Ripple price failed near the $0.3370 level and declined below the $0.3250 support against the US dollar.The price traded to a new weekly low at $0.3134 and remains at a risk of more losses in the short term.There is a major bearish trend line formed with resistance near $0.3285 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair could extend the current decline and it may even revisit the key $0.3000 support area.Ripple price failed to gain bullish momentum against the US Dollar and bitcoin. XRP declined below $0.3220 and it may continue to decline towards $0.3000 before completing a correction.Ripple Price AnalysisYesterday, we saw a strong buying interest above $0.3200 and ripple price recovered above $0.3280 against the US Dollar. The XRP/USD pair even broke the $0.3350 level, but it failed to clear the $0.3370 level. It seems like the price struggled to settle above the $0.3350 level and the 100 hourly simple moving average. As a result, there was a fresh decline below $0.3280 and $0.3250. The price even broke the $0.3220 and $0.3200 support levels. A new weekly low was formed at $0.3134 and the price settled well below the 100 hourly simple moving average.At the moment, the price is correcting higher above $0.3150. It broke the 23.6% Fib retracement level of the recent decline from the $0.3326 high to $0.3134 low. However, there are many resistances on the upside, starting with $0.3220 and $0.3230. The 50% Fib retracement level of the recent decline from the $0.3326 high to $0.3134 low is also near $0.3230. Above $0.3230, the 100 hourly SMA could prevent gains above $0.3250. There is also a major bearish trend line formed with resistance near $0.3285 on the hourly chart of the XRP/USD pair.Therefore, the price is likely to struggle between $0.3250 and $0.3280 in the short term. If bulls fail to surpass the trend line and $0.3300, there are chances of a fresh decline. An initial support is near the recent low at $0.3130, below which the price may revisit the $0.3100 level. However, the main support is at $0.3000, where buyers are likely to appear.Looking at the chart, ripple price is showing bearish signs below the $0.3250 and $0.3280 levels. A clear break and close above $0.3300 is needed for a change in trend to bullish in the near term.Technical IndicatorsHourly MACD – The MACD for XRP/USD might move back in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD recovered recently from 25 and it is currently at 40.Major Support Levels – $0.3130, $0.3100 and $0.3000.Major Resistance Levels – $0.3250, $0.3280 and $0.3300.
Archives for April 15, 2019
ETH price failed to clear the $170 resistance and extended losses against the US Dollar.The price declined to a new weekly low at $155 before correcting above the $160 level.There is a key bearish trend line in place with resistance at $166 on the hourly chart of ETH/USD (data feed via Kraken).The pair could dip again, but buyers are likely to take a strong stand near $155 or $150.Ethereum price extended losses recently versus the US Dollar and bitcoin. ETH might remain under pressure in the short term, but it will most likely bounce back from $155 or $150.Ethereum Price AnalysisYesterday, we saw a decent rebound in Ethereum price above the $165 and $166 levels against the US Dollar. The ETH/USD pair even tested the $170 level, where sellers emerged and protected more upsides. There was a topping pattern formed near $170 and later the price started a fresh decline. It broke the $165 and $160 support levels to enter a bearish zone. The decline was such that the price even broke the last swing low at $160 and settled below the 100 hourly simple moving average.A new weekly low was formed at $155 before the price started a fresh rebound. It recovered above the $160 level and the 23.6% Fib retracement level of the recent decline from the $170 high to $150 low. An immediate resistance is near the $162-163 area. It represents the 50% Fib retracement level of the recent decline from the $170 high to $150 low. Besides, there is a key bearish trend line in place with resistance at $166 on the hourly chart of ETH/USD.Therefore, if the price corrects higher above $163, it could face sellers near the $166 level. If bulls fail to push the price above the $166 resistance, there could be another decline. On the downside, there are two important supports near $155 and $150. As long as the price is above these supports, there could be a strong comeback above $165 and $170 in the coming days.Looking at the chart, Ethereum price is showing a few bearish signs below $166 and $170. Therefore, there are high chances of a downside push towards the $155 and $150 levels before a fresh increase. On the upside, a break above the trend line resistance might lead the price towards the $170 resistance area.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is currently placed in the bearish zone, with negative signs.Hourly RSI – The RSI for ETH/USD bounced back above 35, but it is well below the 50 level.Major Support Level – $155Major Resistance Level – $166
Is Coinbase going to solve the thorny challenges of proof-of-stake (PoS) blockchain governance or centralize those systems even further?
That’s the question experts in the space are pondering with the recent announcement that Coinbase Custody will offer staking support for Maker, Tezos and Cosmos. The move means institutional investors will be able to vote on blockchain governance matters directly through their Coinbase accounts.
“We’re hoping to bring online, frankly, the majority of institutional investors,” Coinbase Custody CEO Sam McIngvale told CoinDesk. “We’re growing these three assets under custody and hoping to see an increased turnout of these votes.”
That this is possible is because blockchains like Cosmos, Tezos and Maker rely on PoS to secure their networks, unlike proof-of-work chains like bitcoin and (for now) ethereum.
PoS relies on participants essentially buying into the blockchain’s decision-making council. In backing their votes with deposits – staking their claim with real assets – they often earn token rewards for fueling the network’s growth. But, in turn, these networks are beginning to face the same challenge democracies have grappled with for centuries:
How do we incentivize voting?
Lessons from Maker
This Coinbase Custody addition was driven by institutional demand, since few PoS token holders so far are actually participating in governance.
According to Becker, nearly 10 percent of Maker tokens were involved in a recent vote to hike fees related to ethereum-pegged stablecoin loans. While cryptocurrency researcher David Hoffman estimated only 0.58 percent of unique wallets holding Maker participated, Becker told CoinDesk the turnout was high among institutional holders that are able to vote. Indeed, he said the most recent fee-raising proposal had the highest turnout to date with 61 voters.
For many institutional holders, Becker argued, compliance requirements can still complicate the logistics of using tokens to vote.
“If you’re an institution and you represent third-party investors,” Becker explained, “you do need third-party custody as extra protection, to make sure those assets are looked after in a safe manner.”
That’s where the recent move by Coinbase comes in.
On one hand, a Coinbase voting interface could boost turnout by being convenient for the largest Maker holders, including Polychain Capital (founded by Coinbase’s first employee), 1confirmation (founded by an early Coinbase employee) and Andreessen Horowitz’s crypto fund (co-managed by a Coinbase board member).
On the other, Tezos holder and veteran crypto investor Meltem Demirors tweeted that Coinbase Custody could become a “wallet-driven proxy voting platform that influences, gathers, aggregates, and reports on user behavior.”
In response, Coinbase’s McIngvale said the custody solution is a business-to-business tool for institutions, not individuals. So there is scant “user behavior” to track.
Plus, he said there aren’t currently any plans to analyze or utilize voting data, adding:
“We are here to provide support, pure infrastructure and services to enable our clients to participate in these networks however they want to. What they’re doing is not really our business. In fact, our business is to protect their anonymity as best we can, and the security of their funds.”
McIngvale said the exchange already custodies roughly 4 percent of Maker tokens, less than the 6 percent Andreessen Horowitz owns by itself. Meanwhile, the Maker Foundation, which employs MakerDAO COO Steven Becker, owns more than 22 percent of the total Maker supply and only sells these tokens to institutions that previous holders like Polychain deem to be committed to participating in governance, according to Becker.
Tendermint Inc director Zaki Manian, co-creator of the Cosmos ecosystem, told CoinDesk each of the three PoS assets Coinbase Custody will support requires a unique approach to governance options based on whether the systems automate changes, like Tezos, or merely show sentiment, like Cosmos.
Either way, governance is often inseparable from politics.
“If a big validator [staker] votes for something early, it gives that proposal a lot more legitimacy,” Manian said, adding:
“I have a thesis that they [Coinbase Custody] are going to have a hard time keeping them [stakers] because … custody is designed not to be a nimble business and staking has to be a nimble business.”
So far, staking votes have appeared to revolve around money rather than infrastructure. Comparable to semi-automated Maker votes about stability fees for stablecoin loans, the first Cosmos vote was an affirmative move toward inflation.
“It’s going to be interesting because part of the dynamics of proof-of-stake is how frequently do people just vote to give themselves more money?” Manian said.
Binance wants in
Coinbase is hardly the only giant entering the game of stakes.
On April 3, Binance’s custody provider Trust Wallet also announced plans to support Tezos staking features by the end of Q2 2019. Unlike institution-centric Coinbase Custody, retail-friendly Trust Wallet will create delegation features on the mobile wallet first, then potentially add voting options down the road.
“We’re already talking to the Cosmos people to bring that [staking] technology to them,” Trust Wallet founder Viktor Radchenko told CoinDesk. “It’s going to be all open source so that any community, like Maker, who would like to come in and have this functionality will be able to do it.”
Radchenko said he believes custody providers and wallets should offer simplified interfaces for users “to be involved in the blockchain itself” when it comes to PoS governance.
From Manian’s perspective, exchange competition will benefit stakers and token buyers.
“Binance and Coinbase are both going real hard on bringing these features to various customer bases,” he said.
Additionally, Manian said the “elephant in the room” is whether exchanges like Binance and Coinbase will offer governance derivatives – the ability to buy votes without owning the underlying assets – to retain institutional stakers as the competition heats up.
So far no exchange has announced any intention to offer such derivatives. To the contrary, Radchenko said that token holders and issuers may be too preoccupied with voting dynamics these days, given how nascent the technology is.
“We plan to bring that functionality [voting] a little bit later just because there’s less usage [than staking],” Trust Wallet’s Radchenko said. “Governance features will come a little bit later, maybe not even this year.”
As for the value Coinbase aims to offer institutional players, McIngvale said:
“We’ll work with our clients to figure out how to grow their impact as they start to participate in more and more governance processes.”
Coinbase image via Shutterstock
After picking up some steam this past Sunday, Bitcoin was able to approach the $5,200 level before dropping slightly. Although the previous drop – which sent BTC reeling back towards the lower-$5,000 region last week – seemed to mark the end of the surge, it now appears that the markets have further room to climb before they face any significant resistance levels.Analysts now expect Bitcoin to continue surging higher in the coming days and weeks, as it has formed an upwards parabola pattern that will likely aid in its upwards ascent for the foreseeable future.Bitcoin (BTC) Continues to Find Support in Low-$5,000 RegionAt the time of writing, Bitcoin is trading down roughly 1.5% at its current price of $5,050. BTC is up from its seven-day lows of just below $5,000 but is still down from its weekly highs of $5,400.Because $5,400 has proven to be a strong level of resistance for the cryptocurrency, it is likely that BTC will require a significant influx of buying volume to propel it above this level.Thomas Lee, the head of Fundstrat Global Advisors and a notable Bitcoin bull, recently spoke to MarketWatch about what may lead Bitcoin to surge higher in the near future and explained that risk appetite for cryptocurrencies is growing as more traditional equities investors look for assets with higher potential returns.“Risk appetite is positive for bitcoin. If the S&P 500 made a 2.5 standard deviation move [as it has done year-to-date] and investors are looking for [volatility], that’s building a base case for bitcoin,” he explained, further adding that he expects BTC to break above $10k at some point this year.BTC Forms Parabolic Pattern That May Allow it to Continue SurgingBecause 2019 has proven to be a somewhat positive year for the cryptocurrency markets thus far, and the general consensus amongst analysts and investors alike is that the persisting bear market has finally concluded, it would not be surprising if the markets incurred significant gains as the year drags on.Lisa N. Edwards, a popular cryptocurrency analyst on Twitter, spoke about Bitcoin’s price action in a recent tweet, explaining that BTC has formed a parabolic formation that does not leave much room for further downside. If this pattern holds over the coming months, the crypto could easily surge towards the $7,000 level.“$BTC small bounce in the right direction, lots of people still calling extreme lows at the moment – I would like to bring your attention to the PURPLE PARABOLA…. not much room for correction… it’s possible BUT unlike IMO,” she explained.$BTC small bounce in the right direction, lots of people still calling extreme lows at the moment – I would like to bring your attention to the PURPLE PARABOLA…. not much room for correction… it’s possible BUT unlike IMO
😉#thankmelater pic.twitter.com/k214822jqJ— ❣️Lisa N Edwards❣️ (@LisaNEdwards) April 15, 2019As the week continues on and Bitcoin begins establishing fresh levels of support and resistance, investors and analysts alike will most likely gain some better levels of understanding as to whether or not BTC is truly able to continue climbing higher in the near-term.Featured image from Shutterstock.
Blockchain.com, one of the oldest non-custodial wallet services on the web, has decided to #delistBSV. While the official note on the subject offers no justification or reasoning, Blockchain CEO Peter Smith posted a few Tweets earlier today which indicate the philosophical drive for the decision:
— Peter Smith (@OneMorePeter) April 15, 2019
— Peter Smith (@OneMorePeter) April 15, 2019
and really, arguments about which project is best aside, I hope we can almost all agree that there is something better to spend our time as an industry than CW drama and #BSV
— Peter Smith (@OneMorePeter) April 15, 2019
We felt it was important to respond to users requests to enable access to their BSV tokens, and built a limited way to do so without a long-term commitment to #BSV
— Peter Smith (@OneMorePeter) April 15, 2019
Smith told CCN:
“We added support for close out (only) transactions (i.e. sell, send) for BSV in January and encouraged users to sell or take their BSV to another platform. We felt it was important to respond to users requests to enable access to their BSV tokens, and build a limited way to do so without a long-term commitment to BSV. “
Officially, though, Blockchain.com informs users that there will be no support in their wallet for Bitcoin SV in the coming days.
We’re invested in the long-term health of the crypto ecosystem and are mindful to support cryptocurrencies that are reliable, safe, and convenient. Since January we’ve offered limited support for Bitcoin Cash SV (BSV) and have been closely monitoring activity of the BSV network since the hard fork in November. After careful consideration, we have determined to end all support of BSV within the Blockchain Wallet by May 15, 2019.
Blockchain Tells Users to Swap Bitcoin SV for Other Cryptos
The company outright encourages people to sell their Bitcoin SV for another token, without specifying Bitcoin, Bitcoin Cash, Litecoin, or the myriad of markets that are bound to seem some outflow as a result of the recent delisting campaign by exchanges and vocal users.
If you have BSV, we recommend simply swapping it for another crypto in the Blockchain Wallet or sending your tokens to another service.
They provide specific instructions on shedding Bitcoin SV. According to the tweets above, this has always been the goal of Blockchain’s use of the token – when the split initially happened, Bitcoin Cash users of Blockchain.com were immediately vested with airdropped Bitcoin SV. While users could have claimed their coins by exporting their private keys, expediting the process was apparently customer service decision.
Bitcoin SV is already on the chopping block at Binance and ShapeShift. Kraken is widely expected to follow suit, after a massive response to its Twitter inquiry.
Should Kraken delist Bitcoin SV (BSV)? #delistbsv
— Kraken Exchange (@krakenfx) April 15, 2019
Over 70% of voters polled called Bitcoin SV “toxic.” Huobi and other exchanges are also under pressure to follow Binance and ShapeShift’s lead.
Choppy Seas Ahead for Bitcoin SV?
Bitcoin SV took an immediate 9% nosedive following the news of the Binance delisting. Liquidity for Bitcoin SV could be in deep despair. Canadian billionaire Calvin Ayre believes Binance’s delisting was “illegal.”
so childish, illegal and Corrupt…what monkey business do Ethereum and exchanges have going on that this is the reaction to Craig forcing a judge to pass judgement on the origins of Bitcoin by suing Vitalik for Liable?https://t.co/eJ0OpT6r9U
— Calvin Ayre (@CalvinAyre) April 15, 2019
Coinbase and Gemini, two of the top regulated exchanges in the US, have never listed Bitcoin SV. Coinbase users complained about their BSV until the custodial wallet service eventually released it. The the top US retail exchange has never listed it as part of a trading pair, however.
Tyler Winklevoss took the #delistBSV opportunity to troll as much:
— Tyler Winklevoss (@tylerwinklevoss) April 15, 2019
Gemini strictly follows the guidance of the New York Department of Financial Services, and as such only has a minimal array of coins. Binance, on the other hand, has more pairs and markets than Coinbase Pro, Kraken, ShapeShift, and virtually any other centralized exchange you can name. Its broad and smooth support of altcoins might be the secret of its meteoric success.
By CCN: Tax season has once again come and (almost) gone, and so have many hard-earned dollars that once lined your wallet and bank account. But just because you’ve been paying federal taxes for as long as you’ve been earning an income doesn’t mean you have to keep doing so.
A loophole in the federal tax code allows citizens of Puerto Rico who qualify for Act 22 to pay as little as 0% federal taxes on capital gains and earned income. But for crypto investors, the tax incentives Puerto Rico offers are only the tip of the iceberg. Pristine beaches, warm weather year-round, and access to some of blockchain’s most keyed-in figures – like bitcoin billionaire Brock Pierce – are among the others.
Here are three reasons that you should move to Puerto Rico – especially if you’re a crypto investor.
1. Puerto Rico Incentivizes High Earners with 0% Tax
If you qualify for the unique tax benefits that Puerto Rico offers, you could save up to 100% on federal income taxes. To meet the requirements, one must:
- Become a bonafide resident of Puerto Rico (spending a minimum of 183 days per year on the island).
- Pass a criminal background check.
- File the appropriate applications with the IRS. All-in filing costs range from $5,000 to $12,000.
- Make a $5,000 annual donation to an approved local nonprofit.
If the potential to save up to 100% of the federal income tax you pay each year isn’t enough to entice you, there’s more.
Now is an ideal time for crypto traders and blockchain enthusiasts to relocate to the island. That’s because Puerto Rico is quickly becoming a technology hub, and many analysts believe that cryptocurrencies are just getting started on another epic bull run.
2. Information, Knowledge, & Power
During the largest bull run in cryptocurrency history (late 2017 – Jan ’18), blockchain evangelist and Bitcoin billionaire Brock Pierce moved to Puerto Rico to take advantage of the tax benefits and to help Puerto Rico rebuild after Hurricane Maria devastated the island’s infrastructure. Many crypto investors and developers followed.
And do you know what being around people who know the news before journalists break it leads to? That’s right: information, knowledge, and power.
Brock Pierce Talks Puerto Rico
Brock Pierce is one of the most polarizing names in blockchain. Whether you admire his efforts or judge him harshly for his outlandish style and unnerving resistance to strictures, you have to admit: he knows things that the average Joe does not.
And Pierce isn’t alone. Since relocating to the island, Pierce notes that approximately 1,000 people have followed. Who knows, maybe even Satoshi is among them.
When CCN asked Pierce what his community is currently doing to help the island rebuild, Mr. Pierce simply said, “everything we can.” From stimulating the economy with real estate purchases and rentals, dining out, and opening new businesses to an on-the-ground effort to help Puerto Rico increase their food resiliency, Pierce and his cohort say they are dedicated to improving the island – and helping its people.
Opponents of Pierce’s group – and the IRS tax code that enable Puerto Rico to offer the tax benefits – argue that the trickle-down economic effect doesn’t work. But Puerto Rico’s government disagrees. In 2015, 2016, and 2018, Puerto Rico conducted economic impact reports and concluded that the acts do positively impact the island’s economy.
3. Crypto Taxes: Regulators Are Catching Up
While there is little you can do to impact how the government decides to tax cryptocurrencies, you do have the power to vote with your feet, move to Puerto Rico, and pay no federal income tax from here out.
If you’re looking to save on your 2019 tax bill, you might want to consider relocating to Puerto Rico by July 2nd to qualify for the year.
Over the past couple of weeks Bitcoin SV – the Bitcoin Cash hard fork that is the brain-child of Craig Wright and Calvin Ayre – has been embroiled in controversy, mainly due to the legal action being brought about by BSV’s champions against popular figures within the cryptocurrency industry.These figures were targeted after they perpetuated a movement against Craig Wright due to his claims that he is the true Satoshi Nakamoto, and that BSV is Bitcoin in its truest form. This led the crypto community to rally behind the targets of this legal action, and ultimately led popular cryptocurrency exchange, Binance, to announce that BSV will be delisted from its platform.Bitcoin SV (BSV) Plummets After Binance Delisting At the time of writing, Bitcoin SV is trading down over 14% at its current price of $60.00. BSV has suffered significant losses from its seven-day highs of roughly $83.00 and is currently trading just slightly below its previous one-month lows of $63.00.Today’s drop, which occurred immediately after Binance announced that they would be delisting the crypto, was a significant blow to the cryptocurrency and its investors, and it has since sparked theories regarding other exchanges also taking similar actions in the near future.WhiteRabbitBTC, a popular cryptocurrency trader on Twitter, spoke about the delisting, saying that he expects BSV to drop towards zero due to poor leadership and the Binance delisting.“$BSV bag holders prepare for incoming tears. Your leaders went full #billionairemode suing bitcoiners and being general douchebags. Now your coin is being delisted on the largest exchange which accounts for a majority of all trading volume. See you guys at zero,” he said.$BSV bag holders prepare for incoming tears. Your leaders went full #billionairemode suing bitcoiners and being general douchebags. Now your coin is being delisted on the largest exchange which accounts for a majority of all trading volume. See you guys at zero. pic.twitter.com/jMVEZtgyeN— hodlonaut🌮⚡️🔑 (@WhiteRabbitBTC) April 15, 2019The CryptoMonk, another popular figure within the cryptocurrency industry, shared a similar sentiment, telling his followers that he doesn’t believe this fork has “a single chance of mass adoption,” and also saying that it will likely plummet towards zero.“$BSV sock puppets in disbelief. I said this month ago, if you believe this fork has a single chance of mass adoption, you are beyond delusional. Good luck losing it all on CSW’s fork,” he noted.$BSV sock puppets in disbelief.
I said this month ago, if you believe this fork has a single chance of mass adoption, you are beyond delusional.
Good luck losing it all on CSW’s fork. https://t.co/gJZzG6rHFo— The Crypto Monk ⛩ (@TheCryptoMonk) April 12, 2019Bitcoin Cash the Big Winner as BSV Plummets As Bitcoin SV finds itself caught in what will likely turn into a downwards spiral, Bitcoin Cash (BCH) – which is the cryptocurrency that BSV forked off of – is the big winner today as it surged as much as 17% before settling at its current price of $314.00.Ran NeuNer, the host of CNBC’s Crypto Trader show, spoke about BCH’s surge today, deeming it the “biggest winner” of the whole BSV imbroglio.The biggest winner in the BSV delisting is…. pic.twitter.com/QZurEKtYA8— Ran NeuNer (@cryptomanran) April 15, 2019It is highly likely that many investors will jump ship as the news regarding Binance’s decision to delist BSV grows more widespread, which may lead to significantly further downside in the near-term.Featured image from Shutterstock.
By CCN: Iceland has been a hotbed for bitcoin mining for years, fueled by its cheap geothermal power. However, the Nordic island nation is pumping the brakes on more crypto mining as it seeks to thwart accelerating energy demand.
Last year, Icelandic authorities targeted crypto miners for higher taxes amid the industry’s huge electricity consumption. Now, it seems that a growing organic movement within the country sees mining expansion as a potential environmental hazard, too.
Bitcoin miners are increasingly viewed as an existential threat to Iceland’s unrivaled and largely untouched countryside, according to an Al-Jazeera special report. A coalition of environmentalists, researchers, and activists oppose the growth of what was until recently touted as a job-creating industry of the future. Iceland is in a conundrum, however, as bitcoin miners show little sign of slowing down.
Iceland’s Geothermal Perfect Storm
Iceland’s unique North Atlantic location is home to a nexus of geothermal activity, which makes geothermal power generation extremely easy and cheap relative to global electricity prices. Consequently, crypto miners have identified Europe’s Scandinavian region – Iceland in particular – as a bitcoin mining goldmine. Apart from cheap power, naturally-low temperatures are also appealing. This makes cooling mining rigs much easier and cheaper, further enhancing profit in a tight-margin business.
For years, the accepted narrative within the cryptosphere has been that using renewable energy in bitcoin mining cancels out the notorious talking point that bitcoin mining is environmentally unfriendly due to the size of the carbon footprint. However, Icelandic environmentalists note that rising electricity demand for mining activities is leading to an expansion of geothermal and hydroelectric power generation infrastructure.
As they point out, the process of creating “clean” energy is not so green, after all. For one thing, constructing new hydroelectric dams alters landscapes and topography irreversibly by sinking virgin countryside and changing the nature of rivers and waterfalls. Geothermal power stations must be constructed over natural hot spring areas to access the heat coming out of the earth’s core. This also permanently alters Iceland’s untouched landscape.
Environmentalist Tomas Gudbartsson is quoted in Al Jazeera as saying:
“Iceland still has one of the biggest wilderness areas in Europe. We will simply destroy these areas if we continue.”
Iceland’s Bitcoin Mining Risk Factors
The trouble for Icelandic environmentalists is that crypto mining expansion is poised to grow even faster than before. First of all, sustained low prices in the crypto market continue to make mining a very low-margin business. Miners must look for every advantage over their peers to make themselves more competitive and profitable. Iceland’s cheap power and fiercely cold temperatures provide the perfect combination for miners looking to squeeze maximum performance out of their rigs for minimum investment.
Moreover, following a relatively weak but sustained crypto price rebound year-to-date, crypto mining is actually increasing in popularity. This is further complicated by the Chinese government’s recent decision to crack down on crypto miners domiciled in energy-rich areas like the Sichuan Valley region. Many of these miners will end up moving to Iceland and neighboring countries.
What looks even more likely to stick in Iceland’s craw is that despite bitcoin mining’s energy-hungry nature, it remains a relatively automated activity that produces few, if any, jobs. Essentially, Iceland may welcome evicted Chinese miners into the country only to see them drive up energy needs and indirectly lead to environmental destruction while doing little to nothing for the local economy.
ConsenSys is seeking a funding boost.
Ethereum co-founder Joe Lubin’s Brooklyn-based venture studio is looking to raise $200 million from external investors, The Information reported Monday, at a valuation of $1 billion.
The Information reports that ConsenSys is pitching Chinese investors with materials claiming the company aims to earn $50 million in revenue this year, primarily from contracts with enterprise and government clients. Last December, the Brazilian National Social Development Bank confirmed to CoinDesk it was in talks with ConsenSys.
Stepping back, ConsenSys was previously supported by Lubin’s personal fortune and employed up to 1,200 people in 2018. When the price of ethereum plummeted after the 2017 token boom fizzled, ConsenSys laid off 13 percent of its staff. Following a late-2018 re-organization dubbed “ConsenSys 2.0,” it became clear that partnerships with traditional, external investors were a priority. Several survivors told CoinDesk in January 2019 that more cuts were on the horizon.
The Information now reports that ConsenSys brought in “just $21 million in revenue in 2018.” It’s unclear how that income relates to the various startups under the ConsenSys umbrella. Several projects are seeking to raise capital on their own as independent startups, multiple sources tell CoinDesk.
A ConsenSys spokesperson declined to comment.
ConsenSys founder Joe Lubin image via CoinDesk archives
A Twitter user has received a mysterious message via the Blockstream satellite detailing a hunt for $1 million in Bitcoin. According to the correspondence, hunters must find 400 of 1,000 cryptographic keys to unlock the treasure.Each of the first three keys has been hidden at four different GPS coordinates and is available to anyone who can get to the correct location. Clues to the rest will be published at a later date and will likely involve a deep knowledge of cryptography and computer science.Forget Easter Eggs, There’s a Bitcoin Hunt in Town…The mysterious message was first brought to our attention by Twitter user @notgrubles. They state that they received the correspondence over the Blockstream satellite:Received a new message over @Blockstream Satellite. It appears to be a treasure hunt for $1,000,000 in #bitcoin, with included GPS coordinates for the first part of the hunt! 🤯🛰️🔎🗺️ https://t.co/M4mKMbQ8KU pic.twitter.com/HzkEJ8RFXc— grubles (@notgrubles) April 15, 2019According to the message, the hunt is a proof of concept for an idea that the author refers to as “proof of news”. It begins:“Welcome, Hunter.“This message should reach you at the middle of the fourth month of your calendar year, in the year 2019. If you are reading this, something has led you to search for things which bring excitement to an otherwise predictable world.”It goes on to detail a “grand Hunt” for the following prize, as described by the author of the mysterious correspondence:“The treasure which will belong to the most successful Hunters and their clan is neither gold, nor jewels, nor the pieces of worthless paper that pass for money in this sad age; instead it is Bitcoin, a digital treasure forged from deep mathematical truths, in an amount equal to $1 million.”According to the message this total has been divided into one thousand pieces “using the splitting magic of the wizard Shamir”. To win the ultimate prize, the treasure hunter must find 400 of these pieces and rejoin them “using Shamir’s spell of recombination.” Shamir here refers to Shamir’s Secret Sharing, an algorithm designed by Israli cryptographer Adi Shamir to secure a secret in a distributed way.The undisclosed sender of the message states that the hunt proposed is not the first of its kind and will not be the last either. The text goes on to challenge the recipient to prove themselves worthy of the prize by solving puzzles sporadically posted to the website SatoshiTreasure. Based on the wording of the message, all but those with the highest level of cryptographic knowledge will struggle to compete in the hunt for the $1 million in Bitcoin.The first part of the challenge is rather more accessible, however. It involves travelling to three different geographical locations out of 12. The first of the three keys is hidden at:37.784038, -122.417812 (Tenderloin, San Francisco).40.758931, -73.985099 (Broadway, New York).34.062628, -118.129485 (Monterey Park, CA).42.360342, -71.087282 (Cambridge, MA).It will apparently be available for hunters to find from noon local time on April 16.The second key is again hidden in four different locations. However, this time they’re on the other side of the world. This key will be available from April 17 at midday local time. The locations are:39.93685, 116.45426 (Beijing Shi, China).22.281185, 114.156715 (Queen’s Road Central, Hong Kong).35.654811, 139.748974 (Minato City, Japan).37.583827, 127.031035 (Seoul, South Korea).Finally, the third of the initial set of keys to unlock the Bitcoin treasure will also be released on April 17 at midday local time. This time the key is spread across four continents. The locations are:51.5082944, -0.2013407 (Notting Hill, London).0.3474019, 32.6036514 (Kampala, Uganda).-33.8881323, 151.1901988 (Camperdown NSW, Australia).-34.596118, -58.373290 (Buenos Aires, Argentina).There is currently no clue as to who is behind Satoshi’s Treasure but it will be exciting to see how the hunt for the 400 crypto clues unfolds. Related Reading: Binance Delists Bitcoin SV, BSV Price Plunges in MinutesFeatured Image from Shutterstock.