The news that caught the market’s attention this week was without a doubt Elon Musk’s purchase of Twitter for a sum of $ 44 billion. If ratified, it will take the social network out of the Wall Street world and bring it back into the private sphere. Opinions of any kind abound and vary greatly in their relevance. One thing is for sure though, if only the future will guarantee the image that the company will get during Musk’s reign, a promise will be practically ignored and nevertheless represents in our eyes the key point to remember. Musk has promised to make the network’s algorithms open source, which in addition to future moderation policies will provide greater transparency and confidence in the various messages conveyed. This is certainly reminiscent of the philosophy behind cryptocurrencies and general decentralization.
The CEO of Coinbase, who was never stingy with comments, also welcomed the announcement. “That Elon is buying Twitter is a big win for free speech and is likely to change the course of the world more than most people are aware of,” tweeted Brian Armstrong. “Twitter is upstream of media and culture in many ways, and it was heading in a very dangerous direction in terms of censorship.” He adds that he “hopes that twitter can be converted to a decentralized protocol over time, which would be the ultimate protection against further co-optation.”
Fresh news from New York as the state assembly has just passed a two-year moratorium on cryptocurrency mining. Although the bill does not propose a direct ban on mining, it would prevent mining companies from renewing their operating licenses if these operations are powered by fossil fuels. According to the bill, this also means that new permits are not approved either. The aim would be to lead the industry towards a mandatory use of green energy to power it. The project is now facing a vote in the Senate.
Now, in environmental terms, it is encouraging to see that the global bitcoin mining sector has increased its sustainable energy mix by around 59% year-on-year. The latest report from Bitcoin Mining Council shows, in fact, that the mining industry is rapidly absorbing sustainable energy. The council is a group of 44 bitcoin mining companies that claim to represent 50% of the global network, or 100.9 exahash (EH). It released a new report on Monday. According to the document, 64.6% of the energy used by councilors is environmentally responsible, compared to 58.4% for the whole market.
The report did not fail to compare the energy impact of the bitcoin mining industry with others that are particularly energy-intensive.
More working Americans may soon be able to put a portion of their 401 (k) retirement savings into bitcoin. Retirement savings giant Fidelity announced on Tuesday that it has launched a way for workers to put a portion of their savings and 401 (k) contributions directly into bitcoin, potentially up to 20%, all from the main account’s investment options menu. Fidelity said it was the first company in the industry to allow such investments without having to go through a separate brokerage window and that it had already recruited an employer who would add this offer to its plan later in the year.
this company? MicroStrategy, who else!
This week we have crossed the halfway line that separates us from the next halving. Remember that every four-year period, the reward associated with the discovery of a blockage among minors is reduced by half. As of this writing, 733,806 blocks have been discovered in the history of the network. A halving occurs for every 210,000 blocks. We have therefore crossed the 50% limit between the 3and and the 4thand bitcoin history halving. Why does it matter? Simply because bitcoin has historically risen significantly in price with each cycle. The supply is getting thinner and thinner, with the amount of bitcoins not yet created dwindling steadily. Keep in mind that 19 million of the 21 million bitcoins that never exist are already in circulation.
It was exactly 11 years ago yesterday that the mysterious creator of the protocol, Satoshi Nakamoto, sent his very last public message. Satoshi sent this message to Gavin Andresen, an early bitcoin developer, in response to Andresen talking about Satoshi in the media. “I want you to stop talking about me as a mysterious figure in the shadows. The press just makes it a topic of pirate currency. Maybe we should talk about the open source project instead and give more credit to the contributors. It helps motivate them. ” A reminder that from the first days, full and complete decentralization was the core of the project.
Bitcoin as inflation protection? If the properties of the asset make it an almost perfect vehicle, this reality is always slow to materialize. However, this does not prevent the various players from positioning themselves as such. In this connection, 21Shares has just launched a brand new exchange-traded product consisting of 81.5% gold and 18.5% BTC. “Gold has historically provided portfolio protection in inflationary environments, while bitcoin is the digital equivalent of gold,” said Charlie Erith, CEO of ByteTree, adding: “In a period of structural inflationary growth and increased geopolitical risks, we believe this can work. as an important risk and return diversifier in a balanced portfolio. “
Mike McGlobe, chief analyst and commodity strategist at Bloomberg, agrees. He wrote earlier this week:
«The rise of Bitcoin against the fall of fossil fuels: BI Crypto –
Russia’s invasion of Ukraine and China’s ban on cryptocurrency in 2021 may mark a paradigm shift that illustrates the risk of autocratic and old guard societies falling behind. In a digital world, bitcoin is becoming a global security, and most investors are just starting to move from zero allocation. The quantity is limited, especially compared to crude oil, which has a high elasticity in supply and demand, and which has been replaced by new technologies. Bitcoin appears to be in a sustainable bull market, but is facing a more short-term downturn as the Federal Reserve faces the highest inflation in about 40 years.
We see $ 100,000 in bitcoin as a matter of time in most scenarios, inflation or deflation. The acceleration of funds leaving the US for Bitcoin ETFs is expected to spur regulatory avenues and the launch of similar investment instruments in the country. »
In the short term, however, the link between US tech stocks and bitcoin is clearer than ever. Yesterday’s 4% drop in the NASDAQ index once again pulled bitcoin down, this time below the $ 40,000 mark. We have also started to switch to a defensive position in the fund. Although this connection can not be ignored, NASDAQ is technically at an absolutely critical point and at the lowest level of the year. A new bearish wave seems plausible here. To this end, many analysts have long looked at the health of the group nicknamed FAANG or the five giants made up of Facebook, Apple, Amazon, Netflix and Google. The latter missed its financial forecast yesterday after Facebook and Netflix had already done so in the past. In short, all of these companies have seen their prices “stick”, with only Amazon and Apple remaining out of the correction range. The first quarter financial results for these two companies will be announced tomorrow. In short, the market appears in a pivot zone, where there may be more pain on the menu before a turn. It is not to mention the strength of the US dollar – historically inversely correlated with the price of bitcoin – reached levels not seen since the start of the pandemic in the spring of 2020.
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Disclaimer: This column does not necessarily reflect the opinion of CryptonewsFR and does not constitute investment advice or trading instructions..
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