New Report Shows Why Bitcoin Will Probably Never Be A Viable Form Of Currency

A new study has shown that every single Bitcoin transaction, even buying a Flat White, consumes at least $100 of electricity.

The study was done by MoneySuperMarket and calculated the kWh transaction cost for various cryptocurrencies including Bitcoin, Ethereum Cash, Bitcoin Cash, Litecoins, Ethereum 2.0, Litecoin, Ethereum Cash, Litecoins, Ethereum 2.0, Dogecoin, and XRP.

For those who believe Bitcoin will be useful as a future transaction tool, the most alarming aspect of the study was this: Even small transactions like purchasing a chocolate bar or paying for lunch at the cafe require substantial amounts of electricity.

According to the report, each Bitcoin transaction consumes 1,173-kilowatt hour of electricity. This means that the average UK home could be powered for three months with an energy cost of approximately PS125 ($173) based on a fixed price of PS0.11 ($0.148/kWh), according to the study’s authors.

The authors also note that the U.S. equivalent would be approximately 6 weeks of electricity based upon an average household electricity consumption of 877 kWh per monthly (U.S Energy Information Administration).

Based on the 12 months of Bitcoin transactions, we calculate that the total energy consumption to be approximately 123 Terawatt hours (TWh), or 123 Billion kWh. This is equivalent to Norway’s annual energy consumption.

It is clear that Bitcoin will be used in the future as a store-of-value and an inflation hedge (much like gold), but not as a daily transaction tool.

While it is certainly a worthy competitor to the Grand Daddy in crypto markets, faster and more energy-efficient coins such as Ripple and Cardano (or if Elon Musk or Mark Cuban have their way, Dogecoin) and new coins that can even outperform the aforementioned sustainable currencies at their own game are likely to be used for transaction/currency purposes.

Bitcoin tops $60,000 for first time in six months as traders bet on ETF approval

Bitcoin surged above $60,000 on Friday as traders speculated that U.S regulators would approve the first bitcoin futures exchange traded fund.

According to Coin Metrics the world’s largest cryptocurrency rose more than 8% to $62,307 – its highest level since April. 17.

According to a source familiar with the matter, the Securities and Exchange Commission will allow trading to begin next week for the first U.S. Bitcoin futures exchange traded funds. This is a significant victory for a crypto industry that has been seeking permissions from Wall Street’s top regulator.

The person stated that the SEC is unlikely to block ETFs suggested by ProShares and Invesco. These ETFs are based upon futures contracts and were submitted under mutual fund guidelines, which SEC Chairman Gary Gensler believes offer investors substantial protection.

ProShares Bitcoin Strategy ETF is scheduled to make its debut at the New York Stock Exchange Tuesday. Experts believe that the SEC will not object to the product.

Last trading of the CME October futures contract was $60,570. This is an increase of about 4%.

The approval of an ETF that allows mainstream investors to access bitcoin would be a significant milestone for the crypto industry. It has been long pushing for greater acceptance for digital assets on Wall Street.

“The ETF news is being price in with the market anticipating an approval on Monday. CNBC’s Vijay Ayyar, Asia Pacific head at Luno cryptocurrency exchange, said that this is pushing the price up.

Ayyar warned that bitcoin could be sent to the ground if ProShares’ product is rejected.

Mikkel Morch (executive director of digital asset hedge fund ARK36) said that bitcoin could rise above its April high of near-$65,000 but warned that the cryptocurrency might experience a’short term pullback’.

Morch stated that investors should be aware of the possibility that the hope for a sustained rally over the $60K barrier, and further through the previous all time high, could turn into a ‘buy the story, sell the news’ scenario.

ETF news Friday did not give a boost to all cryptocurrencies. Ether, which is the second-largest cryptocurrency, rose 0.5% on spot exchanges to $3,804 However, both XRP (and ada) were down around 2%.

This year has been a wild year for Bitcoin and other cryptocurrency. In April, the number one digital coin reached an all-time high of $64,000. However, it fell sharply after a crackdown in China on the cryptocurrency market. Since then, it has experienced a resurgence and more than doubled its price this year.

As investors have increased their interest in crypto, regulators have taken a more aggressive stance on the matter. However, the industry has been fighting back with coinbase on Thursday calling for the U.S. government to create a new regulator in order to oversee digital assets.

This week, the Bank of England Deputy Governor Jon Cunliffe warned that cryptocurrencies could lead to a global financial crisis of the same magnitude as 2008’s crash.

Cunliffe stated Wednesday that when something is happening in the financial system, it’s important for financial stability authorities to take notice.

 

Donald Trump on Crypto: ‘I Don’t Want Other Currencies Coming Out and Hurting the Dollar

In an interview with Yahoo Finance’s Adam Shapiro published Monday, Donald Trump, former President of the United States, commented on the rising popularity of cryptocurrency and China’s crackdown on crypto.

Trump was asked: “You have a relationship to the Chinese President Xi Jinping. What do you think Xi Jinping has been up to? Is this good news for the U.S., or a crackdown on crypto? He responded:

He may want to create his own currency, crypto or not.

Many others, including the famous author of ‘Rich Dad Poor Dad,’ Robert Kiyosaki have also expressed concern that China is cracking down crypto to make way for its central bank digital currency, the digital yuan. Some see the Chinese government’s anti-crypto move as a positive sign for the U.S., including many lawmakers. noted Congressman Patrick McHenry that China’s decision to limit access offers a perfect opportunity for American leadership in cryptocurrency.

Trump commented on the rise in popularity of cryptocurrency. He said that one reason we need to be careful is that there is a currency right now: the dollar. The dollar is a great currency. I am a huge fan of our currency. He emphasized:

I don’t want other currencies to hurt or devalue the dollar.

“And China is certainly no looking to support the dollar. They’re currently based on the dollar, and would likely have to remain that way unless they do something very stupid in their country, the former president stated.

Trump cited ‘the horror at the border’ as well as ‘the terror show of the Afghan withdrawal’. He stated that ‘the problem I have…is our country’s loss of credibility. Trump elaborated, “If you look at a dollar-based monetary system, if your credibility starts to wane, you will lose that strong monetary sector.” We must be careful.

Trump has been an outspoken critic of cryptocurrency and bitcoin. He tweeted that he was still against bitcoin and other cryptocurrency while he was president of the United States. Illegal behavior such as drug trading and other illegal activities can be made possible by unregulated crypto assets.

He stated that bitcoin “seemed like fraud” and that he wouldn’t invest in it. At that time, bitcoin’s price was $6,000 Based on data from Bitcoin.com markets, Bitcoin.co was trading at $49K as of the writing. Trump warned in August that crypto could be a ‘potentially disastrous disaster waiting to happen’.

China declares all cryptocurrency transactions illegal

China intensified its crackdown on crypto trading Friday. They pledged to eradicate ‘illegal’ activity, hitting Bitcoin and other major currencies, and urging crypto and blockchain-related stocks.

In a joint statement, ten Chinese government agencies, which include the central bank, as well as foreign exchange and securities regulators, stated that they would cooperate closely to keep a ‘high pressure’ clampdown on cryptocurrency trading.

According to the People’s Bank of China, cryptocurrencies cannot circulate on markets like traditional currencies. Additionally, overseas exchanges are prohibited from offering services to mainland investors via internet.

The PBOC also prohibited financial institutions, payment companies, and internet firms from facilitating cryptocurrency trades.

These moves follow a May vow by China’s State Council (or cabinet) to crack down bitcoin mining and trading in an effort to reduce financial risk. This led to a significant sell-off in cryptocurrencies.

According to the PBOC, the Chinese government will’resolutely clampdown on virtual currency speculation and related financial activities and misconduct in order to protect people’s property and maintain economic, social, and financial order.’

The latest move saw bitcoin, the largest cryptocurrency in the world, drop over 6 percent to $42,2167. It had previously been down around 1%.

Coins smaller than bitcoin also fell, as they tend to rise and fall with bitcoin. Ether dropped 10 percent, while XRP fell a similar percentage.

Joseph Edwards, Head of Research at Enigma Securities, London, said that there is a sense of panic. “Crypto is still legal in China in a gray area.”

This move also affected cryptocurrency and blockchain-related shares.

Premarket trading saw Bit Digital, Marathon Digital, and Riot Blockchain, U.S.-listed miners, slip between 6.3 percent to 7.5 percent China-focused SOS fell 6.1 percent, while San Francisco’s crypto exchange Coinbase Global dropped 3.4 percent.

According to the National Development and Reform Commission (NDRC), it is launching a nationwide clean-up of cryptocurrency mining. It stated that such activities do not contribute to China’s economic growth and are a source of risks. They also consume large amounts of energy and hinder carbon neutrality goals.

The NDRC stated in a notice to local authorities that it is an ‘imperative to eliminate cryptocurrency mining. This task is crucial to promoting high quality growth in China’s economy.

Before the crackdown began earlier this year in China, virtual currency mining was a huge business. It accounts for more than half the world’s crypto supply.

According to the NDRC, it will collaborate with other government agencies to ensure that financial support and electricity supply are not cut off for mining. The national planning body urged local governments for a timetable and road map to end such activities.

Local governments had previously placed restrictions that paralyzed the mining industry. Miners abandoned their machines in despair and sought refuge in Texas or Kazakhstan.

What Is the ‘Golden Cross,’ and Why Are Bitcoin Investors Obsessed With It?

Many Bitcoin investors love looking at price charts and seeing the coveted ‘golden cross’. The ‘death crossing’, which is its dark counterpart, can also be a source of concern for YOLO-est investors.

Although cryptocurrency is relatively new, price charts are one of Wall Street’s oldest and most unusual trading strategies. It allows you to look for patterns in the up-and-down movements of prices. This controversial strategy is also the most debated. While some believe price patterns provide valuable information, others dismiss it as investing’s equivalent of astrology or tarot cards.

Strategists believe that Bitcoin market followers cannot ignore the hype surrounding a pattern on Bitcoin charts known as the “golden cross” regardless of their views on technical analysis. Talk about the indicator on specialist Web pages like CoinDesk or Cointelegraph could help to catalyze greater upward momentum, even if it is a self-fulfilling prophecy.

The trade of cryptocurrencies is ‘extremely technical’ because they don’t know what else to trade on. Mark Arbeter publishes a newsletter that analyzes the charts of various securities and indexes. “You cannot pick up an annual, quarterly, or any other kind of report and do a fundamental analysis.

What is charting?

Since Charles Dow’s 1884 publication of the Dow Jones Transportation Average, investors have been trying to find wider trends in financial markets. They chart prices and look for other indicators like trading volume and price movement averages. Technical analysts create trend lines on price charts based on these indicators in order to find turning points. These points can be broadly classified as:’support’ spots, where bounces are more likely to occur during selloffs; or’resistance’ spots, where rallies tend not to continue; or ‘breakouts’ and ‘breakdowns spots, where momentum should move in one direction.

Moving averages and momentum indicators are the most popular chart trends in cryptocurrency. They’measure the speed of either the up-trend, or the downtrend,’ says Arbeter. Arbeter. Moving averages can be either simple or exponential, with the former giving more weight to prices of recent years. The concept is simple: Take the daily price of a security, index or commodity over a specified period and add them all together. Divide by the number trading sessions.

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How the death cross/golden cross should work

Chart lines that track moving averages, which form the bullish “golden cross” and bearish “death cross”, trace the simple 50-day as well as the 200-day moving mean of a stock or cryptocurrency over a longer period of time.

Bitcoin recorded the “death cross” in July. This indicates that the short term trend, expressed as the 50-day moving mean line, had accelerated downward by crossing under the long-term trend line (the 200-day moving mean). This was supposed to signal a break in the long-term upward trend, which began in March 2020. As it turned out, Bitcoin started a new rally in July.

The bullish side is called the golden cross. It occurs when the 50-day moving mean breaks above the 200 day moving average. Bitcoin was just a few days away from a golden cross, as of Sept. 6, according to CoinDesk. The 200-day moving average was at $46,100, and the 50-day was close to breaking that mark after a string above $50,000. The second week of September saw Bitcoin prices fall. Technical analysts believe that this would be the first time the gold cross appeared on a bitcoin chart for more than a decade. This suggests a breakout to a more dramatic rally.

Is the golden cross actually worth it?

Arbeter, who started following stock charts on Wall Street in the week prior to the Black Monday, October 19, 1987, crash, said that there are many traders and algorithms that follow the Standard & Poor’s 500’s 200-day moving averages.

Arbeter says, “If you look back 100 years in time and see uptrends in major indexes, you will see that the 50-day worked back then…it is just something people pay attention too.”

Arbeter states that the indicators on the wild bitcoin chart are not as reliable. The July ‘death crossing’ marked an end to the downward trend and not an intensification.

The golden cross can still provide a reassuring signal for newcomers, according to Edward Moya (senior market analyst at OANDA), who specializes in foreign exchange. Charts have a lot of influence in this market. Moya sees a 50-day moving mean above 200-day as a sign that the short-term upward momentum has strengthened, decreasing the chance of a sudden crash.

Moya says that bitcoin is a place where you can see 20 percent plunges from nowhere and extreme drawdowns exceeding 50 the gold cross “relieves the concern that you’re trying catch a falling knife in one of those panic-selling frenzy frenzies.”