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Chinese Crypto Mining is Economically Efficient, Argues Canaan CEO

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Chinese crypto mining equipment producer Canaan is arguing against the indiscriminate crackdown on cryptocurrency mining in China, citing the industry’s economic efficiency.

Cryptocurrency mining is an energy-intensive process, largely powered by fossil fuels in China, which are holding back Beijing’s green efforts. However, Canaan CEO Zhang Nangeng said in an earnings conference call that those powered by clean energy should be spared. He argues that crypto mining is actually highly economically efficient, using excess energy and providing jobs.

“For-profit miners prefer regions with low electricity prices that indicate oversupply, and likely energy waste,” Zhang said, adding that “bitcoin miners also help create jobs in impoverished regions and contribute to fiscal coffers.”

Crypto mining crackdown

The comments come in light of China’s State Council decision to crack down on energy-intensive bitcoin mining and trading. Meanwhile, in the major mining center of Inner Mongolia, there are proposed measures to halt mining operations. Additionally, energy regulators in the hydropower-rich Sichuan region recently met local power generators to probe crypto mining.

In addition to not utilizing its economic efficiencies, the crackdown has had the additional negative effect of nudging business overseas. In addition to this caveat, the Canaan CEO added that clients were also holding off new orders for mining equipment. On the other hand, the crackdown has caused some miners to “undersell” their equipment, making it cheaper to acquire. According to Zhang, prices of bitcoin mining machines are down 20%-30% from roughly a month ago.

Canaan’s expansion abroad

In order to account for this regulatory uncertainty, Canaan has expedited its own expansion overseas. In its recent earnings report, Canaan detailed that 78.4% of its total revenues came from overseas markets. The company reported a near 500% surge in first-quarter sales to 402.8 million yuan ($63.12 million).

Foreign clients include Canada’s Hive Blockchain Technologies, and U.S.-based Core Scientific, which accounts for over 70% of its total orders. The hardware company is also expanding into bitcoin mining itself. It recently established an office in Singapore and is preparing to launch a crypto mining business in Kazakhstan.

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Nick is a data scientist who teaches economics and communication in Budapest, Hungary, where he received a BA in Political Science and Economics and an MSc in Business Analytics from CEU. He has been writing about cryptocurrency and blockchain technology since 2018, and is intrigued by its potential economic and political usage. He can best be described as an optimistic center-left skeptic.

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Source: https://beincrypto.com/chinese-crypto-mining-economically-efficient-canaan-ceo/

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Anthony Pompliano Shares His Thoughts On The Bitcoin Downturn

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Bitcoin crashes 20% leading to blood in the streets. A bounce at $28.8k during early evening GMT was followed by a strong surge taking BTC back above $30k.

The $30k-$31k zone has proven to be strong support over the past month or so. But can Bitcoin close the day above this level?

Currently, market sentiment is in extreme fear. But in an attempt to settle the anguish, Bitcoin-bull Anthony Pompliano tweeted his thoughts on the situation and what he’s doing at the present time.

Pompliano Takes A Long-Term Bitcoin Outlook

By his own admission, Pompliano states he’s an “atrocious trader” and doesn’t look to time markets. Instead, given his long-term view on Bitcoin, and a belief it will increase in value over time, his strategy is to accumulate by dollar-cost averaging in.

“I‘m not a trader. I don’t look at charts and I don’t try to time markets. If anything, I’m an atrocious trader who is guaranteed to lose 🙂 I have a very long-term view of the asset and believe it will continue to accrue value and adoption over the next few decades.”

Pompliano explains that this means buying Bitcoin at regular intervals, regardless of its price. This might mean buying when the price is high, or when it’s low. The overriding factor, as he puts it, is “time in the market is more important than timing the market.

Taking all of this into account, short-term dips are of no concern because one day he intends to hand his Bitcoin to his grandchildren.

For that reason, Pompliano spins the current market dip into a positive situation, in that, it enables him to aggressively accumulate.

But What About The Short-Term Picture?

Regardless of the long-term view, what will happen in the near future is of concern to many people.

Analysis of longs vs. shorts shows traders are overall long at a ratio of 7:3. Of the three platforms concerned, Bitfinex traders are overwhelming long with only 9% of trades short. Whereas BitMEX traders are pretty much evenly split with a slight bias to the shorts.

Bitcoin longs vs. shorts

Source: blockchainwhispers.com

Technical analysts are posting mixed ideas. Wicktator believes the current support zone will hold, triggering an impulse move higher to $100k.

“Anticipating the next bull run to surpass the all time highs!

Entry: On lower timeframe, wait for the break of the descending trendline to break and get your entries in and stops below the low.

Goodluck and Trade safe!”

Bitcoin TA

Source: TradingView.com

noted bullish divergence on the RSI, which may point to a reversal. However, given the intensity of the breakdown since mid-month, he concludes instability in the markets. In turn, he expects a pullback of between 10%-15% in the short to medium term.

Bitcoin TA

Source: TradingView.com

The coming days and weeks will be a real test for those who claim to have diamond hands.

Source: https://bitcoinist.com/anthony-pompliano-shares-his-thoughts-on-the-bitcoin-downturn/?utm_source=rss&utm_medium=rss&utm_campaign=anthony-pompliano-shares-his-thoughts-on-the-bitcoin-downturn

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Bitcoin Fundamental Tool Produces Worst Reading Since the Bull Run Began

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Bitcoin has given the worst Puell Multiple since this bull run began. The coin has been on a downward spiral lately. News of crackdowns out of China. Miners having to find alternate locations for their activities. Mining facilities are airlifting their mining rigs out of China to the U.S. China also issued a ban on digital currency transactions. The country ordered banks to block all transactions involving crypto.

There have been record crypto liquidations taking place. With approximately $1 billion pulled out of the market overnight. Crashing prices along the way. A culmination of these events has led to the worst Puell Multiple reading in recent months.

Related Reading | Over 3 Metric Tons Of Bitcoin Mining Rigs Airlifted Out Of China

This has dragged the Puell Multiple down to a staggering 0.81. The lowest it has ever been in eight months.

The Puell Multiple is the ratio of the daily value of the issued coin in USD divided by 365 days moving average of the daily value of issued coins in USD.

Bitcoin Hash Rate Falls

With so many miners out of commission in China, the bitcoin hash rate has fallen dangerously low. The hash rate for BTC has been below 105 billion for two days in a row. The seven-day average dropped down to 129.1 million exahashes on Tuesday.

the total computational power used to secure transactions on the blockchain is the bitcoin hash rate.

This is the lowest that the hash rate has been in over six months.

Bitcoin chart from TradingView.com

Bitcoin price falls as hash rate falls | Source: BTCUSD on TradingView.com

This is a direct result of the ban on crypto mining in China. Entire regions have shut down their mining farms. With the remaining mining farms in other regions poised to follow suit. Sichuan’s initiative making the list for the clampdown of mining operations.

State-run electricity companies have been asked to make sure that no crypto activities are being carried out.

Number Of Daily Issued BTC Falls

The number of daily issued bitcoin has fallen.

The number of bitcoins mined per block fell to 6.25 after the last halving. With about 144 blocks mined each day, this added up to about 900 bitcoins mined each day.

Related Reading | Clean Bitcoin Mining Solutions Grow Thanks To Ongoing China Crackdown

With the recent crackdowns on mining, the number of BTC issued each day has fallen. This is due to the fact that a lot of miners are offline. So, this means that not enough blocks are being hashed. Due to not enough computational power only to solve the complex equations required to process bitcoin transactions.

Roughly 700 bitcoins were issued into the market in the last 24 hours.

This number translates to a 22% decreased in the number of bitcoins mined.

This leaves a lot of uncertainty in the market regarding the future of the coin. And the market in general.

Featured image from Nairametrics, chart from TradingView.com

Source: https://bitcoinist.com/bitcoin-fundamental-tool-produces-worst-reading-since-the-bull-run-began/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-fundamental-tool-produces-worst-reading-since-the-bull-run-began

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SEC Puts $7.6 Million Fine on Crypto Invention Database

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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source: https://cryptobriefing.com/sec-puts-7-6-million-fine-on-crypto-invention-database/

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