Buy an NFT — Become a NYC based artist
GM, we take the latest Web3 news and translate it into plain old English - so you can stay up to date, without your eyes glazing over.
In today’s edition:
The 'make or break' crypto bill, that just started leaning towards 'make'
Does the term 'democratizing education' set off your bullshit alarm?
RESOURCE: What is VeChain? (Learn in ~9mins)
This NFT gives you direct access to the New York art market
Terms used (click for translation):
Blockchain, Stablecoins, Fiat Currency, Web3, NFTs.
The 'make or break' crypto bill, that just started leaning towards 'make'
Can you become a dad, without actually having a kid?
We think we might have done just that.
Why else would we be getting so excited about tax legislation??
A draft of the 'Responsible Financial Innovation Act' was presented a few days ago and its focus is on regulating cryptocurrencies.
Aka: a guide on 'how to buy crypto and NOT get sued or put in jail by a government body'.
This sort of regulatory guidance is VERY important for institutions (aka 'BIG MONEY') that want to invest in the space.
The bill aims to divide up the governing responsibilities between the CFTC (which regulates commodities) and the SEC (which regulates securities).
What in the world is the difference between a commodity and a security? Fair question.
The key difference is control.
Owning a security gives you control in something (like a share in a company), whereas a commodity is a valuable good (like gold).
If you buy a share in a company, you get a little bit of control in how the company is operated (each share gives you voting rights - buy enough shares and you can control any vote).
Whereas, if you buy gold, you don't get a voting share in the 'thing'. You just get...well, gold.
The big / huge / important difference for cryptocurrencies and how they're viewed, is this:
A security can be shut down, broken up or dissolved by the government.
(E.g. If Apple started making nuclear weapons, the government could/would come in and shut them down)
A commodity can be banned by a government, but it can't be stopped from existing.
(E.g. A government might ban the trade/use of oil, but oil will still exist).
This level of potential control in a 'thing', changes how the government treats it.
Crypto being classed as a commodity would likely see the government take the 'if you can't beat em, join em' approach, and fully embrace blockchain technology.
Here are the cliff notes of the bill's proposals and their potential effects:
Most cryptocurrencies will be considered commodities.
This would be HUGE! Whether or not this is how all cryptocurrencies will be treated in the final draft of the bill? That's another question.
(It's doubtful).
This would mean crypto 'spot ETFs' could come to the US, much sooner than expected.
(E.g. A Bitcoin ETF would essentially allow BTC to be traded on the stock market)
Sounds small, but this would act as a quick and easy 'on ramp' for investors, that could have a large / positive effect on coin prices.
Stablecoins will need to be backed by real fiat currency and be able prove it, publicly.
E.g. Stablecoins that sell people a token that's tradable for $1 USD, will need to prove they have real US dollars at the ready, if someone wants to make that swap.
Here's why this is so important:
Fair, balanced (and most importantly) clear regulatory guidance like this will give the green light to institutional investors to enter the market, with open wallets.
Sub text: the Web3 space will likely explode, prices will go up, your weird uncle that bought Bitcoin in 2012 will get even richer.
Very exciting!
If anyone needs us, we'll be in dad mode, watering down the driveway and muttering about gas prices...
Does the term 'democratizing education' set off your bullshit alarm?
‘Democratization’ has been one of the hottest buzzwords in tech over the past few years.
A quick YouTube search will lead you to learn:
How to democratize innovation; and even
So we were just the slightest bit skeptical, when Jack Dorsey and Jay-Z came out and said they were looking to 'democratize education', with their new venture 'The Bitcoin Academy'.
...but it actually sounds great!
The free program has been designed to give the residents of the Marcy Project public housing complex in New York City (which is the same complex Jay-Z grew up in), access to financial information.
While it’s not 100% clear on what exactly will be taught, the topics are expected to be about the necessity, utility and vision for Bitcoin; as well as teaching skills for general financial literacy.
Regardless of the program’s name, Dorsey says it aims to go beyond education about Bitcoin.
He says it’s likely to spark conversations surrounding “long-term thinking, local economies and self-confidence.”
Better access to financial education?
We don't need any buzzwords to get on board with that.
Resource of the day
What is VeChain?
(Learn in ~9mins)
This NFT gives you direct access to the New York art market
A telephone, a camera, a TV, a letter box, a calculator, a torch, a credit card...
30 years ago, these were all separate things.
Now they're stock features on the smart phones in our pockets.
Isn't that wild?
The process of digitization and dematerialization in our modern world can lower the barrier to entry, into many things.
You can now:
Start a retail store from your bedroom, with a laptop and an internet connection.
Broadcast your own original media productions to the world, with a camera and a YouTube account.
And as of June 15, you'll be able to display/sell your art in a New York gallery (without leaving your house) using blockchain technology.
Anyone owning a 'Web3 NYC Gallery' genesis NFT, will be allowed to remotely display/sell their digital art on the gallery's screens.
This sounds like it could be another 'cute' gimmick in the world of NFTs, but we have a feeling it's more than that...
New York is, in many ways, the Mecca for the modern art world.
The ability to buy, or even rent a display in a Manhattan gallery - from anywhere in the world - could be a massively powerful tool for new artists looking to break into a very 'walled off' industry.
If the Web3 NYC Gallery is a success, it will likely be replicated by competitors.
And the neat thing about competition is: it often levels out the 'price of entry' in a market.
Let's hope it does the same here!
Your Daily Dose of Web3
Appeals court rules Do Kwon, Terraform Labs must heed SEC subpoena served in September
Crypto Reacts: The CryptoPunks V1 NFT Collection Turns Five Years Old
Qatar Airways says ‘The metaverse will empower human beings’
Optimism Hacker Sends 1 Million Tokens to Ethereum Founder Vitalik Buterin
Alright, that’s it for today!
Love to the family,