In the days following the recent US election victory of Donald Trump, cryptocurrency (especially Bitcoin) has stepped once again into the spotlight as the financial world prepares for what many are considering the most crypto-positive US administration yet.
With a campaign promise from July of this year, Trump notably said he would make the United States the “crypto capital of the planet,” creating a Bitcoin strategic reserve and making huge strides in regulation of cryptocurrency.
What is a Strategic Reserve?
Assets kept as strategic reserves are exactly what they sound like: Official assets held by the government as reserve stores of value and protection against inflation.
The United States’ Bullion Reserve is massive, containing approximately 8000 metric tons of gold in 2024. Other US strategic reserves include grain, natural gas and petroleum. SOURCE
An official Bitcoin Strategic Reserve would establish Bitcoin as a store of value on an internationally recognized scale, likely leading to some form of BTC accumulation race among the nations of the world.
The United States government already holds approximately 207,000 Bitcoin, SOURCE but as 2025 nears, it is becoming more likely that US BTC holdings will be ramped up to 1 million Bitcoin, which constitutes nearly 95% of its total supply.
With legislation already introduced that could initiate this ongoing BTC purchase, conditions are looking favorable for the US to elevate the status of cryptocurrency by accumulating and holding for years.
Many analysts speculate that US acquisition of Bitcoin as a strategic reserve would lead very quickly to other nation-states following suit. Bitcoin’s max total supply is only 21 million and its deflationary distribution to miners is halved every four years. If the United States adopts this strategic Bitcoin reserve plan, chances are good that the US will indeed be considered the “crypto capital of the planet,” as Donald Trump mentioned during his presidential campaign.
Bitcoin Legislation
Also in the wake of Trump’s victory, US states are now introducing legislation regarding the use of Bitcoin as a strategic reserve form of currency. Pennsylvania is the most notable example, having introduced new legislation last week.
On November 14th, the Pennsylvania House of Representatives introduced its own Strategic Bitcoin Reserve Act, a plan that would allocate up to 10% of state funds into BTC in order to protect against inflation and diversify its assets.
The Pennsylvania Strategic Bitcoin Reserve Act was written with the help of Satoshi Action Fund, a non profit crypto advocacy group that has created a model bill to introduce Bitcoin strategic reserve plans into state legislation, with Pennsylvania at the forefront of the newly unveiled plan.
In October, the Pennsylvania House also passed the Bitcoin Rights Bill, also created with the help of Satoshi Action Fund, with an overwhelming majority (176 to 26) from both sides of the aisle.
BREAKING: Pennsylvania has passed ‘Bitcoin Rights’ Bill in the House. 🇺🇸
This bill: — Protects residents' rights to self-custody — Ensures ability to use #bitcoin as a payment — Provides explicit guidelines around taxing transactions
Satoshi Action Fund is working with policy and lawmakers in multiple states to assist in establishing regulatory frameworks that will advance the adoption of cryptocurrency. Even during a contentious election year, rights and regulations for cryptocurrency owners have emerged as bi-partisan issues that both Democrats and Republicans view as worthy of time and attention.
According to the National Conference of State Legislatures, at least 35 states have crypto-related legislation either introduced or pending in 2024. SOURCE
The Bitcoin Act
First proposed in late July by Wyoming US Senator Cynthia Loomis, the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act is currently the clearest path to US adoption of the world’s original cryptocurrency on a massive scale that could be a game-changer for all Bitcoiners.
“Bitcoin is transforming not only our country but the world and becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation. This is our Louisiana Purchase moment that will help us reach the next financial frontier.”
– Cynthia Loomis
If passed, the “BITCOIN Bill” would:
Establish a US “decentralized network of secure Bitcoin vaults.”
Implement a 1-million-unit Bitcoin purchase program to acquire 5% of total supply.
Be funded by diversification of existing funds in Federal Reserve and Treasury departments.
Affirm self-custody rights for private Bitcoin holders.
GalaChain is not in the business of predicting the future or speculating on token price action. Still, it’s plain to see that all this crypto news is closely related to the lasting adoption of web3 technology. When a leading economic force like the US government adopts Bitcoin as a strategic reserve currency and implements a state-of-the-art regulatory framework for crypto, a reasonable expectation is for other nations to follow that lead.
Historically, Bitcoin’s successes have usually flowed down into various altcoin projects as early adopters take and diversify projects into more specialized future use-cases.
Gala Loves Bitcoin
Without the pioneering vision of Bitcoin and its leadership on the road to web3’s mass adoption, GalaChain never would have been possible. We are building on the backs of giants, excited to bring the benefits of web3 to wider audiences in multiple industries and with the latest web3 tech advancements.
Whatever the future holds for Bitcoin and other cryptocurrencies, we look forward to new systems that empower users with more freedom and control than ever before.
The content of this article is not investment advice.
As we continue to explore the many avenues that can lead to the widespread adoption of blockchain tech, one financial instrument has been making waves in both traditional finance and the emerging Web3 space—Exchange-Traded Funds (ETFs).
With vastly increased attention over the past few months, it’s clear that ETFs will play a significant role in driving mainstream acceptance of blockchain and Web3 technologies. But what exactly are ETFs, and why are they so crucial to the mass adoption of Web3? Let’s dive in.
What Are ETFs? Breaking It Down
An Exchange-Traded Fund (ETF) is a type of investment fund and exchange-traded product that holds assets such as stocks, commodities or bonds. ETFs are traded on stock exchanges like individual stocks. This means they can be bought and sold throughout the trading day at market price, which fluctuates with the value of the underlying assets within the particular ETF.
The Appeal of ETFs
In the more traditional world of finances, ETFs have gained popularity because they offer investors exposure to a wide array of assets without requiring them to buy each asset individually. For instance, an investor can buy shares of an ETF that tracks the performance of the S&P 500, thereby gaining exposure to the top 500 companies in the U.S. stock market with a single purchase. This convenience, combined with generally lower fees compared to mutual funds, makes ETFs an attractive option for both novice and seasoned investors.
ETFs and the Web3 Ecosystem: A Perfect Match?
Bridging Traditional Finance and Blockchain
The connection between ETFs and crypto is becoming increasingly significant. As blockchain-based assets continue to steadily gain traction, the introduction of ETFs that track some of these assets allows traditional investors to gain exposure to the blockchain space without directly buying or managing cryptocurrencies.
In the same way that the traditional financial system can appear mysterious and daunting to many early adopters of web3, it can be difficult for traditional investors to dive directly into the web3 pool. ETFs present a shallow end with easier entry, allowing those investors to first get their feet wet without becoming overwhelmed by the less regulated deep end.
Essentially, ETFs are particularly appealing to those who are curious about blockchain but wary of its volatility and technical complexity.
Accessibility: ETFs provide a familiar and regulated investment vehicle for traditional investors to explore the world of blockchain. This ease of access is crucial for onboarding new users to the Web3 space, where unfamiliarity has consistently proven itself a significant barrier.
Institutional Interest: The approval and adoption of blockchain-based ETFs by regulatory bodies signal a growing institutional acceptance of blockchain. As large financial institutions enter the space through ETFs, legitimacy is lended to the entire Web3 ecosystem, encouraging a community of increasingly more conservative investors to participate.
Market Stability: By providing a diversified and regulated way to invest in blockchain technology, ETFs can help stabilize the market. This can reduce the extreme volatility often associated with cryptocurrencies, making the Web3 space more attractive to the general public. As more traditional money flows into these markets, they generally will become more difficult for whales to manipulate.
The Road Ahead: ETFs as Catalysts for Mass Adoption
Looking back several years from now, ther’s a good chance that 2024 will be remembered as the “year of the ETF” in the same way that 2018 was all about ICOs and 2021 centered around NFTs.
ETFs represent a bridge between the traditional financial system and the emerging world of Web3, and bridges are incredibly important when it comes to mass adoption. By offering a regulated, accessible and relatively low-risk entry point into blockchain, ETFs are likely to play a pivotal role in bringing blockchain technology into the mainstream.
As we continue to develop the GalaChain ecosystem, we recognize the importance of such instruments in shaping the future of Web3. By keeping an eye on these trends, we position ourselves—and our community—at the forefront of the blockchain revolution.
The first Bitcoin ETFs were approved by the US Securities and Exchange Commission (SEC) in the first weeks of 2024, with a total of 11 BTC ETFs approved, opening the floodgates.
In mid July, Ethereum-containing ETFs were finally approved for market trading. “We’ve now fully entered the ETF era of crypto. Investors can now access more than 70% of the liquid crypto asset market through low-cost ETPs,” said Matt Hougan, Chief Investment Officer at Bitwise.
There is a constant flow of news in the financial sector about crypto-related ETFs. Such extensive intersection of crypto and traditional finance is unprecedented.
At Gala, we’re not looking to make any predictions or speculations about token prices, and we’re not offering financial advice of any kind. We support the empowerment that comes with adoption of blockchain technology, regardless of how that empowerment interacts with markets. When we see the mainstream financial world (and its most trusted regulators) paying more attention to cryptocurrency, we recognize that global awareness of web3 is on the rise.
We encourage our readers to stay informed and try to keep up with the latest developments at the intersection of centralized and decentralized finance. Knowledge is empowerment, especially in the web3 world.
The intersection of ETFs and blockchain is a powerful indicator of how traditional finance and emerging technologies are beginning to converge. As we look to the future, ETFs could very well be the key that unlocks widespread adoption of Web3 technologies. At Gala, we are excited to be part of this journey and are committed to leading the charge in integrating these financial innovations into our ecosystem.
Recent studies show that over 90% of users are using mobile phones to access the internet. As phones have been streamlined for on-the-go media playback and mobile apps have been created to increase the convenience and accessibility of nearly every type of resource, “phone as computer” is a concept that is overtaking more traditional computation methods.
We still refer to these devices as smart “phones,” but it won’t be long before these devices have entirely left the limiting realm of anything that can be classified as a phone. In fact, the concept of telephone will soon be a relic of the past, with modern communication devices barely resembling the original apparatus patented by Alexander Graham Bell in 1876.
Several years ago, the earliest web3 pioneers liked to speculate about what mass adoption would look like. For fans of cryptocurrency, NFTs and decentralized ecosystems like Gala, mass adoption was one of the hottest phrases around, a constant topic of discussion.
Most of those early adopters considered that worldwide acceptance of web3 tech would involve some kind of overthrow of the web2 era, replacing the social-focused platforms the world had come to know with less centralized and more sustainable alternatives that allowed users greater control over their data. I wonder how many of them could have predicted that the rise of The Open Network (TON) would be so closely connected to one of the most widely used social messaging platforms in the world.
There’s no denying that The Open Network (TON) has taken huge strides toward mass adoption of web3 on multiple levels. Gala users have already seen multiple examples of it in the recent release of our first wave of mini app “tapper” games, Treasure Tapper and Music Miner, both playable now with a Telegram account. Rewards in these casual Telegram games will eventually amount to $TREZ, the tapper token of Gala Games, which will be issued on both TON and GalaChain and bridgeable from one to the other.
The combination of Telegram’s powerhouse widely used social messaging platform, TON’s speed and scalability as a blockchain, and Telegram’s mini app infrastructure makes it possible for an entirely new generation of highly accessible web3 tools to hit the scene. It would seem that Telegram finally cracked the code of comfortably onboarding web2 users to web3 technology, and every effective web3 community stands to benefit.
The Universal Basic Smartphone
The upcoming web3 smartphone (UBS) that has everyone talking was created by Oyster Labs (not directly affiliated with the TON Foundation). It can currently be preordered for $130 through their website, with estimated delivery in September of this year.
WEN PHONE, WEN PHONE!
We're one step closer to the final shipment! Building a Web3 phone isn't an easy task, and we are incredibly grateful to have the support of such a dedicated community like ours. Your enthusiasm and encouragement have been instrumental in getting us to this… https://t.co/42vmiTfREE
— Oyster Labs: Universal Basic Smartphone (@oysterecosystem) August 1, 2024
According to the front page of Oyster Labs’ UBS site, “Universal Basic Smartphone(UBS) is creating an equitable digital economy where everyone is fairly compensated for their data. In the era of AI, while we have little control over what happens to the data we produce, companies profit from it for free. UBS gives you the power to control and benefit from your data to build a future where everyone gets a share. UBS believes in a digital economy that gives back to those who participate.”
In addition to its Android 10 OS and other standard smartphone features that make it comparable to many phones on the market today, this unique “powered by blockchain” smartphone aims to bring a new level of web3 interaction to a massive new group of mobile users worldwide.
With the highly scalable TON blockchain’s ability to handle large volume transactions per second (TPS) and the potential for notable partnerships, this groundbreaking phone could become a cornerstone of the mass adoption we’ve all been waiting for.
Built-In Web3 with TON
Preordering a UBS involves connecting a non-custodial TON blockchain wallet, establishing the intrinsic web3 connection at the core of this device. Owners will have seamless access to hundreds of mobile dApps from the TON ecosystem in addition to the full range of mainstream Android apps.
Rewards from the Start
IN classic web3 fashion, Oyster Labs is offering a plethora of enticing reward opportunities even before the first UBS are delivered to pre-orderers.
$OYS Tokens – Oyster Labs is offering free $OYS* tokens as a benefit to pre-ordering the UBS. In the initial “Founding” series, 1000 $OYS was given for each pre-order. The presale is currently in its 2nd series, “Friend With Benefits” (FWB), gaining 300 $OYS for pre-order. Additional $OYS can also be picked up by referring others to pre-purchase the phone. *$OYS is currently tracked as a reward point system, not yet listed on any markets or minted on TON.
OysterEarn – Owners of the UBS will enjoy cashback benefits from both web2 and web3 companies
Genesis Pass – Preorder of the UBS comes with a special Genesis Pass and the opportunity to “claim daily data dividends and more.”
Learn More about UBS
This article is merely reporting and speculating on publicly available information, and does not indicate any sort of partnership or endorsement of The Open Network, Oyster Labs, Telegram or any other entity mentioned in this article.
We encourage our readers to do their own research in all aspects of web3.
