The Bitcoin Mining Council’s new report reveals that while the price of bitcoin has been on a steady decline, mining for cryptocurrency did not increase its sustainable energy mix by nearly 59 percent in first quarter 2022. The overall electricity consumption was also reduced around 25%.
A recent study by researchers showed that as of March 31, 2019 approximately 50% or 100.9 Exahashes per second (EH/s) were mining with renewable sources such wind and solar power.
They found 64.4% used electricity which includes these types in their survey responses around the world; this is an increase over last year’s figure where they estimated it to be 58.4%.
Bitcoin mining is responsible for 0.16% of worldwide energy consumption (247 out 154,750 terawatt hours), and produces a mere 0.086%. And according to a report by The Guardian , Bitcoin mining uses more renewable than any country on earth.
The Bitcoin mining process uses a tiny fraction of the world’s electricity, and it’s important for people to know exactly how much they’re wasting.
Core Scientific co-founder Darin Feinstein says that his company has done some calculations on this topic in order to set accurate standards: “As sunlight is the best disinfectant, it is important for the world to get the real facts about the amount of energy used and carbon released by the Bitcoin Network.”
As the price of Bitcoin grew, so did its popularity in recent months. The network’s hash rate increased 23% year-on-year and energy usage declined 25%.
According to Microstrategy CEO Michael Saylor this increase can be attributed largely due advances made by semiconductor technology providers as well as North American mining industry growth which was fueled mainly on China Exoduses (when people remove their hardware) or worldwide adoption for sustainable energy and modern bitcoin mining techniques.
The mining industry has been on a rollercoaster ride these past few years with Bitcoin prices fluctuating, but one thing that hasn’t changed is how efficient computers can mine.
Efficiency improved by 5814% over 8 Years. In fact – according to The BMC- it will increase another 600% in the next eight years.
Three Arrows Capital Defaulted on a $670M Debt
One of the most well-known crypto hedge funds, Three Arrows Capital, has defaulted on a $670 million debt. Voyager Digital, a digital asset brokerage, announced on Monday that the fund had defaulted on a $350 million USDC and 15,250 bitcoin loan, valued around $323 million at today’s rates.
In the wake of weeks of turbulence in the cryptocurrency market, 3AC is facing a financial constraint that could lead to bankruptcy. In the previous 24 hours, both bitcoin and ether have fallen marginally, although both are still considerably below their all-time highs. In the meantime, the total crypto market cap is roughly $950 billion, down from around $3 trillion in November 2021 at its high.
In a statement, Voyager stated that it wants to pursue 3AC recovery (Three Arrows Capital). Customers’ orders and withdrawals are still being processed, despite the broker’s statement that the platform has been shut down. It’s possible that the assurance is an attempt to tamp down fears of a wider crypto environment spreading the disease.
Voyager CEO Stephen Ehrlich said, “We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands.” According to Voyager, it has $137 million in US currency and crypto assets as of Friday. In addition, Alameda Ventures has provided the company with a $318 million (or 15,000 bitcoins) revolver, worth $200 million in cash and USDC.
Sam Bankman-Fried, the creator of FXTrade, has invested $500 million in the crypto brokerage Voyager Digital. 75 million dollars of its credit line have already been drained by Voyager. 3AC’s default “does not cause a default in the agreement with Alameda,” according to the statement. 3AC did not respond to a request for comment from CNBC right away.
What brought 3AC to this point?
Zhu Su and Kyle Davies started Three Arrows Capital in 2012. One of Zhu’s most well-known traits is his belief that bitcoin will continue to rise in value. Last year, he predicted that the world’s most valuable cryptocurrency might be worth $2.5 million per coin, according to his calculations at the time. Zhu’s “supercycle price thesis” was, however, proven to be incorrect in May of this year, when the crypto market began its downward spiral.
The so-called “crypto winter” has taken a toll on digital currency initiatives and businesses of all kinds. This month, Zhu tweeted that the company was in the midst of “communicating with relevant parties” and “totally committed to sorting this out,” which sparked the company’s troubles. There was no further investigation into the nature of the problems.
After the tweet, the Financial Times reported, citing persons familiar with the subject, that US-based crypto lenders BlockFi and Genesis had liquidated some of 3AC’s positions. While 3AC had borrowed money from BlockFi in order to pay the margin call, they were unable to do so.
To avoid a loss on a trade done with borrowed money, an investor must put more money into the account. There were two tokens that had been touted as “algorithmic stablecoins”: TerraUSD and Luna. 3AC’s exposure to Luna resulted in financial losses. Founder of 3AC, Davies, told the Wall Street Journal, “The Terra-Luna scenario caught us very much off a surprise.
Because of the ongoing downward pressure on bitcoin prices, Three Arrows Capital is still in a credit crunch. On Monday, Bitcoin was trading about $21,000, a loss of about 53% from its year-to-date high. As a result of rising inflationary pressures, the Federal Reserve in the United States has suggested that it will raise interest rates in the near future.
According to Forbes, 3AC, one of the world’s leading digital asset hedge funds, borrowed enormous amounts of money and invested in numerous digital asset ventures. Fears of a further industry-wide outbreak have been prompted by this.
As a result of the market fall, a number of crypto businesses have already experienced liquidity issues. As a result of “extreme market conditions,” Celsius, a loan service that promised customers significant returns for depositing their digital currency, has put an end to customer withdrawals. Babel Finance, another crypto lender, announced this month that it has blocked withdrawals due to “unusual liquidity pressures.”
Is 400 Trillion SHIB Tokens Burned Enough For a Bull Run?
On April 23rd, the Shiba Inu Ecosystem announced the establishment of a “burning gateway,” through which it will begin the process of burning SHIB tokens. According to a blog post that was written by the people in charge of developing the Shiba Inu project, the purpose of burning SHIB is to lower the number of tokens that are currently in circulation. As a result, the developers hope to create a scarcity that would cause the price to increase.
The developers mentioned that in order to incentivize the participants of its ecosystem,
“This portal has been built to reward $SHIB burners, with a passive income acknowledgment, in the form of $RYOSHI Rewards. Meaning that 0.49% of all RYOSHI transactions will be distributed to owners of $burntSHIB.”
However, 65 days after the beginning of the burning process and after 410,370,460,561,720 SHIB tokens have been removed from circulation, the memecoin creators have found that things have not gone according to their plans. The price of SHIB has significantly decreased as a direct result of the general bear market that has been going on in the cryptocurrency market. Here is what we know about the alternative’s performance since the debut of the burn portal, which comes at a time when the team is getting set to start compensating customers who burned their SHIB tokens.
Over the course of the past 65 days, there has been a consistent drop in the price of SHIB. When it started on the 23rd of April, the burning process, the price of a single SHIB token was $0.000024. At the time of this writing, the cryptocurrency was trading at $0.00001148, representing a drop of 109 percent from its previous value.
In addition to that, the market capitalization was estimated to be $13.36 billion sixty-five days ago. This figure was down to $6.28 billion at the time the article was published.
Since the beginning of the fire, SHIB has had a difficult time keeping the bears off of its back. The relative strength index (RSI) for the token has spent the previous 65 trading days below the 50-point level that represents neutrality. On the other hand, the cryptocurrency had some reprieve on June 21 and sought to pass over.
This provoked a response from the bear, one that drove it further to the south. Despite this, the bulls were able to force one more correction, which resulted in the RSI moving in the opposite way. The RSI showed a reading of 56.16 at the time of publication.
In spite of the coin burning taking place for 65 days, on-chain data demonstrated that the performance of SHIB was not significantly affected in any way.
Since May 12th, for instance, the number of different addresses used in SHIB transactions on a daily basis has been steadily decreasing. By the time this article was published, the number of daily active users on the network had dropped by 90 percent.
In addition, during the time period under consideration, the Shiba Inu network did not experience a significant amount of expansion. Since the 12th of May, the amount of newly established addresses on the network each day has decreased by more than 200 percent, according to the data provided by Santiment.
On the social front, the volume of social activity experienced a decrease of 87 percent during the same time period. Despite this, there was a consistent increase in social dominance, leading to a 10% increase in total, despite the fact that there were some dips along the way.
Economic Turbulence and the Impact on Cryptocurrencies
Economic turbulence can have a major impact on cryptocurrencies. In times of economic upheaval, investors tend to flock to stable investments like gold. However, with the recent surge in interest in cryptocurrencies, many people are wondering if these digital assets can weather a storm.
In this blog post, we’ll take a look at how economic turbulence can impact cryptocurrencies and explore some of the key factors that will determine their resilience in times of turmoil. It’s no secret that cryptocurrencies have had a volatile year. After reaching all-time highs in November 2021, prices have crashed back down to earth, with many coins losing over 60% of their value.
Economic turbulence is a period of time during which the economy is in flux,
often due to external factors beyond our control. Economic turbulence is sometimes triggered by natural disasters, political unrest, or even just a change in consumer confidence. During periods of economic turbulence, businesses may struggle to maintain operations and may even face bankruptcy. Economic turmoil can also lead to job losses and an increase in poverty levels. In short, economic turbulence can have a major impact on our lives, both personally and financially.
One of the most famous examples of a company weathering economic turbulence is Sears, Roebuck and Company. Founded in 1886, Sears was one of the largest retailers in the United States by the early 1920s. However, the company faced challenges during the Great Depression. Economic conditions made it difficult for people to afford big-ticket items like appliances and furniture. In response, Sears began offering more affordable items and even began providing financing to customers. As a result of these changes, Sears was able to weather the economic storm and emerged as one of the most successful retailers in the country.
The economic turbulence of the housing bubble exposed many weak financial institutions.
Banks and other lenders were offering subprime loans to people with poor credit, often without properly verifying their income or employment status. This led to a large number of defaults, as borrowers were unable to make their loan payments. The resulting losses forced many banks and other lenders out of business. The housing bubble also had a major impact on the economy, as home values crashed and foreclosures rose sharply. This led to job losses and an increase in poverty levels.
The current economic climate is having a similar effect on the cryptocurrency market. Many of the weaker platforms are struggling to survive, as investors are losing confidence in their ability to weather the storm. This is leading to a consolidation of the market, as stronger platforms emerge as the leaders in the space. Economic turbulence can be a major factor in determining which cryptocurrencies will survive and thrive in the long run.
Cryptocurrencies could be considered as a safe haven investment during times of economic turbulence.
This is because cryptocurrencies are not subject to the same volatility as stocks and other traditional investments. However, there are a few ways in which economic turbulence can impact cryptocurrencies:
– Volatility: Cryptocurrencies are still subject to volatility, even during periods of economic turmoil. This means that prices can rise and fall rapidly, and investors can see their portfolios fluctuate in value.
– Mining: Economic turmoil can impact the profitability of cryptocurrency mining. This is because miners may have to sell their coins at a lower price due to reduced demand.
– Adoption: Economic turbulence can also impact the adoption of cryptocurrencies. For example, if businesses are struggling, they may be less likely to invest in new technologies like blockchain.
There are a few key factors that will determine how well cryptocurrencies withstand economic turbulence:
– Market capitalization: The market capitalization of a cryptocurrency is a measure of its size and popularity. The larger the market cap, the more resilient a coin is likely to be during times of economic turmoil.
– Trading volume: The trading volume of a cryptocurrency is a measure of how actively it is being traded. The higher the trading volume, the more likely it is that a coin will maintain its value during periods of economic turbulence.
– Liquidity: The liquidity of a cryptocurrency is a measure of how easily it can be bought and sold. The higher the liquidity, the more likely it is that a coin will retain its value during times of economic turmoil.
Survival of the fittest is a fundamental principle in the natural world, it carries the same weight in the world of finance. Only the strong survive. Blockchain technology is here to stay. It has truly revolutionized the world of trade. The stronger platforms that emerge from the debris left behind from their defeated rivals will dominate their respective sectors.
Cryptocurrencies could be considered a safe investment during times of economic turbulence. However, it is important to remember that cryptocurrencies are still subject to volatility and may not be the best investment for everyone. Before investing, be sure to do your own research and speak with a financial advisor to get the best advice for your individual situation
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