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⚡Bitcoin ETF to Soar to $15.7 Trillion⁉️

Croxroad

04 Jun 2024 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🌎 Global Economic Shift

Bitcoin has exploded into 2024, powered by the arrival of a fleet of spot bitcoin exchange-traded funds (ETFs) on Wall Street. The bitcoin price has soared back to its all-time high of around $70,000 per bitcoin, recovering from a 2022 crash that Goldman Sachs' crypto lead thinks could signal a bitcoin price "turning point." Former billionaire and All In podcast host Chamath Palihapitiya has predicted that Bitcoin could "completely replace gold" as countries adopt it, potentially pushing its market capitalization toward gold's $15.7 trillion. Palihapitiya, who claimed to have bought $1 million worth of bitcoin in 2010, suggested that countries will adopt a dual-currency system, using Bitcoin alongside local currencies for transactions and as a store of value.

El Salvador made history by adopting Bitcoin as its official currency alongside the U.S. dollar in 2021, sparking debate on whether other countries would follow suit. Palihapitiya believes many countries will consider Bitcoin as a credible currency, although he noted that some, including the U.S., might not fully embrace it. He pointed to historical bitcoin price charts that show significant price increases following bitcoin halvings, which reduce the supply of new bitcoin issued to miners. The latest halving, which occurred in April, cut the daily supply of new bitcoin from around 900 to 450. If Bitcoin's price follows past performance, it could soar to almost $500,000 by October 2025.

Bank of America analysts have warned that the U.S. debt load is about to ramp up, adding $1 trillion every 100 days, which could fuel a bitcoin price surge. Michael Hartnett, Bank of America's chief strategist, noted that the rising national debt contributes to the demand for assets like gold and bitcoin. The approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) has been a significant milestone, with Palihapitiya predicting that these ETFs will allow Bitcoin to achieve widespread adoption. Meanwhile, the crypto community has become a powerful lobby group in the U.S., supporting pro-crypto candidates and influencing political discourse, highlighting the growing intersection between cryptocurrency and politics.

🇵🇾 Paraguay Takes Action

Paraguayan authorities have taken decisive action against illegal bitcoin mining operations, shutting down a massive farm hosting 2,738 miners in Saltos de Guaira on May 28. The operation, led by the Paraguayan National Power Administration (ANDE) and local prosecutors, targeted activities syphoning power from the country’s electric grid. These miners had bypassed the electric metre, stealing energy for their operations. Along with the mining rigs, authorities confiscated five electric transformers with a combined installed capacity of 7,150 kilo-volt-amperes. The detection of this farm was facilitated by advanced monitoring techniques, including supervisory and control systems (SCADA) and AI software to track load current peaks.

In a related development, Argentine officials have sought to deepen their understanding of bitcoin adoption by engaging with Salvadoran regulators. Representatives from Argentina’s CNV, equivalent to the U.S. SEC, met with officials from El Salvador’s cryptocurrency regulator, CNAD, to discuss the intricacies of adopting and regulating bitcoin. The discussions, led by CNV's president Roberto Silva and vice president Patricia Boedo, along with CNAD president Juan Carlos Reyes, focused on El Salvador's experience since adopting bitcoin as legal tender. Silva emphasised the value of Salvadoran expertise, particularly the establishment of the National Commission for Digital Assets (CNAD), which could provide significant insights for Argentina’s regulatory approach.

Meanwhile, Ocean, a Bitcoin mining pool backed by Jack Dorsey, has established a global hub in El Salvador, further solidifying the country’s position as a pivotal player in the crypto space. Ocean Mining S.A. de C.V., based in San Salvador, aims to promote the decentralisation of Bitcoin mining globally, taking advantage of El Salvador's favourable regulatory environment. The company also plans to support educational initiatives and the development of bitcoin communities in El Salvador, fostering circular economies and enhancing local engagement with the cryptocurrency ecosystem.

🗼 Token

In the realm of cryptocurrency, a token represents an individual digital asset that operates on a specific blockchain network. Unlike a standalone cryptocurrency like Bitcoin or Ethereum, tokens are typically built on existing blockchain platforms and serve various purposes within their respective ecosystems. For instance, XRP functions as a token on the Ripple blockchain, facilitating transactions and serving as a medium of exchange within the Ripple network. Tokens can have diverse functionalities, including utility tokens that grant access to specific services or assets, security tokens representing ownership in a real-world asset, or governance tokens allowing holders to participate in decision-making processes within decentralised networks.