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Elon Musk’s Bitcoin Sentiment Is Wrong

Elon Musk Bitcoin

Rate this post About a fortnight ago, May 12 to be exact, Elon Musk dropped a sucker-punch on the Crypto markets when he took to Twitter to announce that his company Tesla had stopped vehicle purchases using Bitcoin. Concerns about the “rapidly increasing use of Fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel”, were sighted by Elon for this decision. The world’s richest man went on to say that, “Cryptocurrency is a good idea on many levels” and he and his company “believe it has a promising future, but this cannot come at a great cost to the environment”. Tweet by Elon Musk Sends Bitcoin Into A Downward Spiral This Twitter announcement sent the market into a selling frenzy as traders started to dump Bitcoin because people interpreted the announcement as Tesla looking to sell its Bitcoin holdings. The top cryptocurrency was down by 38.3% and the whole market lost over $800b and is still struggling to recover from that dump, with Bitcoin currently trading around the $40,000 range.  To back his tweet, Elon pointed to research by Cambridge University that showed Bitcoin’s electricity consumption increasing this year. While Elon isn’t entirely wrong about the energy concerns surrounding Bitcoin, there are even bigger concerns about energy consumption when it comes to Bitcoin’s direct rival; the traditional finance industry and I’ll talk about them in this article.  One major concern is how studies have shown that the traditional banking sector uses 2x the energy Bitcoin mining does. Let’s delve more into this.  According to a recently released study by Galaxy Digital, a Cryptocurrency Investment firm, the energy consumption of the entire Bitcoin network is estimated at 113.89 terawatts per hour (TWh) and out of this, 99% comes from mining computers which carry out work that includes everything from pool power consumption to node power consumption to miner power consumption to energy for mine demand. While this may seem like a lot of energy, the figure is lower than that of the University of Cambridge Centre for Alternative Finance, which estimated Bitcoin’s energy consumption at 128 TWH as of March 2021. Both of these statistics though are less than half of what the traditional banking system consumes. Theirs is estimated at 263.72 TWH. While it is only electricity spent by miners to mine Bitcoin that can be considered for the bitcoin industry – because there is no energy usage in bitcoin transactions on exchanges -, energy usage by bank branches, card network’s data centers, ATMs, and banking data centers all contribute towards the energy use by the traditional finance sector. All of these are enshrouded in the all too ‘secretive’ way by which electricity consumption reports can be gotten for the traditional finance system. And this has made sure the energy consumed in the industry has been kept under wraps for years now. Compare this to bitcoin which offers final settlement and reports are gotten in a straightforward manner because of its transparency. As I have already hinted, the banking system does not do the same. They require multiple settlement layers and do not report electricity consumption directly. Also, miners are starting to look at using green energy (renewable energy) for mining as it’s getting a lot cheaper to produce them. This will result in Bitcoin mining having an even smaller carbon footprint and less harm to the environment. A lot more effort in adopting greener energy than can be said for the banks. Places like Iceland and the province of Sichuan in China are known to attract miners due to their cheap electricity and rich hydropower resources. Last month, amidst all of the arguments about Bitcoin causing carbon emissions and leading to degradation of the environment, Square, the fintech company owned by Twitter chief Jack Dorsey, and Cathie Wood’s Ark Invest released a whitepaper where they argued in favor of Bitcoin mining. In the paper, they made salient points as to how the asset will actually drive renewable energy innovation. Elon should have read that paper.  If you ask me, I’d say it also stinks a bit like hypocrisy if Elon Musk is talking about sustainable energy when SpaceX isn’t exactly practicing sustainable energy with its rockets as they continue to use rocket fuel.  GoMining Token (GMT) Looking to Solve the Problem of Mining Mining Bitcoin isn’t an easy job and this is why not a lot of investors are into it. Complexities as a result of the high cost of buying equipment, installation of this equipment, delivery to a data center, connection to a stable and fast network, and all of the other technical complexities of mining prevent non-professional investors from making forays into mining. The GoMining token however has stepped in to solve these problems with a simple but very … Continued

The post Elon Musk’s Bitcoin Sentiment Is Wrong appeared first on Cryptoknowmics-Crypto News and Media Platform.

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About a fortnight ago, May 12 to be exact, Elon Musk dropped a sucker-punch on the Crypto markets when he took to Twitter to announce that his company Tesla had stopped vehicle purchases using Bitcoin. Concerns about the “rapidly increasing use of Fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel”, were sighted by Elon for this decision. The world’s richest man went on to say that, “Cryptocurrency is a good idea on many levels” and he and his company “believe it has a promising future, but this cannot come at a great cost to the environment”.

Tweet by Elon Musk Sends Bitcoin Into A Downward Spiral

This Twitter announcement sent the market into a selling frenzy as traders started to dump Bitcoin because people interpreted the announcement as Tesla looking to sell its Bitcoin holdings. The top cryptocurrency was down by 38.3% and the whole market lost over $800b and is still struggling to recover from that dump, with Bitcoin currently trading around the $40,000 range. 

To back his tweet, Elon pointed to research by Cambridge University that showed Bitcoin’s electricity consumption increasing this year.

While Elon isn’t entirely wrong about the energy concerns surrounding Bitcoin, there are even bigger concerns about energy consumption when it comes to Bitcoin’s direct rival; the traditional finance industry and I’ll talk about them in this article. 

One major concern is how studies have shown that the traditional banking sector uses 2x the energy Bitcoin mining does.

Let’s delve more into this. 

According to a recently released study by Galaxy Digital, a Cryptocurrency Investment firm, the energy consumption of the entire Bitcoin network is estimated at 113.89 terawatts per hour (TWh) and out of this, 99% comes from mining computers which carry out work that includes everything from pool power consumption to node power consumption to miner power consumption to energy for mine demand.

While this may seem like a lot of energy, the figure is lower than that of the University of Cambridge Centre for Alternative Finance, which estimated Bitcoin’s energy consumption at 128 TWH as of March 2021. Both of these statistics though are less than half of what the traditional banking system consumes. Theirs is estimated at 263.72 TWH.

Elon Musk Bitcoin Sentiment

While it is only electricity spent by miners to mine Bitcoin that can be considered for the bitcoin industry – because there is no energy usage in bitcoin transactions on exchanges -, energy usage by bank branches, card network’s data centers, ATMs, and banking data centers all contribute towards the energy use by the traditional finance sector.

All of these are enshrouded in the all too ‘secretive’ way by which electricity consumption reports can be gotten for the traditional finance system. And this has made sure the energy consumed in the industry has been kept under wraps for years now. Compare this to bitcoin which offers final settlement and reports are gotten in a straightforward manner because of its transparency. As I have already hinted, the banking system does not do the same. They require multiple settlement layers and do not report electricity consumption directly.

Also, miners are starting to look at using green energy (renewable energy) for mining as it’s getting a lot cheaper to produce them. This will result in Bitcoin mining having an even smaller carbon footprint and less harm to the environment. A lot more effort in adopting greener energy than can be said for the banks. Places like Iceland and the province of Sichuan in China are known to attract miners due to their cheap electricity and rich hydropower resources.

Last month, amidst all of the arguments about Bitcoin causing carbon emissions and leading to degradation of the environment, Square, the fintech company owned by Twitter chief Jack Dorsey, and Cathie Wood’s Ark Invest released a whitepaper where they argued in favor of Bitcoin mining. In the paper, they made salient points as to how the asset will actually drive renewable energy innovation. Elon should have read that paper. 

If you ask me, I’d say it also stinks a bit like hypocrisy if Elon Musk is talking about sustainable energy when SpaceX isn’t exactly practicing sustainable energy with its rockets as they continue to use rocket fuel. 

GoMining Token (GMT) Looking to Solve the Problem of Mining

Mining Bitcoin isn’t an easy job and this is why not a lot of investors are into it. Complexities as a result of the high cost of buying equipment, installation of this equipment, delivery to a data center, connection to a stable and fast network, and all of the other technical complexities of mining prevent non-professional investors from making forays into mining.

The GoMining token however has stepped in to solve these problems with a simple but very efficient solution. GoMining is a professional mining company that was founded by international investors in 2017. The company spends most of the earned money on the construction of new data centers, the purchase of equipment and the development of infrastructure. The GoMining token is backed by real assets, with a daily income payment in Bitcoin (BTC) to its owners. 

Some of the headaches this token solves for you as an investor is it

  • Constructs and maintains data centers and high voltage infrastructures. 
  • Purchases equipment and arranges international logistics of that equipment. 
  • Sets up this equipment and develops software integrations with pools.
  • Services, maintains, and repairs these equipment when they develop faults. 
  • Build relationships with regional authorities and comply with legalities. 
  • Maintains legal support for clients.

As a GMT holder, you don’t have to think about purchasing equipment, setting it up, maintaining and upgrading it, and being involved in the bureaucratic process of mining. All of these are done for you by the GMT service centers. The token, unlike the mining equipment, is a highly liquid asset. You can sell it in just a few minutes. In other words, it doesn’t suffer from all the problems getting mining equipment gives you. 

GMT holders, just like it is when you mine bitcoin, earn profit that is paid out directly to the holder’s wallet from the pool. So, imagine holding an asset that is exchange-tradable, and at the same time brings you passive income on a daily basis. This is what GoMining token is offering.

And among other things, 80% of GMT’s electricity comes from environmentally friendly sources such as wind and hydroelectric power. “Elon, you’re wrong,” the company confidently declares on its social networks. 

Elon is silent, but the discussion has only just begun.

READ  S&P 500 SPY IWM QQQ XLF XLV XBI VIX Oil NatGas Technical Analysis Chart 5/28/2019 by ChartGuys.com

#Bitcoin #Cambridge University research #Elon Musk #GoMining Token #Tesla

Source: https://www.cryptoknowmics.com/news/elon-musks-bitcoin-sentiment-is-wrong/

Blockchain

PayPal and Visa Lead $300M Funding for Blockchain Capital

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Blockchain Capital remains a major tech backer in the DLT space with investments in numerous crypto and DLT projects.

Fund V with $300M Funding

According to a press release published on Monday (June 22, 2021), Blockchain Capital has closed funding for its Fund V LP. The capital raise reportedly drew participation from several high-profile backers including global payment giants Visa and PayPal.

Capped at $300 million, Blockchain Capital’s latest fund was oversubscribed likely pointing to the continued appetite for DLT-related funding despite the current crypto market downturn. Apart from Visa and PayPal, university endowments, hedge funds, family offices, and pension funds also participated in the capital raise.

Bart Stephens, co-founder and managing partner at Blockchain Capital commented on the closure of the fifth VC fund, stating:

“We are incredibly honored to welcome a world class group of investors into Fund V who appreciate the value of a firm dedicated to a single industry. As founders ourselves, we know how hard it is to build companies, protocols and, indeed, a whole new industry.”

Spokespersons for both Visa and PayPal stated that their support for Blockchain Capital was part of efforts to boost innovation in digital finance. According to Jose Fernandez da Ponte, vice president and general manager of blockchain, crypto and digital currencies at PayPal:


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“Investing in Blockchain Capital’s new fund allows us to engage with the entrepreneurs driving the future of the decentralized economy and the new wave of financial services.”

Serial Blockchain Backer

Blockchain Capital is a serial investor in the crypto and DLT space. The company’s portfolio of projects cuts across several facets of the emerging industry including United States-based exchange giants like Coinbase and Kraken.

Blockchain Capital’s investment portfolio also extends to the decentralized finance market arena, backing projects like Aave, UMA, and Nexus Mutual.

Since securing about $2 million in funding from Blockchain Capital and other investors back in May 2018, OpenSea has been able to attract additional investments, including a $23 million injection as reported by CryptoPotato back in March.

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/paypal-and-visa-lead-300m-funding-for-blockchain-capital/

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Blockchain

Ethereum, MATIC, Solana Price Analysis: 22 June

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With a depreciation of 8.1% in 24 hours, the global crypto-market cap fell to 1.31 trillion at press time. Following Bitcoin’s footsteps, most altcoins in the market have been struggling within the bearish zone throughout the weekend. Ethereum and Solana, for instance, fell below their respective support levels. MATIC, on the contrary, while it moved south too, stayed above its support. 

Ethereum [ETH]

Ethereum failed to stay afloat above the $2,250 support level, with the alt trading at $1902 at press time. In case the coin doesn’t fall further, it could see resistance near $2055. The second-largest coin by market capitalization noted a decline of 27.2% over the past week. 

ETH’s charts pictured a bearish crossover on 15 June and despite the price recovering slightly on 20 June, the MACD’s histogram underlined bearish momentum. The Bollinger Bands diverged in the early hours of 21 June, meaning that there could be a hike in price volatility. 

The Chaikin Money Flow neared the equilibrium mark – A finding that predicted an even amount of capital outflows and inflows. Alas, at press time, capital outflows slightly exceeded inflows. 

MATIC

MATIC showed promising recovery from 12 June to 15 June post the crypto market crash. However, it failed to hold on to the same momentum and prices dipped soon after. Worth noting though that the alt had not breached its crucial support level of $1.04, unlike other altcoins, at the time of writing when MATIC was priced at $1.06. 

A slight dip in prices would mean that MATIC too would break past the $1.04 support level. The Bollinger Bands were observed to be diverging, a sign of steep price volatility in the near term.  

Finally, the MACD’s histogram gave bearish signals for the whole week while the Awesome Oscillator suggested that bearish momentum was building up. That being said, it did read a few scattered bullish trading sessions in between. 

Solana [SOL]

SOL breached its $31 support level in the last 24 hours and then broke past its $24 support level too. It was priced at $23.66, at the time of writing. The alt somehow had managed to recover briefly in the last 48 hours, however, it did see a decline of 24.1% soon after. 

The market has been seeing intense selling pressure over the last few days. At press time, the coin had fallen below the 30-mark on the Relative Strength Index, a development which meant that the alt had hit the oversold and undervalued zone. 

The Awesome Oscillator suggested that bearish momentum was continuing to build up on the charts. Finally, the widening of the Bollinger Bands projected a hike in price volatility. 


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/ethereum-matic-and-solana-price-analysis-22-june

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Blockchain

ZkTube Partners With Mo Works to Expand Global Outreach

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ZkTube Partners With Mo Works to Expand Global Outreach

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ZkTube, a scaling solution built to offer safety, low gas fees, and optimal zero-knowledge proof mining, has announced a new partnership with Mo Works in a recent report, following a global expansion plan.

Mo Works is a Melbourne-based leading digital solution provider. Its collaboration with ZkTube happened after the company appointed Mo Works founder and director, Mo Hamdouna as their global marketing advisor.

Mo Works Backs ZkTube on Its Adventure For a Global Expansion

ZkTube seeks to scale and support blockchain transaction capacity and project while retaining the Defi performances of a distributed protocol. It is basically aimed at promoting the global market.

Following the partnership, Mo Works has agreed to bring its exclusive experience in the cryptocurrency industry to help kick the global growth of zkTube in an accelerating mode.

Considering the functionality of the partnering companies, the collaboration will cause an integration between both communities as Mo Works will begin to provide support for ZkTube’s launch of strategic community engagement programs. Thereby, enriching and exploring the performances of both companies all around the globe.

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Mo Hamdouna expressed excitements on his new appointment saying; 

“zkTube has a sophisticated, intelligent, and experienced team who will be disrupting the blockchain payment network industry with a technology solution that offers excellent safety, low gas fee, and optimal POS mining. I am very happy to work with their team on their project and look forward to a great year launching their solution.”

ZkTube’s aim to join efforts with Mo Works to raise a global community that will fully facilitate ZkTube’s marketing strategy and expansion plans towards the global launch is becoming a reality.

The founder of ZkTube affirmed this saying;

“the strategic partnership of Mo Works and zkTube will be instrumental in the overall development of the global marketing. But, more importantly, with Mo Works, our partnership will allow us to widen our community globally.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://zycrypto.com/zktube-partners-with-mo-works-to-expand-global-outreach/

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