Author Archives: Andrew Johnston

Bitcoin rallies after Elon Musk says Tesla is ‘most likely’ to resume accepting it

Bitcoin’s value has risen after Elon Musk stated that Tesla, his electric car manufacturer, would “most likely” resume accepting cryptocurrency.

This is the latest move by the tech entrepreneur. After Tesla had previously stated that it would accept Bitcoin to purchase vehicles, but then it announced that it would no longer do so in May.

Bitcoin rose 8.8% to $32,000 in the comments on Wednesday after it suffered more volatility this week, when it fell below $30,000.

Tesla’s decision to Stop accepting Bitcoin Concerns about the way the cryptocurrency is ‘mined’Using large amounts of fossil fuel-derived energy.

Musk was positive when he spoke at a conference about the reasons for the move.

He stated that he wanted to do more research to confirm that renewable energy usage is at least 50% and that there is a trend towards rising that number. If so, Tesla would accept Bitcoin again.

“Most likely, Tesla would accept Bitcoin again.

Tesla’s mission aims to accelerate the development of sustainable energy.

“We cannot be the company that does this and not do the appropriate diligence regarding the energy consumption of Bitcoin.

Bitcoin experienced a significant increase in value in the early part of this year, but it was unable to reach $65,000 after peaking at $65,000. This is due to Tesla’s shifting stance and the growing volatility.threat from regulation in China.

Financial Conduct Authority figureslast month showedAn estimated 2.3 million UK adults are now holding cryptoassets like Bitcoin, despite warnings about the risks.

Financial Report Shows Bit Digital Is Transferring 14,500 Bitcoin Miners From China to the US

The company bit Digital (Nasdaq : BTBT), announced that it was moving 14,500 bitcoin miners from China to the U.S. on July 13. This information is based on an unaudited report that explains the company’s bitcoin production and mining activities during Q2 2021.

Bit Digital reported that the company owned 32,500 miners, which produce approximately 1.92 Exahash per Second (EH/s), of hashpower. Bit Digital highlighted that the company participated in fleet positioning and sold certain older mining rig models. It also offered opportunities to purchase newer machines.

Bit Digital saw a small increase in miner sales and plans to use $5.4 million of funds to purchase ‘newer vintage miners’. Bit Digital bought 3,515 mining equipment through the spot market in Q2 and plans to purchase more with additional capital.

Bit Digital stated in an unaudited report that the company earned 562.9 Bitcoins in the second quarter 2021. The accelerated migration program resulted in a decrease in the number of miners being offline during transit to North America or awaiting installation. Also, miner sales and dispositions contributed to the reduction in the quarter. Bit Digital’s finance report states that bitcoin’s Treasury holdings increased to 588.4.

Bit Digital Dislcoses Moves 14,500 Bitcoin Miners from China to the US

Bit Digital states at the end that Bit Digital has been migrating miners from North America since October 2020. Bit Digital stated that a larger percentage of the company’s fleet was offline in this quarter than the previous quarter due to more miners in transit to North America or awaiting installation there. According to Bit Digital, the statement continued:

The company sent 14,500 miners to America during the quarter. The company plans to finish the migration of its remaining China-based miners into North America in the third quarter 2021.

This news comes following the latest update of the Cambridge Bitcoin Electricity Consumption Indice (CBECI). It shows that 46% of Bitcoin hashrate is located in China. This estimate is lower than the 2020 statistics which had indicated that China captured approximately 65% of network hashrate. However, the CBECI bitcoin mining map only records data until April 2021. Statistics clearly demonstrate that, although Bit Digital stated it began migration plans in October 2020 and many other companies did the same.

Can Bitcoin Lead to Hyperinflation? Economist Delivers Forecast

British economist Bernard Connolly published an article entitled “How a Bitcoin bubble could lead to hyperinflation”. The author states that cryptocurrency could have a negative impact on the global economy if central banks are undermined. These institutions should stop the “crypto bubble” before it is too late, according to the author.

Connolly stated that the global economy has already been able to get itself into a difficult situation. The U.S. was at the end of the last millennium. The Federal Reserve, headed by Alan Greenspan, made a mistake that led to an economic imbalance. Greenspan was:

(…) did not allow long-term real interest rates to rise at the appropriate time to meet the very buoyant entrepreneurial expectations of the internet-driven “new economy”.

In other words, there was a misallocation of capital during these decades that led to a deficit in consumption spending. This means that people spent too much and didn’t have enough savings to support the new economy.

Many assets will enter a “bubble” phase over the next decade. The author asserts that some assets, such as equities can become ‘perfectly rational’. This is because these assets do not have a maturity date and their prices can rise forever. A bubble can be more difficult to justify with assets and bonds that have negative yields.

Connolly however believes that the “crypto bubble” fueled by Bitcoin and other digital assets could cause ‘cataclysmic shifts in wealth distribution’. A cryptocurrency does not have a maturity date. Its price can rise or fall without regard to a time frame. The author also adds:

A bubble can also be rational. But, when you consider the macroeconomic context, it becomes obvious that the bubble must burst.

Bitcoin to Blame for Future Poverty and World Destruction

Connolly’s point is valid, and it is tied to inflationary nature fiat currencies. Bitcoin can either appreciate to infinity or it will not. There is no middle ground. If this is true, then the author believes that BTC’s prices will eventually trend down or be supported in some way by large institutions such as central banks.

Contrarily, if BTC prices tend to infinity, then the cryptocurrency could be an asset which ‘exhausts all the world’s productive capacity’. A conflict among holders could result in them gaining more BTC and more wealth. In the end, they could ‘impoverish all others’.

Connolly urged international governments to immediately intervene. Connolly stated that the “crypto bubble” must be stopped immediately. If central banks do not pull the plug on crypto, it could lead to a global economic collapse. According to the author:

If the bubble continues to grow, they need to grasp the nettle now and inflict losses. Otherwise, there will be a sharp-elbowed scramble for crypto holdings to be converted into goods or services. This will lead towards hyperinflation that will ultimately destroy society.

Connolly’s article has been criticized by the crypto community. Experts and users pointed out that Connolly’s article fails to mention the central banks and governments’ responsibility for the current economic outlook. The following statement was made by Preston Pysh, author and Bitcoin Defender.

Be prepared for the false headline in media: Bitcoin will endanger the global economy. This mess is caused by central banks, it’s not accidental. They are the cause of this mess. Period. They are causing global social unrest, division, wealth polarization, and other problems.

BTC is trading at $33,493 at the time of this writing with sideways movements. To make a push to reclaim higher territory, the first cryptocurrency must have a market cap of at least $34,000 and $35,000 respectively.

World Famous Hotel Chain, Pavilions Hotels & Resorts, To Accept Bitcoin Payments

Scot Toon , managing director of the famous Pavilions Hotels & Resorts, reported that they will accept bitcoin payments.

Coindirect, a British company that offers bitcoin payment services, announced in a joint announcement that guests can pay in Bitcoin while booking stays in Europe and Asia. Customers will be able to buy properties on Phuket, Thailand in Japan with bitcoin.

Bitcoin payments have become more popular in recent years. As we move into the digital age, widespread adoption is likely.

Toon agreed and stated that “Cryptocurrency was something Pavilions saw would be around forever.” It isn’t going away any time soon and people have been adopting it more frequently over the past few years. It’s becoming more popular in the retail industry, making it easy for us to adopt it in the travel sector.

Toon said, “It’s exciting times being able to adopt cryptocurrency for business. “You will see more people in the travel industry adopt cryptocurrency as a method of payment.

Toon also discussed the volatility of Bitcoin and shared his thoughts about how fiat currencies can also experience price fluctuations. This is part of international business.

Depending on their needs, Pavilions may either sell or hold the bitcoin they receive in payment. It is possible that they will keep most of the bitcoin received and only sell what they need to pay costs.

Central banks have been printing money at an alarming rate over the past year. Inflation and currency devaluation will result from expanding the monetary supply.

The world-famous hotel chain chose to be paid and keep some wealth in crypto. It has 21 million BTC, and not one coin more. They don’t have to worry about the central bank printing their earnings away.

Point72 seeks crypto head while Soros starts Bitcoin trading

Some of the most prominent names in the hedge-fund industry are moving deeper into crypto.

Point72 Asset Management, owned by Steve Cohen, is looking to hire a head for cryptocurrency, while George Soros’ family has begun trading Bitcoin, according people familiar with the matter. Spokespeople from the firms declined comment.

Both of these moves were reported by earlier. They come at a time when a growing number prominent hedge funds are starting to invest in digital assets. Millennium Management, a rival to Point72, has been actively involved in crypto-related exchange-traded funds and futures. Brevan Howard Asset Management (macro trader Paul Tudor Jones) have also started investing in crypto. Dan Loeb, a hedge fund manager, said that he was taking a deep dive into crypto in March.

Point72’s decision follows an announcement made to investors by the firm that it was looking at investing in the sector through either its flagship hedge fund, or its private investment unit. It was not immediately clear what the new crypto position would look like.

Point72 stated in a May letter to investors that it was exploring potential opportunities for blockchain technology and its disruptive and transformative capabilities. Bloomberg saw the letter. “We would be remiss if we ignored a crypto currency market now worth US$2 trillion.”

Steven ‘Steve’ (chairman and chief executive officer at SAC Captial Advisors LP) speaks during the Robin Hood Veterans Summit, New York, U.S.A, Monday, May 7, 2012.

Dedicated cryptocurrency firms claim they are having difficulty finding the right candidates for hundreds of jobs. There has been a frenzy of interest among digital currencies and other assets that has put those shops up against some of the biggest financial institutions in the world, including Goldman Sachs Group Inc. and Bank of New York Mellon Corp. DBS Group Holdings Ltd. offering trading and services.

The market value of all cryptocurrencies is now approximately US$1.4 trillion. CoinGecko says that although the space is volatile and suffered a sharp rout in May.

Dawn Fitzpatrick oversees Soros Fund Management and approved traders to start positioning in Bitcoin in the recent weeks, said the person. Bloomberg reported that the firm was planning to invest in cryptocurrency in 2018, but had not yet placed a wager. Fitzpatrick had at the time given Adam Fisher, head of macro-investing, permission to trade virtual coins. Fisher left the firm early in 2019.

Fitzpatrick stated that Bitcoin is interesting in a March interview with Erik Schatzker of Bloomberg Television. He also said that the company had made investments in crypto infrastructure such as asset managers, exchanges, and custodians.

Fitzpatrick stated that there is a real fear about debasing fiat currencies, which is driving demand for crypto. “Bitcoin, it’s not a currency. I believe it’s an asset that can be stored and transferred, with a finite supply.” She declined to confirm whether she had any Bitcoin.