MicroStrategy Is Considering Lending or Putting A Mortgage Against its Bitcoin Holdings

Bitcoin News

MicroStrategy Is Considering Lending or Putting A Mortgage Against its Bitcoin Holdings

  • AnTyAnTy

Business intelligence company MicroStrategy is now looking for ways to generate yields on its Bitcoin stash.

On the company’s investor day call with shareholders, CEO Michael Saylor said they could lend a portion of Bitcoin holdings to a “trustworthy counterparty.”

This would put the company into a kind of partnership with a bank or a big tech company. “You could think of that as putting a lien on it,” Saylor said.

“That could become a good source of income for us, or we could develop it with some kind of interesting applications.”

Saylor further said that the company could also “put a mortgage against it” to generate long-term debt under favorable circumstances.

For now, no formal steps have been taken on any of the potential options, Saylor noted during the virtual presentation.

Using cash flows from MicroStrategy’s main business and issued two convertible bonds and a secured bond, the company has amassed more than 122,500 Bitcoin worth over $5.7 billion at the current price of about $46,850.

AnTy

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

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Short-Squeeze into Year End? JPMorgan Says Market and Retail Investors Showing Resilience

Bitcoin continues to trade under $47,000, not showing any strength yet.

While BTC is currency down 32% from its all-time high of $69,000, the cryptocurrency is near its ATH against the Turkish Lira.

As of writing, BTCTRY is currently around 780,000, climbing towards 797,000 ATH hit earlier this month. Against the Turkish Lira, Bitcoin is up 255% year-to-end.

Not just Bitcoin, the Turkish Lira has been plummeting against the USD as well. It crashed to a new all-time low against the USD a day after the central bank again lowered a key interest rate despite surging consumer prices, in line with President Recep Tayyip Erdogan’s economic policy.

“The destruction of the Turkish Lira value is jaw-dropping. This is why bitcoin was invented,” commented Barry Silber, CEO of Digital Currency Group, the parent company of Grayscale.

Potential Capital Outflow

As the Lira continued to fall, the central bank had to intervene, for the fifth time in recent weeks, by selling off more foreign currency in order to prop up the Lira. As the sharp decline triggered a market-wide circuit breaker, Turkey halted trades on all listed stocks. This resulted in the Borsa Istanbul 100 index to drop over 9%.

“The complete capitulation in Turkish equities today may represent a turning point in local sentiment,” said Nick Stadtmiller, director for emerging markets at Medley Advisors.

“Turkish stocks have surged despite a worsening macro backdrop. But now, Turks pulling their money from the stock market may represent an acceleration in the trend of local capital outflows from the country.”

TRY hit a new record low of 17.14 before it was able to recover some of its losses. Since the start of the year, Turkey’s fiat currency has lost 55% of its value against the dollar.

This week the central bank announced that it is raising the key rate by 1% to 14% even though inflation is running at 21%. Since September, the bank has reduced the rates by five percentage points.

In response, Lira is tanking, and a weakened lira is driving prices of fuel, everyday goods, and imports higher.

After TRY lost 37% of its value in the last 30-days, “What follows is a parade of horribles – capital controls, debt default, wage & price controls, & currency reset. By the time you realize you need Bitcoin is may be too late,” said Bitcoin proponent Michael Saylor, whose company MicroStrategy holds BTC on its balance sheet.

Potential Short Squeeze

Ever since the November high, Bitcoin and crypto have been struggling to be bullish after the Federal Reserve turned out to be a bit more hawkish than expected as besides doubling the pace of bond-buying tapering, the central bank is also projecting three rate hikes next year.

However, the market is still expecting a bull rally with froth taken out and funds likely to be done with structural sell flows as the year comes to an end, as per crypto trader Light.

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Not just in the crypto market, but the weakness has also been seen in the equities market as JPMorgan’s head quant Marko Kolanovic noted in the recent report that over the past four weeks, small caps and value stocks corrected 30%, “entering a bear market.”

This sell-off, according to JPMorgan, is related to Fed and the new COVID-19 variant Omicron along with de-risking and shorting from equity and macro hedge funds.

Kolanovic noted that “there is aggressive shorting, likely in the hope of declines in retail equity position and cryptocurrency holdings.” But not just the markets but also retail investors have shown resilience, he added.

“One should note that large short positions likely need to be closed before (the seasonally strong) January, which is likely to see a small-cap, value and cyclical rally. And given that market liquidity is dwindling, the impact of closing shorts may be bigger than the impact of opening them, when liquidity conditions were better.”

AnTy

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

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Paraguayan Senate Passes Bill to Regulate Crypto Trading and Mining

Legal & Regulation

Paraguayan Senate Passes Bill to Regulate Crypto Trading and Mining

  • AnTyAnTy

The Senate of Paraguay has passed a bill that will regulate the trading and mining of cryptocurrencies in the country.

Paraguayan Senator Fernando Silva Facetti, one of the three authors of the bill, confirmed this on Twitter, saying Paraguay’s Chamber of Deputies will discuss the bill next year.

After an “intense debate” that the Senate approved the bill that regulates the industry and commercialization of crypto assets, said Facetti.

In July, Paraguayan congressman Carlos Rejala presented a bill to regulate crypto ownership and registration of crypto mining operators.

Paraguay’s low cost of electricity is the main attraction for crypto mining companies. Besides being the lowest in the region at around $0.05 per kilowatt-hour, the South American country produces 100% of its energy via hydroelectric sources.

The bill states that Paraguay only consumes a third of the energy it produces, and regulating crypto mining activity could help them consume “thousands of megawatts” that they currently have in “surplus.”

With the new legislation, Facetti said, Paraguay aims to recognize crypto mining as an industry and establish the grounds to guarantee access to energy and requirements for the formalization of an expanding sector.

He further said, for crypto transactions, the National Securities Commission (NSC) will establish the registration requirements for intervening agents for negotiation, compensation, custody, and intermediation in the securities market.

The bill proposes a registry for any individual and the legal entity seeking to provide crypto trading and custody services.

According to the bill, the country’s Industry and Commerce Secretariat will supervise crypto mining along with the NSC, Anti-Money Laundering Office, and National Electricity Administration.

AnTy

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

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How a Ken doll became an ‘epic fail’ for Mattel (and an icon for diversity)

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

No one can doubt that Mattel is one of the great toy brands in the world and that its products have been present in the childhoods of many adults who today consume products that appeal to nostalgia.

Amwok

Mattel’s success dates back to 1959 when founder Ruth Handler introduced the world to the first model of what would become the best-selling doll in history : Barbie .

Since the 1960s, the company has implemented various campaigns that seek to maintain the interest of the ever-changing children’s market on the wrist. In this way, Barbie has had 135 professions, has modeled designs of the greatest artists in the world of fashion and has included sisters like Skipper and Stacie.

However, one of the most curious chapters of the doll, which has more than 100,000 registered collectors , occurred in the 90s when Baribe’s long-suffering boyfriend, Ken, was involved in a controversy that led him to be one of the best-selling models in the history of Mattel.

In 1993 the company presented the Earring Magic Barbie line that sought to show Barbie and her friends with a more avant-garde look with fashionable clothes and more stylized hairstyles.

Specifically, the Ken of this line had blonde highlights in his hair, a purple shirt with a lavender vest, an earring in his left ear and a golden circular earring. This detail would unleash popularity and controversy in different markets.

According to Matt Haig’s book Brand Failures: The Truth about the 100 Biggest Branding Mistakes of All Time , Mattel had conducted a survey to see if girls believed Ken was modern enough to remain “Barbie’s boyfriend.” The results showed that the consumers loved Ken, but wanted him to be cooler .

It was then that Mattel had Ken redesigned based on the artists of the videos that the girls started on MTV with all that that entailed: tight pants, a Maya shirt and a leather vest.

Ken’s new image fell in love … but with an unplanned audience.

Image: eBay

The Ken who became the standard bearer of the LGBT community

The Earring Magic Barbie line was released with the full support of Mattel’s marketing, but soon several parenting groups in America began to complain that this “coolest” Ken was actually a “stereotypical gay in disguise.”

The clothes, the design of the hair and especially the ring around the doll’s neck (which some compared to certain sex toys) led gay men of the 90s to buy the Earring Magic Ken model in record numbers. Some sources like Buzzfeed even claim that he is the best-selling Ken in the history of Mattel.

The doll’s popularity within the LGBT community even prompted iconic sexual minority rights fighter Dan Savage to make a powerful essay promoting the toy.

It is not known for sure if this model is the best-selling Ken in the history of the brand, but what did happen is that Mattel quickly took the doll off the market and, according to an article in The Chicago Reader newspaper, it quickly became He apologized for the mistake as clearly his intention was not to make a doll with sexual connotations . Ironically, it is well known that Bild Lilli , the doll that Ruth Handler relied on to make Barbie, was an adult toy in Germany.

Today the Earring Magic Ken is a collector’s item that sells for high prices at online auctions on sites like eBay .

25 years away, it seems easy to laugh at Mattel’s mistake when designing this doll, but, as the How Stuff Works portal says, it must be remembered that at that time pop culture was flooded with stars like Prince and Right Said Fred .

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Crypto operations opposed by the Bank of Russia

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According to the Russian legislation, it is not prohibited for individuals or legal entities to buy cryptocurrencies in foreign markets, but it is prohibited to issue them on domestic platforms and use them as means of payment within the Russian Federation.

In an interview on Friday the 17 December 2021, by the local media house finmarket.ru, the Governor of the Bank of Russia, Elvira Nabiullina enlarged the fear around the future of digital assets regulation in the country.

“You know our attitude towards cryptocurrencies, to put it mildly, skeptical, connected with the fact that these are big risks for retail investors, the volatility of this asset is very large. Cryptocurrencies are often used for illegal operations of a criminal nature, they are not transparent, so we cannot welcome investments in such kind of assets. And we advocate that the Russian financial infrastructure is not used for transactions with cryptocurrency, it is quite possible to implement it”

Central Bank of Russia sees high risks in development of the Cryptocurrency market

The bank of Russia has repeatedly articulated that it is looking at the purchasing of blockchain technology-based assets by individuals with a lot of apprehensions. The fact that Nabiullina’s statement came exactly a day after there were reports about the absolute ban on the exchanges of these virtual assets in Russia increases speculations about the fate of the virtual coin market.

In proportionate views, the most rigorous degrees against digital currency were enforced by China, which in September prohibited foreign exchanges from providing services for buying digital assets in the country and also banned miners from working in the country. At the same time, plenty of European countries and the United States of America are slowly removing constraints on the use of cryptocurrencies as a financial means of payment. In particular, in Sweden, the use of cryptocurrency is allowed by the authorities, while its purchase is considered as a transaction with assets, and anti-money laundering laws are observed.

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It’s raining Parachains! Polkadot’s [DOT] first 5 projects go LIVE

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It's raining Parachains! Polkadot [DOT] launches its first 5 winning projects

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Polkadot [DOT], a blockchain interoperability platform has announced the arrival of its five parachains into its network, marking a pivotal point in the interconnected blockchain technology domain as well as demonstrating its multi-chain capabilities. According to the press release, the name Parachain refers to a set of individual blockchains that runs in tandem with the ecosystem and is now finally released on the network after five years of meticulous research.

The first five to win the slot on the Polkaldot’s relay chain are Acala, Moonbeam, Astar, Parallel Finance, and Clover, which would continue to be under a lease up to 96 weeks at a time. Each of these para chain groups would be focusing on a variety of topics ranging from decentralized finance [deFi] to investments and loans, as well as smart contract functionality. The next batch of para chain auctions will be launched on Dec. 23, this year. and the winners would be announced on March 11, 2022.

It is noteworthy to mention that Polkadot has been hosting parachain slot auctions since Nov. 1, 2021. So, Projects aiming to win a slot host crowd loans to raise DOT tokens and staked the received coins to bid on parachain slots. The first such parachain slot was won by decentralized finance (DeFi) platform Acala with Moonbeam, an Ethereum smart compatibility protocol holding the second slot.

Talking about interoperability, despite the rise of several public blockchains, sending tokens and data across chains poses challenges because every blockchain ecosystem is fragmented and the emerging interoperable bridges are generally considered risky due to their reliance on centralized processes like token wrapping. 

Polkadot’s Parachain mechanism

In order to address this interoperability issue, Polkadot‘s network executes cross-chain communication at the protocol level and secures Layer1 parachains through a process called shared security. Speaking more on the parachain model and the value they create in the Web3 domain, Creator Gavin Wood stated,

“The parachain model was created with the belief that the future of Web3 will involve many different types of blockchains working together. Just as the current version of the Internet caters to different needs, blockchains need to be able to provide a variety of services. Parachains solve this.”

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Bulls bring in Christmas spirit into the Dogecoin [DOGE] market

You are here: Home / News / Bulls bring in Christmas spirit into the Dogecoin [DOGE] market

Dogecoin

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With Christmas just days away, the crypto-verse was bringing in good news for all the crypto lovers. Meme coins like Dogecoin [DOGE] and Shiba Inu [SHIB] said better late than never as they traversed on to the bullish arena. Altcoins like Avalanche [AVAX] and Terra [LUNA] were running the show by bagging massive gains.

Dogecoin [DOGE] witnessed a pretty hard fall from the top 10. The meme coin, despite its ever-surging popularity, had to settle for the 12th spot. During press time, DOGE’s market cap was noted at $23.00 billion. Its rival, Shiba Inu was just below DOGE with a market cap of $17.53 billion. The battle between these assets has been on for the longest time. However, considering SHIB’s current state, the chances of DOGE remaining on top were more elevated.

The price of Dogecoin recorded a dainty surge of 1.99% over the previous 24-hours. The meme coin failed to amass major gains over the week. Therefore, the price of the coin was $0.172, at the time of writing.

Dogecoin [DOGE] one-day price chart on Binance

Dogecoin
Bulls bring in Christmas spirit into the Dogecoin [DOGE] market 3

The one-day price chart of DOGE was registering the entry of the bull. The Parabolic SAR indicator laid out a dotted line below the price candles. The line further blocked the chances of DOGE dropping below its current price level. The Awesome Oscillator indicator was also exerting increased bullishness. The indicator affirmed this with the formation of strong green closing bars.

The Relative Strength Index [RSI] indicator pointed out a sellers’ market as the RSI marker sunk below the 50 median.

Additionally, meme coins got an earful from the Chairman of North Island, Glenn Hutchins, who urged the “disposal” of these assets. Appearing in a CNBC Squawk Box interview, he stated,

“We move into a situation where interest rates are increasing, easy money is turned off. [..] Dispose of the frothy end of the market meme stocks….”

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Paraguay’s Bitcoin [BTC] Bill Targets Mining and Trading

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Paraguay's Bitcoin [BTC] Bill Targets Mining and Trading

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A highly anticipated bill seeking to regulate mining and trading in Bitcoin [BTC] and other crypto-assets in Paraguay finally gets the green signal from the country’s Senate as per a recent announcement. Revealing more about the same, Senator Fernando Silva Facetti, one of the co-authors of the bill, said on his official Twitter handle that the bill will be debated in Paraguay’s Chamber of Deputies in the year 2022.

According to the bill, the Industry and Commerce Secretariat will be overseeing crypto mining in the country, with the help of the Anti-Money Laundering Office and the National Securities Commission. In addition to that, the National Electricity Administration will be involved in the activity’s regulation. Interestingly, the cost of electricity in the South American nation is the lowest in the region costing a mere $0.05 per kilowatt-hour, according to Paraguayan Congressman Carlitos Rejala, who further added that nearly 100 percent of energy output originates from hydroelectric sources.

Earlier in July this year, in an interview with a leading media firm, Rejala gave an insight into the draft bill that was released then. The bill hinted at stronger regulatory control from the country’s regulators in terms of bitcoin mining, as well as providing safety to investors from enterprises that offer bitcoin services.

During that time, Rejala said,

“With this we want to welcome the innovation of cryptocurrencies in Paraguay to the world. This is the result of a very strong and arduous teamwork of many experts in the field, both local and foreign.”

Bitcoin nearing its end?

With BTC price has been laying low, academic Eswar Prasad of Cornell University went on to predict an apocalyptic picture of the king coin’s survivability in the near future. Emphasizing that ” bitcoin is not serving well as a medium of exchange” owing to its high volatility and is environmentally destructive”, eventually leading users to look for other crypto-assets with enhanced use cases.

Well, not all is doom and gloom, in a recent survey conducted by CNBC revealed that a staggering 83% of millennial millionaires own cryptocurrencies and that they’re planning to add more in 2022 despite the ongoing price drawdown in the crypto market.

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Bitcoin may not last long: Cornell professor

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Bitcoin, the most beloved coin of the world, has been experiencing very inconsistent prices in the market. Through it all, it remains the most valued asset in the industry, it ranks as the No.1 cryptocurrency. At the time of writing, Bitcoin was priced at $46,541.09 and experienced a drop of 2.55% in the last 24 hours.

An economics professor at Cornell University and author of ‘The Future of Money: How the Digital Revolution is Transforming Currencies and Finance’ says that Bitcoin’s use of blockchain technology is not very efficient and that the asset itself may not last long.

The real legacy of Bitcoin is not the cryptocurrency itself, but blockchain technology

Eswar Prasad, senior professor of international trade policy at Cornell University, told CNBC in a recent interview that Bitcoin hasn’t used blockchain technology in a very efficient way. He also states that there are many other steady coins, that have used blockchain far more decisively.

According to Prasad, the world’s largest cryptocurrency hasn’t been serving well as a medium of exchange and it is not going to have any elemental value except for what investors feel,

“Cryptos have become purely speculative assets”

Furthermore, he adds that this cryptocurrency has a validation mechanism that ostensibly destroys the environment and it doesn’t calibrate very well. It is true that the said coin’s carbon footprint is extremely massive and that it is bigger than the whole of New Zealand. Cambridge University researchers say that this cryptocurrency consumes more energy than the entire annual energy consumption of the Netherlands.

Over the years, the crypto market has seen the rise of gobs of other altcoins that have been stable in terms of price and consume a subjacent amount of energy in comparison to BTC.

Professor Prasad stated that the promise of Decentralized Finance(DeFi) using blockchain technology is real. He believes that blockchain technology, the primitive automation of cryptocurrencies, will be radically revamped magnificently in the ways of transactions in our daily lives. Blockchain technology is the future, it has already brought about changes in our central financial ways leaving everyone to wonder what it holds in the future.

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Delta Just Brought Back 1 of the Best Things that Disappeared During the Pandemic

You probably noticed that air travel has looked different over the past two years. That’s not surprising–airlines have had to figure out the best way to keep people flying, while also keeping them safe. Some of the changes were obvious. Travelers are required to wear masks in airports and onboard airplanes. Airlines have taken additional steps to clean planes between flights. 

Some of the changes were welcome. Most major airlines, for example, stopped charging customers to make changes to their reservation–or to cancel their flight altogether. And most airlines took the step of blocking middle seats as an attempt at social distancing. 

On the other hand, some of the changes were less popular, like cutting back on food and beverage services. Airline food has never been anything to get excited about, but on a long flight, it’s at least something to look forward to. The rationale, I suppose, was to minimize the amount of contact between passengers and crew whenever possible.

I’ve flown a dozen or so times since August of last year, almost entirely on Delta Air Lines, and I’ve seen firsthand how the airline has adapted and evolved over the past 18 months. One of the things that went away during the pandemic was something called “Job Well Done” certificates. These were certificates the airline sent to its higher-tier frequent flyers who could give them to an employee as recognition for their, well, job well done. 

If, for example, a flight attendant or gate agent went out of their way to deliver exceptional service, you could give them one as a token of appreciation. The employee can then use them for different rewards. 

Delta never formally said it was stopping the program. Instead, it seems like it paused the program last year and never sent out new certificates with the packets it sends Platinum and Diamond elite members of its frequent flyer program. Whether it was to discourage contact between travelers and staff, or if it was a way to cut what would seem to be a rather minor expense, the certificates never showed up.

Now, however, they’re back. I got a set just this week, and it’s one of the best things to return. 

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The certificates arrived in the mail with a letter that said, in part:

The Job Well Done program allows customers to recognize Delta people who go above and beyond; we all truly appreciate it when you take the time to tell them. When you’ve engaged with an employee who provided exceptional service, please fill out a Job Well Done certificate and deliver it to them.

When I say that these certificates are one of the best things that sadly disappeared from Delta during the pandemic, I know that might seem counterintuitive. Certainly, things that directly affect the level of service you receive on the plane would seem far more important than something you might give to someone else, but I think there’s a really valuable lesson here. 

What is so interesting about these pieces of paper is how much customers love them. I mean, obviously, employees like to be rewarded for doing a great job, so you’d expect they’d be big fans of customers handing them a JWD certificate. 

The unexpected thing is how much customers love them too. Every frequent traveler I know looks forward to receiving a set, which seems strange since it’s something meant to give away. 

There’s a reason for that, however. I think it’s because people who travel frequently understand how hard flight attendants, reservation agents, gate agents, and everyone else involved work to get them where they’re going. For Delta, its Platinum and Diamond members are arguably its most valuable customers. They also happen to be the ones that spend the most time with Delta’s employees. 

Plus, people love being able to show appreciation for employees who go above and beyond and do a great job. And, since each medallion member only receives four certificates, they are rare. That makes them even more valuable. 

The lesson here is that the best thing you can do to take care of your customers is to take care of your people. You can’t possibly know all of the things they do on a daily basis to take care of your customers. You can’t possibly know all of the ways they go out of their way to deliver a great experience but those customers know.

Actually, I take that back–one of the best things you can do is invite your customers to help you take care of your employees. 

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