- Pope Francis calls for the replacement of technologies based on the use of highly polluting fossil fuels.
- Jack Dorsey, the CEO of Twitter believes that Bitcoin incentivizes renewable energy
Energy consumption has become the latest flashpoint for Bitcoin. Following its recent bull-run, environmental activists and stakeholders have called out the digital asset, labeling it an energy hog. However, its proponents still maintain that Bitcoin’s energy consumption is less intensive than it’s being presented.
Pope Francis, the 266th pope of the Catholic church is the latest to condemn the activity of Bitcoin mining linked to the adverse effect on the environment. According to him, technologies based on the use of highly polluting fossil fuels need to be replaced.
There is reason to hope that humanity at the dawn of the 21st century will be remembered for having generously shouldered its grave responsibilities.
The energy consumption debate rages on
According to the Bitcoin electricity consumption index by the Cambridge Center for Alternative Finance (CCAF), about 129 Terawatt-hours of energy (TWh) are expected to be consumed by Bitcoin miners per year as of 17 May 2021. This is 0.6 percent of the global electricity consumption. The data establishes that the Bitcoin economy is on the same level as small, developing countries like Sri Lanka in terms of energy consumption.
Several key players have reacted to the ongoing Bitcoin energy consumption debate. Jack Dorsey, the CEO of Twitter Inc believes that Bitcoin incentivizes renewable energy. A white paper released by Dorsey’s digital payment service firm Square Inc, and global asset management firm Ark Investment states that Bitcoin miners are unique energy buyers.
According to the paper entitled “Bitcoin as key to an abundant, clean energy future”, the way forward is to combine miners with renewable energy.
By combining miners with renewables and storage projects, we believe it could improve the returns for project investors and developers, moving more solar and wind projects into profitable territory.
Crypto experts react to the ongoing debate
Ari Paul, founder of BlockTower Capital has also said that “incentivizing renewable innovation is the only serious solution.” According to him, all available technologies make use of the cheapest electricity.
All technology (and all industrial uses) make use of the cheapest electricity available. That’s most likely to be renewables when the energy consumption doesn’t need to be near large populations. Incentivizing renewable innovation is the only serious solution.
— Ari Paul ⛓️ (@AriDavidPaul) May 22, 2021
Peter McObnoxious, a crypto influencer in a tweet endorsed the proof-of-Stake (PoS) consensus mechanism. It is worth noting that all attention is drawing to Ethereum which is transitioning from the energy-hungry Proof-of-Work (PoW) algorithm used by Bitcoin. PoS is said to reduce electricity consumption by 99.9%.
Greenpeace USA, an environmental campaign group has also demonstrated against Bitcoin by halting BTC donations over its high energy consumption. A tweet by Bloomberg radio and tv host, Lisa Abramowicz similarly reveals that asset manager Bridgewater Associates has warned that Bitcoin consumes the same amount of energy as some countries, which is a hindrance for investors looking at sustainability.
Bitcoin is currently trading at $38,000, with its market dominance reduced to 44%.
Second US Bitcoin ETF captures $10 million in 5 minutes
It took the US Securities and Exchange Commission, the SEC, nearly 10 years to approve the country’s first Bitcoin ETF.
Since 2013, companies in the cryptoactive industry have been polling the SEC for approval of an investment product like the ETF to target big US investors.
However, once the SEC approved ProShares’ first Bitcoin ETF (BITO) it soon surpassed $1 billion. And five days later, his shares are almost all purchased.
The same happened with the second ETF approved by the SEC, the Valkyrie Funds (BTF). The fund was launched on Nasdaq this Friday (22).
The fund’s success also repeated BITO and traded $10 million in just the first 5 minutes. The ETF exclusively backs the value of the Chicago Mercantile Exchange (CME) BTC futures market.
“You have to be happy with the results of the BTF, although it’s difficult for him to keep up with BITO,” said Bloomberg analyst Eric Balchunas.
The analyst was referring to the fact that the ProShares product has an advantage due to its launch being the first in the US. In this way, the fund attracted the full attention of the market.
Balchunas believes the BTF has a lot of work to do. But, according to him, there are still chances for him to conquer the market, although BITO is the darling at the moment.
Since its launch, Bitcoin BITO has performed remarkably. Balchunas commented that if he maintains the entry fee, there will be no more futures to buy at the end of the month.
In addition, he pointed out that this first ETF is moving towards breaking the limit on the number of contracts allowed by the CME.
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Bitcoin Bullish Prediction Is Released By PlanB
There are all kinds of bullish predictions about the price of Bitcoin these days.
At the moment of writing this article, BTC is trading in the red and the king coin is priced just a little above $60k.
One of the bullish predictions has been revealed by analyst PlanB.
Bitcoin to go parabolic
He is expecting Bitcoin (BTC) to go on a major parabolic run over the next few months.
Just to refresh your memory, PlanB is the creator of the Bitcoin stock-to-flow (S2F) model – this attempts to predict the price of the king coin by measuring the amount of new supply that enters the market each year. This is compared to the amount of supply already in existence.
During a new interview, he addressed his S2F floor model as a reliable indicator which allowed him to nail BTC’s monthly closing prices in August and September.
“The model that got the most attention the last couple of months was the floor model because I predicted on June 20th – that was the same time, by the way, that the Guggenheim chief officer predicted Bitcoin to go below $20,000 – at about that same day, I made the prediction: ‘No, no, no it’s going to $47,000.’”
He continued and said the following:
“And Bitcoin was below $34,000 at that time. I said, ‘Well, in August, it will close above $47,000. In September, it goes down a little but it will close above $43,000, and in October it will close above $63,000.’”
He also said that if BTC is to continue following the floor price predictions of his S2F model, then it could surge over 44% from its current price of around $60,000 in November. The king coin could stage another major rally in December.
“If that continues, and frankly I would be very surprised if it doesn’t, that would be a black swan event that we haven’t seen in the last ten years.”
He also said:
“But if that continues, we’ll go to $98,000 in November already and $135,000 Bitcoin in December, so that will be a really nice Christmas this year if that comes true.”
200 Bitcoin ATMs are installed in Walmart stores, according to a report
It is now possible for customers of Walmart stores to withdraw Bitcoins at ATMs installed in their US stores.
The American retail multinational will allow its customers to buy bitcoin using ATMs installed in some of its stores in the United States. The initiative was made possible after a collaboration between retail giant Coinstar and Coinme.
Walmart will actually install Bitcoin ATMs
Last month, Walmart’s name became involved in a story, according to which the company had partnered with Litecoin (LTC) to allow its customers to make payments with the cryptocurrency. Although the rumors caused great excitement throughout the market, as soon as the facts were revealed he corrected them.
Now, however, a more credible Bloomberg report says the company has joined forces with Coinstar – known for its machines that can exchange physical currency for digital money.
The result of this new partnership was the installation of 200 Bitcoin ATMs in Walmart stores. It is now possible for customers to buy and withdraw Bitcoins at ATMs installed in some US stores.
Sam Doctor – director of strategy at cryptocurrency broker BitOoda – said installing bitcoin ATMs in supermarkets is a growing trend in the United States. However, he noted that Walmart is different from its rivals in that its customer niche can reach a more sizable percentage of society:
“Walmart expands access to Bitcoin to more people, as long as it continues to provide legitimacy among the most skeptical”
The Coinstar deal was previously reported by Coindesk, which tested the service. Customers who buy Bitcoin will need to insert paper bills into the machine to receive a voucher.
They must also set up a Coinme account and undergo a background check before the voucher can be redeemed. The machines charge a 4% fee for the Bitcoin option and a 7% cash exchange rate.
“It’s an expensive way to buy Bitcoin, but it lowers the barriers to entry for first-time cryptocurrency buyers,” concluded Sam Doctor.
Number of Bitcoin ATMs Grows Worldwide
This is not just a trend in the US. The number of Bitcoin ATMs is growing worldwide.
According to Coin ATM Radar data, they had only 7,756 in May 2020, and we’ve jumped to 29,852 now in October 2021.
What likely influenced the increase in demand for Bitcoin ATMs (ATMs) between 2020 and 2021 was the growing popularity of digital payments.
A report by Global Trade Magazine suggests that digital payments increased in popularity during the COVID-19 pandemic, with retailers reporting a 69% increase in usage since January, and this likely weighed on the increased demand for bitcoin worldwide.
A month ago, for example, Bitcoin became the official currency of El Salvador and the government launched its own BTC wallet, but, especially because of identity theft, adoption is not going as well as you think.
When there was a distribution of US$ 30 in bitcoin for each citizen in the country, criminals went after other people’s bonuses, similar to what happened in Brazil with the coronavoucher.
Other problems were also reported by two Brazilians who were in the country.
“For example, one of the things that happened is that they announced that the 200 ATMs were going to be [fruto de] a public-private partnership, but in the end, I don’t know if there was any problem in the bidding or any commercial problem in this project, [mas] it ended up being done with public resources”, they told Cointimes.