Ep. 53 The ESRB of Crypto
On this episode of the unhashed podcast: Mark Cuban thinks Bitcoin can never be used as currency, so why is he accepting it at his Maverick’s basketball stadium? Coinbase, Kraken, and Circle have teamed up to create a crypto ratings board, but is this just the crypto equivalent of the ESRB, meant to stave off regulations from outsiders? And...A mining farmed believed to be owned by innosillicon caught fire this week, prompting many to wonder, “Is this what caused the recent 2 hour block time?”
Weekly News Wrap Up:
In an interview with wired, Mark Cuban has seemingly gone bearish on Bitcoin but bullish on Blockchain. He said: “There’s a lot of applications, and they’ll be used…but you can create a blockchain on your own without using all the available cryptocurrencies,” he said. “It’s not that I’m against cryptocurrencies. You just have to be very careful. At best they’re a store of value….not a currency, fiat or otherwise”. The Dallas Mavericks, ironically, announced in August that they were going to start accepting bitcoin as payment.
Cryptocurrency exchange operators including Coinbase, Kraken and Circle have teamed up to create a system that rates digital tokens on how close they are to securities. The points-based rating system, unveiled by Coinbase in a blog post Monday, determines whether a digital asset falls under U.S. securities law using guidance from the Securities and Exchange Commission. “The result of the analysis is a score which makes it easy for members to synthesize the analysis across many tokens and make their own, independent business decisions about whether or how to support an asset,” Coinbase said in the blog post. The framework was established by a newly formed organization set up by the firms, called the Crypto Rating Council. It’s aimed at helping financial services companies that are looking to add support for certain cryptocurrencies but are uncertain of their legal status. It rates digital tokens on a scale of one to five, one being an asset with few or no characteristics of a security, and five sharing the most in common with a security. Aside from Coinbase, Kraken and Circle, founding members of the council also include Anchorage, Bittrex, DRW Cumberland, Genesis and Grayscale Investments.
Videos have been circulating on Twitter showing a Bitcoin mining farm burning down, and while the exact location of the farm is unknown, it is believed to be a $10M mining operation owned by innosilicon in China.
On September 26, 2019, Bloomberg reported a new development in the Venezuelan crypto scene: the largest, state-backed oil company Petroleos de Venezuela SA (PDVSA) has made a formal request that the Venezuelan central bank deal in bitcoin and ethereum. According to Bloomberg, PDVSA is having trouble making and receiving payments through conventional channels, due to banks’ refusal to deal with Venezuelan businesses. However, PDVSA has in its possession a large, unspecified reserve of these two popular crypto assets. It believes that the Central Bank of Venezuela can use these reserves to pay off the company’s debts and receive payments without needing to go through traditional exchanges. Cryptocurrency mining has been especially popular in Venezuela for several years, due to factors such as the low cost of electricity and lack of access to financial institutions caused by international U.S. sanctions. Although the Venezuelan government launched the first state-backed cryptocurrency in 2018, the usage of world-renowned crypto assets like bitcoin has been steadily rising, leaving many wondering what exactly the venezuelan government was thinking when they launched the petro.
Number go down
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