Gemini Expands! Trump Buying Bakkt? 19.55% APY?
Daily Bitcoin News!
Daily Crypto News: November 19, 2024
Here’s a breakdown of the biggest stories and insights.
Listener Feedback: The Case for Holding and Self-Custody
Rex’s Story: A longtime listener shared his experience of micro-buying and selling since 2018. If he had held onto all his crypto, he’d have 3 BTC and 100 ETH, now worth around $330,000. However, early selling left him with just 1 BTCand 5 ETH, valued at roughly $100,000. Rex urged new investors to “hold for profit, not fear.”
Self-Custody Concerns: Another listener raised concerns about advocating for self-custody. Exchanges like Coinbase offer robust security, while self-custody carries risks of lost keys and mishandling. But think about the philosophical origins of Bitcoin and its role as sovereign money. However, for some people, trusting exchanges may be a safer option.
My Take:
Crypto investing isn’t one-size-fits-all. Long-term holding can mitigate panic-induced losses, but only invest what you’re willing to ride out during dips. As for custody, the trade-off is clear: self-custody equals control but requires diligence, while exchanges provide convenience but depend on trust. Understand your goals and comfort level with risk.
Gemini Expands to France Under EU’s MICA Framework
Crypto exchange Gemini has officially launched operations in France, capitalizing on the EU’s Markets in Crypto Assets (MICA) regulations. Starting in 2025, MICA will allow registered companies like Gemini to operate seamlessly across all 27 EU member states. Gemini’s move follows its registration as a Digital Asset Service Provider in France last year.
My Take:
Gemini’s expansion shows the importance of regulatory clarity in driving adoption. The EU’s unified framework under MICA is a stark contrast to the fragmented policies of the U.S. If the U.S. wants to remain competitive, it needs to prioritize cohesive crypto regulations.
Trump Media Reportedly Set to Acquire Bakkt
Trump Media and Technology Group (TMTG), parent of Truth Social, is in talks to acquire crypto platform Bakkt in an all-stock deal. Bakkt has struggled financially, but its shares surged 160% on the news. The acquisition would exclude Bakkt’s crypto custody business.
Trump’s involvement in crypto is growing, with plans to meet Coinbase CEO Brian Armstrong. This signals a potential alignment between his administration and crypto-friendly policies.
My Take:
Trump’s increased crypto focus could bring mainstream attention and further legitimize the industry. However, Bakkt’s history of failed pivots raises questions about its long-term viability. TMTG’s involvement may revive Bakkt, but it’s not without risk.
Russia Proposes 15% Crypto Tax
Russia unveiled draft amendments to tax cryptocurrency income, proposing a minimum 15% tax on mining and trading profits. Crypto will be classified as property, with mining income taxed at market value. Traders will follow the same tax structure as securities, with deductions for operational expenses.
My Take:
This is a balanced approach compared to extreme measures like Denmark’s 42% unrealized capital gains tax. Russia’s inclusion of deductions for mining expenses and avoidance of VAT is pragmatic. However, try enforcing compliance in a decentralized space. I don’t know how robust their banking system is to regulate their on and off ramps.
Binance Introduces BFUSD with Promised 19.55% Yield
Binance announced BFUSD, a yield-bearing asset offering 19.55% APY. Unlike stablecoins, it ties rewards to Binance VIP activity, with air-dropped rewards based on users’ trading volumes and holdings. Critics have compared this to Terra Luna’s unsustainable yields, though I think Binance is going to make this more like to a VIP rewards program.
My Take:
While the promised yield is eye-catching, Binance must provide transparency on how it sustains such returns. Without clear mechanics, this could attract scrutiny or skepticism, especially given the lessons learned from previous high-yield failures.
Ethereum Faces Criticism Amid Lagging Growth
Despite Bitcoin’s 109% YTD surge and new ATHs, Ethereum has only risen 36% YTD and remains below its $4,800 ATH. Analysts are questioning Ethereum’s ability to keep pace, citing declining enthusiasm.
My Take:
The criticism is premature. Ethereum’s slower rise reflects its maturation and broader use cases beyond price speculation. As the bull market progresses, expect ETH to gain momentum, especially with developments like Layer 2 scaling and institutional adoption.
Market Update
Bitcoin (BTC): $91,733 (+1.6%)
Ethereum (ETH): $3,098 (flat)
Solana (SOL): $239 (-0.5%)
Total Market Cap: $3.07T (+1.22%)
My Take:
Bitcoin’s dominance at $1.81T signals sustained institutional interest, but Ethereum and altcoins will likely catch up as the market matures. Expect volatility as geopolitical and regulatory developments unfold.
That’s all for today! Leave your thoughts or questions in the comments on Spotify or email me at matt@dailycryptonews.net. Until tomorrow, happy hodling!
***NOT FINANCIAL, LEGAL, OR TAX ADVICE! JUST OPINION! I AM NOT AN EXPERT! I DO NOT GUARANTEE A PARTICULAR OUTCOME I HAVE NO INSIDE KNOWLEDGE! YOU NEED TO DO YOUR OWN RESEARCH AND MAKE YOUR OWN DECISIONS! THIS IS JUST EDUCATION & ENTERTAINMENT!