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Blockchain & Web3 Weekly Bytes Edition #27
Crypto-Backed Mortgages, Bitcoin's Market Surge, Kamala Harris's Digital Asset Push
August 24, 2024
Hello Fellow Enthusiast,
It's time for Edition #27 of Blockchain & Web3 Weekly Bytes! I've compiled this week's top stories to keep you updated. Here's what's on the agenda:
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Tech Spotlight: Crypto-Backed Mortgages – How cryptocurrency is changing how people finance their homes.
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Week's Highlights: Franklin Templeton expands its tokenized fund to Avalanche, Kamala Harris supports digital asset growth initiatives and more updates you won't want to miss.
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Affiliate Spotlight: Secure your Bitcoin with the Trezor Safe 5 – the Bitcoin-only hardware wallet for ultimate protection.
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Chart of the Week: Bitcoin's Market Dominance – A look at how Bitcoin's dominance has reached a 40-month high, reflecting its growing appeal among investors.
🧐 Weekly Trivia
Which protocol is most commonly associated with decentralized file storage in the Web3 ecosystem?
A) HTTP
B) FTP
C) SMTP
D) IPFS
*Find the answer at the bottom of this newsletter.
🌟 Tech Spotlight – Crypto-Backed Mortgages
As the financial landscape shifts, crypto-backed mortgages are offering a new way for individuals to use their digital assets. For those who have built significant cryptocurrency holdings but find traditional financial services less accessible, these mortgages present an alternative. By using cryptocurrencies as collateral, borrowers can secure a mortgage without converting their crypto into fiat
How Crypto-Backed Mortgages Work
In this type of mortgage, a portion of the borrower’s cryptocurrency is pledged as collateral. This collateral is held securely and is only at risk if the borrower defaults or if the value of the collateral drops significantly. The mortgage is provided in fiat currency, allowing the borrower to purchase property while holding their crypto assets.
Real-World Applications
In the U.S., companies like Milo are leading the way in offering crypto-backed mortgage solutions. Milo enables borrowers to lock in competitive rates and secure long-term financing without needing to sell their crypto. This approach appeals to those who want to maintain their digital assets while investing in real estate.
Benefits:
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Asset Retention: Borrowers can keep their cryptocurrency and avoid potential tax implications by not selling.
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Market Exposure: Borrowers maintain the potential to benefit from future price increases in their digital assets.
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Alternative Access: Provides a mortgage option for those with income or assets that may not align with traditional lending criteria.
Risks:
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Volatility: The fluctuating value of cryptocurrencies can affect the collateral, potentially leading to margin calls or the need for additional collateral.
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Regulatory Changes: As regulations evolve, the terms and availability of crypto-backed mortgages could change, impacting borrowers.
Crypto-backed mortgages are creating new pathways for those looking to use their cryptocurrency holdings innovatively. This growing area in finance offers opportunities and challenges, blending traditional real estate with the emerging digital asset space.
📰 This Week’s Blockchain and Web3 Highlights
Franklin Templeton Expands Tokenized Fund to Avalanche: Franklin Templeton has launched its OnChain U.S. Government Money Fund (FOBXX) on Avalanche, marking the fourth network for the tokenized fund, which is already live on Stellar, Polygon, and Arbitrum.
Kamala Harris to Back Digital Asset Growth Initiatives: Vice President Kamala Harris, through her senior campaign adviser Brian Nelson, has expressed support for policies to foster the growth of digital assets and emerging technologies.
India to Engage Stakeholders for Upcoming Crypto Policy: The Indian government is preparing a consultation paper to shape its crypto policy, inviting industry stakeholders to contribute as it balances innovation with regulation.
Sony Group Prepares to Launch Ethereum Layer 2 Blockchain: Sony’s blockchain division is gearing up to release Soneium, an Ethereum Layer 2 blockchain, in partnership with Startale Labs, with a testnet launch expected soon.
Bitcoin Transaction Fees Spike After Babylon BTC Staking Launch: The launch of native Bitcoin staking on Babylon led to a surge in transaction fees, with costs briefly reaching $132 as users rushed to stake their BTC.
Stork Network Secures $4 Million in Seed Funding: Web3 oracle provider Stork Network has raised $4 million in a seed round led by Lightspeed Faction, aimed at enhancing its product offerings, including Stork Perps.
Binance Plans to Hire 1,000 Amid Compliance Push: Binance is set to expand its workforce by 1,000 employees this year, with a significant focus on bolstering its compliance team by adding 200 members.
🔗 Affiliate Spotlight: Trezor Safe 5 - Bitcoin-only
The Trezor Safe 5 offers a straightforward and secure solution if you're serious about securing your Bitcoin holdings. This Bitcoin-only hardware wallet is designed for those who prioritize simplicity and security, keeping your digital assets safe from online threats.
Why Choose the Trezor Safe 5?
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Bitcoin-Only Focus: With a singular focus on Bitcoin, the Trezor Safe 5 minimizes risks and ensures your assets are stored with maximum security.
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User-Friendly Interface: Designed for ease of use, this wallet is ideal for beginners and experienced Bitcoin holders who want a hassle-free experience.
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Top-Tier Security: The device keeps your private keys offline, protected from hacks and unauthorized access, giving you peace of mind.
Take control of your Bitcoin with the Trezor Safe 5. It's a simple yet powerful tool to keep your assets secure. Get yours through this affiliate link and safeguard your Bitcoin today.
😂 A Little Blockchain Humor Break 🤣
Source: CoinTelegraph
📊 Chart of the Week: Bitcoin's Dominance Surges to 40-Month High
This week's chart sheds light on Bitcoin's growing dominance in the cryptocurrency market, marking a significant milestone. Bitcoin's market share has surged, reaching a 40-month high of 78.5%, outpacing Ethereum and other altcoins.
Key Observations
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Rising Demand: The increase in Bitcoin's dominance suggests a strong preference for Bitcoin among investors, especially in light of the recently approved Bitcoin ETF, which has seen considerable inflows.
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Ethereum's Lag: Despite ongoing speculation about an Ethereum ETF, the demand for Ethereum hasn't matched Bitcoin's surge, as reflected in the limited numbers for the ETH ETF.
The trend began gaining momentum in late 2022, coinciding with growing interest in a Bitcoin ETF. Major events in the past, such as the ICO bubble and the 2021 market peak, have influenced these dynamics. Moving forward, a significant catalyst will likely be needed for Ethereum to alter this trajectory.
Source: CryptoQuant
Thank you for joining me in this edition! We looked at the impact of crypto-backed mortgages, the recent rise in Bitcoin's market dominance, and Kamala Harris's support for digital asset growth.
Trivia Answer: D) IPFS
IPFS plays a crucial role in decentralized file storage within the Web3 ecosystem, providing a robust and distributed solution for data sharing.
Your feedback is always welcomed and valued—it helps shape the future of this community. Until next time, stay engaged and up to date with all the latest in blockchain and Web3.
Best regards,
Ajay Tomar
Disclaimer:
Content in this newsletter is for educational and informational purposes only and is not intended as financial, tax, or legal advice. Always do your research and consult with a professional before making financial decisions. As a solopreneur, I may earn commissions from affiliate links in this newsletter at no extra cost to you. This support helps me bring you valuable content. I only endorse products I trust and believe could benefit you.
