Crypto News – June 2021

A month in cryptoland is like 5 years in legacy investing…

Bitcoin and Crypto News – June Summary:

  • 6/2 – Google reverses prior decision and now allows crypto exchanges to run ads on its platform.
  • 6/8 – Mexican senator says he plans to submit a proposal to legislators aimed at encouraging crypto adoption.
  • 6/9 – China-based Bitcoin miners ordered to cease operations.
  • 6/14 – Microstrategy completes $500M secured notes to buy more Bitcoin. Hints at more future purchases.
  • 6/16 – Panamanian congressman to present a bill that would encourage adoption of crypto as legal currency and offer tax incentives for Bitcoin and crypto businesses.
  • 6/23 – First Latin American Bitcoin ETF launches.
  • 6/23 – BTC mining hashrate falls by almost 50% after Chinese government crackdown (see 6/9).
  • 6/24 – Andreessen Horowitz announces a $2.2B fund that will invest in crypto startups.
  • 6/24 – El Salvador president announces Bitcoin to be legal tender on September 7th, and the government will give $30 to everyone who downloads the government wallet (~$117M).
  • 6/25 – Mexico’s third wealthiest citizen says he believes all fiat currencies are fraudulent and why he would rather just HODL Bitcoin (BTC).

Google Allows Crypto Exchanges to Run Ads

For 3 LONG years Google refused any and all cryptocurrency exchanges to run ads on their platform. This was due to the number of exchanges, scam risk, and the unregulated nature of the industry. The cryptocurrency industry, in general, has come a long way and has shed much of the ‘scam’ reputation that has plagued its history. Cryptocurrency has gone mainstream in 2021 and Google doesn’t want to be left behind.

This is a significant reversal for Google, and signals an improving reputation for the industry.

Mexico to Discuss Legislation Encouraging Crypto Adoption

Mexican senator Eduardo Murat Hinojosa announces he will submit legislation to encourage the adoption of cryptocurrency and Bitcoin for their country. He also changed his Twitter profile picture to include ‘laser eyes’ – a popular trend among Bitcoin proponents.

This is another South / Central American country that has followed El Savador’s footsteps. It will be very interesting to track how far this spreads, and how interconnected nearby countries’ trade becomes after integrating cryptocurrencies.

China Outlaws Bitcoin Mining in Xinjiang and Qinghai

This event could easily be its own blog post. The Communist Part of China (CPC) has outlawed Bitcoin mining in Xinjiang and Qinghai in an effort to balance their energy grid. China has suffered from blackouts, uneven energy manufacturing and distribution, and fossil fuel pollution. Chinese citizens are still allowed to own cryptocurrencies, but are no longer allowed to mine them.

In the short term Bitcoin hash rate fell. A LOT.

Source: <a href=

The good news is that Bitcoin’s difficulty adjustment protects the network from this type of event. The only things that changed were:

  1. The Bitcoin network became a little less secure (still the most secure network in the world!).
  2. Mining Bitcoin became much more profitable for all non-Chinese miners.
  3. The old, often-repeated, and incorrect criticism that ‘Bitcoin is owned by China’ instantly became debunked. China is no longer a player in mining Bitcoin and the chance of a coordinated 51% attack is now impossible. It was likely impossible before, but now any amount of doubt has been removed.

This event created short-term price to go down significantly as it scared many new entrants into the space, but actually helped Bitcoin in the long term. Wait, what?!

Is the Chinese Mining Ban Good for Bitcoin?

In a word: yes. All ‘China owns Bitcoin’ FUD (that was already incorrect) is now gone. Mining has become more decentralized across the world with many of the miners moving to Kazakhstan and the United States. Chinese miners were frequently powered by coal and will now move to areas that either use cleaner energy OR have stranded energy that can be used by Bitcoin – which is also very Green.

Ultimately, this will hurt in the short term, but is a great moment for everyone in Bitcoin – except the Chinese Bitcoin mining operators. This will likely be a trillion dollar mistake by the Communist Party of China in the coming years.

Microstrategy Buys More Bitcoin

It sure seems like we write about this every month. Because we do. Because Michael ‘Giga-Chad’ Saylor is a savage who wants to own all the bitcoin. Microstrategy raised another round of senior debt to finance the purchasing of more bitcoin – which means they now hold over 100,000 bitcoin in their treasury.

Panamanian Legislator Announces Crypto Bill

In the below tweet, Panama legislator Gabriel Silva says that Panama can not afford to sit on the sidelines of a crypto revolution and must encourage adoption to not fall behind. A bill is expected in July.

First Latin American ETF Launches

The Brazil stock exchange lists Latin America’s first Bitcoin ETF – conceived by QR Capital. The goal is to simplify adoption for institutions and those who do not want self custody bitcoin, but do want exposure to the price.

Andreessen Horowitz announces $2.2B Crypto Startup Fund

Andreessen Horowitz, one of the largest and most successful Venture Capital Funds, announced a $2.2B (yes, a ‘B’) fund that will invest exclusively in cryptocurrency startups. They haven’t given much information out about this fund other than saying, “We invest in all stages, from early seed-stage projects to fully developed later-stage networks.”

They did announce many new hires that will be leading this fund and it is impressive. Check out their official announcement to see who will be involved.

El Salvador makes Bitcoin Legal Tender – Announces Airdrop of $30

El Salvador makes bitcoin legal tender – with no tax implications – and announces they will give every single citizen that downloads their national hardware wallet (which is open source) $30 worth of bitcoin. This is meant to encourage citizens to try using bitcoin and incentivize adoption. The total dollar amount of bitcoin being given to citizens could be up to $150M.

El Salvador is leading the charge, and if successful, expect many other countries, states, and provinces to follow suit.

Ricardo Salinas Pliego Loves Bitcoin

Ricardo Salinas Pliego, the 3rd richest citizen of Mexico, endorsed Bitcoin and announces that his bank is moving toward accepting it. Software is cheaper than hardware. Bitcoin is cheaper than any bank. It just makes sense, and this billionaire and banking veteran wants to bring Mexico, and his customers, into the age of cryptocurrency.

June Bitcoin and Cryptocurrency News Summary

Crypto sentiment has shifted in weird ways in June. The price is WAY down compared to our yearly high, and there is a lot of fear in the market – primarily due to Chinese miner migration, but also from Tesla and ESG FUD. The irony is that China banning Bitcoin mining actually SOLVES the Tesla and ESG criticisms as these miners will no longer be powered by coal, but instead by renewables or stranded energy in Kazakhstan and the United States.

The takeaway is that this will be looked at as a blip on the radar in a few months. It created short term uncertainty, but long term strength. Don’t let these short term movements scare you into selling your bitcoin to Michael Saylor. 🙂

If you need reasons for optimism – look to South and Central America. Nation-states are coming on board. ETFs are launching. Billionaires are buying and evangelizing. These are long term bullish events and will be the foundation of the next bull run. Adoption in El Salvador, Mexico, Paraguay, and Brazil will catalyze other, possibly larger, countries to follow suit and before you know it * BOOM * hyperbitcoinization isn’t such a crazy thing to consider.

We’re here to help. The 5 links below are where we encourage you to start. Onward!

What is Bitcoin? Part 1 – Origins

What is Bitcoin? Part 2 – Technology

What is Bitcoin? Part 3 – Principles of Money

The Bitcoin Revolution

Best Overall Exchange