Pornhub Embraced Bitcoin. Why Didn’t OnlyFans?

In brief

  • OnlyFans is moving away from adult content to maintain relationships with banks and payment processors.
  • Pornhub and Backpage faced similar predicaments, but chose to begin accepting Bitcoin.

When Visa and Mastercard cut off payments to adult website Pornhub last year, concerned over reportedly lax policies to prevent minors from posting content, the site leaned into Bitcoin payments.

OnlyFans, faced with a similar conundrum, chose to say so long to the adults in the room. In the process, it may have left an opening for cryptocurrency-inclined competitors.

OnlyFans, an online subscription service that became one of the world’s top 400 websites by connecting viewers directly to content creators—mainly adult models—has dumped its largest earners and banned “sexually explicit material.” Although it says nudity will still be allowed so long as it meets its acceptability standards, pornography won’t be.

The culprits, says the company, are probably whom you’d expect: “banking partners and payout providers” that weren’t big fans of facilitating payments to a platform known for porn. 

Whereas Pornhub found a way to keep the money flowing by turning exclusively to cryptocurrency payments for its premium subscriptions, OnlyFans, which expects to gross $1.2 billion this year, capitulated to payment processors.

That leaves a void in the space, says Allie Eve Knox, an adult performer and advisor to SpankChain, an Ethereum-based token created specifically to help sex workers get paid more easily. Until today, OnlyFans was her biggest source of income for adult content. 

“That thing that [OnlyFans] gave us was a place to have a paywall (subscription price), a place for [pay-to-view] content (content that could be unlocked at a price), a content store (a place to offer and sell content), and a live stream site,” Knox told Decrypt. “We have had all of those individual sites for a while but [OnlyFans] was able to combine them.”

That one-stop-shop element means creating a cryptocurrency alternative won’t be as simple as just posting some Bitcoin payment addresses. But, said Knox, “Crypto can be helpful. There are tools that already exist in the crypto space that could make an [OnlyFans] competitor very doable.” 

She pointed to a list of resources tweeted by Eva Beylin, director of decentralized API network The Graph. They included OpenSea and LivePeer for NFTs, Arweave for storage and SpankPay for payment processing in Bitcoin and Ethereum.

Others, spurred on by today’s news, are eager to work on the problem—one that SpankChain has been toiling away at for half a decade. Jess Sloss of Seed Club, for instance, suggested setting up token gateways on Discord or Telegram. He followed by saying, “To be clear, to do this right there is still a lot to be figured out.” The tech isn’t quite right yet for most creators’ needs.

Still, crypto-based competitors face more than technical challenges when it comes to adult content. There are potential legal ramifications as well.

Take former classifieds site, an alternative to Craigslist that generated much of its revenue from sex worker advertisements. After it lost its credit card processors in 2015, it turned to Bitcoin. The Department of Justice shut it down in early 2018, and secured the conviction of its CEO on money laundering charges the following year. 

And, then too, there is the social stance toward sex work, which represents the biggest barrier, said Knox:

“Honestly, things that we need are things like support—helping us fight stigma, supporting us publicly, hiring sex workers, building platforms with us on the team, retweeting our content (that we all know everyone is buying)…so that things like this won’t happen.”

You don’t need crypto for that. But it wouldn’t hurt.


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Crypto Price Prediction: Bitcoin Could Be About To Soar To $100,000 And Ethereum To $5,000 As Cardano And Solana Suddenly Surge

Bitcoin and cryptocurrency prices have jumped today with ethereum rival cardano making a huge leap higher—even after Coinbase revealed an ethereum surprise last week.

The bitcoin price remains off the closely-watched $50,000 per bitcoin level but ethereum has climbed back over the $3,000 mark after dipping under it earlier today.

Now, as cardano and solana make double-digit gains and outpace other cryptocurrencies, famed investment strategist Lyn Alden has predicted bitcoin will hit $100,000 and ethereum will reach $5,000 as soon as next year.

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“I think we’re still in kind of the early-to-mid stage of its long-term trajectory,” Alden, who founded Lyn Alden Investment Strategy in 2016, told Insider in an interview. “So that remains, I think, the best risk-reward as kind of a set-it-and-forget-it allocation.”

Alden believes bitcoin had a good chance of topping $100,000 at some point before the end of 2022 while a supply squeeze caused by a recent ethereum upgrade is “tactically bullish” and could send the ethereum price soaring to over $5,000.

The combined cryptocurrency market has recently returned to over $2 trillion, fueling many bullish bitcoin and ethereum predictions.

Bloomberg Intelligence senior commodity strategist Mike McGlone has also said bitcoin could soon hit $100,000 while Tom Lee, the head of research at Fundstrat Global Advisors, thinks bitcoin is due a surge higher and will rally strongly through the second half of 2021.

The latest crypto rally has seen two rivals to ethereum’s blockchain, cardano and solana, more than double in the last month alone.

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“I think solana is a well-designed ethereum competitor,” Alden said. “Its main risk is that it’s newer. It doesn’t really have a significant network effect yet. And so it hasn’t really reached a critical mass, but it is well-designed.”

Solana has close links with the rapidly growing FTX crypto exchange—FTX’s sister company Alameda Research is an investor in solana, and FTX also operates its own decentralized exchange called Serum on the solana blockchain.

Cardano, now the third-biggest cryptocurrency by value after bitcoin and ethereum with a total value of $75 billion, has surged 30% during the last week as investors eye a much-anticipated upgrade that’s due to be released on September 12. The completed upgrade will enable the cardano blockchain to support smart contracts and decentralized finance (DeFi) applications.

“The upgrade will help cardano to match ethereum’s capabilities,” Lukas Enzersdorfer-Konrad, chief product officer at Vienna-based brokerage Bitpanda, wrote in an emailed note.

Alden is less confident when it comes to cardano, however.

“We have to see what happens with cardano,” Alden said. “They have a lot of pipe, but they’ve had pretty slow development, so I tend to prefer solana over cardano.”


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Here’s What Bitcoin Exchange Inventory Levels Means For The Bull Rally

Bitcoin exchange inventory level is a good way to gauge market sentiment towards the cryptocurrency. Inflows to exchanges in the past have usually indicated strong sell sentiment. Stemming from investors wanting to cash out the profits that they have made. This is usually the case during bull markets when prices go up. But for the first time, bitcoin exchange inventory levels are declining even though the price of the digital asset is on the rise.

Related Reading | Hot Bitcoin Summer. But Why Altcoins Are On The Rebound

Numbers show that bitcoin exchange levels are not rising according to the price. If anything, the inverse looks to be the case. The number of bitcoins leaving exchanges recently has risen sharply. Just in the past 30 days, over 100,000 bitcoins have flowed out of exchanges. Representing one of the sharpest exchange reserves decline in the market.

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chart showing decline of bitcoin exchange reserves

chart showing decline of bitcoin exchange reserves

BTC exchange reserves experience sharp downtrend | Source: Twitter

Investors Are Accumulating

The number represents a decreased supply in the market, and the outflows indicate that demand for the digital asset is on the rise. Investors are holding on to their coins instead of moving the coins to exchanges to sell. This has now put a lot of buy pressure on the market. The decreased supply will inadvertently lead to an increase in the price of the digital asset.

Chart showing exchange reserves following the price of bitcoin

Chart showing exchange reserves following the price of bitcoin

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BTC exchange reserves fall for the first time in a bull market | Source: Twitter

These patterns show a peculiar accumulation pattern in the market. Bitcoin accumulation is usually highest when the market is in a bear market. An extended bear market like the one following the 2017-2018 bull market would see investors hoarding coins in wait for the next bull. But presently, accumulation patterns show that investors are hoarding coins even in a bull market.

Sentiment remains generally positive with the Fear & Greed Index finally moving into greed for the first time in months. Accumulation patterns now show a very bullish pattern in the market. Retail investors do not think that the bull market will be over anytime soon, neither do the institutional investors.

Related Reading | Bullish Signal That Resulted In A 250% Increase In Bitcoin Is Getting Triggered Again

As more bitcoins are mined, leading to the decline in the number of bitcoins left to come into the market, investors are trying to get their hands on as much of the digital asset as possible. This increased demand is what has sent the price surging. Leading to a continuation of the bull market that had grinder to a half after the asset hit a new all-time high of $64K.

Bitcoin Moving Up With Accumulation

Bitcoin’s price has been on the up and up going into August. Its price had hit $45K for the first time in two months, pointing to a continuation of the bull market. Eight consecutive green days had seen BTC hit eight green candles, triggering a bull run in the market. At this point, bulls had taken complete control of the market. Bears had recorded massive losses as the market saw over $1 billion shorts liquidated in the span of 24 hours.

Bitcoin price chart from

Bitcoin price chart from

BTC price trailing $44K | Source: BTCUSD on

The bulls have continued to maintain their hold on the market. Bitcoin price has experienced several dips in this week alone. But downwards movement on the charts has not been to a significant extend. The price had tested $48K this week. Eventually breaking back down below $44K when faced with resistance at this level.

Trailing prices now rest in the $44K territory for BTC. Price analysis shows the mark to beat for another rally sits at $46K with the current momentum. As of the time of this writing, BTC is currently trading at $44,470, with an overall market cap of $835 billion.

Featured image from Bitcoin News, charts from Twitter and


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On-Chain Bitcoin Volume At Five-Year Low

But the change-adjusted volume transfer of the network in dollar terms shows just how effectively bitcoin is scaling.

The below is from a recent edition of the Deep Dive, Bitcoin Magazine‘s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

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Bitcoin on-chain volume (change adjusted) has touched a five-year low in bitcoin terms, currently at 329,226 BTC per day over the last seven days. Low on-chain volume has been a short term bearish indicator, as it demonstrates low demand to use the network.

There are a few reasons for this development, one of which is the explosive growth of the Lighting Network, coupled with the secular trend over the last decade of an increasing BTC/USD exchange rate. The same chart in U.S. dollar terms looks quite different.

unnamed (5)

Looking at the change-adjusted volume transfer of the network in dollar terms shows just how effectively bitcoin is scaling as a monetary network. Currently, the total change-adjusted transfer volume (seven-day moving average) on the Bitcoin network is $15.2 billion, off from a high of over $50 billion this April, in part because of the rebounding hash rate and faster-than-average block times.

Similarly, fees as a percentage of bitcoin mining revenue has fallen sharply, and is currently at 1.46%. With the block subsidy trending to zero over time as supply issuance is programmatically reduced in quadrennial fashion over the next 120 years, fees will eventually make up 100% of miner revenue. However, currently, with miner profit margins extremely large, this is not a worry and competition is extremely strong as miners are pulling in near-record revenue across 2021 (in dollar terms).

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Who Stands To Gain From Attacking Bitcoin?

Peeling back the curtain to reveal who is at risk of loss in the wake of Bitcoin’s growth.

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Despite the multitude of opinions on Bitcoin and its future, the reality is that we are at a huge inflection point in history. 

The guest on this episode of the “Bitcoin Magazine Podcast,” Seb Bunney, explained why the decentralization of the economy presents us with an exceptional opportunity to build equality and escape this economic modern-day slavery perpetuated by banks and the government. 

Bunney is a contributor to Bitcoin Magazine, and he discussed the focus of his most recent article,  “The Truth Behind Bitcoin’s Opposition,” which peels back the curtain to reveal who is at risk of loss in the wake of Bitcoin’s growth, and the efforts being made to try to halt it. 

Bunney brings an infectious passion for Bitcoin into the way he educates the public on this vital topic. In this conversation, he covered the skewed view and approach of the Federal Reserve system, what exactly is broken in the current system, how counterterrorism has been used as an excuse to protect the dollar and a lot more that you definitely don’t want to miss. Expect to come away with an excellent gateway into why Bitcoin might be a threat to the U.S. dollar, plus some useful avenues for further exploration.


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Cardano Prepares For Assault On DeFi, Unveils New Stablecoin

Cardano is close to its final Hard Fork Combinator (HFC) event “Alonzo” to implement smart contract capabilities on the mainnet. Developers, community projects, and IOG are preparing for the milestone and the potential growth of the network’s ecosystem.

Recently, IOG released a paper describing a new algorithm stablecoin to be launch on the platform, called Djed. The project has been under development by IOG and partners Emurgo, and Ergo blockchain, as a “stablecoin contract”, Cardano’s developer claimed in an official post.

This digital asset will tackle the most common issues with other stablecoins, such as Tether and USD Coin, such as lack of transparency about their reserves and its liquidity. Thus, it will leverage a smart contract to guarantee the stability of its price. IOG said:

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Djed is a crypto-backed algorithmic stablecoin contract that acts as an autonomous bank. It operates by keeping a reserve of base coins, and minting and burning stablecoins and reserve coins.

As seen below, this Cardano based stablecoin will operate with an Autonomous “Central bank like” contract. Thus, it’ll be comprised of reserve, equity, and liabilities.

Cardano ADA ADAUSDT Djed

In addition, Djed’s stability mechanism will allow the contract to sell stablecoins, and use charging fees, and reserve assets to keep a target price. IOG claims that holders will benefit from this dynamic, as they will be able to boost the stablecoin reserve and “assume the risk of price fluctuation”.

But Djed is not limited to being pegged to the dollar. It can work with other currencies, as long as there are oracles providing the contract with the corresponding pricing index.

Cardano Stablecoin, Better Than The Competion?

The inventor of Cardano and IOG’s CEO Charles Hoskinson celebrated the release of Djed’s paper. Additionally, Hoskinson revealed that the Plutus team is currently working on a prototype and will most likely be able after HFC Alonzo.

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As part of the ethos of Cardano, IOG claims that Djed’s properties are “proven by mathematical theorems”. This helps it achieve a constant peg to the underlying assets with lower bound maintenance, resilience to sudden spikes or drops in the market, no insolvency, no bank runs.

This mechanism will support a fair treatment of all users, according to the official post. Thus, it creates more incentives for holders to keep their coins with a limit in the Djed’s reserves that can be “diluted” to issue more of it. Holders will additionally benefit from the stablecoin’s increase equity_

(…) the reserve surplus per reserve coin is guaranteed to increase as users interact with the contract. Under these conditions, reserve coin holders are guaranteed to profit.

The Cardano based stablecoin will be launch in two versions: the minimal Djed, a “simple and intuitive” stablecoin, and the extended Djed. The latter will have more stability benefits, IOG claims, and more incentives to maintain the reserve ratio “at an optimal level”.

The stablecoin has already been implemented on Ethereum, as an ERC-20 token, Binance Smart Chain, Avalanche, Polygon, and other ecosystem as a tesnet project.

At the of writing, Cardano (ADA) trades at $2.30 with a 8.5% rally in the daily chart.



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Ethereum Creator Vitalik Buterin Joins Advisory Board of Revamped Dogecoin Foundation

Ethereum creator Vitalik Buterin is joining the advisory board of the Dogecoin Foundation, a non-profit organization that is relaunching to support the development of Dogecoin and its blockchain.

The foundation is re-establishing as Dogecoin (DOGE) grows to become one of the largest cryptocurrencies with a market cap of over $39 billion.



In a new announcement, the non-profit highlights its key focus areas.

“It is with great excitement that today we announce the re-establishment of the Dogecoin Foundation (est 2014), with a renewed focus on supporting the Dogecoin Ecosystem, Community and promoting the future of the Dogecoin Blockchain.”

The foundation says it formed a small group of advisors who will serve as allies and advocates for the meme crypto and provide key insights into particular strategic areas.

The advisory board has four members. Jared Birchall, who is representing Tesla CEO Elon Musk, will serve as the legal and financial advisor. Dogecoin core developer Max Keller will serve as technical advisor. Dogecoin co-creator Billy Markus (Shibetoshi Nakamoto) will serve as community and memes advisor. Finally, Buterin will be the blockchain and crypto advisor.

The foundation says it is also looking for funding to support full-time contributors for the project. The non-profit aims to build a group of annual sponsors to fund its activities and development team.

“Our Initial target is to secure a three-year budget so that we can on-board a minimum staff to improve Dogecoin full-time, without them having to worry about job security.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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When Influencers and Crypto Meet: the Rise of the Tokenized Attention Economy

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Starting in 2010, social-media influencers demonstrated how entrepreneurs could be born overnight by leveraging the reach enabled by YouTube, Instagram, and other online platforms. In many ways, these social-media mavens brought about the first wave of the internet’s democratization. Gone are the days when household-name celebrities were the only people with a voice and a platform.

As users on Instagram and Facebook started chipping away at the pre-existing information monopoly of online news and content, we saw the growth of a whole new generation of millionaires being created who controlled their career trajectory entirely on their own terms. The social-media influencer as a profession, and as a new niche in journalism niche, had arrived. Now, anyone can be the next Anderson Cooper or Kim Kardashian. The spectrum of personalities and niche areas of expertise from which to find an audience is near-infinite.



This new-media landscape has a lot in common with the crypto industry. In essence this is the same story about people who take technology into their own hands to subvert the mainstream stranglehold that a group of few holds over the majority.

In the latest iteration of the attention economy, the cryptoverse is merging with the realm of social-media influencers. Fan tokens are taking the attention-based economy of social influencers to the next level because any movement that began as a way to circumvent and escape old media fits perfectly with a system that started out as a way to circumvent and escape old economic structures. Crypto has altered the global economy, and this new form of fan support and financing handled via blockchain solutions is ready to alter the new-media landscape in a big way.

The growth of the crypto influencer

One quick search across Twitter, TikTok, or YouTube will net you a nearly endless stream of crypto-specific influencers promising to demystify digital assets for the masses, and for the most part they have made good on that promise. These influencers are redefining how young audiences get their financial news and analysis (but not advice).

The crypto economy is a perfect fit for this new-media influencer model because it respects passionate, individualized commentary. Crypto enthusiasts are self-made, independent, and they want their news and entertainment to follow suit.

Some of the biggest names in crypto media, such as CryptoWendyO, BitBoy Crypto, and Sheldon Evans, are leading the charge in this new-media landscape on platforms where their down-to-earth personas are the coin of the realm.

Even in the face of some of the biggest names in the world – like Elon Musk, Tom Brady, and Mark Cuban – entering the space, these passionate early adopters dominate the narrative and often eclipse the worldwide celebrity status of these big names in their followers’ minds. To this end, CryptoWendyO has expressed that “TikTok is a great platform to get a large amount of information in a very short amount of time.”



It’s clear: people trust people they get to know without the facade of a million-dollar studio sheen between them. This trust engenders confidence and loyalty in a fanbase, and since this is the world of crypto, people got the idea to decentralize their fanbases.

The token fans want: fan tokens

How do you decentralize a fanbase? You create fan tokens, which are digital assets that allow followers to directly engage with their favorite creators in dynamic new ways. Like some digital assets, these tokens can be used to provide voting rights for upcoming projects, content, physical goods, merchandise, and can even provide access to real-world events. Fan tokens are the blockchain alternative to starting a Patreon, and they are poised to potentially take over as the dominant format of exchange for the burgeoning attention economy.

Sites like have exploded in popularity, as they provide platforms for creators to easily launch their own bespoke fan tokens. Popular streamer Alliestrasza has minted a fan token that holds a value of over $26.00 at time of writing, while even indie band Portugal. The Man has jumped into the craze with their own token that enables fans to support their continued musical endeavors directly.

Fan tokens don’t have to be solely reserved for social-media influencers or artists. Chiliz has created a market in the fan token economy for international football clubs. Fan tokens in this sense are even more sought after as diehard footballers can support their favorite clubs directly and engage with them in ways that were never possible before.

This is also a clever way to authenticate the information one may receive from crowdsourcing. For instance, if Barcelona is considering a uniform change, the club could allow their community to vote on the decision, and they would be confident that the system hadn’t been gamed, as each individual vote could be verified as legitimate (and from legitimate fans) on the blockchain.

However, the fan token economy is not just relegated to crypto enthusiasts.



When some of the biggest social-media influencers in the world decide to suddenly become interested in crypto, it can come off as disingenuous at best and dangerous at worst. For people unfamiliar with the space, there is an increasing risk that they’ll be fooled by less than reputable protocols and useless tokens.

Take for instance Jake Paul, who has recently decided to enter the crypto space with the launch of a vanity token called Dink Doink. The project was immediately met with suspicion, as it was discovered that there was a lot of basic due diligence that had not been done on the project, and even more information on its inception and purpose had not been disclosed.

The future of fandom

Fan tokens are an incredibly smart and useful way for content creators to personalize the monetization of their content in a fully controllable and decentralized fashion, but we also must approach the idea with the same sort of diligence we would approach any traditional crypto project with. The sky’s the limit as we continue to empower the new-media creators to break us free from corporate news and entertainment, but personality should not eclipse good sense moving forward as our digital economies evolve.

We are currently being presented with another wild crypto-based innovation in a system that’s become standard in our daily digital lives. What began as an exercise in empowering individuals with their own voice and platform is now morphing into a new economy where attention can be monetized in a more genuine way, deepening the connection between influencers and their fans. This can be the next big leap for the influencer economy and can provide a connection between fans and creators that is stronger than what has ever been available before.

Michael Gord, managing director of the DigitalBits Foundation and founder of GDA Capital, has contributed to some of the world’s largest blockchain ecosystems, including TRX, LRC, and ONT. He also served as the first enterprise blockchain developer at TD Bank, one of Canada’s largest banks.


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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Vitalik Buterin Criticizes Square, Facebook Crypto Plans

Key Takeaways

  • In a Bloomberg interview, Ethereum founder Vitalik Buterin commented on blockchain plans from Square and Facebook.
  • Buterin criticized Square’s DeFi plans, suggesting that the firm will need to maintain control over user funds.
  • He also criticized Facebook, calling the recent revival of Libra under the name Diem a “rebirth of dead ends.”

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Ethereum creator Vitalik Buterin appeared on Bloomberg today to comment on blockchain efforts from Square and Facebook.

Buterin Is Skeptical of Dorsey’s DeFi Plans

In July, Twitter and Square CEO Jack Dorsey announced plans for a Bitcoin-based DeFi platform that drew comparisons to Ethereum.

Buterin stated that he is “skeptical” about Square’s upcoming DeFi plans due to the fact that the firm will rely on Bitcoin.

He said that Ethereum has native functions and smart contracts that operate like “lockboxes.” These functions ensure that the terms of a DeFi investment cannot be broken and they do not require the DeFi service to hold user funds.

But according to Buterin, Square will likely need to control user funds through a multi-sig wallet owned by different participants.

“Jack is basically going to have to create his own system that enforces those rules,” Buterin said. “It looks similar, but it’ll end up being something with a much weaker trust model.”

Buterin Calls Facebook’s Diem a Dead End

Buterin also commented on Facebook and its Diem cryptocurrency project. He said that Facebook founder and CEO Mark Zuckerberg is “clearly trying figure out what the next stage [of] the Internet is” before Facebook becomes obsolete.

He acknowledged Diem’s previous identity, Libra, and called Facebook’s decision to rename the project a “rebirth of dead ends.”

Buterin said that Facebook’s problem is that “a lot of people mistrust them,” adding that the company’s attempts to assemble a Diem blockchain consortium failed to help it regain trust. “Even that was not enough,” Buterin said. Several former Diem members, including PayPal, Visa, and Mastercard left the group in 2019.

Despite Buterin’s negative stance toward Diem and its extremely slow rollout, the project has not formally been canceled. Diem has reaffirmed its plans to launch a stablecoin as recently as May.

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Ethereum-Based Competitors Are Possible

On whether community-owned successors to Facebook and Twitter could be built on the blockchain, Buterin said that “multiple projects are already trying to do that, and lots are based on Ethereum.” He said that this “can be a threat, but also an opportunity.”

The most recent attempt at an Ethereum-based social network comes from Aave, which proposed a Twitter competitor in July.

In the remainder of the interview, Buterin touched on various other topics, including scalability and the transition to Ethereum 2.0, regulatory enforcement, and DeFi projects.

Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.

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BlackRock Joins Fidelity And Vanguard As A Bitcoin Mining Investor

A mandatory SEC filing dated June 30, 2021 shows that Blackrock, the world’s largest asset manager with $9 trillion in assets, has taken significant stakes in two bitcoin miners,  6.71% in Marathon Digital Holdings and 6.61% in Riot Blockchain.

The total capital commitment amounts to $382,962,003.08 million between both miners. Among Blackrock’s hundreds of mutual funds and ETFs, broad indexes like its iShares Russell 2000 ETF, and its iShares Expanded Tech-Software Sector own the crypto miner shares.

The disclosure comes after Fidelity Group recently revealed that it had taken similarly large stakes in the bitcoin miners. Valley Forge, PA-based Vanguard Group is currently the largest shareholder in Marathon Digital and Riot Blockchain with BlackRock leading behind after the disclosure of the recent filing. 

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Blackrock’s disclosure is part of a larger trend of traditional financial institutions and investors ramping up their exposure to crypto through traditional equity. 

BlackRock’s first foray into the crypto market was in 2019 when it hired Robert Mitchnick, former Product Marketer for Ripple, who is now the head of distributed ledger technology and digital assets at BlackRock.

In January, BlackRock also filed documents with the Securities and Exchange Commision to include cash-settled bitcoin futures as eligible investments for two of its funds, the BlackRock Global Allocation Fund and the BlackRock Strategic Income Opportunities Portfolio. 

Later in April, the firm revealed through an SEC filing that the BlackRock Global Allocation Fund held 37 futures contracts with the Chicago Mercantile Exchange group which matched the January SEC filings BlackRock made for cash-settled bitcoin futures for two of its funds. 

Both Marathon and Riot have seen their shares rise and fall with the price of bitcoin, which reached an all time high of over $60,000 in April . Marathon has seen its stock climb 754% in the past 12 months and Riot’s has risen 848% compared to a 288% increase in the price of bitcoin over the same period. BlackRock owns $206,791,012.04 worth of Marathon and $176,170,991.04 worth of Riot.

Earlier this summer China announced a ban on bitcoin miners. Some expect U.S. based companies like Marathon, based in Las Vegas, Nevada and Riot, based near Denver, Colorado to benefit.


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Bitcoin (BTC) $ 27,411.34 0.65%
Ethereum (ETH) $ 1,641.86 1.59%
Litecoin (LTC) $ 64.27 3.06%
Bitcoin Cash (BCH) $ 228.25 9.15%