“The post-Merge bond-like appeal and ESG-compliant label would make ether more attractive than other layer 1 cryptocurrencies, according to BitMEX co-founder Arthur Hayes.
When the dust settles at year-end, I believe ETH will be trading north of $10,000.
The post-Merge cryptocurrency will have the characteristics of a commodity-linked bond and will have an intrinsic yield. In other words, the staked ether becomes a revenue-generating asset, similar to a fixed-income security such as a government bond.
According to Hayes, the classification of ether as a bond could see money managers take on exposure to the second-largest cryptocurrency. Annualized ether staking yields are likely to be in the range of 10% to 15%, implying positive returns when adjusted U.S. inflation.
Hayes added, fiduciaries can make a carry trade once ETH rests in a bond basket. Fiduciaries can borrow U.S. dollars at rates equivalent to Treasury yields to purchase 32 ETH, which will be staked. The entire Treasury yield curve is below 2.5%, which means the cost of getting dollars is significantly less than the forecast staking yields.
There are very few trades in which you get a higher yield investing foreign currency bonds, and the act of hedging back into your home currency actually earns you money.
Hayes also argued that more institutions might adopt ether following the merge because the proof-of-stake mechanism is considered more environmentally friendly than the supposedly energy-intensive proof-of-work mechanism.
This fact [ETH’s post-merge bond-like appeal], paired with ETH 2.0’s [environment, social, government]-compliant label (another stamp of intellectual ossification), makes ETH supremely undervalued on a relative basis vs. Bitcoin, fiat and other [layer 1] competitors.
Hayes added that MicroStrategy (MSTR) should issue debt and purchase ether instead of bitcoin (BTC).”
“The measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country.
One of the first steps will be to bring stablecoins into the U.K. payments system. ‘This will enable consumers to use stablecoin payment services with confidence.’ The Treasury [also] asked the Law Commission to consider the legal status of DAOs.
Meanwhile, the Treasury is looking to engage closely with the public on changes it wants to make to the tax system. ‘We don’t think the tax code will need major surgery to make it work more easily for crypto.’ The U.K. Treasury will aim to resolve specific issues like the treatment of decentralized finance loans and staking.
The government will form a industry group called the “Crypto Asset Engagement Group” to help guide the next steps in regulation. There are also plans for legislation establishing a financial market infrastructure, or “sandbox,” that will enable firms to test and enable distributed ledger technology.”
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“Gensler said securities and commodities are “intertwined” on today’s crypto trading platforms, suggesting neither agency could act as a sole watchdog over such venues.
I’ve asked staff to work with the Commodity Futures Trading Commission (CFTC) on how we jointly might address such platforms that might trade both crypto-based security tokens and some commodity tokens.”
“A new digital euro will offer greater privacy for smaller transactions but won’t allow for full anonymity, officials said after a meeting of finance ministers from the currency bloc on Monday.
A risk-based approach could be followed allowing for more privacy for less risky and smaller transactions and vice versa.
The European Commission is due to present a consultation soon on any legislation that might be needed to back up the new digital euro, but has also been warned that an unduly centralized system could represent a “honeypot” of data for spies and constitute troubling mass surveillance.
The European Parliament last week agreed on controversial new anti-money laundering rules that would require identification of those participating in even small-value payments of cryptocurrencies like bitcoin, which many in the industry have said would invade privacy and stifle innovation.”
“Scientists can leverage blockchain tools, such as smart contracts and tokens, to improve collaboration in scientific endeavors between different stakeholders. This so-called decentralized science movement, or DeSci for short, combines blockchain and Web3 technologies to improve scientific research.
A primary goal of DeSci is wider participation and funding when approaching scientific challenges, as well as democratizing the peer-to-peer review process, which is dominated by a few journals in which it can be costly to appear, and combatting censorship.
Blockchain-based peer review ecosystems can be transparent, and they can lend credibility to research contributed by even pseudonymous participants. Scientists might, for instance, receive a stake or “reward” for participating, incentivizing a wider community to contribute.
To democratize science through decentralized science would allow for a new kind of interface layer for a modern Scientific Revolution. The way to do this is to decentralize access to scientific pursuits — in short, to allow citizen-scientists a role.”
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