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.

JPMorgan Chase: Institutional investors are dumping Bitcoin and turning to Ethereum!

 On Wednesday, JPMorgan Chase wrote in a report that as market expectations for Bitcoin's rise weakened, institutional investors were avoiding Bitcoin futures trading and turning to buying Ethereum futures.

Analysts pointed out that the CME Group Bitcoin futures trading price in September was lower than the Bitcoin spot trading price. "This phenomenon reflects the weak demand for Bitcoin from institutional investors."

Under normal circumstances, the price of Bitcoin futures is usually higher than its spot price.

Since August, institutional investors have turned to buying Ethereum. JPMorgan Chase quoted CME data to show that the 21-day Ethereum futures premium was 1% higher than that of the Ethereum spot during the same period, reflecting the strong divergence in demand for this cryptocurrency.

 "This shows that institutional investors have more demand for Ethereum than Bitcoin." The analyst wrote in the report.

 Last month, the price of Ethereum fell by 3%, while the price of Bitcoin fell by 10%.

Virtual currencies plummeted across the board, with more than 258,000 liquidated positions

The butterfly effect appears? Virtual currencies plummeted across the board, with more than 258,000 liquidating positions.

In March 2021, on the Hupu Forum, there was a ridiculous post that tens of thousands of people followed: "Bitcoin or Evergrande, whose bubble is bigger?"

At that time, people might not have expected the debt crisis of Evergrande, China's first real estate company, to come so quickly. The excessively rapid and disorderly expansion combined with excessive financialization has made Evergrande now shaky.

After 6 months, Evergrande and Bitcoin once again have a delicate relationship. The butterfly effect induced by the Evergrande debt crisis seems to have become an important incentive for the sharp drop in Bitcoin. On the evening of September 20th, Beijing time, Bitcoin suddenly dropped by nearly 10%, falling below 43,000 U.S. dollars, and the short-term decline reached 4,000 U.S. dollars. Other cryptocurrencies also fell by more than 10%. The prices of mainstream cryptocurrencies reached their lowest level in a week. , As of the posting, Bitcoin is quoted at $43,961.91.

How Come Fake News Trigger a $216 Million Liquidation in Bitcoin?

The trust-based Cryptocurrencies are now plagued by fraud and lies. It is not new that a celebrity can lead the rise and fall with a single word, and even an unverified event can drive a huge market volatility. Litecoin (LTC) has experienced this recently.

On September 13, U.S. Eastern time, a news from GlobeNewsire, a press release distributor under Intrado under Apollo Global Management, that "Walmart Announces Support for Online Payments with Litecoin" was forwarded by Bloomberg, Reuters, CNBC and other media and detonated the cryptocurrency market. Litecoin rose more than 37% to US$236. Affected by it, Bitcoin once fell below US$44,000.

Of course there is a reversal. After a few minutes, the official social media account of the Litecoin Foundation, which reposted this news, quickly deleted the tweet. GlobeNewsire issued a statement stating that reporters and other readers would ignore the press release, and Walmart also came forward to clarify its relationship. Litecoin has nothing to do with it. Within 30 minutes of "refuting the rumors," Litecoin gave up more than 30% of its gains and fell below $180.

Litecoin 24-hour Price Trend. Data source: Coindesk

This is not just an oolong moment exclusive to Litecoin. Fake news and fraud have been disrupting the cryptocurrency market. According to US Federal Trade Commission (FTC) survey data, nearly 26,500 crypto fraud cases were reported in the country in 2020, with a total loss of 419 million U.S. dollars, and this year's loss will exceed this value. Under such an ecological environment, comprehensive supervision may only be a matter of time. On September 14, local time, the chairman of the US Securities and Exchange Commission (SEC), Gary Gensle, stated in the hearing that he is cooperating with other institutions such as the Federal Reserve to clarify the regulation of the encryption field to protect investors.

The Litecoin moment

The news distribution platform GlobeNewswire is the fuse for Litecoin's oolong wave. On September 13, local time, GlobeNewswire issued a press release stating that Walmart, the world's largest retailer, has reached a partnership with Litecoin and will include Litecoin as its payment method from October.

Bitcoin became legal tender, but the price dropped by more than 18%

Bitcoin obtained the same status as the U.S. dollar. This country chose to list it as legal tender, but the price plummeted by 18% in a single day, evaporating 27.8 billion yuan in one day. Why did Bitcoin fluctuate so much?

Bitcoin becomes legal tender

Speaking of Bitcoin, this is a virtual currency theory proposed by a Japanese-American Satoshi Nakamoto. It was officially born on January 3, 2009. It is different from ordinary currencies. This type of currency is a transaction that is realized through peer-to-peer data transmission and is safe. The sex is guaranteed by the encryption design. It is such an obscure-sounding virtual currency that has now become a legal tender that keeps pace with the US dollar.

On September 6, the price of Bitcoin rose to 52,000 U.S. dollars, and on the next day, the Central American country El Salvador proposed a new decision, which clearly stated that Bitcoin will be used as domestic legal tender and allowed to engage in market circulation. Trade and open a bitcoin account to get a $30 bitcoin reward.

In fact, as early as June of this year, El Salvador has already proposed and passed this decision, and it is expected to be formally implemented in September. El Salvador officially expressed the hope that the legalization of Bitcoin can achieve investment in domestic businesses, and it is also for the convenience of overseas Chinese. Transfer of foreign exchange.

As of September 8th, El Salvador had purchased 550 Bitcoins. Based on the Bitcoin price at the time, El Salvador had spent 26 million U.S. dollars in one go. Not only that, El Salvador has also set up a 140 million U.S. dollar fund to help users convert U.S. dollars into Bitcoin for use.

After El Salvador officially announced the news, the price of Bitcoin continued to rise. Until September 8, the transaction price of Bitcoin exceeded $52,600.

BitCoin Prices plummeted by 18%

At present, El Salvador has become the only country in the world to do so. At first, the decision was strongly opposed by its nationals. Since June this year, its nationals have continued to take to the streets to protest.

According to an information survey conducted by the University of Central America, nearly 70% of respondents indicated that they refused to change Bitcoin to legal tender.

Most of them think that they don’t know how to use Bitcoin, and doing so will only disrupt the economic order of the country. Of course, there are also people who approve of the bill in the country. They believe that the acceptance of Bitcoin is on the rise. By then, other countries will Will also participate in it, and El Salvador will also benefit from the advance layout.

As El Salvador’s move drew debates between support and opposition, the price of Bitcoin has also seen a continuous rise in a short period of time. The combination of a variety of unstable factors has caused the transaction price of Bitcoin to start to fall, just at 9 On the 7th of July, the transaction price of Bitcoin shrank by 18% in one day, and the single transaction value fell to $43,000.

US$4 billion evaporated a day

At present, investors' enthusiasm for Bitcoin is very high, and most countries are cautious about the virtual currency. Few countries like El Salvador have tried it first.

For El Salvador, increasing bitcoin holdings is mainly for self-interest. According to foreign media reports, El Salvador has a total population of 7 million, of which 25% of the residents go overseas, mainly in developed countries such as the United States.

After earning income, these overseas workers send the money back home for family use by mail, which brings a huge amount of foreign exchange income to El Salvador. As of 2020, El Salvador’s central bank information stated that the total foreign exchange of domestic overseas nationals Has reached 5.9 billion US dollars.

And this will also incur some additional costs, such as a 10% cross-border remittance fee. However, if you use Bitcoin to transfer money, such a fee does not exist. Therefore, El Salvador’s biggest idea with Bitcoin is to save foreign exchange expenses.

As early as August 23 this year, El Salvador officials stated that the country is installing Bitcoin self-service ATMs throughout the country, with a total of 200 self-service ATMs installed in 50 domestic financial centers.

However, this approach has not been widely recognized internationally. Not long ago, the International Monetary Fund stated that Bitcoin is indeed safe and can avoid high circulation costs, but the potential risks far outweigh the benefits.

The IMF stated that in order to avoid affecting domestic economic development and international economic order, it will try to reduce its currency dependence on Bitcoin as much as possible.

But now Bitcoin has already had problems. On September 7, a total of 400,000 Bitcoins in the world were sold out, and losses amounted to more than US$4 billion.

Research shows that 8 bitcoins scrap an RTX 3090 graphics card

It only takes 8 small Bitcoin transactions to produce a waste of scrapped Nvidia GeForce RTX 3090 graphics card. This is a conclusion drawn from a report on the electronic waste of the basic infrastructure of cryptocurrency. One transaction is equivalent to throwing away Two iPhones.

There are many articles on the ecological impact of cryptocurrencies such as Ethereum and Bitcoin, but not many articles on the impact of e-waste generated by "mining".

According to a study published by economists from the Dutch Central Bank and the Massachusetts Institute of Technology, “Bitcoin’s increasingly serious e-waste problem”, it is estimated that “Bitcoin’s e-waste production totals 30.7 metric tons per year as of May 2021. This The figure is comparable to the amount of waste generated by small IT and telecommunications equipment in a country like the Netherlands."

Twitter, Tesla, Paypal and other Giant companies Entered Cryptocurrency Market

Recently, a number of well-known companies announced their plans on the virtual currency market.

Among them, VISA disclosed their investment in CryptoPunk and plans to buy more NFTs in the future; on the other hand, Meitu's second quarter financial report shows that the book encryption investment loss is as high as 100 million yuan, mainly caused by the falling price of Bitcoin; it is pushed today. Te also announced the launch of Bitcoin-based payment functions, including support for the Lightning Network.

As more and more giants enter the crypto market, a new wave of adjustments to the global asset structure will be set off, with opportunities and risks coexisting. What other companies have joined the "Colosseum" of this new type of asset, how are they deployed, and what kind of logic is hidden behind them? This article has done some analysis.

Low return rate of unbearable fixed income, proactively allocate high-risk assets

The rate of return is one of the most important indicators of listed companies, and many deployments are centered on the goal of maximizing profits. Therefore, even if they have many reasons to enter the crypto asset market, the motivation behind it must be to optimize financial performance.

In the past two years, the performance of the U.S. dollar has been recognized as weak, coupled with low market interest rates, and 10-year treasury bonds and fixed-income products have too low returns. In order to increase cash yields, many U.S. stock companies have carefully allocated a certain percentage of bits. currency.

VISA

VISA’s main business is payment, settlement and clearing, but its activities in the crypto market are becoming more and more active. Not long ago, it bought an NFT numbered 7610 in CryptoPunk at a cost of approximately US$150,000.

Because as a listed company, its operations cannot arbitrarily deviate from its main business. In addition, it must comply with regulatory requirements. The proportion of high-risk investments must be controlled at a low level. Therefore, US$150,000 is compared with VISA’s foreign transactional investment scale. Only accounted for less than one thousandth.

FileCoin to Surpass Bitcoin in the future?

As the pioneer and weathercock of the cryptocurrency market, Bitcoin fell by half in May last year, making it more difficult to mine! However, Bitcoin mining projects were completely eliminated due to inherent defects such as excessive mining energy. There is no real good project for Bitcoin miners, and this provides an excellent opportunity for the rise of FIL.

The mainnet of FileCoin was launched on October 15, 2020. Let's take a look at the overall trend of FileCoin. FIL is on the mainline and has been fluctuating around 20 U! At that time, it was still going high and then low, fluctuating slightly. This is the bottoming stage, the more stable, the greater the upside potential. There is a minimum production cost price for a product, and so does currency. In general, the launch time of FIL is very short, and there is still a long way to go in the future. Bitcoin mining has grown to tens of millions of times after more than ten years, and the cost of Bitcoin mining is also lower. high. Currently, FIL currency miners enter the market, and they are very likely to become early Bitcoin miners in the future!

Five advantages ensure that FIL miners get huge profits:

First, the price of Filecoin has fluctuated greatly since its launch, and the currency price is in the initial stage of development. The impact of higher currency prices on the income of miners is limited in the early stages, but lower currency prices can reduce costs.

Second, the filecoin mainnet has been online for less than a year, and the earliest reference Btc appeared in 2009. It has gone from no one to a ten-thousand-fold increase in value. Whether it is btc or Ethereum, it is not a linear appreciation, but a rampage between big and small bulls and bears.

Filecoin has established a special economic model that requires miners to prepare a certain amount of fil as pledge and gas in advance. Purchase demand, the total demand can be calculated.

Fourth, FIL faces a trillion-level storage market and has practical storage applications. Filecoin provides a massive data storage architecture to meet the needs of the times. The referenced storage resources, retrieval services, bandwidth resources, and construction of the next generation Internet system.

FIL's attention has shifted from retail investors to institutions. The increase in holdings of Grayscale Digital Assets is enough to explain everything. Therefore, many analysts believe that the future development of FIL coins is immeasurable.

In fact, the most promising project in recent years is IPFS. During this time, most of the funds in the circle will flow to the filecoin distributed data storage industry! FIL mining is bound to become more and more popular! The FIL coin mainnet has been launched for less than a year, and the earlier the layout, the more early the dividends will be.

But markets shows that all such claims seem to be mere spins and hypes attempted by FileCoin's stakeholders...

World's largest Bitcoin mining pool divested from Bitmain

 After China's regulatory ban on cryptocurrency mining business, mining companies are accelerating the transfer of domestic mining machine business overseas.

On July 27, Bitmain announced the divestment of its mining pool brand Antmining Pool and will carry out this part of the business overseas.

Prior to this, Huobi Mall and Lebit Mining Pool have suspended domestic mining operations, and Canaan Technology and Bit Mining have all transferred these businesses overseas.

Stripping off the "Antpool"

On July 27, Bitmain announced that it was divesting its mining pool brand "Antpool". The relevant person in charge of Bitmain told the Cailian Community Blockchain reporter that the divestiture of Ant Mine Pool began in the first quarter of this year, and completed communication with shareholders in March, and then began the divestiture. All laws were completed on May 1st. Layer peeling.

Bitmain said that it is still doing some business sorting and will complete related actions as soon as possible. After receiving the support of new shareholders, Ant Pool will independently carry out mining pools and other businesses overseas.

Ant Mining Pool is a cryptocurrency mining platform launched by Bitmain in November 2014. It provides mining services for multiple cryptocurrencies including Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, etc. The hash rate of this mining pool has always been at the forefront.

According to third-party computing power statistics, in the Bitcoin mining pool computing power rankings, as of 12:00 on July 29, the ant mining pool ranked first in the world with a real-time computing power of 16,968.48PH/s. However, the computing power has fallen by nearly half from the May high.

Domestic mining companies all go abroad

Since the beginning of this year, the regulatory crackdown on cryptocurrency-related businesses has been escalating.

In mid-May, the China Payment and Clearing Association and other three associations jointly issued a notice to prevent virtual currency speculation, requiring financial institutions not to conduct related businesses. On May 21, the meeting of the Financial Committee of the State Council also made it clear that it would crack down on Bitcoin mining and trading.

Since then, Inner Mongolia, Xinjiang, Yunnan, Sichuan and other places have successively introduced policies to clean up and rectify virtual currency mining-related industries and strictly prohibit mining operations.

In addition to severely cracking down on mining, the central bank also interviewed a number of banks and payment institutions, requiring a comprehensive investigation and identification of virtual currency exchanges and over-the-counter dealers' capital accounts, and timely cutting off the transaction funds payment link.

After that, for the mining business, many domestic mines and mining machine manufacturers began to "shut down" and "go overseas" strategically.

On the evening of July 28th, Bitcoin Mining announced that it had purchased 2500 brand new Bitcoin mining machines to be shipped to Kazakhstan by means of payment. The company has deployed 3,819 Bitcoin mining machines locally.

Earlier in June, Canaan Technology announced that it had officially opened its self-operated mining business in Kazakhstan. Mining machine operators, including Huobi Mall and Lebit Mining Pool, decided to suspend mining business in China.

A Sichuan mine owner told the Cailian Community Blockchain reporter that all his mines have been shut down and he is looking for opportunities to go to sea. In order to avoid gathering together in Iran, Kazakhstan and other mines, he said that he might Move the mine to Southeast Asia.

Can the AI ​​chip business rise?

In addition to shutting down mining farms and relocating to the sea, supervision of the pursuit and interception of cryptocurrency-related businesses has also forced blockchain-related companies to focus more on technological breakthroughs.

Bitmain said that in the future, the company will continue to focus on the R&D and sales of computing power chips and servers based on its technological advantages in the field of chip design, hardware R&D and manufacturing.

In the cryptocurrency computing power arms race, as the world's largest mining machine manufacturer, Bitmain has witnessed the historical progress of Bitcoin mining machine chips from CPU to GPU to ASIC dedicated chips, and its mining machine chip technology route has also gone through The evolution from 55nm to 28nm to 16nm and then to 7nm and 5nm.

In an interview with Cailian Community Blockchain reporters, Lu Xiaobao, head of the Chuangxing Semiconductor Investment Group of China Science and Technology, analyzed that AI chips cover a wide range of information processing, such as voice, image, video, and automatic driving. Different information processing is suitable. With different algorithms, chips with different architectures are needed to obtain higher computing efficiency. The core is the ratio of computing power to power consumption. From a technical point of view, the underlying technology between the Bitcoin mining machine chip and the AI ​​chip is the same, but the scene is more fixed, that is, the mining algorithm, and the competition is also the power-to-power ratio.

"From the perspective of underlying technical capabilities, it is feasible for mining machine manufacturers to transform into AI chips. However, the core of the difficulty of transformation depends on the understanding of AI chip application scenarios. Different scenarios need to adapt to different chip architectures and algorithms. Technology itself is only a means of realization." Lu Xiaobao said.

Bitcoin Went like a Roller Coaster, and 5 Major Risks Lurks in the 2nd Half

Bitcoin's performance was stable in early 2021, reaching an all-time high of nearly $65,000 in April. However, in the first half of this year, the price of this digital currency fell by about 47% from a record level, and some looming risks may cause further pain in the future.

Although supporters seem to hold Bitcoin temporarily, other investors are cautious about the violent market volatility and its impact on their investment portfolios. On June 1, market analyst Ryan Browne wrote that as time enters the second half of this year, cryptocurrencies face the following five major risks:

Five risks lurk for Bitcoin in the second half of the year

①Supervision

One of the biggest risks Bitcoin currently faces is regulation.

Last week, the global crackdown on cryptocurrencies spread to the United Kingdom. British regulators banned the leading digital currency exchange Binance from engaging in regulated activities.