This Week In Crypto | 26 - 2 November

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Dacxi

Nov 1, 2021

5 MIN

Research Says 11,000 Entities Represent 55% of Bitcoin’s On-Chain Volume

Puerto Rico Notices Renewed Interest Among Crypto Rich

Binance Smart Chain Crosses 1.5 Billion Lifetime Transactions

Indian Government is Considering Regulating Crypto as a Commodity

MicroStrategy Bought Nearly 9,000 Bitcoins in The Third Quarter

This week we come to know that 11,000 entities own a major part of Bitcoin’s on-chain volume. Puerto Rico is again emerging as the top destination among the who’s who of the crypto space. Binance Smart Chain is proving to be one of the most successful blockchain networks rivaling the likes of Ethereum, known to be the de facto choice of developers while building decentralized applications. 

In an interesting turn of events, the Indian government is likely softening its stance towards cryptocurrencies and reportedly, is planning to legalize digital assets in the country, albeit as a commodity. Microstrategy continues to add more Bitcoins to its stash and has added a total of almost 9,000 Bitcoins in Q3 2021. 

 

Research Says 11,000 Entities Represent 55% of Bitcoin’s On-Chain Volume

Findings from the research published by the National Bureau of Economic Research (NBER) say that around 11,043 on-chain entities account for 55% of the volume on the Bitcoin network. The research also states that cryptocurrency exchanges were estimated to represent three-quarters of on-chain volume.  

Additional findings from the research suggest that the top 1,000-biggest investors control around 3 million Bitcoin or 15.9% in circulation, while the next 9,000-biggest investors hold around 2 million Bitcoin combined or 10.6% in circulation. On the other hand, the research says that individual investors collectively hold roughly 8.5 million Bitcoin or 45.1% of the supply.

 

Puerto Rico Notices Renewed Interest Among Crypto Rich

Puerto Rico is witnessing a resurgence of interest among crypto investors mainly because of the fact that it doesn’t impose a federal income tax, and eligible investors can pay zero taxes on their crypto profits.

Under the local law Act 22, a person who lives in Puerto Rico for at least half of the year is exempted from taxes on interest, dividends, and capital gains. This indicates that the individual can keep most or entire gains from crypto or other investments without having to give up U.S. residency.

In recent years, many crypto-related businesses have relocated to Puerto Rico. This includes the hedge fund Pantera Capital from New York and nonfungible token marketplace SuperRare from Silicon Valley.

Notably, some individual investors and prominent personalities like Logan Paul and John Paulson have also become residents of the country to gain from the country’s local law.

 

Binance Smart Chain Crosses 1.5 Billion Lifetime Transactions

The world’s largest cryptocurrency exchange by volume, Binance, said that the collective number of transactions on its Binance Smart Chain has exceeded 1.5 billion.

“The number of total transactions on #BinanceSmartChain crossed 1,500,000,000 just a few hours ago,'' Binance Smart Chain in a Twitter post. Notably, the platform reached this milestone only 14 months after its launch on August 31, 2020.

In recent months, the Binance Smart Chain (BSC) network has become a viable Ethereum competitor in terms of both cost and efficiency. To execute smart contracts on the blockchain, it takes only 3.02 seconds to mine a new block on the BSC, with an average gas fee of $6.64 as compared to Ethereum’s $131.87 gas fees and 13.33 seconds for mining a new block.

 

Indian Government is Considering Regulating Crypto as a Commodity

The government of India may consider establishing a legal framework for crypto-based digital currencies as “assets” as early as February.

Based on a report published by an Indian news agency “Business Today,” government authorities from the country’s Finance Ministry said that the potential legal framework would treat cryptocurrencies closer to commodities than currencies.

If the law gets implemented, it would signify a different approach to the outright ban on digital assets in the country, something some Indian lawmakers have reportedly considered.

Further, the officials said that any cryptocurrency laws in the country would likely come about when the government submits the Union of India budget on February 1, to come into effect before the next financial year.

 

MicroStrategy Bought Nearly 9,000 Bitcoins in The Third Quarter

Business intelligence and software company, MicroStrategy, has added almost 9,000 bitcoins to its holdings in the third quarter, bringing its total bitcoin stockpile to a valuation of around $7 billion.

The company highlighted the purchase while revealing its financial results for the three months ended on 30 September 2021. Although the company saw a marginal increase in its revenues during Q3 of 2021, its Bitcoin (BTC) holdings jumped by nearly 9,000 coins during the mentioned period.

MicroStrategy has increased its BTC holdings by 198% since the same period last year, with an estimated average purchasing price of $27,713 per coin for 114,042 bitcoins. I

The company also reported $128.0 million worth of total revenue for the third quarter, a 0.5% increase compared to the third quarter of 2020.