KW 36: Bitcoin price plunges as cryptocurrency becomes legal tender in El Salvador, More climate-friendly than Bitcoin – Cardano takes off in Japan, Solana summer? Cryptocurrency SOL reaches all-time high

NEWS

Bitcoin price plunges as cryptocurrency becomes legal tender in El Salvador: El Salvador became the first country to adopt Bitcoin as a national currency on Tuesday, kicking off a radical monetary experiment that could pose risks to the fragile economy. On Tuesday, the risks of the approach were highlighted when Bitcoin prices dropped sharply, as much as 16%. It was last down about 9.5% and trading at $46,892.04, according to Coin Metrics. Ether fell 12% to $3,441.21. Crypto adjacent stocks MicroStrategy and Coinbase also lost about 9% and 4%, respectively.
cnn.com, cnbc.com

More climate-friendly than Bitcoin – Cardano takes off in Japan: The little known cryptocurrency Cardano has come out of nowhere to become the third-largest after Bitcoin and Ethereum following a recent price surge as blockchain enthusiasts look for more climate-friendly options. Cardano was established in 2015 by Ethereum co-founder Charles Hoskinson and was launched in 2017. Since then, the token has returned 7,080% to investors. Cardano is the largest cryptocurrency to use a proof of stake blockchain model, which is considered a greener alternative. Another reason for Cardano’s surge is that from August 25, its coin will be listed on Japan’s exchange after authorization by the country, which is considered to have one of the strictest criteria for entering the market.
euronews.com

Solana summer? Cryptocurrency SOL reaches all-time high: Before El Salvador’s historic Bitcoin adoption measure, the cryptocurrency market rallied to its highest level in nearly four months, with a slew of so-called altcoins (or cryptocurrency alternatives to Bitcoin and ether) surging to meteoric new highs and fueling gains that have prompted JPMorgan analysts to warn current crypto mania suggests the market may be ripe for a correction. Heading up gains among top cryptocurrencies, the price of Solana’s sol token skyrocketed nearly 19% to an all-time high of $164.47, extending a weeks-long rally driven by the cryptocurrency’s support for buzzy non-fungible tokens.
forbes.com

Ethereum layer-twos reportedly processing more transactions than Bitcoin: Layer-two scaling protocols for Ethereum have surged in adoption in recent months as gas prices climb again, and the layer-two ecosystem is now processing more daily transactions than the Bitcoin network, according to recent findings. According to CoinMetrics data collated by industry analyst and Week In Ethereum News founder Evan Van Ness, there were more transactions on Ethereum layer twos than on the Bitcoin network on Monday. Layer-two protocols processed around 250,000 transactions for the day, whereas there were around 210,000 on Bitcoin.
cointelegraph.com

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Deloitte study: Goodbye fiat currencies – A new age of digital assets is starting btc-echo.de
Alleged fraud: Kim Kardashian’s cryptocurrency Instagram ad sparks criticism from UK financial watchdog cnbc.com
Green Bitcoin mining: Here’s how the crypto trend could become sustainable after all finanzen.net
El Salvador: El Salvador’s Chivo Bitcoin wallet struggles to reach liftoff on launch day theblockcrypto.com
Investor considers cryptocurrencies worthless and advises another investment finanzen.net

NUMBER OF THE WEEK

Bitcoin slid in price by 15%, from above $52,000 to below $44,000, following issues with the adoption of the cryptocurrency as legal tender in El Salvador, but has recovered slightly on Wednesday.
independent.co.uk

BACKGROUND

After crypto regulation – „Germany falls short of possibilities“: At the beginning of June, the German government set an example for the digital transformation of finance with its Electronic Securities Act. This made it possible, for example, to deposit certificates of bonds and share certificates without paper. The government is now extending the scope of application to so-called crypto-fund shares. This is the result of a first draft regulation of the Ministry of Finance and Justice. At the moment, the paper is still being examined by the federal states and associations. If the ordinance enters into force, providers of investment funds could in future also issue electronic share certificates as crypto fund shares by entering them in a crypto securities register. The Fund Location Act, which has been in force since August, also has a supporting effect. Since its implementation, institutional investors such as pension funds and insurance companies have been allowed to hold up to 20% cryptocurrencies in their funds. This could in turn trigger a strong flow of money towards digital assets, according to a study by tech think tank MINDSMITH. The regulation is generally well received, but there is also some criticism. FDP politician Frank Schäffler said of the draft crypto regulation that Germany is lagging far behind the technical possibilities. This must change under the next finance minister. The Electronic Securities Act is to be re-evaluated after three years. The inclusion of electronic shares would thus concern the next federal government. However, it remains to be seen whether the choice of deposit can then also be made somewhat more liberal.
btc-echo.de

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McDonald’s now accepts Bitcoin, but only in El Salvador: El Salvador’s recognition of Bitcoin as legal tender has opened up new payment options for its citizens, with fast-food empire McDonald’s reportedly accepting payments in the cryptocurrency through Lightning Network. Journalist Aaron van Wirdum broke the news Tuesday after he visited a McDonald’s restaurant in El Salvador, where he was presented with a printed QR code directing him to an invoice page on Lightning Network. Lightning is a layer-two payment protocol designed to make Bitcoin transactions more scalable.
cointelegraph.com

QUOTE

„This is a demonstration of the opposition. It is very clear who we are dealing with here.“
The President of El Salvador, Nayib Bukele, on protests against the introduction of Bitcoin as legal tender.
tagesschau.de

BLOCKBUG

Tax official called himself for hours to avoid working: A Swedish tax official called his own phone number for hours to avoid work. The 28-year-old called himself on his mobile phone to avoid having to take calls from clients, according to a disciplinary report by the Swedish Tax Agency. The man had called his own line 32 times between March 10th and May 5th. This made him appear busy in his employer’s system and all calls were forwarded to other employees. He had been able to fill a total of 55 working hours with this, which was equivalent to seven working days. The man now faces dismissal.
spiegel.de

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