Archives July 2022

Here’s Why More Bitcoin Mining Can Lead To Better Environment?

Willy Woo, a well-known expert on Bitcoin, addresses the claim that bitcoin is harmful to the environment. He claims that BTC mining would be a crucial part of a shift towards renewables.
He also revealed that BTC miners will need to use more energy than they consume to have a meaningful effect on the transition to renewables.

Bitcoin Mining: Environmental Controversy

Willy woo’s tweet was a response to a thread from Daniel Batten, another Bitcoin influencer. Batten believes that criticisms of Bitcoin mining’s effect on the environment stem from the misconception that more energy consumption is bad and less is good.

Batten states that any scalable, renewable shift must generate at least three times as much power. Batten introduces demand response, which is a concept that allows consumers to be more flexible with their energy use by adapting their needs. According to the IEA, achieving net zero would require ten times more demand response.

Batten believes grid operators need more customers who can adapt to changing demands and be flexible. This is what he believes bitcoin mining fulfills. Batten mentioned the Texas Winter Storm and Summer Peak Demand instances, where BTC miners were forced to shut down their operations by grid operators.

BTC Mining Progress Towards Renewables

According to the second quarter survey by bitcoin mining council, the sustainable electricity mix for BTC mining is 59.5%. It is the fifth consecutive year that BTC mining has been dependent upon renewables for more than 50% of its power.

MicroStrategy CEO Michael Saylor stated that there is no industry that is more efficient or cleaner than MicroStrategy. Elon Musk, who recently suspended BTC payments from Tesla also stated that bitcoin’s energy source had made significant progress towards renewables. Tesla may therefore resume BTC payments.

Bitcoin’s Correlation with Nasdaq Keeps Increasing; Here’s Why It’s Bad News

A chart created by Dominic Chu of CNBC shows that Bitcoin’s correlation to Invesco QQQ (a popular ETF that tracks the tech-heavy Nasdaq 100 Index) has reached a score of 0.894. This is the highest score in almost three years.
It is important to note that 1 would indicate an exact correlation.

The fact that the flagship cryptocurrency trades almost as a stock in tech stocks undermines the ‘inflation-hedging’ narrative that helped propel the asset to record highs last year.

Bitcoin is now being seen as a speculative investment, rather than a legitimate store-of-value. This is a complete contradiction to the claims made by those who marketed Bitcoin as a revolutionary asset.

Tech stocks were also affected by the cryptocurrency’s massive plunge. Recent losses of 22.4% in value have seen the Nasdaq Composite suffer its worst quarter since 2008. Bitcoin has recently posted its worst quarterly performance in over a year after it collapsed by 58%.

The graph above shows that convergence with the Nasdaq began rapidly increasing after institutional investors bought into the ‘inflation-hedge’ narrative following unprecedented monetary support by the U.S. Federal Reserve.

The double whammy between the ominous technical signs, and the unfavorable macro background is expected to cause Bitcoin’s price to continue falling.

It is widely believed that the Fed will announce another jumbo rate increase this month, following the surprise jobs report. This should reduce unfounded recession fears.

Crypto exchange CoinFlex says Roger Ver – aka ‘bitcoin Jesus’ – is behind the underwater account that forced it to halt customer withdrawa

CoinFlex stated that Roger Ver, a long-time Bitcoin evangelist, is the high-profile investor that has a negative balance on the crypto exchange.

Ver, also known as “bitcoin Jesus”, has denied any owing the exchange anything. Yesterday, Ver tweeted that CoinFlex actually owes Ver money. Coinflex stopped customer withdrawals because of issues related to a large account with a negative balance.

“Recently, there have been rumors that I default on a debt to a contra-party,” Ver wrote shortly after CoinFlex announced it would issuing recovery tokens. This was an attempt by the exchange, to resume customer withdrawals, after a high integrity’ investor ran out of money. “I do not owe any debt to this counter party, but the counter-party owes me a significant sum of money and I am seeking my return.”

Ver Rumors began when a Twitter user claimed that a “verified insider” had revealed that Ver was the owner the indebted accounts, Ethereum World News reported.

Lamb tweeted a reply less than an hour later, reinforcing the identity of Ver. Lamb stated that he is not claiming that the debt is his. Therefore, he tweeted a response less than an hour later.

Ver is a vocal supporter of cryptocurrency and bitcoin in general. Ver would be one of many prominent holders who will be affected by the latest market stumble. Cryptocurrency investors are struggling to stay afloat amid a long-running selloff.

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