Bitcoin Miners Flee China

Plus: A hashrate shakeup, PayPal & Visa back $300M crypto fund and more. |

What you need to know today in crypto and beyond  June 22, 2021 Sponsored By:     Welcome to The Node.   If you were forwarded this newsletter and would like to receive it, sign up here.   Questions? Feedback? We'd love to hear from you! Simply reply to this email.   –Daniel Kuhn Today's must-reads Top Shelf Bitcoin has dropped below $30,000 for the first time since January amid renewed action against the cryptocurrency industry in China.     GO WEST, BITCOIN! Chinese bitcoin mining firm BIT Mining delivered 320 machines to Kazakhstan after being forced by the state energy regulator to shut down its data center in Sichuan. The company is expected to send another batch of 2,600 machines before July 1, it announced Monday. Yesterday, a Chinese logistics firm said it would airlift 3 metric tons of mining machines to Maryland. Nic Carter writes about this geographical hashrate shakeup in his latest column.   JOINING THE RANKS: Banking giants and relative crypto VC newcomers PayPal and Visa have joined Blockchain Capital's new $300 million venture fund, according to a Tuesday announcement. Blockchain Capital has over $1.5 billion under management, General Partner Spencer Bogart told CoinDesk. For PayPal, this is the first time it will serve as limited partner to a digital asset fund.    SUING EL SALVADOR: A deputy of El Salvador's opposition party, FMNL, has filed a lawsuit to stop the country's new bitcoin law, arguing it is unconstitutional and doesn't consider the harmful effects it could have on the country. "The bitcoin law is to loot people's pockets, it is tax exempt," citizen plaintiff Oscar Artero said during a press conference. "They want to force us to trade."    DCG TO BUY ETC: Digital Currency Group (DCG), parent company of Grayscale Investments and CoinDesk, said Monday it will buy up to $50 million shares in the Ethereum Classic Trust. DCG will fund the purchases with cash and make them on the open market. Ethereum Classic Trust's price tripled in May before falling about 70% into the low $50s. It hasn't recovered yet.    NEW BITCOIN FUND: Investment firm VanEck filed a prospectus for a new bitcoin futures mutual fund with the U.S. SEC on Monday. The "Bitcoin Strategy Fund" would invest in bitcoin futures contracts as well as pooled investment vehicles and exchange-traded products linked to bitcoin rather than BTC directly.   –Helene Braun A message from Nexo Your digital assets deserve a savings account in their BEST INTEREST. 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Join the Telegram group for announcements and airdrops. What others are writing... Off-Chain Signals Author and investor Nassim Nicholas Taleb published a paper warning that crypto is more vulnerable to government power than many would want to admit (Taleb) Bank of France completes CBDC settlement experiment with SEBA Bank (The Block)  BofA's Francisco Blanch discusses how bitcoin and gold are linked "in a way," on Bloomberg TV  China's ban on crypto mining is "fantastic news," a former crypto exchange engineer said (Cointelegraph) Fireblocks is being sued over an alleged loss of $71 million in ETH (Decrypt) –H.B. & D.K. A message from Titan Titan is excited to launch Titan Crypto, the first actively managed crypto strategy available to all U.S. investors (both accredited and non-accredited)*   The investment team at Titan conducts deep fundamental and quantitative research to identify what they believe are the highest-quality crypto assets, and actively manages a portfolio with the goal of generating outstanding returns.   Join the waitlist to get Titan Crypto for - $0 commissions, 0% advisory fee — only valid for those on the waitlist.   Join the waitlist   *At launch, Titan Crypto will be available to all U.S. residents except those with home addresses in New York. Sponsored Content   Ledger: Ledger Presents School of Block: Part 2 School's back for the summer. For all the latest developments in crypto, DeFi and Web 3.0, check out Ledger's weekly video series, School of Block. With so much innovation in the world of crypto happening so quickly, it's important to understand the basics. If you're a crypto newbie – or even a crypto skeptic – School of Block can help you understand what's really going on. Putting the news in perspective The Takeaway Digital Ownership, Getting Heated For some Texans, the dystopian sci-fi future we're all dreading arrived late last week when state energy providers remotely changed home thermostats during a heatwave. As part of an energy-saving program called Smart Savers Texas run by a company called EnergyHub, participants opted to have their smart thermostats automatically adjusted during times of peak demand. This was in exchange for lowered power bills and entry into a $5,000 sweepstakes.    But it took many by surprise.    It's important to stress the program was optional and that participants could opt out at any time. Thermostat adjustments would only last one to four hours at a time on weekdays from June 1 through Sept. 30, excluding holidays. "During summer peak energy demand days, we may briefly adjust your thermostat settings by a few degrees," CPS Energy, a Texas energy provider, said on its website. "We'll do this only as needed."  Still, the event raises questions about the "ownership" of gadgets we allow into our homes. Proprietary software often comes with hidden terms and license agreements. No one reads the fine print. This was likely why so many Texans woke up in a sweat last week, but it's happened before. There are reports of "smart locks" locking people out of their homes and Ring alarms becoming part of the surveillance state.  "The internet itself has become owned and captured by big banks and companies," Mikey McManus, a technology consultant and co-author of "Trillions: Thriving in the Emerging Information Ecology" told CoinDesk last fall. "Not everything should be connected."  Much of McManus' work centers around preparing people for a reality where the world of atoms has been thoroughly disrupted or replaced by bits. We're well on our way to an internet of trillions of nodes, or a "sea of informational devices," where everything we do or touch is somehow integrated into the cloud. This new, potential data-centric epoch in human history is sometimes called the internet of things.    "When we shift to trillions of computational devices, it's not information in the device. It's us living in the information," McManus said. This could be a blessing or a curse, depending on how much authority we grant these devices to shape the world around us. And whether human operators are privy to know why or how adjustments are made.  Bill Gates' $123 million mansion famously had temperature and lighting systems installed that would adjust to guests' preferred settings. That level of luxury is now available to middle class consumers with smart thermostats. But did we trade comfort and convenience for ultimate control?  As tech firms and governments become ever intertwined, we should remember what we may be giving away when we go digital. For some, crypto is a digital revanchist movement – an attempt to reclaim ownership rights over cyberspace. This includes money, obviously, but also identity and communities. I don't know if a blockchain would have prevented what happened during the Texas heatwave, or if that would even be preferable, but I do know the conversation around digital ownership is only getting more heated. –D.K. The cryptocurrency movement has never been so sprawling, reaching every corner of the planet.   Crypto State by CoinDesk aims to connect with local communities to explore this movement of financial disruption and how it trickles down to every corner of the globe, from DeFi investment opportunities to alternative ways to transact and store wealth.    We're making virtual stops with audiences in Nigeria, the Middle East and Southeast Asia this year. Register for the Crypto State virtual tour. The Chaser... ATTENTION: Scammers have been sending fraudulent emails with links to sites disguised to look like coindesk.com. If you are in doubt about a link, type https://www.coindesk.com directly into your browser; do not copy and paste. Remember, if something seems too good to be true, it probably is. 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