Tanzanian president urges central bank to prepare for crypto

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Reports of Mining Sector Cleanup Put China’s Yunnan Province in the Spotlight

Reports of Mining Sector Cleanup Put China’s Yunnan Province in the Spotlight

Authorities in Yunnan are launching an investigation to identify and shut down miners that are illegally using electrical power to mint bitcoin, Chinese media reports. Inspections will also focus on potential safety hazards and will be carried out by various government departments. The mining industry cleanup is expected to continue till the end of June.

Media: Yunnan Energy Bureau to Pull the Plug on Bitcoin Farms

The province of Yunnan is reportedly joining the crackdown on cryptocurrency mining that’s already underway in other Chinese regions. According to the South China Morning Post (SCMP), local authorities have ordered an investigation into the alleged illegal use of electrical power in bitcoin mining. On Sunday, the publication quoted a June 12 report by the China Securities Journal which is published by the Xinhua news agency.

The newspaper revealed that the Yunnan Energy Bureau plans to cut the power supply to individuals and companies illegally using electricity in crypto mining facilities or evading electricity bills. Safety risks discovered during the checks will also be sufficient to shut down mining operations, states a notice issued by the energy administration.

Reports of Mining Sector Cleanup Put China’s Yunnan Province in the Spotlight

The mining sector cleanup should be completed by the end of June, Sina reported on Saturday. An official from the energy regulator said the inspections will be carried out jointly by various departments. Mining companies relying on unauthorized access to electricity or evading transmission and distribution fees will face penalties, the news outlet added. Sanctions also await power generation enterprises supporting their activities.

Yunnan’s plans to shut down bitcoin farms were covered in a Coindesk report on Friday, citing Forkast News which had referred to a screenshot of a document appearing to be from the Yunnan Energy Bureau. The copy had been circulating on Chinese social media. Coindesk later corrected the information stating that “The source for this claim appears to have been a counterfeit” and quoting “multiple sources” that questioned the authenticity of the document.

Forkast News had also reportedly been told by an employee at the BTC.top mining pool that the company was preparing to shut down its operations in Yunnan in light of impending government restrictions. However, CEO Zhuoer Jiang later denied that BTC.top had a definite idea about the province’s regulatory policy towards the industry. The executive could not verify the authenticity of the document in the screenshot while others like Chinese crypto blogger Wu Blockchain have said it’s false.

China’s Crackdown on Crypto Mining Continues

The media reports have indicated that Yunnan may be the latest Chinese region to join the country’s current crackdown on cryptocurrency mining. Similar measures have already been taken in Inner Mongolia, Xinjiang and Qinghai. Energy officials in Sichuan held a meeting to discuss the implications of bitcoin mining earlier this month but according to the SCMP, they have not adopted any policy changes at this stage.

While environmental concerns have clearly played a role in the case of Qinghai and the fossil fuel-rich Inner Mongolia, Sichuan relies heavily on cleaner hydropower. The same is valid for Yunnan as well, which is the second-largest hydropower-producing Chinese province. In another tweet on Friday, Wu Blockchain commented:

China is aiming to cut its carbon emissions to 65% of the 2005 levels by 2030. The People’s Republic accounts for around 65% of the global bitcoin (BTC) hash rate, according to the Cambridge Bitcoin Electricity Consumption Index (CBECI), with Xinjiang alone responsible for nearly 36% of that. Sichuan and Yunnan rank second and fourth, respectively, while Inner Mongolia is third. It’s been estimated that bitcoin mining consumes around 110 terawatt-hours of electricity annually.

What are your thoughts on China’s crackdown on bitcoin mining? Tell us in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

TA: Bitcoin Prints Bullish Pattern, Why Dips Turn Attractive For BTC

Bitcoin price formed a base above $35,000 and started a fresh increase against the US Dollar. BTC broke the $38,000 resistance and it even traded close to $40,000.

  • Bitcoin started a fresh increase above the $38,000 and $38,500 resistance levels.
  • The price is currently well above $38,000 and the 100 hourly simple moving average.
  • There was a break above a major declining channel with resistance near $36,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct lower, but the bulls are likely to remain active near $38,000.

Bitcoin Price Gains Bullish Momentum

Bitcoin declined slowly, but the bulls were active near the $35,000 support zone. BTC formed a base above the $35,000 level and it recently started a strong increase.

There was a clear break above the $36,500 resistance and the 100 hourly simple moving average. More importantly, there was a break above a major declining channel with resistance near $36,200 on the hourly chart of the BTC/USD pair.

The pair gained pace and it broke the key $38,000 resistance level. The upward move was such that the price traded close to the $40,000 level.

Bitcoin Price

Source: BTCUSD on TradingView.com

A high was formed near $39,849 and the price is now correcting lower. It broke the $39,000 support level to start the current correction. An immediate support is near the $38,650 level. It is close to the 23.6% Fib retracement level of the upward wave from the $34,916 swing low to $39,849 high.

On the upside, an initial resistance is near the $39,200 level. The first major resistance is near the $39,800 and $40,000 levels, above which the price likely to gain bullish momentum. The next resistance is near the $42,000 level.

Dips Supported in BTC?

If bitcoin fails to clear the $39,800 resistance, it could start a downside correction. An initial support on the downside is near the $38,600 level.

The first major support is near the $38,000 level. The main support is now forming near the $37,500 level. It is close to the 50% Fib retracement level of the upward wave from the $34,916 swing low to $39,849 high. A downside break below the $37,500 support zone could push the price towards the 100 hourly SMA.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower from the 75 level.

Major Support Levels – $38,000, followed by $37,500.

Major Resistance Levels – $39,500, $39,800 and $40,000.

Dutch Official Predicts Crypto Market Crash, Says ‘the Netherlands Must Ban Bitcoin Now’

Dutch Official Predicts Crypto Market Crash, Says ‘the Netherlands Must Ban Bitcoin Now’

The director of the Netherlands’ Bureau for Economic Policy Analysis, a part of the country’s Ministry of Economic Affairs and Climate Policy, has predicted “The ultimate collapse of the crypto bubble.” He urges the government to ban bitcoin and other cryptocurrencies immediately. However, the country’s finance minister disagrees that banning cryptocurrency is right for the country.

CPB Director Wants Cryptocurrencies Banned

Pieter Hasekamp, director of CPB Netherlands Bureau for Economic Policy Analysis (CPB), published an article on the official CPB website Friday titled “The Netherlands must ban bitcoin.” The article was originally written for publication in the daily newspaper Het Financieele Dagblad.

The CPB is a part of the Ministry of Economic Affairs and Climate Policy. Its director is appointed by the minister, in consultation with other members of the government. However, the CPB is fully independent as far as the contents of its work are concerned, the bureau’s website states. As the country’s central planning office, the CPB does scientific research aimed at contributing to the economic decision-making process of politicians and policymakers.

Hasekamp has been the director of the CPB since March 1, 2020. He was previously director-general for tax affairs at the Ministry of Finance and director of health insurance at the Ministry of Health, Welfare and Sport.

After examining the use of cryptocurrencies as money, he concluded:

Cryptocurrencies are unsuitable as a unit of account and means of payment outside the criminal circuit; its use as a store of value is based on the hope that cryptocurrencies will one day replace real money. But that’s not going to happen.

The director continued: “Cryptocurrencies are essentially neither money nor a financial product, but an example of what Nobel laureate Robert Shiller calls a contagious narrative: a contagious story in which people believe because other people believe in it. Gresham’s law is replaced by Newton’s law: what goes up, must come down.”

Shiller, however, recently said that he was considering getting active in the BTC market. Calling Bitcoin “an impressive technology,” the Nobel laureate said he has been tempted to get into cryptocurrency.

Nonetheless, Director Hasekamp emphasized:

The ultimate collapse of the crypto bubble is inevitable … The Netherlands must ban bitcoin now.

He further said that “Several countries are now taking steps to curb the crypto hype, due to harmful consequences – fraud, criminal use, gambling addiction, financial instability, not to mention the enormous energy waste in production.”

The director warned that the Netherlands is lagging behind other countries in its attempts to regulate cryptocurrency trading platforms.

Hasekamp noted: “cautious regulation can also backfire: it legitimizes crypto as a bona fide financial product. Recent developments show that it is time to act: the longer we wait, the greater the negative consequences of the eventual crash.” He concluded, “The ultimate step is a total ban on production, trading and even possession of cryptocurrencies.”

However, the Dutch finance minister, Wopke Hoekstra, reportedly said Friday that banning is not the solution for the Netherlands right now. While acknowledging the CPB director’s concerns, the finance minister believes that it is better to monitor the crypto industry. He was quoted as saying:

My observation now is that that is more effective than a total ban in the Netherlands.

What do you think about the CPB director’s ban recommendation? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Christine Lagarde Reaffirms ECB’s Crypto Policy as Bitcoin Becomes Legal Tender in El Salvador

Christine Lagarde Reaffirms ECB’s Crypto Policy as Bitcoin Becomes Legal Tender in El Salvador

The president of the European Central Bank (ECB), Christine Lagarde, has shared her view on El Salvador making bitcoin legal tender. She confirmed that the central bank’s policy on bitcoin and other cryptocurrencies has not changed.

ECB’s Lagarde Comments on El Salvador Making Bitcoin Legal Tender

ECB President Christine Lagarde has shared her view last week on El Salvador’s move to make bitcoin legal tender. The country passed a bill last week making bitcoin legal tender alongside the U.S. dollar.

Lagarde first admitted that since she left the International Monetary Fund (IMF), she is “no longer familiar with the situation in El Salvador.” The ECB chief noted, “I know that it is a country that is under the IMF program.”

While pointing out that “the issue of having dual tender in a particular economy is a difficult one,” Lagarde confirmed:

That certainly does not change our approach to crypto assets and to regulations, supervision, and proper classification that they should be under to avoid misinformation and misleading representations.

After El Salvador passed the bill making bitcoin legal tender, the IMF said that it saw legal and economic issues regarding this move. A BIS official also commented recently that it is an “interesting experiment” but it does not change the BIS’s view on bitcoin and other cryptocurrencies, insisting that BTC fails a means of payment test.

Lagarde warned last month that cryptocurrencies are prone to money laundering and have no intrinsic value. In January, she said: “It’s a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity.”

What do you think about Lagarde’s comments on bitcoin? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

JPMorgan Warns of Incoming Bitcoin Bear Market Citing ‘Unusual Development’ in Futures

JPMorgan Warns of Incoming Bitcoin Bear Market Citing ‘Unusual Development’ in Futures

Investment bank JPMorgan Chase has warned of a further bitcoin price decline, expecting an incoming bear market. The bank’s analysts look at the trend in bitcoin futures and see “an unusual development and a reflection of how weak bitcoin demand is at the moment from institutional investors.” However, a number of people disagree with this analysis.

JPMorgan Warns of Incoming Bear Market

JPMorgan Chase analysts, led by Nikolaos Panigirtzoglou, warned of an incoming bitcoin bear market in a note to investors last week.

The analysts looked at bitcoin futures which have been trading at a discount to the spot price, known as backwardation. “We believe that the return to backwardation in recent weeks has been a negative signal pointing to a bear market,” they wrote, adding:

This is an unusual development and a reflection of how weak bitcoin demand is at the moment from institutional investors that tend to use regulated CME futures contracts to gain exposure to bitcoin.

JPMorgan’s analysts affirmed that their outlook for bitcoin was negative. They pointed out another sign that worries them — the sharp decrease in bitcoin’s market share of the total crypto market, which fell from 60% to about 40% between April and May. The analysts call this decline in the BTC market share “a bearish signal carrying some echoes of the retail-investor-driven froth of December 2017.”

They see similarities between the current situation and the bitcoin crash in 2018 when investors rushed into cryptocurrencies as they boomed in 2017 and mass exited as the prices plunged during 2018. The bitcoin futures curve was also in backwardation for most of 2018 when the price of BTC dropped from about $15K to $4K, JPMorgan detailed.

Some people took to Twitter to disagree with JPMorgan’s analysis. Twitter account DTC Crypto Trading, for example, wrote: “So the ‘analyst’ at JPMorgan says that backwardation on BTC while price is moving up is a sign of the bear market. No clue who ‘analyzes’ this but they might want to hire better people. Pretty much every time BTC has had a sustained period of backwardation, price moved up.” Several people agreed with this analysis.

Meanwhile, rival investment banks are seeing huge demand from institutional investors. Even the CEO of JPMorgan, Jamie Dimon, recently admitted that institutional clients want exposure to bitcoin. Goldman Sachs has repeatedly said that it is seeing huge institutional demand for BTC, noting that the cryptocurrency has become a new asset class. Morgan Stanley is already offering some bitcoin investments to wealthy clients due to the high demand for the crypto asset.

Bitcoin’s price moved higher Sunday afternoon following clarification by Tesla CEO Elon Musk stating that his company will resume accepting the cryptocurrency “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.” At the time of writing, the price of bitcoin sits at $38,874 based on data from Bitcoin.com Markets.

What do you think about the bitcoin prediction by JPMorgan? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Elon Musk Says Tesla Will Resume Accepting Bitcoin When Miners Confirm 50% Clean Energy Usage

Elon Musk Says Tesla Will Resume Accepting Bitcoin When Miners Confirm 50% Clean Energy Usage

Tesla CEO Elon Musk has announced that when there is “confirmation of reasonable (about 50%) clean energy usage by miners with positive future trend,” his electric car company will start accepting bitcoin for payments again.

Elon Musk Reveals When Tesla Will Resume Accepting Bitcoin

Tesla CEO Elon Musk talked about when Tesla will resume accepting bitcoin for payments Sunday. He wrote:

When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.

Tesla began accepting bitcoin for car payments in March. Musk confirmed at the time that any BTC received will not be converted into fiat currencies. This followed the company’s filing with the U.S. Securities and Exchange Commission (SEC) declaring that it had purchased bitcoin worth $1.5 billion. In April, its bitcoin stash was worth $2.5 billion.

However, Tesla suspended accepting bitcoin as a payment option in May, citing environmental issues. Musk then met with North American bitcoin miners to discuss using renewable energy in mining. The miners subsequently set up Bitcoin Mining Council. Nonetheless, Musk confirmed that Tesla did not sell any bitcoins due to environmental concerns.

The company did sell some coins during the first quarter of this year, however, before the mining issues surfaced. During Tesla’s Q1 2021 earnings announcement, Master of Coin Zachary Kirkhorn revealed that the company trimmed its BTC position by 10%. Musk explained at the time that the BTC sale was “essentially to prove liquidity of bitcoin as an alternative to holding cash on balance sheet.”

Musk’s Sunday tweet was in response to allegations cited in a Cointelegraph article. Sygnia CEO Magda Wierzycka alleged that the Tesla technoking had manipulated the bitcoin market and the SEC should investigate him. The South African billionaire believes that Musk knowingly pumped bitcoin with the announcement that Tesla was going to accept BTC and then “sold a big part of his exposure at the peak.”

However, Musk denied the allegations. “This is inaccurate,” he tweeted, reiterating his earlier explanation of why Tesla sold some bitcoins:

Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.

What do you think about Elon Musk’s comments on bitcoin and when Tesla will resume accepting the cryptocurrency for payments? Let us know in the comments section below.

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Silk Road Founder Ross Ulbricht Speaks Publicly for the First Time Since 2013

Silk Road Founder Ross Ulbricht Speaks Publicly for the First Time Since 2013

At the Bitcoin 2021 conference in Miami, attendees listened to the first phone interview with the Silk Road’s Ross Ulbricht from the depths of the maximum-security prison in Tucson, Arizona. During the interview, Ulbricht spoke about bitcoin and how the decentralized crypto asset is “transforming the global economy.” Following the phone call, Ulbricht was placed in the hole according to the official Free Ross Twitter account.

Ross Ulbricht Speaks About Bitcoin in His First Interview from Prison

Ross Ulbricht’s voice was heard by the attendees who went to the Bitcoin 2021 conference in Miami this year. The recent interview was recorded by Bitcoin Magazine and is the first recorded phone conversation with Ulbricht after his arrest. Ulbricht touched upon the loss of his freedom and noted that from his confinement he’s “spent the last eight years watching Bitcoin grow up from in here.”

During the phone call, Ulbricht noted that he was around during the Bitcoin network’s nascent days and at that time there were not many altcoins and forks. Ulbricht said with all that aside he looked at the crypto ecosystem as one big “family.” Through his lens in prison, Ulbricht detailed that he’s seen the cryptocurrency space invoke lots of innovation since his departure. Ulbricht stated:

I’ve seen incredible innovation. I’ve seen inspiring courage. We didn’t know how things would turn out for Bitcoin back in the beginning, but over the years, I’ve been continually impressed with what you’ve accomplished— We are transforming the global economy. We have brought a taste of freedom and equality to far corners of the world. I know we can transform criminal justice, too.

Ulbricht: ‘Bitcoin Is Strong. Bitcoin Is Powerful. Our Work Is Not Over’

Ross Ulbricht’s case has been called a “miscarriage of justice” and more than 250 organizations, eminent individuals and global leaders have shown support for Ulbricht. The creator of the Silk Road marketplace has one of the largest Change.org petitions in the U.S. as the petition has been signed by 433,845 individuals to date. The petition is seeking clemency for Ulbricht as his offenses were non-violent and his “investigation, trial and sentencing were rife with abuse.” Ulbricht spoke about the Silk Road during his phone call with Bitcoin Magazine and said:

I thought with Bitcoin, I could try and do something that actually makes a difference— Back then, I was impatient. I rushed ahead with my first idea, which was Silk Road… That’s a 26-year-old who thinks he has to save the world before someone beats him to it. I had no idea Silk Road would work, but now we all know it caught on. It was used to sell drugs, and now I’m in prison.

Ulbricht also said that it was ironic that he created the Silk Road because he wanted to further “freedom, privacy, [and] equality.” But what happened was he “wound up in a place where those things don’t exist.” Meanwhile, he sees a lot of potential with bitcoin and the crypto participants, in general, because he believes “Bitcoin is strong.”

“Bitcoin is powerful. We are powerful. And our work is not over,” Ulbricht stressed. Following the phone call interview, the Free Ross Twitter account detailed that Ulbricht was recently put in the hole. “Ross has been put in the SHU (aka ‘the hole’) after a recorded interview he did over the phone with [Bitcoin Magazine] was broadcasted at the [Bitcoin 2021 conference] this weekend. Please keep Ross in your thoughts & prayers,” the account tweeted on June 8.

What do you think about Ross Ulbricht’s recent phone interview and his reflections on the Silk Road and the Bitcoin network’s innovations? Let us know what you think about this subject in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Top 5 cryptocurrencies to watch this week: BTC, AAVE, KSM, ALGO, TFUEL

What can I do to prevent this in the future?

If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices.