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21 November 2022 - 27 November 2022 week Bitcoin & Economic News

Nov 27, 2022

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Bitcoin News

TL;DR
El Salvador submits bill to enable launch of the Bitcoin volcano bonds
Russia to launch a national Bitcoin trading platform

El Salvador submits bill to enable launch of the Bitcoin volcano bonds
El Salvador’s Minister of the Economy Maria Luisa Hayem Brevé submitted a digital assets issuance bill to the country’s legislative assembly, paving the way for the launch of its bitcoin-backed “volcano” bonds.
First announced one year ago today, the pioneering initiative seeks to attract capital and investors to El Salvador. It was revealed at the time the plans to issue $1 billion in bonds on the Liquid Network, a federated Bitcoin sidechain, with the proceedings of the bonds being split between a $500 million direct allocation to bitcoin and an investment of the same amount in building out energy and bitcoin mining infrastructure in the region.
A sidechain is an independent blockchain that runs parallel to another blockchain, allowing for tokens from that blockchain to be used securely in the sidechain while abiding by a different set of rules, performance requirements, and security mechanisms.
Bitfinex is set to be granted a license in order to be able to process and list the bond issuance in El Salvador.
The bonds will pay a 6.5% yield and enable fast-tracked citizenship for investors. The government will share half the additional gains with investors as a Bitcoin Dividend once the original $500 million has been monetized. These dividends will be dispersed annually using Blockstream's asset management platform.
Russia to launch a national Bitcoin trading platform
Russian lawmakers are working on amendments to launch a national Bitcoin and shitcoin exchange. This effort is reportedly supported both by the Ministry of Finance and the Central Bank of Russia, which have a long history of disagreement over crypto regulation in the country.
As local media reported on Nov. 23, members of the lower chamber of the Russian parliament, the Duma, have been in discussions regarding amendments to the country’s existing cryptocurrency legislation “On digital financial assets” with market stakeholders. The amendments, which would lay down a legal framework for a national exchange, will first be presented to the central bank.
“It makes no sense to deny the existence of cryptocurrencies, the problem is they circulate in a large stream outside of state regulation. These are billions of tax rubles of lost tax revenues to the federal budget.“ by Sergey Altuhov, a member of Duma’s Committee of Economic Policy
In June, the head of Duma’s Committee on Financial Market, Anatoly Aksakov, suggested that a national crypto exchange in Russia could be launched as part of the Moscow Exchange, “a respectable organization with long traditions.” In September, the Moscow Exchange drafted a bill on behalf of the central bank to allow trading in digital financial assets.

Global Economic News

TL;DR
The fall of the US Real Estate market
The inevitable Eurozone’s recession is coming or already here?

The fall of the US Real Estate market
“6 month Treasury yielding more than Real Estate. Who on earth would pick Real Estate of the two now?” by Andreas Steno Larsen, CEO at Steno Research
“It is now more profitable to buy a 6 months treasury bill than to own US real estate… there are 20 million rental properties in the US containing 48 million units…” by Wall Street Silver
Meanwhile, a Shocking 37% Of Real Estate Agents Couldn't Afford October Office Rent.
“How is this possible? the median new home price just hit a record $493,000, up 8.2% M/M from $455,700 in Sept, and up from $427,300 a year ago” by Zerohedge
There are a lot of buyers who still pay a higher price for the new home despite the market already plummeting. These buyers are buying exactly at the highest prices. Will see if ever the housing market will reach these prices. Don’t forget that the Housing is a commodity and not an investment. Soon the market will price this information in for good.
The inevitable Eurozone’s recession is coming or already here?
“Deep Euro zone recession is coming. We've never seen German consumer confidence nose-dive the way it has this year. Consumer confidence took out the 2020 lows during COVID a long time ago. These exceptionally weak survey data are starting to show up in weak retail sales volumes.” by Robin Brooks, Chief Economist at IIF
“Germany's current account surplus (blue) is less than a third of what it once was. Rest of the Euro zone has fallen back into the kind of deficits we've not seen since pre-2008. The Euro zone has a growth problem. Only structural reforms - not debt mutualization - will fix this.” by Robin Brooks, Chief Economist at IIF
“The last time Italy had a trade surplus was in November 2021. Since then it's been uninterruped deficits that have been on a steadily worsening trajectory. The hard reality is that twin deficits for Italy are back. Only way out is growth enhancing reforms, not debt mutualization.” by Robin Brooks, Chief Economist at IIF
“Problem: France, Italy and Spain push for debt mutualization and Germany due to lack of understanding and strategy will agree in the end. Outlook: monetization, play for time, in the end, breakup. Biggest loser: Germany.” by Dr. Daniel Stelter (@thinkBTO)
If the above shown data is not enough:
“We've not seen so few green days in the markets worldwide since the Financial Crisis. Let that sink in.” by @GameofTrades_

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These are just speculations, no investment advice!

“Pack it up everyone... Bitcoin is dead.” by @DylanLeClair_

“BTC Bullmarket 2019-2022 following textbook precision. Wave 5 should peak in the low 170K's against the upper channel line {Src: ELLIOTT WAVE PRINICPLE key to market behavior by Frost and Prechter p.85.}” by @GertvanLagen

“BITCOIN HAS NOT BOTTOMED” by @CryptoSavy1

“Bitcoin never retested $10k when it first broke above resistance and started pumping back in Oct 2020. The $9k-$10k price area is also where the massive double top reversal pattern started and that's where it should complete now. Here's what the bottom might look like” by @profit8lue

“At some point this is going to pop to new ATH's and beyond.” by @JohalMiles

“Bitcoin has witnessed a typical bear market capitulation. Its realized profit/loss ratio hit record low levels.” by @GameofTrades_

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Bitcoin Shorts

Funny Bitcoin short stories

Ye explains why we need Bitcoin. (video)
47% of UK banks don’t allow customers to interact with Bitcoin and crypto exchanges - Finder
Starling Bank bans transactions to Bitcoin exchanges and merchants, saying they are “high risk and heavily used for criminal purposes’.
New Harvard study argues central banks should hold Bitcoin
New York bans new Bitcoin mining for 2 more years - Bloomberg
Old Romanian lady tries to sell her goat for bitcoin. (video)
“Halving progress 64%.” by @therationalroot
“Mountain man sends bitcoin.” by @TuurDemester