Bitcoin converts trapped renewable energy into money. View in browser

“The most valuable startup of the last decade didn’t raise money, didn’t have employees, gave away the cap table, and let anyone invest.” ~  Naval Ravikant, co-founder of AngelList about Bitcoin

Market State

The cryptocurrency markets experienced quite a correction last week. The whole cryptocurrency market dropped by 11% during the week before recovering on Monday. The dip was possibly the result of a whale (a person who holds 5000 BTC or more) who sold a large amount of Bitcoin bringing the price of Bitcoin down in a matter of 24 hours. The whale sold 25000 Bitcoin on Coinbase which was worth about $215 million at the time and bought it back at a lower price for $200 million and pocketed the difference and still holds the same amount of Bitcoin. It’s obvious that there are some big players in the market now, but as more people join the market, the opportunities of these whales to make such big price changes will be less and less in the future.

One Satoshi (0.00000001 BTC) the smallest unit of Bitcoin is now worth more than more than some national currencies such as Iranian Rial, Vietnamese Dong and Indonesian Rupiah. According to a Macro Chart by a Twitter user called Bitcoin Charts, Bitcoin has always been in bull market since inception. In 2018 Bitcoin dropped 80% from its all time high. However if you look at the lowest price point during a given year and compare it to the following year’s lowest price then the macro level chart shows that Bitcoin has never actually been in a bear market.

Check the latest Bitcoin Price
Quiz of the week

Which one of the following statements is not true?

  1. Hash function takes any data and returns a fixed-length string of numbers and letters
  2. Hash rate is number of hashes per block the Bitcoin network is performing
  3. Hash function is one-way operation as it’s nearly impossible to derive the original data from the hash

Scroll down to see the answer at the end of the newsletter.

Top stories of the week
Facebook’s Stablecoin Whitepaper Coming June 18

Facebook has been building its own stablecoin for almost a year and is planning to release its whitepaper on 18th of June which explains the basics of Globalcoin. The actual stablecoin is set to be launched in the Q1 of 2020. Globalcoin will be used within Facebook apps including Facebook Messenger and Whatsapp. Facebook is also planning to make its stablecoin available through physical ATM machines. Last week Facebook announced that they are looking for node operators to confirm their transactions. Facebook intends to charge each node operator $10 million for a license and they’re looking to sell 100 licenses. This will generate $1 billion in licensing fees for Facebook. The fund will likely be used to back the stablecoin with basket of fiat currencies.

10 Year Jail For Dealing With Cryptocurrency in India

A new bill in India proposes a 10-year jail sentence for those who mine, hold, sell, transact or deal with cryptocurrencies directly or indirectly. Offenders may find themselves behind bars anywhere between 1 to 10 years as well as fines amounting to three times their profit. If the draft of the bill passes, cryptocurrency holders will have 90 days to declare and dispose of any cryptocurrency holdings. In the same bill they also proposed an introduction of a new official national cryptocurrency, called the Digital Rupee. According to crypto enthusiasts if the new law is approved this will be a great advertisement for cryptocurrency and will drive up the prices of it. If it is not passed Indians will still celebrate the freedom to use cryptocurrencies.

Binance to Launch a Pound Stablecoin

Binance has confirmed that it will issue its own stablecoin called Binance GBP (BGBP) in the coming month or two. The stablecoin will be 100% backed by the British pound. The goal is to make stablecoins available for more fiat currencies, such as the Euro and the Yen. However there are no plans to launch a stablecoin backed by the US dollar as Binance prefers not to deal with regulatory oversight from the United States. The exchange will make money off of interest on fiat deposits similar to Tether. Binance is the largest holder of Tether according to Tether’s Rich List. Binance’s new stablecoins could reduce the market domination of Tether which represents 50% of stablecoin volume on the exchange. Binance plans to offer better transparency for its stablecoin which could encourage users to switch from Tether to Binance GPB.

Crypto Lunch With Warren Buffett

For 20 years Warren Buffet, an Amercian investment and philanthropy icon has been auctioning off 3 hour Power Lunch with him. Warren donates the funds from his lunch to San Francisco-based charity Glide Foundation, which provides meals for the city’s homeless, offers support to domestic violence victims, and helps people find shelter. Last year’s winning bid was $3.3 million. This year a Tron cryptocurrency founder, Justin Sun paid $4.57 million to have lunch with Warren Buffet who called Bitcoin “rat poison squared.” Justin has the opportunity to invite up to 7 people to accompany him so he invited blockchain industry leaders including Ethereum founder Vitalik Buterin, Litecoin founder Charlie Lee and Binance CEO Changpeng Zhao. Justin hopes to introduce the progress in the crypto industry and to change Buffet’s views on cryptocurrencies.

Bitcoin Mining Mostly Uses Renewables

CoinShares research team released their third report on the economics of Bitcoin mining. The report revealed that 74.1% of Bitcoin mining is actually powered by renewable energy. Bitcoin mining is mainly located in global regions where ample unused supplies of renewable electricity available. The Bitcoin network is growing, its hashrate grown from 40 EH/s (1018 quintillion hashes per second) to approximately 50 EH/s, an increase of 25% since CoinShares’ last report of November 2018. The report also claims that at current prices, the average miner is highly profitable. Breakeven cost of Bitcoin mining is around $3,300 with very cheap electricity and brand new next-generation mining gear. Bitcoin is not an environmental disaster in fact mining converts trapped renewable energy into money.

Apple announced CryptoKit to Developers

Apple announced CryptoKit as an update in its iOS 13 software during annual WorldWide Developers Conference (WWDC 2019). CryptoKit is a new framework that will allow developers to integrate functions like hashing, encryption and the use of public and private key management. Founder of TrustWallet, Viktor Radchenko tweeted that CryptoKit brings Apple one step closer to turning iPhone into a hardware wallet. Apple might be planning to catch up with Samsung, which introduced a built in wallet called Samsung Blockchain Wallet in its Galaxy S10 model. But some crypto enthusiasts are less optimistic as CryptoKit doesn’t provide a use for cryptocurrencies thus a hardware wallet is unlikely to be integrated in the near future.

Tweet of the week
Meme of the week
Crypto word of the week

The hash rate is the rate at which hashes of a block are being solved. The more miners join a cryptocurrency network, the higher the network hash rate is.

Quiz answer

Which one of the following statements is not true?

The correct answer is “B”.

Hashrate is number of hashes per second the Bitcoin network is performing.

Thank you for reading :) 

Have a great day!


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