A Renowned Star on the Shark Tank TV Program Buys Bitcoin during a Fall

Alexander Salazar
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A Renowned Star on the Shark Tank TV Program Buys Bitcoin during a Fall

Kevin O’Leary has argued that the crypto market requires urgent policy regulation, highlighting that regulatory institutions want to apply policies. Apart from buying Bitcoin during a fall, he mentioned the automatic reaction against miners due to the amount of energy they need.

One of the stars of the Shark Tank TV program recently said that he bought Bitcoin during a price drop. He explained that he took advantage of the recent market liquidation, adding that much regulation is lacking.

It Is a Good Idea to Buy BTC at Current Prices

It is an excellent idea for almost all businesspeople and investors to buy Bitcoin. The value of the cryptocurrency has moved away by over 50% from its all-time high of nearly USD 69,000. Therefore, purchasing it at current prices may provide a high profitability level in the long term.

The current prices of BTC may not remain in the future, considering that it might reach USD 100,000 after or before the next halving.

Businessman Kevin O’Leary, also known as Mr. Wonderful, decided to take advantage of this opportunity to buy Bitcoin. The Shark Tank star explained that he saw Bitcoin testing 20,000 getting much support all the time. He thinks it is still very profitable even for Bitcoin miners, currently mining it for USD 7,000 on average.

He has repeatedly argued that the crypto market, including that of Bitcoin, requires urgent policy regulation. He said that was a problem as the different regulatory institutions want to apply policies regarding the crypto ecosystem and NFTs, among others.

Regulation Is Still Necessary for Bitcoin and the Overall Crypto Market

The star buying Bitcoin during a fall was only part of an interview since he also talked about the current mining situation. He mentioned there had been an automatic reaction against miners due to the amount of energy needed for their activity.

However, the businessman commented that they had corrected the facts, alternating energy use and looking for more sustainable solutions. For example, they have turned to nuclear or hydroelectric energy, abundant in various countries.

He also stated that Bitcoin and the overall market need an urgent regulation policy. He explained that the US Congress might pass a bill on stablecoins, not Bitcoin, which has been a worrying area for law. However, he thinks they will postpone this draft law until September, and there is a 50% chance of a policy based on dollar-pegged stablecoins.

O’Leary considers that this may happen due to the dispute between the SEC and other regulatory agencies over cryptocurrencies and NFTs, among others. He believes they will make a new payment system while creating regulations and evaluating results. In addition, he thinks they may make a new fund with limited flexibility terms.

He concluded that the market might enter a new bullish phase if they postponed the policy until September fell apart. That might lead to breaking the logjam with the political formulations, which makes him feel optimistic.

By Alexander Salazar

Nobody Has Reported that Bitcoin Mining Uses More Renewable Energy

Alexander Salazar
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Nobody Has Reported that Bitcoin Mining Uses More Renewable Energy

Daniel Batten did an analysis based on publicly available information to avoid criticism, confirming the impact of the amount of renewable energy. The owner of a China-based Bitcoin mining operation said that widespread Bitcoin mining in China uses hydro and solar power.

The Bitcoin Mining board has reported a significant increase in the use of renewable energy after China banned cryptocurrencies. Some people have called them into question because they only rely on self-reported data.

Climate tech investor Daniel Batten did an analysis based on publicly available information, statistics, and news to avoid criticism. That way, he sought to confirm the impact of the amount of renewable energy the Bitcoin network uses.

In case of uncertainty, he assumed the worst-case scenario of increased fossil fuel use. He only found a 10.9% increase in the use of renewable energy on the Bitcoin network.

There Have Been Wrong Reports on Bitcoin Mining

According to some reports in The New York Times, Bitcoin mining had turned less green. However, they relied on a single study containing major flaws like the ones below.

They wrongly analyzed the net hash power change and the renewable energy mix before and after the ban in China. In addition, they did not consider the 47-fold reduction in mining in Iran, combined with the 4-fold growth in mining in Canada.

The study also included information accurate at the time that has changed, like the migration of miners to Kazakhstan.

An Analysis of Bitcoin Mining Using Updated Information

According to Daniel Batten, the ban on Chinese cryptocurrency mining was a ban on fossil fuel energy. He pointed out that the Asian country now largely contributes to using green energy for that activity.

Two separate sources indicate that the Chinese global hash rate is still above 20%. Cybersecurity Qihoo360 and the University of Cambridge estimate that 21.1% of mining has occurred in China since January.

The owner of a China-based Bitcoin mining operation confirmed widespread Bitcoin mining in China using hydro and solar power. He said the ban had eliminated all carbon-based Bitcoin mining conducted for nine months of the year.

Bitcoin Mining Stopped Using Carbon for Nine Months

Many believe that Chinese mining companies use hydropower for six months of the year and coal for the other six months. However, that is wrong, as Bitcoin mining companies have used low-cost hydroelectric power only during the humid summer months.

Sudden heavy rains generate more capacity than hydroelectric stations can find customers. Bitcoin miners would only use that energy, which would otherwise become waste.

China had almost half of the Bitcoin network using hash power before the ban. That situation made the entire Bitcoin network 30% more fossil fuel-based.

Kazakhstan Has Not Become the Crucial Factor Most Imagined

It is relevant to know that 99% of the Kazakh hash rate relies on fossil fuels. Therefore, a permanent transfer to Kazakhstan would have affected the use of green energy in Bitcoin mining.

The contribution of Kazakhstan to the global hash rate is shrinking to the level before the ban. On March 21st, Kazakhstan accounted for 7.4% of the hash rate worldwide, which rose briefly to 18.1%.

Kazakhstan has weathered a blackout fee of 1-2.5c/KWh on cryptocurrency mining, and the authorities have seized 67,000 illegal mining machines. It also lost 202 MW of power in a single raid of 13 mining sites.

By Alexander Salazar

Zipmex Exchange to Reduce Bitcoin and Ethereum Withdrawals this Week

Audy Castañeda
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Zipmex Exchange to Reduce Bitcoin and Ethereum Withdrawals this Week

The decision comes shortly after the platform resumed withdrawals from some altcoins last week.

Shortly after resuming withdrawals for some altcoins, Asian exchange Zipmex announced that it will reduce withdrawal amounts for Bitcoin and Ethereum later this week.

The statement comes after the platform assured its users on August 4 that it is “committed to resuming all services on the Zipmex platform as soon as possible and to rebuilding trust and easing customer concerns.”

Sixteen Destined for Release on August 11

Zipmex, a cryptocurrency exchange with offices in Singapore and Thailand, announced a temporary suspension of client withdrawals from the platform on July 20. While the exchange blamed falling crypto asset prices and loan defaults by industry heavyweights for the decision, it said it will resume withdrawals within 24 hours of suspending operations.

Yesterday, Zipmex twitted that it, “is planning to release a specific amount of ETH and BTC on 11 and 16 August respectively. We’re working hard to release the balance of Z Wallet holdings ASAP.”

Now, despite the exchange’s battle with Babel and Celsius, it intends to release a specified amount of ETH and BTC on August 11 and 16, respectively.

Previously, on August 2, 100% user SOLs were released, 100% XRP was announced on August 4, and Zipmex said it will make 100% ADA available on August 9, 2022. Stablecoins, on the other hand, will remain inaccessible for the time being.

Meanwhile, in Singapore, Zipmex has filed for bankruptcy protection to address its financial concerns by placing a moratorium on five of its businesses. While the hearing will take place on August 15, it is crucial to reiterate that Zipmex has raised a total of $62.9 million in investment over the course of 6 rounds. According to Crunchbase, Coinbase and B Capital Group were the most recent investors.

That said, co-founder Akalarp Yimwilai also stated on Twitter last month that “the main goal at this stage is to raise funds and open Z Wallet as soon as possible.”

Will the Singapore Court follow the Vauld Path?

Last week, the Singapore High Court granted troubled cryptocurrency exchange Vauld a three-month moratorium period. As a result, the corporation will be effectively protected from any potential legal action by creditors during this time.

Therefore, a similar route for Zipmex will allow the platform to resolve its liquidity issues and re-enable its Z wallet.

It is worth remembering that Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Thailand-based Zipmex Company Limited, PT Zipmex Exchange Indonesia, and Zipmex Australia Pty Ltd are among the companies seeking assistance under Section 64 of the Insolvency Act, Singapore Restructuring and Dissolution of 2018.

Under Singapore law, these businesses should be given an automatic 30-day moratorium or until the court issues a ruling.

By Audy Castaneda

Bitcoin Price Holds Firm despite News of Tornado Cash Sanctions

Audy Castañeda
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Bitcoin Price Holds Firm despite News of Tornado Cash Sanctions

The popular cryptocurrency ‘mixer’ is a common tool of hackers.

The price of Bitcoin has remained stable and consolidated between 22,500 and 24,500 dollars for a few weeks, and apparently, it is not affected by the negative news that continues to be present in the crypto space, nor by the actions of world regulators.

In particular, the US authorities tighten the fence on companies that offer services related to cryptocurrencies. This Monday, specifically, actions have been taken against the cryptocurrency ‘mixer’ Tornado Cash.

The US Treasury Department has sanctioned the popular cryptocurrency mixer for its alleged use by the notorious North Korean hacker group and other actors to launder cryptocurrency.

“Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks,” Brian Nelson, Treasury Sub-secretary for terrorism and financial intelligence, said in a statement.

About Tornado Cash

This tool is used by some people as a legitimate way to protect their privacy in the still nascent cryptocurrency market. Typically, when a buyer pays for something using a cryptocurrency wallet, the recipient of the transfer has access to the wallet, displaying account details and history.

Using a cryptocurrency mixing service like Tornado Cash masks those details, anonymizes the funds, and hides the identity of the buyer.

Tornado Cash Current Situation

Sanctions won’t likely stop Tornado Cash itself from operating. A few days ago, co-founder Roman Semenov asserted that the privacy service was designed to operate without centralized control. While he and his team write and publish code, a decentralized autonomous organization (DAO) has to approve any changes before they are made.

“The protocol was specifically designed this way to be unstoppable because it wouldn’t make much sense if some third party [such as a developer] would have control over it. This would be the same as if someone had control over Bitcoin or Ethereum,” he further explained.

The price action of the main tokens does not seem to have suffered after this news. Bitcoin remains hovering above $24,000, following Monday’s highs above this price level, while Ethereum also has $1,800 within its grasp. Total capitalization stands at over $1.1 trillion.

“Sentiment seems to be changing among cryptocurrency traders and all of this is mainly due to one fundamental reason, and that is that institutions are still very interested in bitcoin,” says Avatrade analyst Naeem Aslam, “and they don’t want to waste the current opportunity to pocket Bitcoin while it’s cheap,” he adds.

The expert points out that the proof of this is that BlackRock has decided to use Coinbase to offer cryptocurrencies to its clients. “This particular piece of news couldn’t be bigger, and it shows that despite all the blowouts in the crypto yield market, smart money is an asset class to get involved in, as the risk to reward is very motivating,” says Aslam.

By Audy Castaneda

China Closes 12,000 Network Accounts for Promoting Investment in Cryptocurrencies

Audy Castañeda
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China Closes 12,000 Network Accounts for Promoting Investment in Cryptocurrencies

Chinese authorities have been taking restrictive measures against virtual currencies such as Bitcoin since 2013.

The Cyberspace Administration of China, the internet regulatory body in the Asian country, closed 12,000 accounts on social networks because they promoted investment in cryptocurrencies, whose activities were declared illegal by the national authorities, local press reports today.

According to the economic news portal Yicai, the institution “continues to carry out a high-pressure campaign against speculation on cryptocurrency transactions”, within the framework of which it claimed platforms such as Weibo or Baidu – local equivalents of Twitter and Google, censored in the country – to close the aforementioned accounts.

Also, more than 51,000 messages containing “illegal information” such as “invest in Bitcoin to earn money easily” were deleted.

Cyberspace Administration of China: Further Actions

Authorities also shut down more than a hundred websites that promoted cryptocurrencies and had published tutorials on mining or “cross-border speculation” with virtual currencies.

The Cyberspace Administration promised to further “strengthen” its campaign against cryptocurrencies, whose rise has caused, according to its analysis, “an increase in speculation and fraud.”

Chinese authorities have been taking restrictive measures against virtual currencies such as Bitcoin since 2013; Less than a year ago it was the turn of the People’s Bank of China (PBC, the central bank), which declared all activity related to cryptocurrencies, including transactions, mining and advertising, “illegal and criminal”.

In 2017, the Chinese authorities had already closed the national cryptocurrency exchange platforms. In 2019, PBC, the central bank, announced the blocking of access to web pages where cryptocurrencies were offered.

Why Cryptocurrencies are Illegal in China

It is worth remembering that, according to the People’s Bank of China, digital currencies, such as Bitcoin or Ether, cannot circulate in the market because they are not fiduciary currencies, in addition to the fact that their use has disrupted “the economic and financial order” and encouraged activities such as “money laundering, fundraising illegal, fraud, pyramid schemes, and other illegal activities”.

On the other hand, the Chinese government argues that the environmental aspect is reason enough to ban cryptocurrency-related activity. In China, there is a large concentration of crypto miners; this situation collides with the nation’s efforts to curb greenhouse gas emissions.

Likewise, Beijing argues that the ban is necessary to “maintain economic, financial and social order”, and its campaign is part of the government’s financial risk reduction plans, which, it should be remembered, is working on its own “digital yuan,” a digital currency that, unlike other cryptocurrencies, does not intend to decentralize, but to increase the control of the BPC over the money supply.

In the past, Chinese miners had come to control more than 65% of the world’s computing power dedicated to mining Bitcoin, thanks in part to low electricity prices in certain regions of the country.

By Audy Castaneda

While Cybercriminals Steal USD 200 Million, the CFTC Emerges as the Lead Crypto Regulator

Alexander Salazar
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While Cybercriminals Steal USD 200 Million, the CFTC Emerges as the Lead Crypto Regulator

Following the recovery of USD 9 million of the USD 200 million stolen from Nomad, security firm PeckShield makes efforts to find the rest. US senators are discussing a bill to allow the CFTC to control cryptocurrencies, as it will redefine commodity to include digital commerce.

A group of cybercriminals recently attacked crypto bridge Nomad, making it lose nearly USD 200 million. That situation shook the whole cryptoverse since the hackers posed as employees to access more funds.

Projects offer bounties to bad actors, turning them into white hat hackers to control exploitation incidents. After suffering a security breach, Solana-based wallet provider Slope announced it would give the hackers 10% of the stolen funds if they returned them.

White hat hackers recovered USD 9 million of the USD 200 million stolen from Nomad, while security firm PeckShield struggled to find the rest. The team of the crypto bridge claims to collaborate with law enforcement and leading blockchain security companies.

Regulators Have Upped the Ante against Crypto Assets

Over the last week, there has been significant regulation against cryptocurrency traders. The New York Department of Financial Services (DFS) convicted Robinhood with a USD 30 million fine for not complying with anti-money laundering regulations.

Meanwhile, the Indian Ministry of Finance has investigated WazirX for allegedly laundering money. They froze some funds of the cryptocurrency exchange for affiliations with Chinese lending apps operating in the country.

The US Securities and Exchange Commission (SEC) accused Forsage of operating a crypto Ponzi scheme that led investors to lose over USD 300 million. The measure resulted from a joint effort between Philippine and Canadian regulators, as some defendants pleaded guilty to serious charges.

There Has Been a Wave of Positive Changes

Despite the reports on hacking in the cryptoverse, the crypto winter shows signs of thawing. According to on-chain experts have stated USD 140 billion in stablecoins could re-enter the markets. Changpeng Zhao, CEO of Binance, had previously commented that most people wanting to leave crypto would not have stablecoins.

During the week, Instagram announced that its non-fungible token (NFT) feature would be available worldwide. They also disclosed an integration with Coinbase Wallet, Dapper Wallet, and Flow blockchain.

Despite widespread reports of delays, Tether stated that it would back ETH 2.0. Stablecoin issuers might reserve their support following claims that the Ethereum network could fork after the Merger. Besides, stablecoins might face many lawsuits if that event goes wrong.

Many Legislators Worldwide Agree with Supporting Cryptocurrencies

US senators are discussing a new bill to give the Commodity Futures Trading Commission (CFTC) control over cryptocurrency markets. The draft law will redefine commodity to include digital commerce, bringing crypto assets like Bitcoin (BTC) and Ether (ETH) under the control of the CFTC.

The bill will lead legislators to create new categories in the industry, including digital commodity brokers and custodians. Before being able to trade, those firms must register with the product.

The Bank of Thailand might experiment with retail central bank digital currencies (CBDCs) later this year. The leading banks in the country would focus on security and innovative use case scenarios for digital baht.

By Alexander Salazar

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