2B4CH, a Swiss non-profit think tank assisting the state in exploring cryptocurrencies like Bitcoin (BTC) and blockchain technology, is launching an initiative that could make Bitcoin one of the countrys reserve assets.

On Friday, the association announced plans to start a popular federal initiative by collecting 100,000 signatures for the introduction of Bitcoin to article 99 clause 3 of the Swiss federal constitution.

The initiative specifically proposes to add Bitcoin to the list of assets held by the Swiss central bank, which would change the constitutional clause to: The Swiss National Bank shall create sufficient currency reserves from its revenues; part of these reserves shall be held in gold and Bitcoin.

Whether the vote is successful is not really relevant, as the initiative is focused on gathering signatures to make this proposal be presented to the Swiss citizens to vote, 2B4CHs founder and chair Yves Bennaim told Cointelegraph.

If the signatures are gathered successfully, the vote will legally have to happen, and so will the conversations and debates, eventually informing and educating better everyone in Switzerland, and hopefully worldwide, as we set the example, Bennaim said. We hope the vote will be successful, but even if it isnt, it will already be a success if the topic is brought to the public debate, he noted.

If the vote is successful, the Swiss National Bank, or SNB, will need to learn how to add Bitcoin into its reserves, holding it the best and safest way, which would make Switzerland one of the worlds leading nations in the industry and benefit its economy on many levels, Bennaim stated, adding:

According to Bennaim, 2B4CH is still at the preliminary stage of the project, now testing the potential interest in the initiative. The next steps include presenting the project to the confederation and collecting signatures officially. When this phase is successfully finished, it will take months or even years before the vote is actually taking place, Bennaim said.

Related: More countries to follow El Salvadors Bitcoin move, Cardano creator says

Founded in Geneva in 2017, 2B4CH is an independent non-profit association studying social and financial transformations brought by Bitcoin and blockchain technology as well as the impact of decentralized cryptocurrencies. The think tank counts fewer than 20 members so far and doesnt accept donations to protect its independence and the privacy of its members.

Switzerland has emerged as one of the most crypto-friendly countries around the world, with the canton of Zug piloting Bitcoin payments for public services back in 2016. Last month, the Swiss Financial Market Supervisory Authority approved the countrys first crypto fund after authorizing the SIX Swiss Exchange to launch a digital asset marketplace.

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Swiss think tank initiates vote to add Bitcoin in federal constitution - Cointelegraph

ROCKDALE, Texas (CBSDFW.COM) As China pushes out more than half of the worlds cryptocurrency miners, many are fleeing to Texas to cash in on the states cheap electricity.

Off a rural two-lane road in Rockdale, Texas, sits the largest cryptocurrency mining operation in North America.

The 100-acre Whinstone facility is made up of rows of buildings the length of nearly three football fields.

Whinstone facility (CBS 11)

Inside are more than 115,000 computer servers mining for Bitcoin. These high-powered servers are called miners.

Our job is to build the infrastructure for the backbone of Bitcoin in North America, and we are doing it every day, said Whinstone CEO Chad Harris.

Harris began building the massive facility 160 miles south of Dallas less than two years ago and is currently building four new buildings that will more than double its mining capacity.

Whinstone is just one of several companies that have recently built large cryptocurrency mining facilities in rural Texas leading some to dub the Lone Star State as the new Bitcoin mining capitol of the world.

inside Whinstone (CBS 11)

Bitcoin is not a physical coin. Its a digital file that exists only on the internet.

The process of making new Bitcoins is called Bitcoin mining.

The way mining works is whenever someone buys or sells a Bitcoin, a new unique digital coin needs to be made.

To do that, computers around the world race to solve a complex math problem.

The computer that does it first produces the new Bitcoin and then is rewarded with Bitcoins for themselves.

While Harris noted the local workforce and state tax incentives among his reasons for choosing to build his facility in Texas, he said the key to any large cryptocurrency mining operation is having enough electricity for all the high-powered computers.

When in full operation, the Whinstone facility uses the same amount of electricity as 150,000 homes.

The electricity it takes to produce a single Bitcoin is equivalent to amount used to power an average Texas home for 62 days.

I do not think most people realize how much energy that cryptocurrency miners are using, said Texas A&M University Law School professor William Magnuson. These are massively energy intensive industries.

Magnuson, the author of Blockchain Democracy and a cryptocurrency legal expert, said Bitcoin miners are always looking for cheap electricity.

Which is why when China recently cracked down on all cryptocurrency activity, many Bitcoin miners rushed to Texas.

Less than a mile down the street from Whinstone facility outside Rockdale is another new Bitcoin mining facility, Bitdeer.

Other mining operations have also recently relocated to Texas or are making plans to build facilities often outside rural communities in central and west Texas.

This month the Texas Blockchain Council, an associated with more than 70 cryptocurrency industry members, hosted the largest ever state-wide blockchain summit in Austin.

The associations mission is to make Texas an attractive location for cryptocurrency industry businesses.

However, while many are pushing Texas to be a leader in the industry, Magnuson said he believes Texas is not ready for this rapid growth.

I think that we need a more thoughtful regulatory scheme, he explained. I dont think we are prepared for this.

During Februarys cold snap, the Texas electric grid was on the brink of disaster.

Millions of Texans were left without power at a time when they needed it the most.

Then when it heated up this summer, there were more forced outages.

ERCOT has struggled to keep up with the states electricity needs.

Now adding onto the grid are several new Bitcoin mining facilities some highest energy consumption companies in the world.

But instead of slowing down the rush, this past session, Texas lawmakers passed several bills enticing more cryptocurrency miners to come to the state.

State Senator Angela Paxton, R-McKinney, who authored several of the cryptocurrency bills, said at first she was very concerned about the amount of energy these mining facilities were using but after learning more about how they operate, she said large Bitcoin mining facilities could actually help the Texas grid.

By using power when no one else needs it, then powering down when electricity demand is high, lawmakers said large cryptocurrency mining facilities can provide stability to the grid.

Paxton said, It really has an important role, and we know after February just how important helping to create grid stability is for the state of Texas.

State Senator Angela Paxton, (R) McKinney (CBS 11)

Harris said his Rockdale facility turned off its power 72 times this past year at the request of ERCOT, including during Februarys winter storm.

We, literally, with the click of a mouse, can go from operating to zero power in five seconds, Harris said. We know that the grid needs power and, when it needs power, were willing to give it.

In many cases, Bitcoin miners can make money when turning their power off by selling their electricity back to the grid when demand is high.

However, Harris said that does not happen every time they are asked by ERCOT to power down.

There are times when we are voluntary turning off and were not making income at that time, Harris explained. We are a part of this community. If you behave correctly, youll be rewarded in many more ways than just profitability. Profitability is very important, but it also parallels with being a good corporate citizen.

Whinstone CEO Chad Harris (CBS 11)

While Whinstone promises to power down when needed, there are no guarantees that every Bitcoin miner in the state will do the same.

Sure enough, there is going to be a bad actor, Sen. Paxton acknowledged.

The state senator said one of the bills she authored created a working group to studying ways to best regulate the cryptocurrency industry.

But while the nature of government is to move slow, the nature of technology moves fast and Bitcoin mining in Texas is in a rush.

This business is in its infancy, Harris said. We are just starting.

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Will The Texas Electric Grid Be Able To Handle States Bitcoin Mining Rush? - CBS Dallas / Fort Worth

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Bitcoin was trading 2.33% lower on Saturday morning.

The price was around $54,580 per coin, while rivals Ethereum and Dogecoin were trading around $3,576 (-1.93) and 24.4 cents (-1.02%) per coin, respectively, according to Coindesk.

U.S. Sen. Cynthia Lummis, R-Wyo., has long been a fan of Bitcoin, and a disclosure filed on Thursday shows she grabbed up to $100,000 worth of the cryptocurrency in a transaction over the summer.

CHINA PROPOSES ADDING CRYPTOCURRENCY MINING TO 'NEGATIVE LIST' OF INDUSTRIES

The filing indicates Lummis made a buy of somewhere between $50,001 and $100,000 from Bitcoin exchange River Financial on Aug. 18 when the digital currency was at around $45,000 per coin, while bitcoin is now trading at $54,760.

The New York Post noted Lummis' August Bitcoin buy occurred less than two weeks after she joined two other senators in attempting to include an amendment in the infrastructure bill seen as favorable to the crypto sector, but the attempt at narrowing the definition of who is a cryptocurrency broker was not included.

Bitcoin was trading 2.33% lower on Saturday morning. (Getty Images)

Lummis has made no secret of her interest in crafting pro-crypto legislation.

In other cryptocurrency news, regulators with the Securities and Exchange Commission have OKd Volt Crypto Industry Revolution and Tech ETF, which will trade under the ticker symbol BTCR.

U.S. Sen. Cynthia Lummis, R-Wyo., speaks during the Bitcoin 2021 conference in Miami, June 4, 2021. (Getty Images / Getty Images)

Volt Equity's exchange-traded fund is the first of its kind, offering investors access to companies with significant exposure to Bitcoin, according to the agency.

CLICK HERE TO READ MORE ON FOX BUSINESS

The fund, which cannot invest directly in Bitcoin, will put at least 80% of its net assets in "Bitcoin Industry Revolution Companies," which are defined as those that hold a majority of their net assets in the world's largest cryptocurrency or derive a majority of their revenue or profits directly from bitcoin mining, lending or transacting.

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Bitcoin, Ethereum, Dogecoin all in negative territory early Saturday - Fox Business

Investors in cryptocurrencies exhibit breathtaking leaps of faith that make stock buyers look like they never take risks.

This isnt to say that leaps of faith arent required to trust that companies wont cheat shareholders. Enron and Worldcom, for example, are strong reminders that trust in publicly traded corporations must be verified.

Nor should we forget the level of trust required to believe that the Federal Reserve wont debase the U.S. dollar DXY, -0.00%. The dollars fundamental value has suffered over the past 15 years at the hands of the Feds multiple rounds of quantitative easing and efforts to keep interest rates low. In the process, the Feds balance sheet has ballooned from $800 billion in 2006 to more than $8 trillion.

Cryptocurrencies were supposed to be better than this. Bitcoin BTCUSD, +0.43%, ethereum ETHUSD, +0.64% and other cryptos were born out of resistance to blind faith in corporate and monetary authorities, built instead on a foundation of anonymous and decentralized trust. How ironic that the crypto world has, in the process, developed in ways that require an even greater amount of blind faith.

This doesnt mean you should automatically avoid cryptocurrencies. But dont think youre not hugely dependent on others honesty. You should also remember that, unlike publicly traded stocks and the Fed, cryptos arent regulated though there has been widespread speculation that the SEC would impose such regulations.

An example of this need for faith is the enduring mystery over whether Tether USDTUSD, coins are all their creators claim them to be. Tether coins are a particular type of cryptocurrency known as a stablecoin, which are designed to be redeemable at any time for U.S. $1 per coin. Tether says it backs the coins fully with reserves, which the company defines as currencies, cash equivalents and other assets, that cover every stablecoin it issues.

But outsiders are finding this difficult to verify. I by no means am the first to point this out, and I have no new information one way or the other. My point instead is to marvel at how much faith that crypto enthusiasts have in Tethers claim.

How is this claim in essence any different, or more believable, than the legal mandate codified in the Federal Reserve Act that the Fed is to maintain stable prices? I dont want to take sides in the debate over cryptos, which has become as polarized and passionate as have our current politics. My point instead is to disabuse you of the myth that it doesnt take blind faith to hold cryptocurrencies.

Are you sure you understand how bitcoin and other cryptocurrencies operate, as well as their protections against the vulnerabilities and risks from both known and unknown sources? Most likely, very few of those who have bought cryptos have such an accurate and comprehensive understanding.

Theres no shame in admitting that you dont. If there is something to be ashamed of, its insisting that youre sidestepping blind faith by avoiding Federal Reserve notes (i.e. dollars) and holding crypto. Youre not.

Listen to Joachim Klement, a trustee of the CFA Institute Research Foundation and former head of equity strategy for UBS Wealth Management. In an email, Klement conceded that, despite having degrees in theoretical and particle physics, mathematics, economics and finance, whenever I try to understand cryptocurrencies I am at a loss. Either, I manage to translate the jargon into something in plain English at which point I often end up with trivial conclusions, or I am unable to translate the jargon and technical terms into something that makes sense.

Yet there seems to be no shortage of investors with seemingly unlimited reserves of blind faith. Dogecoin DOGEUSD, -0.42%, originally created as a joke, now has a market cap of $32 billion. The market cap of Shiba Inu , another crypto coin, jumped to $14 billion after Tesla CEO Elon Musk tweeted a picture of his Shiba Inu dog.

Claude Erb, a former commodities portfolio manager at TCW Group, characterizes the crypto worlds reliance on blind faith in religious terms: In an interview, he pointed out that no one has actually seen the bitcoin blockchain, and yet we have faith that it is all-knowing and benevolent. Is that all that different from a belief in a cryptoGod?, he asks. There are many leaps of faith required.

You might dismiss all this as little more than much ado about nothing, involving the gambling activities of investors whose investment motto seems to boil down to You only live once. But in fact just Tether alone has grown so big that its collapse would have huge repercussions for the rest of the financial system not to mention your own net worth. There would be ripple effects that could lead to the collapse of major parts of the global credit and equity markets.

Many of the discussions Ive had with crypto enthusiasts bring to mind the greater fool theory. According to it, it doesnt matter whether Tether is truthful about its reserves, whether anyone has ever seen a blockchain, or whether you truly understand how cryptos operate. The only thing that matters is whether there is someone who will buy from you at a higher price a greater fool.

To illustrate the greater fool theory, Warren Buffett has told the following joke, which he says was told to him by his mentor Benjamin Graham:

An oil prospector, moving to his heavenly reward, was met by St. Peter with bad news. Youre qualified for residence, said St. Peter, but, as you can see, the compound reserved for oil men is packed. Theres no way to squeeze you in. After thinking a moment, the prospector asked if he might say just four words to the present occupants. That seemed harmless to St. Peter, so the prospector cupped his hands and yelled, Oil discovered in hell.

Immediately, the gate to the compound opened and all of the oil men marched out to head for the nether regions. Impressed, St. Peter invited the prospector to move in and make himself comfortable. The prospector paused. No, he said, I think Ill go along with the rest of the boys. There might be some truth to that rumor after all.

Before investing in cryptos, dont you want to be confident that youre not the butt of a similar joke?

Mark Hulbert is a regular contributor to MarketWatch. His Hulbert Ratings tracks investment newsletters that pay a flat fee to be audited. He can be reached at mark@hulbertratings.com

More: Wheres crypto headed after bitcoins recent rally? MarketWatch gathers pros to discuss the outlook. Sign up!

Also read: Crypto complex recalls 1920s stock market with rampant speculation, manipulation and theft, says left-leaning think tank

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Buying bitcoin or any other crypto is a huge leap of faith and you don't want to be the 'greater fool' - MarketWatch

55 days from now will be the hundred-year anniversary of when the American industrialist and business magnate Henry Ford talked about a unique energy currency that could stop wars. The well known founder of the Ford Motor Company suggested that a currency could be backed by energy in kilowatt-hours (kWh) in a similar fashion to the way energy is leveraged to mine bitcoin.

Close to 100 years ago on December 4, 1921, Henry Ford discussed an idea he conceived in the New York Tribune. The title of the published article was called Ford Would Replace Gold With Energy Currency and Stop Wars.

Ford is well known for developing the assembly line technique and creating one of the first mass-produced American-built automobiles. Fords energy currency concept describes a digital currency much like Satoshi Nakamotos Bitcoin and one that is also scarce.

Not only would Fords energy currency be backed by energy measured in kilowatt-hours (kWh) he also discussed with the Tribune that the currency would be issued only to a certain definite amount and for a specific purpose.

It has always been understood that Henry Ford was well ahead of his time, but he also thought about a concept that is very similar to whats described in the Bitcoin white paper. Ford even had a location planned to kick start the idea at Muscle Shoals Dam. The treacherous and wild Muscle Shoals section of the Tennessee River produces a lot of energy as the dam provides electrical power, flood control, and a water supply.

Ford even took shots at the banking cartel in 1921, which are basically the same financial institutions and family members running the worlds finances today. Its simply a case of thinking and calculating in terms different from those laid down to us by the international banking group to which we have grown so accustomed that we think there is no other desirable standard, Ford stressed.

While the cypherpunks like Timothy May and Eric Hughes wrote about concepts that looked closer to todays cryptocurrency, many others had visions similar to Henry Fords energy currency concept. The Nobel laureate and Austrian economist Friedrick Hayek discussed the idea of a free market currency.

I dont believe we shall ever have good money again before we take the thing out of the hands of [the] government, Hayek stressed. That is, we cant take it violently out of the hands of [the] government, all we can do is by some sly roundabout way [to] introduce something that they cant stop.

In addition to Hayek, Milton Friedman discussed the idea of a cryptocurrency in 1999. I think that the Internet is going to be one of the major forces for reducing the role of government, Friedman said during his interview that went viral in 2014. The one thing thats missing, but that will soon be developed, is a reliable e-cash, a method whereby on the Internet you can transfer funds from A to B, without A knowing B or B knowing A, the economist added.

Fords energy currency editorial in the New York Tribune not only takes aim at the bankers but blames gold as well. Its very simple when you analyze it, Ford emphasized. The cause of all wars is gold. We shall demonstrate to the world two things, first, the practicability, second, the desirability of displacing gold as the basis of currency and substituting in its place the worlds imperishable natural wealth. Ford continued:

Almost everybody in the world, except the newspapers and bankers recognizes that civilization has entered on a new era. The newspapers dont see it and the international bankers dont want to see it It would mean changes in world finance and bankers always oppose changes.

It could be said that the trend in America has already entered a realm of digital currency which is done mostly by the banking systems databases. In many respects, Ford got his way because the powers that be essentially replaced gold with unbacked fiat. However, fiat is a far cry from a scarce and energy-backed currency Ford dreamt up long ago.

The banking cartel moving off the gold standard has pushed a desirability of displacing gold from both sides of the spectrum. Decentralized crypto assets like bitcoin (BTC) are indeed displacing gold even if the measurement of displacement is still quite small.

These days people use cryptocurrencies as a hedge against fiat and the central banks massive monetary expansions just like precious metal (PM) collectors and gold bugs. In this line of thinking there is also a desirability of displacing gold forming among the masses as digital currencies offer benefits that PMs like gold cannot provide.

According to assetdash.com bitcoin (BTC) is the sixth top asset by market cap. The web portal companiesmarketcap.com says bitcoin (BTC) is positioned in the eighth spot. The top position held by Gold is an $11.161 trillion market valuation, while BTCs is roughly $1.041 trillion, according to the websites metrics. Golds valuation is 972% larger than BTCs as the crypto asset has a long way to go to catch up if it wants to displace gold.

What do you think about Henry Ford predicting a currency similar to bitcoin close to 100 years ago? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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How Henry Ford Envisaged Bitcoin 100 Years Ago A Unique 'Energy Currency' That Could 'Stop Wars' Featured Bitcoin News - Bitcoin News

Bitcoin (CRYPTO: BTC) bulls have had a great run in the past couple of years, and many argue that the popular cryptocurrency has replaced gold as the best way to protect your portfolio from downside in the stock market.

There are plenty of reasons for investors to be seeking a safe haven for their cash these days given stocks are at all-time highs while interest rates remain historically low. Diversification is the most powerful tool for any investor to help reduce risk in a portfolio. To maximize diversification, investors need to identify market sectors and assets that have minimal correlation to each other.

When you have a portfolio of assets that are highly correlated, a market sell-off will likely drag down your entire portfolio all at once. However, if your assets have a low or even negative correlation, a stock market sell-off or a drop in one single market sector, such as the tech sector or energy sector, might not tank your entire portfolio.

See Also:Is Bitcoin a good investment in 2021?

Traditional asset classes include things like cash, stocks, bonds, real estate and commodities. Common commodities that have traditionally been considered flight-to-safety investments include gold, silver and oil. The easiest way for investors to gain exposure to many of these asset classes is by buying exchange-traded funds, such as the following ETFs:

Cryptocurrency is a relatively new asset class that some investors see as a superior way to diversify a portfolio. The most popular Bitcoin fund today is the Grayscale Bitcoin Trust (OTC:GBTC).

Correlations: Heres a look at the Portfolio Visualizer daily return correlation matrix for the SPY, the GBTC, the GLD, the USO, the TLT and the VXX funds.

The correlations are calculated based on daily returns since January 2018.

The good news is that the numbers suggest that the GBTC bitcoin fund does have a relatively low 0.23 correlation with the SPY ETF. In fact, the GBTC ETF has even less of a correlation to stocks than the USO ETF, which has a 0.39 correlation.

Those arguing for bitcoin being its own asset class would point to the fact that the GBTC has very low correlation to stocks, gold, oil, treasury bonds or even market volatility, according to the table.

Unfortunately, the correlation between bitcoin and the SPY is much higher than the correlation between gold and the SPY. In other words, bitcoin prices tend to drop much more than gold prices drop when the stock market sells off.

The VXX volatility fund has the highest negative correlation to the SPY, but it comes with its own set of problems. Over the last five years, the VXX fund is down 77.2% overall thanks in large part to value lost via contango.

The TLT, on the other hand, has a negative 0.39 correlation to the SPY and it has generated a positive 18.7% total return over the last five years. That return is not great, but its track record suggests the TLT is a much better flight-to-safety investment and hedge against stock market downside than Bitcoin at this point.

Benzingas Take: The fact that Bitcoin prices crashed even harder than stock prices in March 2020 is all the evidence investors need to know cryptocurrencies arent a safe place to have your money during a stock market crash. In fact, the positive correlation between the GBTC fund and the SPY fund has actually increased from 0.12 to 0.23 since March 2020.

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Has Bitcoin Improved As A Flight To Safety Investment? - Benzinga - Benzinga

As bitcoins value has increased, the global hashrate has been steadily climbing higher week after week. On Sunday, the hashrate dedicated to the Bitcoin network is hovering just above the 155 exahash (EH/s) handle and bitcoins price has made a great number of mining rigs more profitable. Older generation mining rigs like Bitmains Antminer S9 series with hashrate speeds around 11 TH/s or higher are also profiting.

Six days ago, Bitcoins overall hashpower was around 130 exahash per second (EH/s) and today its up 19.23% at 155 EH/s. Bitcoin (BTC) markets have been doing well this week up 15.9% during the last seven days. On Sunday, a single BTC is exchanging hands for just above the $55K zone and theres $35.2 billion in global trade volume.

The higher price per BTC has made it so mining rigs are more profitable than they once were a few weeks ago in September. Using todays BTC difficulty and electrical costs of around $0.12 per kilowatt-hour (kWh), the Microbt Whatsminer M30S++ is pulling in over $34 a day per machine. The M30S++ is powerful, of course, as each Microbt machine boasts 112 terahash per second (TH/s).

The Bitmain Antminer S19 Pro (110 TH/s) also makes over $34 per day with the next-generation miners output. The Canaan Avalonminer 1246 boasts around 90 TH/s in hashrate and estimates show it can make $25.88 per day using todays BTC exchange rates. The Strongu Hornbill H8 Pro shows it produces 84 TH/s and profits by $23.67 per day using current exchange rates.

Older units like the Ebang Ebit E11++ (44 TH/s) and the Innosilicon T3 (43 TH/s) pull in anywhere between $11.02 to $11.77 per day in profit. The lowest hashpower producing bitcoin mining machine is the Bitmain Antminer T9 (11.5 TH/s) which can get a miner around $0.39 per day.

Every single Bitmain Antminer S9 series also makes a profit, producing anywhere between $0.84 per day and $2.00 per day, depending on the S9 model. There havent been any new launches in recent times, except for a new mining rig manufacturer from Singapore called Ipollo.

The Ipollo bitcoin miner called the B2 claims to produce 110 TH/s and pulls 3,250 watts from the wall. The mining rigs current profit is $34.31 per day but the machine just came out this month. This means that the new companys devices have not been out for that long and reviews are lackluster and sparse so far.

On Sunday, the mining operation F2pool commands the most hashrate with 26.59 EH/s or 18.69% of the global network. F2pool is followed by Antpool (20.94 EH/s), Poolin (20.94 EH/s), Foundry USA (17.28 EH/s), and Viabtc (14.96 EH/s). Unknown hashrate or stealth miners capture 2.10% of the global hashrate and the 2.99 EH/s puts the mystery hash in the ninth position.

The current mining difficulty is 19.89 trillion and in eight days it is expected to increase by 1.58%. This increase will put BTCs mining difficulty back above the 20 trillion range making it close to 40% harder to mine BTC than three months ago.

What do you think about mining machines gathering higher profits and the older generation mining rigs that can now gain profit? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, asicminervalue.com,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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BTC's Price Rise Gives 5-Year-Old Mining Rigs New Life Bitcoin Hashrate Jumps Close to 20% Since Last Week Mining Bitcoin News - Bitcoin News

BitMEX chief executive officer Alexander Hptner is predicting that five developing nations will follow in El Salvadors footsteps and adopt Bitcoin (BTC) as legal tender by next year.

In a blog post, the head of the crypto exchange says BTC will help citizens of developing countries financially by reducing the transaction fees associated with sending money across the globe.

Remittances made up an astounding 23% of El Salvadors GDP (gross domestic product) in 2020. Across the world, its nearly 10% of GDP in the Philippines, which has over 10 million overseas Filipino workers. According to World Bank data, low and middle-income countries receive about 75% of total global remittances.

This money has got to find a way home somehow. But the current system of remittances ischarging [people] an average of 10% just to send money home the next business day People deserve better. So is it any surprise that Bitcoin with its near-negligible fees and quick 24/7/365 transactions would pique the interest of countries reliant on remittances?

Hptner says another reason developing nations may adopt BTC is growing concerns of runaway inflation, something Bitcoin is not burdened by as it has a maximum supply cap of 21 million.

The IMF (International Monetary Fund) forecasts 2021 inflation for developed countries at 2.4%. Its estimate for developing countries is more than double, at 5.4%. While consumers in advanced economies might be better placed to weather shocks, people in developing countries are more vulnerable, especially when the price of consumer goods and services is impacted

Bitcoin fixes this, with its capped supply of 21 million. And developed countries and/or their people are noticing.

Lastly, Hptner says the decision to adopt BTC as legal tender ultimately rests with political leaders and that El Salvadors leap of faith has made it easier for them to take the plunge.

On a macro level, those who will make the decision to make Bitcoin legal tender will be politicians or rulers. Bitcoin is many things a technology, a store of value, and a means of payment.

Its also a cultural touchstone and, at its core, an expression of the users lack of faith in the global financial system as presently constructed

What El Salvador did is take the first leap of faith, making similar moves by other countries much easier to consider.

Featured Image: Shutterstock/Dai Mar Tamarack

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BitMEX CEO Predicts Five Developing Countries Will Accept Bitcoin As Legal Tender Next Year Heres Why - The Daily Hodl

A top crypto analyst and trader says Bitcoin and the rest of the crypto markets are on the cusp of a massive breakout that can push the valuation of all digital assets to $10 trillion.

Justin Bennett tells his 73,600 followers that the TOTAL chart, which tracks the market capitalization of all crypto assets, is threatening to take a crucial resistance area.

Total crypto market cap is holding steady below resistance. $2.4 trillion is the level to break. $2.44 trillion to be safe.

At time of writing, TOTAL is trading at $2.33 trillion.

Bennett predicts that once TOTAL takes out its final resistance area, the skies are clear for a rise to $10 trillion in a matter of months.

Total crypto market cap is testing its May trend line. Break that and carve fresh all-time highs, and we just might get that $10 trillion market cap in early 2022. Weekly chart.

Looking at Bennetts chart, the trader expects TOTAL to reach a $10 trillion valuation by March 2022.

As for the catalyst that could fuel TOTALs rise to new all-time highs, Bennett says that Bitcoin must lead the charge.

I think its a bit naive to doubt the potential of a $10 trillion crypto market cap in the next three to six months. If BTC breaks $65,000, the momentum shift will be fierce. Plus, the total market cap has already done a 20x since March 2020. Whats another 4.2x?

Note that I said, if BTC breaks $65,000.

Thats crucial! As bullish as Ive sounded lately, everything hinges on Bitcoin trading above $65,000 this year.

Featured Image: Shutterstock/Mykola Holyutyak/Dario Lo Presti

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Bitcoin and Crypto on the Brink of Rising to $10 Trillion Market Cap, Says Top Analyst Heres His Tim... - The Daily Hodl

Coming every Saturday, Hodlers Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more a week on Cointelegraph in one link.

Indian crypto exchange CoinSwitch Kuber closed a $260 million Series C funding round this week at a valuation of $1.91 billion, adding itself to the prestigious unicorn club.

The funding round was led by Coinbase Ventures and Andreessen Horowitz, the latter of which has emerged as a leading crypto venture capital firm. Following the $1.91 billion valuation, CoinSwitch Kuber is said to be Indias most valued crypto firm.

Speaking of funding, Sky Mavis, the developers of the immensely popular NFT game Axie Infinity, announced a $152 million Series B funding round on Tuesday. Unsurprisingly, Andreessen Horowitz backed the funding round along with participation from FTX.

The same set of bullish indicators that sent Ether (ETH) surging 7,000% in 2017 has appeared again in 2021, suggesting that the asset is on track to reach the moon before Dogecoin (DOGE).

The fractal indicator from 2017 consists of at least four technical patterns that were instrumental in pushing the price up, including the relative strength index (RSI), stochastic RSI, bullish hammer, and a Fibonacci retracement level.

At the time of writing, Ether is worth $3,600, indicating that the price could hit $13,000 if history repeats itself.

The Nigerian Federal High Court has approved the rollout of the eNaira central bank digital currency (CBDC).

The CBDC was launched for beta testing on the nations 61st Independence Day celebration on Oct. 1 and has now been given the green light to circulate alongside its fiat counterpart. The CBDC is being touted as a faster, cheaper and more secure option for transactions. It will also be supported by an eNaira wallet.

The official eNaira website says that the digital version of the Nigerian naira will be made available universally, stating that anybody can hold it.

The ongoing legal dispute between Ripple Labs and the United States Securities and Exchange Commission (SEC) has taken another turn as U.S. District Judge Analisa Torres ruled on Monday that individuals holding XRP tokens cannot act in Ripples ongoing lawsuit as defendants.

The ruling came after several ambitious XRP hodlers aimed to file friends of the court briefs which, if granted, would enable them to join the bloody battle as defendants, alongside Ripple, against SEC assertions of XRP being a security.

The judge said the ruling was for their own good, as it would compel the trigger-happy SEC to take action against the XRP hodlers as well. However, it was determined that they could participate as amicus curiae a party that is not involved in the litigation but is allowed by the court to advise or provide information.

Bitcoin (BTC) returned to its $1 trillion asset status this week as the price surged past $55,000.

It appears that the damage caused by the China mining ban in May has been wiped clean, suggesting that there could be a run to new all-time highs in the coming weeks or months. At the time of writing, BTC is worth $54,900 and sits 14.9% below the all-time high.

Honestly, I think well be continuing to see strength on Bitcoin, Cointelegraph contributor Michal van de Poppe said, adding:

USDT pairs will be fine on altcoins, but perhaps well be having 6-8 weeks of some corrections on the $BTC pairs, before a new party starts. December/January is often the best period to buy alts.

At the end of the week, Bitcoin is at $54,176, Ether at $3,612 and XRP at $1.07. The total market cap is at $2.30 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are SHIBA INU (SHIB) at 244.87%, Fantom (FTM) at 74.68% and Axie Infinity (AXS) at 47.02%.

The top three altcoin losers of the week are eCash (XEC) at -10.20%, Huobi Token (HT) at -8.70% and Amp (AMP) at -6.85%.

For more info on crypto prices, make sure to read Cointelegraphs market analysis.

Policymakers should implement global standards for crypto assets and enhance their ability to monitor the crypto ecosystem by addressing data gaps. [] Emerging markets faced with cryptoization risks should strengthen macroeconomic policies and consider the benefits of issuing central bank digital currencies.

International Monetary Fund

For us, digital assets are not about payments per se. Theyre about a new computing paradigm a programmable computer that is accessible everywhere and to anyone and owned by millions of people globally.

Bank of America Securities

We did a survey of our membership, and it was very impressive: 110 countries are at some stage of looking into CBDCs.

Kristalina Georgieva, managing director of the International Monetary Fund

What a crazy concept this is, that we as a country embrace so many bright, young, talented people to come up with a replacement for our reserve currency. [] I wish all this passion and energy that went to crypto was directed towards making the United States stronger.

Ken Griffin, founder of Citadel LLC

The best way to look at it, if youre an investor, either you believe in decentralized finance and centralized finance, and you believe in Bitcoin and Ethereum and the blockchain, or you dont. If you dont, stay in gold as a hedge, and if you do, tip into it.

Kevin OLeary, Shark Tank Judge

Im not going to get into any one token, but I think the securities laws are quite clear if youre raising money [] and the investing public [] have a reasonable anticipation of profits based on the efforts of others, that fits within the securities law.

Gary Gensler, chairman of the U.S. Securities and Exchange Commission

My bill with Congresswoman Ross would set disclosure requirements when ransoms are paid and allow us to learn how much money cybercriminals are siphoning from American entities to finance criminal enterprises and help us go after them.

Elizabeth Warren, U.S. senator

Bitcoins $50,000 resistance point since May appears ripe to become the cryptos support value in 4Q.

Mike McGlone, senior commodity strategist at Bloomberg

This week saw Bitcoin crack the $50,000 mark and continue upward past $55,000. Although upward price action accompanied the start of September, Bitcoin showed more of a downward trend for most of the month. Price action for BTC has posted upward pressure so far for October, but time will tell how the rest of the month plays out.

On a broader scale, in an Oct. 2 tweet, stock-to-flow model creator PlanB expressed the possibility that the current Bitcoin bull run still has several months of upward action ahead. My guess: this 2nd leg of the bull market will have at least 6 more months to go, PlanB said in the tweet, posting one of his BTC stock-to-flow models.

Several other factors are also relevant to determining Bitcoins outlook, including analyses of the assets hash rate estimates and technical indicators.

Hodlers of the Evolved Apes NFT avatar project were left gobsmacked this week after one of the developers reportedly went rogue and swiped 798 ETH, worth around $2.9 million.

The anonymous developer who goes by the pseudonym Evil Ape is said to have dashed off with all the funds generated from the initial mint of the 10,000 tokenized apes, along with the gains from sales on the secondary market.

Apart from allegedly stealing 798 ETH, Evil Ape also took down the projects website and Twitter account. There was also a blockchain-based fighting game that was promised by the projects creators, and while the outlook is grim, the community is driving a recovery initiative dubbed Fight Back Apes.

Hedge fund manager Ken Griffin was the source of some mixed FUD this week as he slammed crypto as a jihadist call against the U.S. dollar.

Griffin, who is the founder of the $38 billion hedge fund Citadel LLC, and said that crypto is a Jihadist call that we dont believe in the dollar, as he took aim at the pesky youth for spending so much time working on digital assets.

I wish all this passion and energy that went to crypto was directed towards making the United States stronger, he added.

The Citadel founder, however, stated that his firm is yet to enter the crypto sector due to the lack of regulatory certainty, suggesting that hes more worried about compliance than a jihadist call against the precious greenback.

SEC Chairman Gary Gensler said on Tuesday that his agency does not have the authority or intention to ban crypto, stating, That would be up to Congress.

However, Gensler highlighted that many crypto tokens fall under the enforcement power of the SEC. He singled out financial stability issues that arise from stablecoins as a key area of focus for the agency.

Its a matter of how we get this field within the investor consumer protection that we have and also working with bank regulators and others how do we ensure that the Treasury Department has it within Anti-Money Laundering, tax compliance? Gensler said.

While Bitcoin is the most recognizable digital asset, its just one of many that are here to evolve financial services globally.

In coexistence with mutual benefits, decentralized finance and central bank digital currencies will finally make money universally available worldwide.

Imagine if the money that you have in your bank account now would suddenly buy you 1/10th of what it had? That happened in a week.

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CoinSwitch Kuber becomes crypto unicorn, Bitcoin returns to a $1T market cap, and a 2017 Ethereum fractal that resulted in 7000% gains resurfaces:...