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Republican Candidate for US Senate, Curtis Bashaw, Accepts Bitcoin Donations

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Key Points

  • Republican candidate for US Senate, Curtis Bashaw, started accepting Bitcoin donations for his campaign.
  • His stance on crypto aligns with other prominent political figures seeing digital assets as innovation and progress.

Curtis Bashaw, a Republican candidate for the US Senate, started accepting Bitcoin donations for his campaign. Bashaw is running for the US Senate in New Jersey to “provide freedom, security and opportunity to every New Jerseyan”, according to his X account.

The Republican candidate positions himself as a supporter of innovation and progress by integrating Bitcoin into his campaign. The move appeals to the growing number of American voters supporting blockchain technology and digital assets.

He recently stated that by embracing crypto, he is aligning his campaign with the future of finance. Bashaw’s campaign website is now featuring Bitcoin as a payment option via Anedot.

New Jersey Ranks 2nd in Terms of Crypto Owners

New Jersey is currently ranked second in the nation for the percentage of residents who own crypto, according to data from Coinbase.

Such high level of crypto adoption would benefit from a leader who understands and supports the industry and its potential.

It’s also worth noting that Bashaw’s pro-crypto position in NJ is important, especially during times in which the US is competing with China and other important global powers for dominance in blockchain technology and crypto.

US Political Bitcoin and Crypto Support

Bashaw’s campaign is aligned with the broader political trend which involves important political figures showing support for crypto and the blockchain.

For instance, important figures such as Miami’s Mayor Francis Suarez and Wyoming Senator Cynthia Lummis have been also showing strong support for the industry, bringing it into political discourses.

Lummis has been addressing FIT21 fighting to help the industry flourish in the US making regulating crypto in the country clearer for everyone who is working in the industry.

In June, it was reported that ‘Stand With Crypto’, a nonprofit group that has been created to keep the crypto industry in the US is fighting for “common-sense” regulations for digital assets

Also, former US President Donald Trump has been showing increased crypto support in 2024, with his own presidential campaign accepting Bitcoin as well.

The Republican Presidential candidate has been addressing his support for crypto on various occasions, highlighting that the US government should not sell its Bitcoin reserves.

In 2024 political support for Bitcoin and crypto has been on the rise, along with the growing crypto awareness in the US.

Crypto Awareness is Surging in the US

According to June data from Security.org, their 2024 Crypto Adoption and Sentiment Report, highlights that crypto awareness and ownership rates have increased to record levels.

Now, 40% of American adults own crypto, up from 30% in 2023, which translates to about 93 million people.

Security.org
Security.org

According to their data, among current crypto owners around 63% hope to obtain more crypto over the next year, with Bitcoin being the most desired digital asset in their top.

Other important data from Security.org’s report includes the following:

  • The rate of crypto ownership by women surged from 18% in 2023 to 29% at the start of 2024.
  • 21% of non-owners said that the Bitcoin ETFs in the US bring more openness to crypto investments.
  • BTC ETFs could bring as many as 29 million American investors to the market.

Institutional Investment in Crypto on the Rise

It’s also worth noting that institutional investment in crypto is on the rise in the US. The trend has been especially accelerating in 2024 following the approval of Bitcoin ETFs at the beginning of the year.

As of June 30, important financial entities such as Morgan Stanley and Goldman Sachs disclosed owning shares in Bitcoin ETFs.

Morgan Stanley revealed significant positions in BlackRock’s Bitcoin ETF, IBIT – over 5.5 million shares worth about $188 million. They also disclosed shares in ARK 21Shares Bitcoin ETF, ARKB, and Grayscale Bitcoin Trust, GBTC as well.

Goldman Sachs also reported having fund shares in the US-based Bitcoin ETFs worth over $418 million as of June 30.

As Bitcoin valuation scenarios reach staggering predictions, such as VanEck’s $2.9 billion for BTC by 2050, the adoption of Bitcoin and crypto in the US continues to advance at a rapid pace.



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Marathon Digital Raises $1B to Expand Bitcoin Holdings

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Marathon Digital Holdings, one of the largest Bitcoin miners, has completed a record $1 billion offering of 0% convertible senior notes due 2030. The net proceeds from the sale were approximately $980 million.

According to the firm’s statement, the net proceeds will be primarily used to buy Bitcoin

Marathon Digital Holds over $2.5 Billion Worth of Bitcoin

After its last purchase in September, Marathon Digital’s Bitcoin holdings stand at 25,945 BTC. This is currently worth approximately $2.52 billion, as Bitcoin reached an all-time high of $98,000 earlier today. 

However, the company’s decision to expand its holdings potentially points to a larger bullish cycle for the token in the long term. According to its press release, Marathon Digital plans to use $199 million of the net proceeds to repurchase existing convertible notes due 2026. 

The remainder will be used to acquire additional Bitcoin and for general corporate purposes. Marathon Digital is currently the second largest Bitcoin holder among publicly traded companies. 

marathon digital bitcoin holdings
Bitcoin Holdings by Public Companies. Source: CoinGecko

The notes offer flexibility, with options for conversion into cash, shares of Marathon’s common stock, or a combination of both. Redemption terms include the ability for the company to redeem the notes at full principal value plus accrued interest. 

“$1 Billion. 0% interest. MARA has completed the largest convertible notes offering ever amongst BTC miners. The mission, as always: Provide value. Acquire #bitcoin,” the company wrote on X (formerly Twitter). 

Increasing Bitcoin Acquisition Among Public Firms 

Marathon Digital is following an ongoing trend of public companies increasing their Bitcoin holdings in this bull market.  Earlier this week, MicroStrategy announced plans to issue $1.75 billion in convertible notes maturing in 2029. The proceeds will be used to fund additional Bitcoin purchases. 

On the same day, the company secured $4.6 billion worth of Bitcoin, building on a $2 billion acquisition from the prior week. 

Bitcoin’s all-time high and these aggressive purchases propelled MicroStrategy’s stock price by nearly 120% in a single month. The largest Bitcoin holder also entered the list of top 100 public companies in the US. 

Meanwhile, Marathon Digital has faced challenges despite its growing Bitcoin reserves. The company reported a $125 million net loss in Q3. This was driven by a $92 million year-over-year increase in operating costs. 

However, its operational capacity has strengthened. Earlier this month, its energized hash rate surged by 93%, signaling increased mining efficiency. Marathon Digital also signed an $80 million agreement with the Keynan government to expand its Bitcoin mining capabilities. 

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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cbBTC Surges Past $1 Billion as Coinbase Ends WBTC Support

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Coinbase, the largest US-based crypto exchange, has announced it will suspend trading for Wrapped Bitcoin (WBTC) on December 19, 2024, at approximately 12 p.m. ET.

The decision, revealed in a post on X (formerly Twitter), cites a routine review of its listed assets to ensure compliance with listing standards. 

Coinbase Sidesteps WBTC Amid cbBTC Boom

The suspension will apply to both Coinbase Exchange and Coinbase Prime. Although trading will cease, WBTC holders will retain full access to their funds and the ability to withdraw them at any time. In preparation for the transition, Coinbase has moved WBTC trading to a limit-only mode, where users can place and cancel limit orders while matches may still occur.

“Coinbase will suspend trading for WBTC (WBTC) on December 19, 2024, at or around 12 pm ET. Your WBTC funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time. We have moved our WBTC order books to limit-only mode. Limit orders can be placed and canceled, and matches may occur,” Coinbase detailed.

Coinbase’s move to suspend WBTC comes amid the rapid success of its wrapped Bitcoin token, cbBTC. Recently, cbBTC surpassed a $1 billion market capitalization, reflecting growing adoption and trust within the crypto community. This milestone has further cemented cbBTC’s position as a strong competitor to WBTC in the decentralized finance (DeFi) space.

oinbase’s cbBTC Bitcoin Wrapper Supply and Market Cap Chart
Coinbase’s cbBTC Bitcoin Wrapper Supply and Market Cap Chart. Source: Dune

As of this writing, data on Dune shows that cbBTC market capitalization has increased to $1.44 billion. CBTC’s native availability on networks like Solana, Ethereum, and Base has significantly expanded its accessibility, with Arbitrum being the latest addition.

“cbBTC is live on Arbitrum. cbBTC is an ERC-20 token that is backed 1:1 by Bitcoin (BTC) held by Coinbase. It is natively available on Arbitrum and securely accessible to more users across the Ethereum ecosystem,” Coinbase shared on Tuesday.

Additionally, prominent DeFi protocol Aave is targeting cbBTC for its Version 3 (V3) platform, enhancing its utility within the ecosystem. This growing momentum may have played a key role in Coinbase’s decision to phase out WBTC trading.

WBTC Core Team Urge Coinbase to Reconsider

The team behind Wrapped Bitcoin expressed regret and surprise at Coinbase’s decision. In a statement on X, WBTC’s core team emphasized its commitment to compliance, transparency, and decentralization. 

“We regret and are surprised by Coinbase’s decision to delist WBTC…We urge Coinbase to reconsider this decision and continue supporting WBTC trading,” the team said.

The statement outlined WBTC’s longstanding reputation for novel mechanisms, regulatory compliance, and decentralized governance. Highlighting its seamless integration with DeFi protocols, WBTC described itself as an essential liquidity solution for Bitcoin users. Urging Coinbase to reconsider, WBTC reaffirmed its readiness to address any concerns or provide additional information to support its case.

Meanwhile, Coinbase’s announcement has sparked mixed reactions across the crypto community. Some users criticized the exchange, suggesting the decision reflects an inability to handle competition.

“Coinbase can’t handle fair competition?? WBTC superior to cbBTC” said Gally Sama in a post.

Nevertheless, others support the move, citing concerns over WBTC’s custody model, with one user referencing BitGo’s recent adoption of a multi-jurisdictional custody system.

“You put custody in the hands of a fraud. What did you think was gonna happen?” the user expressed.

This critique aligns with growing fears about Justin Sun’s involvement in WBTC’s custody processes, as BeInCrypto reported recently. Some users have acted preemptively to avoid potential risks, with one commenter sharing their reservations.  

“When Sun got on the multisig for WBTC, I sent all my WBTC on OP to Coinbase and exchanged for true BTC that I withdrew to my hardware wallet… You gave me confirmation just now that I made the right move,” they wrote.

The decision to suspend WBTC trading could mark a pivotal moment in the competition between wrapped Bitcoin solutions. While cbBTC’s integration across multiple blockchain networks has gained momentum, skepticism surrounding WBTC’s custody model and leadership has intensified.

Justin Sun has voiced criticism of Coinbase’s cbBTC strategy, labeling it a setback for Bitcoin’s broader adoption. As the debate continues, the industry watches closely to see whether Coinbase’s cbBTC will solidify its dominance or if WBTC can regain its position as a leading wrapped Bitcoin solution. Regardless, the shifting dynamics reflect the importance of transparency, governance, and community trust in shaping the future of DeFi.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Bitcoin Faces ‘Bank Run’ Risk, Cyber Capital’s Bons Warns

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Bitcoin (BTC) may be at risk of a catastrophic “bank run,” according to Justin Bons, founder and CIO of Cyber Capital.  

A bank run is when customers withdraw their deposits from a financial institution over fears of insolvency. 

Bitcoin Cannot Handle Mass Exits, Bons Says

In a detailed social media thread, Bons highlighted critical flaws in Bitcoin’s transaction capacity, self-custody model, and network security. In his opinion, these could lead to a crisis that would destabilize the network and devastate investors. 

Bons’ analysis centers on Bitcoin’s limited transaction processing capability, which he calculated at approximately seven transactions per second (TPS). Using data from Glassnode and Bitcoin’s code, he argued that Bitcoin’s 33 million on-chain users would face a bottleneck if a mass panic triggered simultaneous exits. 

“At this rate, the queue would be 1.82 months long under optimal conditions. However, in reality, transactions would get stuck and eventually be dropped, making it impossible for smaller parties to exit unless they pay exorbitant fees,” Bons explained.

Bons warned that this limitation could lead to a “death spiral,” where a price crash forces miners to shut down, slowing the network further. The resulting delays could deepen the panic, creating a vicious cycle of declining hash rates, prolonged block times, and falling prices. 

Further in his critique of BTC, Bons claimed Bitcoin’s transaction capacity is insufficient for real-world use. He compared Bitcoin’s 7 TPS to other systems, such as Visa’s 5,000 TPS, or even competitors in the crypto space that exceed 10,000 TPS without sacrificing decentralization. 

“There are literally ZERO use cases that can be supported by 7 TPS. Mass self-custody over BTC is a dangerous narrative. The only scalable path forward for BTC adoption is through centralized custodians and banks, contradicting its ethos as ‘freedom money’,” he stated.  

Bons also questioned Bitcoin’s long-term sustainability, citing its shrinking security budget. This, in his opinion, is a critical issue that could exacerbate the risks he outlined. The thread also touches on Bitcoin’s deviation from its original vision as “peer-to-peer (P2P) electronic cash.” He lamented that the network’s constraints and governance have turned it into a speculative asset rather than a practical medium of exchange. 

Bons’ remarks ignited a heated debate on X (formerly Twitter). Patrick Flanagan, a self-described tech expert, dismissed the claims.

“This is pure fantasy. If this was going to occur, it would have occurred years ago,” Flanagan argued.

Bons rebutted, asserting that the risk increases as the number of users grows. He noted that even a fraction of users leaving could trigger a run and added that the larger the network gets, the more severe the problem becomes.

Other users highlighted potential alternatives, such as trading wrapped Bitcoin (WBTC) on Ethereum, which bypasses Bitcoin’s base layer limitations. Bons acknowledged this but noted that wrapped BTC users could exit quickly while on-chain users would be trapped, exacerbating the sell-off.  The discussion also extended to Bitcoin’s self-custody model.

“This is something that self-custody advocates should pay attention to. One tiny bit of FUD and everyone gets their money stuck,” DashPay’s Joel Venezuela remarked.

Bons responded, acknowledging the difficult position he finds himself in as a cypherpunk and self-custody advocate. Another user raised a comparison to gold, questioning how long it would take to liquidate global gold holdings. Bons countered that while gold also has practical limits, its theoretical transaction capacity far exceeds Bitcoin’s, making it less susceptible to such bottlenecks. 

Critics of Bons’ analysis argue that Bitcoin has weathered similar concerns in the past without collapsing. However, his warning adds to a growing chorus of voices calling for a reevaluation of Bitcoin’s scalability and usability. 

Despite his grim outlook for Bitcoin, Bons remains optimistic about the broader cryptocurrency space. “There is much hope left for cryptocurrency as a whole,” he concluded, suggesting that Bitcoin’s original ethos now thrives in other blockchain projects. 

Meanwhile, while Bitcoin remains the dominant cryptocurrency, debates over its scalability and resilience continue. Bons’ warning serves as a stark reminder of the challenges Bitcoin faces as it seeks broader adoption in a changing financial space. Elsewhere, Galaxy CEO Mike Novogratz has almost similar reservations about a Bitcoin reserve in the US.

“I think that it would be very smart for the United States to take the Bitcoin they have and maybe add some to it… I don’t necessarily think that the dollar needs anything to back it up,” Novogratz claimed.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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