In today’s bitcoin and cryptocurrency news, read about the Ethereum blockchain’s scary sounding Merge is about to take place, putting an end to years of wasteful GPU mining. Meanwhile, the White House has stated that it wants federal departments and states to increase the environmental friendliness of cryptocurrency mining or the US should ban it. On the other hand, economic secretary, United Kingdom’s Treasury, stated that the country’s government aims to make the country a global hub for cryptocurrency technologies. Finally, Crypto traders love to “ape” and make “degen” investments using high leverage in futures markets, but most traders fall victim to these three key mistakes.
It’s Only a Matter of Time Before the Second Largest Cryptocurrency Stops Requiring GPU Mining
Original Source: The second largest cryptocurrency will ditch GPU mining in a matter of weeks, if not days
The ethereum blockchain’s scary-sounding Merge will stop GPU mining. No going back now that the hard fork has begun.
The Merge is a long-awaited event for the Ethereum blockchain, one of the most popular cryptocurrencies for GPU mining. It’s why you couldn’t buy a graphics card for 18 months. You may argue that, but it’s unjust to blame just one blockchain. Also, there were shortages.
GPU mining rose and fell with ethereum’s profitability, but that’s ending. Bellatrix, a hard fork in the ethereum blockchain, will halt the proof-of-work algorithm and blockchain mining (hopefully) forever.
Proof-of-stake follows (PoS). It’s a new technique to verify and operate the blockchain using consensus from network stakeholders. Those that hold a lot of ether (the ethereum network’s coin) will validate each transaction, rather than employing a GPU or miner to solve difficult arithmetic calculations.
Proof-of-stake follows (PoS). It’s a new technique to verify and operate the blockchain using consensus from network stakeholders. Those that hold a lot of ether (the ethereum network’s coin) will validate each transaction, rather than employing a GPU or miner to solve difficult arithmetic calculations.
Ether’s value has risen in response to news of the Merge, while most cryptocurrencies are down this year. That’s more about the market as a whole and bitcoin, the most valuable significant coin at over $19,000.
Bitcoin uses a PoW algorithm and custom-built ASICs to mine. Ethereum was designed to be ASIC-resistant, therefore miners preferred gaming GPUs for affordability and performance. Bitcoin won’t turn green soon.
GPU miners will turn elsewhere post-Merge. Perhaps that means mining another coin that still rewards farms of graphics cards, or it may be that along with the great crypto value fall of 2022, some opt to leave the business. Some may fork ethereum. Mining-related! None! And robot cowboys! Regardless. This ethereum chapter is over.
As the second-largest coin moves away from mining, we may see more second-hand GPUs that have been mined to bits. Be mindful when buying a second-hand card today. Since the Merge has been planned for a while, I imagine most have alternative money-making schemes.
Bitcoin Mining Needs to Be More Environmentally Friendly or the US Should Outlaw It
Original Source: White House: Bitcoin Mining Must Be Greener—Or US Should Ban It
The White House said lawmakers and regulators could soon crack down on bitcoin mining due to its carbon footprint.
The White House Office of Science and Technology Policy said in a study Thursday that crypto miners should reduce greenhouse gas emissions with cooperation from the EPA, DOE, and other federal agencies.
It urged the government collect more power usage data from industry, increase energy efficiency requirements, and promote the “application of ecologically responsible crypto-asset technologies.”
The White House said that if greener mining methods fail, energy-intensive crypto mining, like Bitcoin, could be banned.
“If these steps prove ineffective at reducing impacts, the Administration should pursue executive actions, and Congress should propose legislation, to limit or ban the use of high energy intensity consensus techniques for crypto-asset mining,” the paper added.
Bitcoin mining requires a lot of computer power to validate blocks of transactions to blockchains, hence it’s commonly done on an industrial scale.
The U.S. is a Bitcoin hotspot. After China pushed down on the industry, mining operations migrated to North America: the U.S. share in worldwide Bitcoin mining rose from 3.5 percent in 2020 to 38 percent now.
This might hurt U.S. “climate goals and pledges,” the research stated.
President Biden signed an executive order in March to regulate the crypto business, including mining.
The paper also underlined the distinction between proof-of-work and proof-of-stake blockchains and Ethereum’s long-awaited update, “the merge.”
Ethereum, the second largest cryptocurrency by market size, will switch to proof of stake next week, making it 99% more energy efficient, says the Ethereum Foundation.
“Calls are mounting for [proof-of-work] blockchains to adopt less energy-intensive consensus mechanisms,” it stated. “The biggest reaction has been Ethereum’s projected rollout of ‘Ethereum 2.0,’ which employs proof-of-stake.”
After Ethereum’s upgrade, several experts, like Kraken’s head of growth marketing Dan Held, say Bitcoin’s high energy usage will be more noticeable.
The Economic Secretary of the United Kingdom Wants to Establish His Nation as a Center for Cryptocurrencies Worldwide
Original Source: United Kingdom’s economic secretary aims to make the country a global cryptocurrency hub
Richard Fuller, UK Treasury’s economic secretary, said the country intends to be a global centre for cryptocurrency innovations.
According to Cointelegraph, Fuller supported the use of cryptocurrencies and blockchain technology in customs, international trade, and medical record keeping. Alexander Stafford, a parliamentary private secretary, said Prime Minister Liz Truss has confirmed her intention to allow UK people to buy and sell cryptocurrencies online.
As crypto technologies grow in importance, the UK seeks a competitive advantage, Fuller added.
Fuller said that under Truss’ leadership, the government plans to go through with the Financial Services and Markets Bill to establish a stablecoin regulatory framework. He also supported the Economic Crime Act, which would allow law enforcement to seize bitcoin holdings.
“The UK can watch while this technology transforms life, or we can start and scale crypto technologies.” We want the UK to be the worldwide centre for crypto technology, therefore we’ll build on our fintech sector’s strengths to create new employment and products, Fuller said.
Cointelegraph was created in 2013 and covers blockchain technology, cryptocurrency assets, and fintech trends. Their team delivers news from the decentralized and centralised worlds, including news, analytics, cryptocurrency price charts, opinion articles, and stories on digital currency’s evolution.
Three Crucial Errors to Evade When Trading Bitcoin Futures Markets
Original Source: 3 major mistakes to avoid when trading cryptocurrency futures markets
Many traders have misconceptions about trading bitcoin futures, especially on non-traditional derivatives platforms. Futures market price decoupling, fees, and liquidation impact are frequent blunders.
Let’s look at three crypto futures trading blunders and myths.
Pricing and trading derivatives varies from spot trading.
Retail traders and seasoned fund managers utilize futures to leverage crypto positions.
Futures contracts and other derivatives are used to decrease risk or expand exposure, not for degenerate gambling.
Crypto derivatives contracts have price and trading disparities. Traders entering futures markets should consider these differences. Even derivatives investors from traditional assets make mistakes, therefore it’s crucial to grasp the idiosyncrasies before applying leverage.
Even though they advertise USD quotes, most crypto trading services don’t use dollars. This is a significant untold secret and one of the dangers derivatives traders confront when trading and researching futures markets.
Clients don’t know if contracts are priced in stablecoin due to a lack of transparency. This shouldn’t be a huge worry, as centralized exchanges always have intermediate risk.
Sometimes discounted futures surprise.
Ether (ETH) futures that mature on Dec. 30 are selling for $22 or 1.3% below spot prices on Coinbase and Kraken. The distinction is the possibility of Ethereum merge fork currencies. Buyers of derivatives contracts won’t get free Ether currency.
Airdrops can create lower futures prices since derivatives contract holders won’t receive the prize, but that’s not the only reason for decoupling since each exchange has its own pricing system and hazards. Polkadot quarterly futures on Binance and OKX are trading below the spot price.
May-August futures contracts traded at a 1.5%-4% discount. Backwardation shows absence of leverage buyer demand. Polkadot rose 40% from July 26 to August 12, suggesting external causes are at play.
Futures contract prices have decoupled from spot exchanges, so quarterly traders must revise their targets and entry levels.
Consider higher prices and decoupling.
Futures contracts allow you to trade larger sums than your initial deposit (collateral or margin).
Consider an investor who deposits $100 and buys $2,000 in Bitcoin (BTC) futures using 20x leverage.
Derivatives trading fees are normally lower than spot marks, but a hypothetical 0.05% fee applies to the $2,000 deal. One entry and exit costs $4, or 4% of the initial amount. A small cost like that adds up as turnover rises.
Even if traders understand the risks and benefits of futures, an unknown element tends to emerge in unpredictable markets. Liquidations decouple derivatives from spot exchanges.
When a trader’s collateral is insufficient, the derivatives exchange closes the position. This liquidation process may produce significant price movement and index decoupling.
Uninformed investors may respond to derivatives price swings, which won’t trigger more liquidations. In order to calculate the reference index price, derivatives exchanges use external pricing sources, mainly spot markets.
All traders should evaluate these specific processes before utilizing leverage. Futures trading could consider decoupling, increased costs, and liquidation.
Summary of today’s Bitcoin and Cryptocurrency news
After all, the second-largest cryptocurrency shifting away from mining, however, may result in a surge in the availability of used GPUs that have been mined to extinction; this is something to be aware of with any used card buy today.
Furthermore, when Ethereum’s upgrade is finished, according to certain experts, such as well-known Bitcoiner and head of growth marketing at Kraken Dan Held, Bitcoin’s excessive energy consumption will come under more scrutiny.
Meanwhile, fuller said, “The UK can watch while this technology transforms life, or we can start and scale crypto technologies.” We want the UK to be the worldwide centre for crypto technology. Therefore, we’ll build on our fintech sector’s strengths to create new employment and products.
Finally, there is nothing wrong with unique processes, but all traders should consider their impact before using leverage. Price decoupling, higher fees and liquidation impact should be analyzed when trading in futures markets.
