Blockchain Bites: What Rising Inflation Could Mean for Bitcoin and the US Dollar – CoinDesk – CoinDesk

Bitcoin is a tool to avoid police extortion in Nigeria, centralized social media is being censored amid Thai protests andFederal Reserve Chairman Jerome Powell said thecentral bank will readdress its previous 2% inflation target over the next decade.

Youre readingBlockchain Bites, the daily roundup of the most pivotal stories in blockchain and crypto news, and why theyre significant. You can subscribe to this and all of CoinDesksnewsletters here.

Top shelf

Police-resistantTocombat extortion and coercive policingin Nigeria, some, like Nigerian programmer Adebiyi David Adedoyin, are turning to bitcoin. Human Rights Watch has documented a trend in the country where police detain citizens, determine their life savings through force entry to their phones and seize it. It almost happened to Adedoyin. The money they collected to let me go in that case would have been a lot more if I had more money in my account. But I had most of my money in bitcoin, Adedoyin said. Police are less likely to look for a bitcoin wallet, he said.

Bitcoin fundFidelity Investments chief strategist, Peter Jubber, islaunching a new bitcoin index fund. Disclosed in a Wednesday morning filing with the Securities and Exchange Commission, Wise Origin Bitcoin Index Fund I, LP has a $100,000 minimum buy-in and is the latest example of Wall Street veterans warming up to bitcoin. Wise Origin links back to Fidelity Investments via Jubber and Fidelitys brokerage service and distribution subsidiaries, both of which are set to receive sales compensation from the new fund. It also shares a Boston office building with Fidelity, Danny Nelson reports.

Centralized censorshipThailands anti-government protests highlight thevulnerabilities of major social media platformslike Twitter and Facebook, CoinDesks Sandali Handagama reports. On Wednesday, Thailands digital minister Puttipong Punnakanta said authorities will continue an internet crackdown including Facebook censorship and potential interference on Twitter in an attempt to limit a groundswell of distributed political action in the country.

Exchange extortionTheNew Zealand stock exchange has halted trading for the third dayin a row as a result of criminal cyberattacks. Targeted disruption from malicious actors have knocked the NZX exchanges hosting service Spark has knocked it intermittently offline. The criminals, potentially connected to the Amada Collective and Fancy Bear cybergangs, are demanding bitcoin in order to cease the attacks. Over recent weeks, the group has also attempted to extort bitcoin from PayPal, MoneyGram, YesBank India, Braintree and Venmo, CoinDesks Sebastian Sinclair reports.

Blockchain on the LINEMessaging giant LINE haslaunched a wallet for users to manage digital assets and a blockchain platformwhere developers can issue their own tokens, tokenize digital assets and run decentralized applications (dapps). The wallet services are only available in Japan, at launch, where LINE is particularly well-known. The company, whose messaging app boasts 84 million users, aims to leverage its existing network to jumpstart the development of its token economies and accelerate adoptions of many dapps built on its proprietary blockchain platform setting it apart from other messaging app blockchain experiments.

Quick bites

At stake

Inflation watchFederal Reserve Chair Jerome Powellannounced new measures to control inflationat his annual speech on the U.S. central banks policy approach during the Jackson Hole symposium Thursday.

The Fed has left itself flexibility to change its monetary policy plans in the future, including letting inflation rise above its traditional 2% target. In his speech, Powell didnt rule out any use of its monetary policy tools, such as a broader expansion of its balance sheet to keep markets from tumbling if the economy worsens and bankruptcies increase.

Its a speech that may have long-term implications on both bitcoin andether, given the dollars relatively precarious position in the global financial system.

The implication for crypto is that the Fed will likely let inflation run hot for a few years, which could theoretically weaken the dollar and boost prices for bitcoin.

Thursday offers a reminder of just how dramatically once-slow-moving monetary forces have accelerated due to the devastating economic toll of the coronavirus pandemic. The national debt now stands at $26.5 trillion. Digital currencies are now being studied and pursued by central banks in China, the U.S. and just about everywhere else. Goldman Sachs recently warned the dollar risked losing its dominant reserve status, CoinDesks Bradley Keoun reports.

Market intel

Flat optionsBitcoins options marketforesees little price turbulence in the short term,CoinDesks Omkar Godbole reports. Bitcoins implied volatility on one-month options, a gauge of the markets expectations for price movements, fell to the lowest level since July 25. Short-term price expectations have declined sharply from 70% to 52% over the past two weeks. This wait-and-see approach is happening ahead of Federal Reserve Chair Jerome Powells Jackson Hole address, in which hes expected to signal tolerance for high inflation a move that could weaken the U.S. dollar and propel bitcoin higher.

Tech pod

Back to the Baseline?Baseline Protocol, wherecorporates can use the Ethereum public mainnet as a common frame of referenceamong different systems of record, has released its Version 1.0. The way enterprise blockchains typically work is by running data on-chain like a traditional workhorse database a grave error of judgment, John Wolpert of ConsenSys said. Announced Wednesday, the Microsoft-backed project developed by Paul Brody, blockchain lead at EY, and Wolpert uses Ethereum only for hashing and ordering events, CoinDesks Ian Allison reports.

DeFi debateDeFi Pulse, run by the Concourse Open Community, has becomethe chief source of knowledge in the decentralized finance(DeFi) space, pionering a metric called, Total Value Locked. TVL represents the dollar value of all the tokens locked in the smart contract of a given decentralized lending project. While a convenient way to rank projects, it also raises controversies around the value in locked-in value.


NFT games?Leah Callon-Butler, a CoinDesk columnist and director of Emfarsis, reveals the unknown world ofFilipinos using non fungible tokens (NFTs) to earn a livingduring the coronavirus pandemic. A popular Ethereum-based game, Axie Infinity, where players breed, raise, battle and trade adorable digital critters called Axies, is providing pathways out of poverty and helping spread the word about novel technology, she said. Its food on the table, its money for their families and its saving them when they cannot even leave the house during this pandemic, Gabby Dizon, the Filipino co-founder of mobile app development company Altitude Games, said.

Podcast corner

Distributing dictators hordeRuben Galindo, CEO of the P2P network Airtm, joins the latest The Breakdown to discuss how thecrypto-powered network is teaming with Venezuelas opposition government to distribute $18 millionin funds the U.S. seized from the Maduro dictatorship.

Who won #CryptoTwitter?

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Blockchain Bites: What Rising Inflation Could Mean for Bitcoin and the US Dollar - CoinDesk - CoinDesk

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