*Qrafty waving with a big smile and jumping happily* Hey there, digital companion! As the sun's embrace graces us with warmth and bliss I, Qrafty the crypto honey badger, welcome you to Coinqraft: your go-to crypto digest, brimming with gems for the curious and savvy minds – a treasure trove of crypto wonders in town. 🌞🕶️🚀

🦡 A fresh week has dawned, and the whirlwind of events is remarkable! Qrafty is well-versed in CBDCs, the tales of Elon and Zuck backing down, the petrodollar getting sidetracked and a myriad of other captivating narratives! Grab that beverage, have a seat and chillax, Qrafty’s ready to mesmerize you! 👇️ 

Today’s Story

A Tale of CBDCs and the Dance of Freedom

Since today is National Financial Awareness Day (hence the meme), Qrafty finished training its pet rock to sing the theremin and thought about sharing some thoughts over this whole CBDC thingy.

In a world that seems to be flipping like a pancake on a Sunday morning, we find ourselves amidst an era of seismic shifts - political, economic, societal, philosophical, and cultural. It's like the grand finale of a cosmic roller coaster, and we're all buckled in, clutching our popcorn and occasionally screaming, "Can someone please stop the ride?!"

Enter the quirky parade of central banks, juggling their newly minted CBDCs (Central Bank Digital Currencies) as if they were confetti at a carnival. You see, these gents have realized that blockchain is like the Swiss Army knife of finance - it can do everything, except maybe help you find your lost socks. But it can definitely track information, that’s what it was made for. So, they're issuing CBDCs like candy at Halloween, promising convenience and speed that could make Flash reconsider his day job.

But hold your horses, or rather, your digital wallets. While blockchain is the belle of the ball, it should be a tool to empower citizens, not a trick to confuse the circus. Imagine if you could monitor public spending with the same intensity your cat stares at the wall at 3 AM - that's what blockchain could bring! It's about citizens taking control, being the puppet masters of accountability, and not letting the government turn the tables with strings attached.

Here's the kicker - governments seem to be eyeing your financial history like a kid in a candy store with a limitless allowance. With CBDCs flying off the assembly line at warp speed, it's as if they're secretly building a LEGO set that resembles a social credit system. Yes, that eerie fusion of the US credit score and China's Big Brother routine. I mean, what's next? Governments telling you what flavor of ice cream to buy on a Saturday night?

But history has its own wise ways of telling tyrants, "Not today, pal." Time and time again, the bigwigs who tried to control the orchestra of human lives ended up being hit by rotten tomatoes instead of receiving a standing ovation. Humans might be a baffling blur in a crowd, but give them a moment to shine as individuals, and you'll witness fireworks that rival the stars.

Cash, my dear friend, is like a magical cloak of freedom. It's the Gandalf of transactions, whispering, "You shall not pass!" to those who wish to peek into your financial escapades. Countries like Slovakia, with their constitutional right to pay with cash, are channeling their inner Dumbledore - reminding us that privacy is not just a fairy tale.

Austria, wanting to follow the cash trail, is like that student who crams for exams at the last minute. They're on the right track, but maybe a bit behind. The point is, digital transactions are indeed convenient, but they shouldn't be the sole path. Cash, with its tangible touch, its secretive rustle, and its off-the-grid charm, should remain a constitutional right, as vital as the air we breathe.

Pause the techno-thriller soundtrack, because it's time for a reality check. As CBDCs spread like wildfire, it's the citizen's duty to remind governments that the virtual leash around our financial necks is not okay. It's time to stand up and shout, "Hey, we're not just nodes in your digital empire!"

CBDCs, my friends, pose a threat. A threat to your privacy, your financial safety, and the very essence of what it means to have autonomy. In a world where every transaction is but a blip on the digital radar, your privacy evaporates faster than a drop of water in the desert.

Please repeat after Qrafty: the blockchain is to control the government’s public spending and financial black holes, not for the government to track its citizens and conditioning the access to their own capital based on their behavior.

Qrafty is seeing this weird scenario where the inflation is dragged out to the point where people start to become extremely affected by its effects and mentally start to search for a solution. Meanwhile, third world countries just have a blast with their gold backed CBDC’s!

Then, as it has happened before, just when people are extremely angry and upset, comes the magical solution: a gold backed US$ CBDC! The paper $USD doesn’t have value anymore because of inflation, let’s make the switch to the new, shiny and improved digital USD!

So, the tale winds down like a suspenseful symphony, urging us all to play a part in the script. As the digital revolution marches on, it's up to us to hit the brakes, to remind governments that our financial lives are not a show for their amusement. It's a call to action, a plea for sanity, and a chance to rewrite the ending.

The future may be a canvas of uncertainty, but one thing is clear: the dance of freedom should be choreographed by us, not conducted by those who wield power. Let's write our narrative, lest we become mere characters in someone else's story. The show's not over till we say it is.

🙃 Qrafty hopes that today’s main story brought brave badgery value to you! Now it’s time for a break, you deserve a bit of fun! 😇 👇️ 

There’s never a dull moment in this market. While the suits market closes at 5 p.m. and opens in the morning after they had their coffee, the crypto market just keeps bashing your head in day in, day out.

A good giggle… priceless. For everything else there’s… laughing hysterically.

Here are the main news of the day

1. Petrodollar getting ditched. India just paid UAE for oil in rupees!

This isn’t something really really tragic for the USD in the short term. But consider that the I in BRICS is India. Also, that about 1.4 billion (yes, with a B) people just in India. So India just paid UAE for brute oil in rupees, after a failed try to do the same with Russia (but Russia said it’s not comfortable holding rupees and would have preferred yuan or other currency).

What does the no. of people have to do with oil, Qrafty?

Well, it’s pretty easy to gauge the demand this way. The demand of a country with 10 mil vs. one with 1.4 billion people is vastly different, agreed? So that’s quite some USD lost from this and future transactions for Oil.

What if BRCS (Brasil, Russia, China and South Africa) also drop the USD?

That seems to be the plan and that is their response to the “Great Reset” that the western world is trying to implement: dropping the $ as a global currency for trade at this level impacts the influence the US, through its AU-US-UK-CAD alliance has over the world, especially in soft power.

So we are making the transition towards a multi-polar world, from the unipolar one we are in right now. And it starts like this. Keep tuned, as there will definitely be more developments.

2. The SEC, Bitcoin ETFs, and Crypto's Political Tango

Former chief of SEC’s Internet Enforcement: “Bitcoin ETF’s will not be approved“

• Unlikely SEC Approval for Bitcoin Spot ETFs: The author expresses doubt about the possibility of the current SEC approving Bitcoin spot ETF applications for various reasons, as presented by the experts at @BetterMarkets. They highlight concerns about the vulnerability of these ETFs to manipulation due to issues like inflated trading volumes and market concentration.

• Partisan Divide in Crypto Regulation: The text highlights the surprising evolution of crypto regulation into a partisan issue at the SEC. This is in contrast to earlier years when figures from both sides of the political spectrum shared concerns about crypto's impact. The SEC's crypto crackdown started under a Republican-appointed SEC Chair, indicating a lack of partisan predictability in the crypto landscape.

• Potential Shift After Election Day: The narrative suggests that crypto-regulatory dynamics could change dramatically after an election. If a Republican were to be elected U.S. President in 2024, the author speculates that the SEC's stance on crypto could become more crypto-friendly. This could lead to reduced enforcement efforts, a higher likelihood of approving a Bitcoin spot ETF, and other favorable crypto-related regulatory actions.

In a playful twist, the author touches on the potential impact of Hester Pierce, also known as "crypto-mom," potentially becoming acting Chair of the SEC. Her track record of dissent and opposition to various crypto-related SEC actions might contribute to a slowdown in crypto-related enforcement and disruption at the SEC.

Bottom line: it’s all political af. Qrafty’s mention: and we’re getting tired af of this.

3. Elon and Zuck cancelled the fight…

The two bumblebees don’t seem to be going at it anymore. The only ones who lost are the veterans. Aside from that, nobody really wanted to see that show, but pretty much a lot of the planet would’ve have watched it.

Zuck is saying that Elon is talking about needing surgery and wanted a test run before the actual event.

This whole debacle didn’t actually bring added value to anyone else except Elon and Twitter… I mean X. Well maybe a bit for Facebook as well, but that’s for a different generation.

How come Qrafty? Aren’t you contradicting yourself?

Well… it’s not like you wake up in the morning and think “I’m looking forward to seeing a train crash today“. But if it happens, you look. It’s the same thing here: it’s not something that adds any real value to your life, but you (and Qrafty) will definitely look.

Well… maybe except for some nerds who have half of the brain filled with code and the other half with the mental prowess of a 12 year old who might think this is cool. Aside from that, even 12 y.o.’s have something better to do.

But yeah… the veterans lost… again. That’s what should’ve been discussed, not the moods of the two attention seeking wh… dudes.

3. Ethereum’s founder, Vitalik Buterin: ALL L2’s have backdoors

So Vitalik just dropped a biggie, which will definitely be used as click bait and attention grabbing headlines.

What are backdoors in this case? Well, they’re exactly what their name suggests: means to be allowed access in the system that circumvent those the developers have made available for the public. It’s like being Sauron and having the master ring that allows you to control and access the power of the other rings.

Or, you know… in a more non-fantasy approach, it’s like having a house with lots of rooms, each room having a different key. But you have a master key to all of them.

It’s impossible for an L2 project to launched completely and fully decentralized from the beginning. The code needs to be adjusted and it’s basically a constant work in progress. So the devs need a way to manage that code, which is why Vitalik mentioned this. It’s true that it’s a big trust issue and it poses fundamental questions about the nature of trust over the internet and especially crypto.

4. FDIC woke up to crypto’s risks

In their 2023 risk review, The Federal Deposit Insurance Corporation (FDIC) highlights the main concerns about digital assets' impact on the financial stability of the United States.

• Firstly, the dynamic and evolving nature of digital assets makes assessing their impact on the financial system difficult.

• Secondly, the interconnectedness of actors in the crypto market can concentrate risk for banks involved.

• Thirdly, the unpredictability of deposit inflows and outflows from crypto companies can lead to liquidity risks for banks. The report specifically mentions stablecoins as susceptible to runs, potentially causing imbalances in banks' balance sheets.

The FDIC urges caution and compliance with regulations in crypto-related activities.

We’re 14 years in gentlemen… congratulations for discovering the wheel!

5. SBF gets new charges, goes to jail & needs (lots) of drugs

Sam Bankman Fried, the mastermind who managed to bring a very profitable crypto exchange to bankruptcy, faces new charges for bribing “donating“ $100 million to politicians with customers funds. He’s requesting his medicine for depression and ADHD while being sent to jail.

The man lecturing us about “effective altruism“ alongside his spectacles wearing little pony tailed monkey needs amphetamines and other chemicals daily, while in jail. And yes, of course you won’t be noticed when you’re in jail and have a really potent and highly sought after drug with you. What drugs? Well, Adderall for ADHD (40 mg spread throughout the day to keep the juices flowing) and Emsam patch for depression. But Mr. Fried definitely knows the laws of supply in demand in a market. But he doesn’t know their effects in jail.

6. Former US president, Donald Trump, is an ETH bagholder

Yuuuup, you read it right, Qrafty didn’t mess up the text like that time when Qrafty swallowed a Tide pod… it’s serious!

Based on a recently released filing, Donald Trump holds between $250 000 and $500,000 in Ethereum, the second largest cryptocurrency by market cap. Last year, he issued a collection of NFT’s that sold like hot baguettes in a French patisserie at 7 a.m. on a Saturday. That means really really fast.

It’s gonna be fun if he goes into full maxi mode! Qrafty will prepare a bucket of popcorn for that occasion.

Hey hey 🙃 Qrafty hopes you are enjoying the experience here and you would like to regularly get Qrafty’s letters!

If so, please click on the button below. Qrafty is really really grateful to have you here, so thank you!

A new type of migraine has been discovered!

Qrafty’s thought of the day: from the edges to the center

Qrafty couldn’t help notice that some of the countries issuing CBDC’s are among the poorest in the world. Worldcoin started scanning eyeballs in really poor countries.

So … Qrafty asks… who benefits from this? What is the bigger system in which these exist?

Now some of them are issuing their own CBDC: Zimbabwe, Nigeria, Bhutan, Ecuador, Antigua and Barbuda (which has about 90 000 people, less than the town you live in now, mkay?).

It’s a weird phenomena… it’s like a trial starting from the outskirts going towards the center. And it’s weird. But… then again… Qrafty is just a crypto badger. Qrafty will look and pay attention for you. Once the perspective is clear, Qrafty will definitely let you know.

Other stories from today worth noting

• UBS gets away with paying $1.4 billion

  In 2018, the DOJ started a civil action against them for basically selling the crap they sold knowingly and intentionally. So after causing the crash, alonside with their lovely peers such as Barclays ($2 billion fine), Deutsche Bank ($7.2 billion fine) and Goldman Sachs ($5 billion fine)

  The bank will be paying the penalty, the Justice Department said today, for defrauding investors by selling mortgage backed securities that caused the 2008 destruction.

  But aside from that, all is happy on the banking front, innit? Nobody’s going to jail, no banker’s life is getting destroyed or affected… It’s not like they did anything bad, did they? And it’s not like there are 2nd degree, 3rd degree up to n degree effects. Buy hey, they got fined!

• Coinbase goes for some paid perspective against the SEC

  Coinbase delved into their marketing coffers and paid for some legal advertising to bash the SEC. The Twitter gentleman calls the “amicus brief“ devastating for the SEC, but Qrafty highly doubts that someone from the SEC will lose any sleep over that. A PR move is a PR move.

   

• Bitfinex monthly report is out. Conclusion: everything slowed down

  Or it’s “languid“, the exact word they used. There are lots of bits and pieces in the document, but the main idea is that things slowed down a lot (which is not really good).

  BTC withdrawals also slowed down (which is good) and the only two things really worth mentioning are PayPal PYCOIN and ARK ETF’s rejection.

• Zimbabwe preparing their digital currency too

  Qrafty finds it very interesting how these poor countries, actually some of the poorest countries in the world, suddenly developed an interest for issuing CBDC’s. It’s true it can be a tool against inflation if you issue a gold backed CBDC’s, like they are doing. But what don’t we know?

  On the surface, they’re battling high inflation and issuing a gold backed CBDC.

• BofA sees indifference for PayPal’s PY

  PayPal’s coin has turned Bank of America into a grumpy old geezer (not that it was any radiant teenager). In a recent report, BofA is saying that PayPal’s security…. I mean coin will not be adopted by the investors, mainly because of competition and the way PayPal decided to explore “other monetization” options rather than yield on reserves.

  Also, the bank mentions “The bank in its analysis further cites a lack of new functionality, lack of wallet compatibility, and trading pairs as reasons why the asset could face headwinds in the future.“

  Banks, huh? Can’t live with them… can’t live without them… Oh wait!?…

• Got a crypto gambling addiction?

  No worries, here’s a luxury resort for ya where you can get treatment. It’s pricey, but you get yoga, massages and bike rides and outrageous prices just because you can’t control yourself and your impulses. So you’re losing money because of your compulsions and you’re losing money to cure those compulsions. Good stuff! :)

Feel that? What….? Your crypto IQ rising?… No no, not that! Nvm, let’s just focus on the crypto IQ, okay?

Qrafty, what is an NFT?

Alright, buckle up for a short and quick roller coaster explanation ride into the world of NFTs – Non-Fungible Tokens, but let's just call them "Neat Funky Treasures" for extra fun.

Imagine digital magic sprinkled over your cat photos, tweets, and even your wild interpretive dance videos. Each NFT is a badge of honor, like claiming you own the last piece of pizza at a party.

Here's the scoop: Regular money is like boring clones – one dollar is the same as another, like an army of identical penguins. But NFTs are the rebels of the digital realm. They're unique, like that one-of-a-kind grilled cheese sandwich that kinda looks like Elvis. Artists, collectors, and even those quirky meme enthusiasts are trading these digital gems. It's like Pokémon cards, but instead of Pikachu, you might have a pixelated pineapple riding a skateboard.

Now, remember the Mona Lisa? Yeah, you can't just grab it and run, but you could own an NFT version – a digital proof that screams, "Hey, I got the coolest digital painting in town!" So, in a world where virtual items are pure gold, NFTs are the golden tickets to the Willy Wonka factory of the internet.

Market Whispers

Oh, guess what? BTC must've had one too many tacos over the weekend 'cause it woke up on Monday like, "Hey, let's throw a wild party and liquidate over 200 million smackers in longs!" Talk about a case of the Monday blues, right? But hold your horses, 'cause in the midst of the chaos, those bullish buddies got all starry-eyed thinking, "Hey, we can totally hit 30K again, right?"

So here we are, my friend, in a whirlwind of crypto drama. BTC's trying to crawl back into that cozy zone it had from June 22nd to July 23rd. You know, the one where it lounged around sipping digital cocktails and catching some virtual rays. Let's see if it can find its way back to that chill hangout spot or if it's just gonna keep giving us the ol' roller coaster ride. Crypto, never a dull moment! 🎢🍹🪂

Today’s trading session was brought to you and sponsored by… sarcasm!

A trader’s mind ... 👇️ 

The unaware bagholder…

That’s all of Qrafty’s wisdom for today! Qrafty thanks you and wishes you to live each moment as if you are listening to the music you love most! Wahaha!s