Category Archives: Bitcoin
The Rise and Fall of a Bitcoin Mining Sensation – WIRED
It was 8:45 in the morning of June 13 when Bill Stewart, the CEO of Maine-based bitcoin mining business Dynamics Mining, received a call from one of his employees. He's like, Every machine inside of our facility in Brunswick [in Cumberland County, Maine] has been taken, Stewart says. That's crazy. I couldn't believe it.
He alerted personnel manning another mining facility, in nearby Lewiston [in Androscoggin County, Maine], and told them to be on their toes. He thought a burglar was at large. Stewart had a theory on who might have taken the machines: In those days he had been wrangling with a customer, Compass Mininga Delaware company that allowed people to buy mining machines and have them hosted in third-party facilities like Stewartsdue to a dispute over energy bills. Stewart thought Compass had to pay for them; Compass believed their contract said otherwise.
A few days earlier, Dynamics had sent Compass a termination letter demanding payment, and shortly thereafter had switched the companys machines off. Then, Compass Mining staffers had taken their equipment away from Brunswick, and they were about to enter the Lewiston plant to recover more machines. They're trying to get inside the building, Stewart says. And I'm telling my brother, who runs our security, Do not let them into the building. We're not ripping miners out of the wall. Do not let them inside.
In a lawsuit filed against Dynamics in the Delaware Court of Chancery on June 21, Compass Mining alleged that Stewart, having refused to foot the energy bill he was supposed to pay, had been holding this valuable equipment hostage to gain leverage in negotiations. The way Stewart tells it, he simply wanted the removal to happen in an orderly fashion as opposed to hastily and under cover of darkness. Whats more, he says, for a while he had considered continuing to host the machines on behalf of Compass customers, cutting out the middleman. Their customers were reaching out, saying, Hey, can we just mine directly with you? Stewart says. The reason that couldnt happen, Stewart says, is that Compass had not given its customers the identifying serial numbers of the machines they had bought, and there was no way for Stewart to know who owned what.
On July 5 the Court granted Compass request to get its machines back, but underlined that that should happen following a formal request to unmount and relocate the machines. Stewart says that during the removal, Compass team also grabbed one of Dynamics own serversthat is confirmed in an email by one of Compass lawyers to Stewart, mentioning how the server had been inadvertently scooped up and asking how to return it.
Our team is laser-focused on serving our clients, and will do so in accordance with the contracts we have in place with our service providers, and by resolving any disputes arising from a fundamental misunderstanding of these contracts in a court of law, Compass interim co-CEO Thomas Heller said in an email interview.
Even if Compass had prevailed, the optics of the row was terrible. Stewart had chronicled the dispute on Twitter as it played outaccusing Compass of owing him hundreds of thousands of dollars in energy bills, and of having essentially broken into Dynamics facilityand thundered at length against Compass in Twitter Spaces. After a vertiginous rise, Compass had spent the last few months in constant crisis mode, untilmere hours after Stewart had started tweeting about his early-morning showdown with the companyit decided to do away with its CEO. At the center of that crisis was Russias war with Ukraine, and a bespectacled, curly-haired cybersecurity entrepreneur called Omar Todd.
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The Rise and Fall of a Bitcoin Mining Sensation - WIRED
Historically accurate Bitcoin metric exits buy zone in ‘unprecedented’ 2022 bear market – Cointelegraph
Bitcoin (BTC) is enjoying what some are calling a "bear market rally" and has gained 20% in July, but price action is still confusing analysts.
As the July monthly close approaches, the Puell Multiple has left its bottom zone, leading to hopes that the worst of the losses may be in the past.
The Puell Multiple one of the best-known on-chain Bitcoin metrics. It measures the value of mined bitcoins on a given day compared to the value of those mined in the past 365 days.
The resulting multiple is used to determine whether a day's mined coins is particularly high or low relative to the year's average. From that, miner profitability can be inferred, along with more general conclusions about how overbought or oversold the market is.
After hitting levels which traditionally accompany macro price bottoms, the Puell Multiple is now aiming higher something traditionally seen at the start of macro price uptrends.
"Based on historical data, the breakout from this zone was accompanied by gaining bullish momentum in the price chart," Grizzly, a contributor at on-chain analytics platform CryptoQuant, wrote in one of the firm's "Quicktake" market updates on July 25.
The Multiple is not the only signal flashing green in current conditions. As Cointelegraph reported, accumulation trends among hodlers are also suggesting that the macro bottom is already in.
After its surprise relief bounce in the second half of this month, Bitcoin is now near its highest levels in six weeks and far from a new macro low.
Related:Bitcoin futures data shows 'improving' mood' despite -31% GBTC premium
As sentiment exits the "fear" zone, market watchers are pointing to unique phenomena which continue to make the 2022 bear market extremely difficult to predict with any certainty.
In another of its recent "Quicktake" research pieces, CryptoQuant noted that even price trendlines are not acting as normal this time around.
In particular, BTC/USD has crisscrossed its realized price level several times in recent weeks, something which did not occur in prior bear markets.
Realized price is the average at which the BTC supply last moved, and currently sits just below $22,000.
"The Realized Price has signaled the market bottoms in previous cycles," CryptoQuant explained.
Those conditions, as Cointelegraph reported, have come in the form of forty-year highs in inflation in the United States, rampant rate hikes by the Federal Reserve and most recently signals that the U.S. economy has entered a recession.
In addition to realized price, meanwhile, Bitcoin has formed an unusual relationship to its 200-week moving average (MA) this bear market.
While normally retaining it as support with brief dips below, BTC/USD managed to flip the 200-week MA to resistance for the first time in 2022. It currently sits at around $22,800, data from Cointelegraph Markets Pro and TradingView shows.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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Historically accurate Bitcoin metric exits buy zone in 'unprecedented' 2022 bear market - Cointelegraph
Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate to Start the Weekend Market Updates Bitcoin News – Bitcoin News
Following strong gains on Friday, bitcoin was consolidating under a key resistance level to start the weekend. Bulls opted to secure gains as price uncertainty heightened in crypto markets, which as of writing are down 1% on the day. Ethereum was also marginally lower in the session.
After strong gains on Friday, bitcoin (BTC) was trading marginally lower on Saturday, as prices fell below a key resistance point.
Following yesterdays high of $24,294.79, which saw prices briefly breakout of the ceiling at $24,200, BTC/USD dropped to a low of $23,481.17 earlier in the day.
This low comes as traders seemingly opted to take profits at this point of uncertainty, opposed to attempting to send prices even higher.
Looking at the chart, the resistance level of $24,200 came as another ceiling was hit, this time in the form of the 62 mark on the 14-day RSI (relative strength index).
Relative strength recently rose to its highest point since April 4, when BTC was trading above $43,000, however price momentum in this instance stalled, due to current market conditions.
Prior to todays price decline, bitcoin bulls were somewhat targeting the $25,000 mark, however in order to reach this, the RSI would need to move beyond 62.
Ethereum (ETH) was also lower in todays session, as recent bullish sentiment shifted slightly to the bearish side to start the weekend.
The worlds second-largest cryptocurrency was consolidating on Saturday, as prices fell to a low of $1,662.79.
Saturdays drop comes a day after ETH/USD failed to move beyond its long-term price ceiling of $1,780, which has been held since June 10.
This failure then led to a reentry from bears that smelled blood, and moved to pressure out earlier bulls from their positions.
As of writing, ETH is trading at $1,689.70, with the 14-day relative strength index tracking at 64.75, which is marginally below its own resistance level at 66.
Should bearish pressure persist in todays session, the next landing spot for prices could be a floor of $1,620.
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Will ethereum drop below $1,600 this weekend? Leave your thoughts in the comments below.
Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
This Week in Coins: Bitcoin and Ethereum See Continued Growth as Merge Looms – Decrypt
This week in coins. Illustration by Mitchell Preffer for Decrypt
Last weeks market-wide positive price action was sustained this week as leading cryptocurrencies continued making significant gains.
Bitcoin, as of this writing, had added 8.5% to its market value to sell for $24,214, and Ethereum fans enjoyed an even greater rally, with their favorite coin blowing up 12.5% to $1,714.
Much of the buzz around Ethereum is down to the fact the network is laying the groundwork for a major overhaulaka the mergewhen Ethereum will cut its energy consumption by 99.95% transitioning from a proof-of-work blockchain to a proof-of-stake model. A final testnet deployment called Goerli is expected to take place in early August before the network is ready to fully transition.
While Ethereum prepares for the big changes, Ethereum Classic is also blowing up. ETC is based on Ethereums original ledger, which includes an infamous $55 million DAO hack that was wiped from Ethereum by vote. The coin surged 52% this week to $40.
Ethereum Classics rally comes after crypto mining pool Antpool announced a $10 million investment to back projects built on Ethereum Classic, which will remain a proof-of-work blockchain after the Merge.
Other notable performances this week among the top 20 cryptocurrencies by market capitalization include Cardano (up 11% to $.53), Polkadot (up 20% to $8.64), Polygon (up 14% to $.94), and Uniswap (up 30% to $8.73).
On Monday, electric vehicle manufacturer Tesla reported holding $222 million in digital assets at the end of June in the companys Q2 filing with the U.S. Securities and Exchange Commission. Back in February 2021, the company invested $1.5 billion in Bitcoin. Last week, news broke that the company had sold 75% of its BTC, worth approximately $936 million. CEO Elon Musk said the sale was prompted by uncertainty over when China would lift COVID restrictions. Tesla currently has one factory in Shanghai.
The U.S. Commodity Futures Trading Commission is beefing up its technology team in preparation for a potential role as a leading overseer of crypto. Nothing is set in stone, but a bipartisan House bill, called the Responsible Financial Innovation Act, which is cosponsored by Senator Kirsten Gillibrand (D-NY) and Senator Cynthia Lummis (R-WY), would give the CFTC the reins on fungible digital assets which are not securities if passed.
On Tuesday, a bipartisan bill introduced by Senators Patrick Toomey (R-PA) and Kyrsten Sinema (D-AZ), called the Cryptocurrency Tax Fairness Act, would exempt tax reporting for crypto transactions of less than $50, or trades in which a person earns less than $50.
Over in Europe on Wednesday, the chair of the European Banking Authority, Jos Manuel Campa, said in an interview with the Financial Times that it wont be until at least 2025 when the regulator will know exactly which cryptocurrencies it will be charged with supervising.
One of the main difficulties the EBA is facing, said Campa, is a lack of crypto experts due to high demand across society. He ruled out the possibility of baiting them with lucrative salaries, saying it was not within the range of possible discussions between the EBA and the European Commission.
That same day, the U.S. Federal Reserve announced another interest rate hike of 75 basis points aimed at stemming rampant inflation.
Last month, in response to inflation readings from May, the Federal Reserve raised interest rates by 0.75%, the steepest hike since 1994. Crypto prices crashed heavily that week as investors dumped riskier assets, although this new hike seems to have had an adverse effect on Bitcoin: An hour after the announcement, Bitcoin had grown 3% while Ethereum had sunk 5%.
Finally, it appears the industry is still not completely clear of crypto winter. On Wednesday, Singaporean exchange Zipmex filed for bankruptcy protection against legal action from creditors. The news came just a week after the exchange announced it was pausing withdrawals.
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This Week in Coins: Bitcoin and Ethereum See Continued Growth as Merge Looms - Decrypt
Bitcoin: Buy the Dip? – The Motley Fool
The cryptocurrency market has fallen off a cliff since peaking at nearly $3 trillion last November, as the entire industry's value is below $1 trillion today (as of July 26). And Bitcoin (BTC -0.10%), the world's most valuable digital asset, hasn't fared well, either. The top crypto has shed 55% of its value in 2022 and now sports a total network value of $405 billion.
Inflation and recessionary fears are now consuming investors' minds, scaring them away from riskier assets. But with prices down so much this year, is now the time to buy Bitcoin?
On the heels of the Great Recession, Bitcoin was launched to the public in January 2009 by an anonymous founder, or founders, going by the name Satoshi Nakamoto. The goal was to create a global, decentralized, censorship-resistant form of money that isn't controlled by any single authority. With the incredible levels of government borrowing, money printing, and quantitative easing that were about to start happening in 2009, the motivation behind Bitcoin is obvious.
Bitcoin's most clear bull case rests on it becoming a legitimate store of value akin to "digital gold." The estimated value of all the physical gold on Earth is about $12.5 trillion, so if Bitcoin can one day account for even half of that, there is a tremendous upside. Moreover, compared to the precious metal, Bitcoin is superior because the crypto is easily divisible, portable, and transactable, characteristics gold doesn't possess.
And while many critics argue that Bitcoin hasn't been an effective inflation hedge recently, it's worthwhile to zoom out and focus on a longer time scale. Adopting this perspective paints a clear picture. Over the past five years, the price of an ounce of gold has increased 36%, while Bitcoin has soared 734%. So it's not hard to figure out that the latter has done an exceedingly better job at growing purchasing power, despite its gut-wrenching volatility.
Many proponents also believe that Bitcoin will take the role of a global reserve currency one day. This idea might seem farfetched in developed countries with robust financial systems and payments infrastructure, like the U.S., but it makes more sense in poorer nations. In Turkey or Venezuela, for example, countries that have experienced hyperinflation, citizens might opt to store their wealth and handle transactions in Bitcoin.
The potential for monster financial returns is definitely on the table when it comes to Bitcoin, but this possibility is not without risks. Government intervention immediately comes to mind. Last year, China effectively made it illegal to own or mine cryptocurrencies. Although other major economies follow the same path, here in the U.S., regulators are taking a more supportive approach. Both the Fed and S.E.C. chairs have publicly said that they don't intend to ban cryptocurrencies, a positive sign for the industry.
Then there's the unlikely threat of a network or protocol failure. Bitcoin has never been hacked, and it has continued to operate virtually uninterrupted over the past 13 and a half years. Plus, the longer the blockchain stays active, the more likely it is to continue running seamlessly well into the future. However, if quantum computing, an advanced type of technology, is introduced on a mass scale, it poses a challenge. Quantum computing could crack Bitcoin's encryption, which would allow malicious actors to steal crypto that isn't theirs, undermining the whole system.
And lastly, the most obvious risk that many people miss is quite simply that Bitcoin falls out of favor with the investment community, as well as the unbanked population that this cryptocurrency is trying to help. Only time will tell what happens in this regard, but with Bitcoin continuing to gain mainstream coverage and interest, as well as a growing set of financial tools and services for its use, it seems likely that people will keep focusing on it.
Investors are now better equipped to weigh both the pros and cons of investing in this exciting innovation known as Bitcoin. With the price drop this year, now might be a good time to allocate a small portion of a well-diversified portfolio to the world's top crypto.
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Bitcoin: Buy the Dip? - The Motley Fool
What happens when 21 million Bitcoin are fully mined? Expert answers – Cointelegraph
When the last Bitcoin (BTC) is finally mined, the livelihood of miners who rely on block rewards as a source of income will be affected. Despite this, the future of mining stays promising, according to an expert in the space.
In a Cointelegraph interview, Mohamed El Masri, the founder of mining solutions provider PermianChain, talked about new players jumping into mining, the future of mining and what happens to mine profitability after the 21 millionth BTC is minted.
El Masri highlighted that efficiency is a very important focus that new players in the space must take into consideration. Because mining profit depends on how efficient a mining operation is, the executive noted that efficiency brings the cost of energy down to a minimum.
When asked about the future of the mining space, the executive shared that its not always about profit. El Masri said that the future of the mining sector relies on what he described as the real Bitcoin miners who value solving blocks more than how much BTC they can convert into fiat currency. The executive noted that these types of miners will be the leading operators in the space. He explained that:
The executive also shared his predictions on what the industry will look like once the last BTC is mined. According to El Masri, when the time comes, a BTC mining business can still be profitable because transaction fees will replace block rewards as a source of revenue for miners. By then, the mining executive predicted that BTC would be worth $430,500 each.
Related: BTC mining costs reach 10-month lows as miners use more efficient rigs
El Masri explained that transaction fees will generate almost $3 billion in a year at this price point. He noted that there are also other growth drivers to consider, including layer2 improvements and energy efficiency enhancements.
In a panel hosted by Cointelegraph Research,Bitcoin mining experts shared how they prepare for the next Bitcoin halving. According to the panel, several possible moves exist, including planning for survival during the bear market and capitalizing on the bull market.
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What happens when 21 million Bitcoin are fully mined? Expert answers - Cointelegraph
Who Owns The Most Bitcoins? – Capital.com
Gold Bitcoin crypto currency on background of chart diagram. Photo: Parilov / Shutterstock.com
Bitcoin (BTC) is a pioneer of decentralised peer-to-peer payments and the largest cryptocurrency in the world valued at a market capitalisation of over $461 bn, as of 29 July 2022.
Bitcoins permissionless and censorship-resistant feature have drawn a multitude of early adopters to the cryptocurrency.
The number of active BTC-holding addresses have shot up from about 1,000 in July 2010 to over 900,000 as of late-July 2022, according to data from blockchain research firm Glassnode.
Who are the largest holders of bitcoin and how high is the concentration of bitcoin whales? Here we take a look who owns the most bitcoins.
Bitcoin is a peer-to-peer electronic cash system that allows its holders to make online payments directly from one party to another without going through a financial institution.
Bitcoins pseudonymous founder Satoshi Nakamoto released the Bitcoin whitepaper in October 2008. The first block on the Bitcoin network was mined in January 2009, which rewarded its miner with the first BTC.
New bitcoins are rewarded to miners who validate transactions and add the history of transactions to the public blockchain ledger.
We have proposed a system for electronic transactions without relying on trust, read the Bitcoin whitepaper.
The market capitalisation of BTC was over $457bn at prices of nearly $24,000 on 29 July 2022. BTCs market cap hit over $1.27tn at its peak in November 2021. In 2022, however, investor sentiment shifted, triggering a crypto winter, with BTC falling over 40%.
Bitcoin has a hard cap, which means that only a certain number of bitcoins can ever be mined. The maximum supply of bitcoin is capped at 21 million.
Furthermore, the emission rate of bitcoin is designed to reduce with time in a process known as halving. Halving events occur every 210,000 blocks, which is roughly every four years, upon which the mining rewards are cut into half.
The most recent halving event occurred in May 2021 when mining rewards dropped from 12.5 BTC a block to 6.25 BTC a block. The next halving event is expected to occur in 2024 after which BTC emissions will drop to 3.125 BTC a block.
As of 29 July 2022, over 19.1 million BTC has been mined representing 91% of maximum BTC supply, according to CoinMarketCap. Less than two million bitcoins are left to be mined. The last bitcoin is expected to be mined in the year 2140.
According to bitcoin-focused asset manager River Financial, Satoshi Nakamoto, the anonymous inventor of Bitcoin, is estimated to be the biggest bitcoin holder in possession of over one million BTC stored in roughly 22,00 addresses.
None of Nakamotos estimated BTC holdings have been moved besides a few test transactions, according to River Financial.
Looking at wallet address data compiled by BitInfoChart, the top holders of bitcoin were identified to be addresses linked to cryptocurrency exchanges Binance (BNB) and BitFinex.
The Binance wallet was the single richest address with 252,597 bitcoins worth over $6bn and representing 1.3% of the circulating BTC supply. The BitFinex wallet held about 0.9% of BTCs current circulating supply, as of 29 July 2022.
The third wealthiest bitcoin address holding 131,883 BTC on 29 July 2022 remained anonymous. It should be noted that while blockchain data is transparent and wallet balances are viewable to the public, the identity of a wallet address holder remains anonymous unless voluntarily disclosed.
There were multiple wallet addresses identified as those of crypto exchange on BitInfoCharts bitcoin address list. Binance, the worlds largest cryptocurrency exchange in terms of trading volume, had three wallets on the list.
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Several corporations have accumulated BTC over the years. US-based software company MicroStrategy (MSTR) is the worlds biggest publicly traded corporate owner of bitcoin with holdings of about 129,218 BTC, according to its Q1 2022 earnings report. MicroStrategys BTC holdings were worth over $3bn, as of 22 July 2022.
Tesla (TSLA) is also known to be a holder of bitcoin. However, the company announced on 20 July 2022 that it had sold 75% of its bitcoin holdings by the end of the second quarter of 2022.
The electric car maker did not disclose the amount of bitcoin it held. The company reported digital assets worth $218m, as of 30 June 2022, on its balance sheet, down from $1.26bn held on 31 March 2022.
Meanwhile, the total number of bitcoins held by early BTC adopter El Salvador was about 2,301, as of 15 June 2022, according to news agency Fortune.
For retail bitcoin holders, it might be useful to know who has the most bitcoins as wallets holding large quantities of BTC can have significant influence over its price.
These wallet addresses belonging to individuals or organisations are known as whale addresses and the holder is known as a whale.
Who are bitcoin whales? According to Binance Academy, a BTC whale should hold at least 1,000 BTC. There were 2,151 addresses holding more than 1,000 BTC each, as of 29 July 2022, data from blockchain research firm Messari showed.
It should be noted that BTC is more evenly distributed than other cryptocurrencies. According to crypto analytics site IntoTheBlock, BTCs concentration among large holders stood at 10% of its circulating supply.
In comparison, smart contract leader ETHs concentration among large holders stood at 41%. Ethereum sidechain Polygons MATIC had a large holder concentration of 86%. Memecoin DOGE had a 65% concentration of large holders, as of 29 July 2022.
The absence of venture capitalists, seed investors and initial coin offering, which is very common in the cryptocurrency sector today, has helped BTC maintain a low concentration of large holders.
However, the National Bureau Of Economic Research noted that the Bitcoin ecosystem is still dominated by large and concentrated players, be it large miners, Bitcoin holders or exchanges.
This inherent concentration makes Bitcoin susceptible to systemic risk and also implies that the majority of the gains from further adoption are likely to fall disproportionately to a small set of participants, the report added.
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The number of active BTC-holding addresses have shot up from about 1,000 in July 2010 to over 900,000 as of late-July 2022, according to data from blockchain research firm Glassnode.
Data from Messari showed about 67,443 wallet addresses held BTC worth over $1m each, as of 29 July 2022. At the current BTC price of about $24,000, you would need over 41 BTC to become a bitcoin millionaire.
Bitcoin has a hard cap which means that only a certain number of bitcoins can ever be mined. The maximum supply of bitcoin is capped at 21 million. As of 29 July 2022, over 19.1 million BTC has been mined representing 91% of maximum BTC supply.
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Who Owns The Most Bitcoins? - Capital.com
Will the Bitcoin mining industry collapse? Analysts explain why crisis is really opportunity – Cointelegraph
Bitcoin mining involves a delicate balance between multiple moving parts. Miners already have to face capital and operational costs, unexpected repairs, product shipping delays and unexpected regulation that can vary from country to country and in the case of the United States, from state to state. On top of that, they also had to contend with Bitcoins precipitous drop from $69,000 to $17,600.
Despite BTC price being 65% down from its all-time high, the general consensus among miners is to keep calm and carry on by just stacking sats, but that doesn't mean the market has reached a bottom just yet.
In an exclusive Bitcoin miners panel hosted by Cointelegraph, Luxor CEO Nick Hansen said, Theres going to definitely be a capital crunch in publicly listed companies or at least not even just publicly listed companies. Theres probably close to $4 billion worth of new ASICs that need to be paid for as they come out, and that capital is no longer available.
Hansen elaborated with:
When asked about future challenges and expectations for the Bitcoin mining industry, PRTI Inc. advisor Magdalena Gronowska said,One of the biggest challenges that weve had in this transition to a low-carbon economy and reducing GHG emissions has been an underinvestment in technology and infrastructure by the public and private sectors. What I think is really amazing about Bitcoin mining is that its really presenting a completely novel way to fund or subsidize that development of energy or waste management infrastructure. And that's a way thats beyond those traditional taxpayer or electricity ratepayer pathways because this way is based on a purely elegant system of economic incentives.
As the panel discussion shifted to the environmental impact of BTC mining and the widely held assumption that Bitcoins energy consumption is a threat to the planet, Blockware Solutions analyst Joe Burnett said:
According to Burnett, Bitcoin mining is a bounty to produce cheap energy, and this is good for all of humanity.
Related:Texas a Bitcoin hot spot even as heat waves affect crypto miners
Regarding Bitcoin mining dominance, the future of the industry and whether or not the growth of industrial mining could eventually lead to crypto mass adoption, Hashworks CEO Todd Esse said,I believe that most of the mining down the road will be held in the Middle East and North America, and to some extent Asia. Depending upon how much they are eventually able to cut off. And that really speaks to the availability of natural resources and the cost of power.
While it is easy to assume that growing synergy between big energy companies and Bitcoin mining would add validity to BTC as an investment asset and possibly facilitate its mass adoption, Hansen disagreed.
Hansen said:
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Disclaimer. Cointelegraph does not endorse any content of product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.
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Will the Bitcoin mining industry collapse? Analysts explain why crisis is really opportunity - Cointelegraph
I have Bitcoin for the benefit of my kids, says Gibraltar MP – Cointelegraph
Located in Europe, on the southern tip of Spain, the British Overseas Territory of Gibraltar is a bubbling hotbed of cryptocurrency adoption.
In an interview with Cointelegraph, Albert Isola, Minister for Digital and Financial Services for Her Majesty's Government of Gibraltar, explained the territory's approach to crypto and shed some light on his own investment interests.
Isola played a pivotal role in shepherding Gibraltars purpose-built distributed ledger technology (DLT) regulatory framework. However, hes also a Bitcoiner.
Speaking from the Ministerial offices in Gibraltar, he told Joe Hall I do have Bitcoin.He continued:
While spending Bitcoin(BTC)at one of the Costa Coffees that now accept Bitcoin in Gibraltar might not be his thing, he explained that adoption of Bitcoin is going to increase, as more and more jurisdictions begin to regulate it:
Gibraltar is an appealing regulatory jurisdiction for crypto companies. Since 2018, when distributed ledger technology (DLT) legislation came into force, more and more companies have considered the European territory. Obi Nwosu, co-founder and CEO of Fedi, told Cointelegraph, In the realms of regulated jurisdictions, Gibraltar has always been the most interesting. He brought Coinfloor (now CoinCorner) to Gibraltar four years ago, following the 2018 regulations.
Xapo, a Bitcoin-based private bank recently chose to open its international branch in Gibraltar. Its CEO Wences Casares is known as Patient Zero after orange-pilling Silicon Valley executives, while the Xapo offices are carved out of Gibraltars ancient military defenses. Moorish fortifications dating back to 711 the oldest ramparts in Gibraltar now defend the office wine cellar.
Indeed, despite a small population of 35,000, the territory packs a punch in the crypto space. Crypto companies such as Damex and Tap.global have or had a presence in the tiny land area. Plus, Mexican exchange Bitso partnered withGibraltar late last year to digitize government services.
Regulation is not a joke its partner style, Xapo chief technology officer Anouska Streets told Cointelegraph. Indeed, in recent months Gibraltar rolled out regulations to combat market abuse. Isola reinforced the point:
The government used the same stringent yet partnership-first process for the gaming space in 2014. Now around 75% of the United Kingdoms online gaming is done from Gibraltar, from around 15 businesses, Isola reported.
Related:Andorra green lights Bitcoin and blockchain with Digital Assets Act
2018 was the last Bitcoin and cryptocurrency space bear market in which the DLT regulation was fleshed out, and in the ensuing bull market of 2020 and 2021, Gibraltar reaped the rewards. In the 2022 bear market, or down time, as Isola delicately describes it, businesses in Gibraltar are very well placed to take advantage of the upside and at the same time manage themselves in the downtime:
While Bitcoin-backed businesses benefit from Gibraltars approach to regulation, in light of recent Bitcoin bear market rallies, Isola might be right in wishing to hold onto his Bitcoin for the next generation.
Cointelegraph visited Gibraltar to conduct the video interview which will contribute to Cointelegraphs media coverage on Youtube. Subscribe here.
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I have Bitcoin for the benefit of my kids, says Gibraltar MP - Cointelegraph
Sango – The First Digital Monetary System Built on Bitcoin Press release Bitcoin News – Bitcoin News
press release
PRESS RELEASE. Sango, the Central African Republics crypto-initiative, has set off a wave of excitement in the crypto space, fuelling curiosity and anticipation. Supported by a comprehensive Legal Framework, Sango will enable the creation of both the digital and physical infrastructure that would aid its development. SANGO will be partially backed by Bitcoin, meaning that will build up on an already existing strong foundation.
What does backed by Bitcoin really means?
Lets set things straight: SANGO, the coin of the Sango sidechain, will be fractionally backed by Bitcoin, which in simple terms means that the Central African Republic Treasury will consist of a Bitcoin reserve fund.
Historically speaking a countrys currency would be backed by reserves of gold, as has been the case until the Bretton Woods agreement. Bitcoin is also known as digital gold, being the best store of value within the blockchain space. Thus, Bitcoin is regarded as a highly valued commodity, and will be the store of intrinsic value for a currency. Also Sango will be pegged to Bitcoin, meaning that anyone will be able to operate with wrapped Bitcoin (s-BTC) in the Sango ecosystem.
As you might know, the 70s had brought the depegging of the US Dollar from gold, causing an infinite supply of money to be potentially printed if needed. Nevertheless, inflation had become a common problem plaguing traditional Fiat currencies. On the other hand, Bitcoin represents a decentralized currency, which is not bound to any central authority. Thus Bitcoin is the optimal solution for a digital store of value, allowing citizens to democratize money and currency.
Also backed by Bitcoin means that it will build on the strong technical foundation and the most secure and decentralized cryptocurrency network in the world.
Through its established reputation, secure blockchain, and public, unalterable ledger, a strong foundation is set for the Central African Republic in improving the lives of its citizens by enabling access to financial amenities and ensuring a fair and transparent distribution of wealth. In spite of how some people have seen the initiative, Sango will allow citizens to enjoy a modern and digital monetary system, with unbanked citizens gaining access to the global financial system.
Backed by the Central African Republic Government
According to President Faustin-Archange Touadra in the Sango Genesis event, the Sango Coin will be the currency for the next generation. This implied sense of confidence and assurance is an immediate result of its backed by Bitcoin element, which creates confidence and reliability within the initiative. If having the support of the President and Government was not sufficient, building on the foundation of Bitcoin offers endless benefits, mostly because of its decentralized nature and limited supply. These benefits include, partial decentralization and no risks of de-pegs, differentiating SANGO from stablecoins and CBDCs and ensuring that current monetary problems will be surpassed.
Its also been inferred that the population will have the most to gain with Bitcoin as the digital store of value behind SANGO. Citizens will be endowed with democratic control over the new digital monetary system, needing nothing more than a smartphone to make instant payments and receive money securely, finally removing the need of a traditional banking sector. There is already a wider vision behind SANGO, as the President puts it: a common cryptocurrency and an integrated capital market that could stimulate commerce and sustain growth.
In spite of its many detractors and doubters, SANGO has already attracted the attention of many important crypto figures, including CZ (Changpeng Zhao) and Michael Saylor, but also praise from other African countries exploring the possibilities of adopting a similar system.
It is clear that Sango has already produced a massive disruption, leading the way forward for further adoption of Bitcoin. It is a major step for cryptocurrencies, as they finally lead the way for a monetary revolution and allow people utmost control over their money.
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