As the war on crypto heats up in China, a completely different environment is taking shape in the West. Here's a quick breakdown:

• In its quest to become the new home of Bitcoin, Bitcoin Land, so to speak, Miami has reportedly approved its own cryptocoin, the MiamiCoin, so you can perhaps look forward to copping some of those next time you head south to the Magic City of the South.
• Meanwhile, the city's Mayor Francis Suarez is promoting the use of nuclear energy for environmentally friendly Bitcoin mining and is floating the idea that maybe the city may be accepting tax payments in Bitcoin in the future. See that, El Salvador? Before you know it, that little pebble you  guys tossed might become an avalanche!
• US cryptocurrency exchange, Coinbase, is encouraging investors to deposit their entire paycheck for fee free transactions.
• And in El Salvador, the Central American country is unveiling the Volcanode as it seeks to enter the Bitcoin mining game!

It's dizzying, guys!

And as a result of these constantly changing factors, Bitcoin can hardly  determine whether to rise or fall, so that in the past few days, the currency's performance can  be likened to a  a bucking horse at a rodeo, throwing off nauseous, risk averse traders faster than you can blink.

Image by Jenni Corbett from Pixabay 

 

On the topic of Bitcoin prices, though, even as whales swoop in and take advantage of the dip, the CEO of JP Morgan, Jamie Dimon, says the largest cryptocurrency by market cap could 10X in the near future, he still wouldn't want it. Now, if I said what I said were a person!

Anyways, guys, we've got a lot of ground to cover, so let's get into it. 

China's Evergrande Crisis and its intersection with Bitcoin

Earlier this month, Chinese real estate conglomerate, the Evergrande Group, headquartered in Shengzhen, ran short of cash as it struggled under more than US$300 billion in debt, sending shock waves across  the global stock market as concerns spread that the real estate developer's debt extended beyond its operations and could affect others in the finance and real estate space.

This morning, as it scrambles to raise funds, Evergrande announced  plans to sell the  9.99 billion yuan ($1.5 billion) stake it owns in Shengjing Bank Co Ltd  to a state-owned asset management company. The net proceeds from this sale will be returned to Shengjiang Bank to settle the relevant financial liabilities of the group due to the bank. The group has not yet divulged a payment strategy for offshore holders, however, who are expecting $47.5 million today. Ouch!

Now, what does this have to do with the cryptocurrency market? Evergrande's crisis has led to a broad base selloff across assets, however, in the crypto market, there is concern about stablecoins' exposure, given that some of their holdings is in commercial paper – a form of short-term debt. There is concern that the commercial paper they hold may lose value.

This is a novel situation and so, the entire financial commercial community is following events as they unfold closely. 

Crypto sites blocked by the Great Firewall

Meanwhile, the crypto community in China is huddling under the threat of the whip as China marches on in its quest to oust anything that even hints at crypto trading, or even shows interest in any type of speculating investing.

See what you did, Evergrande? Do you see?! Y'all done went and made the big boys mad! And now no one can catch a break!

Seriously though,  China's Internet censorship agency, the Cyberspace Administration of China (CAC), appears to have crypto tracking and trading sites in its crosshairs, and now, according to  Comparitech, a website that allows users to check whether a specific domain has been blocked in China, traders in mainland China are unable to access the crypto price tracking websites CoinGecko and CoinMarketCap. and TradingView.

This follows the September 15th announcement by  People’s Bank of China (PBOC), advising that all cryptocurrency-related activities, including mining and running crypto exchanges, were illegal. The authorities in China are now threatening to investigate anyone involved in marketing, promotion, payment settlement, or technical support for overseas crypto exchanges though the possession of cryptocurrencies has not yet been made illegal.

Miami in the Crypto Race

Vote to accept MiamiCoin

Back in the US, the city of Miami is racing to the finish, hoping to add a new title to its belt, the Crypto-Epicenter of the West, and city commissioners have  reportedly voted to accept close to $5 million worth of the MiamiCoin which proponents say represents a new way to fund government projects and improve the quality of life for city residents.

It doesn't end there though, 

Mayor promotes nuclear energy mining

Bitcoin miners ousted from China, may find a home in Miami as Mayor Francis Suarez has reportedly  proposed the setting up of Bitcoin mining facilities near the Turkey Point nuclear power plant located in the south side of Florida to avoid the environmental impact of Bitcoin mining based on non-renewable energy. Seems like a pretty cool deal, right? You get the sun, the sea, the warmth, video games during the week, freedom of expression, access to all Marvel movies, and Bitcoin mining...  this is a trip to the candy store!

And it gets better.

You may soon be able to pay your taxes in bitcoin

The city's bitcoin friendly mayor has also revealed that the review process has started to determine the best way forward for government and municipal workers to be paid in bitcoin.

Demurring that this process has substantial implications and so the process can go on for a while, Suarez said the city is about to issue a request for proposal to select vendors that will allow the city to pay employees in bitcoin and to accept bitcoin for fees. He said a county commissioner was also exploring a way for taxes to be paid in bitcoin. 

Suarez's comments were made during an appearance on Anthony Pompliano's Best Business Show.

Drumroll for the future of payroll

And then, Coinbase reentered the chat.

On September 17th,  the cryptocurrency exchange announced via blog that it will allow customers in the US to have their paychecks deposited directly into their accounts, indicating that doing so will gain them instant access to the cryproeconomy. Persons taking up this offer can:

• Get paid in full or in part with any of the 100+ crypto available on Coinbase. Investors can also opt for payment in US dollars
• Immediately earn interest on crypto-investments or earn crypto rewards with a Coinbase Card. 
• Make crypto purchases without a transaction fee. 

The blog, penned by Coinbase's Sr Director, Product, Prakash Hariramani also reveals that Coinbase is working on signing up companies that wish to offer employees the ability to be paid in cryptocurrency.

Get ready for the Volcanode!

El Salvador's President Nayib Bukele is keeping his foot on the neck of his detractors and he is showing no signs of letting up anytime soon.

Yesterday, he released a video on Twitter captioned "First steps..." showing what appears to be BTC mining rigs going online at a geothermal power plant that harnesses energy from the nation’s active volcanoes. I'm spilling my popcorn, y'all!

To quote one of his followers, Shaolin Capital @CatchMeStacking: "The ash rate is rising."

JP Morgan CEO: I said what I said!

Well, those weren't his exact words, all right? I'm paraphrasing. Thank you, Nene!

Okay, guys, get this. Have you ever had that one friend who is soooo stubborn that if you are debating, he would adopt a position and hold on to his position for dear life no matter what evidence is presented to the contrary? Yeah, JP Morgan CEO Jamie Dimon is that friend. And though the banking mogul may scoff at the idea of a mere plebeian even daring to think of him as a friend, I'ma call him that anyway. Because the CEO is holding on to his views that bitcoin is a fraud and is insisting that he will have nothing to do with it, even as the firm he leads makes an about turn and is increasingly involved in cryptocurrency investing. 

In an interview with the Times of India, Dimon likened the evolution of the crypto market to beanie babies, tulip bulbs and internet stock.

"I don't really care about bitcoin," he said. "I think people waste too much time and breath on it...  I think if you borrow money to buy bitcoin, you're a fool."

Well, he has a point there. But, I think, this is a cardinal rule for crypto investing and trading, right? Only invest what you're prepared to lose.

Anyways, Dimon went on to concede that the position he took did not mean the price of bitcoin wouldn't go up ten times in the next five years, but he added, "I don’t care about that."

I mean, maybe the dude doesn't have to, right? I'd care a whole lot if my crypto holdings went up ten times in five years though!

Anyways, that's it for me, guys. I think I touched on everything I wanted to cover in this post, though trust me, I've got a lot more to bring to you!

For now though, what are your thoughts on these developments? There are so many things to unpack. But do you think the Evergrande crisis will temporarily cripple the crypto market? Will you be copping some MiamiCoin in the future? What are your thoughts on Coinbase's promotion? And the volcanode in El Salvador, do you see this as a game changer? Let me know guys! 

Thanks as always for stopping by. As always, be safe!