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News Summary 11/22: Bitcoin City, Constitution DAO, Hillary Clinton, Economist, Zcash, Crypto.com

El Salvador is planning to build a tax-free Bitcoin city. Constitution DAO made history. Hillary Clinton commented on cryptocurrencies with a negative tone. The Economist caused a stir among crypto investors with its tweet. Zcash moves into the Proof of Stake consensus and Crypto.com has signed another giant deal.

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El Salvador is planning to build a Bitcoin City

El Salvador has been mentioned often in our news summaries. Bitcoin adoption is advancing at a rapid pace and more Salvadorians have now a Bitcoin wallet than a bank account. The latest news relates to El Salvador’s plans to build a Bitcoin City.

El Salvador’s President Nayib Bukele announced plans for a Bitcoin City at the Bitcoin Week conference. Below is a tweet thread with several videos from the event including Bukele’s speech.

The circular Bitcoin city will be built on the coast of El Salvador in the south part of the country. There is a volcano right next to the city which will provide thermal energy for the city and Bitcoin mining.

The new city is a paradise for Bitcoin investors: the tax rate is zero. Tax revenue is obtained purely through VAT.

“Invest here and make all the money you want. This is a fully ecological city that works and is energized by a volcano.”,  commented President Bukele.

The city’s infrastructure will be funded with the first Bitcoin bond in history, amounting to $1 billion. Half the money will be spent on the city and another half on acquiring new bitcoins.

This Volcano Bond has also been tokenized and pays investors an annual interest rate of 6.5%. The technical part is handled by Blockstream. The tokenized bond is issued on its Liquid blockchain. Crypto exchange Bitfitnex is also involved in the process.

Constitution DAO made history

An interesting auction took place last week. At the center of events was Constitution DAO. What happened?

Sotheby’s is the world’s leading auctioneer. It makes headlines from time to time, especially when there are rare and valuable items on auction. Last week Sotheby’s auctioned a copy of the U.S. constitution. Only two such copies exist among private investors.

DAO is a generic term for a decentralized autonomous organization. This is a typical governance model in the world of cryptocurrencies. Constitution DAO was an experiment set up to obtain the auctioned item mentioned earlier.

Constitution DAO raised a total of $46 million from more than 17,000 investors worldwide. The average investment was only about a couple of hundred dollars. Unfortunately, Constitution DAO did not win the auction.

The auction was won by Citadel CEO Ken Griffin. He became a highly controversial figure earlier this year due to Citadel’s involvement in the GameStop mania. Griffin’s winning bid was $43.20 million.

Constitution DAO could have made a higher bid, but other things had to be considered. Constitution DAO would have run out of funds when storage fees, insurance, protection, and other costs were considered.

Despite not winning the auction, Constitution DAO made history. It is reportedly the largest crowdfunding ever to acquire a physical object. Most of the funds were raised within just 72 hours. Constitution DAO will now return the funds to the investors.

Hillary Clinton and The Economist

Let’s take two pieces of news that have sparked a lot of discussion on social media. First is Hillary Clinton, who has kept a low profile since her 2016 election defeat.

Clinton ended up in the headlines due to her comments at Bloomberg’s New Economic Forum. Clinton talked about cryptocurrencies in a negative tone and said they would even threaten the position of the U.S. dollar.

What looks like a very interesting and somewhat exotic effort to literally mine new coins in order to trade with them has the potential for undermining currencies, for undermining the role of the dollar as the reserve currency, for destabilizing nations, perhaps starting with small ones but going much larger.

Clinton’s statement tells a very important story about the evolution of cryptocurrencies. Ten years ago, none of the most influential people in the world knew anything about cryptocurrencies. Now the tone is completely different. Cryptocurrencies are considered a threat to global payment systems!

Then we have The Economist, a well-known financial publication. They tweeted about inflation.

“The sharp increase in inflation over the past year has blindsided many economists. Almost no one saw it coming.” Really? No one saw it coming? This comment caused a lot of amusement.

As Anthony Pompliano tweets above, crypto investors, in particular, have predicted high inflation throughout 2021. It is questionable how a well-known economic magazine can be surprised about rising inflation, as printing money has got totally out of hand.

If you had listened to leading economists you would have missed the massive crypto rally and the highest inflation in 30 years. Everyone should learn something out of this. You are in charge of your own wealth. Be careful who you listen to.

Zcash will change to Proof of Stake consensus

There is a small number of private cryptos in the market. The best known of these is Monero. We rarely see any positive news about private cryptos since they are often connected with cybercrime. This time, however, we have a “normal” news piece from this sector.

Zcash announced that it is moving from a Proof of Work to a Proof of Stake consensus model. Zcash is Monero’s biggest competitor and one of the best-known private cryptos.

You can read more from the tweet below.

You can also find information from this blog post by Electric Coin Company, which describes the roadmap for 2022-2025. ECC is the company developing Zcash. The roadmap outlines three important innovations for the coming years: an official wallet for Zcash, Proof of Stake consensus, and compatibility upgrades.

The consensus model update is based on eco-friendliness and the revolution of ASIC miners. When ASIC miners for Zcash entered the market in 2018, they kicked small miners out of the race. Monero has also struggled with the same problem and changed its consensus algorithm in the past.

In the Proof of Stake consensus, miners are replaced by validators. It will also introduce staking.

The new Proof of Stake consensus makes it also possible to connect Zcash to other blockchains. This interoperability upgrade will be done with the help of Cosmos.

Crypto.com signed a massive marketing deal

Crypto.com has gained widespread attention in recent weeks thanks to its gigantic marketing campaigns and numerous partnership. The crypto.com brand is also visible in different sports.

Last week Crypto.com bought the naming rights to the legendary Staples Center. This is a famous arena in Los Angeles, where NBA teams LA Lakers and LA Clippers play.

This is not a small deal. The naming rights were purchased for as much as $700 million. Staples Center will be renamed to Crypto.com Arena soon.

Ongoing advertising campaigns and sponsorship deals have also given a boost to Crypto.com’s own CRO token. The token price has soared over the past three weeks despite the fact that the rest of the market is down.

The price of the CRO token has gone up over 270 percent in the past 30 days. It is now one of the top 15 cryptocurrencies.

Crypto.com has also joined the platform race. Its Crypto.org and Cronos blockchains have been technically implemented with the Cosmos SDK. This is exactly what Binance did with Binance Chain & Binance Smart Chain a year ago.

Etheremint at its core enables easy transfer (cloning) of Ethereum applications to Cronos blockchain.

Photo by Victor on Unsplash

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