Comes every saturday 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
Bitcoin loses 6% within an hour after Tesla stopped payments because of carbon issues
Already lost dominance in the crypto rankings when altcoins gained strength, things got worse for Bitcoin this week when Elon Musk made a shock announcement.
On Twitter, the billionaire CEO stated that Tesla car purchases with BTC had been discontinued due to concerns about the environmental impact of the cryptocurrency.
Although Musk said Tesla had no more plans to sell Bitcoin, he confirmed that the company is considering other cryptocurrencies that are much less reliant on energy.
BTC went into free fall after the sudden statement that seemed to surprise traders. It fell as low as $ 46,980.02 and struggled to stay up $ 50,000 since.
Backlash to Elon Musk’s bombshell as traders start buying the dip
Unsurprisingly, Musk’s statement was met with a barrage of anger by the crypto community.
Given that this blockchain’s energy consumption is nothing new, many have been confused about what has changed since Tesla invested $ 1.5 billion in Bitcoin a few months ago.
Some have accused the CEO of embarking on a “pump and dump” scam by manipulating the market with its 280-character missives. Others insisted that miners primarily use renewable energy – but data suggests this could be a slight embellishment. While 76% of miners sometimes use renewable energy, the University of Cambridge estimates that only 39% of all electricity used by cryptocurrencies to prove work is environmentally friendly.
Barstool Sports founder David Portnoy also came across Musk, accusing him of “playing with the futures of people and their fortunes”.
Others pointed out that proof of work is vital for Bitcoin, and tried to reassure investors that the cryptocurrency is proving to be resilient to criticism.
Saifedean Ammous, author of The Bitcoin Standard: The Decentralized Alternative to Central Banking, He didn’t neglect his words either, telling Musk, “If you haven’t switched your rocket and battery manufacturing to ‘more sustainable energy’ too, you’re going to look like some clueless hypocrite. The world needs a lot more solid money than your rockets and government subsidized electric cars.”
Ether breaks $ 500 billion market cap for the first time
ETH was inevitably involved in fueling the crypto market. But before the Tesla drama took place, it stole the show by hitting a number of astronomical milestones.
The second largest cryptocurrency in the world rose $ 4,362.35 – briefly drive up market capitalization $ 500 billion For the first time. It did so shortly after ETH entered an unprecedented territory, exceeding the $ 4,000 mark on Monday.
Ether’s parabolic surge resulted in a rating higher than Visa and JPMorgan’s.
While the effects of Tesla’s announcement remain sustained, analysts believe that ETH will hit $ 5,000 is still a question of if, not when.
DOGE rises when Elon Musk says he’s working with developers to “improve efficiency”.
Musk’s fingerprints weren’t just on Bitcoin this week. It seems like a lifetime since he hosted Saturday night live – and sent DOGE’s price is falling after the eccentric entrepreneur described the joke cryptocurrency as “hustle and bustle”.
Dogecoin lost 40% of its value in a period of 24 hours from last Saturday to Sunday, lows of $ 0.43. While some analysts had expected the altcoin to bounce back after it aired, the opposite was true.
However, the warnings of a devastating crash reminiscent of the fall of XRP in 2018 were unfounded – at least for now. In the last few days DOGE has gone upstairs again $ 0.50 on the back of two good news.
The altcoin reacted enthusiastically after Musk announced that it was working with the developers of Dogecoin to improve the efficiency of the cryptocurrency. A few days earlier, he had published a Twitter poll asking if Tesla should accept DOGE as a payment method. The markets have also been cheered on by Coinbase, confirming that Dogecoin is slated to be listed in the next six to eight weeks. All of this resulted in DOGE being one of the few winners in a sea of red.
This wasn’t the only drama DOGE faced this week. A number of “Dogecoin killers” stormed onto the stage. One of them was Shiba Inu, which increased dramatically after being listed on a number of high profile exchanges.
Unfortunately, Shiba Inu’s bark turned out to be much worse than its bite. The mint’s website said 50% The token stash had been sent to Ethereum co-founder Vitalik Buterin as a “burning” gesture as it was unlikely that he would use it. But in a shocking turnButerin took full advantage of the unsolicited donation and gave a large portion of his SHIB tokens to a fund that was providing relief to India in the fight against COVID-19. Prices have collapsed since then.
Coinbase revenue triples in the first quarter as exchange plans for banking-like services are planned
Following its listing on the Nasdaq, Coinbase released its first quarter earnings on Thursday – and as expected, the bull market helped the exchange secure a very healthy set of numbers.
Total revenue was $ 1.8 billion, or $ 3.05 per share, slightly less than analysts’ expectation of $ 3.07 per share. However, this is three times higher than that $ 585 million generated in the previous quarter.
Net profit also increased $ 771 million, quadruple what was seen in Q4 and 24 times higher than in the first quarter of 2020.
Coinbase has stopped giving detailed instructions for future performance. Warning: “It’s important for investors to remember that our business is inherently unpredictable.”
Unfortunately, this did not result in an increase in the COIN share price, which has moved ever closer to the COIN reference price $ 250 seen when it debuted in mid-April.
Veteran Wall Street analyst and New Constructs CEO David Trainer anticipates Coinbase stock will fall on $ 100 or even lower as competition increases and warns, “The company is unlikely to meet the future earnings expectations incorporated into its share price.”
Winner and Loser
At the end of the week, Bitcoin is at $ 49,594.02, Ether at $ 4,028.01 and XRP at $ 1.40. The total market capitalization is $ 2,329,213,762,738.
Among the top 100 cryptocurrencies are the top three altcoin winners of the week Shiba Inu, Polygon and Revain. The top three altcoin losers of the week are Dogecoin, Holo and Siacoin.
For more information on crypto pricing, see Cointelegraph’s market analysis.
The most memorable quotes
“We see Web3 as the future of the Internet, where everyone can own and control their own content.”
Matthew Gould, CEO of Unstoppable Domains
“We know that replacing gold as a store of value helps the environment […] A decrease in the consumption of big banks and coins will benefit society and the environment. “
Mark Cuban, Billionaire investor
“These moments have historically been good buying opportunities as they indicate panic in the market.”
“The emergence of digital property rights, whether through Bitcoin or NFT, is possibly the greatest opportunity for the financial inclusion of the bottom three billion frontier and emerging market consumers.”
Manuel Stotz, CEO of Kingsway
“The world needs a lot more solid money than your rockets and government-subsidized electric cars.”
Saifedean Ammous, Bitcoin Standard: The decentralized alternative to central banking author
“Coinbase is unlikely to be able to sustain future blowout profits once competition comes into the market.”
David trainer, CEO of New Constructs
“In the long term, I’m still very optimistic about Bitcoin and don’t think this announcement will have any significant impact on its price or adoption.”
Adrian Przelozny, Independent Reserve CEO
“Apart from a Black Swan event, I don’t see this rally ending anytime soon.”
Lex Moskovski, Analyst
“DOGE is a fad within a growing movement that will stay here.”
Nick Spanos, Founder of the Zap Protocol
“There are thousands of coins and DOGE is in that category that is really useless. They are just utility tokens with no underlying value or use case, and they will eventually go away. “
Mark Yusko, Founder of Morgan Creek Digital Management
Forecast of the week
BTC could trade for $ 250,000 within five years: Morgan Creek Capital CEO
While there has been a short-term shock to Bitcoin, there is no lack of optimism when it comes to the long-term forecast.
Just look at Morgan Creek’s Mark Yusko who believes BTC has a great chance of trading at $ 250,000 per coin by 2025.
His prediction is based on the assumption that Bitcoin will compete with gold for “monetary value”.
Yusko’s appearance on CNBC came with a stab in the tail for investors who prefer altcoins. He added: “There are thousands of coins and DOGE is in that category that is really useless. They are just utility tokens with no underlying value or use case, and they will eventually go away. “
FUD of the week
Binance is reportedly under investigation by the IRS and the Department of Justice
Binance is reportedly under investigation by both the U.S. Department of Justice and the Internal Revenue Service.
According to Bloomberg, the two government agencies are investigating Binance Holdings Ltd. as part of an investigation into US citizens who use cryptocurrencies for illegal transactions.
Officials reportedly seek information from Binance employees and customers, but not all of their inquiries are necessarily linked to allegations of wrongdoing.
A Binance spokesman said the company “took its legal obligations very seriously and worked cooperatively with regulators and law enforcement agencies”.
The IRS will confiscate your crypto if you cannot repay taxes
The U.S. Internal Revenue Service (IRS) stands ready to seize the holdings of cryptocurrency owners who are struggling to pay their unpaid tax debts, sending a strong signal that the agency treats digital assets the same as it does any other type of property seizures.
Robert Wearing, deputy deputy chief counsel of the IRS, told a virtual conference for the American Bar Association that the government classifies digital assets as property. Therefore, these assets can be confiscated to pay off outstanding tax debts that have not been repaid.
According to Bloomberg, he said: “The IRS will seize this property and attempt to follow its normal procedures to sell it and use it for the satisfaction of the collection.”
BTC and other cryptocurrencies are classified as property from a US federal tax law perspective.
Turkish Customs confiscated over 500 smuggled Bitcoin mining equipment
Turkish customs authorities stalled a smuggling operation in an alleged record bankruptcy against illegal Bitcoin mining machines in the country.
After receiving a tip, Turkish Customs Protection’s anti-smuggling and intelligence teams ransacked a warehouse in İzmir earlier this week and found 501 ASIC bitcoin mining equipment in closed cardboard boxes.
The customs authorities reported the estimated value of the confiscated equipment $ 600,000. Four suspects were arrested as part of the investigation.
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