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Amid China’s bitcoin crackdown, experts fear ‘dirtier’ cryptocurrency mining: Here’s what you need to know

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China’s sweeping ban on cryptocurrency mining dealt a blow to an industry criticized for its environmental impact, but the sector’s emissions could rise as a result unless other countries follow China’s lead, climate and technology experts said.

Bitcoin’s value plummeted last week after China’s central bank urged banks and payment companies in the country to crack down on cryptocurrency trading amid Beijing’s recent tightening of restrictions on the sector.

This was good news for climate activists who have raised concerns about the potential of the energy hungry cryptocurrency mining industry to disrupt international efforts to curb global warming.

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Beijing’s latest move has crippled Chinese industry, which accounts for more than half of global cryptocurrency production, making it much more difficult for individuals in China to trade digital coins.

But by disrupting access to China’s electricity grid with its plentiful supply of affordable renewable energy, the new restrictions could push miners towards dirtier sources of electricity, warned Pete Howson, a senior lecturer in international development at Northumbria University in the UK.

“China produces enormous amounts of cheap electricity from hydropower, especially in the province of Sichuan – which is now almost taboo for Bitcoin miners,” he told the Thomson Reuters Foundation.

“AN ENVIRONMENTAL CRIME”

Industry experts predict that cryptocurrency production will pick up elsewhere as Chinese miners sell their machines or seek refuge overseas – often in countries with less renewable energy.

“In both the short and medium term (the crackdown) is likely to increase emissions related to Bitcoin mining,” said Alex de Vries, founder of the Digiconomist research platform, which publishes estimates of Bitcoin’s climate impact.

“Without China, which is the world’s largest renewable energy market in absolute terms, it seems unlikely that miners will have many opportunities to become greener,” he added.

Shota Siradze, who runs a cryptocurrency business in Tbilisi that helps budding miners settle in the former Soviet Republic of Georgia, said his phone started buzzing again after months of silence last week when China’s announcement sparked a spate of inquiries from abroad Investors.

“People write and call me to find space to install huge amounts of processors,” he said, adding that he assumed that most of the potential customers have just bought servers from China.

Continue reading: Billions have been paid in cryptocurrency fines since Bitcoin’s birth

Previous cryptocurrency booms in Georgia, which uses primarily hydropower, resulted in spikes in energy demand and rolling power outages in the breakaway region of Abkhazia, where mining was recently banned.

While some Chinese miners are selling, others are reportedly moving to Kazakhstan, which relies heavily on fossil fuels for electricity, or Texas, where they could skyrocket utility bills and worsen pre-existing electricity problems in the southern US state. Researchers said.

“The state is in bad shape to welcome bitcoins,” said Howson of Northumbria University.

“A few months ago we saw outages there that left millions of people without power. Hundreds of people lost their lives. They froze to death. Bitcoin will make things a lot worse.”

Cryptocurrency enthusiasts say a decentralized digital currency is worth the cost of energy, which they believe is relatively low compared to other key sectors of the economy.

It is estimated that Bitcoin mining currently accounts for around 0.3% of global electricity consumption – more than Austria on an annual basis, but around a third of what is consumed by unused household electronics in the US each year, according to an index compiled by Cambridge University.

Still, industry critics hope that China’s actions will trigger a worldwide crackdown.

“It’s really important now that governments take steps to ban the import of Bitcoin mining machines,” Howson said.

“Just like the global trade in Chinese tiger parts, Bitcoin mining must be treated as an environmental crime.”

PRICE VOLATILITY

In fact, more countries could follow China’s example as concerns about cryptocurrencies are not limited to the environment, said Eswar Prasad, professor of trade policy at Cornell University in New York.

Chinese authorities say cryptocurrencies disrupt the economic order and facilitate illegal asset transfers and money laundering. Analysts say Beijing is also concerned about potential competition for the digital yuan.

Last week, the Bank for International Settlements, an umbrella organization known as the “central bank of central banks,” said cryptocurrencies are being used for ransomware attacks and financial crime, adding that Bitcoin in particular has “few redeeming attributes of public interest”.

Also read: Bitcoin surge propels the cryptocurrency ecosystem 8% to $ 1.43 trillion after holding the 30,000 mark

The coin can still count on influential supporters: Also last week, El Salvador’s President Nayib Bukele said that a law would come into force in September that will make the country the first country to introduce Bitcoin as legal tender.

But in a broader sense, China’s actions are likely to be seen as a blow to the legitimation of decentralized cryptocurrencies like Bitcoin, which could further hurt the viability of digital currencies, Prasad said.

“The biggest challenge for decentralized cryptocurrencies is that they have proven to be inefficient and costly means of exchange and instead have become speculative assets,” he said via email.

“Their lack of intrinsic value will make them prone to tremendous price volatility, making it even more difficult for them to perform their supposed role as a medium of exchange more efficiently than existing payment technologies.”

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Cryptocurrency

Neobank launches real-time cryptocurrency conversion

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California-based MovoCash, a neo bank that Launched in 2017, released a new cryptocurrency service for its users last week. The technology called MOVO Chain acts as a curfew on cryptocurrency investments and enables customers to quickly convert 10 different cryptocurrencies into fiat currencies that are stored on a debit card.

The fintech works with the Coastal Community Bank and offers its customers five core services: MOVO Cash, MOVO CASH Cards, MOVO Pay, MOVO Digital Banking and MOVO Chain. MovoCash CEO Eric Solis said the company had registered more than 1.2 million accounts and issued half a million cards.

The company said “United States-based cryptocurrency users can convert and send / spend funds by debit card to anyone with an email address or cell phone number.

The new service can make crypto more important as a medium of exchange. Solis’ vision for the service is for customers to “use Bitcoin and other major cryptocurrencies as long-term savings and fiat for their daily payments.”

In order to process the conversion of cryptocurrency into cash, neobank has teamed up with the payment service provider BitPay.

According to Solis, Bitpay acts as a firewall “between the bank and the crypto” so that “over time [the payment] If you get anywhere near the bank, it’s back in fiat currency. “More specifically, the payment is stored in the form of tokens on an electronic debit card that can be sent to another electronic device.

Partnership with bank

Eric Sprink, President and CEO of Coastal Community Bank, said he was proud to work with neobank.

“MOVO Chain is providing MOVO customers with a unique solution that enables them to seamlessly convert and send cash values ​​from their Bitcoin or other cryptocurrency holdings,” he said in a statement.

MovoCash caters to a wide audience with its mobile banking services, from celebrities to those who make a living from paycheck to paycheck. Solis does not expect MOVO Chain to be used by all or even most of Neobank’s customers.

“I think the percentage of our users using Bitcoin is probably the same as what you would find in a general sample of society,” he said. The service fills a niche for selected customers who want to use cryptocurrencies like Bitcoin and Ethereum as an asset class, but want to access these funds for payments at any time.

The company recently signed up to Equity crowdfunding on StartEngine. To date, MovoCash has raised $ 219,204 from 106 investors on the crowdfunding site. In total, the fintech has raised around $ 1.5 million for a convertible bond. MovoCash has more than 420.8 million US dollars in user deposits and cites a growth rate of 242% in 2019 and 2020. neobank cites its security and the contactless end-to-end payment experience as reasons for its success.

Solis said he anticipates user accounts growth will grow organically as customers send payments and suggest the app to friends and family.

Movo has competition

MovoCash is hardly the first Neobank to offer its customers services related to cryptocurrencies. Update recently released a Bitcoin Rewards credit card that offers customers 1.5% bitcoin refunds when they use the card. Fintech Paybby plans share a cryptocurrency platform this summer as the company seeks to increase the popularity of crypto with minority investors. The Neobank electricity plans to launch crypto products in the future.

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Why Ethereum Could Surpass Bitcoin In The Near Future – Crunchbase News

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By Ahmed Shabana

Even after major cryptocurrencies experienced a threatening collapse from their all-time highs in April, most have soared 200 percent to 300 percent or more from that point in the past year. Bitcoin is making all the headlines, and there are legitimate concerns about its roller coaster nature.

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But what about Ethereum? Ethereum was conceived in 2013 and is an open source platform that helps develop and implement new decentralized applications with the same core concepts as blockchain.

The difference between Ethereum and Bitcoin has caught the attention of large market players like Goldman Sachs, who recently advised investors that Ethereum has a good chance of surpassing Bitcoin’s market cap of $ 660 billion.

The Ethereum network holds more promise because of its real world applications and its ability to store value. Ethereum represents the future of programmable money and smart contracts in ways that older cryptocurrencies like Bitcoin cannot.

Ethereum simplifies worldwide payments

Since the Ethereum network supports the development of new applications in its infrastructure and enables their creation, it is potentially a more valuable resource in the long run. Ether (ETH) will be used to pay for these transactions, as last seen with the booming popularity of NFTs this spring. The result is a much higher usage rate for Ether with far more transactions than Bitcoin in the last 12 months.

Ahmed Shabana from Parkpine Capital

Despite the recent decline in cryptocurrencies, ether rose nearly 1,000 percent in the past 12 months, compared to the 300 percent increase in Bitcoin. Where a Bitcoin is a pure token of value – a currency that is backed by the perceived value of those who own it – Ethereum and the ETH blockchain fuel each other. The recent upgrades to the Ethereum network are helping it to scale much faster and lower transaction costs on the network, which further drives the price of the tokens up.

Instead of having a central instance that monitors how the applications run on the Ethereum network and which transactions are processed, Ethereum-based apps are booming. The most common types of these apps are DeFi. These apps saw 2,000 percent growth in 2020, with more than $ 16 billion in crypto assets stored in their logs by the end of the year.

The future of ETH

Ether started 2020 at $ 125.63 and grew nearly 500 percent to $ 729.65 by the end of the year. It hit $ 4,380 briefly in 2021, but has since hovered between $ 1,700 and $ 2,500, sometimes rising or falling as much as $ 1,000 in a single week.

The big question is where will ETH end in 2021. Many projections are relatively optimistic, with an average price target of between $ 3,500 and $ 4,500 by the end of the year and average long-term projections of $ 11,170 by 2025. However, there are some who see it even faster and more substantial during this time grows.

In a recent Forbes article, a panel of crypto experts including Sagi Bakshi and Lex Sokolin predict that ETH could climb as high as $ 19,842 by 2025 and that by the end of 2022, due to its growing utility in the world, it could increase the The most common cryptocurrency could be the marketplace.

These experts name a number of upgrades that will be made to the network in 2021 that will lower the currently high transaction costs and dramatically increase the benefits. An expert on the panel, Sarah Bergstrand, estimates that ETH could reach US $ 100,000 by 2025.

The biggest upgrade contemplated by investors is EIP-1559, which will overhaul the transaction fee system used by Ethereum. Instead of sending charges to miners who perform tasks on the network, users send the charge to the network itself, which wipes out the charge, reduces the overall supply, and then increases the value of the currency.

The future of cryptocurrency regulation

Ethereum represents a sustainable, function-oriented approach to cryptocurrencies that will support the future of DeFi. But many people stay on the sidelines waiting for government regulations to be implemented.

While longtime cryptocurrency investors lament the idea that regulations limit the freedoms currently available in the market, large investors and corporations see the inevitable implementation of such regulations as a source of stability that could lead to mass adoption.

After several months of chaos, the Biden government is examining how to tackle the markets. A congressional committee has been set up to review digital currencies, the FDIC has asked banks to provide documentation on how they use digital assets, and auditor Michael Hsu is reviewing all current and past guidelines on cryptocurrencies. The chairman of the US Securities and Exchange Commission warns bad actors of impending enforcement and regulation.

Overall, many view these changes as good. When markets are regulated, they become safer for everyday users, and Ethereum can go “normal” with the range of decentralized apps that support and enable it.

Ahmed Shabana is a venture capitalist, startup advisor, investor and entrepreneur. He is Managing Partner of Parkpine Capital, Founder of the Global Ventures Summit, and Creator of The Hungry Company.

Illustration: Li-Anne Dias

Stay up to date with the latest financing rounds, acquisitions and more with the Crunchbase Daily.

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Google’s New Cryptocurrency Ad Policy Goes Into Effect – Featured Bitcoin News

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Internet giant Google’s new advertising policy has come into effect. The company now allows certain cryptocurrency displays, such as: B. those that advertise the exchange of cryptocurrencies and wallets. Advertisers must meet certain requirements and be certified by Google.

Google now allows some crypto ads

Google’s new advertising policy for financial products and services, announced in June, has come into effect. A note on the internet giant’s website:

Starting August 3, advertisers offering US-targeted cryptocurrency exchanges and wallets will be able to advertise these products and services if they meet the following requirements and are certified by Google.

To be certified by Google, advertisers must either be registered with the Financial Crimes Enforcement Network (FinCEN) as a money services company or be a federally or state-recognized bank. They must also meet the relevant legal requirements and their ads and landing pages must comply with Google’s advertising guidelines.

In 2018, Google banned ads related to “cryptocurrencies and related content (including, but not limited to, Initial Coin Offerings)”. [ICOs], Cryptocurrency exchanges, cryptocurrency wallets and cryptocurrency trading advice) ”as well as advertisements for crypto-related“ aggregators and affiliates ”. Google then allowed selected crypto ads in the US and Japan.

Last June, Sydney-based law firm JPB Liberty filed a class action lawsuit against Google, Facebook and Twitter for banning cryptocurrency ads.

While the new policy allows certain crypto ads, Google still doesn’t allow ads for ICOs, defi-trade protocols, and those that “promote the buying, selling, or trading of cryptocurrencies or related products.” In addition, “ad targets that aggregate or compare issuers of cryptocurrencies or related products” are prohibited.

One of the prohibited ad categories is “Celebrity Cryptocurrency Recommendations”. Many scammers have taken advantage of Google and Youtube to promote fraudulent Bitcoin giveaways. Apple co-founder Steve Wozniak sued Google and Youtube last July for promoting Bitcoin advertising fraud using his name and likeness. However, the court ruled in Google’s favor.

What do you think of Google changing its policy to allow ads in cryptocurrency? Let us know in the comment section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation to make an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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