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What happens when billionaires build cryptocurrency miners on the Moon?

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By the end of 2021, if everything goes according to plan, the richest man in the world will take his personal spaceship on a pleasure trip into space and both Bitcoin and Dogecoin will literally fly to the moon.

The exploration and exploitation of space have traditionally been nationalist endeavors. But the rise of the twelve-digit billionaire suddenly made space look like open territory.

The players

Jeff Bezos is stepping down from his position as CEO of Amazon after 25 years before his upcoming launch aboard one of his own Blue Origin starships.

While it is easy to imagine the longtime leader pulling away to act out a childhood fantasy, there is nothing in Bezos’ story as an incredibly ambitious person and businessman to suggest that he is simply racing off into the sunset for a life of peaceful leisure respectively .

Put simply, Bezos’ interest in space is unlikely to end with thrilling consumers. While it’s impossible to know where the soon-to-be ex-CEO might take his ambitions, it is likely that Amazon and / or Blue Origin are already looking for ways to turn the space sector into profit.

But Bezos is obviously not the only private individual with a spaceship company. Elon Musk’s SpaceX has spent the last decade becoming the beauty of the ball from NASA, and he’s already all-in on the idea of ​​sending people to Mars.

And we mustn’t forget Richard Branson. It may only be worth a meager $ 5 billion (lol), but his Virgin Galactic company has long been committed to making some money off of space tourism. Also, let’s not forget that Virgin has been into everything from railroad technology to record labels.

And the list goes on. Anyone with a few billion dollars has business opportunities and opportunities that extend beyond the surface of our planet.

Room for profit

In the past we have discussed the idea of ​​mining space asteroids for profit. Some experts believe that unimaginable fortunes in the form of resource-rich asteroids are floating around in space.

In fact, you can even get an asteroid mining degree. And even Goldman Sachs considered participating.

But at the end of the day, we still need to figure out where those resources are, build machines that can extract them, and get them safely to a place where they can be useful. At the moment, it doesn’t make much sense to invest in asteroid mining futures because the technology either doesn’t exist or isn’t ready.

However, there is more than one type of mining you can do in space.

Enter cryptocurrency and the future

Elon Musk recently got into a friendly space race, but this time around it has nothing to do with competition for missiles or government contracts. He’s racing against BitMEX, a cryptocurrency exchange and derivatives platform, to see who can get a cryptocurrency on the moon first.

A new space race has started!

– Elon Musk (@elonmusk) June 6, 2021

If you’re curious how that works, here’s an excerpt from BitMEX’s official announcement:

BitMEX will mint a unique physical bitcoin, similar to the 2013 Casascius coins being delivered to the moon by Astrobotic.

The coin contains a bitcoin at an address that can be published under a tamper-proof hologram cover. The coin proudly displays the BitMEX name, mission name, mint date and Bitcoin price at the time of minting.

According to BitMEX, this isn’t just a ceremonial or token handover. The coin itself is a hardware wallet that contains a real bitcoin, so its value changes with the value of the BTC here on earth.

In other words, BitMEX is sending literal treasure to the moon for anyone brave (or rich) enough to salvage it.

According to the company’s blog post:

Photo credit: BitMEX

Come and get it. When the physical coin lands, it will stay on the moon until someone deems it worthy of finding it again. What will it be worth in decades?

It’s a great question. Some experts have predicted that a single bitcoin will one day be worth $ 100,000, $ 1 million, or even more. But an even better question is: what is the end game for cryptocurrencies in space?

Billionaires want to become trillionaires

As early as 1999, Wired published an article about the impending rise of the world’s first billionaire. Back then, everyone assumed that the richest man in the world, Microsoft CEO Bill Gates, would be by far the first billionaire.

Here is a quote from this article:

The value of Bill’s stake in Microsoft increased from $ 233.9 million at the time Microsoft went public in 1986 to $ 72.2 billion on June 15, 1999 (excluding stock sales). At that rate – 58.2 percent per year – he will become a trillionaire in March 2005 at the age of 49, and his Microsoft holdings will be valued at one trillion dollars in March 2020 when he is 64 years old.

Of course, we haven’t seen a trillionaire in modern history. At the time of this writing, the richest person in the world is French Bernard Arnault, whose $ 193.6 billion empire surpasses Jeff Bezos’ $ 189 billion.

At some point, if Bezos pulls it off or Elon Musk wants to close the widening gap between his $ 151.4 billion and a top spot, the world’s richest people will have to do more than just stifle terrestrial markets for every drop of the Profit.

Because of this, many experts see Elon Musk’s strong involvement in cryptocurrency as the potential difference maker. On any given day, the total value of the founder of Tesla, SpaceX and Neuralink can skyrocket or decrease by tens of billions of dollars, depending on how his cryptocurrency holdings perform.

Given that market movements can be directly linked to Musk’s social media statements, the promise of power for billionaires owning cryptocurrencies is unbridled.

Put simply, Elon Musk has more control over the so-called “volatile” world of cryptocurrency than most.

Bringing a cryptocurrency into space, much like firing a Tesla into the galaxy, is a PR move designed to spark interest in the burgeoning crypto market. But that’s not the only purpose they serve. These actions remind us that people like Musk and Bezos can do what they want. If you want to put a coin on the moon, you have the means.

And if, for example, Musk or Bezos suddenly wanted to solve the biggest problems in cryptocurrency mining – power consumption, carbon footprint, development of sufficiently powerful hardware – they are in a unique position to do so.

Nobody in space can hear you, mine

Arguably one of the biggest things stopping a top whale like Elon Musk from spending a fair chunk of their billions on crypto mining centers is the fact that such an operation would almost certainly be widely condemned for its potential impact on the global climate crisis .

But the moon’s atmosphere is not necessarily as fragile as that of the earth.

Hypothetically speaking, there’s nothing stopping a billionaire from building a facility on the moon to mine cryptocurrencies. You would of course have to be able to build your own batteries, have experience with artificial intelligence and supercomputers, and have already built your own satellite network in space – everything Elon Musk can tick today.

And what can stop a billionaire in the near future from putting a supercomputer on a satellite and sending it somewhere into space to mine cryptocurrencies around the clock at temperatures close to absolute zero if we perfect space transmission technology?

These are all guesses, but the writing is on the wall. Cryptocurrency enthusiasts fear what the experts warn again and again: Regulation is coming.

Ultimately, it is possible that the mining of cryptocurrencies will be regulated with strict guidelines aimed at preventing the mining operations from harming the environment further. This could seriously hamper the market.

If humanity leaves terrestrial mining to save the planet, we will leave untold sums of money on the table. It doesn’t make billionaires billionaires.

The only logical way forward, aside from some unknown new green mining technology, could be to move the cryptocurrency industry into space.

Cryptocurrency

Crypto retreats as bitcoin and ethereum lead mild sell-off

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Bitcon and Ethereum prices fell 4% on Friday. Photo: Yuriko Nakao / Getty Images

The cryptocurrency market saw a small sell-off on Friday morning, with Bitcoin (BTC-USD) and Ethereum (ETH-USD), the world’s first and second largest coins, down around 4%.

Bitcoin, currently trading at $ 37,866 (£ 27,259), hit levels of $ 41,330 on June 15, a key resistance area of ​​$ 41,250, but has continued to decline since then.

This week it was rocked by an announcement by the US Federal Reserve that it could hike rates through the end of 2023. Assets deemed risky, such as certain stocks and crypto, have also been weighed down by ongoing fears that the Fed may unwind its bond purchase program earlier than expected.

Bitcoin has been in decline for the past few days.  Chart: Yahoo Finance

Bitcoin has been in decline for the past few days. Chart: Yahoo Finance

On Thursday, the World Bank also rejected a request from El Salvador to help introduce Bitcoin as legal tender.

The bank said it could not support El Salvador’s plans due to the environmental impact of Bitcoin mining and the transparency drawbacks.

It came when the UK’s Financial Conduct Authority (FCA) reiterated its warning that people “should be ready to lose all their money” when investing in cryptocurrencies.

The regulator estimates that 2.3 million adults in the UK now own crypto assets, up from 1.9 million last year, with more and more people viewing them as either a complement or an alternative to mainstream investments.

Enthusiasm for crypto assets is also growing. More than half of crypto users said they have had positive experiences so far and are likely to buy more, from 41% to 53%, according to the FCA. Fewer people also regret buying cryptocurrencies, from 15% to 11%.

Sheldon Mills, FCA’s Executive Director, Consumer and Competition, said, “The market has continued to grow and some investors have benefited from rising prices.

Watch: What is Bitcoin?

“However, it is important that customers understand that if something goes wrong, they will likely not have access to the FSCS or the Financial Ombudsman Service as these products are largely unregulated.

The story goes on

Cryptos have recently been empowered with institutional support. Several organizations, including MicroStrategy (MSTR), have invested billions of dollars in cryptocurrencies, and traditional financial firms like PayPal (PYPL) and Goldman Sachs (GS) have started managing the asset on behalf of customers.

“While things may seem calm to the inexperienced, behind the scenes activity is still strong,” said Paolo Ardoino, CTO at Bitfinex. “Options markets are buzzing while institutions test strategies.”

He added, “Bitcoin has become an integral part of some of the most diverse portfolios around the world. Long-term private investors ride the wave. The builders of Bitcoin keep building. The first Bitcoin upgrade in four years has been approved and will take effect in November. The developers are working in anticipation of the upgrade. The community continues to improve the global financial networks. “

However, according to a survey by Bank of America, 81% of fund managers say Bitcoin is still a bubble.

View: What are the risks of investing in cryptocurrency?

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bitcoin price: Top cryptocurrency prices today: Ethereum, Polkadot, Uniswap down up to 6%

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NEW DELHI: Major cryptocurrencies traded lower on Friday as US regulators delayed Bitcoin ETF approval. This has clouded the sentiment of crypto investors. However, digital tokens pegged to dollars have shown signs of resilience. The majority of the top 10 digital tokens traded with cuts at 9:30 a.m. IST.

The Securities and Exchange Commission (SEC) said in a regulatory filing that it will seek public comments on a proposal to list Bitcoin ETFs with Cboe Global Markets Inc. It’s not the first time this year the SEC has delayed responding to crypto advocates.

Contrary to the views of the US Securities and Exchange Commission, the UK’s Financial Conduct Authority said more people are viewing crypto assets as a mainstream investment rather than “gambling” with ownership of bitcoin and similar cryptocurrencies in the UK this year rose to 2.3 million adults.

Regulators have repeatedly warned investors about the “speculative” nature of largely unregulated crypto assets, which have fallen between 40 and 50 percent since peaking in May. However, global securities index publisher MSCI is considering the introduction of indices for cryptocurrency investments, another step towards mainstream adoption for digital currencies.

“It was an eventful week for cryptos. Both BTC and ETH have been trading almost unchanged since the beginning of the week. We might see a small sell-off as sellers become more active. Polkadot remains under tremendous selling pressure The dollar-pegged cryptocurrency Tether, which is usually very stable, has risen slightly, “said Edul Patel, CEO and co-founder of Mudrex.

Bluechip venture capital funds, known for placing risky bets, like to invest in Indian crypto and blockchain startups, but say the uncertain political environment stands in their way.

Crypto shopping cart: Quick Glance (Source: coinmarketcap.com, as of 9:30 a.m., ACTUAL on 06/18/2021)

  • Bitcoin: $ 37,963.57, down 2.32 percent
  • Ethereum: $ 2,346.29, down 3.65 percent
  • Tether: $ 1.00, up 0.06 percent
  • Binance Coin: $ 354.07, down 0.99 percent
  • Cardano: $ 1.48, down 3.62 percent
  • Dogecoin: $ 0.3052, down 2.73 percent
  • XRP: $ 0.8415, down 1.84 percent
  • USD coin: $ 1, up 0.05 percent
  • Polkadot: $ 22.31, down 5.58 percent
  • Uniswap: $ 21.73, down 4.51 percent

Note: price change in the last 24 hours

Tech View from ZebPay Trade Desk

1inch was launched in 2019 with the aim of helping users find the best asset prices on decentralized exchanges. Within 2 years, 1inch has grown into one of the most widely used decentralized exchanges with over $ 290 million in their liquidity pool.

The 1 inch network is a collection of decentralized protocols with a DeFi aggregator and an Automated Market Making Protocol or AMM. Last December, 1inch launched its 1inch (1INCH) governance token, and the 1inch network was supposed to be managed by a decentralized autonomous organization (DAO).

ETMarkets.com

Tech-wise, 1inch has hit a ‘Morning Star’ pattern (Three Candle Trend Reversal Pattern) in the daily timeframe at the support level of $ 2.4 and is up nearly 56 percent, hitting the weekly high of $ 3.945.

However, the bulls failed to get a grip on the asset and failed to break the $ 4.00 resistance. As a result, the price has declined nearly 15.5 percent from its recent highs. To continue to bounce, 1inch needs to trade above $ 4 and close. The asset is currently trading at $ 3.319.

Main stages

Support: 2,442, $ 2.9

Resistance: $ 4, $ 5.4

The time is in UTC and the daily time frame is 12:00 PM – 12:00 PM UTC

(The views and recommendations in this section are the analysts’ own views and recommendations and do not represent those of ETMarkets.com. Please consult your financial advisor prior to entering into any position in any of the above assets.)

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Bitcoin (BTC) flaws set stage for alternatives

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Bitcoin, the most famous cryptocurrency in the world, has some shortcomings – and that, according to a Cornell University professor, has led other digital currencies to develop more workable options.

It’s not as anonymous as people think, and “mining” bitcoin is bad for the environment, stressed economics professor Eswar Prasad. It doesn’t work well as a currency either, he told CNBC on Thursday.

One interesting aspect is that other cryptocurrencies have come up with solutions to address some of Bitcoin’s shortcomings, said Prasad, who was formerly head of the China division of the International Monetary Fund.

1. Mining is harmful to the environment

Bitcoin mining refers to the energy-intensive process required to produce new coins and ensure that the payment network is secure and verified.

The electricity used to validate transactions on the Bitcoin blockchain as well as the mining process is “certainly not good for the environment,” said Prasad.

Tesla CEO Elon Musk said last month that his electric car company is no longer accepting bitcoins as payment for environmental reasons, causing the price of bitcoin to drop 5% in minutes.

He has since made a U-turn, saying in a tweet on Sunday that Tesla will accept Bitcoin in transactions if it can confirm “reasonable” and “clean energy use by miners”.

Crypto miners use specially designed computers to solve complex mathematical equations that make a coin transaction effective. The miners are rewarded for their efforts by getting paid in the cryptocurrency.

However, the entire process of creating a bitcoin requires a lot of energy and, according to the Cambridge Bitcoin Electricity Consumption Index, can use more electricity than entire countries like Finland and Switzerland.

On the other hand, Ethereum – the second largest cryptocurrency sometimes seen as an alternative to Bitcoin – is developing a different mining method that uses less energy, as Prasad pointed out.

Read more about cryptocurrencies from CNBC Pro

It is called “Proof of Stake” and is the underlying mechanism for Ethereum, which activates so-called “validators” in the network if they can prove that they own ether or a “stake”.

Ultimately, it should eliminate the need for massive computing power to validate transactions, and the Ethereum Foundation claims it will use 99.95% less energy than before.

“This will be a lot less energy intensive and could offer many of the benefits that Bitcoin should offer. It could also make transactions a lot cheaper and faster, ”said Prasad.

It’s not there yet, however, he added.

2. Not so anonymous after all

Earlier this month, U.S. law enforcement officials announced they had recovered $ 2.3 million in Bitcoin paid to a cyber criminal group involved in the ransomware attack on the Colonial Pipeline in May.

The FBI said its agents were able to identify a virtual wallet that the hackers used to collect payments from the Colonial Pipeline.

“The main idea of ​​Bitcoin … was to provide pseudonymity,” said Prasad. “But it turns out that if you use Bitcoin a lot, and especially if you use Bitcoin to get real goods and services, it will eventually become possible to link your address or physical identity to your digital identity.”

What is interesting, he said, is that there are other cryptocurrencies trying to fix this and provide more anonymity. He named Monero and Zcash as examples.

Chris Ratcliffe / Bloomberg via Getty Images

“So Bitcoin has really started a search for a better alternative and people seem to be looking for a medium of exchange that doesn’t have to go through a trustworthy institution like the government or a commercial bank – but that’s not quite there yet “said Prasad.

3. Doesn’t work well as a currency

In theory, Bitcoin should provide an anonymous and efficient medium of exchange, but “it didn’t work in that regard,” said the economics professor.

Rather, it is “slow and awkward” to use Bitcoin to pay for goods and services, and the market is very volatile, Prasad said.

Bitcoin is prone to large fluctuations in volatility, as evidenced by the 30% decline in a single day over the past month.

“So you could take a bitcoin to a store and get a cup of coffee one day and a lavish meal with the same bitcoin the next. So that doesn’t work well for the medium of exchange, “he said.

Bitcoin has become a speculative asset for people who hope it will increase in value instead of using it as a means of payment, Prasad said.

– CNBC’s Sam Shead contributed to this report.

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