Cryptocurrency "Mining Boom" Is Over?

Recently, the price of graphics cards on the market has plunged in a large area, ending the more than two-year price hike mode. What is the reason for the sharp drop in the price of graphics cards, and how big is the drop? The reporter recently visited the Huaqiangbei market in Shenzhen (Huaqiangbei Electronics Market).

Cryptocurrency "Mining" tide ebbs, graphics card prices plummet across the board

In Huaqiangbei, Shenzhen, known as the "First Street of China's Electronics", many stalls are equipped with boxes of popular models of graphics cards. The merchants told reporters that the prices of graphics cards of various brands have dropped sharply, and the current prices are close to two-year low.

A merchant in Huaqiangbei, Shenzhen: Now the price has dropped, and some have dropped by about 1,000 yuan in the past month.

Lines from Spring Festival Gala Caused A virtual currency to Rise by 1000%

The wind of the Metaverse also blew into the Spring Festival Gala of the Year of the Tiger.

On the evening of January 31, in the Chinese CCTV Spring Festival Gala sketch comedy "Repay the Money", Shen Teng's lines "I'm dealing 'dogs' in the Metaverse" instantly ignited the audience's enthusiasm for investment of cryptos. According to the trading platform CoinMarketCap, a virtual currency of the same name, Doge king, once rose more than 1000%.

Doge Kings Rose Sharply on Lines from Spring Festival Gala

In the comedy, Shen Teng, a popular Chinese actor self-proclaimed to be a "Dog King" in the Metaverse.

The 2022 Spring Festival Gala's Happy Twisted Piece "Repay The Money" is the sixth time that Shen Teng and Ma Li have collaborated on the stage of the Spring Festival Gala.

Shen Teng, who played a deadbeat, hid at home in order to default on his debts and refused to pay the property fee. When two of his close classmates came to ask for money, he began to pretend to be sick again, among other tricks.

When his classmates were determined to demand for repaying, Shen Teng simply threw out the concept of "metaverse", saying that he was "playing a dog" in the metaverse, and this investment field is still blank and promising.

Shen Teng said that, he is the "dog king" in the metaverse, and his wife is the "dog queen".

The two old classmates are kind and easy to deceive. As soon as they heard that this is a new field of investment, they could not wait to take out all their money immediately, wanting to be the major shareholders in this investment industry.

Dogeking, the virtual currency of the same name, is instantly popular!

And the key point is coming. This may be the funniest and most absurd thing about the Spring Festival Gala. After the program, the namesake virtual currency Doge King, once rose by more than 1000%.

According to the China Securities Journal, on the evening of January 31, Doge King had seen an intra-day increase of 1009.83%, ranking among the top ten gainers of major exchanges, with a 24-hour trading volume of 2.45 million US dollars.

According to public information, the coin is a token on the Binance Smart Chain, a derivative of Dogecoin, and was launched in November 2021. The liquidity of the coin is locked for one year, and the project is completely decentralized and community-driven. The official website does not give the name and information of the team behind the project, nor does it provide a white paper.

The virtual currency Dogeking has risen sharply in this round. Industry insiders remind investors: "The surge of virtual currency Doge King can be regarded as a kind of fan economic effect. However, the actual application value of this currency is small, and the chips are too concentrated, and prone to the risk of market manipulation. The current price surge is more due to marketing hype, and the possibility of large currency holders selling and leaving the market cannot be ruled out in the later stage, so the risk is high.”

Bitcoin Reached A New High of $68,000 - How Much Upside Is There?

 Bitcoin once again set a record high!

On November 9th, the Bitstamp platform quotation showed that Bitcoin reached 68065.30 US dollars per coin. And in the past 24 hours, it has briefly touched the highest at 68564.40 US dollars per coin, which refreshed the previous price record set at the end of October. Bitcoin broke through $68,000 per coin for the first time.

CoinGecko data shows that as of that day, the total market value of cryptocurrencies has exceeded the 3 trillion U.S. dollar mark, which is about 30792 billion U.S. dollars. Among them, the market value of Bitcoin is approximately $128.52 billion.

According to some industry analysts, Bitcoin will show an upward trend in the next few weeks.

A cryptocurrency trader said that Bitcoin currently stands firmly, and 66,000 USD per coin is its safe position. And on November 8, the cryptocurrency hedge fund ARK36 released a report stating that the price of $70,000 in Bitcoin "seems to be coming."

Regardless of how the Bitcoin price fluctuates, Grayscale Investments LLC is its long-term follower. On November 5th, local time, the U.S. Securities and Exchange Commission (SEC) public documents showed that Gray had formally submitted an application for the "Future Finance" ETF (code GFOF), which will track the intersection of "finance, technology, and digital assets." "The company's stock. This is Grayscale's first ETF application outside of the ETF to convert the Grayscale Bitcoin Trust Fund (GBTC), the world's largest Bitcoin fund, into an ETF.

A 77% increase in 24 hours - Shiba Inu Coin briefly surpassed Dogecoin in value

 According to Coinmarketcap data, the price of Shiba Inu coin has surged over 77.5% in the past 24 hours, and its market value once reached US$51.6 billion. Not only did it surpass Dogecoin, but also beated Ripple, Polkadot, and USD Coin to become the seventh largest cryptocurrency in the world.

As of 11:45 am Beijing time on Thursday, the price of Shiba Inu Coin has reached $0.00008748. This is the ninth time that Shiba Inu Coin has set a record high in the past two weeks. Shiba Inu coins are now the most valuable meme coin in the world, dethroning Dogecoins.

At present, the price of Shiba Inucoin has dropped and is still above $0.00007, and its market value still exceeds Dogecoin.

CryptoCurrency Mining Becomes the Only Industry to Be Eliminated since 2019

On October 21, the National Development and Reform Commission of China issued a notice on the revision of the "Industrial Structure Adjustment Guidance Catalog (2019)" for public comments. The notice stated that in accordance with the relevant work arrangements for the rectification of  cryptocurrency mining activities, revise the guidelines for industrial structure adjustment, and openly solicit opinions from the public.

China Say No to CryptoCurrency Mining

The draft for comments requires that the 7th item is added to the "I. Outdated Production Technology and Equipment" and "(18) Others" in the "Industrial Structure Adjustment Guidance Catalogue (2019 Edition)", which reads "Cryptocurrency Mining Activities".

Make It Back To $60,000 Mark. Why Bitcoin Price Rise Against Trend?

On October 16, the price of Bitcoin broke through the $60,000 mark and approached $63,000, the highest price since May this year. Ethereum broke through $3,900, approaching an all-time high.

Data from CoinGecko shows that the total market value of cryptocurrencies has exceeded US$2.6 trillion, a record high. Previously, the total market value of cryptocurrencies reached an all-time high of US$2.55 trillion on May 12. But then started to shrink for more than two months to US$1.25 trillion on July 21, a drop of more than 50%, and then the total market value gradually picked up.

As the cryptocurrency market has soared, the U.S. stocks' blockchain sector, which has continued to decline recently, has risen, too. Canaan Technology has gained 5.22% during the day, and Bit Digital has soared by 10%. Riot Blockchain rose 5.86%, the sector began to change before the opening of the US stock market.

Jiangsu China Campaigns Against Crypto Mining

Jiangsu Province takes the lead in comprehensively investigating virtual currency mining: energy consumption of mining in the province reaches up to 260,000 kWh DAILY.

China Curbs Crypto Mining

According to the official website of the Jiangsu Provincial Communications Administration, the bureau recently investigated the crypto mining activities in this province. The monitoring found that the export traffic of mining pools that carried out virtual currency activities reached 136.77 Mbps, and the total number of Internet IP addresses participating in crypto mining was 4502, which consumed more than 10 PH/s of computing power and consumed 260,000 kWh/day of electricity.

Bitcoin Mining Accounts for 0.9% of Global Carbon Emissions in 2030

 On September 22, the New York Digital Investment Group (NYDIG) published a research paper entitled "Bitcoin Net Worth" this month.

Research shows that “even in our most radical and highest-priced situation, that is, by 2030, when Bitcoin reaches 10 trillion U.S. dollars, its emissions will only account for 0.9% of the world’s total, and its energy expenditure will only account for the world’s total. 0.4%."

It is reported that this study was written by Castle Island Ventures partner Nic Carter and NYDIG founder Ross Stevens, and discussed how the network's carbon emissions will change in the future. The influencing factors include the price of Bitcoin, the difficulty of mining, and energy consumption. fluctuation. 

Bitcoin Becomes Legal Tender, the Central American Country in Chaos

A few days ago, President Nayib Bukele of El Salvador announced the latest achievements of the "Bitcoin Experiment" on Twitter: 1.1 million Salvadorans are using Chivo e-wallets!

If you remember, Bitcoin is now legal tender in this small, poor and turbulent Central American country with a population of only 6.5 million.

From the high-risk hype "virtual gold" to the spread of payments across the country, things have not been smooth sailing. In the past two weeks, El Salvador has been in a frenzy due to the collapse of the official app, with a frantic influx of one-star negative reviews; the people are confused and distrustful, and opposition crowds took to the streets to protest, and even violently smashed and burnt Bitcoin ATMs.

Bitcoin made headlines in local newspapers in El Salvador on Sept. 7.

There are reports describing the Bitcoin experiment in El Salvador as "a farce"!
Compared with the rise and fall of Bitcoin, what is even more maddening is:
On September 7, Bitcoin officially became the legal tender of El Salvador along with the U.S. dollar. In order to encourage use, the Salvadoran government launched an e-wallet App "Chivo", and distributed $30 worth of bitcoin to each user (can only be used but not withdrawn).

China's Virtual currency regulation further intensified

 China prohibits overseas exchanges to provide Virtual currency services to domestic residents.

Four months after the voices of the three major associations, the virtual currency market has again undergone tremendous changes, and the central bank once again "proclaimed" the risks of virtual currency speculation.

On September 24, the Central Bank and other ten departments issued the "Notice on Further Preventing and Disposing of the Risks of Virtual Currency Trading Hype" (hereinafter referred to as the "Notice"), clarifying the essential attributes of virtual currencies and related business activities, and establishing a sound response to the risks of virtual currency trading hype To strengthen the monitoring and early warning of the risk of virtual currency trading speculation, and build a multi-dimensional and multi-level risk prevention and disposal system.

The relevant person in charge of the People's Bank of China said in response to reporters that the "Notice" once again emphasized the virtual currency, such as Bitcoin, Ethereum, etc., that have the characteristics of being issued by non-monetary authorities, using encryption technology, distributed accounts or similar technologies, and existing in digital form. The so-called stablecoins, including TEDA coins, do not have the same legal status as legal tender, and cannot be circulated in the market as currency. The "Notice" clearly stated that virtual currency exchange, virtual currency trading as a central counterparty, provision of matching services for virtual currency transactions, token issuance financing, and virtual currency derivative transactions are all illegal financial activities and are strictly prohibited. , Resolutely banned in accordance with the law; overseas virtual currency exchanges to provide services to Chinese residents through the Internet are also illegal financial activities.

As of press time, the price of virtual currency has plummeted again. Within 24 hours, Bitcoin fell 4.24% and Ethereum fell 8.29%.

NDRC Lists CryptoCurrency "Mining" as Industry to Eliminate

Virtual currency "mining" activities refer to the process of calculating and producing virtual currency through special "mining machines". On September 24, the official website of the National Development and Reform Commission issued the "Notice of the National Development and Reform Commission and Other Departments on Regulating Virtual Currency "Mining" Activities." 

CryptoCurrency Mining: More Negative than Possitive

The energy consumption and carbon emissions by cryptocurrency mining are large, while the contribution to the national economy is very low. And the driving effect on industrial development and technological progress is limited. In addition, the risks derived from virtual currency production and trading are becoming more prominent, and its blind and disorderly. Development of cryptocurrency mining will have an adverse impact on the promotion of high-quality economic and social development and energy conservation and emission reduction. Remediation of crypto currency "mining" activities is of great significance to promote the optimization of my country's industrial structure, promote energy conservation and emission reduction, and achieve the goal of carbon peak and carbon neutrality on schedule.

Strengthen the dual control of energy consumption in the newly-added virtual currency "mining" project. Incorporate the prohibition of new virtual currency "mining" projects into the energy consumption dual control assessment system, strictly implement the energy management and control responsibilities of local governments, and conduct energy dual control assessments in areas where new virtual currency "mining" projects are discovered and verified Calculate energy consumption by doubling the energy consumption of new projects.

Chinese Central Bank Defines Cryptocurrency Business as Illegal

 Recently, ten China's governmental departments including the People's Bank of China issued the "Notice on Further Preventing and Disposing of the Risks of Hype in Virtual Currency Transactions" (hereinafter referred to as the "Notice"). The relevant person in charge of the People's Bank of China answered reporters' questions on related issues.

1. What is the context of the "Notice"?

In recent years, Bitcoin and other virtual currency trading hype activities have become widespread, disrupting economic and financial order, breeding money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities, seriously endangering the safety of people's property. In accordance with the decision and deployment of the Party Central Committee and the State Council, the People’s Bank of China, in conjunction with relevant departments, has issued a series of policies and measures to clarify that virtual currencies do not have legal tender status, prohibit financial institutions from developing and participating in virtual currency-related businesses, and clean up and ban domestic virtual currency transactions and token issuance financing The platform continued to carry out risk warning and financial consumer education, and achieved positive results. In order to establish a normalized work mechanism and always maintain a high-pressure crackdown on virtual currency trading activities, the People's Bank of China and other departments have combined the new risk situation and drafted the "Notice" based on the previous work experience.

2. How does the "Notice" characterize virtual currencies and related business activities?

Challenge of cryptocurrency: a currency war is coming?

With the digitization of currency, come both dangers and opportunities.

Cryptocurrencies are challenging the U.S. dollar's long-standing dominance of world finance.

The war on currencies is intensifying: for the first time in a century, the dominance of the dollar has been challenged. The rise of cryptocurrencies and "stable currencies" has prompted people to rethink what currency is, who is the regulator of currency, and what it means when currency is not controlled by a national government. The U.S. dollar itself may need to be completely reformed and transformed into a digital currency that can move instantaneously to rival Bitcoin or any other token.

Affected by the rise of cryptocurrency, the old front of the national currency is being redrawn. These privately issued currencies are dividing the monetary system, banks, and payments. This scene reminds people of the "Wildcat" currency period in the mid-nineteenth century, when many banks issued their own currencies, prompting the Federal Reserve to issue national currencies. If there is no "no doubt" currency, the efficiency of business operations will become lower. If there is competition among multiple currencies in economic activities, the government runs the risk of losing control of fiscal and monetary policies.

What kind of storm will the new currency set off? Nobody knows. On the blockchain network, there are many cases of cryptocurrency and applications. But this technology is so disruptive that it is spurring a wave of new regulatory measures. Governments all over the world have an incentive to consider digitizing currencies, at least to maintain competitiveness and maintain their control over economic interests. The Fed itself will also release related reports in the near future.

Innovations Required to deal With Virtual Currency Challenge

On September 24, Wen Xinxiang, an official from China's central bank, the People's Bank of China (PBC), delivered a speech at the 10th China Payment and Settlement Forum. Wen said at the meeting that the challenge of virtual currency is huge. The traditional financial system is facing the "reinvented" virtual currency and its related "dark web" world. At present, it mainly focuses on the link between "virtual currency" and the traditional financial system, and adopts measures such as "Payment Break" to monitor and intervene. To prevent, punish and punish also requires legal basis and innovative application of technological means.

Virtual Currency Challenge

Wen pointed out that in recent years, the rapid development of virtual currencies represented by Bitcoin has attracted widespread attention from regulatory agencies in various countries. As of now, the total market value of Bitcoin has reached approximately US$800 billion, and the overall market value of stable coins has exceeded US$120 billion. Generally speaking, virtual currencies can be roughly divided into two types. One is represented by Bitcoin, and the attributes of virtual assets are more prominent, which to a certain extent become a "reservoir" of excess liquidity; the other is based on TEDA coins. The stable currency represented is more of a payment tool. From the perspective of infrastructure, the blockchain is equivalent to a virtual currency payment system and a virtual currency transaction database; a virtual currency exchange is equivalent to a central counterparty, which partially assumes the functions of a market maker.

Chinese Central Bank's Actions Against Cryptocurrency: Will Mining Machines Sales Be Affected?

On September 24, the People's Bank of China issued a notice to further prevent and deal with the risks of virtual currency transaction speculation, and stated that it strictly prohibits illegal financial activities related to virtual currency. This means that "mining" in China is becoming increasingly impossible.

The Notice pointed out that virtual currencies have no legal standing in the country and cannot be used as currency in the market. In addition, the state strictly prohibits and cracks down on financial activities such as the exchange business of legal currency and virtual currency, the exchange business between virtual currencies, the buying and selling of virtual currencies, the provision of information intermediary and pricing services for virtual currency transactions, and illegal fund-raising.

The matter of "mining" is an illegal activity in China, and it must be held accountable in accordance with the law. However, although "mining" activities are not as active and obvious in China as abroad, many technology companies still smell the business opportunities, and produce and sell various "mining" mining machines and other equipment. With physical stores in some areas, it can be said that the mining wave has brought considerable economic benefits to these technology companies.

When it comes to mining boom, the graphics card is definitely the biggest influence on netizens. As the main hardware part of "mining", the graphics card is naturally the favorite of many "miners". Due to the mining boom and the global shortage of cores, the price of graphics cards can be said to advance all the way. Not only has the price not dropped, what's even worse, it's hard to get a single card even at such rocketed prices.

Fate of Virtual Currencies Under Strict Regulatory Measures

 September 24, 2021 is another unforgettable day, at least for virtual currency stakeholders!

Just as the whole of China was immersed in the beautiful anticipation of the upcoming National Day holiday, a heavy blow from the governmental sectors made these uninteresting. Everyone must have seen the content. The first is that ten departments including the National Development and Reform Commission issued a notice on the rectification of virtual currency mining activities, requiring all regions, departments and related companies to attach great importance to the rectification. Prevent and dispose of the risk of speculation in virtual currency transactions.

After the announcement was issued at 17:01 on the 24th, the currency circle was in an uproar, the market plummeted, almost all currencies plunged, and market sentiment was panicked. If these two explosive news are strictly enforced, users will basically be prohibited from participating in virtual currency transactions in the future. Later, we will see the intensity of the policy tightening. It is estimated that the currency circle will not be very good in the next short period of time. At this point, everyone must be psychologically prepared.

We might as well pay close attention to the impacts of this incident over the coming weekend. Although the previous precedents are all gone without severe aftermaths, this time I personally don't expect it to end hastily, and there should be follow-ups. This heavy blow has already caused market panic yesterday. Most retail investors have begun to sell their chips to realize cash, and the number of people who have realized cash and flees has continued to increase.

China: Virtual currency does not have equal legal status as official currencies

Today (Sept. 24th), the People's Bank of China issued a notice to further prevent and deal with the risks of speculation in virtual currency transactions. The notice pointed out that virtual currency does not have the same legal status as legal currency. Virtual currencies such as Bitcoin, Ether, and TEDA have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed accounts or similar technologies, and exist in digital form. They are not legal and should not and cannot be used as currency in the market. Use on circulation.

Virtual currency-related business activities are illegal financial activities. Carrying out legal currency and virtual currency exchange business, exchange business between virtual currencies, buying and selling virtual currencies as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, virtual currency derivatives transactions and other virtual currency related Business activities suspected of illegal sale of tokens and tickets, unauthorized public issuance of securities, illegal operation of futures business, illegal fund-raising and other illegal financial activities are strictly prohibited and resolutely banned in accordance with the law. Those who carry out related illegal financial activities constitute a crime shall be investigated for criminal responsibility in accordance with the law.

Why Bitcoin bears want to lock the price below $46,000

This week's price trend shows that the Bitcoin bulls are a bit too enthusiastic about the expiration of the $3 billion Bitcoin option last Friday. The combined effect of various bearish factors this week was enough to bring the price of Bitcoin to its lowest level in 46 days, which almost erased the $2 billion September call (buy) option that expired on September 24. %.

There is still room for some surprises, especially considering that the deadline is 8:00 UTC September 24. However, the motivation for shorts does not seem to be great, because the test of less than $40,000 on September 21 resulted in the liquidation of less than $250 million in futures contracts.

On September 22, Evergrande Group confirmed that it would pay interest on onshore bonds, which eased some concerns about default. Despite this, investors still expect the company to miss the dollar-denominated bonds held mainly by international investors.

The recent volatility above the 48,000 USD on September 18th and 19th was not enough to break the resistance of the 20-day moving average. Considering that concerns about the spread of China's debt crisis have passed its peak, bullish people still hold the hope of "returning to the mean". In addition, the chairman of the US Securities and Exchange Commission (SEC) Gary Gensler did not take any short-term actions in an interview with the Washington Post on the 22nd.

Twitter Rolls Out Tipping Feature and Supports Bitcoin Payment!

 On September 23, local time, Twitter announced that it would allow users to use Bitcoin to tip their favorite content creators, that is, to reward contents.

This new feature, named Tips, will be rolled out to all Apple iOS phone users around the world this week, and will be available to Android users in the next few weeks. Previously, this feature has been tested in a small area for several months.

Twitter Accepts BitCoin to Tip Content Creators

According to reports, the launch of this feature is Twitter's latest move in fierce competition with rival platforms such as Facebook and Alphabet's YouTube. These platforms are competing for content creators that are popular with users, hoping to expand the user base and attract more advertisers.

In addition, the social media giant is constantly improving its website to help users get a safer experience. For example, Twitter is studying how to allow users to block specific words and sentences that they don't want to see in tweet replies. This move is essential to eradicate insults and abuse.

Rolls out tipping feature and supports Bitcoin payment among other efforts to pander to users! Do these measures help? Time will answer everything...

Will Bitcoin settlement by Large NY Home Developer Benefit Virtual Currencies?

 After El Salvador became the first country to use Bitcoin as its domestic legal currency, New York City began to adopt Bitcoin. A large real estate company in New York announced that it would sell real estate in some areas to purchase Bitcoin, and provide financial support for mainland China and Hong Kong. Buyers from all over the world have opened this transaction!

Not the real estate company alone, but the famous car company Tesla also supports the use of Bitcoin for settlement. Why do so many industry giants favor Bitcoin so much? Where is the value of this "semi-financial product" that is extremely volatile and has no government credit endorsement?

Bitcoin's ups and downs

It is no secret that Bitcoin halved in four years. It is almost a well-known thing in the industry. Every halving of Bitcoin will usher in a wave of price increases. Today, Bitcoin has experienced three halvings. , The price has risen all the way from twelve U.S. dollars, reaching as high as fifty thousand U.S. dollars at its peak.

Some people may not understand the concept of fifty thousand dollars. One bitcoin can buy a house in third- and fourth-tier cities. If you are lucky enough to buy dozens of bitcoins ten years ago, congratulations, Beijing, Shanghai and Guangzhou, you can choose whatever you want. A city settles down, but our country does not support Bitcoin settlement, and the country is actively cracking down on the hype of virtual currency.

Maybe they are preparing for the fourth cutting-half?

We all know that stocks need to be bought low and sold high to make money. There are many leeks in the stock market. Some people are stuck, some people can't hold back and are cut off, and only a small number of people make money. The same is true of Bitcoin. The price of Bitcoin is already very high. Why do these industry giants have the idea of Bitcoin?

There is only one truth, and that is the relatively low price of Bitcoin today. Their business sense tells them that after the fourth halving of Bitcoin is over, Bitcoin will usher in a new price, which is worth their toss about now.

Or, they are simply trying to resist inflation, after all, the printing press in the United States has never rested.