For the second time this week, Bitcoin receives a hard slap from China and backs down as the country escalates its crackdown on crypto mining.
Energy measures against Bitcoin crypto mining in China!
As Bitcoin’s crypto adoption has increased, so have concerns regarding the environmental impact behind crypto mining.
In this regard, China’s financial committee stated during a meeting that Bitcoin mining should be monitored with the aim of” resolutely preventing and controlling financial risks, ” which caused crypto to recede.
In this way, a report was published that includes a long list of other activities beyond Bitcoin crypto mining that are worrisome for China. Thus, the report covers the reform of small and medium-sized financial institutions. In addition to mitigating the effects of illegal securities activities and “responding effectively to imported inflation”.
«It is necessary to maintain the proper functioning of the securities, debt and foreign exchange markets, severely repress illegal securities activities and severely punish illegal and criminal financial activitiesthe report states.
And the news from China has affected the price of Bitcoin given that it has retreated by 8.4% over the past 24 hours.
Crypto environmental impact is on everyone’s lips
Once again we find signs that the debate over the environmental impact of crypto is gaining momentum.
In this connection, crypto exchange BitMEX is taking its first steps in a pro-environment direction. In this regard, the crypto exchange has decided to offset the carbon emissions caused by withdrawals from the platform.
Specifically the crypto exchange will donate at least $ 0.0026 for every $ 1 of blockchain fees its customers pay.
In this way, it is worth noting that a research by Galaxy Digital Research showed that the banking system and the gold industry consume more energy than Bitcoin. Yeah, that’s right.
The crypto leader consumes a year 114 terawatts (TWh / year). Meanwhile, the total energy consumed by the banking system amounts to one 263.72 TWh per year globally.
However, Bitcoin certainly has the ability to reduce its environmental impact and should therefore do so. But what this kind of research seeks is to open your eyes and show that, in fact, Bitcoin is still better than the current banking system.
Bitcoin has a scalability problem and its solution is Lightning
Once again Tesla CEO Elon Musk uses his social network on Twitter to communicate with the crypto community. In this opportunity Musk stated that ” The energy use of Bitcoin hash (also known as mining) is beginning to surpass that of medium-sized countries. It’s almost impossible for small hasher to succeed without these huge economies of scale.”
He therefore stated that “for now, Lightning is needed”. In this way, Musk is become a Lightning Network defender.
Crypto Bitcoin ETF in Canada presented serious problem
If it has already been a terrible week for the crypto market, Canada’s crypto ETFs are on high alert.
According to the Financial Times, Bitcoin ETFs issued “market disruption” warnings to warn their investors.
In fact, Horizon crypto ETFs warned their investors that they will not be able to comply with buy and sell orders in case market conditions do not improve.
It is worth remembering that it is precisely these ETFs that invest in Bitcoin futures on the Chicago Mercantile Exchange. And, as many will know, that exchange stopped its operations due to the mass sale that it was observing.
In a few lines…
- A study ensures that the power consumption of the Ethereum crypto network will be more efficient, by at least 99%, following the ETH 2.0 update.
- Teucrium joins crypto firms filing their application for a Bitcoin ETF with the SEC.
- Australia’s Minister of Financial Services assured that cryptos are part of people’s personal choice and responsibility. And, therefore, it will not stand in the way.