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Why does Bitcoin mining use so much energy from fossil fuels?
Bitcoin enjoyed a new lease of life during the coronavirus pandemic, the cryptocurrency’s value booming to new highs as the world was brought to a standstill, although its fortunes continue to fluctuate wildly.
The decentralised electronic currency has come a long way since its conception in 2008, when idealistic early adopters, angered by the latest financial crash, saw it as a means of bypassing the crony capitalist institutions that had plunged society into recession through greed and negligence.
Born of the same anti-establishment spirit of “taking back control” that inspired such movements as Anonymous, Occupy and WikiLeaks or the more recent GameStop war on Wall Street short-sellers, Bitcoin’s practical problems and inefficiencies have gradually come to light, from its lack of consumer protection to facilitating crimes like black market trading, money laundering and tax evasion.
Perhaps its most glaring issue is the huge environmental impact of Bitcoin mining, the process by which virtual coins are generated.
Even though Bitcoin is unregulated, it still needs to verify all transactions carried out between traders to keep the playing field honest and does so by leaving the responsibility with “miners”, who effectively act as auditors updating a ledger, an idea originating with the cryptocurrency’s mysterious architect, known only by the pseudonym “Satoshi Nakamoto”.
To do this – otherwise thought of as adding a block to the blockchain – miners race to guess a random number, one of which is released approximately every 10 minutes, a chase that involves huge quantities of computer processing power as their machines strive to solve complex but arbitrary mathematical equations in the hope of getting there first and being rewarded with a highly lucrative coin.
As the blockchain becomes ever longer, the calculations become ever more complicated, requiring the use of supercomputers to carry out the trial-and-error hunt for the solution.
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More than 150 quintillion attempts at guessing the number are now carried every second of the day all around the world, with sprawling aircraft hangars filled with computers working 24-hours a day far from uncommon.
These cryptocurrency farms require vast amounts of electricity to go about their business, given that a single Bitcoin transaction leaves a carbon footprint of 360kg, compared to 500mg from an average Visa transaction, according to Digiconomist founder Alex de Vries.
As such, they are commonly set up in places where power is cheapest, most notably northwestern China’s Xinjiang Province – home to the oppressed Uighur minority – where coal is abundant and still accounts for two-thirds of the country’s energy use.
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Chinese Bitcoin mines are not only reliant on finite fossil fuel resources but their huge electricity usage results in carbon emissions that are said to be accelerating so rapidly, according to one new study, that they will soon exceed the energy consumption of Italy and Saudi Arabia if urgent action is not taken to rein then in.
Unchecked, the annual power consumption of China’s Bitcoin industry is forecast to peak at 297 terawatt-hours (Twh) by 2024, surpassing the carbon emissons output of the Czech Republic and Qatar.
For the planet as a whole, the computing power required to support Bitcoin’s underlying network now requires nearly as much energy as the whole of Argentina.
Analysis by the University of Cambridge published last month suggests Bitcoin mining uses more than 121Twh annually, which would rank it in the top 30 electricity consumers worldwide if it were a country.
Power demand from crypto farms in Abkhazia in north westerrn Georgia has been so high in recent years that rolling blackouts became the norm and equipment had to be confiscated by the state.
Another environmental impact of Bitcoin mining stems from the fact that the technology is still dependent on short-lived hardware to process its calculations, which inevitably burns out and needs to be replaced, prompting a spike in demand for microprocessing chips.
“Semiconductor manufacturers Samsung and Taiwan Semiconductor Manufacturing Company are the only companies capable of mass-producing the specific chips Bitcoin mining device manufacturers like Bitmain need, and these companies are already facing significant challenges in meeting chip demand, in addition to the pressure from Bitcoin miners,” says De Vries of the resulting global chip shortage and price inflation.
This shortage has a knock-on impact on the production of other consumer electronics, from smartphones and games consoles to electric cars.
On the positive side, crypto farms have also been set up in countries like Iceland and Norway whose power supplies largely come from renewable energy sources (and whose climate is ideal for keeping servers cool), Inner Mongolia has set an example by moving to ban the practice for the sake of the natural world and more eco-friendly alternative cryptocurrencies like Cardano are springing up.
The latter claims to be 4m times more energy efficient than Bitcoin thanks to its “Proof-of-Stake” blockchain, which validates transactions based on how many coins are held by a network participant, not the amount of computational processing power they possess.
Whether Cardano or other challengers like Ethereum can topple Bitcoin from its perch remains to be seen but it is clear that the current rate of energy usage is unsustainable if global heating is to be curtailed.
“In its current status, the infrastructure that supports the Bitcoin protocol cannot be sustained, but the beauty of the protocol is that the incentive structure will force miners to adopt the cheapest form of electricity, which in the near future will be renewable energy,” Don Wyper, COO of DigitalMint, recently told The Independent.
El Salvador postpones bitcoin bond issue, expects better conditions
A Bitcoin sign is displayed outside a store where the cryptocurrency is accepted as a payment method in San Salvador, El Salvador, February 1, 2022. REUTERS/Jose Cabezas
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SAN SALVADOR, March 22 (Reuters) - El Salvador postponed an unprecedented issue of a bitcoin-backed bond planned for last week, as the government decided to wait for favorable conditions in the financial market, Finance Minister Alejandro Zelaya said on Tuesday.
The Central American government had scheduled the launch of the $1 billion bond between 15-20 March, but the war between Russia and Ukraine and volatility of the cryptocurrency prompted authorities to change the date. read more
The launch could be postponed until September as bitcoin has swooned since hitting a record high above $67,500 in early November. It lost almost half its value by Jan. 22, and traded at $42,609 on Tuesday, according to Refinitiv Eikon data.
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Now is not the time to issue the bond, according to Zelaya who said that the ideal date to go on the market is the first half of the year, during an interview with a local television channel.
"In May or June the market variants are a little different. At the latest in September. After September, if you go out to the international market, it is difficult (to raise capital)," he added
El Salvador became the first country in the world to adopt bitcoin as legal tender last year, generating criticism from the International Monetary Fund (IMF), which worries the measure could hurt the country's finances. read more
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Reporting by Nelson Renteria; Writing by Valentine Hilaire; Editing by Drazen Jorgic and David Gregorio
Our Standards: The Thomson Reuters Trust Principles.
Bitcoin news – live: Price rally pushes BTC past four-year milestone
Bitcoin’s four-year moving average passed $20,000 for the first time in its history on 21 March, 2022 (Getty Images)
Bitcoin (BTC) has enjoyed a steady price rally over the last week, leading a crypto market recovery that has seen Ethereum (ETH), Cardano (ADA) and Solana (SOL) all rise by more than 10 per cent.
After pushing above $40,000 last week, bitcoin consolidated its gains and now trades towards the upper bounds of the $34,000-$44,000 window that it has been within since the start of the year.
The positive movement also saw the cryptocurrency pass a psychological milestone, as the four-year moving average climbed above BTC’s all-time high from 2017.
Bitcoin has only fallen below its four-year moving average a few times in its history, and even then only for a brief period, meaning its record price from four years ago is now considered its absolute bottom by some crypto analysts.
You can follow all the latest crypto market news, analysis and expert price predictions in our live blog below.
Key points Ethereum price holds above $3k14:50 , Anthony Cuthbertson
After returning above $3,000 for the first time since the start of the month, Ethereum (ETH) continues to hover just above the key level.
It marks a major recovery for the world’s second most valuable cryptocurrency, which was trading at around $2,000 just one week ago.
(CoinMarketCap)
We’ve heard from Will Hamilton, head of trading and research at Trovio Capital Management, who offered his thoughts on the latest price rally and recent developments for ETH.
“Enthusiasm has started to mount again as Ethereum prepares for its long awaited merge with Beacon chain, completing the protocol’s transition to an energy efficient POS ‘Proof of Stake’ consensus mechanism,” he said.“The Ethereum token emission schedule will undergo significant adjustments as daily output decreases up to 9 per cent. The reduction in emissions will be combined with a continuation of the Ethereum burn mechanism introduced with EIP-1559, the mechanism destroys Ethereum correlated with the base fee of each transaction on the network.”
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Honduras may be next country to follow El Salvador10:16 , Anthony Cuthbertson
The dominoes may be beginning to topple in Central America, with El Salvador’s neighbour Honduras reportedly lining up a move to make bitcoin legal tender.
President Xiomara Castro was quoted as saying that El Salvador shouldn’t be the only country “escaping dollar hegemony.
Crypto commentator Max Keiser, who recently met with El Salvador President Nayib Bukele, may have some inside insight on this, tweeting: “It’s happening...”
02:39 , Vishwam Sankaran
Bitcoin, altcoins surge
After dropping below the $41,000 mark early on Tuesday, bitcoin has surged by about 2 per cent in the last 2 hours and is inching closer to the $42,000 mark.
The world’s leading cryptocurrency has grown by about 1.5 per cent in the last day, and by over 7 per cent in the last week.
Ethereum has grown by about 3 per cent in the last 24 hours and by over 15 per cent in the last week.
Other top cryptocurrencies, including cardano and avalanche have surged by over 5 per cent in the last day while solana and polkadot have grown by about 3 per cent during this period.
Memecoins dogecoin and its spinoff shiba inu have surged by 2 to 4 per cent in the last day and by over 7 per cent in the last week.
The overall crypto market has grown by over 2 per cent in the last 24 hours and is currently valued at $1.89 trillion.
Bitcoin supply at three-year lowMonday 21 March 2022 17:21 , Anthony Cuthbertson
The overall supply of bitcoin on crypto exchanges has fallen to its lowest level in more than three years, leading some hopeful investors to believe this may be just the start of the rally.
Data from blockchain analytics firm Santiment noted: “Bitcoin’s ratio of supply sitting on exchanges continues dropping hard, down to its lowest level since December 2018. There is 13.5 per cent less BTC on these exchange wallets compared to just two months ago, amounting to 1.6 per cent less of the overall supply.”
Malaysia mulls adopting crypto as legal tenderMonday 21 March 2022 14:35 , Anthony Cuthbertson
Malaysia’s communications ministry has called on the government to legalise cryptocurrency and adopt them as legal tender.
The Ministry of Communications and Multimedia urged Malaysian regulators to push forward with crypto adoption in order to make the country an Asian hub for the sector and encourage adoption among young people.
“We hope the government can try to legalize this matter so that we can expand the participation of young people in cryptocurrencies and help them in terms of energy consumption,” deputy communications minister Datuk Zahidi Abidin said.
(EPA)
Bitcoin price passes milestoneMonday 21 March 2022 11:06 , Anthony Cuthbertson
Analysts have often noted how bitcoin appears to follow a four-year cycle, with peaks and troughs fitting into this pattern.
Some have attributed it to the way the cryptocurrency was created, whereby roughly every four years the mining rewards are halved. Whatever the reason, the phenomenon means that anyone who has ever bought bitcoin and held it for at least four years has never lost money.
It also typically means that bitcoin rarely ever trades below its four-year moving average, which has just passed $20,000 – the all-time high seen at the peak of the last cycle in 2017. As one commenter pointed out, “the 2017 top is now the absolute bottom!”
(BuyBitcoinWorldwide/ PlanB)
Bitcoin price predictions remain positive long-termThursday 17 March 2022 17:56 , Anthony Cuthbertson
The latest period of calm across the crypto market has given some investors hope that bitcoin and other leading cryptocurrencies are in a period of consolidation ahead of another rally.
One of these is Greg Beard, a noted Wall Street investor who made a name for himself trading in the natural resources sector, who told Fortune this week that he believed bitcoin could hit $200,000 by the start of 2027.
“It’s hard to know where bitcoin’s price will be at, say, the end of the year,” he said. “But if you’re a fundamental-style investor that believes in bitcoin as a store of value, it should be worth multiples of today’s price in five years, I’d say at least five times.”
(It’s worth noting that analysis from Glassnode earlier this week warned that a “capitulation event” may also be on its way if short-term holders decide to cut their losses.)
Bitcoin price holding firm above $40kThursday 17 March 2022 16:11 , Anthony Cuthbertson
Bitcoin has managed to hold and consolidate the price gains it made yesterday that pushed it above $40,000, but still remains in limbo.
Pseudonymous analyst PlanB - who has racked up more than 1.5 million Twitter followers over the last year despite his Stock-to-Flow projections occasionally being overly optimistic - predicts that the current market stasis could be about to be severely disrupted with a major upwards movement.
Ukraine president signs crypto bill into lawThursday 17 March 2022 10:33 , Anthony Cuthbertson
Ukrainian President Volodymyr Zelensky’s decision to legalise bitcoin and other cryptocurrencies comes just six months after he vetoed the bill.
Circumstances have changed a lot since then for the Eastern European country, with Russia’s invasion prompting a flood of crypto donations to assist in their defence and humanitarian efforts. Zelensky’s signing of the “Virtual Assets” bill on Wednesday comes after cryptocurrency donations surpassed $100 million.
You can read the full story here.
Ukraine legalises bitcoin as crypto donations pass $100m
Thursday 17 March 2022 02:27 , Vishwam Sankaran
Bitcoin, altcoins surge in a day of price swings
Bitcoin has risen above the $41,000 mark – growing by about 4 per cent in the last 24 hours – showing signs of stabilising around the mark after a day of price swings between $41,000 and $39,000.
Ethereum has also grown by over 4 per cent in the last day and is currently priced at about $2,800.
Other leading cryptocurrencies, including solana, polkadot, and avalanche have grown between 3 to 5 per cent in the last day.
Memecoins dogecoin and shiba inu have grown by about 1 to 2 per cent during this period.
Ukraine’s President Volodymyr Zelenskyy also signed into law a new bill that legalised cryptocurrencies in the country amid the Russian invasion.
The overall crypto market has grown by over 1 per cent in the last day, and is showing signs of recovery after a day of fluctuating prices.
Thursday 17 March 2022 02:27 , Vishwam Sankaran
Bitcoin, altcoins surge in a day of price swings
Bitcoin has risen above the $41,000 mark – growing by about 4 per cent in the last 24 hours – showing signs of stabilising around the mark after a day of price swings between $41,000 and $39,000.
Ethereum has also grown by over 4 per cent in the last day and is currently priced at about $2,800.
Other leading cryptocurrencies, including solana, polkadot, and avalanche have grown between 3 to 5 per cent in the last day.
Memecoins dogecoin and shiba inu have grown by about 1 to 2 per cent during this period.
Ukraine’s President Volodymyr Zelenskyy also signed into law a new bill that legalised cryptocurrencies in the country amid the Russian invasion.
The overall crypto market has grown by over 1 per cent in the last day, and is showing signs of recovery after a day of fluctuating prices.
Bitcoin price capitulation imminent?Wednesday 16 March 2022 17:22 , Anthony Cuthbertson
The latest data from blockchain analytics firm Glassnode show that $1.2 billion has left Coinbase over the last week, potentially signalling a significant increase in institutional accumulation and adoption.
But despite the dwindling supply, Glassnode notes that there is still the potential for a “capitulation event”, as have been seen in previous market cycles.
“We are now two years on from the major capitulation event in March 2020 that saw bitcoin prices plummet over 52 per cent, fall from $8,000 to $3,800 in two trading days, and marked the end of the 2019-20 bear cycle,” Glassnode’s latest research note states. “Capitulation events like this often signify a complete and total flush out of all remaining sellers, turning the tides in the favour of the bulls.”
You can read the full story here:
Bitcoin worth $1.2 billion just left Coinbase as price surges
Bitcoin price ‘middle finger’ as it returns above $40kWednesday 16 March 2022 10:41 , Anthony Cuthbertson
A peculiar price spike overnight for bitcoin has been described as a “middle finger” by market commentators, after surging $3,000 in the space of minutes before a flash crash saw all its gains wiped out as quickly as they were made.
A more modest price rally is now underway, taking the price of BTC back above $40k on more solid footing. There was a similar, though not quite so extreme, price spike last week, as bitcoin continues to trade in the range it has been within for three months now.
(CoinMarketCap)
PayPal CEO says crypto will ‘redefine financial world'Tuesday 15 March 2022 11:58 , Anthony Cuthbertson
The head of one of the world’s largest payments processors has said that cryptocurrency will “redefine a lot of the financial world going forward”.
In a new interview with CTech, PayPal CEO Dan Schulman said: ““I think the initial things that everyone thinks about crypto, buying and selling it, and what the price of bitcoin is going to be tomorrow, that’s the least interesting part about digital currencies to me. That is thinking about digital currencies as an asset class. To me, the real exciting thing about digital currencies is what kind of utility can they provide in payments.”
The comments come just months after PayPal launched crypto buying and selling in the UK.
Bitcoin price ‘stuck'Tuesday 15 March 2022 10:31 , Anthony Cuthbertson
Bitcoin’s muted price action can be attributed to continued economic uncertainty amid geopolitical crises, according to DailyFX strategist Nicholas Cawley.
He’s been in touch to offer his thoughts on why the crypto market is currently in limbo.
Bitcoin remains stuck under a prior level of resistance at $39.6k after a fairly lackluster trade over the weekend. BTC is still trying to push higher and positive sentiment is starting to return with a recent series of higher lows underpinning the belief that a fresh attempt at resistance may soon prove successful.
The Federal Reserve is expected to increase interest rates by 25 basis points on Wednesday and while this is seen as a negative for BTC, the markets have known about this hike for a few weeks now and have priced it in accordingly. If bitcoin can break above $39.6k with conviction then $42k becomes the next level of interest before a cluster of recent highs below $46k come into play. A break above here would turn the outlook for bitcoin positive.
Nicholas Cawley, DailyFX
Elon Musk HODLs and Europe votes against bitcoin banTuesday 15 March 2022 09:19 , Anthony Cuthbertson
The price of bitcoin remains relatively static on Tuesday morning, despite some positive news for the cryptocurrency yesterday.
Fears of a ban on proof-of-work cryptocurrencies like bitcoin and Ethereum proved unfounded as the European Parliament voted against a draft proposal, while Elon Musk offered some investment advice from his position as the richest person in the world: Don’t sell your bitcoin, ETH or dogecoin.
You can read all about Europe’s refusal to ban bitcoin mining here, and more about Elon Musk’s HODLing here.
Elon Musk previously shared this image of a mock gold Tesla Cybertruck adorned with the dogecoin logo (Twitter)
Monday 14 March 2022 02:33 , Vishwam Sankaran
Bitcoin, altcoin prices drop over weekend
As Russia’s invasion of Ukraine intensified over the weekend, bitcoin dropped closer to the $38,000 mark, dropping by nearly 3 per cent in the last 24 hours.
Ethereum has also dropped in value at a similar rate and is currently priced close to $2,500.
Other altcoins including solana, polkadot, and avalanche have also dropped in value by 3 to 5 per cent over the last day.
Memecoins dogecoin and its spinoff shiba inu have also slipped in value by over 3 per cent during this period.
The overall crypto market is down by about 3 per cent in the last day, and is valued at $1.70 trillion.
The chart is mostly red with no signs of recovery yet.
Friday 11 March 2022 02:11 , Vishwam Sankaran
Bitcoin, altcoins plunge
After surging above $41,000 on Thursday, Bitcoin has plunged by over 5 per cent in the last 24 hours and is now priced below $39,000.
Other leading cryptocurrencies, including ethereum, cardano, polkadot, and avalanche have also dropped in value by nearly 4 per cent in the last day.
Memecoins dogecoin and shiba inu have also lost value by over 2 to 4 per cent in the last 24 hours.
The overall crypto market plunged by nearly 5 per cent in the last day and is valued at $1.74 trillion.
Most of the top cryptocurrencies are in the red with no signs of recovery yet.
Thursday 10 March 2022 02:17 , Vishwam Sankaran
Bitcoin, altcoin prices surge
Bitcoin has surged above $41,000, growing by more than 4 per cent in the last day with US President Joe Biden signing an executive order on cryptocurrency on Wednesday.
The new order acknowledges the popularity of cryptocurrencies and their potential to disrupt the traditional financial system.
Biden signs landmark executive order to ‘develop and use’ cryptocurrency
“We must support technological advances that promote responsible development and use of digital assets,” it states.
Meanwhile, India’s finance minister Nirmala Sitharaman also said she’s expecting the country’s central bank digital currency (CBDC) to be rolled out this year.
Cryptocurrency prices surged on Wednesday with the overall crypto market rising by nearly 3 per cent in the last 24 hours, growing to a value of about $1.81 trillion.
Ethereum, cardano, and solana have all grown by over 2 per cent in the last day, while terra surged by over 7 per cent during the period.
The chart looks mostly green with signs of recovery after nearly five days of sagging prices.
Wednesday 9 March 2022 02:29 , Vishwam Sankaran
Bitcoin, altcoins stabilise ahead of Biden’s crypto executive order
Bitcoin rose above the $39,000 mark – growing by over 2 per cent in the last day – with US President Joe Biden expected to sign an executive order that would outline the government’s strategy for cryptocurrencies.
The White House is also expected to direct government agencies to study the legal and economic consequences of creating a US central bank digital currency following the signing of the order.
Amid these moves expected from the US government this week, ethereum has grown by over 3 per cent in the last 24 hours, but is still down by over 10 per cent compared to its value a week earlier.
The prices of altcoins cardano and solana, as well as memecoins dogecoin and shiba inu have risen by less than 1 per cent in the last day.
The overall crypto market has slightly stabilised, growing by over 2 per cent in the last day, and valued at about $1.76 trillion.
Tuesday 8 March 2022 03:13 , Vishwam Sankaran
Bitcoin, altcoins slightly recover
After trading close to the $37,000 mark early Tuesday, Bitcoin is inching closer to the $39,000 mark, growing by about 4 per cent in the last few hours.
The leading cryptocurrency has grown in price by over 2 per cent in the last day but is still down by over 10 per cent compared to its value a week earlier.
Ethereum has also marginally grown in value by about 1 per cent in the last 24 hours, while other top cryptocurrencies including solana and avalanche have risen in value by 2 to 4 per cent during this period.
Cardano, as well as memecoins dogecoin and its spinoff shiba inu have grown by less than a per cent in the last day.
The overall crypto market has grown by about 2 per cent and is valued at $1.73 trillion.
Swiss city adopts bitcoinMonday 7 March 2022 18:18 , Anthony Cuthbertson
The Swiss city of Lugano plans to make bitcoin, Tether and its own cryptocurrency legal tender, allowing people to buy goods and services.
Paolo Ardoino, CTO of Tether, said: “We envision a future where businesses of all sizes and scale are able to leverage blockchain platforms to improve the quality of life of local citizens providing more sustainable, transparent, and reliable financial and day-to-day services.”
You can read the full story here.
Swiss city to adopt bitcoin as legal tender
Bitcoin price swings explainedMonday 7 March 2022 11:10 , Anthony Cuthbertson
Simon Peters, an analyst at the online trading platform eToro, has offered his thoughts on what’s behind the “wild swing” from $35,000 to $44,000 and now back to $38,000.
“Price changes, like those in the stock markets, were driven by the geopolitical machinations in Russia, as uncertainty continued to rule and investors de-risked,” he says.
“That being said, the swings we’re seeing are more broadly being caused by uncertainty among investors around the world. Despite regional changes in demand, cryptoassets are ultimately global and reflect that in their price changes.”
Apple co-founder calls bitcoin ‘pure gold'Monday 7 March 2022 07:33 , Anthony Cuthbertson
Apple co-founder Steve ‘Woz’ Wozniak has described bitcoin as “pure-gold mathematics”.
Speaking with Business Insider, he had some less favourable words to say about other “rip off” cryptocurrencies.
There’s so many cryptocurrencies that come out now; everybody has a way to create a new one, and you have a celebrity star with it. It seems like they’re just collecting a bunch of money from people who want to invest at the very earliest stage, when it’s worth pennies.
Steve Wozniak
Monday 7 March 2022 02:38 , Vishwam Sankaran
Bitcoin, altcoin prices fall further
After trading above $45,000 on Wednesday, bitcoin has plunged further to about $38,000, dropping in value by about 3.5 per cent in the last 24 hours.
Ethereum has also sunk by about 5 per cent in the last day, and by over 4 per cent in the last week.
Other leading cryptocurrencies including solana, cardano, and avalanche have plunged by about 6 to 7 per cent in the last 24 hours.
Memecoins dogecoin and its spinoff shiba inu have also dropped in value by over 4 per cent in the last 24 hours.
The overall crypto market is down by 3.5 per cent in the last day and is valued at $1.72 trillion.
The chart was all red with no signs of recovery on Sunday as Russia’s invasion of Ukraine intensified.
Friday 4 March 2022 02:37 , Vishwam Sankaran
Bitcoin and altcoin prices plunge
Bitcoin is priced currently at over $41,000, and has dropped in value by over 5 per cent in the last 24 hours as Russia escalates its attack on Ukraine.
Ethereum is down by over 7 per cent in the last day and is valued at close to $2,700.
Other top cryptocurrencies, including solana, cardano, and polkadot have plunged by 5 to 7 per cent in the last 24 hours.
Memecoins dogecoin and its spinoff shiba inu are also down by over 5 per cent during this period.
The overall crypto market is also down by about 5 per cent in the last day and is valued at $1.83 trillion.
The attack on Ukraine began to show crypto’s potential as a way to conduct transactions outside traditional financial service networks.
While crypto investors initially saw this optimistically and bitcoin’s price soared earlier this week, the momentum seems to have faded.
Is bitcoin finally fulfilling its ‘digital gold’ potentialThursday 3 March 2022 15:43 , Anthony Cuthbertson
Bitcoin’s dramatic price rise this week, which coincided with the Russian ruble’s collapse, appears to have proved its utility as a safe-haven asset in times of geopolitical or economic crisis.
We’ve looked at the data and heard from leading market analysts to see whether bitcoin is finally fulfilling its potential as a form of “digital gold”, or whether it is being utilised as a tool to evade severe sanctions – or both.
“We may be witnessing the world’s first major conflict in the age of cryptocurrency,” one expert told us, “and this is proving to be a great test case to see how bitcoin performs.”
You can read the full story here:
Is bitcoin finally fulfilling its ‘digital gold’ prophecy?
Ukraine cancels crypto airdropThursday 3 March 2022 15:19 , Anthony Cuthbertson
Ukraine’s mysterious cryptocurrency airdrop, which was scheduled to take place at 6pm local time today, has been cancelled and replaced with an NFT sale.
“After careful consideration we decided to cancel airdrop,” Mr Fedorov tweeted. “Every day there are more and more people willing to help Ukraine to fight back the aggression,” tweeted Ukraine Vice Prime Minister Mykhailo Fedorov. “Instead, we will announce NFTs to support Ukrainian Armed Forces soon. We DO NOT HAVE any plans to issue any fungible tokens.”
You can read more about it here.
Bitcoin volume hits 2022 highThursday 3 March 2022 10:25 , Anthony Cuthbertson
Bitcoin saw its highest trading volume of 2022 this week, according to new data from Arcane Research.
The volume pushed above $10 billion, marking the highest point since 4 December, 2021, with the cryptocurrency data firm stating: “The market seems to be waking up after a dozy February.”
Crypto market commentator Lark Davis noted the trend, suggesting it occurred “in response to the Russia-Ukraine conflict”.
Thursday 3 March 2022 02:39 , Vishwam Sankaran
Bitcoin and altcoins drop slightly
After soaring above the $45,000 mark on Wednesday, bitcoin’s value has dropped slightly and is close to $44,000.
The leading cryptocurrency has grown by over 18 per cent in the last week, and has remained nearly unchanged compared to its value a day earlier.
Other top cryptocurrencies are also showing similar trends.
Ethereum has grown by over 14 per cent in the last 7 days and has remained unchanged compared to its value 24 hours earlier.
Cardano has sunk by over 2 per cent in the last day while solana’s value is nearly the same as it was a day ago.
Dogecoin and its spinoff shiba inu have slipped by over 1 per cent in the last day.
The overall crypto market has not changed in value over the last 24 hours, and is priced at $1.92 trillion.
Ukraine requests dogecoin donationsWednesday 2 March 2022 17:46 , Anthony Cuthbertson
Ukraine has opened up its cryptocurrency crowd-funding campaign to dogecoin donations.
Vice Prime Minister tweeted: “Dogecoin exceeded Russian ruble in value.”
The official dogecoin wallet has already received more than $35,000 worth of donations from more than 300 people. Among them was dogecoin co-founder Billy Markus, who tweeted: “The vice prime minister of Ukraine tweeting a $doge address and saying ‘We start to accept donations in meme coin. Now even meme can support our army and save lives from Russian invaders’ was not on my 2022 bingo card.”
Binance rejects Russian user banWednesday 2 March 2022 14:00 , Anthony Cuthbertson
The boss of Binance has confirmed that the crypto exchange will not be imposing restrictions on ordinary Russians, with many in the country seeing bitcoin and other cryptocurrencies as a lifeline against looming hyperinflation for the Ruble.
It follows a plea from Ukraine’s Vice Prime Minister Mykhailo Fedorov for all major exchanges to block addresses of Russian users, claiming: “It’s crucial to freeze not only the addresses linked to Russian and Belarusian politicians, but also to sabotage ordinary users.”
Speaking to the BBC today, Binance CEO Changpeng Zhao (CZ) said: ““We’re not against any people. We differentiate between the Russian politicians who start wars and the normal people. Many normal Russians do not agree with war.”
Ukraine confirms crypto ‘airdrop'Wednesday 2 March 2022 13:13 , Anthony Cuthbertson
Ukraine’s official Twitter account has confirmed a cryptocurrency airdrop will take place tomorrow, though it is not quite clear exactly what this will involve.
The country has already raised more than $33 million worth of bitcoin and other cryptocurrencies since launching a fundraiser over the weekend. The funds will “contribute to the Ukrainian victory as well as support civil people”, says Ukraine’s vice prime minister.
We’ve reached out to Ukraine’s Ministry of Digital Transformation for more details about the airdrop event and will bring updates when we have them. You can also read more about it here:
Ukraine announces mysterious cryptocurrency ‘airdrop’
Bitcoin selling at $20,000 above market rate in RussiaWednesday 2 March 2022 10:10 , Anthony Cuthbertson
Russians eager to transfer their rapidly devaluing Rubles into bitcoin are paying way above market rates, according to market watchers.
DefiPrime reported that BTC was selling on Russian exchanges for around $20,000 more than the current rate, suggesting some people in Russia have lost faith in the fiat currency and are expecting further drops in value. The Ruble is already down more than 20 per cent since Russia invaded Ukraine last week, while bitcoin is up by roughly the same amount.
Wednesday 2 March 2022 02:35 , Vishwam Sankaran
Bitcoin rises, cardano and avalanche fall
Bitcoin has grown by about 2 per cent in the last 24 hours and is currently priced close to $44,000.
The world’s leading cryptocurrency has grown by over 15 per cent in the last week.
Ethereum has also grown by over 10 per cent in the last week, and has risen marginally in the last 24 hours. It is valued close to the $2,900 mark.
Among other altcoins, terra has grown by over 4 per cent while solana has risen by about 2 per cent in the last day.
Meanwhile, memecoins dogecoin and its spinoff shiba inu have grown by 1 to 3 per cent.
The overall crypto market has risen by over 1 per cent in the last day and is valued at $1.93 trillion.
Bitcoin ‘decouples from stock markets'Tuesday 1 March 2022 19:06 , Anthony Cuthbertson
Bitcoin’s latest price rally has bucked its trend of following traditional financial markets, with crypto market analysts saying it has finally “decoupled” from stock markets. It has also managed to outperform gold, which is typically the go-to safe-haven asset during times of geopolitical and economic uncertainty.
Here’s what Marcus Sotiriou, analyst at the UK based digital asset broker GlobalBlock, has to say:
Bitcoin rallied by an incredible 1 per cent yesterday, on a day that the S&P 500 was down by 0.2 per cent. We have seen crypto be correlated closely to the US stock market for months, but bitcoin is showing signs of decoupling from this correlation in the short term.
Bitcoin is being heavily bid due in part to the narrative of being a permissionless and censorship-resistant way of transferring value, as it has been used during the crisis in Ukraine as well as political unrest in Canada.
It is also fascinating that, after a week into geopolitical uncertainty, bitcoin is outperforming gold, which is known as a safe-haven asset.
Marcus Sotiriou, GlobalBlock
Bitcoin price surges past $44,000Tuesday 1 March 2022 18:40 , Anthony Cuthbertson
Bitcoin’s price surge, which saw it briefly rise above $44,500 earlier this afternoon, is finally showing signs of slowing down.
It is back down to around $43,500 but is still up nearly $10,000 over the last five days and remains close to returning to January levels.
Ethereum (ETH) also saw strong gains on Tuesday, and appears close to breaking back above $3,00. Meanwhile Cardano (ADA) is steadily climbing back towards the $1 mark.
How bitcoin stacks up against fiat currenciesTuesday 1 March 2022 10:46 , Anthony Cuthbertson
Here is where bitcoin ranks compared to fiat currencies around the world after its latest price surge, according to data gathered by CoinMarketCap.
This list doesn’t typically change much, however Russia’s invasion of Ukraine has seen the Ruble slide significantly over the last week, losing more than 20 per cent of its value.
Bitcoin’s true value on ‘full display'Tuesday 1 March 2022 10:09 , Anthony Cuthbertson
El Salvador President Nayib Bukele is back tweeting about bitcoin, saying that “the intrinsic value of bitcoin is now in full display on the whole world”.
The dramatic devaluation of the Russian Ruble has seen bitcoin overtake the fiat currency, while also demonstrating its worth as a store of value.
Bitcoin price surge continuesTuesday 1 March 2022 09:51 , Anthony Cuthbertson
Bitcoin has continued to see price gains overnight, pushing it above $43,000 for the first time since mid February.
The 13 per cent increase over the last 24 hours has been mirrored by other leading cryptocurrencies, including Ethereum (ETH), Binance Coin (BNB), and Terra (LUNA), which all rose by between 10 and 20 per cent.
The combined gains have pushed the overall crypto market back towards $2 trillion, having seen nearly $400 billion added to it over the last seven days.
Here’s a snapshot of the market this morning, courtesy of CoinMarketCap. There’s a lot of green.
BREAKING: Bitcoin overtakes Russian Ruble after price surgeMonday 28 February 2022 16:44 , Anthony Cuthbertson
Bitcoin now has a market cap greater than the Russian Ruble after a sudden price surge coincided with a massive crash for Russia’s currency.
We’ll have more analysis and comment on that shortly but for now you can read more about it here.
Bitcoin overtakes Russian Ruble
Bitcoin a ‘safe haven during turbulent times'Monday 28 February 2022 15:46 , Anthony Cuthbertson
One of the reasons for the Russian crypto exchange going offline could be increased traffic as Russians rush to exchange their Rubles for cryptocurrency as the fiat currency crashes under severe economic sanctions.
For some commentators, this is once again proof that it serves not just as a way to send donations across borders, but also a store of value when traditional currencies collapse. We’ve heard from Paolo Ardoino, CTO of BitFinex.
In these uncertain times, we have seen an uptick in the utility of bitcoin and other cryptocurrencies in raising funds for legitimate civilian organisations that are helping people who are displaced or in danger. That is the beauty of this technology. The borderless and censorship-proof nature of bitcoin allows donors to bypass traditional financial institutions that could ordinarily block payments to these organisations.
It goes without saying the defining characteristics of bitcoin allows it to act as a safe haven during turbulent times.
Paolo Ardoino, BitFinex
Bitcoin donations to Ukraine top $20mMonday 28 February 2022 14:21 , Anthony Cuthbertson
Cryptocurrency donations to Ukraine’s war effort have now reached $20.9 million, according to analysts.
On-chain data reviewed by Elliptic reveals that a flood of donations on Monday saw the sum double in a matter of hours.
The bitcoin address shared by Ukraine’s government has so far received close to 7,000 donations, while other fundraising campaigns have raised millions of dollars worth of cryptocurrency.
“One NGO received a single bitcoin donation worth $3 million,” Elliptic noted.
Crypto exchange in Russia downMonday 28 February 2022 13:48 , Anthony Cuthbertson
Russian cryptocurrency exchange BestChange appears to be down, with a faction of the online hacktivist group Anonymous claiming responsibility for it.
Prominent Anonymous Twitter account @AnonOpsSE claimed that Russians were attempting to convert Rubles to cryptocurrency via the exchange in respnse to the Russian currency collapsing.
“That not gonna happen,” the account tweeted, alongside a screenshot of the exchange being down.
Hello and welcome...Monday 28 February 2022 13:39 , Anthony Cuthbertson
to The Independent’s live coverage of the crypto market.
We’ll be bringing you all the latest news, analysis and expert price predictions for bitcoin, Ethereum (ETH) and other leading cryptocurrencies.
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