Crypto Industry News #1

Buffett retracted his words? Bitcoin has received an official status for the first time and it will be mined on volcanoes. The bitcoin hashrate fell by a quarter. Is Elon Max incorrigible? The cost of the Automata token has increased by 123 and a half times.

This month, Brazilian digital bank Nubank bought Easynvest broker and a couple of other companies that offer clients investments in digital assets and traded exchange-traded funds based on bitcoin. Then, Warren Buffett’s holding company Berkshire Hathaway invested $500 million in the Brazilian digital bank Nubank.

Warren himself spoke very negatively about cryptocurrencies, calling them speculation or gambling, just an entry in a distributed registry.

“You don’t invest when you do it. You’re speculating. There’s nothing wrong with that. If you want to gamble, someone else will come and pay more money tomorrow, this is one of the games. This is not investing”, — Buffett said.

This is not the first time that major investment players have spoken negatively about the crypto industry as a whole or individual segments associated with it, while companies under their leadership continue to use digital assets and blockchain in their work.

Note:

Nubank is a digital bank and the largest financial technology company in Latin America. It provides customers with the opportunity to get a digital account, an international credit card, a loan, life insurance, as well as to invest funds.

The President of El Salvador, Nayib Armando Bukele, told the world on Twitter about the signing of the document adopted by the country’s parliament. It sad that bitcoin has become an official mean of payment in the country together with the US dollar, which replaced the historical Column. After signing, the document immediately entered into force, but the creation of the necessary financial infrastructure for the operation of Bitcoin will take 90 days from the moment of signing. After its creation, the price of goods and services can be specified in bitcoins, and their acceptance will become mandatory.

The country is planning to create an official crypto wallet in the amount of $ 150 million, which is approximately equal to four thousand bitcoins. This should sufficiently guarantee the possibility of instant exchange of bitcoins to US dollars and back. Such an exchange within the country will not be taxed on enrichment, but the exchange will take place at the market rate. At the same time, for accounting purposes, the law emphasizes that the legalization of bitcoin does not mean a complete replacement of the US dollar, it will still be used in accounting as the base currency.

Also in El Salvador, by order of President Bukele, its own mining pool will be created on completely eco-friendly and renewable thermal energy. The construction and development of the pool will be managed by the state energy company LaGeo. Up to 195 MW of electricity generated by volcanic activity can be allocated to power the pool.

Against the background of the negative attitude towards bitcoin and altcoins of the Chinese authorities, who are implementing a program to ban mining in their territories, as well as tighten the regulation of the financial market of cryptocurrencies. The bitcoin network hashrate began to drop to 112.436 Ehash/s. Miners are denied service by some exchanges, mainly with KYC verification. The crypto miners themselves, according to unconfirmed reports, began to transfer their production to other countries. The situation worsened with the increasing complexity of the network, which rose to the mark of 21.048 T. Nevertheless, these events did not affect the operation of the network as a whole, which continues to operate from the moment of its launch on 01.09.2009 to the present day.

Being asked about the current high volatility in the cryptocurrency market, South African billionaire Magda Wierzycka, the founder of Sygnia, accused Tesla and SpaceX CEO Elon Musk of manipulating the cryptocurrency market in The Money Show podcast.

“If Musk did the same with a company whose shares are traded on the stock market, the US Securities and Exchange Commission (SEC) would subject him to severe sanctions. After buying $1.5 billion worth of Bitcoin for Tesla, Musk used his influence on social media to raise the price of the asset”

The Tesla founder has clashed with the SEC in the past in 2018. He was then accused of manipulating the share price of his company. After his tweet that he is ready to buy back shares of Tesla at $420 apiece, which provoked a sharp increase in securities by 11%. As a result of lengthy legal proceedings, Elon was forced to leave the post of chairman of the board of directors for 3 years, as well as pay a fine of $ 20 million.

Elon Musk’s voice gained additional weight in the crypto world in early February, after the purchase of $1.5 billion worth of bitcoins by Tesla. At the end of the following month, the automaker sold part of the bitcoins with a profit of $101 million, the total amount of the transaction was $272 million. Also in March of this year, the car giant introduced the ability to pay for its products with bitcoins.

In May, there were rumors about the sale of its bitcoins by the carmaker, which provoked a drop in the value of the asset to a local minimum of $30 thousand. Elon Max himself denied this information, saying that Tesla did not sell a single coin. However, his company temporarily refused to accept bitcoins as payment for cars. According to Musk, the mining of cryptocurrencies causes huge damage to the environment and his company can not afford to accept bitcoins as payment, until it begins to mine on renewable energy sources.

The ATA token was announced on the Binance Launchpool platform. Coins are awarded for staking on certain pools for this purpose, their users can avail BNB, BUSD and DOT. After the listing, the price of the cryptocurrency rose sharply to $4.5 from the initial value of 0.04139 cents, which is equal to an increase of 12350%. After that, the correction began, which continues to this day.

Listing on Finance is often accompanied by a sharp increase in price, especially after the presentation on the Launchpool platform, for example, in mid-March, the Alice cryptocurrency reached a growth multiplier of 600 units. Alice is awarded for staking BNB, BUSD, and CHR in a particular pool.