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Crypto Flipsider News – July 30th – EU Invests in Crypto, Mining Without Taxes, PayPal, Ether B-day, Fortune Magazine, Ronaldinho

  • The EU contributes $30M to Crypto VC Firm’s $130M fund in support of the open economy.
  • The number of crypto users has doubled in 6 months.
  • Mining company to allow US clients to mine Bitcoins without paying taxes.
  • PayPal plans to expand its crypto functionality.
  • News in micro-bites: ETH’s birthday, crypto on Fortune’s cover, NFTs.

The EU Contributes $30M to Crypto VC Firm’s $130M Fund in Support of the Open Economy

London-based Fabric Ventures has allocated a $130 million war chest for investing in early-stage blockchain firms. 

One of the backers is the European Investment Fund (EIF) and the Luxembourg Future Fund (LFF), which have each signed off €25 million ($30 million) at the first close of Fabric Ventures, a Europe-based venture fund whose core mission is to back the founders of the open economy across the globe.

EIF’s Chief Executive, Alain Godard, enthused in a statement that the Fabric partnership was “of particular strategic importance for the EU and our competitiveness on the global stage,” and that they are “very pleased to be partnering with Fabric Ventures to bring to the European market this fund specializing in Blockchain technologies.”

It’s the first time a vehicle affiliated with the European Commission has invested in a fund focused on digital assets.

Flipsider:

  • First the EU wants to propose stricter legislation on cryptocurrencies to fight money-laundering, but now they’re investing in blockchain firms. Seems like quite a contradiction.

The Number of Crypto Users Has Doubled in 6 Months

The number of crypto users doubled in the first half of 2021, according to data from Crypto.com. The company used on-chain data to compile figures from 24 of the largest crypto platforms.

The number of crypto users has jumped from 106 million to 203 million over the past 6 months

Most of the growth happened during May, when China’s crackdown on Bitcoin miners heightened, and Tesla CEO Elon Musk commented on Bitcoin’s carbon footprint, leading to the adoption of Altcoins.

Flipsider:

  • Visible growth in the number of cryptocurrency users clearly demonstrates that crypto isn’t going anywhere and is here to stay.

Mining Company to Allow U.S Clients to Mine Bitcoins Without Paying Taxes

A cryptocurrency mining company has taken the headlines with a controversial business offer. U.S Bitcoin mining firm Compass Mining has announced the plan allowing miners to avoid income tax on Bitcoin mining. The firm says it becomes possible when mining BTC directly into a certain, crypto-friendly, individual retirement account (IRA).

The model is simple: miners buy BTC mining hardware though a certain IRA. Bitcoins thus minted through such devices will not be taxed by the IRS via income tax.

Cryptocurrency mining revenue has been taxable in the United States since 2014.

Flipsider:

  • Miners could become at risk of overpaying for hardware, since they may be obliged to buy from certain manufacturers. On the other hand, in what way does tax evasion contribute to the social system, which relies on taxpayers? 

PayPal Plans to Expand its Crypto Functionality

PayPal will allow British users to trade cryptocurrency on their “super app.”

PayPal is planning to expand their crypto offerings to fresh markets, with the United Kingdom set in their sights. Dan Schulman, the CEO of Paypal, stated that the U.K. will perhaps be the next market they step into.

The company is also said to be steadily improving the capabilities of their crypto exchange app program. It has recently raised its purchase ceiling on crypto to $100,000, which stands in contrast to the prior $20,000 per week.

DeFi was also touched upon by Schulman. Ideas about how to integrate dApps and Smart contracts, which looks to be the next-generation of finance, were also entertained, with a recently emerged video suggesting that things are moving in the right direction for the company.

Flipsider:

  • Paypal has come under fire from news outlets, questioning the company’s decision to partner up with the Anti-Defamation League. The decision added fuel to the polarization that is already rife in America.
  • The company’s stock has dipped in value lately due to its separation with Ebay.

News in Micro Bites

  • Today is Ethereum’s birthday. Six years ago, Vitalik Buterin launched the network, which is still changing the world to this day. For example, Ethereum’s blockchain is used in various projects and now in most NFTs. 
  • Crypto was featured on the main page of Fortune magazine. The headline reads: “Crypto vs Wall Street,” and the title of the editorial pick is: “How Crypto Went from Mania to Mainstream.” 
  • Ronaldinho has launched an NFT collection in collaboration with Rio-based marketplace INFLUXO. The starting bid is 20,000 USDT ($20K), with the possibility of minimum incremental bids of $10K.

Flipsider:

  • It’s certainly good that crypto is going mainstream, however, let’s hold the celebrations for the great inflow of newbies that is bound to follow this event, which will inevitably lead to more news that people are getting scammed.

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