According to Antonopoulos, It Is Inappropriate” To Trigger BIP-119 on Bitcoin without Consensus

Jenson Nunez
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According to Antonopoulos, It Is Inappropriate” To Trigger BIP-119 on Bitcoin without Consensus

According to Antonopoulos, non-consensual activation of BIP-119 can lead to a split in the platform. Bitcoin can resist attempts to rush into consensus, according to the programmer.

According to Andreas Antonopoulos, the quick activation of Bitcoin Improvement Proposal (BIP) 119 seems to be inappropriate. In addition, it is dangerous for the protocol if it happens without consensus, as it creates the possibility of a division in the network.

According to the Bitcoin publisher, BIP-119 has not received the outstanding consensus of developers, nor has it received the follow-up that characterized updates like SegWit and Taproot, the most recent update to the protocol. This information appeared in a video uploaded on YouTube.

Antonopoulos expressed that non-consensual activation of this enhancement might cause a split in the protocol but may also lead over time to features getting applied with nefarious motives.

This non-consensual activation makes the whole situation dangerous. It makes it difficult because it activates soft forks that don’t count on support by a broad consensus candidate, Antonopoulos said, later clarifying that Bitcoin is not fit for intelligent contracts from his point of view.

Bitcoin’s Strength

According to Antonopoulos, Bitcoin’s simplicity is its strength and gives it the ability to be safe money. Not satisfied, he also revealed that he would oppose any attempt to implement such capabilities in Bitcoin based on a quick activation without a broad consensus.

However, Antonopoulos clarified that although the BIP might sound a bit scary, it will not happen like other projects implemented in the Bitcoin environment. He warns that there would be a crucial rejection towards those who try to enable such an improvement without consensus.

That said, Antonopoulos highlighted that Bitcoin is not that fragile when resisting these attempts to rush into consensus. And at the end of the day, when people try these things and fail, it shows that there’s no move forward without an agreement, which deters people from trying these kinds of things.

Although there are developers who think that adopting the proposal can improve the environment, others highlight that it is not secure enough. Rubin defends that the BIP-119 is already ready to get applied and even offers 5.5 BTC for the programmer who demonstrates the vulnerabilities present in his proposal.

In any case, Andreas Antonopoulos, who has not yet decided, said that he would study the issue and end up voting (against or for) through his node. Time will tell.

By: Jenson Nuñez

After a Sharp Rise of Almost 40%, the Price of DOGE Suffers a Pullback

Alexander Salazar
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After a Sharp Rise of Almost 40%, the Price of DOGE Suffers a Pullback

Buyers are currently the dominant force in the market, but there could be new bullish momentum in the coming hours/days. The price must break through resistance at USD 0.1540 to confirm the resumption of the higher trend.

The price of the popular meme coin Dogecoin (DOGE) rose sharply after the news that Elon Musk became the owner of Twitter.

DOGE is trading at around USD 0.139 and has accumulated a 6.9% loss over the last 24 hours. Its trading volume is above USD 2.43 billion, and its market capitalization is about USD 18.44 million. It occupies 13th place in the cryptocurrency ranking, according to CoinGecko.

Elon Musk offered to buy American microblogging and social networking service Twitter a few weeks ago. After signing a deal of around USD 44,000 million, the acquisition is now a reality.

After the purchase, the value of the favorite crypto asset of the billionaire businessman jumped by almost 40%.

Musk has advocated for DOGE, which led to the optimism behind that rise in its price. Traders and investors hope that the cryptocurrency can gain even more exposure on Twitter after the acquisition.

The tycoon proposed integrating payment with Dogecoin for those wanting to subscribe to Twitter Blue, among some other changes.

The main objective of purchasing the platform is to avoid censorship, but DOGE holders have been speculating on the price.

Where the DOGE Price Dogecoin Might Head Next

Due to the news about the acquisition, the price of DOGE jumped to a daily high of USD 0.171. In that way, it broke through several immediate resistances, creating a short-term bullish transition.

A strong candle developed and wrapped up a drop of more than two weeks in the price. Buyers are currently the dominant force in the market.

Although a pullback is underway, there could be new bullish momentum in the coming hours/days. If it extended, which is most likely,  the next target would be to break through resistance at USD 0.17.

Following the new intention, the price crosses 8-day EMA and 18-day SMA to the upside.

If the price broke through the above resistance level, the 200-period SMA could start to give bullish signals.

The Price of DOGE Has Not Yet Resumed the Higher Trend

The weekly chart shows that the price is undergoing a significant corrective process in the medium/long term.

The recent upward jump is due to the news about the purchase of Twitter by Elon Musk. The price of Dogecoin reached a higher low, suggesting the start of a medium-term trend transition.

Before confirming that the price has resumed the higher trend, it must break through the resistance at USD 0.1540 with determination. At the moment, there seems to be a scenario with good odds in its favor.

The long-term trend correction in the price could run its course if that did not happen. If it lost the support at USD 0.1310, it would remove the recent intention to change the bearish direction.

The price maintains the 8-week EMA and 18-week SMA crossed to the downside, following the direction of the last few months. Meanwhile, the 200-period SMA has remained bullish thanks to the significant bullish rally starting in early 2021.

By Alexander Salazar

New York State Assembly Passes Ban on New BTC Mining Operations That Do Not Use Green Energy

Audy Castañeda
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New York State Assembly Passes Ban on New BTC Mining Operations That Do Not Use Green Energy

The bill will now move with support to the State Senate for approval before Governor Hochul signs it into law.

The New York State Assembly passed a bill late Tuesday that would ban for two years all new Proof-of-work (PoW) cryptocurrency mining facilities in the state that use a carbon-based fuel for their operations.

The bill, sponsored by Anna Kelles, would not only impose a two-year suspension on the approval of any new Bitcoin mining company, but the proposed moratorium would also prevent the renewal of permits issued to existing PoW cryptocurrency miners that use carbon-based energy if they try to increase the amount of electricity consumed.

Kelles posted on Twitter that she was, “thrilled that my bill with Senate champion @kevinparkernyc A7389C/S6486D just passed in the Assembly as part of the #EarthDay Package! Thank you to all of cosponsors and advocates who helped get this bill to the floor for a vote!”

Passing of the Ban: opposing views

The bill rallied enough support to pass, with 95 in favor and 52 against, and now Senator Kevin Parker will bring it up for a vote in the State Senate. If successful, Governor Kathy Hochul will receive it, who can either veto the bill or sign it into law.

The Department of Environmental Conservation (DEC) would be charged, under the bill, with preparing a “generic environmental impact statement” to number, locate, and assess the energy consumption and greenhouse gas emissions of PoW miners and their impact on public health.

Cryptocurrency industry advocacy group the Blockchain Association had earlier called on “pro-tech, pro-innovation, pro-cryptocurrency” New York residents to oppose the bill, which, according to them, gave rise to thousands of messages directed at legislators.

The association said there was about three hours of debate on the bill, showing what they believe is “greater opposition to the mining ban than proponents believed.” In a tweet on Wednesday, the team said it would direct its energy to the New York Senate to kill what it calls the “anti-tech bill.”

Proposals to ban proof-of-work cryptocurrencies for environmental reasons are becoming more common. A similar proposal called the Markets in Crypto Assets Bill (MiCA) was narrowly defeated in the European Parliament at the end of March, with lawmakers there even considering banning Bitcoin trading to enforce the mining ban proposal.

As the Story Unfolds: Moratorium on Bitcoin Mining in New York Approved

In a 95-52 victory, the New York State Assembly has voted to pass legislation establishing a two-year moratorium on Bitcoin mining.

The bill will now go to the State Senate for a new round of voting.

Although the bill does not propose an outright ban on cryptocurrency mining, it will prevent mining companies from renewing their mining permits if fossil fuels power those operations. According to the bill, this also means that no new permits will be approved either.

“The Department of Public Utilities will not approve a new application or issue a new permit … for an electric generation facility that uses a carbon-based fuel and that provides, in whole or in part, electric power behind the meter consumed or used by cryptocurrency mining operations that use proof-of-work authentication methods to validate Blockchain transactions,” it read.

“Behind the meter” is a term that describes energy used on-site. A common type of behind-the-meter system is a residential solar system: solar panels on the roof generate electricity, fed into the home below for use. It is in contrast to “in front of the meter” which feeds an off-site location. An example of this is a utility power plant, whose power goes over a wide area for use by electricity consumers. “Proof-of-work authentication methods” refers to the mechanism a Blockchain uses to confirm various operations, from simple transactions to forging an NFT.

Currently, Bitcoin and Ethereum are the largest proof-of-work (PoW) networks of cryptocurrencies. However, Ethereum is likely to switch to a greener mechanism called proof-of-stake (PoS) in the third quarter of this year, with the highly anticipated Ethereum 2.0 upgrade.

By Audy Castaneda

Generation ZOE Style Case: At Least 20,000 People Lost their Digital Assets in Adhemar Capital

Jenson Nunez
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There is an estimate that Adhemar Capital managed at least USD 400 million from its victims. This April 28, the investigative process against Adhemar Bacchiani now begins.

Edgar Adhemar Bacchiani, CEO of Adhemar Capital, a company based on a pyramid scheme with bitcoin (BTC) and other digital assets located in Argentina, must appear for investigation on April 28, after getting captured last Friday.

Bacchiani and two other collaborators face charges of illegal association, money laundering, fraud, and unauthorized financial intermediaries. Although, according to the Clarín newspaper, Bacchiani’s wife would also have a vital role in the incident.

Bacchiani and his team got captured in the Catamarca Unit Division of the Federal Police. After the investigation, the court will confirm how the legal situation of each defendant continues. They do not rule out calling other people to testify in the coming days, said Alfredo Aydar, a lawyer for one of the victims.

The company, located in Catamarca, in northwestern Argentina, offered a 50% return to investors through bitcoin trading, something that it could not maintain for long, as is often happening in this type of case.

The interruption in payments set off investors’ alarms, and they complained about the situation. Rumors about an investigation led by the Argentine justice system appeared in January, but these rumors got dismissed by the company at the time.

Citizens of Many Provinces Fell into Bacchiani’s Networks

Although the operations of the scheme focused on Catamarca, the fame of the supposed benefits of the company caused it to expand to other regions such as Tucumán and Córdoba, places where the company also installed headquarters reaching as far as La Rioja.

In the case of La Rioja, the lawyer of a group of 68 people, participants in the scheme in that province, Cristian Masking, said that according to the inquiries led by his law firm, there are at least 20,000 victims.

The total amount of funds handled by Bacchiani and his collaborators is unknown, but for February, two investors gave the platform USD 620,000 and USD 8,950,000, respectively.

According to the lawyer Aydar, in Catamarca, some investments approached USD 200 million. While in Tucumán, between USD 60 and USD 80 million, and in Córdoba, around USD 60 million, it is estimated that Adhemar Capital managed USD 400 million.

A local media reported that a group of those affected by the alleged scam marched to demand the return of their funds. They even tried to enter Bacchiani’s house, but the police prevented them.

Does Bacchiani Possess the Currencies?

The currencies got possibly housed in a cold wallet. By some signs in a photo on Twitter, speculations are pointing that Edgar Adhemar Bacchiani has under his control the digital assets of the investors.

The theory that Bacchiani possesses these crypto-assets got exposed on Twitter by Oswaldo Mendeleev (@BetoMendeleev_). Everything was born from some photos taken by the justice at the time of Bacchiani’s arrest, in which it seems that he makes a couple of gestures with his hands.

He points to his cell phone with one hand, and with the other, he makes the twine symbol, referring to the fact that the victims’ money is in digital currencies there, according to Mendeleev.

By: Jenson Nuñez

Ricardo Salinas Prefers Buying BTC to Mining It Due to Uncertain Tax Issues

Alexander Salazar
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Ricardo Salinas Prefers Buying BTC to Mining It Due to Uncertain Tax Issues

Salinas will have some mining machines only to collaborate with the security of the Bitcoin network. Although he does not find access to energy advantageous, he plans to mine BTC with the power generated by volcanoes.

Billionaire businessman Ricardo Salinas abandoned his plans to venture into Bitcoin (BTC) mining in Mexico. He believes that uncertain tax issues would imply risks of investment losses that he would not want to run.

Due to his position as an investor, Salinas said that he would choose to buy Bitcoin instead of mining it. He pointed out that he would allow miners to work but focus on acquiring more bitcoins.

Salinas considers that a mining company would suffer operating, accounting and financial losses if it did not sell its products. It would not obtain any income beyond the price of the cryptocurrency itself.

The owner of Grupo Salinas explained that Bitcoin mining companies hold the coins in inventory but do not earn any income. He added that they have to cover expenses related to the depreciation of machines, the operation, the energy, and the workers.

He commented that the Mexican Tax Administration System (SAT) would probably require those companies to declare their unsold production.  However, he thinks this is unclear and is subject to changes and modifications.

Salinas said that buying Bitcoin outright seems less risky than building a mining infrastructure, which has to do with risk appetite. He explained that it would depend on the cost in Bitcoin of the machines and energy use. He highlighted that establishing a farm is not so simple as it requires knowledge, unlike buying Bitcoin.

The Mexican billionaire is abandoning his idea of setting up a large-scale mining farm but will have some machines to mine. However, he clarified that he would not do it for money but to cooperate with the security of the Bitcoin network.

Salinas Criticizes the Energy Plan of the AMLO Government

Ricardo Salinas criticized the plan of Andrés Manuel López Obrador (AMLO) to eliminate the energy self-sufficiency scheme and preferential rates. The businessman considers that this will cause many electrical installations to shut down.

Salinas explained that this plan harms private companies that use renewable energy to generate electricity in Mexico. They would have to pay high rates for transporting their production through transmission networks controlled by the Federal Commission of Electricity (CFE).

However, miner Ricardo Carmona, CEO of Mexico-based company Biomining, said this scenario would lead energy-producing companies to have large surpluses. He added that large Bitcoin mining companies could use it to make Mexico a mecca for large-scale Bitcoin mining.

Salinas Does Not See Any Advantage in Access to Energy

Salinas explained that Bitcoin mining requires access to energy and machinery but thinks that even available power would be disadvantageous in Mexico.

He said he could sell that energy to the market for 14 US dollar cents. However, he remarked that it needs to cost 4 US dollar cents for Bitcoin mining to be profitable.

His comments of the Mexican businessman indicate that he plans to go deeper into purchasing the pioneering cryptocurrency. Even though he recognizes the importance of mining, he thinks that Bitcoin mining will not meet his expectations as an investor.

By Alexander Salazar

Two Specialists Give their Opinion on Whether Bitcoin Is a Bubble

Alexander Salazar
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Two Specialists Give their Opinion on Whether Bitcoin Is a Bubble

The behavior of Bitcoin since its creation does not fit that of the typical model of a bubble. The pioneering cryptocurrency did not emerge as an investment vehicle but has behaved like a financial asset.

The most prominent argument by Bitcoin (BTC) opponents might be that they associate it with an economic bubble. Various experts describe it as a sharp price rise followed by an equally sharp fall.

The Bitcoin network is the predecessor of the most significant bubble experienced by the modern generation. That ghost has haunted and strengthened it as an alternative to traditional finance but has terrorized those not understanding that technology.

Many have described Bitcoin as the new bubble, as its value has risen meteorically over the last decade. Experts usually associate Bitcoin cycles with sudden increases and decreases, but the behavior pattern of BTC is not that of a bubble.

What Specialists Say about Market Bubbles

Venezuelan economist Henkel García believes it is not easy to determine whether Bitcoin constitutes a bubble. He says that it is as hard as knowing the preferences of the active participants of the market.

The limited supply of 21 million BTC is an argument that would contradict the conception of Bitcoin as a bubble. That would turn it into a deflationary and scarce asset, increasingly valuable in the economy.

The specialist disagrees with that concept, maintaining that the bubbles have also appeared in assets with a limited circulation/currency. He exemplifies the relative scarcity of a bubble with the case of tulips in Holland in 1620. Their price rose exorbitantly in less than twenty years but dropped once demand decreased.

Many analysts believe that it is hard to know whether or not an asset is a bubble. Instead, all markets have bubble behavior at some point, according to the Nobel Prize winner in Economics in 2013.

Robert Shiller states that it would be a mistake to assume that there are no bubbles in the market. He points out that they occur continuously and says that almost all actions in the aggregate value include them.

Bitcoin Does Not Emerge as an Investment Vehicle

Expert economist in cryptocurrencies Aaron Olmos argues that Bitcoin did not initially emerge as an investment vehicle. He says it is impossible to analyze as a traditional asset as it does not fit the category of a bubble.

Olmos also states that Bitcoin enjoys growing acceptance as a payment method and a refuge asset, making its value robust.

The analyst explains that an economic bubble bursts because price increases have no elements to justify them. Since its creation, it has shown that price corrections occur after a bullish period. He notes that those rise and correction cycles have sought to reach a price level corresponding to the market reality.

Bitcoin did not emerge as an investment vehicle, but it became a financial asset at the initiative of companies and individuals. Although Bitcoin did not receive a single role, some see it as a currency while others consider it a speculative asset. Many others think of it as a store of value, as it has multiple ways of being valuable to its users.

By Alexander Salazar

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