Because miners at scale compete in a low-margin industry, where their only variable cost is typically energy, they are incentivized to migrate to the world’s cheapest sources of power. 

“Every Western mining host I know has had their phones ringing off the hook,” said Carter. “Chinese miners or miners that were domiciled in China are looking to Central Asia, Eastern Europe, the U.S., and Northern Europe.”

One likely destination is China’s next-door neighbor, Kazakhstan. The country’s coal mines provide a cheap and abundant energy supply. It also helps that Kazakhstan has a more lax attitude to building, which bodes well for miners who need to construct physical installations in a short period of time. 

Didar Bekbauov runs Xive, a company that provides hosting services to international miners. Xive also sells the specialized equipment needed for mining. 

Bekbauov says that he’s stopped counting the number of Chinese miners who have called him to ask about relocation options, ranging from operations with 15 rigs to thousands. 

“One miner told us that only government electricity plants have restricted mining and private ones will continue to service miners,” Bekbauov told CNBC. 

“But most of the electricity is generated by government power plants, so miners will have to move. That makes them uncertain and desperate to find other locations,” he said.

Whether Kazakhstan is a destination or simply a stopover on a longer migration west remains to be seen. 

Arvanaghi is bullish on North America and thinks the hashrate there will grow over the next few months.

“Texas not only has the cheapest electricity in the U.S. but some of the cheapest in the globe,” he said. “It’s also very easy to start up a mining company…if you have $30 million, $40 million, you can be a premier miner in the United States.”

Wyoming has also trended toward being pro-bitcoin and could be another mining destination, according to Arvanaghi.

There are, however, a few major limitations to the U.S. becoming a global mining destination.

For one, the lead time to build the actual physical infrastructure necessary to host miners is likely six to nine months, Carter told CNBC. “The U.S. probably can’t be as nimble as other countries in terms of onshoring these stray miners,” he said.

The move logistics may also prove difficult. There is a shipping container shortage, thanks to the tailwinds of the Covid pandemic. 

But perhaps the biggest question is the reliability of the Texas power grid. A storm that devastated large swaths of the state in 2020 has reignited a debate over whether Texas should winter-proof its systems, a potentially costly project that might affect taxes or other fees for those looking to tap into the state’s power grid. More recently, ERCOT, the organization that operates Texas’ grid, asked consumers to conserve energy amid what officials called an unusual number of “forced generation outages” and an upcoming heat wave.

This content was originally published here.

Strategists are struggling to see a turnaround ahead for Bitcoin, at least for now, as the digital coin hovers around the $30,000 level.

The near-term setup is “challenging,” a JPMorgan Chase & Co. team including Josh Younger and Veronica Mejia Bustamante wrote in a note Friday, while Fundstrat Global Advisors LLC’s David Grider recommended reducing risk or buying some protection.

The JPMorgan team said blockchain data suggests recent cryptocurrency sales were made to cover losses and that “there is likely still an overhang of underwater positions which need to be cleared through the market.”

Bitcoin has halved from a peak near $65,000 in April, hurt by a cryptocurrency clampdown in China, tightening regulatory scrutiny elsewhere and concerns that the servers underpinning the virtual coin consume too much energy. The prospect of reduced emergency stimulus amid the recovery from the pandemic has also emerged as a possible obstacle for the most speculative investments.

Still, the JPMorgan strategists pointed to stability in the Bitcoin futures market as a positive factor, alongside the possibility of increased production costs as China’s crackdown pushes Bitcoin mining abroad. Some researchers argue the marginal production cost plays an important role in Bitcoin prices.

So while the “cryptocurrency market shows signs that it is not yet healthy, it does also appear to be beginning the process of healing,” they wrote.

The largest cryptocurrency fell as much as 6% to $30,296 on Saturday after dropping almost 8% on Friday. Other coins were also under pressure, with Ether dropping more than 5%. Some chart watchers view the $30,000 level as key for Bitcoin, contending a decline below it could open the way to retreat to $20,000.

Grider, lead digital asset strategist at Fundstrat, noted that a large short position has been building again on the crypto exchange Bitfinex — and said the last time there was a similar situation, negative news out of China took prices lower.

This content was originally published here.

Microstrategy Acquires Another $10 Million in Bitcoin, Company Balance Sheet Nears 100K BTC

On Friday, the incorporated and publicly listed business intelligence (BI) firm, Microstrategy announced the company has acquired an additional $10 million in bitcoin. The company’s CEO Michael Saylor revealed the latest purchase on Twitter with a link to a Form 8-K Securities and Exchange Commission (SEC) filing registered on March 5, 2021.

Microstrategy’s Bitcoin Buying Spree Continues

Microstrategy continues its bitcoin (BTC) buying spree announcing it bought an additional $10 million worth on Monday. The BI company’s CEO revealed the new acquisition on Friday, March 5, when he tweeted about the latest purchase on Twitter. “Microstrategy has purchased an additional ~205 bitcoins for ~$10.0 million in cash,” Saylor wrote. “At an average price of ~$48,888 per bitcoin,” he explained to his 598,000 Twitter followers.

Saylor added:

As of 3/5/2021, we hodl ~91,064 bitcoins acquired for ~$2.196 billion at an average price of ~$24,119 per bitcoin.

In addition to the tweet, Saylor also left a Microstrategy link that leads to a press release or scanned picture of the Form 8-K SEC filing. Of course, the Bitcoin community looked at the purchase as a positive and many people replied to Saylor’s latest announcement. “Should someone tell him the meme is ‘Stacking sats’ and not ‘Stacking 200 bitcoins?’ the popular Twitter account dubbed ‘Documenting Bitcoin’ wrote.

‘Microstrategy Discovered Bitcoin’s Potential Ahead of the Sleeping Herd’

Other people wrote that Saylor and Microstrategy have already seen the potential Bitcoin has to offer, and they want “to monopolize the bitcoin market.” “He has discovered the potential ahead of the sleeping herd will reap the rewards more,” Yasir Shaikh tweeted in response to Saylor’s $10M in bitcoin purchase statements. “I Believe soon Microstrategy will have as big a market cap as FAANG,” Shaikh added.

Microstrategy currently commands 0.4336% of the entire 21 million bitcoin supply cap and the firm is nearing the 100k milestone. It is the fourth largest entity listed on the web portal behind Grayscale, Mt Gox, and respectively. After the latest Microstrategy purchase some even jokingly said that Saylor and Microstrategy were addicted to purchasing .

First, you start with sats, then you start stacking a full bitcoin and can’t stop,” an individual wrote in response to Saylor’s purchase announcement on Friday morning.

What do you think about Microstrategy’s recent $10 million purchase of bitcoin and the company’s current stash of 91,064 bitcoins? Let us know what you think about this subject in the comments section below.

This content was originally published here.

Bitcoin prices have spiked since October — and the cryptocurrency is now closing in on $10,000, leading the way for digital currencies that have seen huge gains in 2017. Dan Kitwood/Getty Images hide caption

toggle caption

Dan Kitwood/Getty Images

Bitcoin prices have spiked since October — and the cryptocurrency is now closing in on $10,000, leading the way for digital currencies that have seen huge gains in 2017.

Dan Kitwood/Getty Images

Bitcoin’s price has already spiked more than 1,000-percent in the past 12 months. Now it’s flirting with another milestone: a $10,000 price for a single unit of the cryptocurrency.

Bitcoin’s rise has been both meteoric and volatile, with surges in valuation often being driven by positive reports about its status. Earlier this year, for instance, Japan recognized bitcoin as an official method of payment. It has also continued to attract interest from investors.

In early October, a single bitcoin cost less than $5,000 on currency exchange sites. A year ago, one could be had for around $730. But as of 7 a.m. ET on Monday, the price for a bitcoin was $9,770, according to data from the Coinbase currency exchange.

The digital currency slipped below $9,700 after reaching that mark; the analyst site Coindesk (which is affiliated with Coinbase) says it expects bitcoin to pass “the psychological milestone of $10,000 today,” citing recent momentum. The price roared past $9,000 over the weekend.

“Bitcoin’s price has been helped in recent months by the announcement that the world’s biggest derivatives exchange operator CME Group would start offering bitcoin futures,” Reuters says. “The company said last week the futures would launch by the end of the year though no precise date had been set.”

Another factor has been the move to split the original bitcoin segment into two currencies: bitcoin classic and bitcoin cash. That change, which became official in August, has allowed large trades in the currency to occur more frequently, while also promising to bolster its infrastructure.

When bitcoin surpassed $4,300 in August, the CryptoCoinsNews site declared a “flippening” was taking place, as bitcoin, with a market size of more than $70 billion, had gained “a greater total valuation than payment-processing behemoth PayPal.”

Citing the current rise, CryptoCoins says the total market capitalization of all cryptocurrencies — led by bitcoin and its rivals, ethereum and Ripple — has now topped $300 billion for the first time, making them more valuable than Bank of America, which has a market cap of around $280 billion.

Investment analysts have often split on the issue of cryptocurrencies, citing their status as a both an emerging technology and an emerging form of exchange and investment.

CNBC quotes Bob Doll, chief equity strategist at Nuveen Asset Management, saying, “I confess it’s an area of that to me feels speculative, but you might call me old or old-fashioned. It’s been an amazing run, has it not?”

This content was originally published here.

President Donald Trump reportedly plans to sign an executive order today creating something called the American AI Initiative. The executive order is apparently a symbolic nod to artificial intelligence that doesn’t create any new funding but encourages the federal government to do more with AI. And we can’t help but wonder, what are the odds that President Trump knows anything about what he’s signing today?

We don’t even mean to be snarky or mean by asking the question. But it’s worth asking given the president’s dangerous incompetence and complete lack of intellectual curiosity. Does President Trump, someone who regularly insists that he knows a lot about technology but has used a computer maybe twice in his entire life, have any idea what he’s signing later today? Do you think Trump could describe in even the most basic terms what his new American AI Initiative seeks to accomplish? As reported by multiple news outlets, the American AI Initiative is simply a “strategy” to get the federal government more involved in artificial intelligence.

The executive order will seek to “redirect” existing funding, but it’s not clear where that funding will be “redirected” from. All we know for sure is that it won’t be redirected from billionaires. They already got a huge tax break in one of the largest transfers of wealth from the poor to the rich in modern history. If nothing else, the White House seems to have provided plenty of meaningless buzzwords about the AI endeavor.

“We’re excited to be developing principles and an agenda with American values in mind,” one anonymous Trump regime official told the Wall Street Journal. “That is something we’re excited to share with the world.”

“This executive order is about ensuring continued America leadership in AI, which includes ensuring AI technologies reflect American values, policies, and priorities,” an anonymous official told Axios.

“AI is something that touches every aspect of people’s lives. What this initiative attempts to do is to bring all those together under one umbrella and show the promise of this technology for the American people,” an anonymous Trump regime official told Reuters.

What does any of that mean? Your guess is as good as ours. And we expect to hear precisely as much stirring detail about it after President Trump signs the thing later today. What are the odds that Trump’s aides simply said the words “it’s to fight China” and Trump said okay before turning his attention back to Fox News? Pretty good.

If it seems like you’re seeing the news of President Trump’s executive order everywhere this morning, that’s by design. News organizations all hit publish on their stories at midnight, presumably because the White House approached them with a news “embargo.”

The stated purpose of a news embargo is to allow news organizations time to talk with experts and get an independent opinion without rushing a story to press. Gizmodo honors embargoes all the time, especially for science coverage. But embargoes are often used for cynical, public relations purposes. And this appears to be a case of the latter. It’s almost as if the White House was able to press “publish” on half a dozen press releases simultaneously, all while keeping the government sources completely anonymous for some reason.

It’s genuinely strange that the Trump regime is able to get away with this kind of control over news in an environment where they’ve ruined so much. The president has been exposed as arguably the most corrupt politician of the past 100 years as he continues to profit from his position in countless ways and his own lawyer is going to jail for something that the president instructed him to do. Not to mention that President Trump has overseen some of the most barbaric human rights violations on American soil in recent memory through his immigrant family separation policy—something that Trump regime members still insist isn’t an actual policy despite overwhelming evidence to the contrary.

Two children have even died in government custody in recent months and countless others are enduring systematic child abuse through the country’s concentration camps for asylum seekers. And yet everything is moving along like normal. The White House still issues news embargoes and media organizations still publish what the White House wants them to publish precisely when the White House wants them to publish it.

And to make matters even more strange, congressional talks have apparently broken down and America is headed toward another government shutdown on February 15 over the president’s racist border wall with Mexico.

Yes, it seems like it’s going to be another of those weeks. But if we’re being honest with ourselves every week is one of those weeks now.

This content was originally published here.

Cameron Winklevoss, thought to be one of the largest holders of bitcoin, thinks the cryptocurrency’s blazing gains this year are just the start. He predicts it will rise as much as 20-fold as investors come to view it as an upgrade to gold.

Wall Street’s plan to launch futures contracts on Sunday, making it easier to bet against the digital currency’s rally in recent months, is making some enthusiasts nervous — but not Winklevoss. He’s one of the famed 36-year-old twins who played an early role in

Winklevoss bases his price projection on the market value of gold, which he pegged at about $6 trillion and others calculate at closer to $7.5 trillion. Investors are beginning to embrace the idea that bitcoin, “mined” by computers performing complex calculations, is more portable and divisible than the precious metal, he said.

“We think that bitcoin is a gold disruptor,” Winklevoss said in a telephone interview on Friday, predicting it may yet appreciate by 10 to 20 times its current value. “We think it’s just the beginning. We are definitely holders.”

Winklevoss can point to a strong track record as a bitcoin investor. He and his brother Tyler said in 2013 that they owned almost $11 million worth of bitcoins. If they retained that stake it would be valued at more than $1.7 billion today, according to the Bloomberg Billionaires Index. The ranking calculates they each have a $1 billion fortune as of Friday after taking into account other assets. Cameron Winklevoss declined to comment on his current bitcoin holdings or his net worth.

While enthusiasts have long argued bitcoin’s merits as a payment system, public sentiment has warmed this year, eventually turning into a frenzy. As people around the world snapped up coins, prices surged, briefly surpassing $16,000 this week before settling above $15,600 on Friday. More than 100 hedge funds have popped up to bet on its swings. The new futures contracts may facilitate those wagers, while also pushing the crytpocurrency further into the realm of mainstream finance.

The Winklevosses’ Gemini exchange is preparing to support the launch of Cboe Global Markets Inc.’s bitcoin futures on Sunday. Their platform has its own data center running its own hardware and infrastructure, Cameron Winklevoss said.

“We think we are in a good spot and ready for game time,” he said.

This content was originally published here.

3 min read

The rise in popularity of cryptocurrency and its seemingly never-ending array of coins has had many calling into question whether or not crypto coins could be used as legitimate forms of currency.

Governments in certain countries, such as China, have even gone so far as to impose certain restrictions around trading and using cryptocurrency in order to prevent its consumer influencer from growing.

But Wednesday, El Salvador made history by becoming the first country to allow popular cryptocurrency Bitcoin to be legally accepted as a form of currency.

The Bitcoin Law was passed by a “supermajority” in a 62-22 vote by the country’s congress.

“The purpose of this law is to regulate Bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out,” El Salvadorean president Nayib Bukele outlined in a document uploaded to his Twitter account.

The document states that Bitcoin can be used and must be accepted by any business or for any retail purchase and in tax contributions, and that exchanges of Bitcoin will not be subject to any capital gains tax.

I’ve just sent the #BitcoinLaw to Congress

— Nayib Bukele  (@nayibbukele)

The U.S. dollar will still be used as the “reference currency” for the country, with the exchange rate between the two tenders being freely established by the market.

The law also states that “Every economic agent must accept Bitcoin as payment when offered to him by whoever acquires a good or a service,” with an exception given to businesses or sellers who do not have access to technologies that allow for access to cryptocurrencies.

A subsequent clause explains that in the event that a business does not want to hold on to the Bitcoin and assume the risk of the ever-changing volatility of the cryptocurrency, there will be trust created within the country’s central bank that will essentially eat the risk and instantly convert the Bitcoin to U.S. dollars.

“El Salvador’s proposed Bitcoin Law makes clear in several places that the government will provide resources to ensure that Salvadorans can be trained in the use of Bitcoin and gain access to the technologies (e.g. smartphones, software, bandwidth) necessary to use it,” Bukele wrote in another tweet.

Bukele also shared that a new Bitcoin mining hub will be built in the country using volcanic energy harvested from a manmade well.

Bitcoin is known for its volatility. 

Its valuation is known to skyrocket or plummet seemingly instantaneously at times, with the coin’s record high reaching a price of around $64,000 earlier this spring. 

Bitcoin was up over 10% in a 24-hour period as of late Wednesday afternoon.

This content was originally published here.

To celebrate Chinese New Year 2020 (the year of the rat), we are issuing a brand new limited edition NFT – Happy New Year 2020

Follow the steps and earn a limited edition Binance NFT! Here’s how:

Activity period: 2020/1/21 3:00 pm (UTC)2020/1/27 3:00 pm (UTC)

How to take part:

1. Follow @Binance on Twitter or Facebook

3. Retweet or Share the activity post on social media with #BinanceCollectibles

4. Fill in this form with:

Your ERC-1155 compatible wallet’s ETH deposit address

The social media account you used to complete the above requirements and share the activity with #BinanceCollectibles

Your Binance account referral ID

(For users in Nigeria, please fill in this form instead.)

WARNING: If you do not use an ERC-1155 compatible wallet, you will be unable to receive the NFT.

We recommend using Trust Wallet to receive your NFT.

DOWNLOAD TRUST WALLET HERE and learn how to create a wallet with Trust here

New Year’s Gifts

As a New Year’s gift, if you don’t have a Binance account yet, you can sign up here for a 10% discount on trading fees.

If you have still not opened a Binance Futures account yet, go here and enter code “10discount” as shown below, to get a 10% discount on futures trading fees for the first 30 days. 

How many of the Limited edition: NFTs will be minted?

Happy New Year 2020 will be minted as per the number of eligible participants when the promotion ends. 

1. A maximum of one collectible can be redeemed per ETH deposit address, social media account and Binance account.

2. If you do not use an ERC-1155 compatible deposit address, you will be unable to receive the collectible. We recommend using Trust Wallet for a no-stress setup.

3. If you fail to complete one or more of the set tasks you will not receive a collectible.

4. To qualify you must share the collectibles give away promotion on social media either directly, or by retweeting/sharing etc.

5. The Binance referral ID provided must be valid.

6. The Happy New Year 2020 NFTs will be minted and sent to eligible addresses within 14 days of the promotion ending.

7. The 10% discount on Binance Futures trading fees lasts for 30 days then expires. 

8. Binance reserves the right to disqualify anyone who is deemed to break any of the above rules or act with malicious intent.

9. Binance reserves the right to cancel or amend any Activity or Activity Rules at our sole discretion.

10. Entrants’ requirements will be validated prior to the winners being drawn. In the event an entrant does not meet the requirements they will be removed from the list of possible winners.

11. The 10% discount for Binance spot and margin markets will remain valid as long as the current referral program is in place.

Risk warning: Buying, selling, holding and partaking in futures trading of cryptocurrencies are activities that are subject to high market risk. The volatile and unpredictable nature of the price of cryptocurrencies may result in significant loss. Binance is not responsible for any loss that you may incur from price fluctuations when you buy, sell, hold and leverage cryptocurrencies.

This content was originally published here.