The latest news on cryptocurrencies, blockchain and Defi

The news that caught the attention of the market this week was undoubtedly the purchase of Twitter by Elon Musk for $ 44 billion. If the deal is ratified, it will take the social network out of the world of Wall Street and bring it back into the private sphere. Opinions of all kinds abound and vary greatly in their relevance. One thing is certain, however, if only the future will guarantee the image that the company will assume under Musk’s reign, a promise is practically ignored and still represents in our eyes the key point to remember. Musk has promised to make the network’s algorithms open source, which, beyond future moderation policies, will allow greater transparency and trust in the various messages conveyed. This is certainly reminiscent of the philosophy behind cryptocurrencies and general decentralization.

Source: Adobe

Even the Coinbase CEO, never stingy with comments, applauded the announcement. “Elon’s purchase of Twitter is a big win for free speech and probably changes the trajectory of the world more than most people realize,” tweeted Brian Armstrong. “Twitter is upstream of the media and culture in many ways, and it was heading in a very dangerous direction on censorship.” He adds that he “hopes that Twitter can be converted over time into a decentralized protocol, which would be the ultimate protection against further co-optations.”

New news from New York as the State Assembly just adopted a two-year moratorium on cryptocurrency mining. While the bill does not propose an outright ban on mining, it would prevent mining companies from renewing their operating permits if those operations are powered by fossil fuels. According to the bill, this also means that no new permits will be approved either. The goal would be to guide the industry towards a mandatory use of green energy to power it. The project now faces the Senate vote.

Now, from an environmental standpoint, it is encouraging to see that the global bitcoin mining sector has increased its sustainable energy mix by around 59% year-over-year. The latest report of Bitcoin Mining Council indeed it shows that the mining industry is rapidly embracing 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). Monday released a new report. According to the document, 64.6% of the energy used by the councilors is environmentally responsible, compared to 58.4% of the entire market.

The report also did not fail to relate the energy impact of the bitcoin mining industry to others, which 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 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 account’s investment options menu. principal. Fidelity said it was the first company in the industry to allow such investments without having to go through a separate brokerage window and has already hired an employer who will add this offering to its plan later this year.

This company? MicroStrategy, who else!

This week we crossed the middle ground that separates us from the next halving. We remind you that every four years the premium linked to the discovery of a block among minors is reduced by half. At the time of this writing, 733,806 blocks have been discovered in the history of the network. A halving occurs every 210,000 blocks. We have therefore exceeded the threshold of 50% between the 3And and the 4And halving of bitcoin history. Because it’s important? Simply because historically, with each cycle, the price of bitcoin has increased significantly. The supply is becoming thinner and thinner, with the amount of bitcoin still to be created steadily decreasing. Recall that 19M of the 21M bitcoins that will never exist are already in circulation.

Exactly 11 years ago yesterday the mysterious creator of the protocol, Satoshi Nakamoto, sent his last public message. Satoshi sent this message to Gavin Andresen, one of the first bitcoin developers, in response to Andresen talking about Satoshi in the media. “I wish you would stop talking about me as a mysterious figure in the shadows. The press only makes an argument about pirate currency. Maybe we should talk about the open source project instead and give more credit to contributors. It helps to motivate them. ”We remember that from the first days full and complete decentralization has been at the heart of the project.

Bitcoin as an 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 regard, 21Shares has just launched a brand new product on the stock exchange 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 inflation growth and increased geopolitical risks, we believe that this can act as an important diversifier of risk and return in a balanced portfolio ”.

Mike McGlobe, Bloomberg’s principal analyst and commodity strategist, agrees. He posted earlier this week:

“The rise of Bitcoin against the decline of fossil fuels: BI Crypto –

The Russian invasion of Ukraine and China’s cryptocurrency ban in 2021 could mark a paradigm shift that illustrates the risk of autocratic and old-guard societies being left behind. In a world that is going digital, bitcoin is becoming a global guarantee and most investors are just starting to move from zero allocation. The quantity is contained, especially compared to crude oil, which has a high elasticity of supply and demand and which is replaced by new technologies. Bitcoin appears to be in a sustainable bull market, but faces a shorter-term downtide as the Federal Reserve faces its highest inflation in around 40 years.

We see $ 100,000 in bitcoin as a matter of time in most scenarios, inflation or deflation. The acceleration of US outbound funds for Bitcoin ETFs is expected to spur regulatory pathways and the launch of similar investment vehicles in the country. “

In the short term, however, the correlation between US tech stocks and bitcoin is clearer than ever. Yesterday’s 4% drop in the NASDAQ index dragged bitcoin down yet again, this time below the $ 40,000 mark. We have also started to move to a defensive position in the Fund. Indeed, while this correlation cannot be ignored, the NASDAQ is at an absolutely technical critical point and at its 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 predictions yesterday, after Facebook and Netflix had done so previously. In short, all of these companies have seen their prices “stuck”, with only Amazon and Apple staying out of correction territory. The first quarter financial results of these two companies will be announced tomorrow. In short, the market appears in a pivotal zone where there may be more pain before a reversal. Not to mention the strength of the US dollar – historically inversely related to the price of bitcoin – which has reached unprecedented levels 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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