Connect with us

Blockchain

CBECI Report: China’s Hold Over Bitcoin Mining Was Waning Before The Crackdown

Published

on

Shocker! According to the latest CBECI update, China’s control over Bitcoin mining was already waning. The Cambridge Bitcoin Electricity Consumption Index shows that and much more, it “provides an up-to-date estimate of the Bitcoin network’s daily electricity load.” However, China is the headline. The government’s recent ban on Bitcoin mining left the world speechless, and this feels like another piece to solve that puzzle. 

It doesn’t quite fit, though. According to Arcane Research, CBECI numbers say that:

China’s share of total Bitcoin mining power has declined from 75.5% in September 2019 to 46% in April 2021 — before the restrictions on Chinese miners were even imposed. That figure is much lower than the older estimate of 65%.

Related Reading | Why China’s Crackdown On Bitcoin May Be Just Beginning

That’s a sharp decline. Why did China’s miners lose so much ground before the ban? Did the Chinese government turn off the machines that they reportedly own? Why would they do that? Is everyone missing an obvious explanation for all of this? It’s also very interesting that the CBECI shows that the United States and Kazakhstan were growing at a tremendous rate before the ban.

BTCUSD price chart for 07/22/2021 - TradingView

BTC price chart on Bitstamp | Source: BTC/USD on TradingView.com

Bitcoin Mining In The United States And Kazakhstan 

Arcane Research crunched the numbers, and apparently:

Over the same period, the United States’ share of total Bitcoin hashrate increased from 4.1% to 16.8%, making it the second-largest Bitcoin mining location. 

Following behind is Kazakhstan, with an almost six-fold increase of hashrate share — from a mere 1.4% in September 2019 to 8.2% in April 2021.

That ‘s curious. After the government ban came into effect and the miners turned off their machines, we worried about the Bitcoin hash rate going into a death spiral. The great miner’s migration was on its way, and guess who were the forecasted big winners:

Tons and tons of mining equipment are currently traveling to their new homes. There are reports of a huge operation in Kazhakstan, a neighboring nation of China. There are also rumors of equipment and personnel already settling down in Texas. The US state is making a push to become a Bitcoin mining capital, and apparently, the efforts already bore fruit. 

Remember, though, everything the CBECI numbers show happened before the ban.

Is there something we’re missing?

CEBECI, a graph showing Bitcoin hash rate dominance

Country share of global Bitcoin hash rate | Source: Arcane Research

How Do They Get The CBECI Numbers?

The Cambridge Bitcoin Electricity Consumption Index explains the methodology they use:

The underlying techno-economic model is based on a bottom-up approach initially developed by Marc Bevand  in 2017 that uses the profitability threshold of different types of mining equipment as the starting point.

Given that the exact electricity consumption cannot be determined, the CBECI provides a hypothetical range consisting of a hypothetical lower bound  (floor) and a hypothetical  upper bound  (ceiling) estimate. Within the boundaries of this range, a  best-guess  estimate is calculated to provide a more realistic figure that approximates Bitcoin’s real electricity consumption.

So, it’s a very elaborate educated guess. However, it’s based on real data and a range of estimations. Does it tell us anything about the curious results they got? Is the data telling a story that we’re missing? 

Related Reading | How China Bitcoin FUD Is Lowering The Cost To Produce BTC

Last month, we posed a theory about the Chinese government trying to get rid of small hydroelectric plants. The whole situation is perplexing, so, we asked the following questions:

It’s possible that the government is trying to get rid of those plants. That would explain the article’s tone, it seems like it was trying to get investors to stay away from those hydropower stations. In light of this, China’s ban on Bitcoin mining could just be part of an even bigger play. They’re serious and methodically shaking things up over there. 

What could be their end-game? Is China just trying to go carbon neutral and repair the original flow of the rivers? Or is there something else at play here?

Everything the CBECI shows seems to relate to the answer to all of these questions. However, there’s at least one piece missing. The mystery persists.

Featured Image by Tuna Ölger from Pixabay - Charts by TradingView

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://www.newsbtc.com/news/bitcoin/cbeci-report-chinas-hold-over-bitcoin-mining-was-waning-before-the-crackdown/

Blockchain

This new relationship is developing between Bitcoin and Coinbase’s COIN

Published

on

Coinbase became the first major digital asset-based organization that went public. On April 14th, 2021, the cryptocurrency exchange launched its IPO and incurred significant traffic in the beginning. It reached an all-time high value of $429 per share but since then, COIN has taken a major beating. Bitcoin and the collective crypto market crashed on May 19th, and COIN prices followed suit.

Source: Trading View

The stock is currently down 36% from the initial listing price, valued at $245 at press time.

COIN and Bitcoin: similar pathways?

Bitcoin and COIN, both have been stuck under a period of stagnation over the past 3 months but right now, there might be more dependence in terms of value appreciation. Now, while COIN is its own stock uncorrelated to the digital asset industry, the organization holds BTC under and generates revenue from Bitcoin trading volumes.

According to Ecoinometrics, companies that have Bitcoin Treasuries Index such as MSTR, and mining companies MARA, RIOT, were at a higher percentage of decline, with respect to COIN. However, for Coinbase, the dependence made more financial sense.

Coinbase, as an exchange retains 0.7% of the traded volume as revenue. In context, when the exchange is facilitating $150 million in volumes, they make $1 million in revenue.

Now, this plays a huge role when the market is in a bullish cycle. Surging prices improve relative trading volumes for Bitcoin and the exchange is able to cultivate more revenue. But it is important to understand the difference that rising prices without high trading volume does not benefit Coinbase’s revenue streamline.

So what is currently happening with COIN?

At press time, Bitcoin has surged more than 10% over the past week but COIN hasn’t displayed the same momentum. One of the key reasons behind that remains inconsistent trading activity at press time since most price action is possibly driven by pre-established liquidity pools.

For the value of COIN to explode or reach its previous ATH levels of $429, its revenue for the current quarter needs to find consistent inflows which should create a positive impact on COIN’s market price.

Therefore, the price of Bitcoin does not directly impact Coinbase’s stock but activity surrounding the asset on the exchange holds key importance. Also, since the asset is also independent of market squeeze movement, so Bitcoin prices dumping alongside higher trading volumes also caters to a positive effect on COIN’s price.

Where to Invest?

Subscribe to our latest Crypto News and Analysis below :

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://ambcrypto.com/this-new-relationship-is-developing-between-bitcoin-and-coinbases-coin

Continue Reading

Blockchain

NFT-based game Splinterlands raises $3.6M via private token sale

Published

on

Splinterlands — a trading card game built on the blockchain — has concluded a private token sale that netted the company $3.6 million in proceeds, offering further evidence that investors are keen to back promising crypto plays.

The sale centered around the SPS token, which was built for the Splintershards Decentralized Autonomous Organization and will form the basis of game-related governance proposals. Through the SPS token, users will have the ability to influence a range of governance-related decisions, including sponsored tournaments, rewards and card balance updates, among other things.

Related: NFTs make it possible for gamers to have digital property rights

Several crypto-native funds and ecosystem players contributed to the token raise, including Animoca Brands, Blockchain Founders Fund, Enjin, the Polygon network,Yield Guild Games, Gate.io, 3Commas Capital, Alpha Sigma Capital, AGE Crypto Asset Investment Fund, TechmeetsTrader and many others. Individual investors included Ran Neuner as well as the founders of Taiwan Mobile, Simplex and Sandbox.

The token sale concluded around the same time that Splinterlands marked another important milestone: reaching 150,000 players.

Jesse Reich, Splinterlands’ co-founder and CEO, told Cointelegraph that the game surpassed 100,000 users on June 18, three years and one month since launching. However, the game would then add another 50,000 users over the next six weeks.

“Splinterlands has been pushing limits in crypto gaming for three years. We’ve played 60 million games and sold out of four editions of cards,” Reich said. “2021 is the best year in company history and business is booming.”

The Splinterlands CEO also told Cointelegraph that games like Axie Infinity show how “NFT gaming can be one of the most powerful economic tools on the planet.”

Related: Nonfungible tokens from a legal perspective

When players join Splinterlands, they essentially compete for a limited reward pool of Dark Energy Crystals (DEC) — the in-game cryptocurrency — as well as scarce NFTs. Splinterlands has built a strong following since early 2020, around the time Cointelegraph first analyzed the title as part of its crypto games review. Splinterlands’ use of NFTs was considered fairly unique at the time. In the year-and-a-half since, nonfungible tokens have reached mainstream status, with sales topping $2.5 billion between January and June of this year.


PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://cointelegraph.com/news/nft-based-game-splinterlands-raises-3-6m-via-private-token-sale

Continue Reading

Blockchain

NFT-based game Splinterlands raises $3.6M via private token sale

Published

on

Splinterlands — a trading card game built on the blockchain — has concluded a private token sale that netted the company $3.6 million in proceeds, offering further evidence that investors are keen to back promising crypto plays.

The sale centered around the SPS token, which was built for the Splintershards Decentralized Autonomous Organization and will form the basis of game-related governance proposals. Through the SPS token, users will have the ability to influence a range of governance-related decisions, including sponsored tournaments, rewards and card balance updates, among other things.

Related: NFTs make it possible for gamers to have digital property rights

Several crypto-native funds and ecosystem players contributed to the token raise, including Animoca Brands, Blockchain Founders Fund, Enjin, the Polygon network,Yield Guild Games, Gate.io, 3Commas Capital, Alpha Sigma Capital, AGE Crypto Asset Investment Fund, TechmeetsTrader and many others. Individual investors included Ran Neuner as well as the founders of Taiwan Mobile, Simplex and Sandbox.

The token sale concluded around the same time that Splinterlands marked another important milestone: reaching 150,000 players.

Jesse Reich, Splinterlands’ co-founder and CEO, told Cointelegraph that the game surpassed 100,000 users on June 18, three years and one month since launching. However, the game would then add another 50,000 users over the next six weeks.

“Splinterlands has been pushing limits in crypto gaming for three years. We’ve played 60 million games and sold out of four editions of cards,” Reich said. “2021 is the best year in company history and business is booming.”

The Splinterlands CEO also told Cointelegraph that games like Axie Infinity show how “NFT gaming can be one of the most powerful economic tools on the planet.”

Related: Nonfungible tokens from a legal perspective

When players join Splinterlands, they essentially compete for a limited reward pool of Dark Energy Crystals (DEC) — the in-game cryptocurrency — as well as scarce NFTs. Splinterlands has built a strong following since early 2020, around the time Cointelegraph first analyzed the title as part of its crypto games review. Splinterlands’ use of NFTs was considered fairly unique at the time. In the year-and-a-half since, nonfungible tokens have reached mainstream status, with sales topping $2.5 billion between January and June of this year.


PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://cointelegraph.com/news/nft-based-game-splinterlands-raises-3-6m-via-private-token-sale

Continue Reading
Blockchain22 hours ago

Santo Blockchain and French Artist Jerome Peschard Release Cutting Edge XR-NFT Series

Blockchain4 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain5 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain5 days ago

This is The First DeFi Protocol to Support Tether’s EURO

Blockchain5 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain3 days ago

Fintech Giant Zip Co to Provide Cryptocurrency Trading Services

Blockchain5 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain5 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain5 days ago

Rap Legend Busta Rhymes Officially a Bitcoin HODLer

Blockchain5 days ago

Wyre Partners With Polygon to Offer USDC to Customers

Blockchain3 days ago

Blockchain Startups Raised over $4 Billion in VC Funding in Q2 2021

Blockchain5 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain5 days ago

Billionaire Thomas Peterffy Admits He Has Invested in Cryptocurrencies

Blockchain5 days ago

Wyre Partners With Polygon to Offer USDC to Customers

Blockchain5 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain5 days ago

This is The First DeFi Protocol to Support Tether’s EURO

Blockchain5 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain5 days ago

Nodle Announces Partnership with ESTV

Blockchain3 days ago

Nigeria to Launch a Pilot for Its CBDC in October

Blockchain5 days ago

Wyre Partners With Polygon to Offer USDC to Customers

Blockchain5 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain4 days ago

Is This the Token That Can Change Africa’s Future? A Look Into the XTEMCoin

Blockchain3 days ago

Blockchain3 days ago

Nigeria to Launch a Pilot for Its CBDC in October

Blockchain2 days ago

Amazon Wants a Leader For Its Digital Currency and Blockchain Product Unit

Blockchain5 days ago

Wyre Partners With Polygon to Offer USDC to Customers

Blockchain4 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain4 days ago

CZ Hints Binance US is Considering Going Public Via IPO

Blockchain3 days ago

Amazon Wants a Leader For Its Digital Currency and Blockchain Product Unit

Blockchain5 days ago

Binance NFT Marketplace Launches Golden Ticket NFT by Virtue Poker for Tournament with Phil Ivey, Vince Vaughn and Others

Blockchain5 days ago

No, Jack Dorsey isn’t trolling ETH by making its logo the Ethiopian flag

Blockchain3 days ago

Fintech Giant Zip Co to Provide Cryptocurrency Trading Services

Blockchain3 days ago

Nigeria to Launch a Pilot for Its CBDC in October

Blockchain2 days ago

Fintech Giant Zip Co to Provide Cryptocurrency Trading Services

Blockchain5 days ago

Billionaire Thomas Peterffy Admits He Has Invested in Cryptocurrencies

Blockchain3 days ago

CZ Hints Binance US is Considering Going Public Via IPO

Blockchain2 days ago

Fintech Giant Zip Co to Provide Cryptocurrency Trading Services

Blockchain5 days ago

Rap Legend Busta Rhymes Officially a Bitcoin HODLer

Blockchain4 days ago

This is The First DeFi Protocol to Support Tether’s EURO

Trending