Ripple Can Depose SEC Official Who Ruled ETH Isn’t a Security — Judge

In brief

  • William Hinman called Ethereum “sufficiently decentralized” and therefore not a security.
  • Ripple may be hoping he has similar thoughts on XRP.

Ripple won a significant procedural victory in its fight with the Securities and Exchange Commission (SEC), which has accused the crypto payment firm and two of its top executives of violating securities laws by selling $1.3 million worth XRP to the general public and others.

In a ruling on Thursday afternoon, U.S. District Court Judge denied the SEC’s motion to quash the deposition of a former SEC official, William Hinman, who said in 2018 that Ethereum is not a security—an investment contract in an enterprise that carries with it the implicit promise of profit from the labor of those running the enterprise.

The ruling means that Ripple—barring a successful appeal by the SEC—can ask Hinman to testify about aspects of his decision-making. The SEC had argued that Ripple’s request to depose was unreasonable and unrelated to the case.

Thursday’s ruling is the latest skirmish in a bitter lawsuit that began when the SEC sued Ripple in December, a bombshell of a case that wiped out billions of dollars of XRP’s value. In April, Ripple also won a discovery ruling that required the SEC to produce internal documents about its discussions of Bitcoin and Ethereum.

Ripple’s legal strategy has turned on portraying the SEC’s lawsuit as arbitrary and unfair, and pointing out previous agency rulings that found Bitcoin and Ethereum are not securities.

The SEC’s Ethereum ruling, which came in a 2018 speech by Hinman, has proved especially controversial. While celebrated by many in the crypto world because if lifted a legal cloud over Ethereum, the speech raised eyebrows in the legal world after Hinman invoked a new doctrine that held a blockchain token was not a security once it became “sufficiently decentralized.” Until the speech, such a doctrine was unknown in securities law, where the “Howey Test”—a set of criteria set out in a 1946 Supreme Court ruling—remains the measure for determining what is a security.

Hinman, who left the SEC shortly after the Ethereum ruling, has himself come under scrutiny. Namely, a Business Insider exposé revealed that, while at the SEC, he was receiving a pension worth $1.6 million from his former law firm, Simpson Thatcher, which he rejoined in 2018. The firm’s clients include the Ethereum Foundation.

Ripple will attempt to persuade the court that XRP should be treated akin to Bitcoin and Ethereum and be exempt from SEC registration. It may also be able to use the SEC’s internally discussed criteria to make that argument.

But those documents have proven hard to get, according to Ripple’s lawyers, who claim the agency is citing privilege in an effort to withhold internal memos.

The SEC today argued that Hinman was speaking for himself, not the agency, though it admitted that agency staff helped draft the speech.

Judge Netburn, however, ordered that Hinman must sit for the deposition after Ripple and SEC agree on the scope. While Thursday’s ruling is a win for Ripple, it is a relatively small procedural matter in a much larger case—one for which the outcome is far from certain.


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DeFi on Bitcoin: Jack Dorsey launches new Square division to make it ‘easy’

Square CEO Jack Dorsey has stated that the firm is building a new division that will focus on building decentralized finance services that utilize Bitcoin.

Dorsey made the announcement via Twitter earlier today, and revealed that Square’s new division will be building an “open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services. Our primary focus is Bitcoin”

The Bitcoin proponent has also launched a dedicated Twitter account to the project, which is dubbed “TBD” at this stage and features a profile picture of popular musician Drake donning red lazer eyes.

The announcement follows up from earlier this month when Dorsey took to Twitter to announce that Square will be launching its own Bitcoin hardware wallet.

More to come …


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Make It Rain Satoshis: Las Vegas Strip Club Starts Accepting Bitcoin Payments

Bitcoin is slowing but surely making its way into the heart of society as we know it. Earlier this week, a major entertainment center in the city of Las Vegas, which is known for its gambling and bustling nightlife, said it would start accepting Bitcoin payments for VIP bottle service online.

The payments would be carried out via a payment processor with which the club has partnered to make the Bitcoin payments easy and effortless.

Related Reading | Bloomberg Analyst Provides Blueprint Of Bitcoin Path To $100,000

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Worthy of note is that the BTC payments are going to be carried out on the Bitcoin lightning network, a layer 2 payment protocol that enables involved parties to transfer their bitcoins to one another using their digital wallets with no fees. These types of transactions are also known as off-chain transactions.

Using on-chain transactions would be too slow and cost too much, as these transactions would need to be confirmed in real-time so the patrons can get the services they are paying for.

Privacy For “Gentlemen Callers”

The strip club which is called Crazy Horse 3 is a “gentlemen’s club.” Since society tends to frown upon entertainment like this, it is imperative for the strip club to protect the privacy of their patrons.

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And hence, using BTC as a payment method will help to ensure the patrons can enjoy a night of adult fun without having to worry about the privacy of their payments.

With BTC, adult entertainment centers like Crazy Horse 3 can avoid the exorbitant fees charged to them by payment processors for being considered “high-risk” businesses. Bitcoin will enable the club to receive their payments directly without the need to involve a third party to confirm the transactions.

Bitcoin price chart from

Bitcoin price chart from

Price of BTC slums as the market remains in extreme fear | Source: BTCUSD on

The extra layer of security provided by the Bitcoin lightning network also ensures that the transactions are encrypted using the anonymous communication network provided by Tor known as onion routing.

According to Crazy Horse 3, this would also ensure out-of-town travelers do not have to worry about using their credit and debit cards in the club. As they would not be able to pay for the service using just BTC and not have it linked to their cards.

Further Bitcoin Payments Going Forward

Crazy Horse 3, which has won the “Best of Las Vegas” awards for “Best Bachelor Party” and “Best Gentlemen’s Club” every year since 2014, explained that while it only accepted bitcoin payments for VIP bottle service for the meantime, it plans to roll out other services for payment with BTC.

The rollout plans to accept crypto for admission into the club. Furthermore, patrons will be able to pay for food selections with their bitcoins, buy craft cocktails, and retail. Last but not least, the club plans to offer crypto payments for the club’s signature “dance dollars” which are value towards lap dances and also for tipping the entertainers in the club.

Related Reading | Crypto Isn’t Money, Annual Economic Report On Bitcoin

The club’s publicist, Lindsay Feldman, commented on the news partnership. Feldman explained that the club was doing this in a bid to providing modern-day guest experiences to its customers.

“Crazy Horse 3 is committed to innovating the modern-day guest experience and as leaders of the Las Vegas entertainment industry,” said Lindsay Feldman. “We are embracing the opportunity to accept Bitcoin as a way to deliver convenience, first-class hospitality, and an added level of anonymity for our guests.”

Bitcoin payments will be processed by Bitcoin payment processor OpenNode. The payment processor will provide the club’s customers with a fast, efficient, and easy way to make BTC payments while having a good time in the club.

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Why Square Will Create New Bitcoin-Focused Company, According To CEO Jack Dorsey

Financial services company Square will double down on its Bitcoin bet. Via his Twitter account, the CEO of this company Jack Dorsey announced the creation of a new division that will focus on “building an open developer platform”.

This new company will integrate Seller, Cash App, and Tidal and will have the objective of facilitating the creation of non-custodial, permissionless, and decentralized financial services.

As Dorsey clarified, the new business will be focus primarily on Bitcoin and is yet to receive a name but seems logical that the aforementioned services will be integrated.

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Seller is an online space designed to connect business owners. This platform allows them to share tips, receive updates, ask questions, and more about using Square on their business model.

Cash App allows its customer to invest in traditional companies’ stocks and Bitcoin. While Tidal operates as a streaming service platform to “bring artists and fans closer together”.

A month ago, Dorsey revealed the company’s plans to create a Bitcoin hardware wallet. Similar to that project, Square’s new business will:

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(…) do this completely in the open. Open roadmap, open development, and open source. Mike Brock is leading and building this team, and we have some ideas around the initial platform primitives we want to build.

Dorsey added that the new business will operate in a similar fashion as Square Crypto, a separate Bitcoin focus division created to make BTC “more than an investment”. According to its CEO, Square Crypto never receives directions from its parent company, only financial support.

Currently, Square Crypto has three active projects the Lightning Development Kit (LDK), the Bitcoin Design Community, and Bitcoin Development Kit. Dorsey claims that these projects were chosen in complete independence by the division.

Investing In Bitcoin-Friendly Square Could Yield Millions In Profits

Dorsey and the companies under his leadership are making an important push to promote and support Bitcoin development.

According to analyst Dan Dolev with Mizuho Securities, the Dorsey-led company could be a game-changer in the banking business of the future.

We believe Cash App may be en route to becoming the ultimate neo-bank and the money center bank of the future. This could make buying SQ analogous to buying JPMorgan in 1871.

The analyst predicts a $150 to $200 average revenue per user for one of Square’s main products, Cash App. In the next decade, this company could rival the $400 to $700 average revenue per user made by banking giants such as JPMorgan.

At the time of writing, Bitcoin (BTC) trades $31,921 with a 3.1% loss in the daily chart.



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This Crypto Sector Will Take Digital Assets to the Masses, Says Trader Elliot Wainman

Popular crypto trader Elliot Wainman thinks one type of blockchain project will serve as the vehicle that brings crypto to the masses.

Wainman tells his 342,000 YouTube followers that market movements indicate blockchain gaming projects are the decisive frontrunners of widespread crypto adoption.



“Games are the only thing that I see as truly decoupled from the crypto ecosystem. Because when you play a game and you enjoy the actual game, it has intrinsic value.”

As evidence, Wainman points to blockchain-based trading and battling game Axie Infinity’s “staggering growth” in the middle of a sector-wide bear market.

Axie Infinity’s governance token, AXS, is trading at $25.07 at time of writing and is up a whopping 497.6% in the past 30 days, according to CoinGecko.

The trader attributes that price spike to pure user growth rather than hype.

“Axie Infinity and its other counterpart token, the Smooth Love Potion, are part of the Axie Infinity ecosystem… The Axie Infinity ecosystem has $27 million dollars in volume on its trading market, and 24,000 active traders with 49,000 active sales. And this is just in the last 24 hours. If we start getting crazy and go for the last 30 days you see that they have $344 million dollars in volume, with 132,000 traders and almost 850,000 trades. What you see here is users and user adoption.

I’ve been saying this for so long, that users are the key, because if you have users, then you have network growth, and if you have network growth with [a] hard-cap supply of assets, then you most likely have asset appreciation. It’s a very, very clear way to drive value to crypto ecosystems.”

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Thorchain Drained of $25 Million in Ethereum

Thorchain has been struck by an attack that drained about 13,000 ETH ($25.1 million) from the protocol.

“While the treasury has the funds to cover the stolen amount, we request the attacker get in contact with the team to discuss return of funds and a bounty commensurate with the discovery,” network administrators wrote in the community’s Telegram group.

It continued by saying that users’ funds “will be available when the issue has been patched & the network resumes.” In the meantime, it said, “The network has been halted.”

Thorchain is a protocol for trading crypto assets, such as Bitcoin and Ethereum, across different blockchains without using a middleman.

This is a developing story. It will be updated.


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Alternative Asset Manager with $89 Billion AUM to Put Funds on Blockchain

Alternative asset manager Apollo Global Management today announced a partnership with Figure Technologies to launch several fund-based blockchain initiatives.

Apollo Global Management Partners with Figure Technologies

In a bid to leverage blockchain technology in the world of finance, asset manager Apollo Global Management has inked a deal with Figure Technologies to collaborate on blockchain-based initiatives.

For the uninitiated, Figure founded the Provenance blockchain – a distributed ledger technology (DLT) solution used to power numerous financial applications including asset-backed securities, managing cap tables for stocks, and payments.

It is worthy of note that in May this year, Figure raised a whopping $200 million at a $3.2 billion valuation.

Figure’s alliance with Apollo will largely focus on listing funds on the blockchain, asset securitization, and digital marketplaces.

Commenting on the development, John Zito, Senior Partner and Deputy CIO of Credit, Apollo, noted:

“This collaboration extends Apollo’s strategy of working with best-in-class fintech firms to seek the operational and cost benefits that blockchain and other technologies can bring to bear.”

As for Apollo, the asset manager has about $463 billion in assets under management as of today. Out of its total AUM, about $323 billion is in credit and the firm has been continually making strides in the blockchain space. The latest partnership with Figure Technologies is just the latest of the milestones for the asset manager.

Blockchain Adoption Continues to Gain Traction

While the crypto market continues to see-saw after the parabolic surge witnessed throughout Q1 2021, the technology underpinning all digital assets continues to witness greater adoption across industries the world over.

On July 5, the World Economic Forum in a detailed report stated the benefits of blockchain technology, saying that the emerging technology could be the solution to mitigating corruption in government services.

An example of blockchain’s use was witnessed recently in India where major IT firm Tech Mahindra allied with Singapore and Hyderabad-based digital supply chain solutions provider StaTwig to implement ‘VaccineLedger’ – a blockchain technology-based supply chain solution to verify the provenance of vaccines across the world.

On a similar note, the National Australian Bank recently partnered with several institutions to launch a blockchain-enabled carbon offset marketplace dubbed Project Carbon.

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The US Intends to Employ Crypto Tracing to Fight Ransomware Attacks

The Biden administration reportedly plans to take severe measures on the use of digital assets in ransomware attacks by starting to track such transactions.

Crypto Tracing to Combat Cyber Attacks

The governing body of the USA discussed how to combat the growing number of ransomware attacks during a virtual briefing with members of Congress. According to Bloomberg, the Biden administration will begin tracing digital assets sent to hackers, who harm firms, corporations, and government agencies with such attacks.

Deputy National Security Adviser Anne Neuberger confirmed that the White House had set up a ransomware task force. She added that its mission would be to obstruct those malicious operations, confront and trace the use of virtual currencies in attacks, and prevent other countries from harboring hackers.

Currently, there is no cybersecurity standard for the private sector, and Congress would aim to create one.

On the other hand, some lawmakers asserted that creating a ransomware task force was not discussed during the meeting nor anything related to cyber protection.


One of the officials, whose identity remained unknown, said that Congress did not even debate the case with the REvil ransomware gang. The infamous hackers’ group recently received accusations of a series of cybercrimes and the US government linked it to Russia. Just days ago, the organization vanished from the Dark Web after receiving an $11 million ransom.

It’s worth noting that US authorities first outlined similar plans in early June when Deputy Press Secretary Karine Jean-Pierre asserted that “combating ransomware is a priority for the administration.”

$11M in BTC to Cybercriminals

The target of the aforementioned cyberattack was the world’s largest meat producer – JBS USA Holdings Inc. The American company, generating more than $50 billion in annual sales, fell victim to the infamous group – REvil – which requested $11 million in bitcoin as ransom.

As it typically happens during similar hacks the perpetrators breached the online security and locked sensible information belonging to the meat producer company. Thus it crippled its production.

Somewhat surprisingly, JBS decided to pay the demand. After transferring the payment, Andre Nogueira, Chief Executive Officer of JBS USA, said the firm feared it might become a victim again, which would further harm all customers relying on its products:

“It was very painful to pay the criminals, but we did the right thing to our customers. We didn’t think we could take this type of risk that something could go wrong in our recovery process. It was insurance to protect our customers.”


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Bitcoin Is Absurd, Part II: Struggles For Satoshi

Right now Bitcoin is experiencing a gigantic drop in hashrate due to the Chinese Communist Party (CCP) shutting down mining in the country. Already being dubbed “The Great Hashrate Migration,” a huge amount of mining equipment is being unplugged and shipped to friendlier jurisdictions around the world. Some Chinese miners have taken to booze as expectations are that nearly all mining operations will be shut down. The largest difficulty adjustment in Bitcoin’s history is likely to occur as a result of the disruption.

The motivations for such a move are opaque. Rumors abound that the CCP is preparing a rollout of their own central bank digital currency around the 2022 Winter Olympics. Mining can be a crafty method of capital flight, sending bitcoin straight into an offshore cold wallet which is a nuisance for the Party. Corrupt cadres could be siphoning energy into their own operations or paid off by local miners. Maybe a younger, digital-native clique in the Party got a little too much bravado and crypto-wealth for Xi Jinping’s tastes. Others have suggested the CCP takes climate change very seriously and is taking a leap forward for the good of the planet. Whatever the reasoning, the CCP decided mining is a threat to their power in some way. The result is that massive amounts of Bitcoin infrastructure currently residing in China is getting the hell out of there as rapidly as possible.

China is the perennial Bitcoin hot topic and a common roll on the FUD dice. Peter Thiel made news earlier this year with an unsettling sound bite that bitcoin could be a “Chinese financial weapon,” stating:

“From China’s point of view they don’t like the US having [the dollar as the world] reserve currency because it gives us a lot of leverage … The euro you can think of as, in part, a Chinese weapon against the dollar [as an additional reserve currency] … Even though I’m sort of a pro-crypto, pro-bitcoin maximalist I do wonder whether at this point bitcoin should also be thought of as, in part, a Chinese financial weapon against the U.S. It threatens fiat money, but it especially threatens the U.S. dollar … China is long bitcoin and perhaps from a geopolitical perspective the US should be asking some tougher questions about exactly how that works.”

Americans are notoriously bad at understanding China — its history, culture, political system and motivations — and perhaps Thiel is no exception despite his level of credibility. But if China is long bitcoin, they either had an epic Elon Musk-style public turn-around or a brilliantly planned leveraged short to get cheaper sats on the other side. Because if the CCP considered bitcoin a financial weapon against the U.S., they just unilaterally disarmed themselves.

It’s also possible that Thiel wasn’t totally wrong but that a shift in attitude occurred inside the Politburo creating a sense of urgency to implement strict controls on Bitcoin in China. As recently as April officials with the People’s Bank of China were stating, “the main role we see for crypto assets going forward … is investment alternative.” The CCP made several half-hearted attempts at restrictions on Bitcoin and crypto-trading over the last decade. When news of this mining ban spread it was initially underestimated by many long-time Bitcoiners until on-the-ground reports confirmed that this time the CCP was dead serious and acting swiftly. This turn of events begs the question: what changed the Party line?

Bitcoin is a monkey wrench thrown into history that Marx, Lenin and Mao couldn’t fathom.

For much of the 20th century the “scientific” next stage of history after capitalism was generally presumed to be socialism, even among top ranks in the capitalist world. Marxist theory of history as class struggle: progressing from feudalism to capitalism, then capitalism to socialism and finally from socialism to communism when — according to the science — the state withers away, classes are abolished and humans become the new Communist Übermensch, free from alienation and want. That narrative did and still does carry weight as almost a predestined arc of history towards progress. Eschatology for the non-believing materialist.

“Marxism-Leninism reveals the laws governing the development of the history of human society.” -Constitution of the Communist Party of China.

“Marxism-Leninism reveals the laws governing the development of the history of human society.” -Constitution of the Communist Party of China.

Socialism with Chinese characteristics, the living successor to Maoism and ideological framework of the CCP, is a rat’s nest of revisionist contradictions. Political words have a way of losing meaning as displayed by the colorfully evil Democratic People’s Republic of Korea. Phrases are thrown around like authoritarian-capitalism or degenerated-workers-state or state-capitalism to describe China’s current system. Yet in their own constitution — and by Marxist standards — China is a socialist country led by a vanguard Communist Party and the dictatorship of the proletariat.

The easiest explanation of the mining crackdown in China is that allowing continued use and growth of Bitcoin is contrary to the core mission of the CCP: keeping power by any means necessary. Whatever economic liberalization and market-based reforms are put in place, the Party is sovereign because they won the civil war. The People’s Liberation Army is the armed wing of the CCP, not the State. The Party’s raison d’etre is protecting the Revolution from threats foreign and domestic, as well as guiding the development of socialism with Chinese characteristics through the stages of history to its predestined conclusion: fully automated luxury space communism … with Chinese characteristics.

In his preface for the new edition of The Sovereign Individual, Peter Thiel wrote:

“… the great conflict over our megapolitical future is only just beginning. On the dimension of technology, the conflict has two poles: AI and crypto … It is no coincidence that AI is the favorite technology of the Communist Party of China. Strong cryptography, at the other pole, holds out the prospect of a decentralized and individualized world. If AI is communist, crypto is libertarian.”

That somewhat contradicts his more recent “China is long bitcoin” comments but maybe he’s right about this one. As discussed in Part I, the revolutionary act of Bitcoin is the invention of a new type of property rights — which do not require a State to enforce — on a peer-to-peer, decentralized accounting ledger. The open source monetary network Satoshi released into the world threw a firebomb into a century’s worth of Marxist theory and practice.

Bitcoin is for enemies, but anti-communism is written into its code. The Marxist ideal and Bitcoin are simply incompatible, since private property is abolished under communism. Every individual on the planet can now hold valuable property in their mind with a memorized passphrase. No one can take that property without the owner deciding to give it up, and even the threat of violence is limited in effectiveness when the owner takes greater precautions.

red guards being led in a struggle session

Red Guards leading a struggle session against class enemies.

The entire Marxist theoretical framework developed from the 19th century onward depends on the assumption that property rights are solely determined and enforced by the State. This is why the left holds a special ire for the police and military as working class traitors upholding the capitalist system. It’s why the capitalist bourgeois state must be overthrown in a revolution and replaced with the dictatorship of the proletariat, which does not necessarily mean authoritarianism but is the Marxist way of saying “workers state”. At least in the Leninist variety, it’s also why an organized Party of professional revolutionaries is absolutely necessary in order to take state power and with it sovereignty to repress the prior regime with terror and violence.

Socialism is not primarily the self-absorbed baizuo socialists of the U.S. or Europe. China is a country of 1.4 billion people led by the Marxist-Leninist CCP. Their influence is gaining momentum and looked to as a model in the developing and developed world alike. Bitcoin and the new power it brings to the individual does not exactly fit into their holy book. As Bitcoin truly enters the geopolitical realm, the CCP and Marxist ideology will be important long-term adversaries not allies.

The only surprise is that it took this long for China to get serious.

During the last day of Bitcoin 2021 in Miami, mischief makers threw trash bags full of Venezuelan bolivars into a large dumpster outside the conference center and the wind scattered them across the ground. As Strike CEO Jack Mallers ended the conference with the emotional El Salvador announcement and attendees began to leave, thousands of 50 bolivar notes were under their feet, courtesy of Nicolás Maduro, the Bolivarian Revolution and socialism of the 21st entury.

China is not the only place where socialism maintains a considerable amount of influence. In Latin America the political shift known as the Pink Tide brought leftists to power in almost every country south of the U.S. border at some point since the new millennium began and continues to this day. Happening concurrently with El Salvador’s move to make bitcoin legal tender last month, Peru held a contentious presidential election that — at least temporarily — has resulted in a narrow victory for the leftist candidate Pedro Castillo. Like former president Evo Morales of Bolivia, Castillo is an indigenous union organizer and a major part of his support comes from the significant indigenous population (25% in Peru, between 40-70% in Bolivia). Right now large numbers of people who are struggling the most in Latin America — those in need of hope — look to socialism and the ubiquitous image of Che Guevara.

indigenous people protest in Peru

An indigenous woman protests in support of Pedro Castillo as the Peruvian election is contested.

One of the most interesting things about El Salvador’s jump into Bitcoin is President Nayib Bukele’s political background. He is a creature of the Left. Bukele was a member of the Farabundo Martí National Liberation Front (FMLN) — the legitimized political party of former communist guerrillas in the Salvadoran civil war — until he was expelled from the party for breaking discipline and then subsequently elected president in a wave of popular support. He ran on an anti-corruption campaign against his former party and the right-wing ARENA, both of whom have former leaders in prison or exile for their crimes.

The first nation-state to make bitcoin legal tender is run by a president that disassociated from the dominant leftist party, won the presidency and after the most recent legislative election has super-majority control over Salvadoran politics and overwhelming popular support. This is a consequential set up for Bitcoin’s true entrance into geopolitics. Political power in the developing world has alternated from neoliberal to socialist and back again for decades, often accompanied by large-scale violence. Developing countries have plenty of battle scars to show for it. Because of El Salvador’s decision, a new option could be emerging that provides an alternative source of hope to the broken politics of the 20th century. No longer are ultra-conservative authoritarians like Jair Bolsonaro of Brazil or neoliberal marionettes like Juan Guaidó of Venezuela the only available opposition to the popularity of socialism in Latin America. Now, there’s a new choice: the bitcoin standard.

The influence of a Marxist theoretical framework reaches from Beijing to Caracas to Brooklyn, and will be with us for the foreseeable future. Few socialists have noticed yet — or perhaps they believe the idea is absurd on its face— but Bitcoin strikes a dagger into the heart of their pseudo-scientific worldview. Though that may be starting to change. It’s possible that China’s move to ban bitcoin mining and implementing a harder line against crypto is the CCP taking notice of this fact as “number go up”. As Bitcoin enters the memespace of global ideological conflict, socialism is a major opponent on the horizon. An opponent that is strong among the oppressed, popular among the academy, organized on a worldwide scale and has no qualms about sending you to a gulag.

This is a guest post by Demi Pop. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.


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Are Bitcoin Prices Heading For Intense Volatility?

Bitcoin prices have been suffering from a distinct malaise lately, trading within a reasonably defined range for several weeks.

Since late May, the digital currency has been stuck mostly between $30,000 and $42,000, CoinDesk figures show.


In spite of this, some market observers have claimed that the digital currency is not only poised to break free of its current range, but could experience some serious upside while doing so.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Oliver von Landsberg-Sadie, the CEO of payments company BCB Group, spoke to this recently.

“All the on-chain analysis suggests we’re at the tight end of a slingshot,” he told CoinDesk.

“It’s quiet now but don’t mistake that for lack of interest.”

Potentially ‘Explosive’ Gains

Scott Melker, a crypto investor and analyst who is the host of The Wolf Of All Streets Podcast, offered his two cents.


“Bitcoin price has been consolidating in a tight range between 42K and 30K for over 8 weeks, with decreasing volume and volatility,” he noted.

“The longer an asset’s price consolidates, the larger the expected expansion when volume and volatility return. We have seen this countless times with Bitcoin, so the expectation is that the next move will be explosive,” said Melker.

“On-chain analysis indicates that supply is being transferred from impatient speculators to Bitcoin whales with large wallets, with new wallets selling and old, larger wallets buying.”

“This theoretically indicates that the smart money is accumulating ahead of the next major move to the upside.”

Jake Wujastyk, chief market analyst of TrendSpider, provided a differing point of view, stating that:


“I disagree in the short-term. I would argue the tension is currently to the downside as those that are holding Bitcoin need to capitulate to reset the price.”

“The anchored VWAP from the covid lows points to a level of $27k below to watch out for short-term.”

“Based on the historical seasonality, we are entering one of the weakest months of the year next month with only a 20% win rate for August over the last 5 years,” he added.

Assessing Probabilities

Jeff Dorman, chief investment officer of asset manager Arca, offered a third perspective.


“Bitcoin is a binary option. It’s either worth close to $0, or it’s worth likely $10 trillion (implying roughly $500k/BTC),” he stated.

“Everything in between is just a path function based on the increased or decreased probabilities and timing of hitting either of these extremes.”

“Earlier this year, those probabilities rose as inflation talk was rising, corporate treasurers were buying, and Elon Musk gave retail traders confidence,” said Dorman.

“Over the past three months, those probabilities fell as Elon pulled out, ESG fears sprang up, and China cracked down,” he stated.

“Traders can use any mumbo-jumbo they want about ‘tension’ and ‘breakouts,’ but the reality is it is meaningless compared to how you assess probabilities.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.



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Bitcoin (BTC) $ 27,598.39 1.35%
Ethereum (ETH) $ 1,668.24 3.39%
Litecoin (LTC) $ 66.33 2.43%
Bitcoin Cash (BCH) $ 251.04 2.72%