Adirize DAO, Ether, and TRON Are the DeFi Crypto Assets that May Reach Bitcoin

Alexander Salazar
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Adirize DAO, Ether, and TRON Are the DeFi Crypto Assets that May Reach Bitcoin

The new stablecoin ADI emerges as an option to overcome the loss of value due to the collapse of the US dollar. TRX states that it seeks to eliminate transactions through intermediaries, which should only occur between two people or entities.

Cryptocurrencies have allowed transferring money securely, quickly, and without excessive verification. In that regard, banks have become outdated for those who prefer to execute financial transactions through blockchain technology. Besides, more blockchains are emerging every day, a trend that does not seem to stop.

While Adirize DAO (ADI) shows a new perspective on stablecoins, Ether (ETH) and TRON (TRX) still make headlines for their potential. Those tokens have become increasingly relevant in the crypto market and may go as high as Bitcoin (BTC).

Investors Must Watch the New Stablecoin ADI

USD Coin (USDC), among other stablecoins, may be more stable than Bitcoin (BTC) and other cryptocurrencies. However, they still depend on the US government and the Federal Reserve (Fed) for their peg to the US dollar.

If the American fiat currency collapses, the value of stablecoins will drop. The creation of Adirize DAO has occurred in the hope that its native token ADI will help overcome that situation.

The Adirize DAO protocol has a component that relies on the bonus mechanism to ensure liquidity. That allows the process to increase the value in its treasury as staking makes ADI tokens scarce by locking them.

Ether Is among the Leading Cryptocurrencies

The creation of decentralized and decentralized contracts has allowed Ethereum to become a well-known blockchain, distinguishing it from its competitor Bitcoin. Its native token ETH, a valuable cryptocurrency, helps its governance, making it a worthwhile blockchain.

The Ethereum ecosystem allows users to create decentralized applications (dApps) and access services and goods through decentralized finance (DeFi) using the Internet.

Ethereum uses a proof-of-work (PoW) consensus mechanism, but a Merger will change it to a proof-of-stake (PoS) mechanism in September. That will increase its speed by 99% or could increase the value of the ETH tokens. Therefore, this might be an excellent time for investors to buy the second largest cryptocurrency.

Ether is trading at around USD 1,988 and has accumulated a 15.4% gain over the last week. While its daily trading volume is above 18.38 billion, its market capitalization is about USD 238.70 billion, according to CoinGecko.

The TRX Network Charges No Transaction Fees

TRON is among the blockchains in the market that process transactions per second the fastest. Although it emerged in Asia, specifically in Singapore, it has rapidly crossed borders.

It has stated that it seeks to eliminate transactions through intermediaries, which only two people or entities should do privately. A significant and surprising relief to investors is that TRON has no transaction fees.

The users of TRX can stake and hold it to earn rewards and participate in the selection processes on the platform. Cryptocurrency enthusiasts may find TRON an excellent option due to its great potential.

By Alexander Salazar

Three Trends that Will Shape the Future of Bitcoin Mining

Audy Castañeda
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Three Trends that Will Shape the Future of Bitcoin Mining

Bitcoin mining industry builds on past knowledge and experience, preparing for a scalable future.

Trends can tell a lot about where any industry came from and where it’s headed.

In 2009, at the start of Bitcoin, people mined it from their laptops. Back then, there was no concern about issues like power consumption at scale, hardware vendors, and maximizing operational efficiency in massive data centers.

However, gradually Bitcoin mining grew and scaled, and trial and error provided opportunities to learn and create new innovations to help the industry grow.

Currently, 2022 has arguably been a challenging year for Bitcoin and the cryptocurrency industry in general, although the mining industry continues to grow.

Bitcoin mining is certainly going to be changing, as the following three trends shape the future of the cryptocurrency business.

Trend 1: renewable energy

Possibly the most talked about Bitcoin mining topic today, the fact is that mining rigs convert electricity into energy, and large-scale mining operations use a large amount of energy, up to 110 terawatt-hours per year, which is equivalent to the energy production of a small country.

One of the main trends in Bitcoin mining today is the shift towards more renewable energy sources, instead of carbon-based energy.

Even when some argue that dirty sources like coal are cheaper, this is actually not true, as 90% of hydro, 75% of wind, and 40% of solar are still less expensive than the fossil fuel option.

Increasing the use of renewable energy will be beneficial in the long term, both for the industry and for the plant, so in the short term, although the profitability is very high, miners must actively consider their energy source.

Trend 2: immersion cooling

Mining operations have always needed ways to keep their data centers cool, due to excessive heat production. An emerging trend is the use of immersion cooling, which involves placing miners in a bath of oil-like liquid, which is then circulated through cooling towers from the heat. This method ensures that valuable mining equipment does not come in contact with outside air, as dust or moisture can degrade the hardware.

Considering that miner prices are very high these days, it is more profitable to max out limited mining hardware to squeeze out any performance capacity. The best way to do this is to submerge the miners, as the cooling capacity of the immersion liquid is much greater than that of air.

Immersion cooling has been found to reduce operating expenses by up to 33%. Obviously setting up such an immersion requires much more experience to build and operate than the more traditional air-cooled setup.

The number of companies that rely on immersion for their constructions is increasing; with this, the industrial sector is growing rapidly.

Trend 3: Chip Shortage

Demand for semiconductor chips has increased 17% since 2019 for use in cars, phones and tablets, home healthcare devices, AI and more, and for mining rigs. However, supply has not increased to meet that demand, even though semiconductor manufacturers are producing at 90% capacity.

Certain chips in demand could leave companies waiting up to a year for a supply. This means that making short-term decisions is not an option at this time. Mining companies need to plan their operations about a year in advance through a robust model of the mining ecosystem, order early, and wait.

Overall, these trends point to some big things happening within the Bitcoin mining industry. Bitcoin miners are learning what works and what doesn’t and are focusing on making innovations or adopting new practices to evolve. Additionally, Bitcoin mining has become a resilient industry that, despite current market challenges, is trending in the right direction.

By Audy Castaneda

Following the Sanctions by the OFAC, the Tornado Cash DAO Stopped Operating

Alexander Salazar
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Following the Sanctions by the OFAC, the Tornado Cash DAO Stopped Operating

The link to the governance forum of Tornado Cash started displaying an invite error message, whose origin nobody knows yet. The dYdX trading platform said it had suspended accounts of users previously interacting with the privacy platform.

The Office of Foreign Assets Control (OFAC) of the US Treasury Department recently sanctioned cryptocurrency mixer Tornado Cash. Social media reports indicate that the Discord server of the platform has stopped operating, as happened with its DAO website.

The DAO of the Platform Goes Offline

Following the sanctions by the OFAC, several entities have distanced themselves from the services of Tornado Cash. In addition, some assets of the Ethereum-based platform have become inaccessible to its users.

The DAO of the platform has brainstormed ideas to circumvent its current status and remain afloat. The DAO forum reportedly went offline shortly after a community vote proposing that the DAO members be signatories to a multi-signature wallet.

The proposal received unanimous approval, although the wallet of the Treasury manages assets worth about USD 22 million. The proponent said moving to a 4-of-6 system would make it easier to approve the transaction process. They would continue having access to the community fund regardless of what may happen to two of the signatories.

However, the community Discord server went offline after the link to the governance forum started displaying an error message. That situation led visitors to an invite error message whose origin is still unknown.

The Ban on Tornado Cash Has Negative Effects

Many speculate that this is the latest of many actions against the cryptocurrency mixer from various entities. Roman Semenov, the co-creator of Tornado Cash, revealed that the development platform Github had frozen his account following the announcement of the ban.

After that, Tornado Cash said on Twitter that the same had happened to personal Github accounts for its contributors. The dYdX trading platform also stated that it had suspended accounts of users previously interacting with the privacy platform. Furthermore, node providers Alchemy and Infura.io blocked remote procedure call requests to the sanctioned platform.

Another entity that distanced itself from the cryptocurrency mixer was the centralized stablecoin network Circle. Jeremy Allaire, its CEO, shared that the company had frozen over USD 75,000 worth of assets in 44 Tornado Cash addresses.

The Dutch authorities recently arrested Alexey Pertsev, software developer of Tornado Cash, for allegedly allowing illicit activity on the platform. The financial crime agency of the Netherlands accused the 29-year-old expert of facilitating money laundering by users.

The United States Bans Software for the First Time

Industry operators have not yet accepted the sanctions. Omid Malekan, Columbia Business School Adjunct Professor, said this is the first time the US government has criminalized interaction with the software.

Acknowledging the concerns of the Treasury, Omid stated that there is evidence of criminals using Tornado Cash to launder funds. The professor, who teaches about cryptocurrencies and blockchain, noted that the mixer has valid applications. He thinks the United States has taken a significant step regarding sanctions against individuals, companies, and governments.

By Alexander Salazar

El Salvador Has Received $120.46 Million in Remittances in Cryptocurrency Wallets

Audy Castañeda
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El Salvador Has Received $120.46 Million in Remittances in Cryptocurrency Wallets

Despite the increase in the number of remittances to El Salvador in cryptocurrencies, it still represents less than 2%. The Central Reserve Bank (BCR) indicated that until the end of June, shipments to El Salvador in cryptocurrency wallets represented 1.88%.

In the first 10 months of the adoption of Bitcoin as legal tender in El Salvador (September 2021 to June 2022), 120.46 million dollars of remittances have entered the country through cryptocurrency wallets, according to the latest data from the Central Bank Reserve (BCR).

Although remittances increase month after month, they represent less than 2% of total remittances to El Salvador from abroad, particularly from the United States. Previously, President Nayib Bukele argued that the country paid an average of 400 million dollars a year in commissions for remittances:

“Our people pay 400 million dollars a year in fees for remittances. That saving alone will be a huge benefit for our people (or at least for those who want it). There is also the advantage of not having to carry cash. Safer and more practical”.

About Remittances

In May, the BCR explained that remittances to the country amounted to 5,072.09 million dollars and that only 1.9% of transfers were through cryptocurrencies, which at that time were 96.3 million dollars, 24.16 million dollars less.

Weeks ago, the president of El Salvador, Nayib Bukele, stated that the country’s inclusion in the ranking of the World Tourism Organization, along with 14 other countries, is mainly due to the adoption of Bitcoin as legal tender, the promotion of sports such as surfing, and even fighting gangs.

“Only a handful of countries have been able to bring their tourism back to pre-pandemic levels. And that is international tourism, so the reasons behind it are mainly #Bitcoin and surfing. But domestic tourism is growing even more, mainly due to our crackdown on gangs,” Bukele further claimed.

Since remittances increase in total, the percentage in cryptocurrencies remains the same or is less than 2%. According to EFE, until the end of June, shipments to El Salvador in cryptocurrency wallets represented 1.88% of the 6,406.67 million dollars that entered between September 2021 and last June.

October 2021 was the month with the most remittances to El Salvador (one month after the Bitcoin Law was approved) with 29.68 million dollars and since then, remittances have not exceeded 20 million dollars per month. Last May, they entered 15.59 million dollars.

The Future of Chivo Wallet amidst Rumors

The Minister of Finance of El Salvador, Alejandro Zelaya denied a series of rumors circulating on local social networks regarding the future of the Chivo Wallet. The official added that both Bitcoin (BTC) and the Chivo Wallet are a strong bet by the current government:

“We have been very emphatic in our commitment to the use of the Chivo Wallet. And the use of Bitcoin in El Salvador is a bet for the future. It is a bet that we are going to maintain, and we fully know that it is not going to give overnight results.”

By Audy Castaneda

Peter Schiff: Bitcoin on Course to Drop below $10,000

Audy Castañeda
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Peter Schiff: Bitcoin on Course to Drop below $10,000

According to the expert, “people should take advantage of the sucker rally they have now and get out.”

Euro Pacific Asset Management chief market strategist and investor Peter Schiff has warned investors that Bitcoin’s rise to new highs looks almost unlikely now, but it is on track to drop below $10,000.

Speaking to reporters, Schiff stated that the crypto market bull run that saw Ethereum gain 70% since the early stages of July is not sustainable, calling it a “fool’s rally.”

Schiff added that the sell-off in crypto markets this year was a clear reflection of a massive “pump and dump.”

The investor also described Bitcoin as a “major dumb scheme” that will inevitably fail. “All these big dumb schemes always fail. You run out of fools, and the last fool is the holder of the bag, “he said.

“The market is going to crash. I think people should take advantage of the uptick they have now and get out. Lots of people still make a profit on these tokens. People bought Bitcoin four, five, six years ago and they make huge profits. Same with Ethereum. People should get out because otherwise, the market is going to take those gains away,” he added.

Schiff lashes out at Bitcoin

The investor has had a bearish view of Bitcoin since 2011 and has subtly criticized it and its investors on several occasions. However, Peter Schiff has been dubbed a Bitcoin “negative” in the crypto space, given his frequent and near-extreme negative comments about Bitcoin and the crypto space in general, as well as the numerous times his price calls and predictions have failed.

In August 2019, the economist predicted that the Bitcoin price would never touch the $50,000 mark, a prediction that came back to haunt him.

Earlier this year, the investor claimed that the crypto market was in a “bubble” even though Bitcoin had already lost 65% from its highs. However, weeks later, he backtracked, stating that, “At the end of the day, the only people who are going to walk away from this crypto bubble with something to show for it, are the people who sold it.”

Schiff Criticizes Michael Saylor

In early August, Peter Schiff tweeted scathing criticism at Michael Saylor, after the then-CEO of MicroStrategy claimed that the company’s investment in Bitcoin was “a great success for shareholders,” despite receiving a big hit after the Bitcoin bear run.

The investor described MicroStrategy stock as “overvalued” and that the company’s stock price would eventually collapse.

“I think it’s really ridiculous that Michael Saylor, CEO of MicroStrategy, continues to claim that this investment was a success. What you are doing is remembering what Bitcoin was when they bought the first Bitcoin. Well, we’re making money on our first purchase, but you can’t choose your first purchase, what about all the other purchases that were higher up? You can’t do that, you have to look at the whole and add up all your purchases. Are you ahead or behind? And they are way behind,” he said in a tweet.

By Audy Castaneda

Cryptocurrencies Emerge as an Alternative amid an Inflation Record of 10.8%

Alexander Salazar
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Cryptocurrencies Emerge as an Alternative amid an Inflation Record of 10.8%

Over the last few months, unemployment has risen in Spain, one of the European countries with the highest inflation rates. After observing inflation from afar by analyzing other countries, an imminent recession leads Spaniards to seek cryptocurrencies to maintain their purchasing power.

Spain has achieved worrying inflation levels over the last few months, a process that seems to be growing. Recent data shows that the European country has exceeded two digits, reaching a new record of 10.8%.

Since Spain is a tourist destination, it usually has higher hiring levels in the summer. However, unemployment has risen this season as the number of affiliates dropped in July, which had not happened for 21 years.

Joaquín Pérez Rey, Secretary of State for Employment, recognizes that the international context has led to poor results. The official considers that the labor market cannot remain shielded from what happens in other nations.

Alternatives to Face the Drop of the Global Market

Widespread inflation is plunging Europe into a deep crisis, which its citizens have not seen since World War II. Several factors influence the economy and its performance, affecting those countries with a weak economic and geographical position.

Europeans have partially come out of a global pandemic, which almost paralyzed the economy. That led various industries and employees to see their assets weaken while central banks issued high amounts of banknotes to address the crisis.

The damage to the supply chain caused a high imbalance between demand and supply, increasing prices. After that, the Russia-Ukraine conflict plunged the economy into prolonged uncertainty, breaking any previous analysis.

Europe shares borders with Russia and depends heavily on the energy it supplies. The current situation affects the cost of electricity, the basis for prices to rise or fall. There is fear and stupor due to the uncertain outcome, causing the markets to suffer from high volatility and sharp drops.

Inflation as a New Problem for Spaniards

Spaniards used to think of inflation as a satellite problem, as they observed it from afar by analyzing countries with new dismal results. The issuance of high amounts of euros and an imminent recession create the need for alternatives to avoid losing purchasing power.

The start of the war between Russia and Ukraine did not affect cryptocurrencies as other markets. However, their performance has also dropped due to the current global events. However, the price of Ether (ETH) has had one of the best behaviors over the last few weeks.

The use of crypto assets plays a relevant role, which countries undergoing economic crises have confirmed. Many people have turned to them due to the COVID-19 pandemic and the invasion of Ukraine. They allow paying for products and services regardless of international restrictions, observed among Russian citizens worldwide.

Bitcoin (BTC) is trading at around USD 23,856 and has accumulated a 3.5% loss over the last week. While its daily trading volume is above 27.61 billion, its market capitalization is about USD 456.12 billion, according to CoinGecko.

By Alexander Salazar

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