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Bank Of America Analysts Slam Bitcoin: Buying 1 Btc Is ‘like Owning 60 Cars’

The year 2017 is considered to be the bitcoin condemnation period. Many analysts from Bank of America criticized BTC. It slammed bitcoin to be highly volatile and impractical. It is also known to be the asset that is disastrous. It is never considered as a wealth that can be stored or have an inflation hedge. The report also stated that cryptocurrency is not a viable method to make payments to people as it can only handle around 1400 transactions for every hour when compared to the transactions that are processed by visa. It can process around 230 million transactions.

There is a strong decision that is taken by the traditional financial institutions against this cryptocurrency. This decision would be in contrast to the decisions of the major banks such as Goldman Sachs and JPMorgan, which has considered bitcoin to be one of the assets. There is a notion that there are only 21 million bitcoins available globally. This is what will eventually result in the increase of the price of this cryptocurrency over a period of time. However, the price of bitcoin would be based on the supply and demand. It is clear that the supply of these coins would remain the same, but the demand for it would vary. This is what would be having a huge impact on the pricing. The author named Francisco Blanch has never considered the idea of bitcoin being a safe asset. This is categorized as an asset with a lot of risks though is not linked to inflation and would remain volatile. It is not possible for p people to store this as wealth.

The main thing that comes as an argument in bitcoin is not about diversification, stable returns, inflation protection, but it all about the appreciation of its price. The investors who have invested in this cryptocurrency are worried about the returns. When the track record of bitcoin is viewed for the past ten years, the price has been appreciated. This can dismiss all the annoying facts that are enveloping around it. When bitcoins are considered to be posing a negative impact, it poses threat to increase in the adoption from corporate and institutions. The shareholders are very conscious about the risks. The bitcoins will have a higher carbon footprint when compared to the human activities, like dollar to dollar flow. The energy usage by bitcoins has increased to 200% in the last two years in countries such as the Netherlands, Greece and Czech Republic.

There are many bitcoin miners who stated that mining of bitcoins would use only renewable sources of energy from 39% to 76%. The bitcoin mining would mostly happen in China where the electricity is produced by coal. Half of the mining happens in Xinjiang state of China where 80% of the power would be produced from coal. Increase in pricing would add up to the mining challenges, which adds a lot to the carbon output.

Investing around USD 1.2 billion in bitcoins would produce carbon emissions as produced by 1.2 million cars. The Tesla investment of USD 1.5 billion is equal to running 1.8 million petrol based cars.

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Crypto Facilities Gets FCA Nod to Set up Crypto Futures Venue

Crypto Facilities, which is a subsidiary firm of the popular Kraken Cryptocurrency exchange, recently announced that it had received the much-awaited MTF or Multilateral Trading Facility License. The MTF License is awarded by the United Kingdom’s Financial Conduct Authority or FCA. The MTFs function more or less like a stock exchange but are independent and conduct their own trading venue. The Multilateral Trading Facility uses advanced electronic systems like the stock exchange to function as it is a market built on securities. 

The Crypto Facilities has said that it is the first of its kind self-regulatory independent trading venue in Europe. It also added that the acquisition of license would now enable the company to add to its extensive list of products. However, Crypto Facilities did reiterate that it would ensure that all the regulatory parameters are strictly adhered to in the process. Conventionally, the MTF licenses are only issues to large investment banks or approved financial market operators with good standing in the market. It allows more participation by the retail investors so that they can trade in the financial securities freely. 

The move by the FCA to provide the MTF license to Crypto Facilities has enabled the latter to offer its services comprehensively to institutional clients. Getting access to trade in crypto derivatives for constrained investors and retail traders in Europe wasn’t possible earlier. The CEO and co-founder of Kraken Cryptocurrency Exchange, Jesse Powell, said that getting the MTF license would help the constrained investors to trade comfortably on the venue that is regulated and offers them flexible trading options. 

Jesse also said that the only reason why Kraken engaged in extensive efforts to acquire MTF license is to ensure that the company is able to enhance its outreach. In the booming crypto market, it is essential to ensure that more and more people can get access to crypto, and it is what Multilateral Trading Facility will do. The approval for MTF license for the Crypto Facilities by FCA came just a few days after it engaged in a massive cryptocurrency study. The study has revealed that all of the United Kingdom’s citizens having cryptocurrency like bitcoin era as investments have increased drastically in the last couple of years and the number is steadily increasing. 

One other reason why many institutional investors, as well as regulated institutions, prefer the Multilateral Trading Facility is because it offers them a level playing field for all the market participants without any added or undue advantage to any particular investor. There is absolutely no discrimination among the members of the platform, and there is a transparent process through which the buyers are matched with the sellers. The user is only able to buy on the platform at the fixed price when there is a sell order for the same price is available. 

One other reason why the investors so highly trust the MTFs is that they are European Union’s Markets follow the Financial Instrument Directive II. The directive is not only aimed at boosting the competition in the crypto market but also to provide investors with an enhanced level of protection. 

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Bitcoin could be the next big inflation hedge

Since its inception as a virtual currency, Bitcoin has taken the market to a storm which is still not over. Over the period the users of bitcoin as a virtual currency are increased in which big names are also added now. Many high profile investors are now betting on Bitcoin as the new option to hedge against inflation. Earlier, people considered safe assets like Gold when it comes to handling volatility in the markets. As the COVID19 pandemic has caused a lot of economic turmoil across the world, various governments and central banks have announced stimulus to revive the economy. In this situation, inflation is all set to go up shortly as the asset value of the currency is decreased by too much stimulus. In this situation, Bitcoin can offer some relief as it is on a rising trend for many years.

Bitcoin turning into a safe asset

The coronavirus pandemic has resulted in lots of job loss, and the economy is not showing any positive signs in the near future. The interest rates are going to remain near 0% till 2022 according to central bank reports. This has led to a huge surge in Bitcoin prices in the last few weeks. Recently, it crossed the crucial $10000 mark, which showed how much confidence investors have on this asset.

Crypto markets becoming user friendly

Earlier, it was not so easy to access the cryptocurrency markets in different regions of the world. The charges were on the higher side, and investors did not have much knowledge about this asset class. However, the modern-day investor is savvy enough to use Bitcoins for various transactions. Apart from that, many investors are also using it as a hedge against inflation as this can secure their investments in times of volatility.

The trend with investing in cryptocurrency is going to last for a long time, considering the weakening economic system around the world. With the crypto market becoming easier than before, more and more investors are now keen to invest in Bitcoin for various reasons. As other asset classes have become volatile, they are trying to hedge the currency positions by investing some money in Bitcoin. Apart from that, many exchanges are offering bitcoins for trading along with other currencies. In this way, users can hedge their positions with Bitcoins and combine their investments with other currencies in the same account.

Ethereum Could Go To $10k In 2021 And Outperform Bitcoin, Says Veteran Trader

The crypto world has left everyone amazed at understanding the volatility of it. We have seen a huge steep in the prices beginning from this year, i.e. January 2021. As per benzinga.com bitcoin’s market capital remain number 1 till April 2021. But, at the very beginning of May this year, Ethereum crossed the market capital of the Bank of America (BOA). Isn’t it a great achievement? The price of Ethereum was almost 2000 dollars per coin at the beginning of April, which became around 3000 dollars within 28 days. This hike in price was observed by a veteran trader named Melker. He told that the price of Bitcoin consolidation would be an opportunity for the second-largest cryptocurrency to take a bullish ride over it. He felt positive towards the price increase and told that it will beat Bitcoin’s price hike at least in a short-term period. This became true as ETH’s daily transaction became double that of BTC in the 1st week of May.

He gave an insight into his investing strategy by explaining how he was largely shifting his strategy of dollar-cost averaging from Bitcoin to Ethereum in the last couple of months. Isn’t it obvious to look at the growth of ETH and invest in it? He even quoted that “It’s like investing in the internet in the early 1990s to me”.  The growth of ETH in recent days has given its holders a faith and stood on the trust they up-hold on it. But the main concern that is yet to be answered is, will Ethereum cross the mark of $10k in 2021 and outperform Bitcoin in the short-term race? The answer could be positive. Looking at the current growth of Ethereum, it may surpass the $10k milestone sooner than that of BTC. It took Bitcoin almost a decade to cross this milestone, whereas Ethereum’s current growth rate is promising it to complete within 5 years. The reason behind the growth of this coin’s market capitalization is its development process. The ALT season is here (quoting veteran trader). People tend to invest in the DeFi coins more than other coins.

Every single day, there is a new coin emerging in the crypto world with a vision, many coins are made from ETH. The recent announcement of launching ETH 2.0 brought people in a dilemma to either hold up on ETH or switch to ETH 2.0, as ETH 2.0 will not allow any withdrawals till 2022. This is just the beginning, Ethereum developers have announced the self-destruction protocol from June 2021, and this will make the coin more valuable and clean up the wallets even more. The price hike of BTC was because of its supply and demand, as the total number of BTC coin that will be circulating is only 21M, people tend to take it as a more valuable asset. But looking at the development of ETH, BTC may not remain the spot-light in the crypto world for long. The circulation supply for ETH is almost 100M. Looks like the $10k milestone is not so far from where we are today.

Bitcoin Relief Rally Is Underway — Can Btc Price Reclaim $18k?

In the past week, a major drop came at the Bitcoin price wherein it fell to $16,000 from $19,500. No smooth corrections might occur since dropdowns are not certain and often occur suddenly. Not much difference is present in the past correction as dropdown came within a few hours. After that, a consolidation of about more than $16,000 came in the Bitcoin price that left a temporary mark. Now, a major query exists regarding the correction, whether it still prevails or ends!

An important factor that might help decide whether it is possible to reclaim the Bitcoin price’s vital levels. And such levels refer to the areas that will lead to further supporting a momentum going upward.

With the daily chart, a wide support layer prevailed around the area of $16,000. No doubt, the bitcoin price lost when it failed the trend going upward for low intervals. As a result, multiple liquidation chains of reaction came into existence. Within no time, the chain reaction resulted in lowering the price in a downward direction.

Frequently, the price for BTC took an upward staircase with a downside elevator. With this thing’s occurrence, a change like holding up the vital levels of support in the daily interval period. With this, the layer build-up all over $16,000 turns out to be a massive one to keep on hold.

A break over $18,000 is vital for Bitcoin to cover up momentum:

In the hourly chart, one can get a clear view of the situation. It shows a breakdown that occurs from the level of $18,000 support zone. As a result, it made the chain reaction take a movement in the downward flow.

Though, vital levels of resistance came in the lower signal time-frame within the correction phase, ranging at $18,000. With a subsequent drop of Bitcoin price at the support area of $17,200, it results in an upward bouncing movement. But it failed in breaking the area for $18,000.

With the $18,000 breaking failure, it leads a way to establish an area of resistance. It is important that this resistance zone breaks the phase of bullish momentum sustainability and comes back on a time frame with a lower interval.

Another hurdle stopping the way is searching out for the $18,600 zone that missed support in the past run-up phase.

The total capitalization of the market is comfortable to face further downsides:

The total capitalization of markets daily chart points towards a breakdown that might be apparent since a significant drop came in the total market capitalization after it came to the level of 1.618 Fibonacci.

Though, one bullish thing is about the upcoming of newer higher highs. Not only this, but it also includes a breakout phase that ranges above $400 billion zones of resistance.

There wasn’t any confirmation using a retest upon the $400 billion massive resistance zones within this ongoing run-up phase. Considering this, it might be worth looking upon a correction further on $400 billion to confirm the past resistance zone for enhanced support.

What might be bitcoin’s current scenario?

In the current time, a likely bitcoin scenario might be better to go with a relief rally revolving around $18,000 -$18,500. In the described scenario, a vital phase for the breaker is about $18,000 to $18,500.

With any break in the area of $18,000 – $18,500, a rally further sustainable for all the highs is a likely result. If there’s a break in the zone, a new range might occur.

In this range, it might occur from $16,000 – $18,000. For the new lower high confirmation, a resistance range will turn out to be $18,000. With the lower highs, it represents the trend going downward.

In this context, it doesn’t seem likely to correct $14,000. It was a high earlier in 2019 and might even warrant a wider flip of resistance or support in the crypto markets.

If the price of Bitcoin reaches more than $14,000, it might result in calling the rally with a steady rise in the Bitcoin price ranging above $30,000.

Elon Musk Curious If Converting Tesla’s Balance Sheet To Bitcoin Is ‘Even Possible’

Elon Musk is a South African-born American businessman who is the co-founder of the PayPal digital payment company and developed SpaceX, a release vehicle and spacecraft manufacturer. He had been one of the first largest shareholders in the electric vehicle maker Tesla, and also is the CEO. In the year 2004, Elon Musk became one of the main donors of Tesla Motors, later was named as Tesla, an electric vehicle corporation established by pioneers Martin Eberhard and Marc Tarpenning.

Musk has long been concerned in the possibility of electric vehicles. Elon Musk has shown a lot of interest in the cryptocurrency world. It also happened when Elon Musk claimed that the system of Mars would operate on cryptocurrencies. He claimed earlier this month that he really is “extremely confident” that “around 6 years from the present” his Spacex corporation would place humankind on Mars. Again, his mention of cryptocurrencies drew fraudsters who tried to blackmail his crypto supporters through emulating his username as well as profile picture and asking for individuals to submit an encrypted address to btc. Now that you know the person and a bit on his interests towards the crypto realm, let’s get into the main topic you are here for.

Elon Musk Concerns for translating Bitcoins to Larger Payments

As per a Twitter conversation with Musk and a very popular advocate for the virtual money, Elon Musk on Sunday inquired about the prospect of turning ‘big transfers’ of Tesla Inc balance sheet to btc. By turning the automaker’s balance sheet to Cryptocurrency, Tesla Corporation CEO Elon Musk can do his investors a 100 billion USD favour, Michael Saylor, his MicroStrategy Inc equivalent, said.

In reply to Musk taking a jab at the bitcoin pinnacle on Sunday, Saylor made his remarks. Musk inquired whether such large transactions are even plausible or not. In addition, Saylor agreed to give his “playbook” with the CEO of the company, claiming that over the last few months, he had bought over 1.3 USD billion in Bitcoins. The only stipulation? Only being offline, Saylor can only disclose those details. The rise of Bitcoin to new highs has buyers scrambling for the political rallies visibility — even though it implies paying a large premium.

The frenzy upped the cost of the Bitwise 10 Crypto Index Fund quite enough as 650 percent above the valuation of its shares as the leading crypto catapulted above $23,000 for the very first moment this week. Tesla, scheduled to begin operating on Monday as just a part of the S&P 500 Index, this year could see an eight-fold increase.

Since contributing 140 billion USD to his 167 billion USD net worth, the increases pushed Musk’s entire assets, turning him into the second-richest guy on an international basis. At the period, Twitter said that it had policies in place banning such behavior and said it was “performance and sustainable to the emerging strategies of bad actors” to stop attacks on its website.

Why is it so Impactful?

A 425 billion USD acquisition of Bitcoins for Microstrategy previously in this year was supported by Coinbase, that applied after an IPO this week. During the month of December, MicroStrategy, headquartered in Virginia, received 550 million USD in debt to finance the acquisitions. A Citi researcher subsequently lowered the company, finding the concentration of Saylor on Bitcoin counterproductive.

Brian Armstrong, Chief executive of Coinbase, said late Sunday on Twitter, whether any organisation decided to keep cryptocurrencies on its income statement, Coinbase might support. This seems that more and more corporations are beginning to keep crypto as a buffer towards growth on the balance sheet. Elon was less than keen on Cryptocurrencies, even if that month the blockchain soared above the 23,000 USD level. Previously on Sunday with a post on Twitter, the billionaire founder triggered a 20 percent rise in prank cryptocurrencies Dogecoin.

Price Action

On last Friday, Tesla shares finished approximately 6 points greater at 695 USD and slipped almost 2.6 percent to 677 USD in the after hour trading. On the very same day, at 301.20 USD, MicroStrategy shares ended almost 1.1 percent more. BTC at press time exchanged 0.76 percentage points greater at 23,680.81 USD.

5 Signs That The Real Bitcoin Rally May Only Be Just Beginning

The BTC price has fallen substantially after the high price valued at $14,149 noticed ago. Irrespective of the falling price, five signs that portray a real bitcoin rally may begin soon. 

With the active Holding activities, the low interest of retail, high framework time for a breakout, and other indicators exist to suggest a more significant rally is just brewing. 

Breakout of a high time frame:

Bitcoin price came to a significant drop by 6% from the peak price and reached at $14,000. It is a level that hasn’t been seen in the Bitcoin years from 2017. Though, an exact time breakout is on monthly and weekly time frames. The candles got closer to around $13,000 that happened the first time within three years.

Low activity of Google Trends and social volume:

In the bull-running peak time, a skyrocket record was observed for the “Bitcoin keyword” as per the activity of Google Trends since the flood occurred with the retail demand. With the euphoric sentiments of the market, whales catch the entire profit leaving the market in a declining state. 

Rally is not in an overheated stage as per technical indicators:

With the historical cycles of BTC price, it is shown that the current rally is not present at an overheated stage. In the BTC price, it is evaluated based on a 200-day average. When the multiple goes high from 2.4, it is an overheat indicator. Presently on 2 November, it is hovering up to 1.27. It means that the rally doesn’t seem to be overheated.

BTC Hash rate is just near to a high record:

In the autumn season, China’s northern regions face rainy times. Several hubs of mining working over hydropower get accessibility quickly over electricity much cheaper, enabling efficient Bitcoin mining. At the end of the rainy season, a massive miner’s exodus was there in China’s northern regions. As a result, the BTC hash rate fell steeply within the period. The BTC hash rate is just near the high record as per the past 30-days hash rate average. Presently, it hovers around 132 million tera-hashes in a second.

HODLing activity is a strong one:

As per the HODL waves that are trend evaluations for Bitcoin holders in the long-run, there is a rise in the investors that hold bitcoin for the long-term. From March, wherein BTC price falls from $3,600, HODLing activity turned strong. With the high BTC holding and strength in fundamentals, big triggers, including positive indicators of technology and high time frame, may be a reason behind the BTC big rally.

Crypto Trading Bots Has Come Up With ‘split-second Mathematical Accuracy’

A cryptocurrency firm has to say that its trading bots are designed in such a way that they can take calculated risks based on “split-second mathematical precision”. Let’s see what’s more about this update.

Here’s What Has Happened

A cryptocurrency firm based in Belgium says that its automated bots help traders to reduce the burden and work smarter. Based on 4C Trading, there are numerous crypto enthusiasts that lack access to advanced trading policies, and this can result in expensive mistakes.

The company has to say that its bots keep trading 24×7 that reduces the possibility that users will not get trading-opportunities that may take place when they are not near their laptops. Their teams have developed various Smart bots that are able to take calculated risks based on “split-second mathematical accuracy”.

It has become mandatory for 4C Trading to make its products geared towards traders of all capabilities independent of whether they are fresh in the crypto world or a master in the arena of digital assets.

Working of the Bots from 4C Trading

As the company says, their bots backed with algorithms operate based on market fluctuations. This signifies that the crypto is purchased when a true surge is seen in price and is sent for sale when there is an assured flump that actually aids in locking in profits.

The firm Claims to have Come up with the Model Easiest to Handle

The Belgium based company also says that handling these bots are the easiest to handle. They are completely trouble-free. Using them is actually a matter of minutes as it gets connected to exchanges through an API. However, this is a procedure that needs to be completed only once, and the firm’s client service team is on hand to provide help in case any client comes face to face with any difficulty, even with the smallest one.

This platform assures that its bots have set up a heavy track record after operating actively for more than two and a half years. All the detailed information is delivered with the help of a dashboard. Nonetheless, 4C Trading also made a statement regarding those bots saying that the bots only get engaged to operation only if there is a confirmed move of a trend. The form also told, it opens and closes its trades a little after than the commencing surge or flump.

Getting Started with SC Trading’s Smart Bots

The company has three bots to operate actively: SMART ETH, SMART BTC, and LINK. Each one of them has to offer a special experience, given how every asset has different levels of trading volume and liquidity.

4C Trading will offer you a free trial for seven days along with discounts only when the client registers with a six- or 12-month subscription. Price structures are set differently for beginners, advanced, and expert traders, and it promises its users to provide them with a better balance in their work lives.

Bank Of England Talks Negative Interest Rates In Best ‘ad’ For Bitcoin

Have you heard about the new advertising for Bitcoin? It has been floating as one of the significant bank assets that encourage people to save their money more.

As per Bloomberg’s reports, the Bank of England has apparently become the latest central bank to discuss the negative rate. Let’s know a bit more details about this.

As per the sources, England’s bank had proper discussions with the bank regulators over the negative rates, which precisely indicated to mean lending institutions. Thus, individuals might pay to store their cash!

Why such a significant change all of a sudden? The possible reason is the impact of the epidemic that has clearly shaken the world right now. The impact on the economy is terrible, and the prospect that is taking the shape of Brexit. This can surely make or break the scenario. But the bank has left many options to choose from due to the unprecedented times as per the news.

Even though the policyholders had voted to keep the interest rates at the bare minimum of 0.1%, there was still a decent slide against the major currencies.

The advocates of Bitcoin who have come up have apparently seized on the troubles of the Bank of England. They have stated the allegation that such a policy might underestimate or undermine the reputation and fiat currency position.

This has resulted in a pretty major outrage on Twitter, as all of them came down to talk about this finally. There were various opinions that either went in favor of their decision or were contradictory. This is a major concern for people out there since paying just to store their money is simply not feasible for them. According to them, they are basically advertising bitcoin and are taking the stand in their favor.

As per the sources, England’s bank is specifically not liked by the people due to the bitcoin issue. Furthermore, the uNited Kingdom government is even bailing out of the banking sector in the year 2009. Even an article from the Times was attached to him to justify the fact stated by them. And now it was clearly evident that bitcoin would surely hold power and functionality as a hedge against fiat in the upcoming years. This is surely a great deal for the U.K.

This week, the United States Federal Reserve has put up queries about various plans and ventures to overshoot inflation targets. This process would weaken the U.S. dollar and likely boost safe havens such as gold and Bitcoin.

According to England’s bank, this could be pretty damaging to the economic condition of the United kingdom. The European central bank(ECB) has been in this phase before, but such a massive move would be the first time in the United Kingdom and thus is a matter of debate at the moment. But keeping everything aside, the final decision is yet to be taken and will surely be on the right side, keeping every possible aspect in mind.

Covid-19 Vaccines Will Spark Bitcoin Crash

The crash of the Bitcoin (BTC) is impending when the world finds the answer to the pandemic, COVID-19. In other words, when a vaccine for the cure is found that works, the cryptocurrency would fall, as claimed by Robert Kiyosaki.

In a tweet, on September 15, 2020, Robert Kiyosaki, the famous author of the book “Rich Dad Poor Dad,” warned that a functional solution to COVID-19 would send the safe-haven assets to crash.

Kiyosaki also says that the Vaccine crash will be a Bitcoin buying opportunity.

So, “What happens when a vaccine is proven? Gold, Silver Bitcoin will crash and will be a buying opportunity for all investors,” he wrote.

In continuation, Kiyosaki argued that the virus was making the “real” issues at stake for the United States economy in particular. With $26.7 trillion in debt as per the monitoring resource U.S. National Debt Clock, much of which was because of the announced stimulus package for COVID-19 hit, the country is now “bankrupt.”

The tweet states that the “real problem is not pandemic, but the massive U.S. debt. He says that the U.S. is bankrupt with massive $28 trillion balance sheet debt and $120 trillion off balance sheet social obligations.

Gold, Silver Bitcoin is the best investment in the long term.

The reasoning favoring long-term investment in Bitcoin has become more and more public since March’s cross-asset market crash.

In spite of the current strength, the U.S. dollar is widely seen as being in a downward spiral, which will only worsen because of the Federal Reserve Policies. Apparently, the policies are also intended to counter COVID-19 fallout.

The weakness in the U.S. dollar currency index has elated Bitcoin and gold in recent months, underscoring the opposite correlation, which remains a significant consideration for traders.

The Federal Reserve is set to submit fresh comments on the future of its market participation, which would add on to the prospect of dollar volatility. A new trend highlights the increase in Bitcoin price rise in tandem with the Central Bank’s balance sheet.

Kiyosaki, meanwhile, remains an ardent supporter of Bitcoin, whatever the weather. Last August, he urged the investors through Twitter to buy cryptocurrencies before a significant banking crisis appeared.

The Federal Reserve meddling in the economy and the weakening dollar has been the basis of Kiyosaki’s advice. Also, Warren Buffet exiting U.S. Banking Investments and buying gold was another warning bell for the author.

RT host Max Keiser, who is also of the same opinion as Kiyosaki about the economy, forecasted in August 2020, that Bitcoin would hit an all-time high shortly as the current economic situation plays out.

The Iranian Government Took Down Over A Thousand Crypto Mining Farms

A known power company of Iran Tavanir shut down nearly 1100 farms engaged crypto mining recently as they were operating without a valid license. They took the help of whistleblowers to identify such miners and the individuals who provided such critical information received 100 million rials for their cooperation, according to media sources. Hence for the crypto miners, this is a tough time, and they have to restrict their activities in Iran. However, the market of this virtual currency is yet intact with such restrictions in one nation. 

Using subsidized electricity:

Tavanir said that they had to shut down the firms as they were using high levels of subsidized electricity. However, as per their own reports, there is no clarity on the significant increase in the consumption of electricity. Officials said that they are not able to detect all farms just by understanding the consumption patterns, and they had to rely on whistleblowers.

National law on crypto mining:

The national law on crypto mining mentions clearly that the identity of the miners should be disclosed, and all the details should be provided to the Ministry of Industry, Mines, and Trade. Authorities check critical information about the type of hardware used by the farms while allotting the license. In the same manner, they even check the size of the mining farms as this information will help them to validate individuals and companies involved in the mining activities.

All this information is collected to prevent smuggling, and this will encourage mining farms to work with a proper license. When individuals or companies are caught mining cryptocurrencies illegally, they will be fined as per the hardware used by the miners and also by the use of subsidized electricity by the individuals or companies. Both individuals, as well as companies, qualify for such a license.

Recently, iMiner has become the largest crypto-miner in Iran after it got a license by Iran’s Ministry of Industry, Mines, and Trade in May. They have set up around 6000 rigs, and this is the largest crypto miners of the country.

So far, the government has issued authorized licenses to as many as 1000 companies in Iran, and cryptocurrency mining is now considered an industrial activity in the country. Considering such measures by the government, experts are of the opinion that the future of cryptocurrencies is very bright in Iran and other developing countries.

Altcoins Account for One-Third of Total Crypto Mining Power Usage

Recently market research was conducted that proved Bitcoin mining only accounted for one-third of the total power consumption. The analysis of the 20 largest crypto assets was done to come to a conclusion. The regulators have been evaluating the impact of crypto mining on the environment recently. The researchers working at Munich’s Technical University have encouraged the regulators to look beyond Bitcoin when it comes to mining crypto assets’ environmental impact. 

As mentioned in a reputed scientific journal named Joule, the researchers Christian Stoll, Lena Klaaben, and Ulrich Gallersdorfer determined that Bitcoin mining accounted for only 66 percent of the total power utilization. The report stated that as per the algorithm for crypto mining, current hash rates, and the use of mining devices, Bitcoin mining’s energy consumption only accounts for two-thirds of energy consumption, and other understated cryptocurrencies use the remaining one-third. The power consumption of Altcoins is determined by analyzing the mining equipment and hash rates. 

The Blockchains that were analyzed apart from Bitcoin accounts for the top 20 cryptocurrencies by market capitalization. It includes Komodo (KMD), Ethereum Classic (ETC), Ethereum (ETH), Bitcoin SV (BSV), RavenCoin (RVN), Bytom (BTM), Horizen (ZEN), DigitByte(DGB), MonaCoin (MONA), Bitcoin Gold (BTG), Decred (DCR), Zcash (ZEC), Litecoin (LTC), SlaCoin (SC), DogeCoin (DOGE), Monero (XMR), Dash (DASH), and ByteCoin (BCN). 

One of the key aspects of the research was to divert the attention of the environmental effect of crypto assets’ mining from only Bitcoin. It is because other crypto assets are causing high damage to the environment as well, which is a significant point missed out in many of the research studies. The study also mentioned that while energy consumption alone is not the factor that affects the environment. The mining of the crypto assets requires a vast amount of ancillary resources that puts an extra burden on the environment. As the number of full-load hours increases for certain crypto assets’ mining, it can lead to potential fuel switching effects that can drastically increase the intensities of local emission. 

Hal Finney, a well-known Bitcoin pioneer, noted as early as in 2009 that Bitcoin mining can prove to be a nightmare for the environment, especially due to the amount of energy it requires. He made this observation much before altcoins were introduced. As per Digiconomist, the total power consumption of Bitcoin mining currently is nearly 63.5 terawatt-hours, which is way about the power consumption of some of the highly developed nations, including Switzerland. 

Around 73 percent of Bitcoin mining is powered by renewable energy as per the research firm CoinShares. One of the solutions that are proposed to curb energy consumption for Bitcoin mining is to convert additional gas produced during oil mining into electricity. The mining operations can be set up at the field itself in containers, which would save the cost of setting up pipelines or let the excess gas waste.