The Biden Administration just released a new economic report that extensively covers Bitcoin and crypto, mentioning the two terms a whopping 305 times in total.

The document is catching waves for stating that “crypto assets to date do not appear to offer investments with any fundamental value” – but that’s just a glimpse of what’s in the report.

Here are some of the highlights.

1. The report tracks Ethereum’s switch to a proof-of-stake consensus mechanism, but appears to lack a fundamental understanding of how Bitcoin’s consensus is established, referring to the decentralized network as if it were a company with the ability to make official statements.

“Despite Ethereum’s switch to proof-of-stake, Bitcoin has not announced plans to make a similar change.”

2. The report criticizes Bitcoin’s use of energy, but does not compare Bitcoin’s energy consumption to the banking industry, which BTC was designed to replace.

It also does not mention the fact that miners are incentivized to use renewable energy to save on costs, or that reports estimate as much as 59.5% of BTC mining already relies on renewable sources.

“Globally, Bitcoin accounts for 0.42% of all electricity usage.

This effectively means that Bitcoin is using the same amount of electricity as a medium-sized advanced economy.”

3. The report cites Bitcoin’s price volatility at an awkward time, amid a government-induced banking crisis that has forced many Americans to realize that banks do not hold onto their cash, and deposits above $250,000 are not insured by the FDIC.

“The value of a Bitcoin (relative to the U.S. dollar) increased by over 1,000% from March 2019 to March 2021, and then decreased by over 70% from November 2021 to October 2022.

This volatility means that anyone who is using Bitcoin to store their savings is subject to high-volatility risk in their purchasing power.”

4. The report also cites BTC’s “run risk” amid the collapse of several US banks, ironically warning that crypto assets could trigger a “Minsky moment” representing the end of a prolonged period of economic prosperity.

But despite the criticism, the report also says the crypto industry is likely here to stay.

“The risks presented by crypto assets stem from excessive speculation, high leverage, run risk, environmental harm from crypto asset mining, and fraudulent activities that harm retail investors and corporations.

Because crypto assets appear to be here to stay, policymakers should consider these risks to avoid a ‘Minsky moment’ caused by crypto assets.”

5. The report cites Bitcoin’s scarcity and its maximum supply of 21 million coins, but declares paper money is superior due to the existence of central banks, which print cash with impunity.

“In addition to generally being speculative assets, cryptocurrencies currently are not effective alternatives to sovereign money such as the U.S. dollar. As mentioned above, most cryptocurrencies do not have fundamental value, but that is not a requirement for them to function as money. In fact, sovereign money does not have a fundamental or intrinsic value. Even so, sovereign money can easily satisfy money’s requirements…

The main reason for this is that the value of sovereign money is backed by a trusted institution—the central bank.

#bitcoin #ABD #koinmilyoner #ETH #BNB

Nasdaq Inc. (NDAQ) plans to launch a service that could fill residents in a crypto brokerage position after what happened last year.

Nasdaq Digital Assets Senior Vice President Ira Auerbach said in a recent statement that it continues to acquire the main server and connectivity space for the crypto custody service. In this context, Nasdaq previously applied to the New York Department of Financial Services for a company formation that will run its new service.

Nasdaq's crypto service custody project was first announced in September 2022. Operated by one of the world's largest exchanges, such as Nasdaq, the company's crypto service facility was welcomed by crypto investors.

Ira Auerbach said that providing custody services for the largest crypto assets such as Bitcoin and Ethereum will target the first step of the broad service package that the digital asset division will offer in the future. During the operation, Auerbach also hinted that the company could start crypto trading. The entry of traditional financial institutions such as the Nasdaq into the crypto sector is seen as an important step towards global adoption of the industry. So much so that financial institutions providing crypto services is seen as a phenomenon that increases trust.

Nasdaq, which is expected to be offered to crypto custody before the end of the second quarter of the year, will thus join other major financial institutions BNY Mellon and Fidelity. In addition, Fidelity recently took another step and announced the future of commission-free Bitcoin and Ethereum trading for customers on its platform.

#Crypto #Nasdaq #ABD #Binance #kriptorant