Riding The Wave News Summary #12
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News
Table of Contents
Bitcoin holds onto 10% gains ahead of crucial Fed rate hike comments
61% of Americans may purchase crypto in 2022, new survey says
IMF Urges El Salvador to Discontinue Bitcoin’s Legal Tender Status
Biden Administration to Release Executive Order on Crypto as Early as February: Report
Wharton accepts crypto payments for blockchain program tuition fees
YouTube’s Head of Gaming Leaves to Join Polygon Studios as CEO
Etherscan Creators Launch 'Ethereum Instant Messenger' Blockscan Chat
Solana Could Become the Visa of Digital-Asset World: Bank of America
Paris Hilton says that the metaverse will be the ‘future of partying’
Tweets (Mcdonalds & more)
Notable Mentions: An NFT collection of 10,000 cartoon ducks sold out in less than six hours for $120,000 and saved the designers' home from foreclosure, There’s a browser plugin that autoblocks Twitter NFT profile pictures
Bitcoin holds onto 10% gains ahead of crucial Fed rate hike comments
Bitcoin’s correlation to equities remained in focus ahead of a fresh Wall Street open and key information regarding interest rates from the United States Federal Reserve.
The Fed’s Federal Open Market Committee (FOMC) is set to meet Wednesday, and any news regarding interest rates could have instant repercussions for both traditional and crypto markets.
“Tomorrow’s FED FOMC meeting could mean that we will see lots of volatility this week,” Cointelegraph contributor Michaël van de Poppe forecasts.
The markets are nervous about the Fed making changes to reign in inflation so we likely will see volatility. If the news is as expected (tightening continues as planned) the price of stocks + crypto will likely take a hit but at worst the changes to interest rates to curb inflation will only have a short-term impact.
In the long term, the government isn’t going to stop inflation as it encourages people to spend money which helps the economy to grow which countries like to see. This means that even if policies are tightened now it’s only to slow inflation down and not to stop it.
61% of Americans may purchase crypto in 2022, new survey says
Interest in crypto continues to grow as Americans show their excitement in the future of digital assets. The first annual Crypto Confidence Survey published by publicly-traded cryptocurrency platform Voyager Digital examined Americans’ experiences with crypto and their perspectives on how crypto will perform in 2022.
The report shows many positive sentiments. The survey's findings revealed that nearly two-thirds of respondents declared themselves to be crypto bulls while 61% mentioned that they are likely to purchase crypto this year. While Voyager did not disclose the exact number of respondents, the results show a huge percentage increase compared to the results of an earlier survey, which indicated that only 27% of Americans planned to invest in crypto in 2021.
Survey results also indicated that the participants prioritized buying crypto compared to buying mutual funds, traveling by plane, buying a new car, buying a new house and starting a romantic relationship.
Fifty percent of the participants noted that they would invest more in cryptocurrency if they understood it better.
Back in 2021, 63% of U.S. adults also noted that they are curious to learn more about cryptocurrency or are planning to buy crypto.
Exciting to see the trend of investors & potential investors growing. Of these results, I was most encouraged by the large % that want to either learn more about crypto or would feel more comfortable investing more with a better understanding. Lots of resources are being created to explain crypto so as time goes on it becomes easier and easier to learn. Exchanges are currently leading this charge but I expect schools to jump on in the future, the government if they pass regulations, & social media companies as they adopt and create their own projects.
IMF Urges El Salvador to Discontinue Bitcoin’s Legal Tender Status
The executive board of the International Monetary Fund recommended that El Salvador discontinue the use of bitcoin (BTC) as legal tender in in the country due to the financial risks and liabilities created.
The recommendation came in a report issued on Tuesday following bilateral discussions with El Salvador about its economy. El Salvador has been in negotiations with the IMF for a $1.3 billion loan.
Directors also “urged the authorities to narrow the scope of the Bitcoin Law by removing bitcoin’s legal tender status. Some directors also expressed concern over the risks associated with issuing bitcoin-backed bonds.”
The country has been accumulating bitcoin and recently bought 410 more bitcoins, reaching more than 1,500 BTC held. El Salvador also plans to issue a $1 billion bitcoin bond this year that will be 10 years in duration and U.S.-dollar denominated.
It’s normal to see the current establishment push back when change is on the horizon, especially when it threatens their purpose by potentially replacing it. Crypto creates an especially strong reaction due to how it can decentralize currently centralized processes allowing for more distributed power.
In terms of El Salvador discontinuing its current approach, I doubt this will have any impact. There President has large amounts of control within their government and he has been participating in crypto twitter as can be seen below.
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