Bitcoin

<h2 id="header-0">Estimating Bitcoin&#39;s Future Value</h2><p><strong>CoinShares</strong> explores the challenges of applying traditional financial modeling to Bitcoin and introduces a new mid-term valuation model based on adoption rates and savings allocations. Conventional models like Metcalfe&#39;s Law and the Stock-to-Flow (S2F) model have faced criticism for their limitations in capturing Bitcoin&#39;s unique characteristics. The new model focuses on measuring sticky, non-speculative inflows driven by increasing adoption and savings rates globally over a 5-year period. By incorporating these factors and a flow-to-market-cap multiplier, the model estimates a Bitcoin value floor of around $133,000 by 2028, assuming an annual growth rate of 20% in adoption and moderate savings allocations from individuals across different countries. This approach aims to fill the gap in existing valuation methods by grounding the analysis in measurable fundamentals and providing a plausible estimate of Bitcoin&#39;s future price trajectory.</p><p><img src="https://gaia.hiro.so/hub/1DKpGsyq1CDtZTCes3SWe3Qo9f49Go6odm/photos/WlqjWnqN5frcbRJW9aFxU/gTLFVABOyEbqs8iughYBl-Mid-Term%20Bitcoin%20Approach%20Based%20on%20Adoption%20and%20Savings%20by%20CoinShares_Shared%20by%20The%20VC%20Whisperer.jpg" /></p><h3 id="image-mid-term-bitcoin-approach-based-on-adoption-and-savings-source-a-href-https-blog-coinshares-com-bitcoin-valuation-by-savings-adoption-cd395ac807f6-rel-noopener-noreferrer-nofollow-coinshares-a">Image: Mid-Term Bitcoin Approach Based on Adoption and Savings. Source: <a href="https://blog.coinshares.com/bitcoin-valuation-by-savings-adoption-cd395ac807f6" rel="noopener noreferrer nofollow">CoinShares</a>.</h3><h2 id="header-1">The Impact of Bitcoin Halving</h2><p>We are also diving into the Bitcoin halving! While a cause for celebration in the community, it presents significant concerns for miners, who face a substantial reduction in their primary revenue stream. Miners are proactively upgrading their equipment and reducing debt, hoping for a surge in Bitcoin&#39;s market price to mitigate this. However, there&#39;s a potential silver lining: transaction fees, historically a minor revenue source, are expected to rise significantly due to evolving uses of Bitcoin&#39;s block space. Non-monetary applications, such as on-chain marketplaces and collectibles, are driving a surge in transaction demand, potentially offsetting the revenue loss from the halving.</p><p>Projects like Runes tokens and Ordinals protocol are pioneering new standards, leading to a notable increase in transaction volume and fees. Additionally, the emergence of concepts like Miner Extractable Value (MEV) suggests further opportunities for miners to diversify revenue streams. Despite the unconventional nature of these developments, they could play a crucial role in sustaining miner profitability post-halving. While the sustainability of these trends remains uncertain, they underscore the growing complexity and importance of transaction fees in Bitcoin&#39;s economic model, potentially making them the future primary revenue source for miners.</p><p><img src="https://gaia.hiro.so/hub/1DKpGsyq1CDtZTCes3SWe3Qo9f49Go6odm/photos/WlqjWnqN5frcbRJW9aFxU/R0Jh-kj-x_Us-EnpwQeWS-Bitcoin%20daily%20total%20transactions%20fees%20vs%20average%20transaction%20fees%20by%20CoinShares_Shared%20by%20The%20VC%20Whisperer.jpg" /></p><h3 id="image-bitcoin-daily-total-transaction-fees-vs-average-transaction-fees-source-a-href-https-blog-coinshares-com-the-looming-surge-in-bitcoin-block-space-demand-and-its-impact-on-mining-revenue-ef2c12426a6d-rel-noopener-noreferrer-nofollow-coinshares-a">Image: Bitcoin Daily Total Transaction Fees vs Average Transaction Fees. Source: <a href="https://blog.coinshares.com/the-looming-surge-in-bitcoin-block-space-demand-and-its-impact-on-mining-revenue-ef2c12426a6d" rel="noopener noreferrer nofollow">CoinShares</a>.</h3><h2 id="header-2">SEC Targets DeFi</h2><p><strong>Hard Yaka</strong> covers regulatory actions and legal battles in the cryptocurrency space this week. The Securities and Exchange Commission (SEC) has set its sights on decentralized finance (DeFi), exemplified by Uniswap receiving a Wells notice for potentially acting as an unregistered securities broker and exchange. Uniswap&#39;s response underscores a broader frustration within the industry regarding the SEC&#39;s approach to classifying tokens and enforcing regulations. Ripple and Coinbase also feature prominently, with Ripple potentially facing a $2 billion fine and Coinbase seeking an interlocutory appeal over a critical legal question. Additionally, the SEC faces criticism for handling the DEBT Box case, where Chief Judge Robert Shelby accused the agency of misleading the court and ordered it to pay defendants&#39; fees as sanctions. Additionally, the UK regulators draft guidance on digital securities sandbox alongside these legal battles.</p><p>Read the full article by Hard Yaka <a href="https://hardyaka.substack.com/p/291the-sec-goes-after-defi" rel="noopener noreferrer nofollow">here</a>.</p><h2 id="header-3">MiCA Regulation Unpacked: The Future of Crypto in the EU</h2><p><strong>RR2 Capital</strong> claims that the European Union&#39;s stance on crypto regulation aims for comprehensive oversight rather than outright bans or restrictions. The Markets in Crypto-Assets (MiCA) regulation, slated for implementation between mid-2024 and early 2025, seeks to categorize crypto assets while ensuring regulatory certainty, environmental sustainability, and innovation. Under MiCA, Crypto Asset Service Providers (CASPs) face stringent anti-money laundering regulations, including identity verification for transactions exceeding €1,000 and a ban on anonymous accounts, with penalties for noncompliance up to 12.5% of annual turnover. These regulations aim to balance innovation with security, promoting transparency and safety in crypto transactions. The EU&#39;s regulatory approach sets a global precedent, influencing other regions&#39; legislation, albeit prompting some startups to relocate for more favorable conditions.</p><p><img src="https://gaia.hiro.so/hub/1DKpGsyq1CDtZTCes3SWe3Qo9f49Go6odm/photos/WlqjWnqN5frcbRJW9aFxU/zdrE20clN1gS57pRnRu0t-How%20do%20Europeans%20invest" /></p><h3 id="image-how-do-europeans-invest-cryptocurrency-vs-tradfi-investments-source-a-href-https-rr2-capital-decoding-the-future-will-the-european-union-ban-crypto-regulations-unpacked-rel-noopener-noreferrer-nofollow-rr2-capital-a">Image: How do Europeans Invest? Cryptocurrency vs TradFi investments. Source: <a href="https://rr2.capital/decoding-the-future-will-the-european-union-ban-crypto-regulations-unpacked/" rel="noopener noreferrer nofollow">RR2 Capital</a>.</h3><h2 id="header-4">Building an Inclusive Economic Future</h2><p><strong>Blockchain Capital</strong> explores the economic principles governing digital assets, emphasizing the importance of trust, fairness, and reliability in economic systems. Drawing on historical examples such as railroad monopolies and legislative responses like the Sherman Antitrust Act, the VC illustrates the impact of monopolistic practices on economic activity and innovation. The emergence of blockchain-powered decentralized systems offers a potential solution to democratizing today&#39;s digital economy, with tokens playing a central role in this revolution.</p><p>Tokens are programmable assets that enable access to digital services and resources, transforming static units of value into dynamic tools for instilling trust and fairness. Evaluating tokens based on factors like tokenomics and network utility is crucial to making informed investment decisions. Focusing on utility, rights, and governance in digital asset investment shapes a more inclusive and equitable economic future.</p><p>Read the full article by Blockchain Capital <a href="https://www.blockchaincapital.com/blog/beyond-price-understanding-the-economic-principles-governing-digital-assets" rel="noopener noreferrer nofollow">here</a>.</p><h2 id="header-5">About The VC Whisperer</h2><p>The VC Whisperer is an essential news medium and research platform for anyone looking to stay up-to-date on the latest crypto-affiliated developments in the Blockchain and TradFi VC worlds. The unique features and user-friendly UI make The VC Whisperer a crucial tool for investors, projects, and Venture Capital striving to stay ahead of the curve in an increasingly complex and rapidly evolving market. 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The VC Whisperer | Weekly Newsletter, April 4.0 Edition (2024)

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The VC Whisperer

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