Comes every sunday Hodler’s digest will help you keep track of every single important message that happened this week. The best (and worst) quotes, highlights of adoption and regulation, leading coins, predictions, and more – one week on Cointelegraph in one link.
Top Stories This Week
PayPal will offer crypto payments from 2021
When rumors started circulating in June PayPal planned to start a crypto serviceThe fintech giant had tight lips.
But this week PayPal was ready to show its hand and confirm that it will Enable its 346 million active accounts to buy and sell cryptocurrencies.
It is no exaggeration to say that this is a big deal for general digital asset adoption. This will introduce large numbers of everyday consumers to crypto for the first time.
PayPal initially supports Bitcoin, Ether, Bitcoin Cash and Litecoin. US account holders will receive this new functionality first, and “select international markets” will follow later.
No fees will be charged for conversions until the end of this year. However, merchants cannot support crypto transactions until the first half of 2021.
Dan Schulman, CEO of PayPal, announced the news, saying digital currencies offer “clear advantages” in terms of financial inclusion, payment speed and the ability for governments to distribute money quickly to citizens.
Bitcoin blows up $ 13,000 after PayPal’s entry into cryptography
Unsurprisingly, the big news from PayPal served as dynamite for Bitcoin. The world’s largest cryptocurrency cracked $ 13,000 and won more than $ 1,000 on Wednesday. This is only the third time since its record high in 2017 that BTC has reached this level.
All of this strengthens Bitcoin’s position. Even before the announcement, BTC had a sustained five-digit period after spending most of the past three months trading above $ 10,000.
Mati Greenspan, founder of Quantum Economics, said the PayPal link was undeniable: “I have no doubt that this news is almost entirely responsible for today’s expanded profits.”
Other cryptocurrencies that PayPal will support also posted significant gains on Wednesday. ETH grew by 8%, BCH by 9% and LTC by a whopping 15%.
And it wasn’t just the crypto industry that went wild. According to the news PYPL’s share price hit a record high. Unfortunately, the surge wasn’t enough to prevent Bitcoin’s market cap Overtaking PayPal on Thursday.
It is rumored that PayPal has its eye on taking over crypto administrator BitGo
Attention now inevitably turns to what PayPal’s offering will look like, whether crypto exchanges need to be concerned, and what plans the company has for the future.
We are slowly getting an idea of what to expect. PayPal has partnered with Paxos to provide the service and obtained a conditional cryptocurrency license from the New York State Department of Financial Services.
On Friday reports from Bloomberg indicated that PayPal is looking to acquire a crypto asset custody firm. The fintech giant is currently in talks with BitGo to help investors store digital assets securely.
However, that report added, “The talks could still fall apart and PayPal might choose to buy other destinations.”
Meltem Demirors, the chief security officer of the crypto asset manager CoinShares, predicted this PayPal will try to bring a stable coin to market “In the next six to 12 months.” This would be a stab in the tail for Facebook considering how PayPal does Left his contested scale project.
Not everyone in the crypto industry is excited about the latest news from PayPal
Yes, PayPal’s plans were enthusiastic, and analyst Willy Woo suggested it The service could easily triple Bitcoin’s user base. But not everyone cracks the champagne.
Individuals buying crypto through PayPal cannot withdraw it to an off-platform wallet, leading critics to say it is another case, “Not your keys, not your coins.”
SatoshiLabs, the team behind the Trezor hardware wallet, wrote: “When millions of newcomers are brought into Bitcoin by PayPal, there can be a very serious information gap that jeopardizes their experience and undermines the core principles of cryptocurrency.”
It is also concerned about how PayPal’s clout in electronic payments is “being interpreted as expertise in crypto.”
Given Satoshi Nakamoto’s vision of decentralizing finances and removing middlemen, some crypto purists will also be appalled when PayPal wades into space.
But there are other practical aspects to worry about – and one of them is taxes. Any sale of cryptocurrency becomes a taxable event, especially if it is sold for more than what it was bought. It is very likely that the effects on Crypto Noobs will be lost.
And in other news …
Of course there was a lot of other news in the crypto and blockchain space this week.
The Chicago Mercantile Exchange silently overtook BitMEX the second largest futures market in the world – borne by the increasing institutional demand. All of this came about as crypto fund manager Grayscale Investments increased assets under management by $ 1 billion within a week.
Messari data showed that The daily transaction volume on the Ethereum network is twice that of Bitcoin – Getting the blockchain on track to process $ 1 trillion this year. And in messages that leave angry DeFi users sigh of relief, a ConsenSys developer predicted the Ethereum 2.0 beacon chain genesis will emerge will happen in the next six to eight weeks.
Speaking of DeFi, the Funds included in logs increased by $ 1 billion As analysts predicted, we saw a bull run after the US election. In the meantime, the acting US currency auditor predicted so DeFi could make the financial services offered by banks obsolete – Just like how emails disrupted the postal service.
Winner and Loser
At the end of the week, Bitcoin is at $ 12,994.86, Ether at $ 409.13 and XRP at $ 0.25. The total market capitalization is $ 395,014,912,585.
Among the top 100 cryptocurrencies are the three best altcoin winners of the week Quant (47.26%), Reserve rights (40.41%) and Ocean Protocol (33.23%). The top three altcoin losers of the week are Crypto.com coin (18.81%), ABBC coin (17.74%) and HedgeTrade (16.31%).
For more information on crypto pricing, see Market analysis by Cointelegraph.
The most memorable quotes
“There goes wBTC. Most of the packaged Bitcoin is held by BitGo. PayPal is not a good actor in this area. Position accordingly. ”
“When millions of newcomers are brought into Bitcoin by PayPal, there can be a very serious information gap that jeopardizes their experience and undermines the core principles of cryptocurrency.”
“Crypto is about financial freedom. It’s modern money that anyone can really control. We’re happy to see a new audience gain access, but a no-custody approach limits the ability to self-custody or freely trade your crypto. “
Peter Smith, CEO of Blockchain.com
“This is definitely a bullish sign for Bitcoin and other cryptocurrencies. Crypto is all about trust, and PayPal has a very high level of trust among its users […] If the service’s UI is run properly, it will add millions of new users every month. “
Alex Mashinsky, Celsius CEO
“We are committed to working with central banks and regulators around the world to offer our support and make a meaningful contribution to shaping the role digital currencies will play in the future of global finance and commerce.”
Dan Schulman, PayPal CEO
Forecast of the week
According to the Winklevoss twins, an increase in Bitcoin price to $ 500,000 is inevitable
Unsurprisingly, the Winklevoss twins were full of excitement following PayPal’s announcement.
Tyler Winklevoss tweeted:: “PayPal is an important bridge between the mainland and the island of crypto. The legacy funding diaspora is happening, and this is the type of infrastructure that will help make it happen. Soon there will be a flip and crypto will be the mainland and the island will be fiat. “
This week, the twins have doubled down on their prediction that Bitcoin will hit at some point $ 500,000and told podcast host Peter McCormack that it’s a matter of when and not if.
“I would argue that $ 500,000 Bitcoin is actually pretty conservative and the game hasn’t really started yet.” Cameron noticed.
FUD of the week
The first ransomware attack in 2020 hits the electoral infrastructure in Georgia
A ransomware attack on Hall County’s government systems, Georgia impacted critical voting infrastructure.
“Critical systems” within its networks have been affected, and CNN says the incident could be the first ransomware attack in the 2020 elections.
Officials said the county signature database and electoral district map were badly affected by the hack, but stressed that the voting process for citizens was not affected.
Brett Callow of cybersecurity firm Emsisoft told Cointelegraph: “There is a very real risk that they will shake voters’ confidence in the integrity of the vote, especially since confidence may already be quite low.”
OKEx’s lips will remain sealed if the crypto withdrawal is suddenly frozen
There are still no signs that OKEx cryptocurrency withdrawals are back to normal – nine days after they were suddenly suspended.
The ongoing suspension has been a mystery to many, but exchange officials claim the move was entirely due to one of the company’s key private owners working with a Chinese public security bureau.
Jay Hao, CEO of OKEx, told Cointelegraph that the company is committed to resuming withdrawals as soon as possible, adding: “We apologize from the bottom of our hearts.”
Some users are starting to warn that their patience is waningExpression of frustration at the lack of transparency of the processes.
One tweeted: “Where is your CEO Jay Hao? He has to interact frequently and provide updated information. When something happens to Binance, CZ tweets every hour. “
And another wrote: “It’s a bit strange that one of the largest exchanges in the world doesn’t let us withdraw money for so long.”
Filecoin creator denies strike allegations
The creator of the blockchain-based data storage platform Filecoin has dismissed accusations that miners of his token went on strike as “nonsense”.
Juan Benet denied the claims, claiming on Twitter: “What happened is that miners grow more slowly than before the start. This is in large part because the network is no longer subsidizing its pledge and fee costs – fees now cost real money, and miners have to adjust the growth rate to match token flow. “
It has been reported that five of Filecoin’s biggest miners shut down thousands of oil rigs to protest the blockchain’s economic model. This means that miners must use FIL as collateral when making a block. The problem is that a lot of miners don’t seem to need enough tokens.
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