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Crypto News: China (again) bans Bitcoin … amid general indifference

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Worst of the Middle Empire – In recent months, the Chinese government has stepped up its crackdown on the crypto industry in an effort to eliminate the industry’s presence in the country. These restrictions have had a negative impact on the cryptocurrency industry, with Bitcoin (BTC ) losing more than half of its value in a matter of weeks. Following the national repression, the Bitcoin blockchain has experienced, for the first time in its history, four consecutive readjustments in mining difficulty. But the Chinese authorities do not intend to stop there.

After the ban on minors, consumer protection

During a press briefing of 27 August , the Deputy Director of Investor Rights Protection Bureau of the People’s Bank of China (PBoC), Yin Youping , said digital assets were nothing other than simple speculative assets. In his remarks, Youping urged investors to protect their capital by staying away from the digital asset market.

“We remind the general public once again that digital currencies such as bitcoin are not legal tender nor have real value. “

Yin Youping from the Investor Rights Protection Bureau of the PBoC

According to Youping, investing in digital assets is just a fad that will soon fall into disuse. The Chinese people should therefore their knowledge of the risks and stay away from cryptocurrency investments.

For once, this umpteenth rant hostile to digital assets has had absolutely no impact on the market for these, which seems to want to start rising again for a few weeks. Indeed, news of Youping’s speech fell on the morning of August 27 , but had no visible influence in the market . Worse, Bitcoin offered us two beautiful bullish candles within 24 hours .

Tweet from Hellmouth Banner signifying indifference with which the market welcomed this new announcement from the People's Bank of China.

We are therefore a long way from the panic phases generated by China’s announcements during the month of May.

Bitcoin price in one hour time unit showing market lack of reaction to China's announcement
Bitcoin price in unit of time one hour (1H) – Source: TradingView

 

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Bitcoin and cryptocurrency trading still active in China despite bans

Youping added that the PBoC was taking drastic measures to end cryptocurrency trading operations in China . The central bank is expected to soon introduce a system that will standardize the crackdown on cryptocurrency transactions, encouraging the general public to promptly report any such activity.

At the same time, the PBoC intends to step up its policy of censoring websites, applications and companies that still allow Chinese citizens to trade in digital assets. Finally, the Chinese central bank also wants to fight against illegal fundraising favored by cryptocurrencies and blockchains.

If China is still cracking down on digital asset trading, it’s because Chinese traders resumed activity in 2021 , despite repeated bans. Indeed, many media, including Reuters and the South China Morning Post , have seen an increase in activity from Chinese traders.

Although exchanges like OKEx and Huobi have fled China and Binance and MXC prohibit the use of the yuan on their platforms, Chinese traders are still finding ways to access the precious satoshis, much to the displeasure of the authorities. Indeed, the advent of stablecoins like the USDT allows traders to do without their reference currency to carry out crypto transactions.

Finally, since 2017, the over-the-counter market has developed strongly in China. Regardless of the field, each new ban creates “shadow trades”. In China, there are, at least until last May, intermediaries responsible for marketing Chinese miners’ bitcoins to individuals. This peer-to-peer market is extremely difficult to pin down, which is why digital asset trading is still present in China.

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Assembly (ASMB): IOTA’s first step towards smart contracts

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Assembly (ASMB), Iota’s decentralized tier 1 smart contract network, is emerging, at least on paper. The Assembly platform has planned well-known organizational mechanisms to ensure its scale, its security, but also the decentralization of its governance.

Assembly and Iota: smart contracts using sharding

Assembly is revealed in a post of December 2, 2021 published on his blog. Its mainnet will be launched in 2022. Its users will be able to customize the “chain of sharded smart contracts” that they will create using the platform:

“Assembly is a permissionless multi-chain network for building, connecting and deploying smart contracts. The protocol allows anyone to create their own chain of sharded smart contracts, with the ability to define their settings, virtual machine (VM) and validation requirements, and even customize fee and incentive structures. “

Assembly is Iota's decentralized smart contract platform.  Its launch is accompanied by that of its ASMB token.

Sharding solves network scalability problems by reducing transaction validation time. The latter is achieved by a group of nodes of a relatively small size, rather than by the whole network.

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ASMB, the Assembly token: staking, slashing, and governance

Assembly also revealed its ASMB token . The latter will be used to ”  secure, govern and develop the network  “. The ASMB token is all the more necessary for the security of Assembly, because the platform uses a consensus mechanism similar to the proof of stake.

Assembly validators will need to stake their ASMB , and will receive a reward in the form of a newly issued token. They will also be remunerated by transaction fees. Validators breaking the rules will be sanctioned by slashing, which consists of a more or less significant reduction in rewards, depending on the extent of the fault and the quantity of staked tokens. ASMB tokens are also used to ensure decentralized governance of the network . Their holders can make improvement proposals which will be voted on by the community.

70% of the ASMB token offering will be distributed to the community, with a 20% allocation for IOTA holders. The remaining 30% is reserved for first users and the IOTA Foundation.

Smart contracts are one of the central elements of web3, and Iota contributes even more to the adoption of the latter through Assembly. Smart contracts are not only essential for subsectors of the cryptosphere such as DeFi. They can also create a positive break in “more traditional” areas such as contract law .

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$30 billion in staking – Coinbase’s maddening war chest

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Cryptos in the CloudsCoinbase Cloud owns and stakes a significant amount of its customers’ cryptocurrencies. The figures unveiled by the platform seem to support Coinbase’s ambition to become the equivalent of AWS for cryptocurrencies.

Coinbase cloud and cryptocurrency: billions of dollars in digital assets to be staked

On December 2, 2021, Coinbase Cloud revealed that it held $ 30 billion in cryptocurrencies on its platform in November 2021. The platform stakes most of these assets on behalf of its customers, on 25 blockchains using proof of stake, including Ethereum ( ETH) 2.0 , Tezos (XTZ), and Cosmos (ATOM). Coinbase Cloud customers are institutional investors, individuals, but also businesses.

Coinbase ensures the safekeeping of cryptocurrencies and takes a 25% commission on the staking fees. Coinbase Cloud, for its part, earns itself 8% on the remunerative interest of staking. Coinbase acquired Coinbase Cloud, formerly Bison Trails, in 2021 for an amount that would exceed $ 80 million.

Coinbase, the AWS of cryptocurrencies: serving developers and the exchange’s revenue

Coinbase’s product manager, Surojit Chatterjee, indicated in an exclusive interview with Forbes, the exchange’s ambition to become “the AWS of crypto” . Coinbase Cloud is part of these stock market plans:

“We’re building this whole suite of Coinbase Cloud products that you can think of as crypto computing services to help developers build their apps faster.”

Coinbase Cloud is also an additional way for Coinbase to diversify its income without being dependent on the fees they levy on transaction volumes which are correlated with fluctuations in the price of cryptocurrencies. This volume fell 29% in the third quarter of 2021, as the crypto markets were relatively calm. Coinbase’s revenue and profit were then down 39% and 75%, respectively, compared to the second quarter of 2021.

For the moment, the acquisition of Bison Trails seems to be paying off for Coinbase, which continues to acquire companies to develop its ecosystem. Will the purchase of Unbound Security also be beneficial for the exchange that wants to offer an innovative mode of private key management?

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Sale day for Bitcoin: 150 BTC more for El Salvador

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Bitcoins at low pricesBitcoin (BTC) falls below $ 50,000, to the delight of El Salvador who decides to take advantage of the balances to increase its reserve of bitcoins by 150 BTC. The country is not giving in to the pressures of institutions that defend fiat currencies printed excessively.

150 BTC at sale price for El Salvador: a tradition of buying bitcoin dips

On December 4, 2021, the President of El Salvador, Nayib Bukele, announced in a tweet, the purchase of an additional 150 BTC by his government, as the price of bitcoin fell below the $ 50,000 mark. El Salvador was able to buy its bitcoins at an average unit price of $ 48,670 . The bears even managed to temporarily pull bitcoin up to $ 42,000. Bitcoin is trading at $ 48,695 at the time of writing.

The Salavador buys 150 BTC for less than $ 50,000 each.
Publication by Nayib Bukele – Source: Twitter

El Salvador now holds 1,270 BTC . The country had already bought the troughs during a bloody Black Friday that caused bitcoin to lose the $ 54,000. The Salvadoran president also informed of the purchase of 420 BTC on October 28, 2021, when the markets recorded a brief drop of just over 3% in the price of bitcoin in the space of 15 minutes.

El Salvador versus central banks: the scarcity of bitcoin versus the printing press

El Salvador continues to increase its national bitcoin stockpile, and is holding out against pressure from traditional financial institutions . The Governor of the Bank of England, Andrew Bailey, criticized El Salvador’s decision to make bitcoin legal tender , during a lecture at the end of November 2021 given to students of the University of Cambridge. Bukele did not give way and responded to this provocation, indicating that the Bank of England “was printing money out of thin air  “

The President of El Salvador has also issued a criticism of central banks in general, and the American Federal Reserve (FED) in particular, asking them to ”  stop printing more and more money  “.

Adoption of bitcoin in El Salvador is progressing, but the country could further improve it by taking a few steps. Changes in the functioning of the national Chivo wallet could thus benefit the adoption of bitcoin in the country.

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