Anonymous fund plans to donate $75M in Bitcoin to crypto anonymity-focused startups View in browser

“The children born today may never know a world where banks control money. Money will be an integral protocol of internet as a content type that can be transmitted by anyone, anywhere.” ~ Andreas Antonopoulos, blockchain expert

Market State

Over the last week the total cryptocurrency market capitalization dropped from $239 billion to $222 billion. During the week Bitcoin dropped below $8500. Currently the price of Bitcoin is trading around $8151. Ether is sitting around $176 which is 6% drop compared to last week. Bitcoin Cash dropped by 19% to $239 since last week. There are less than 6 months until Bitcoin’s 4th halving of block reward. Bitcoins mined by miners per block will be reduced from 12.5 to 6.25 Bitcoin. With it inflation rate of Bitcoin per annum will fall to 1.8% and even lower after each following halving. Scarce assets like Bitcoin tend to increase in value as the demand grows. The number of Bitcoin ATMs installed worldwide has now surpassed a new milestone surpassing 6000. This is an indication that people are becoming more aware of it and cryptocurrency is gaining acceptance.

It’s becoming clearer that tech companies are entering the personal finance space. Apple rolled out a credit card in partnership with Goldman Sachs. Facebook announced it was launching Facebook Pay, a payment service across its platforms, including Messenger, WhatsApp and Instagram. The world’s most popular search engine, Google is also moving into banking. However this is not a threat to cryptocurrency industry. Even central banks around the world are panicking that they are losing power to Bitcoin and cryptocurrency and rushing to issue their own digital currency. Even if central banks issue digital currency it won’t solve the issues of traditional monetary system. Central banks will continue printing billions making their fiat worthless.

Check the latest Bitcoin Price
Quiz of the week

What is Wrapped Bitcoin (WBTC)?

  1. A protocol for sending Bitcoins to a company
  2. An Ethereum based token that is 1:1 backed by Bitcoin
  3. The first Bitcoin transaction in each block

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

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Top stories of the week
UK Tax Authority Says Cryptocurrencies Are Not Money In Its Updated Tax Guidelines

The UK’s tax authority, Her Majesty’s Revenue and Customs (HMRC) has amended its cryptoasset tax guidance for both businesses and individuals on the 1st of November. The agency notes that the guidance deals with the tax of “exchange tokens” such as Bitcoin. Guidance on utility tokens and security tokens will be released in the near future. Companies engaged in trading exchange tokens, including selling goods or services for crypto or mining, are liable to pay for one or more different types of tax. Depending on the specific transaction, those taxes include income tax, corporation tax, capital gains tax, stamp taxes and National Insurance contributions. Private individuals are liable to capital gains tax when they sell crypto assets. If individuals received cryptoassets from employers, mining or airdops, then income tax and National Insurance contributions are also due. The HMRC stated that it does not view any of the existing cryptocurrencies as money or currency and recognized that the cryptocurrency industry is fast paced and developing all the time. Therefore HMRC will consider each case on the basis of its own facts and circumstances.

Google to Offer Checking Accounts in Partnership with Citigroup

Google will be launching checking accounts through a partnership with banking giant Citigroup and lender Stanford Federal Credit Union. The Wall Street Journal reported that the three firms are working on a project called Cache, which is expected to launch next year. Big tech companies are increasingly getting into the banking industry, although regulators have already been investigating whether they have too much control over user information. Caesar Sengupta, general manager at Google, said that Google wouldn’t sell checking-account users’ financial data. However analysts have said that Google’s move is not about finding a new revenue stream but to gain insights into consumer purchase behavior. For many cryptocurrency advocates tech firms pushing into finance is more sign of increased surveillance, which in turn could push people toward decentralized cryptocurrencies.

The Royal Bank of Canada to Launch a Cryptocurrency Exchange

The largest bank in Canada by market capitalization, Royal Bank of Canada (RBC) which has more than 16 million customers, is exploring to build a cryptocurrency trading platform according to Canadian news outlet the Logic. Report claims the bank will allow its customers to buy, sell and transfer cryptocurrencies such as Bitcoin and Ether. The plan will also include cryptocurrency bank accounts for customers. Previously RBC had banned its customers from buying cryptocurrencies with the use of their credit cards. The bank hasn’t officially confirmed plans for the cryptocurrency platform. If the rumors are true then the Canadian bank will become the first bank in the country to offer such services. RBC has even registered four cryptocurrency banking related patents in Canada and the United States and has been exploring possible blockchain technology banking applications since 2015.

Pornhub Considers to Pay Models in Crypto After PayPal Blocked All Transactions Related to the Site

Top adult entertainment site Pornhub has announced last week that PayPal had abruptly blocked all transactions related to the site. The ban has impacted the livelihood of more than 100000 adult performers. Pornhub is a top 10 global website just behind Twitter and ahead of Instagram and Wikipedia. The company said it was devastated by the move. Currently Pornhub is using traditional payment systems such as wire transfers which are slow and can also be frozen anytime if banks get a hint that porn is related to the payments. Crypto community online have been hinting and posting “Bitcoin fixes this” meme. Pornhub had announced already last year that it would accept as payment and pay out a cryptocurrency called Verge, but after PayPal’s decision Corey Price, vice president at Pornhub said that they are evaluating adding other cryptocurrency payout options. As more financial pressure put on the adult industry, it is more likely it will increasingly turn towards censorship-resistant cryptocurrencies. 

Anonymous Fund Plans to Donate $75M in Bitcoin to Crypto Anonymity-Focused Startups

An anonymous fund called the Unknown Fund has announced that it plans to invest and donate $75 million in Bitcoin to those startups who are building tools for privacy and anonymity. Organizers of the fund are from different countries who met on 4chan, an anonymous imageboard site. The fund stated in its press release that “The protection of personal data as one of the main challenges for modern man. Now the main goal of large corporations is to collect as much information as possible about the personal lives of people, and then use it for their enrichment. The use of data has already become a powerful tool for manipulating people.” According to the Unknown Fund technology such as blockchain and cryptocurrencies protect the rights and freedoms of people and sees it as a chance for humanity to create a new environment, a new and honest monetary system. The fund also added that it has developed a number of strategies and methods which will be announced later.

Crypto Market Leaders Share Their Worst Banking Experiences

CCN.COM crypto news site asked several leaders in the cryptocurrency space about their banking service experiences. Not surprisingly it turned out that many of them were not too satisfied with them. Some were prevented from accessing their funds while others lost their accounts, or had to wait for very slow transfers for exorbitant fees.

Changpeng Zhao, CEO of Binance crypto exchange shared on Twitter his first negative experience with the Royal Bank of Canada as a teenager:I proudly deposit $10, only to find out they charge me $3.99 monthly. A couple months later, I owe them a bunch of money.”

A crypto trader Credible Crypto said the following: “I send international wire transfers all the time. It’s a major pain when I send a wire transfer on Thursday after 1PM it doesn’t reach my suppliers until Monday, which is kind of ridiculous. Also, I get charged anywhere from 30-60 USD in fees.

Andy Cheung, head of operations at OKEx told CCN: “A negative aspect of traditional banks is that they don’t run 24/7. They have complicated procedures in place and take too much time to process transactions. Many companies need to do business in other countries and settle urgent payments, but traditional banks often delay wire transfers or make it very difficult to wire money to certain countries.

Some banks have so many customers that they don’t mind losing a customer or two, therefore they can quickly unbank them if they do not like their line of business. Kraken CEO Jesse Powell said that in one case a bank shut down their account with 5 days notice sent by regular mail which arrived the day after the bank closed their account.

Even the former CFO of PayPal recently had his account closed without an explanation after being a customer of Bank of America for 20 years. It’s no surprise that many people are turning to cryptocurrency instead of old, slow and centralized banking service.

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Quiz answer

What is Wrapped Bitcoin (WBTC)?

The correct answer is “B”.

Thank you for reading :) 

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