US Officials Suggested Blocking problematic Crypto Wallets, Even Before the Government Commands them

Jenson Nunez
-
0
US Officials Suggested Blocking problematic Crypto Wallets, Even Before the Government Commands them

A FinCEN official expressed that crypto entities should not wait for the US administration to punish an address involved in illegal or criminal activity to block it.

A senior US Treasury Department official suggested the cryptocurrency sector actively blocks problematic wallets connected to criminal activity, even before that or any other government agency commands it.

Financial Crimes Enforcement Network (FinCEN) Associate Director of Compliance Alessio Evangelista expressed during a recent event that digital currency service providers should not wait until Treasury punishes an address for blocking it. CoinDesk highlighted the news, citing the official’s remarks during Chainalysis’s LINKS conference.

Evangelista said that cryptocurrency service providers have chosen to keep a quiet stance about blatantly suspicious wallets until the day of an OFAC designation or criminal indictment; the comment points to the US government’s list of punished entities.

The Office of Foreign Assets Control is the financial agency under the Department of the Treasury’s control that manages and carries out economic and financial sanctions focused on US policy. Also part of the Treasury, FinCEN is a financial crime enforcement office.

Crypto-Companies Must Make a Move on the Matter

The official also highlighted that entities in the digital asset sector are putting their reputations at risk by ignoring many red flags that they could and possibly should have considered a long ago. In addition, he added that he thinks that entities carrying out activities in the sector need to have a better posture regarding their monitoring procedures effectively.

The comments seem to reflect on recent efforts made by federal officials across the nation to determine and fight against criminal behavior in the crypto sector. Last month, the Treasury Department detected the connection of a hacker team based in North Korea that appeared to be responsible for a $600 million attack on the Ronin network of the famous Axie Infinity game.

At the time, OFAC identified an Ethereum address as responsible for the attack and pointed it on its list of sanctioned bodies. This month, the bureau punished a crypto mixer for the first time due to its alleged use and other attacks led by North Korean cybercriminals.

According to CoinDesk, Evangelista mentioned this recent event during the talk. These funds got extracted to support a totalitarian regime that spends its money developing weapons of mass destruction at the expense of feeding its citizens, he said, reflecting on North Korea.

The official would also have called out digital currency projects that use the term “decentralization” as a buzzword and a way to avoid their compliance obligations. Crypto entities that operate under the direction of individuals cannot circumvent their compliance obligations by falsely calling themselves decentralized.

By: Jenson Nuñez

Nasdaq Falls Further than Bitcoin amid Falling Markets

Jenson Nunez
-
0
Nasdaq Falls Further than Bitcoin amid Falling Markets

Nasdaq fell 5% this Wednesday against a 3% decline in bitcoin price. Shares of the Target chain of stores fell 25% last Wednesday.

The quarterly results of the essential retail chains Walmart and Target, which presented lower incomes than in previous periods, accentuated this week the fears in the market about how much inflation has impacted the economic sector.

This Wednesday, this uncertainty was highly prominent in the department store area. It expanded its tentacles downward pressure on shares in other vital economy departments, including the bitcoin and digital assets market space.

According to the financial report Seeking Alpha, the first warning sign arrived with Walmart’s quarterly financial results on Tuesday, May 17, which presented a prominent drop in incomes. Despite an increase in sales in the quarter, the fact that the expected earnings per share (EPS) were not optimal led to an 11% fall in Walmart stock last Tuesday, which has continued until this Thursday, 19.

This Wednesday, the publication of the results of Target confirmed the tendency of consumers to focus their investments more on goods like food and reduce the consumption of other services such as television. Both Target’s sales and incomes presented lower rates than estimated.

The impact of the fall in profits was more prominent than in the case of Walmart, as shares of Target fell 25% on Wednesday.

The Nasdaq index, led by the leading technology entities such as Apple, Alphabet (Google), Amazon, and Intel, resulted in the most significant losses this Wednesday, 4.73%, followed by S&P 500 and Dow Jones. This Wednesday, the Bitcoin price crumbled down due to a high correlation, losing at least 2.94%.

This figure is a little more than half of the loss appearing in the Nasdaq index, which establishes a new remarked point in the behavior that this digital asset recently had concerning risk assets. Until now, bitcoin price decadence had been steeper than in stocks.

A coupling of the bitcoin price with the Nasdaq and S&P 500 indices remains on the spot. The cost of bitcoin faced a slight recovery in the last hours and was trading at USD 30,095. This week, bitcoin managed to appreciate 14%, while Nasdaq experienced a slight increase registered at 1%.

According to the closeness of the spot price of bitcoin with its realized price, Glassnode highlights in its recent Week-on-Chain report that the gathering procedure is happening due to traders who consider that bitcoin could get undervalued. The cost would reach a high peak in the long run.

However, the economist and expert Harry Dent highlighted that the world would be at the beginning of a long bearish period. According to Dent, Bitcoin could crumble down to as low as $3,000 before starting a breakout to the $500,000 mark.

By: Jenson Nuñez

Bitcoin Mining in Chile Is Profitable Only in the Long Term

Alexander Salazar
-
0
Bitcoin Mining in Chile Is Profitable Only in the Long Term

Ether miners might earn a little over USD 10 a month using a video card (GPU). Miners using a machine that consumes 3,500 W pay up to USD 240 per month in Chile.

The mining of Bitcoin (BTC) and other cryptocurrencies is a profitable business in the long run, which requires patience. That seems to be the current view in Chile, where the profitability of that activity depends on various factors.

As for Bitcoin, equipment with a low hash rate generates red numbers while mining the cryptocurrency. High energy costs in Chile affect most of the older equipment.

The situation does not vary much with Ether (ETH) since the miners of that protocol could receive profits of just over USD 10 per month. That would happen with a video card (GPU), according to Bitcoin miner Hernán Maureira.

However, that does not prevent the profitability of the activity in the South American country. Although it is not enough to become industrialized, mining companies can contribute to the network while making money.

Chile Has Green Sources of Energy, but Its Rates Are Expensive

Chile is among the leading countries regarding the production and consumption of renewable energy. At least 48.3% of the electrical capacity comes from green sources, which allows it to reduce harm to the environment.

However, Chile has high electricity rates, so users must pay USD 0.36 or 300 Chilean pesos (CLP) per kWh. That amount corresponds to residential consumption of over 75 KW per hour. There are also averages of 12 US cents (or CLP 100) for the energy consumption of a company or industry.

The above characteristics make it hard to engage in Bitcoin mining from a house or apartment in Chile due to the high electricity demand. However, there is a boom in the mining of other cryptocurrencies. According to local media, up to 3,000 miners are in and around Santiago.

Prices for electricity service offered to miners can exceed USD 240 per month for equipment that consumes 3,500 W. In El Salvador, some miners pay USD 450 for operations with 5 megawatts (MW).

How Much Cryptocurrency Miners Earn in Chile

The profitability of cryptocurrency mining depends on the machines used, as in most countries. Using powerful equipment would boost earnings to around USD 300 a month, according to the calculations of Maureira.

Miner incomes are in the same range in other nations in the region. For example, in El Salvador, the activity generates between USD 300 to USD 1,000 with state-of-the-art equipment.

In contrast, in Mexico, mining can make profits of USD 2,800, even excluding operating expenses of USD 1,400. In Paraguay, the activity can generate a return of around a little over USD 15,000 or USD 1,250 per month.

Concerning GPU mining, the reported earnings could lead an investor to doubt their move. According to operator Alexis Lavado, a latest-generation video card can leave daily profits of USD 0.51, excluding electricity costs.

By Alexander Salazar

Bitcoin Allows a Man to Build His Dream House

Alexander Salazar
-
0
Bitcoin Allows a Man to Build His Dream House

After buying Bitcoin for USD 100, that man could build his house last year. He believes that the future of the cryptocurrency will be bullish and that its current drop is a good time to accumulate.

Some of those buying Bitcoin (BTC) when it was worth little and held it all this time managed to become billionaires. John Ratcliff, who achieved that dream, recently explained how he did it. The game developer said that his knowledge of computer code led him to investigate the workings of Bitcoin in 2013.

Bitcoin technology amazed him, so he invested USD 15,000 when the cryptocurrency was barely worth USD 100. Instead of selling his holdings, he kept them for the long term because he was sure that their value would rise.

The price of the pioneering cryptocurrency has increased tremendously and is currently around USD 29,176. It is important to remember that it reached its all-time high of USD 67,800 six months ago.

Ratcliff confessed that he accumulated several million by holding (saving) Bitcoin until he became a billionaire. That allowed him to build his dream house, which he finished in November. Likewise, he could buy places for his nephews, pay off student loans for his children, and set aside money for charity.

His Bitcoin Savings Allowed Him to Build His Dream Mansion

In winter, mountains, lakes, and snow surround his mansion in a quiet Woodland Park neighborhood in the US state of Colorado. His residence measures 5,000 square feet, and he estimates that he built it entirely with Bitcoin.

Considering what he originally paid for Bitcoin, the house cost Ratcliff between USD 5,000 and USD 8,000. Although his wife dubbed the mansion Bitcoin Manor, he prefers to call it the Ratcliff Conference Center and Hotel.

The protagonist of this story knew that his initial investment would bring considerable benefits, except for one possibility. He never considered the risk of Bitcoin hacking or software malfunction. The only fear he felt was that the government would make it illegal at some point.

However, far from banning the use of cryptocurrencies, the US government seeks to regulate it. Colorado has already allowed paying taxes with crypto assets, as did Buenos Aires, showing that their adoption is growing.

It Is Still Possible to Become Rich with Bitcoin

Ratcliff believes that the price of BTC will continue to rise much higher and even compares the asset to Apple shares in 1982. He pointed out that whoever bought the latter that year and has kept them is now wealthy. For that reason, he believes that the key is to invest for the long term.

However, all investing involves risk, so investors should not spend more than they are willing to lose. Likewise, it is advisable to observe what is happening in the market as there are significant variations such as the one in recent months.

The billionaire said on Twitter that a friend of his had asked him whether it was an excellent time to buy more. He thinks this is a great point to accumulate rather than sell for fear of it dropping further.

Although Ratcliff believes that the price correction was incredibly bullish, he does not directly link it to Bitcoin. He said that he was impressed that the market absorbed the LUNA dumping. In addition, he considers it a sign of education that people realize that it is a buying opportunity.

By Alexander Salazar

Spaniards Can Finance their Games of Chance with Cryptocurrencies

Alexander Salazar
-
0
Spaniards Can Finance their Games of Chance with Cryptocurrencies

In 2018, the Bank of Spain and the CNMV warned about the alleged risks of investing in crypto assets and operating with them. However, no government controls decentralized cryptocurrencies, nor does any intermediary entity earn money from financial transactions with them.

The position of the Spanish government on cryptocurrencies is quite conservative, as they are cautious and favor the rights of consumers and investors. However, that is due precisely to the history of financial fraud during the recession.

The Spanish cannot adopt crypto assets as legal tender since their only national currency is the euro. Article 10 of Regulation (EC) No. 974/98 of the Council establishes that it is only legal tender in the European Union and the eurozone.

In 2018, the Bank of Spain and the National Securities Market Commission (CNMV) released a statement on cryptocurrencies. They warned about the alleged risks of investing in cryptocurrencies and operating them in the country. That statement merely reflects a position from the government since it is not yet an obtained rule of law.

However, blockchain technology will have many applications in the Spanish legal environment thanks to its incorruptible, public and transparent technology. The gambling industry already has a clear and more competent position on cryptocurrencies. That allows casino players to finance their games of chance with crypto assets.

Regulation of Cryptocurrencies in Spain

Although there is no clear legislation on cryptocurrencies, regulation seems to be getting closer. A growing number of MEP representatives are willing to propose cryptocurrencies as the axis of the economy of Spain. For example, María Muñoz suggested that the country become the world mecca for Bitcoin mining.

The online casino industry in Spain has been a pioneer in legalizing the sector. In 2011, the General Directorate for Gambling Regulation emerged as the regulatory agency for online games of chance. That entity is responsible for issuing and granting licenses to virtual casinos that meet some requirements.

Cryptocurrencies have the potential to change the online gambling industry, whose process has already begun. For that reason, Bitcoin casinos offer benefits that attract players from all over the world, including the Spanish.

Decentralized cryptocurrencies are not under the control of any government, and no intermediary entity earns money from financial transactions with them. Using Bitcoin is cheap, as people can make cross-border transactions for low fees.

The Security and Privacy of Bitcoin Users

As Bitcoin is part of the decentralized technology, completely encrypted transactions are part of individual records. The system will reject any attempts to tamper with the transaction history, such as data theft and replication. Besides, no authority or bank will be able to block the access of online casino players to their money.

With Bitcoin, users submit information based on encrypted e-wallet addresses created for one time. Many players are uncomfortable sharing their identity documents for fear of fraud or identity theft. For that reason, they find it more convenient to pay with cryptocurrencies.

Some regulated markets do not accept the use of bank credit cards to pay at the online casino. Bitcoin would allow those restrictions to go away depending on the jurisdiction. Although the casino and the gambler are in countries with different legislation, this does not affect the cryptocurrency.

By Alexander Salazar

US-Mining Firms Increased their Bitcoin Production Sixfold in a Matter of One Year

Jenson Nunez
-
0
US-Mining Firms Increased their Bitcoin Production Sixfold in a Matter of One Year

Marathon’s revenue was up 556% in the first quarter compared to 2021. The hash rate of mining entities also increased, and it appears to continue to do so.

Bitcoin (BTC) mining showed good numbers during the past year. US entities engaged in the activity registered higher production and higher revenues in the first quarter of 2022, with a growth recorded at more than 150% year-on-year in the case of bitcoin generation.

CMarathon, Hut 8, Cleanspark, and Bitfarms highlighted their positions in the first three months of 2022, expressed in monetary income that surpassed 100% compared to the same stage from the previous year.

These mining entities are among the largest operating in the United States of America. They include at least 15 EH/s available together to the Bitcoin platform. They considered that the US concentrates 37.84% of the global hash rate, just over 20% participation in that country alone, although only 7.5% in the whole network.

More Bitcoin Production

Riot generated 1,405 bitcoins in the first quarter of the Year. That figure represented 186% more than the same stage registered last Year when just 461 BTC got produced.

In the case of Marathon, this company generated 1,259 BTC, a noticeable increase since last year they only managed to mine 192 BTC. This figure shows 556%.

Meanwhile, Bitfarms highlighted that they generated at least 961 bitcoins in the Year’s first three months. That figure shows a standard cost of  $8,700 for each bitcoin generated, compared to $8,400 last year.

On the other hand, Hut 8 produced at least 942 bitcoins. That figure represented 74% more than the previous year when they reached 539 BTC. And Cleanspark managed to generate 866 BTC, 36% more.

Higher Incomes

The five entities mentioned reported singular growths in their net profits and the activity during last year, almost 500% more, as a sign of the profitability of the operations.

According to the companies’ data reports, Riot’s income expressed in dollars from its mining activity peaked at 150% compared to last year, to a record figure of USD 57.9 million.

In the case of Marathon, the increase was 465% more, after registering an income of USD 41 million in the first quarter, compared to USD 9.1 million gained during the same stage last year.

Hut 8, for its part, saw growth of 67% in its quarterly income, to USD 53.3 million. His mining revenue increased by at least $49.3 million, or the equivalent of 942 BTC produced. Cleanspark had $41.6 million in revenue during the first quarter, a growth of $33.5 million from last year when they brought in $8.1 million. That was a 413% increase.

And Bitfarms acknowledged a total profit of $40 million in the Year’s first quarter. That’s 42% more than in 2021, when the income was $28 million.

By: Jenson Nuñez

1...790791792...1,654Page 791 of 1,654