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In our Friday articles, we take a deep dive into the current state of Bitcoin. Every Friday we will continue to publish brief State of Bitcoin newsletters to keep subscribers up to date on news from the Bitcoin industry. For full disclosure, Brandon is a strong believer in Bitcoin and has allocated portions of his portfolios to BTC (HODL baby).
Top stories from the week:
Plebs go at Influencers: Nic Carter, Pomp, Preston Pysh, Peter McCormack, and seemingly every major influencer in the Bitcoin space is being exposed by Bitcoin maxis. I honestly feel for some of them, but the majority deserve it in my opinion. Maxis and plebs on Twitter are going at these influencers for accepting money from the likes of shitcoin companies and others alike. I believe it all started with Cory Klippstein of Swan bitcoin, but I do not believe he should escape criticism. Cory has tweeted positively about staking platforms like BlockFi and others, but has outed worse companies in the past. Influencers are in a difficult position because they have to accept sponsors without fully knowing or controlling a business, but they do have a responsibility. Products and services that influencers promote can lead their listeners in a bad path and hopefully it is without bad intentions, but money can change people. Bear markets have the plebs out for blood and no one is safe.
BlockFi is struggling: There has been a lot that has gone on with BlockFi recently. On June 16th, BlockFi and other crypto lending platforms were forced to liquidate some positions from the venture firm Three Arrow Capital (3AC) due to the inability to meet a margin call on its Bitcoin borrowings. This caused BlockFi to fire 20% of their staff and then it was followed by the state of Iowa fining BlockFi nearly $1 million for violations of the state’s securities act, which was later changed 2 weeks later after receiving their money license in the state of Iowa. There have been rumors of FTX and other big players purchasing a major stake in BlockFi, which is evidence that the company is bleeding. These shitcoin casinos are falling and companies are starting to realize it should be Bitcoin and Bitcoin only.
Compass Mining is Dying: Similar to BlockFi, there has been a lot of smoke around Compass Mining. First, Compass Mining had miners that were located in Russia seized, then the company eliminated their customer Discord server, it has been rumored that Compass has $1.2 million of unpaid energy costs, Dennis Porter has broken affiliation with Compass, and the CEO Whit Gibbs and CFO Jodie Fisher have resigned. There have been multiple Twitter spaces with Compass that have essentially resulted in nothing and have left the Bitcoin community outraged. There has also been build out delays of new facilities and seemingly the world is burning for all things Compass mining. This has the community looking for a new phrase similar to “not your keys not your coins” about Bitcoin miners. I feel there is some space for Bitcoin mining hosting services but poorly run businesses are starting to burn Bitcoiners left and right. Hopefully this bear market weeds out the bad businesses and the strong ones will survive.
FTX buying up anything and everything: FTX has been rumored to purchase up stake in BlockFi, Robinhood, and a few others. Although FTX has denied claims of purchasing Robinhood there also have been rumors of Goldman Sachs purchasing Celsius Networks, which makes it seem like the crypto and traditional finance worlds are destined to collide. It seems like FTX almost has unlimited money, the Miami Heat NBA arena is the FTX area, FTX is the main sponsor of the MLB, Tom Brady is sponsored by FTX among other major athletes, and now there are rumors of buying up more and more companies. In a world where many exchanges are bleeding, somehow FTX is prospering. I’m not sure how long this will last, but it is an interesting development to see the potential of “crypto” mix with TradFi.
Crypto dot com removes Doge and SHIBA rewards: Crypto dot com is a popular exchange that even sponsors the Los Angeles Lakers NBA arena offers staking for certain coins is now limiting the coins for staking. It even offers up to 14.5% on Tether, Polkadot and other shitcoins. Crypto dot com is now REMOVING Shiba, Doge, and 13 other shitcoins as of Monday. Cryptos and shitcoins are dying and Crypto dot com is distancing themselves from the sinking ship. This is a positive in a sense it will not tempt people to get into the shitcoins for yield as I’m sure majority of Crypto dot com’s profits come from Bitcoin as most exchanges.
Saylor buys more Bitcoin: It isn’t a bear market until Michael Saylor buys more Bitcoin. Annnnndddddd what do you know, MicroStrategy and Michael Saylor announced that they have purchased $10 million worth of Bitcoin at a cost basis of $20,817 per Bitcoin and now holds about 129,699 Bitcoins with an average price of about $30,664 per coin. Say what you want about Saylor, but the guy has conviction like no one I have seen. It’s one thing for a pleb to put their money into Bitcoin, its another for a large business that is publicly traded to do so. Saylor is making a big bet, so we will see if that pays off for MicroStrategy, which I am still unsure what they do to be honest.
A quick look on chain:
Current price: $19,100
Market Cap: $402.1B
Spent Output Profit Ratio: 0.9898
Current block height: 741913
Mean block interval: 11min. 22sec.
Meme of the Week
What would the BTC community do without memes? Every week on State of Bitcoin, we feature our favorite meme of the previous week. If you create or see a meme that you like and want us to consider featuring it, tag us on Twitter or instagram (both @Greencandleit)! This week we’re featuring a meme we came across on the @SiLVa_HODL page:
Video Version!
For our complete rip, check us out on the pod:
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Happy Friday everyone - get after it this weekend!
Brandon
Disclosure: The authors of this writing hold positions in cryptocurrency mentioned in this article. That cryptocurrency is Bitcoin. The article was written by Brandon Keys and occasionally a guest writer; it expresses the author's own opinions. They are not receiving compensation for it. The information presented in this article is for informational purposes only and in no way should be construed as financial advice or recommendation to buy or sell any stock or cryptocurrency. None of the authors of this article are financial advisors. I encourage all readers to do further research and do your own due diligence before making any investments.