Metaverse to Have its Maximum Boom in Mexico in 2030, According to Report

Audy Castañeda
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Metaverse to Have its Maximum Boom in Mexico in 2030, According to Report

The report states that, between 2022 and 2026, the use of the metaverse will grow from 30 to 50%.

The latest report by Publicis Business Intelligence states that the metaverse in Mexico will have its “maximum boom” by 2030, mainly due to the commercial relations that the country maintains with the United States and Canada. This would encourage implementation by companies and eventually adoption.

Publicis Group exposes the following about the metaverse in Mexico:

“Despite being considered a space for speculation, Mexicans remain positive about the price fluctuations of cryptocurrencies and the use of the metaverse. Brand activations must consider that Mexico faces challenges in access to technology and concerns about the privacy of user data. The best-known brands are expected to continue to be the ones doing activations in the metaverse.”

Reports Details

Publicis Business Intelligence shows that Mexico will join the trend of the metaverse as a commercial strategy with its northern neighbors, an aspect that will be used by Mexican brands, which will encourage users to adopt the metaverse, although it highlighted that searches for “metaverse” on the Internet in the country had a peak between 2021 and 2022.

The metaverse has achieved an accelerated adoption in Mexico, as shown in the latest Hellosafe report, which stated that, so far this year, there are more than 13,000 metaverse holders in Mexico, who have bought shares or invested in companies that are creating solutions in that technology. In addition, the country is one of those that is most identified with the metaverse, as compared to others in the region.

Mexicans See Everyday Usefulness with the Metaverse

Hellosafe predicts that the metaverse will contribute 5% of the Gross Domestic Product (GDP) of Latin America by 2031, thanks to its contributions to industries such as tourism or Real Estate. Globally, meanwhile, Blockchain-based technology will contribute 8.2%, equivalent to 320 billion dollars.

Among other metrics, Publicis Business Intelligence states that the metaverse has 5.7 thousand current mentions on the Internet. Between 2022 and 2026, the use of technology will grow from 30 to 50%, and the sale of virtual reality headsets is expected to grow by 40% annually.

Meanwhile, Mexicans expect the metaverse to “revolutionize” social interactions and financial markets, in addition to improving the trading of digital assets, digital entertainment, and work environments, optimizing digitized health resources, as well as revolutionizing virtual learning.

Recently, the government of Mexico City announced that, through the local Ministry of Culture, the “Day of the Dead” will be celebrated in the metaverse of Spatial and Decentraland, so its projection will be available worldwide, starting October 29.

“This great event can be seen through a QR Code, on Capital 21, social networks, and also, for the first time and free of charge, the parade will be brought to virtual reality in the metaverse of the Spatial and Decentraland platforms, through through Ezel.Life where an international avatar party will take place in which the participants will be able to design their own catrin or catrina (dressed up male or female figures.)”

It should be noted that The “Day of the Dead” takes place normally every November 1 and 2 in Mexico. On this occasion, the Ezel.Life platform will be in charge of recreating the iconic stages and parade in the metaverse of both platforms. Meanwhile, the local government will hold a parade for those dates, when up to a million attendees are expected.

By Audy Castaneda

According to Bill Miller, Bitcoin Has Potential as a Global Reserve Asset during Difficult Market Times

Alexander Salazar
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According to Bill Miller, Bitcoin Has Potential as a Global Reserve Asset during Difficult Market Times

Miller recently referred to Bitcoin as an insurance policy against financial disasters, as it is unrelated to the rest of the financial system. He has stressed its potential as a global reserve asset, especially during the Russia-Ukraine conflict, a feature altcoins do not share.

Well-known value investor Bill Miller is still bullish about Amazon and Bitcoin (BTC) despite the 2022 market decline.

The former manager of the Legg Mason Capital Management Value Trust fund views Bitcoin as an insurance policy against financial disasters.

Bill Miller Recommends Being Patient during the Pessimistic Market

Miller shared his opinions on the market with Marvin McIntyre, the CEO of the Private Wealth Management division at Morgan Stanley.

The investor agreed that the government squeezed those companies performing well over the last decade amid the aggressions of the US Federal Reserve. He also said this provides an excellent opportunity to purchase the company’s shares at a low price.

According to Miller, those whose time horizon is longer than one year should do very well in the market.

While managing Legg Mason, Miller beat the stock market for fifteen consecutive years between 1991 and 2005. The community knows that he acquired shares of Amazon during its 1997 initial public offering.

In 2021, Miller revealed that about 50% of his net worth was in shares of Amazon while the other 50% was in Bitcoin.

Bitcoin Outperforms Other Financial Assets despite Difficult Market Times

The former manager of Legg Mason recently referred to Bitcoin as an insurance policy against financial disasters. He highlighted its limited consequences during difficult market times, as it does not relate to the rest of the financial system.

Bitcoin has dropped by 70% after its all-time high in November but has done better than most other financial assets. According to the Consumer Price Index (CPI), it briefly fell to USD 18,000 this week but has returned to USD 19,000. Miller said the pioneering cryptocurrency might continue to outperform regardless of further tight measures of the Federal Reserve continues to tighten.

The renowned investor supported his argument by quoting Warren Buffett, John Templeton, and Leo Tolstoy. He recommended being greedy amid fear sentiment, buying at times of high pessimism, and being patient.

Miller Believes that Bitcoin Is an Excellent Hedge against Inflation

Despite the decline of the overall crypto market due to the collapse of Terra (LUNA), Miller remained confident in Bitcoin. He admitted he had to sell some of his Bitcoin holdings to meet margin calls.

Miller has stressed the potential of Bitcoin as a global reserve asset, especially after seeing the consequences of the sanctions against Russia. However, he warned that altcoins did not have that feature and were venture investments instead.

Bitcoin is trading at around USD 19,109 and has accumulated a 2.5% loss over the last 24 hours. While its daily trading volume is above USD 26.73 billion, its market capitalization is about USD 366.73 billion, according to CoinGecko.

By Alexander Salazar

Over Half of the Ethereum Blocks Comply with the OFAC’s Standards

Alexander Salazar
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Over Half of the Ethereum Blocks Comply with the OFAC’s Standards

The US Treasury OFAC administers and enforces financial sanctions implemented by the US, an example of which is the controversial ban on Tornado Cash. Following the Merge upgrade, Ethereum has relied on MEV-boost relays for producing blocks, going from 43% in October to 90% in September.

New data reveals that over 50% of the blocks on the Ethereum network meet the US Treasury OFAC’s standards. That happened about one month after the second-largest cryptocurrency platform completed its Merge upgrade.

Tornado Cash Is in a Phase of Gradual Elimination

The US Treasury OFAC administers and enforces all the financial sanctions implemented by the US government. An example is a recent ban on the crypto mixer Tornado Cash, which many consider excessive.

According to data from Labrys, 51% of Ethereum blocks comply with the US Treasury OFAC’s standards. They limit some operations on the network, refusing to process transactions related to Tornado Cash.

The blockchain solutions firm found the above blocks resulted from MEV-boost relays. These are subject to OFAC regulation, which explains the censorship on the network.

Following the Merge upgrade, Ethereum has experienced growing reliance on MEV-boost relays for producing blocks. Only 43% of the blocks on the network were not from MEV upgrades in October, compared to 90% in September. Relays currently create 57% of the blocks on Ethereum.

The Relays of Flashbot Censor Tornado Cash Transactions

Relays allow Ethereum PoS validators to award their block production tasks to the highest bidder. The MEV-boost relays mainly aim to reduce the risks of peak consumption. By reordering transactions into blocks, the maximum extractable value (MEV) describes the revenue opportunities of block builders and validators.

In addition, MEV-Boost relays are centralized entities serving as trusted intermediaries between block makers and block builders. According to Labrys, that enables the market to accommodate more manufacturers, encouraging competition and increasing the profits of validators. Besides, they pointed out that the MEV-Boost Relays might bring about better censorship resistance for Ethereum.

However, over 51% of Ethereum blocks comply with the OFAC’s sanctions. The research firm Flashbots operates the largest and most popular Ethereum relays. Since these account for nearly 80% of all blocks produced by Ethereum, Flashbots relay all censored Tornado Cash transactions.

The report from Labrys showed that the network mainly has seven MEV-boost relays. They include Flashbot, BloXroute Max Profit, BloXroute Ethical, BloXroute Regulated, BlockNative, Manifold, and Eden. However, only three of those relays produce blocks that are resistant to lockouts.

The Crypto Community Responds to that Situation

The crypto community has expressed its dissatisfaction with the situation. For example, Martin Köppelmann, the co-creator of Gnosis, described the recent milestone as regrettably undesirable.

The entrepreneur approached the Flashbots teams after contacting them to ask for a solution to the censorship issue. They told him they would take measures if the problematic situation with the relays worsened.

In addition, Uri Klarman, the CEO of bloxRoute labs, advised validators to connect to uncensored relays. He argued that this would allow reducing the disadvantages caused by censorship.

By Alexander Salazar

Director of the Colombian Customs Office at Devcon VI: “A Digital Currency Could Be More Convenient than Cash”

Audy Castañeda
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Director of the Colombian Customs Office at Devcon VI: “A Digital Currency Could Be More Convenient than Cash”

Luis Carlos Reyes admitted that he has had cryptocurrencies, and he considers that they have come to the market to stay.

On the last day of Devcon VI, taking place in the Colombian capital, the director of the Colombian customs office DIAN, made known his point of view on cryptocurrencies, their regulation, and the possibility of creating a CBDC.

Luis Carlos Reyes Hernández, director of the Colombian customs office, participated in the closing day of Devcon VI. Reyes assured that the new Colombian government is open to exploring the necessary proposals to regulate the operation of cryptocurrencies in the country.

“Some of you may have wondered, especially if you have just used a crypto platform, if you have to pay taxes on the profits you make on your investments. I do not know if the representatives of the exchanges in the country are here, we would like them to know exactly what rules they must follow, although cryptocurrencies are not legal tender in Colombia, they are considered for tax purposes.”

Reyes’ Viewpoint on Cryptocurrencies

Reyes explained in his speech that cryptos are considered intangible assets that basically follow the treatment that other jurisdictions give to cryptocurrencies and, in general, to digital assets.

“If you are in Colombia, you know that you must fill out a tax return as a natural person, declare your net worth, which is a very particular thing in the Colombian tax system (…) We are here to help, I have instructed the sub-directorate, in charge of interpreting the tax rules for specific cases and specific industries, to compile all the concepts we have, we have talked about crypto in a single document, and we are also here to collect any doubts you may have.”

The director of the DIAN assured that the entity wants to issue an official concept on the subject of cryptocurrencies, and that they want to do it both in Spanish and in English, so that there are clear rules, not only for Colombians, but also for those who come from abroad to invest.

A CBDC for Colombia?

During the cycle of questions, it was inevitable to leave behind the subject of a CBDC for Colombia. According to Reyes, a central digital currency is more convenient than cash.

“I am going to be honest, from the point of view of the Tax Administration that interests us in the traceability of transactions, especially in the Colombian economy, [the panorama] is so informal and so many people use cash, that [it would be ideal] if we could offer a digital currency that is more convenient, and even more secure than cash”

The director of the DIAN referred to the cases in which Colombians who are part of the informal economy suffer from money theft. For Reyes, a CBDC would offer them the possibility of recovering it, since it is highly traceable.

Facing a question from the attendees, Luis Carlos Reyes admitted that he has had cryptocurrencies, and considers that they have come to the market to stay.

Reyes concluded by assuring the following:

“I think one of the developments that I’m most excited about is central bank-issued digital currencies. I was very excited when the central bank announced that they are studying the issue, I think only good things come from this industry.”

By Audy Castaneda

Patrick McHenry Believes the New Stablecoin Legislation Needs Further Adjustments

Alexander Salazar
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Patrick McHenry Believes the New Stablecoin Legislation Needs Further Adjustments

McHenry said he would prioritize cryptocurrency regulation if he became the House Financial Services Committee chairman. Maxine Waters also mentioned stablecoins and the topic of digital wallets, stressing the need to simplify the use of technology.

According to Patrick McHenry, the conversation on FinTech needs to address the solution to real-world problems again. The senior member of the US House Financial Services Committee is in talks about legislation that might bring further clarity to stablecoins.

McHenry said there was no US federal definition of digital assets or stablecoins, which he describes as retrograde. McHenry, the House Financial Services Committee chairwoman Maxine Waters and the Treasury Department have negotiated legislation to regulate stablecoins. He expressed optimism about the bipartisan nature of the new law and the compromises between him and Waters.

The representative defined having stablecoins, regulating wallets, and determining a federal regulator as open questions. He believes those decisions are less science and more art, as the resulting draft still needs to be more attractive.

McHenry said he would prioritize cryptocurrency regulation if he became the next chairman of the House Financial Services Committee. He has supported bipartisanship in cryptocurrency legislation for a long time.

Waters also mentioned stablecoins and the topic of digital wallets, stressing the need to make the technology easy to use. She made that remark since she considers the traditional system often excludes people.

The Financial Stability Oversight Board of the Treasury Department advised legislators to assign regulatory responsibility for cryptocurrencies to regulators. Many bills, like the Digital Commodities Consumer Protection Act of 2022 and the Lummis-Gillibrand Responsible Financial Innovation Act, seek to regulate cryptocurrencies.

Meanwhile, Kazakhstan Introduces a Bill to Regulate Cryptocurrency Miners Further

Although Kazakhstan is among the world leaders in cryptocurrency mining, it has problems with gray miners that operate without the necessary licenses. The lower parliament house has passed five new bills that might solve those issues.

Ekaterina Smyshlyaeva, a Committee for Economic Reform and Regional Development member, considers the legislation would change the situation positively. It would force cryptocurrency miners to seek authorization from relevant financial regulators, create legal entities, and pay taxes.

She added that the Ministry of Digital Development, Innovation, and Aerospace Industry would also regulate the activities of miners and mining pools.

If the new legal framework becomes official, it will impose global taxes on importing cryptocurrency mining equipment. In addition, it will require miners to trade up to 75% of their capital on local cryptocurrency exchanges since 2024.

Smyshlyaeva said they made cryptocurrency transactions transparent by transferring them to Kazakh exchanges. According to the project, those platforms subject to financial monitoring will integrate with the information systems of the State Revenue Commission.

The official stated that introducing a registry of mining equipment would exclude the operation of illegal data centers. Therefore, granting licenses should solve the problem with gray miners and guarantee the security and balance of the energy system.

Some estimates indicate that over one million residents in Kazakhstan have used crypto assets for international trade. The government agency plans to bring all those cryptocurrency users to the local cryptocurrency exchanges.

By Alexander Salazar

As the Market Stabilizes, Is Now a Good Time to Invest in an NFT?

Audy Castañeda
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As the Market Stabilizes, Is Now a Good Time to Invest in an NFT?

Similar to what happened with NFTs in 2021, the ICO bubble accelerated with higher highs in markets.

If you were one of the few people who realized we were in the midst of a non-fungible token (NFT) bubble last year, then congratulate yourself.

You managed to do what most people could not do: a great analysis of the long-term macro trend of the crypto market and summarize 1 + 1. This is because it is not the first time that we have navigated uncharted waters and ended up disappointed. Remember the ICO (Initial Coin Offering) bubble in 2017/18?

What’s Different This Time?

Well, it’s not the first time we’ve had a boom and bust cycle in the cryptocurrency market. Looking back at the ICO bubble in 2017/18, everyone hailed this new fundraising instrument as superior to boring Initial Public Offerings (IPOs), conducted in fiat currencies. Now, five years later, we know that this hype has cost dearly.

Similar to what happened with NFTs in 2021, the ICO bubble was accelerated by higher highs in the markets and seemingly endless showers of new investor capital inflowing, pushing the price higher.

A never-seen-before macro trend pushed the price of Bitcoin to $18,000, and $1,100 for Ethereum. An expansionary monetary policy, with an interest rate of almost 0% in the two main world economies, the United States and Europe, opened the way for risky investments, including crypto and, in particular, NFT.

In December 2018, prices began to slowly decline, aside from the fact that there was no particular external factor that we could blame for the drop. No central bank was raising interest rates, no Putin declaring war on Ukraine, and no COVID-19 responsible for excessive money printing.

What Has Changed?

After DeFi peaked in the summer of 2020, NFTs were the next big thing, starting with the sale of Beeple’s Everydays. The NFT auctioned by Christie’s sold for a record price of $69 million, sparking a worldwide frenzy.

In the following months, weekly dollar NFT sales volume fell significantly from a peak of $6 billion to approximately $100 million.

It was a market downturn that resulted in declining prices for NFT collections and lower sales volume.

The crypto market capitalization peaked in November 2021, only to see higher NFT sales volume from January to April 2022, respectively.

After crypto lender Celsius filed for Chapter 9 insolvency, the entire space seemed to be reeling and trying to find a solution to what is about to happen. With prices falling, highly collateralized companies found themselves liquidated sooner rather than later. 3AC, Nuri, and Voyager are a few companies to name.

Fundamentals are Critical, as with All Investing

As with all crypto investments, the fundamentals of NFTs give us an idea of ​​the upside potential. According to a study by DappRadar, unique wallets in Q3 2022 grew 36% compared to Q3 2021.

In addition, the technology is developing rapidly. With three different NFT standards: ERC-721, ERC-1155, and ERC-4907, the technology offers us a wide range of uses.

On the one hand, companies are working on innovative solutions to real-world problems, as well as trying to educate and recruit new users. On the other hand, artists are given the tools to interact with their community, as well as finally get what belongs to them, which mostly results in higher gross profits from sales. This is just the beginning

By Audy Castaneda

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