcoin.

 

2. Bitmain sends mining hardware to Georgia

The Facts:

  • Bitmain, one of the largest mining hardware manufacturers, has entered a Bitcoin mining hosting deal with Bit5ive and ISW Holdings.
  • The agreement will bring 56’000 mining rigs to Georgia, with the deployment to be completed in October 2022.
  • The rigs represent a hash rate of about 5.6 exahashes per second (EH/s) according to estimates, which would currently amount to about 4.3% of the entire network.

Why it’s important:

  • In reaction to China’s crackdown on Bitcoin mining, many mining companies are moving their infrastructure to other jurisdictions.
  • The Bitcoin network’s hash rate is rising again after the decrease throughout May and June, indicating more mining hardware going online again.
BTC_Hashrate
Source: blockchain.com, Bitcoin Suisse Research

 

3. Coinbase responds to SEC notice

The Facts:

  • Coinbase published a blog post reacting to the SEC’s intentions to sue the exchange over their planned yield-generating product Coinbase Lend.
  • On Twitter, CEO Brian Armstrong shared his views on the actions by the SEC.
  • With the launch of the product planned in a few weeks, Coinbase will have to postpone this offering.

Why it’s important:

  • In an unusual move, Coinbase publicly criticizes the lack of communication and clear guidance from the regulator.
  • The SEC’s stance on Coinbase Lend could also have an impact on other US providers’ offerings related to yield-generating products.
  • Buying the dip 😉 150 new coins added. #BitcoinDay #BTC
    Nayib Bukele, President of El Salvador

 

4. FTX launches NFT marketplace

The Facts:

  • FTX has launched an NFT marketplace that enables users to mint and trade NFTs.
  • Founder Sam Bankman-Fried announced that the NFTs will support both Ethereum and Solana.
  • Currently, the NFTs may only be traded on FTX, with support for deposits and withdrawals arriving in a few weeks.

Why it’s important:

  • FTX is the third major cryptocurrency exchange to launch an NFT platform, following the lead of Binance and OKEx.
  • This step increases consumer choice by offering more options for cross-chain transactions.
  • Number of the week
    550 Bitcoin
    amount of bitcoin purchased by the government of El Salvador

 

5. Daily ETH issuance negative for the first time

The Facts:

  • On September 3, the daily net emission of new ETH was negative for the first time.
  • Since the change to Ethereum’s monetary policy in the beginning of August, over 200’000 ETH have been burned.
  • This negative daily issuance is connected to higher gas fees, partially caused by the NFT hype.

Why it’s important:

  • The new burning mechanism, which has a direct impact on the available supply of ETH, is based on block space demand.
  • With Ethereum’s planned migration to proof-of-stake, ETH issuance is expected to decrease further, possibly causing ETH supply to become deflationary.

 

In other news

  • SEC investigates Uniswap Labs (via The Block)
  • dYdX trading platform launches governance token (via The Block)
  • Ukraine legalizes cryptocurrencies, removing legal uncertainty (via CNBC)
  1. Homepage
  2. Research
  3. The Weekly Wrap – 1...