Category Archives: Bitcoin
Sunday Digest: Bitcoin Price Crash and Other News – Bitcoinist
Its been hard to avoid the coronavirus this week, at least in the news, as the US confirmed its first death this morning. If it turns into an all-out pandemic, youll be glad that you sealed yourself away and stocked up on bitcoin you did do that, right?
What can be said? Not a great week for bitcoin price at the risk of stating the obvious. So how did it play out?
After gains last weekend, Monday trading saw these wiped out after $10k was rejected again. Analysts predicted a pullback, and price continued to fall on Tuesday, breaking $9.5k, with some expecting a drop to as low as $8,300.
Krakens Director of Business Development, Dan Held, remained bullish, however, believing that bitcoin could be on the edge of a super-cycle that would quickly take it to $100k and beyond. Meanwhile, a cash crunch in Lebanon propelled bitcoin price to an inflated $15k between local peer to peer sellers.
However, on global markets losses continued into Wednesday, breaking $9k support, and also dragging down most altcoins, and threatening to wipe out the years gains so far.
Stock to Flow proponent, PlanB, predicted that bitcoin would not fall below $8,200 during this crash, and we all hoped he was right, although prices didnt seem to stop falling during early trading on Thursday.
Thankfully bitcoin did then find some support at $8,600, bouncing up as high as $8,900, before tailing off again on Friday. This time solid support was found at $8.5k, and the price has been trading in a range between this level and $8,800 ever since.
However, at a macro level, there are concerns that bitcoin is still in a bear market. Certainly, the bulls must defend key levels to stem the recent flow.
The Bank of Englands chief cashier voiced her support for a Central Bank Digital Currency this week, saying that governments must act fast to avoid losing out to tech giants such as Facebooks Libra.
Meanwhile, Chinas proposed CBDC faced delays due to the coronavirus outbreak, although officials were still aiming to launch a pilot in 2020.
Although Canada has decided that it doesnt need a CBDC at the moment, it has put in place a blueprint for one, just in case.
YouTube continued its assault on channels related to cryptocurrency, this week suspending Ivan on Tech until after the May halving event.
Craig Wright faces more questions about the purported Tulip Trust and Bonded Courier, as the estate of Dave Kleiman wants to expose what it says are just more lies. Meanwhile, Binance CEO, CZ, called Wright a fraud in no uncertain terms earlier in the week.
Amid major losses for Ethereum this week, the community also came to blows over the approval of a controversial change to its mining algorithm. The Programmatic Proof of Work (ProgPoW) algorithm is supposed to reduce the advantage of ASIC hardware but caused a big discussion online as to its implications.
Exchanges OKEx and Bitfinex were both hit by DDoS attacks this week, with OKEx CEO Jay Hao offering a bounty for information on the attackers.
Bitfinex claims that it has repaid $100 million of the $700 million it borrowed from Tether last year. And Paolo Ardoino, CTO of Bitfinex & Tether, will be speaking at the Digital Asset Summit next month, marking the first time that a Bitfinex/Tether exec has spoken at an industry event.
The SEC denied Wilshere-Phoenixs application for a Bitcoin ETF, which was disappointing, but not entirely unexpected given its track record.
Warren Buffett appeared on CNBC this week, telling the world once again that he will never own cryptocurrency.
This caused Justin Sun, who Buffett said was very polite at their recent charity lunch date, to call foul play. After all, the joy of blockchain meant that he could show the bitcoin and Tron he gifted Buffett at the dinner had not been moved.
To which, Buffett responded that he had given the phone away on which Sun had loaded the wallets to his favored Glide charity.
Surely its time to stop trying to teach the old dog new tricks already.
What was your favorite bitcoin or crypto story of this week? Let us know in the comments below!
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Sunday Digest: Bitcoin Price Crash and Other News - Bitcoinist
Bitcoin Price Analysis: BTC/USD recovery picks up the pace above $8,600 – FXStreet
Bitcoin price is having a positive start to the weeks trading. The Asian session on Monday is characterized by increased buying entries amid the building bullish momentum. BTC/USD is up a subtle 1% while trading at $8,614. Bitcoin price has advanced upwards from an opening price of $8,525.75 although it also recorded an intraday low of $8,485.52.
The daily chart shows Bitcoin trading under the moving averages where the 200-daySMA is limiting upward movements at $8,760.46 and the 50-day SMA holding the ground at $9,276. The 61.8% Fibonacci level of the last swing high at $10,537 to a swing low of $6,438.93 will also cap gains towards $9,000.
Technically examining the BTC/USD daily chart, while the digital asset downside is strongly protected, upward movements remain to be limited. Therefore, formidable direction the price will is likely sideways. The RSI, for instance, is at 37.93 with gradual movement towards 50 (the average zone).
According to confluence levels, Bitcoin first support is seen at $8,533 highlighted by the Bollinger Band 15-minutes lower curve and the previous low 1-hour. The second support also major support is $8,444.57 where the previous low 4-hour, Bollinger Band 1-hour lower and the Bollinger Band 4-hour lower curve converge. Other minor support areas include $8,355, $8,266 and $8,087.
On the upside, initial resistance is holding the ground at $8,623 as shown by the SMA 100 15-mins, previous high 1-hour and the Bollinger Band 1-hour middle. The next hurdle likely to give the bulls a hard time in the journey to $9,000 is $8,979, $9,069 and $9,158.
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Bitcoin Price Analysis: BTC/USD recovery picks up the pace above $8,600 - FXStreet
Bitcoin Rallies After Biggest Weekly Drop Since November – CoinDesk – Coindesk
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Bitcoin (BTC) is flashing green on Monday, having suffered a double-digit price drop last week.
The top cryptocurrency is currently trading over $8,740, representing a 1.9 percent gain on a 24-hour basis, according to CoinDesks Bitcoin Price Index.
The news will be welcomed by bitcoin's bulls, as prices fell by 13 percent in the seven days to March 1, registering the biggest weekly loss since the third week of November. Back then, the cryptocurrency dropped by 18.7 percent over the same period.
Equity markets across the globe also fell sharply last week as investors shunned risk on fears the coronavirus pandemic will cause a serious slowdown in the global economy.
The S&P 500, Wall Streets benchmark stock index, fell for the seventh straight day on Friday. The sell-off wiped out five months of the rally from 2,855 to 3,393.Even so, the index outperformed bitcoin on a weekly basis with an 11 percent drop.
Despite last week's drop, bitcoin is still outperforming both gold and the S&P 500 on a year-to-date basis with 20 percent gains. Meanwhile, ethereums ether (ETH) token, the second-largest cryptocurrency by market value, has rallied 74 percent so far this year.
Liquidity source?
Bitcoin fell last week as investors liquidated their holdings to fund margin calls triggered by the stock market crash, according to billionaire investor and Galaxy Digital founder Micheal Novogratz.
A margin call occurs when the value of the investors leverage account drops below the minimum margin requirement. The investor is then required to bring in additional capital or securities to build back the account up to the minimum margin requirement.
Essentially, Novogratz thinks bitcoin served as a source of liquidity last week, having apparently found a role as a safe haven in January when prices rose by 30 percent amid the U.S. Iran tensions and the beginnings of the coronavirus outbreak in China.
Currently, there is no evidence to prove that margin call-related selling fueled bitcoins price drop. That possibility, however, cannot be ruled out altogether, as perceived safe havens like gold are often used as source of liquidity.
Gold, a classic anti-risk asset, fell by 4 percent last week also the biggest weekly loss since November reportedly due to margin calls.
At press time, the metal is changing hands at $1,610 per ounce up 3 percent from Fridays low of $1,563.
As bitcoin also gains ground, the bulls need a close above Sundays high to maintain the rally.
Daily chart
Bitcoin created a doji candle on Sunday, signaling seller exhaustion. A UTC close above Sundays high of $8,756 would validate the doji candle and confirm an end of the pullback from the recent highs above $10,500.
A bullish close could bring additional gains towards the former support-turned-resistance of the head-and-shoulders neckline at $9,500.
Alternatively, if prices find acceptance under Sundays low of $8,410, a bearish doji continuation pattern would be confirmed and a deeper drop to $8,213 (Feb. 24 low) and possibly to $8,000 may be seen.
Disclosure:The author holds no cryptocurrency at the time of writing
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
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Bitcoin Rallies After Biggest Weekly Drop Since November - CoinDesk - Coindesk
Bitcoin is Showing Early Signs of Fresh Rally, But 100 SMA is the Key – newsBTC
Bitcoin is likely forming a short term bottom near $8,400 against the US Dollar. However, BTC price must climb above the 100 hourly SMA and $8,800 to start a fresh increase.
This past week, we saw a steady decline below the $9,000 support in bitcoin against the US Dollar. BTC price made a couple of attempts to bounce back, but it failed and settled below the 100 hourly simple moving average.
On the downside, it seems like the price is finding a significant buying interest near the $9,500 and $9,400 levels. The recent low was formed near $8,403 and the price is currently correcting higher.
It is trading above the $8,450 and $8,500 levels. More importantly, there was a break above a key bearish trend line with resistance near $8,575 on the hourly chart of the BTC/USD pair. It has opened the doors for more gains above the $8,600 level.
Bitcoin Price
The pair is now trading near the 50% Fib retracement level of the recent decline from the $8,821 high to $8,403 low. On the upside, an initial resistance is seen near the $8,660 level and the 100 hourly simple moving average.
The 61.8% Fib retracement level of the recent decline from the $8,821 high to $8,403 low is also near the $8,660 level to prevent gains. If bitcoin price climbs above the $8,700 level and the 100 hourly SMA, there are chances of a decent upward move.
The next key resistance is near the $8,800 area, above which the bulls are likely to take control. In the stated bullish scenario, the price is likely to recover above $9,000 or even $9,200 in the coming sessions.
If bitcoin fails to climb above the $8,700 level or the 100 hourly SMA, there is a risk of another bearish reaction. On the downside, there are two key supports $8,500 and $8,400.
A downside break below the $8,403 low may perhaps lead the price towards the next set of important supports near $8,200 and $8,000 (as discussed in one of the analyses using the daily chart).
Technical indicators:
Hourly MACD The MACD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) The RSI for BTC/USD is back above the 50 level.
Major Support Levels $8,500 followed by $8,400.
Major Resistance Levels $8,700, $8,800 and $9,000.
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Bitcoin is Showing Early Signs of Fresh Rally, But 100 SMA is the Key - newsBTC
Past Fed rate cuts suggest Bitcoin is not a safe haven asset – Yahoo Finance
Bitcoin's performance during the past three interest rate cuts suggests that it is not a safe haven asset, The Block's research shows.
In 2019, the Federal Reserve Board (Fed) cut the interest rate three times, which currently sits at 175 bps. During the three cuts, bitcoin's price did not show any significant pick-up, the researchfound. On the contrary, its median return across 1-week, 1-month, and 3-month lag were -5.0%, -20.9%, -11.0%, respectively.
A common thesis for Bitcoin as a safe haven asset is that during macro volatility, Fed's action to step in and lower interest rates is a net positive on risk-assets and non-inflationary assets such as gold.
Therefore, as the marketanticipates another Fed rate cut, some analyst believes that bitcoin would see a rebound.
However, The Block's analysis suggests that rate cuts are not correlated to the bitcoin price movement. Hence it is not likely to rise during the next rate cut.
Recent macro volatilities precipitated first by the U.S. killing a major Iranian general then the global spread of Coronavirus has triggereda new round of discussion on whether Bitcoin has been accepted by investors as a safe haven asset.
However, similar to the U.S. stock market, bitcoin price has been on a downward trend in the latter half of February due to Coronavirus, currently sitting at around $8550.
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Past Fed rate cuts suggest Bitcoin is not a safe haven asset - Yahoo Finance
Bitcoin and Cryptos trying to create a Base – FXStreet
This weekend Cryptocurrencies descended slightly, although the major digital assets created a base. Bitcoin(+0.88%) respected its 8.500 support. Ethereum(+0.43%) did the same and is trading above its $216 level, after several attempts to break it. Ripple (-0.4%), lost its $0.236 level but it held above $0.229 most of the time. The best performers of the weekend were Bitcoin SV, with a 3.5 percent advance and Ethereum Classic, which moved up to $8.01, or 4.7 percent.
The Ethereum-based tokens move mostly up, with Link (+4.36%), HT(+10.88%), REP (+8.64%) and, notably, KNC (+32.65%) being the best performers among the top capitalized. Whereas, HEDG(-8.44%), SNX(-11.6%), DX(-18.16%) and MOF(-37.97%) were hit hard.
The market cap of the digital sector descended to $245,505 billion. However, right now, it is 0.59 percent higher than 24 hours ago, while the volume in the last 24H was $40.359 billion, well below the $76 billion experienced on Friday, although it is growing in the last 24H. Finally, Bitcoin dominance is kept at 64.03 percent.
JPMorgan published a report this week dealing with the issues digital assets face for mainstream adoption and also the viability of stablecoins and corporate coins such as Facebook's Libra. They note that libra-style stablecoins may fail during a short-term liquidity. They pointed out also that "A lack of short-term liquidity facilities, particularly those relatively insulated from market forces, introduces the risk that activity grows faster than the underlying base of currency can safely support." Thus, they think the regulatory compliance that would be required on stablecoins would be high. Source: JPMorgan Perspectives Report.
Bitcoin has tried to make a bottom this weekend. The price continues descending slightly but moved in a tight range between $8,800 and $8,500. The price today has made a bullish candle, after a couple of small bodies with lower wicks, in a kind of morning star reversal figure. Buyers are still weak, and BTC did still not managed to close above the mean-Bollinger line. The levels to observe are these two mentioned: $8,800 and $8,500.
Support
Pivot Point
Resistance
8,525
8,600
8,800
8,300
8,990
8,100
9,150
Ethereum is also making a bottoming figure with $216 as the support level. The price is making a slightly descending triangular formation or pennant. The last three candlesticks were bullish but with higher shadows, which means sellers stepped in at the top of them. Also, the price still moves in the lower channel of the Bollinger Bands. A strong close above $225 would change its short-term outlook. A break below $216 would be a victory for sellers.
Support
Pivot Point
Resistance
216.00
219.00
225.00
210.00
230.00
202.00
235.00
Ripple has made a triangular bottoming figure. The last hours the price has been retracing the large candlestick that pierced through $0.229. The current situation is still bearish since the price still moves below the mid-Bollinger line. The levels of interest are $0.229 to the downside and $0.236 to the upside.
Support
Pivot Point
Resistance
0.2230
0.2290
0.2360
0.2170
0.2400
0.2100
0.2460
Chainlink went up and almost touched the $4.4 level, to, then retrace and move towards $3.85, which supported it. In the last hours, Link made a bullish figure, and its price is trying to reach the higher channel of its Bollinger bands, while the MACD is close to making a bullish transition. We still think Link is bullish, and just dragged down by the current market mood.
Support
Pivot Point
Resistance
3.85
3.95
4.15
3.65
4.40
3.37
4.69
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Bitcoin and Cryptos trying to create a Base - FXStreet
Jimmy Nguyen: ‘There are real businesses, building real projects’ with Bitcoin SV – CoinGeek
CoinGeek London just wrapped up after two fast-paced, information-packed days of excitement surrounding Bitcoin and where the blockchain is headed. There is more development being done on the Bitcoin SV (BSV) blockchain than any other project, all with real-world solutions being offered. Becky Liggero-Fontana of CoinGeek met up with Bitcoin Association Founding President and CoinGeek London 2020 MC Jimmy Nguyen after the conference to talk about the successful event.
BSV is a new dawn, asserts Nguyen. It has been on a tortuous journey to correct mistakes found in other blockchain projects and offer the only real Bitcoin that meets Satoshis vision. With blockchains like BTC, capabilities that should have been included were omitted and projects refused to enable on-chain scaling, but BSV has been able to prove that Bitcoins original design was able to be followed without the need of introducing limitations.
Where BSV is able to shine, in addition to its unlimited scaling potential and fast network, is with development. CoinGeek London showed that there are real companies creating real projects with tangible solutions for the international business and consumer communities. These endeavors are being introduced in a constant stream, and new projects are always being created. This activity is leading to, and will continue to foster, greater innovation and adoption of BSV in everyday operations.
One of the biggest announcements that came during CoinGeek London, and which can ultimately benefit the entire healthcare system around the world, as that EHR Data and nChain are collaborating on an effort to digitize medical data. This is going to lead to the creation of the global electronic healthcare record (G-EHR), which will facilitate the sharing of data throughout the healthcare industry, while allowing patients to take ownership of their own data.
Another milestone for BSV, as well as the international community, was the announcement during CoinGeek London that UNISOT, a blockchain supply management company, has officially launched SeafoodChain. This is a solution that allows seafood to be tracked from sea to plate, according to UNISOT CEO Stephan Nilsson, and brings together all entities involved in the seafood industry to provide better transparency and trustworthiness over their operations.
In both of these examples, as Nguyen explains to Liggero, something remarkable and sustainable is happening. No longer will the industries maintain information in segregated data silos that are detrimental to the industries growth, and which make it more difficult for consumers to access reliable data. This makes operations more efficient, as well, helping the companies involved cut costs, while conducting their activities in a manner more conducive to positive business growth efforts.
Nguyen announced that the next CoinGeek conference has already been added to the schedule, continuing a trend of conferences that have become extremely popular and which help spread the word on how quickly BSV is developing. This next installment is going to be held in New York City, and the final details on when and where will be forthcoming in the near future.
New to Bitcoin? Check out CoinGeeksBitcoin for Beginnerssection, the ultimate resource guide to learn more about Bitcoinas originally envisioned by Satoshi Nakamotoand blockchain.
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Jimmy Nguyen: 'There are real businesses, building real projects' with Bitcoin SV - CoinGeek
This Bitcoin Technical Formation Makes $7,500 Likely in Short-Term: Trader – U.Today
The bitcoin price has been on a decline since February 24, falling by around 15 percent since. Traders foresee a drop off from an inverse head and shoulders (IHS) formation occurring for BTC in the near-term.
An IHS formation typically indicates a local bottom structure for an asset. When printed on a high time frame chart like a daily or a weekly chart, it often leads to an extended rally.
Bitcoin first saw an IHS formation validated on the daily chart by as early as January 6. Since then, within less than two months, the bitcoin price increased by around 43 percent to $10,500.
When an IHS formation plays out, the asset tends to decline substantially after setting a new high, pulling back from the right shoulder.
Due to the clear IHS structure, traders anticipate the bitcoin price to correct to at least $7,500 to $7,700 in the short-term.
A similar pattern played out in lower time frames in late 2018, when the bitcoin price pulled back to the $3,000s.
The bitcoin price broke out of an IHS formation, then proceeded to record a pullback in the short-term to a key support level.
Highly-regarded traders including Pierre and TraderSZ noted that the bitcoin price is likely to correct to the mid-$7,000 in the minimum as a consequence.
Throughout the last five days, the global financial market has seen a trend of investors frantically selling any type of high-risk asset in the midst of a coronavirus outbreak.
While the impact of macro events on the bitcoin price remains unclear, the sentiment around high-risk assets in general has declined significantly.
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In the medium-term, however, investors anticipate the bitcoin price to recover. The call for a strong rally for bitcoin by mid-2020 on platforms like Deribit is on the rise, indicating that traders remain optimistic heading into 20201.
Derivatives trader Tony Stewart said: Seeing buying of BTC calls on @DeribitExchange. 10k calls in 6/3 and 27/3 short term. Two way interest in March puts, but even some put buying is done at the same time as buying BTC, ie as a short-term hedge, so bullish. Most bullish of all June 32k calls, accumulation, +1k today.
The noticeable increase in calls for a firm bitcoin recovery by June suggest that investors expect the dominant cryptocurrency to begin rebounding after the block reward halving occurs in late April.
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This Bitcoin Technical Formation Makes $7,500 Likely in Short-Term: Trader - U.Today
Bitcoin Price Falls $1,400 in One Week Is the Bear Market Back? – Cointelegraph
This week the equity markets experienced their worst week in 12 years and as this meltdown took place the crypto market also took a hit.
Bitcoin (BTC) and the cryptocurrency market saw a significant selloff this week and this outcome is relatively reasonable given that people sell their assets out of fear of potential economic instability. Other safe-haven assets like gold and silver also saw a massive selloff on Friday.
Are the crypto markets going to find support in the coming weeks, or will we see a continued downtrend in momentum?
Crypto market daily performance. Source: Coin360
The price of Bitcoin found resistance at the $10,400 level, after which a test of the $9,400 support was heavily needed. The $9,400 level was unable to provide sustainable support and as the price fell through it this caused a significant selloff throughout the crypto market.
BTC USDT daily chart. Source: TradingView
The sell-off led to the next support area at $8,200-8,400 and many horizontal levels are lining up here, providing potential temporary support and space for a relief rally.
However, for the short term, many believe that the upwards momentum is out of the markets as the price of Bitcoin is making a lower low (a key indicator for downwards momentum) on the daily timeframe.
Does this mean that the entire crypto market will reverse course and enter a bearish trend? Not at all. The price of Bitcoin is still 27% higher as on the 1st of January, which makes Bitcoin one of the best-performing assets of the year.
BTC USD 1-week chart. Source: TradingView
The weekly chart is currently resting on an exciting MA (Moving Average), namely the 21-week MA. The previous bull cycle held this level as support towards the bull peak in December 2017, which makes this an interesting indicator for bulls to hold on to.
If the price could find support at this level, it could mean a continuation of bullish momentum in the coming period.
BTC USD 1-week chart. Source: TradingView
The weekly chart also clearly shows the massive selloff of the past week. However, its currently resting on potential support. Holding the green zone around $8,400 would line up with the 21-WMA and possibly grant a relief rally.
For sustained upwards momentum, its crucial that a breakthrough of the past high at $10,400 takes place but such a move could take some time. The market must find support before these levels can be targeted.
If Bitcoin price cant find support at $8,400, the next level to target is at $7,500-$7,700.
Total market capitalization cryptocurrency chart. Source: TradingView
The total market capitalization for cryptocurrencies was unable to break above $300 billion and also couldnt find support at $250 billion so further downwards momentum was expected.
Currently, an exciting level is approaching as the 21-WMA is also showing up on this chart. Through the whole bull cycle of 2016-2017, the 21-WMA granted support on the total market capitalization as a whole. Providing support in this area would give bulls arguments for upwards momentum.
Aside from the 21-WMA, a crucial horizontal level can be seen here. During 2018 and 2019, the market capitalization found support at the $225 billion level several times. Showing support here would grant potential upward continuation, as the total market capitalization had been making higher lows since the bottom in December 2018.
Total altcoin cryptocurrency market capitalization chart. Source: TradingView
The altcoin market capitalization shows a similar outlook as the rest of the market. There was a massive rejection at the horizontal level at $115 billion, through which the altcoins are searching for support also.
The next significant level is found around $73-$75 billion, which is similar to the $225 billion of total market capitalization. Since the bottom in December 2018, altcoins have been consistently made higher lows, warranting a new upwards trend to occur. Finding support around the $73 billion levels would warrant another higher low and potential continuation upwards.
If the scenario turned bullish, a relief rally towards $9,200-9,400 would be the first step. To do this, Bitcoin price needs to find support at $8,250-$8,400 in order to sustain some upwards momentum to retest previous support levels for resistance.
BTC USD 12-hour bullish scenario chart. Source: TradingView
The next important question investors will ask will be: Can Bitcoin price break through the resistance and continue its upward momentum? If the answer is no, a likely retest of the $8,200-$8,400 area is next to occur.
However, breaking the resistance around $9,200-$9,400 and making it support would open the door for a move to the next levels near the $10,400 highs of two weeks ago.
And finally, finding support around this area would confirm the 21-WMA to be supported again, which is a massive indicator for bull/bear momentum.
BTC USD 4-hour chart. Source: TradingView
Theres no clear guideline for a bearish scenario at this point, but the chart is showing several perspectives. What traders should look for are potential bearish retests. If the price of Bitcoin rallies upwards without any volume and rejects at $8,950 or even $9,175, a bearish retest is confirmed, and the price should trend further down.
If such a bearish retest occurs, the price will likely retest the support around $8,200-$8,400 one more time.
However, the more support gets tested, the weaker it becomes. Heavy retests of this support would typically induce further continuation downwards to $7,500-$7,700 as the next primary support after this zone.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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Bitcoin Price Falls $1,400 in One Week Is the Bear Market Back? - Cointelegraph
Peter Thiel-Backed Startup Says Texas Is the Best Place to Mine Bitcoin – Cointelegraph
Alex Liegl, CEO of Layer1 Technologies, a US-based Bitcoin (BTC) mining company that recently announced its intention to repatriate 30% of Bitcoins hash power by 2022, has described Texas as offering miners the cheapest power in the world, at scale.
Less than two weeks ago, Layer1 commenced mining operations at its facility in western Texas, bringing multiple 2.5-megawatt container rigs online.
Texas is the largest producer of wind power in the United States, outproducing the second, third, and fourth-largest producers combined. If Texas were an independent nation, it would be the worlds fifth-largest generator of wind power worldwide.
Despite the cheap electricity, many miners have avoided the Lone Star state due to its heat with temperatures regularly exceeding 90 degrees for half of each year. To combat the heat, Layer1s mining apparatus comprises 20-by-8 shipping containers filled with miners that are suspended in a non-conductive liquid.
If they were air-cooled, the processors would burn up," Liegl told Forbes.
During October 2019, Layer1 raised $50 million for its venture capital investors, led by Peter Thiel alongside Digital Currency Group and Shasta Ventures.
The cash infusion funded Layer1s acquisition of an electric substation capable of generating 100 megawatts situated on 30 acres in western Texas and rose the companys value to $200 million.
Layer1 also plans to take advantage of skyrocketing summer electricity prices and selling its power to the grid, with Liegl stating: We can stabilize the grid by selling capacity for curtailment at the push of a button.
During January, Whinstone, a subsidiary of Frankfurt-based mining company Northern Bitcoin, announced that it had inked partnerships with Japanese internet provider GMO and financial services company SBI to process transactions at its forthcoming facility in Rockdale, Texas.
Whinstones facility is slated to launch with a capacity of 300 megawatts, with the company to expand to 1 gigawatt before 2021.
When constructed, Whinstones facility will have three times the capacity as Bitmains mining site in Rockdale which is held to currently comprise the largest mining operation in the world.
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Peter Thiel-Backed Startup Says Texas Is the Best Place to Mine Bitcoin - Cointelegraph