Mt Pelerin animated logo 🇪🇺 STABLECOIN MARKET IS SHIFTING IN EUROPE Following the European Union's new crypto regulation called MiCa (Markets in Crypto-Assests), crypto companies with offices in the EU have been adapting their offering. Coinbase for instance has announced that it will only offer stablecoins that are MiCa-compliant to meet the current regulations: Bloomberg eliveTV Markets v Economics Industries Tech Politics Businessweek Opinion More v/ Technology Coinbase to Delist EU Non-Compliant Stablecoins in December = EU to implement new rules to oversee the crypto industry = Coinbase will provide an update on its plans next month The company's offering will be adapted by the end of 2024. Coinbase pointed out that users would have the opportunity to exchange their stablecoins for compliant ones in the coming months, pushing Circle's USDC in particular. MiCA stipulates that all stablecoin issuers in the European Economic Area require an e-money license from at least one EU member state. In response, Circle has seen an increase in demand for USDC, which is MiCA compliant. Name Chains @ P 1 @ Tether (usDT) PO @B orra -0.01% 2 @ usp coin (UsDC) [3 T B0 33 3 @ pai oA) OB+ ®®:3 EX A LA IO [ RUAKA E +0.10% $1 FE Bl (CTEU -0.01% +0.M% +0.10% FETEET +0.16% -195% +0.01% 1m Change * Pk +1.83% -3.01% Market Cap $119,596b EXCREr) $5,007b Looking at the stablecoin market caps, USDT continues to lead the ranking, with USDC still in second place. As Mt Pelerin is based in Switzerland and not affected by MiCA, our current stablecoin offering will not change for the time being. An overview of all crypto and fiat currencies supported for deposits and withdrawals can be found here. Read more > 📈 ETHEREUM STRUGGLES WITH INFLATION Due to the increasing popularity of Layer-2 solutions, Ethereum inflation has risen to its highest level in two years. According to a recent Binance report, the inflation rate rose to 0.74%. This is mainly due to low on-chain activity and low burn rates, which have affected the monetary balance. = 30D Annualized Issuance W Daily Supply Change 1.0% 5,000 =2 o S 2,500 ajey aouenss| 0.0% fiddng H13 -0.5% 2,500 -1.0% des-1z dog-z1 des-2. Bny-gz Bny-gL Bny-g Inr-62 64 nr6 unr-6z unr-61 unr-6 en-oe fen-oz Kepn-o1 1dy-0e 1dy-0z 1dv-0L Jep-LE - epeLL Je-L 2407 qa3-01 uer-ie uer-1z uer-i) uer-. -5,000 What caused this inflation? The growing popularity of Layer-2 solutions like Arbitrum and Base has had a significant impact on Ethereum's mainnet activity. Because L2 transactions are processed outside the mainchain and at much lower fees, the amount of ETH burned through transaction fees on mainnet decreases as a result. Indeed, since 2021 and the EIP 1559 proposal, a portion of the fees is automatically burned with every transaction. The rate of ETH burned is thus steadily decreasing. However, inflation of less than 1% should not be seen as a negative development, as this will increase again as network activity increases. Vitalik Buterin spoke out in favor of lowering the minimum amount required for solo staking from 32 ETH to 16 or 24 ETH, which would make it easier to start new full nodes: polar- Oct 3, 2024 @post polar_- Follow Replying to @TheDevanshMehta and @sassal0x oh no that's the softened version they have reverted to eth @ @vitalikButerin - Follow I think there's a sane version of this where we recognize that 32 ETH is much more of a barrier than bandwidth reqs, and temporarily do a trade where we up the bandwidth regs a bit and in exchange drop the staking deposit minimum to eg. 16 or 24 ETH. It's net-good for both... Show more 1026 AM 0t 3, 2024 @ 209 ® Reply @ Copylink Read 130 replies Full nodes are run independently on individual computers and are not dependent on third-party providers or staking pools. Securing Ethereum through full nodes is therefore more desirable, as it is the most decentralized way to stake. Read more > 📆 OCTOBER, AN OPTIMAL BUYING OPPORTUNITY? In our last newsletter, we presented some data on the historical September performance of Bitcoin. Last week, hedge fund manager Quinn Thompson from Lekker Capital has also commented on the current performance and sees October as a good buying opportunity: The price decline of around 6% since the end of September is therefore a good buying opportunity. Buying at around $61,000 is a “no-brainer” for Thompson, especially as the macroeconomic backdrop has improved significantly compared to previous downturns. According to him, the previous downward trends were identified when BTC slipped far below the 200 Daily Moving Average. This time, however, the Bitcoin price has managed to recover well above that indicator. It is therefore not possible to speak of a downward trend. The geopolitically tense global situation and the upcoming US elections in November are additional external factors to consider. Historically, October is usually a strong month for Bitcoin and is therefore often called “Uptober”. But as always, no one can predict the future price performance of Bitcoin or any other cryptocurrency. Read more > 🇸🇻 THE IMF AND EL SALVADOR El Salvador is considered a pioneer in terms of Bitcoin and cryptocurrencies since it introduced Bitcoin as legal tender in 2021. Its President Nayib Bukele is considered an absolute supporter of Bitcoin and regularly increases the country's Bitcoin holdings. According to the website “Nayibtracker”, the country's current reserve holds 5,894 bitcoins. The current average cost of El Salvador is around $44,000 per bitcoin. [ Furchases [N Average $/8 marketprice SRR Tolal dollar cost average 21 Daily buy dollarcost average 20,000 70000 60000 50000 40,000 30000 20000 10.000 o P @v 5P P o P P P P P &3 @\gfi PSP PP P P P P 9 P e P @ W P e o e (@ PR T o @ e S e o While El Salvador has mainly received encouragement from the crypto community since the introduction of Bitcoin as a means of payment and the expansion of its state reserves, the approach has not been met with approval everywhere. The International Monetary Fund (IMF) is now putting pressure on the country to scale back its Bitcoin strategy and revise its regulatory framework. The IMF's communications department simply stated that it recommended restricting the scope of the Bitcoin Act, strengthening the regulatory framework and supervision of the ecosystem and limiting the public sector's involvement in Bitcoin. The IMF has repeatedly urged El Salvador to move away from Bitcoin and replace it with traditional financial infrastructure. World v US Election Business" Markets v Sustainability v Legal v Breakingviews v Technology v More V' Future of Money IMF says bitcoin remains key element in El Salvador program talks By Reuters — M October 3, 2024 515 PM GMT+2 - Updated 3 days ago hews Q According to a recent report by Reuters, this was also the predominant topic in the latest talks between the two parties. The IMF's criticism has met with some headwinds in the crypto world. For example, Matthew Sigel, responsible for digital assets at VanEck, expressed a negative view of the IMF's stance: matthew sigel, recovering CFA & X @matthew_sigel - Follow IMF Continues to Hold El Salvador Hostage Over #Bitcoin, Despite: >GDP up 10%+ since adopting #Bitcoin, consistently outpacing regional peers >Murder rate down by 95% >Tourism up 95% in 2023 alone @nayibbukele, your vision is driving a remarkable transformation! Stand firm! IMF Says Addressing Bitcoin Risks Are Key In El Salvador Talks (Bloomberg) -~ The International onetary Fund has recommended €l Salvador arrow the scope of s Bitcoin aw during talks on potential lending program, IHF director of communications Jule Kazack said i a press conference in Washington DC on Thursday. TP YTy : . hering the regutatory Tramework and OVerSigh of (e Biicom Korack said T s tht can be used to boost productiv Y L T T e The recently presented 2025 buget proposal “represents a step n gthening public fnances. The draft budget includes measure contain the wage bill and spending on goods and services and it vl be PRTeTRpeaeT T ) 738 ® Reply @ Copy link Read 38 replies The IMF rejects Bitcoin and cryptocurrencies in general, and focuses primarily on the promotion of CBDCs. Due to the devaluation of traditional fiat currencies, many private individuals are turning to cryptocurrencies, especially Bitcoin. The IMF also proposed introducing a tax on the energy used for crypto mining in order to reduce carbon emissions. This could drive up energy costs for miners by 85%. As already mentioned, the IMF is against non-state-controlled cryptocurrencies and is in favor of central bank digital currencies and has published the so-called REDI framework. This is intended to help plan and implement CBDCs. Two worlds collide here - decentralization in the form of Bitcoin vs. state regulation and centralization in the form of CBDCs. It will be interesting to see what will prevail in the coming years. Read more > 🕵️‍♀️ HBO DOCUMENTARY ON SATOSHI'S IDENTITY Since the beginning of the crypto space, there have been countless myths and theories about the identity of Bitcoin creator Satoshi Nakamoto. Satoshi worked on the Bitcoin source code until mid-2010 and took part in discussions in the bitcointalk.org forum. At this point, however, Nakamoto ceased all his activities and relinquished control of all Bitcoin-related domains that he had previously registered and owned. Although many people have tried to find out his true identity and the reasons for his disappearance, no one has been able to conclusively prove who Satoshi Nakamoto really was. Now a new HBO documentary claims to have identified Leonard Harris Sassaman, a cyberpunk and cryptographer, as the possible person behind Satoshi Nakamoto.  The documentary was announced on October 3 under the name “Money Electric: The Bitcoin Mystery” and is due to be released on October 8: Sassaman attended a private school in Pennsylvania and was considered a prodigy in the field of cryptography. He moved to California and became part of the local cyberpunk community for the protection of privacy. He went on to study with David Chaum, who is considered the godfather of cryptography. Sassaman was diagnosed with depression at an early age and commited suicide on July 3, 2011 at the age of 31. Meredith L. Patterson « « X @maradydd - Follow It's a very well-researched and respectful article, but to the best of my knowledge, Len was not Satoshi. Worth reading for the history and the conclusions about mental health, though. HN Front Page @hn frontpage Len Sassaman and Satoshi L leung-btc.medium. comylen-sassaman-a C: news.ycombinator.com/item?id=262316. 10:24 PM - Feb 23, 2021 o ® 193 ® Reply @ Copylink Read 11 replies Sassaman's wife commented on that speculation on X, where she stated not believing that her deceased husband was Nakamoto. Some attribute the speculation and the connection between Sassaman and Nakamoto primarily to the connection between Satoshi's last message and Sassaman's death. Nakamoto wrote his last post to the Bitcoin community on April 23, 2011, which was around two months before Sassaman's death. He was also in contact with Finney, another deceased cryptographer, who was also considered a possible inventor of Bitcoin. Without much surprise, who was behind Satoshi Nakamoto remains a complete mystery. Read more > Referral animation INVITE FRIENDS & EARN Invite your friends to use Mt Pelerin and earn 25% of their fees in reward! Get started > Share Share Share Share Share Share Forward Forward Twitter LinkedIn Facebook Instagram © 2024 Mt Pelerin Group SA, all rights reserved. This Newsletter is for informational purposes only. Any information herein does not constitute any legal, financial, tax or investment advice and is not intended as and is not to be taken as a recommendation, offer or solicitation for buying, trading or selling cryptocurrencies in any jurisdiction, including those in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such a solicitation or offer. 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