When China suspended bitcoin mining (BTC) this year, more than half of the Bitcoin network’s hashe rate was forced to migrate abroad.
Much of it went to the US, as evidenced by a range of hardware farms springing up in Texas and other crypto-friendly jurisdictions.
But not all of this hashes power went that far.
Kazakhstan, which has become the second most popular country for bitcoin mining, according to data from the Cambridge Center for Alternative Finance (or CCAF, for its acronym in English), is at a crossroads thanks to the reduction of natural resources, a wish of migrating to renewable alternatives and requests for regulated miners to fix the “clandestine” economy of cryptocurrencies.
This Thursday (11), Magzum Mirzagaliyev, energy minister in Kazakhstan, assured that Crypto miners would not be removed from the national grid.
However, so-called shadow miners (who are not registered with the government) may have to decide whether to register or leave the country.
The former Soviet republic has some of the lowest prices in the world (about half the rates charged in the US) for electricity consumption for homes or businesses – ideal for energy-intensive bitcoin mining.
Furthermore, crypto mining remains a cheap task in Kazakhstan, not because it is a purely free market but, ironically, because it is regulated and relies on coal to drive a high-performing economy.
The country is starting to feel the pressure, especially as it looks to move to more sustainable energy sources.
The government estimates that crypto mining makes up up to 8% of the country’s electricity capacity, as 2/3 is consumed by unregulated miners.
The National Association of Blockchain and Data Center Industry, a trade group in Kazakhstan, says there is an easy solution.
On Tuesday (9), he urged the government to go after unregistered miners who have the potential to derail the optimal deal for regulated agents.
“Although many illegal miners have established operations in recent months, there are many bitcoin companies that have been operating in the country for many years and that fully comply with all laws, pay their taxes and provide local jobs,” said Alan Dorjiyev, president of the association. .
He added that the association is “proactively collaborating” with both the Ministry of Energy and the Ministry of Digital Development to “create a fair and transparent market where those who follow the rules are able to operate while those who don’t will be forced to close its doors”.
According to a Reuters article this Wednesday, some unregulated miners are concerned about officially registering not just because of tax requirements, but also because of other government proposals under discussion.
“The tax the government plans to introduce is something that miners are able to pay,” an anonymous miner told Reuters. “But it remains to be seen what demands the government can implement in the future.”
If the demands are high, bitcoin mining could migrate again.
Bitcoin Senator Rallies For Support Against Powell’s Renomination As Federal Reserve Chair, Here’s Why
Popular Bitcoin Senator, Senator Cynthia Lummis is reportedly soliciting for the support of her fellow Republicans in her stance against Jay Powell after the latter got renominated to chair the Federal Reserve.
Bitcoin Senator Wary of Crypto-unfriendly Nominees
As reported by Decrypt who first broke the news, a source in Lummis’ office says her reasons border on her belief that there is an unlawful treatment of crypto-based institutions in her home state, Wyoming.
Meanwhile, the Bitcoin senator is not only against the nomination of Powell. The source still claims that Senator Lummis is also asking her Republican colleagues to help block Leal Brainard’s nomination as well. Brainard is another nominee of President Biden’s for the Fed positions.
Lummis’ skepticism might be as a result of the Special Purpose Depository Institutions or SPDIs as they are otherwise called. They are a new type of crypto-based bank that Wyoming lawmakers granted a special operational license to, just last year.
Two crypto-based companies that received the license in 2020 include Kraken exchange and Avanti — the stablecoin issuer. However, the Federal Reserve’s decision to not approve their applications for central bank-issued accounts has placed a hold on their banking ambitions.
Speaking about the Federal Reserve’s delay in a Wall Street Journal feature article by Lummis on Wednesday, she says it is an intentional and unlawful obstruction. She added that the Fed’s reasons are ambiguous at best. According to the Bitcoin Senator, Lummis claimed that the Wyoming entities have met all requirements for being a bank under the Federal Reserve Act.
Lummis insists that Powell and Brainard are only avoiding their legal obligations in their continued treatment of SPDIs and like many other U.S lawmakers, she wants to know why.
Could Lummis’ Pressure Affect Powell’s Confirmation?
As Lummis continues to apply even more pressure on her colleagues, the possible extent to which this pressure can truly go in affecting the confirmation process of both Powell and Brainard, remains to be seen.
But with the chair of the Senate Banking Committee, Sherrod Brown, reportedly holding a vote on the pair sometime this month, both of them could be confirmed.
Also, there’s a possibility of a potential tight vote now that some progressive Democrats — most notably Elizabeth Warren — are saying they will not be voting for Powell.
PlanB’s Floor Model First Miss: Bitcoin Price Closed Way Below $98K In November
PlanB’s floor model was wrong about BTC’s November closing price. The stock-to-flow model, though, is still on track.
Bitcoin’s closing price for November below $60,000 meant that PlanB’s floor model, which was particularly accurate until now, was finally broken.
At the same time, though, the analyst confirmed that the more popular stock-to-flow model was still valid as BTC is on track towards $100,000.
PlanB’s Floor Model Fails
PlanB is among the most popular analysts in the cryptocurrency space, predominantly known for the Bitcoin stock-to-flow model, which he published in early 2019. However, he also posted another model, which he referred to as the “worst-case scenario,” in July this year.
Also known as the floor model, it’s based on technical aspects, such as the 200-day moving average, and saw BTC closing August at $47,000, September at $43,000, and October at $63,000.
The first two months were spot on. BTC closed in October at $61,000, which was still very near to the model’s predicted price, and PlanB said it was “good enough” for him.
However, November’s closing actual closing price of way below $60,000 was quite different from what the model envisioned – $98,000. As such, the analyst admitted that this was the model’s first miss after nailing the previous few months.
Floor model first miss (after nailing Aug,Sep,Oct). No model is perfect, but this is a big miss and the first in 10y! Outlier/black swan? I will give Floor model 1 more month.
S2F model unaffected and on track to $100K.
Watch out for trolls confusing Floor and S2F model! https://t.co/tj6SSwSzKR— PlanB (@100trillionUSD) December 1, 2021
S2F on Track
As mentioned above, the floor model works separately from the stock-to-flow model, which sees the stock as the size of existing reserves (or stockpiles) and the flow as the annual supply of new bitcoins to the market.
It’s actually even more bullish as the original version sees bitcoin tapping $100,000 by the end of the year. The upgraded stock-to-flow cross-asset model, which introduced different phases of bitcoin’s development, predicted a price tag of $288,000 until 2024.
Although bitcoin still struggles below $60,000 at the time of this writing, PlanB believes that the original S2F hasn’t been broken as the asset is on its way towards $100,000. If BTC is indeed to go into a six-digit price territory, it would have to increase its USD value by more than 66% in the next 30 days.
CashApp Added Bitcoin Taproot Support, Here’s Why It Is Important
CashApp now supports the updated version of Bitcoin
The widely known Cash App mobile payment service developed by Square, which is being used to transfer money with the usage of a mobile app, now fully supports the Bitcoin taproot update.
The mobile payments service is currently available in the U.S. and the U.K. but is still reporting 70 million annual transactions between users and generating $1.8 billion in gross profit.
The taproot upgrade was highly anticipated by the Bitcoin network and the cryptocurrency community in general. Previously, the update went into effect on Nov. 14, 2021, at block 709,632.
Previously, the announcement appeared on the app’s website that has described numerous benefits that users will experience after the implementation of the update. One of the main advantages is increased privacy and reduced transaction fees.
The two-week period has been chosen to confirm the functionality of the updated version of the currency. As for now, the update has been activated for all customers. Taproot-enabled wallets are now available for both receiving and sending.