Manuel Polavieja considers that anything that can satisfy the need for exchange is useful. Some users believe that Bitcoin is valuable even though it has no intrinsic value.

For a long time, many people in the ecosystem have been wondering if Bitcoin has intrinsic value. Non-believers often ask themselves that question because they do not find the momentum of the cryptocurrency’s price logical.

Intrinsic value refers to the fundamental, true, inherent, or essential value of an asset, regardless of its market price.

Critics of Bitcoin, such as American economists Paul Krugman and Robert J. Shiller, say that it is nothing but a medium of electronic exchange. They consider that no demand supports the function of the pioneering cryptocurrency to cover other needs, that is, it has no intrinsic value.

However, Spanish thinkers, such as financial analyst Manuel Polavieja, rely on the study by developer Fernando Nieto. They do not recommend applying traditional finance theories to Bitcoin as they demand that the cryptocurrency be valuable to be useful.

“Most economists remain anchored to the Theory of Objective Value and do not accept the Theory of Subjective Value,” according to Polavieja. He comments that the former is a wrong approach as it does not take into account different human needs.

Bitcoin Is Valuable for Its Security and for Being an Anti-Censorship Network

Venezuelan Javier Bastardo speaks of the “intersubjective concept” when referring to the intrinsic value of Bitcoin. He considers valuation to be a subjective phenomenon that allows “certain elements of that world to have meaning or value X or Y.”

José Peña emphasizes that the intrinsic value of a thing is directly related to its usefulness for each person. For example, the skins that define the appearance of video game characters are very valuable to gamers.

Bitcoin Allows Escaping from the Traditional Financial System

According to Chilean Pedro Silva, it is possible to appreciate the intrinsic value of Bitcoin by understanding state monetary policies that victimize individuals. In his opinion, the traditional financial system produces inorganic money without backing, pretending that it builds trust because governments issue it.

The president of the NGO Bitcoin Chile, Miguel Klagges, believes that a true bitcoiner manages to understand the intrinsic value of Bitcoin. If he is unable to do so, no one can consider him an advocate of the pioneering cryptocurrency. He adds that the user who understands the intrinsic value of Bitcoin has understood the fundamentals of the network.

Bitcoin is an Alternative to the Traditional Monetary System

The co-founder and president of the NGO Bitcoin Argentina, Rodolfo Andragnes, states that the intrinsic value of things does not exist. He argues that it may be associated with the benefit that a person gets when something meets his or her needs.

For that reason, he thinks that talking about the intrinsic value of Bitcoin is very subjective since it depends on each user’s perception. He did not speak of intrinsic value as he considers that type of value to be a wrong term. As an example, he said that “not even the sun has an intrinsic value because whoever is inside a cave will not be able to value it.”

Attorney and Professor Daniel Rybnik believes that Bitcoin is increasingly valuable because of its qualities and the benefits that it offers. It does not recognize political boundaries, favors privacy, makes its owner his or her own bank, is scarce, and is more secure than banks.

Legislators state that there is uncertainty among Salvadorans. They criticized the “express” approval that the law had in the National Assembly.

A draft law reform that seeks to remove bitcoin (BTC) as legal tender in El Salvador appeared this Wednesday, June 16, before the Legislative Assembly. Opposition deputies Anabel Belloso and Dina Argueta argue that the adoption of cryptocurrency would harm the economic system and family finances.

The legislators questioned the “pressure” that the law expresses on the use of bitcoin to pay for products or services. For the congresswomen, the Bitcoin Law was planned without previous consultations or consensual approval in a more expedited way; this law appeared from nowhere without the necessary debates it needs to receive the last approval.

Belloso explained in detail in various statements to the Salvadoran media that there are risks. In the reforms bitcoins appear as an unrecognized legal tender, it is the first article within the object. The law has elements that would be generating uncertainty and risks for money laundering.

The official also explained that she is not against innovation and technological developments, but bitcoin cannot be adopted in an obligatory manner since the rights of the population could be at risk of being violated. Regarding the implementation of digital assets in the Central American country, Belloso clarified that this process must be voluntary.

According to the legislator, among Salvadorans, there is uncertainty about how to work with cryptocurrency or how to handle the funds. Also, she criticized that the government’s tone on this issue is too hasty and that it involves potential salary payments, or other benefits, in BTC and not in US dollars.

 Regarding the payment of public workers, the Minister of Labor, Rolando Castro, indicated that it is still a premature issue.

Bitcoin as an Alternative in El Salvador

The deputies argued that article 7 of the law is the most intriguing one. The provision reads this way: “Every economic agent must adopt bitcoin as a means of payment when it is offered to this entity by whoever acquires a good or service.” The legislators stated that the law, as it is proposed, is an imposition.

 However, article 12 clarifies that there is an exclusion from the obligation expressed in article 7 of this law, those who by notorious fact and do not have access to the technologies that allow them to execute transactions in bitcoin.

The State will promote the necessary training and mechanisms so that the population can have greater access to bitcoin transactions and how the whole world of this cryptocurrency works.

The scope of the reform of the law would have a null or very limited impact since the Legislative Assembly has a pro-government majority, which means that they support the decisions of the President of the Republic, Nayib Bukele. The proposal would not go to debate or would be rejected by the parliamentarians, who approved the law last week.

By: Jenson Nuñez

The billionaire claimed to have been facing losses right after the TITAN token crumbled down from $ 60 to $ 0. A few days after writing a defense to DeFi, he asked for regulation of the sector.

Billionaire investor and owner of the NBA’s Dallas Mavericks team, Mark Cuban, is calling for regulation of the decentralized finance sector (DeFi), after the project in which he invested suddenly collapsed.

The investor received the damage because of the sudden collapse of the TITAN token, of the DeFi Iron Finance project, which plunged 100% on Wednesday night, going from a price close to USD 60 to a value of USD 0. Even when TITAN only gathered up a small percentage of his cryptocurrency portfolio, Cuban stated that he suffered losses.

The price of TITAN fell significantly on Wednesday night due to massive panic selling among investors, in what they usually call a “bank run.” Also, Iron Finance had recently joined the Polygon network – which Cuban supports.

The billionaire investor had mentioned the TITAN token in a blog post on Sunday titled “The Brilliance of Yield Farming, Providing Liquidity, and Valuation of Crypto Projects.” Reports assure that Cuban had invested USD 75,000 to provide liquidity to the protocol.

A Project Promising Attractive Returns

In a conversation with Bloomberg, Cuban spoke about his unhappiness regarding the operation, even though the investment was relatively small for the renowned businessman. He said that In any new industry, there are risks that can be taken in order not only to try to make money but also to learn how things work.

He took a bit of the blame for the losses on his investment and called himself “lazy” for not researching more profoundly before getting involved with the project.

Like other DeFi protocols, Iron Finance is a project that operates through smart contracts on the Blockchain without the need for mediators such as banks or investment managers. However, unlike banks, this sector is not subject to consumer protection laws, which discourage bad actors; there are no such regulations for DeFi.

To incentivize USDC’s role in its liquidity funds, Iron Finance had brought yields of up to 10,000% APY on TITAN tokens, a figure that may have caught Cuban’s attention.

Cuban had felt suspicious at some point with the project, admitting that he had left and entered again “when the TVL [total blocked value] started to rise again”. Iron Finance attracted more than $ 2 billion in liquidity (TVL), but now that figure has dropped below $ 70 million.

Cuban’s request for regulation comes shortly after he declared that the US government and regulators should bring more solid support to crypto innovations, such as the DeFi industry. He argued that otherwise, the country would lose the next great growth engine that this nation requires.

The DeFi space is prone to the proliferation of scams, glitches, exploits, “carpet pulls” and other types of scam moves. All of this is something to be constantly vigilant about. Iron Finance is just the latest project in the industry to collapse.

By: Jenson Nuñez

The company does not outline terms of sale or the specific destination of the funds. The company’s corporate strategy gives high priority to the purchase and accumulation of bitcoin.

MicroStrategy keeps reinforcing its current bitcoin (BTC) purchasing strategy, with a new securities offering that would allow it to sell up to $ 1 billion in company stock over time.

Through a statement, the company headed by Michael Saylor announced the creation of a securities offer that would allow it to sell the amount indicated in class A common shares under the “at the market” modality, a kind of value offer with a modality that allows it to sell at market prices without predetermined values. The shares will meet their trading procedures through Jefferies LLC, an American investment bank founded in the 1960s.

The funds would not necessarily be destined for the purchase of the cryptocurrency but would serve for “general corporate purposes, including the acquisition of bitcoin,”  as the text describes in its content.

Discretion Over the Allocation of net Proceeds from Offerings

MicroStrategy also stated that they have not determined the number of net proceeds that will serve specifically for any of those particular purposes. As a result, management will keep distance and broad discretion over the allocation of net proceeds from any offering.

Despite not indicating sale terms or specifying the amounts allocated to the purchase of bitcoin, the company’s strategy has the accumulation of funds in the cryptocurrency among its highest priorities.

These highlights come right after Saylor, CEO and founder of the business intelligence company, expressed through a report that they would allocate another $ 500 million of debt notes to acquire more BTC.

Currently, MicroStrategy is a publicly-traded company with the largest holding of bitcoins around the globe. With more than 92,000 bitcoins in its coffers, it is surpassed only by a private company (Block. One), an investment fund (Grayscale), and a country (Bulgaria) as the largest owners of BTC units on the planet, according to data from BitcoinTreasuries.

Double or Nothing is the Main Strategy

Since last year, Saylor has been doubling his bet on the accumulation of bitcoin. This sale of shares would be a new way to invest in the main cryptocurrency on the market, after making direct purchases, having issued debt, and offering exposure to BTC to its shareholders with a fund dedicated to bitcoin.

Although in the bitcoin world Saylor’s accumulation strategy achieved approval, there are those users who question his current position and the risk it would imply for the company.

Peter Schiff Stands on his Critics on Bitcoin

The investor, who has kept a solid stance against bitcoin and in favor of gold as a store of value, responded regarding the creation of this share offering. “You are really crazy. If Bitcoin is going to be as successful as you claim, MicroStrategy already has more than enough to make all of its shareholders rich, ”he wrote directly to Saylor.

Actions do not match your words. These are acts of desperation to prevent Bitcoin and its price] from crumbling down by purchasing as much as you can, ”Schiff concluded in its emission.

By:Jenson Nuñez

There will be purses for private users, companies, and institutions. The purses will have a health code.

During the XIII Lujiazui Forum in Shanghai, Mu Changchun, director of the Research Institute of Digital Currencies of the People’s Bank of China, revealed several specifications that the wallets will have to be used with the digital currency of the Asian country’s central bank (CBDC).

One of the specifications that the Chinese official presented shares similarities with anonymity and payment limits with the digital yuan, as the currency is also known, according to Forkast News.

Changchun said that there will be public and private wallets, which might add sub-wallets authorized by the user, although he did not clarify whether they will be provided by the public administration or a private company.

The level of anonymity of the wallets will relate to the payment limit. The wallet with the highest level of anonymity, will only need a mobile phone number to activate, it has a single payment limit of 2,000 yuan (USD 300), a daily accumulated payment limit of 5,000 yuan (USD 780) and a Balance limit of 10,000 yuan ($ 1,560), but Changchun did not give further details of how long the limit can be held.

Users who desire to have a greater amount of digital yuan, must set the wallet under verification with their identification document and link it to a bank account. In this case, there will be a one-time payment limit of 50,000 yuan ($ 7,800), the daily accumulated payment limit of 100,000 yuan ($ 15,600), and a balance limit of 500,000 yuan ($ 78,000).

Last March, the same Chinese official clarified that central bank digital currencies do not have permission to be completely anonymous, with the aim of complying with international regulations against money laundering and terrorist financing.

Sub-purses for Individuals and Companies

During the forum, Changchun also talked  about another of the specifications which says that there will be different wallets for individuals, companies or institutions.

According to another local medium, private individuals might open several sub-wallets, in which payment limits and greater privacy protection could meet a proper establishment.

Regarding sub-purses for companies and institutions, these sub-purses may perform functions such as the collection and distribution of funds, accounting, and financial management.

There are Hot and Cold Wallets

The representative of the Chinese central bank also stated that they will enable two types of portfolios: hot and cold. However, it is still unclear whether these will be sold by the State itself, nor did it explain how their distribution would happen.

The cold wallets will feature integrated circuit cards and wearable devices, Changchun said. It is important to remember that these kinds of wallets are hardware devices that protect the private keys offline (without an internet connection) that grant the safe movement of funds housed in addresses associated with them.

While the hot wallets, they will have access to tools like mobile payment applications. Unlike the cold ones, these wallets are in connection with the internet all the time and allow the immediate availability of funds.

By: Jenson Nuñez

The private keys of the wallet are under the control of members of the community. The use of non-custodial purses is predictable when the adoption is greater.

Bitcoin Beach, a bitcoin (BTC) wallet that shares compatibility with the Lightning network, designed for use by the El Zonte beach community, in El Salvador, received criticism due to its centralization and because it keeps funds under custody. The developers and leaders of the project, clarify that they are progressively intending to create decentralization and non-custody.

This application, which is currently available for iOS and Android phones, is the official wallet of the Bitcoin Beach community. It is project-based in August 2019, and it managed to build an economy based on BTC on El Zonte beach, 50 kilometers from San Salvador.

To use the application as a wallet, It requires a telephone number first, which must be verified by the user utilizing a code that is sent by text message. It is also requested to activate geolocation, as it implements a map of shops that accept bitcoin in El Zonte.

Unlike other wallets, the Bitcoin Beach application does not give the user access to their private key. Therefore, whoever uses it, does not have total control over their BTC but the keys are in the hands of third parties that require trust.

The recent announcement of bitcoin becoming a legal tender in El Salvador, made this wallet appear relevant and many members of the bitcoin ecosystem expressed their opinion on the matter.@BTCAndres, bitcoin maximalist and popularizer on Twitter and YouTube, describes the wallet as “terrible”.

In the early days, the community used the Wallet Of Satoshi wallet, which is also custodial and bears great similarities in use and operation to the current Bitcoin Beach. This new wallet has been used since September 2020 and it is a shared custody wallet, whose private keys find their distributions among the members of the community.

The Creation of a Community Bank

In addition, as Nicolas Galoy, director of the Bitcoin Beach wallet developer, explained, they have created what they call a “bitcoin community bank”. It is a multi-signature protocol that grants the total safety of community funds. Once a week, the funds that merchants perceive directly go to that cold storage that remains under the protection of their proper private keys.

Among the non-custodial wallets that share compatibility with the Bitcoin Lightning network, which are easier to use and work without too many complications for novice users, Muun appears in a special mention. The features of this application for iOS and Android are well known.

The founder and president of the NGO Bitcoin Argentina, Rodolfo Andragnes, made public that he will soon be going to El Salvador and that, on the occasion of that trip, he will promote “with pride” that application developed by his comrades to assure that it works and operates properly.

By: Jenson Nuñez.