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Study

China’s Bitcoin Mining Industry Could Derail Climate Targets: Researchers

As China’s bitcoin mining industry grows bigger, some researchers believe the electricity-gulping bitcoin mining may prevent China from achieving its climate goals.

This was made known in a recent study published in the Journal Nature by the researchers. 

Increasing Concerns Over Climate Security

The study reveals that China powers approximately 80% of the world trade in cryptocurrency.

Given the fact that Bitcoin operates on the blockchain, every transaction is encrypted by a network operated by miners, which use high electricity consumption in the process.

The miners use high-powered computers to validate transactions, which consumes huge electricity and may have implications on climate security.

However, the Journal Nature report shows that 40% of China’s Bitcoin is powered by coal. This is where the problem starts. 

Researchers believe that since most of these big coal plants emit carbon, they may have adverse effects on the climate’s health.

While China projects to overcome carbon emissions before 2030 and become carbon neutral by 2060, the researchers warned that the lofty objective might be impossible with rising Bitcoin mining activity.

Also, Nature Study projected that China’s Bitcoin mines might accumulate approximately 130.5m metric tons of carbon emission by 2024.

The study gathers that the availability of affordable electricity in China and access to hardware-enabled companies in China controls about 78.89% of the global bitcoin blockchain.

The activities of these companies involve mining coins, tracking and monitoring cryptocurrency transactions.

However, the co-author of the piece, Wang Shouyang, warned that continued Bitcoin mining activities could have grave consequences on the climate if left unchecked.

Way forward On China’s Crypto Mining Industry

Experts have recommended some alternative paths that the Chinese government could take in managing cryptocurrency mining and preserving its climate security policy.

In this regard, Shouyang advised the government to concentrate on upgrading the power grid to create a stable power supply from renewable energy sources.

He explained that renewable energy sources provide cleaner energy and are also cost-effective, adding that this will even motivate the miners to relocate from coal-powered regions to clean-energy regions.

According to a Cambridge University’s Bitcoin Electricity Consumption Index, it is envisaged that the crypto-mining industry will consume 0.06% of the globe’s electricity production.

However, experts enjoined the Chinese government not to raise carbon taxes as a form of deterrence. Instead, they should work in providing alternative solutions.

China imposed a blanket ban on cryptocurrency in 2019 but has allowed the cryptocurrency mining industry to continue.

China’s coal-rich regions are imposing stiffer measures on Bitcoin miners, given their policy in curbing emissions. For example, In April, the provincial government of Inner Mongolia has rolled out plans to outlaw cryptocurrency mining before the end of April.

China’s Bitcoin Mining Industry Could Derail Climate Targets: Researchers

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Astorya, Search Engine for Insurance and Banking Tech, Reviews 10 Years of Insurtech in Europe

Astorya.io, which aims to serve as the search engine for Insurance and Banking technologies, has published a blog post, titled InsurTech Europe: 10 Years Of InsurTech In Europe Analyzed Through 800+ Startups (based on data from astorya.io).

While discussing how InsurTech startups are gaining considerable ground across Europe, the blog post notes that insurance tech firms are “moving the lines in the insurance world.” This, according to the study performed by astorya.io for L’Argus. These startups have played a key role in the transformation of the sector which is expected to expand further.

As noted in the blog post:

“Unrecognized five years ago, InsurTech startups seem to have found their place in the insurance industry, despite pockets of resistance. A recent study by research firm Juniper thus underlines that globally they already account for 5% of the turnover of the entire market, a rate that is set to double over the next four years. But this groundswell covers distinct trends.”

The blog adds that the US and China have witnessed the rise of a relatively large number of online or digital insurance providers “oriented B to C (business to consumer), the size and regulation of local markets allowing it.” The post further notes that this may be “an approach that is less suited to Europe, even if Alan or Luko are showing [solid] growth.”

For example, Maif announced last year that it had managed to acquire 66,000 new clients “across all of its products.” Meanwhile, Luko, on home insurance alone, “won nearly 100,000” customers — according to Florian Graillot, founder astorya.vc, an InsurTech fund.

The post further noted that “beyond these exceptions, the world of European InsurTech has experienced certain structural and historical trends, which astorya.io (database on InsurTech and FinTech, created by the founders of astorya.vc) analyzes in a study for L’Argus.”

The Astorya team added:

“First observation: the European InsurTech ecosystem has entered a phase of maturity for two years, as shown by the significant decrease in the number of newcomers. And for good reason: in France, Alan, Luko and Shift Technology have monopolized new financing, as has pet insurance specialist Bought by Many in the UK, or even, in Germany, players such as Coya and WeFox. For several years now, these three countries alone have grouped together three-quarters of the continent’s InsurTech startups.”

The report pointed out that another key highlight is “the positioning of these newcomers in the insurance value chain.” It also mentions that in this regard, the astorya.io study emphasizes one important point: “the preponderance of these InsurTech startups in the individual insurance segment, mainly car and home, to a lesser extent health.”

The blog post added that P&C insurance products are “simple, therefore standardized, and have low margins … For traditional insurers, they are primarily starter products. ” It also noted that to gain a foothold, InsurTech startups must “rethink its distribution” — according to Florian Graillot.

The  blog post continued:

“Although there have been a number of failures in this segment, the founder of astorya.vc believes the market is far from saturated and new start-ups may appear: E-commerce is estimated to account for 30% of total commerce, almost 50% if outside of the food market. Where are we in insurance? Comparators represent 10% of the market … In short, if insurance follows other sectors of the economy, there is still plenty of room for these new digital native players.”

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eGirls in the C-Suite: The ‘simposium’ storming crypto venture capital

One of the toughest puzzles in crypto is figuring out what to take seriously. 

On Friday, the DeFi Alliance — a decentralized finance startup incubator and accelerator — announced a list of 11 new members. Some were predictable, such as oracle provider Chainlink and VC stalwart Blockchain Capital, but one name stood out in particular: eGirl Capital, the social media menace and upstart venture capital outfit inspired by a horned-up Internet subculture.

The announcement prompted an industry-wide heavy sigh and rubbing of the eyes:

eGirl members, such as Degen Spartan, are known just as much for their cogent analysis of crypto’s notoriously complex markets as they are for posting nothing but animated porn for weeks at a time. One member — perhaps one of the best and brightest on cryptoTwitter — dons the social medi persona of a Pokemon, Ditto, that has transformed into a couch so that people will unwittingly sit on them. The constellation of memetic touchstones animating these various comedic bits is too exhausting to summarize and likely worth an anthropological study. 

While it might be easy to pass the group off as a joke gone too far (by that standard the t-rex in Jurassic Park is a pet that got off-leash), eGirl has been included in some high-profile press releases of late. The group participated in a $4.9 million funding round for decentralized finance protocol Alchemix, and has also announced investments in Radicle and Unisocks. They’ll be releasing the first episode of a in-house podcast series next week.

As for their funding, in a question-and-answer document this reporter caught a glimpse of a figure prior to a committee decision to delete it and offer no comment in an effort to appear more “mysterious”; if accurate, it was staggeringly high.

Their arrival on the investment scene comes amid a period of professionalization and institutional adoption for crypto. Hedge funds that previously dismissed cryptocurrencies as a scam are now setting up trading desks. The assets are getting to be so boring that retirement funds are allocating money into digital currencies.

eGirl made it clear, however, that they’re willing (and perhaps eager) to lob a glitter bomb into the midst of the increasingly buttoned-up affair. As DAO and community growth specialist Pet3rpan put it:

“egirl/eboy aesthetic is a big fuck you to traditional ideals of culture of the last 10 years, we dont care that we aren’t cool.” 

Anon currency, anon VCs, anon projects

Traditional venture capital organizations bring varying degrees of utility to a project besides money. Delphi Digital, for instance, can actively contribute to the architecting and engineering of the tokenomics and contracts of a protocol. Many offer public relations expertise and can attract significant publicity. 

So why would anyone work with an organization overwhelmingly peopled with anons? And, likewise, what do the anons think they can bring to the table?

“Crypto was started by an anonymous founder with strong pseudonymity built into the heart of the bitcoin protocol and all those who followed it. Bitcoin is stronger for it too,” said Eva Beylin, one of eGirl’s few ‘doxxed’ members and the director of The Graph Foundation. “[…] While egirl has invested in a wide range of anon and non-anon projects, anon funds funding anon teams can reverse this trend and bring back the privacy preserving qualities we all value deep down in our heart of hearts.”

eGirl member Scoopy Trooples, who is also a core team member for eGirl portfolio protocol Alchemix, noted that eGirl’s involvement was key in helping to generate ideas and refine the project’s wider vision. In a Tweet, they also thanked eGirl for bootstrapping liquidity, fostering insider connections, and promoting the project:

These benefits are derived in part from the wide range of backgrounds the various eGirls represent, and in part from the familiarity all members have with the ecosystem.

“eGirl is committed to supporting decentralized primitives for dapps and DeFi. We’re frequent users and contributors so we know first-hand what brings value to users and the community. Also, memes and anime.”

In some ways, their emergence feels inevitable: if traditional VCs are increasingly comfortable investing in anon teams and DAOs, why wouldn’t the VCs eventually go anon themselves?

“eGirl capital is merely the resultant product of a world where traditional limits and restrictions are finally being broken through,” said Twitter trader and personality loomdart. “We are reverting to a system with less hand rails, and while this may seem scary it lets true talent stand out, unhindered by historical ties.”

He followed this quote up shortly after with a message bemoaning it for sounding too much like a “battle cry from the war of the roses.” It was obvious, however, that he meant it.

eQueens

While eGirl may be the first popular example of an all-anon crypto VC, it won’t be the last. Given how they’re comparatively long in the tooth, the group offered some advice for enterprising frog avatars looking to form their own investment organizations, including members holding each other accountable with clearly-defined roles and taking time to develop sophisticated, high-conviction investment theses. 

“The nature of an anon decentralized collective is naturally to be very adhoc about things. While this may work in the early days, establishing norms and organizational structure to the collective will help the group to coordinate and persist,” they said.

The irony, of course, is that eGirl itself remains self-evidently ad hoc. When this reporter asked if it would be appropriate to refer to a member as a “partner at eGirl Capital,” the question set off a brief flurry of debate about whether “partner” entails legal connotations and if the word implied a formal hierarchy. Different members even offered contradictory answers as to whether or not the group can be considered a VC in the traditional sense:

“eGirl isn’t a VC, we’re simps. We’re a grassroots group of contributors that support projects with strong teams and visions. eGirl includes engineers, business leaders, product managers, meme creators, technical analysts and investors,” they said.

So what happens when the group finally decides what, exactly, it is? When the joke goes as far as it can, propelling the eGirls — whether in spite of or due to the anime, anonymity, and bad puns — into the same lofty echelons of success as the Alamedas and the Delphis of the world?

They offered a simple vision:

“First she is an eGirl, then she becomes an eWoman and later an eQueen.”

eGirls in the C-Suite: The ‘simposium’ storming crypto venture capital

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Price analysis 3/19: BTC, ETH, BNB, ADA, DOT, XRP, UNI, LTC, LINK, BCH

A report by Deutsche Bank Research said that Bitcoin (BTC) has become “too important to ignore” and may attract regulation by the end of 2021. Deutsche Bank analysts expect Bitcoin to reach a turning point in about “two or three years” when it will be clear whether Bitcoin will evolve into an asset class or not. In the short term, the report forecast Bitcoin to “remain ultra volatile.”

A different report by Bank of America provided some insight into the possible reasons for Bitcoin’s volatility. Bank of America analysts estimated that Bitcoin price may rise by one percent when there is a $93 million inflow. Compared to that, gold needs about $2 billion worth of funds to move it by a single percentage point.

This large disparity in the price reaction to the inflow of funds is attributed to Bitcoin holders who have not parted with their coins during the current bull run.

Daily cryptocurrency market performance. Source: Coin360

While it is difficult to predict at what price the Bitcoin whales will book profits on their holdings, Kraken growth lead Dan Held said in a recent interview with Cointelegraph that Bitcoin could reach $1 million during the current supercycle.

Held believes that the confluence of events such as the coronavirus crisis, money printing by central banks and the rising lack of trust in legacy financial firms are the triggers supporting the crypto bull run.

Let’s study the charts of the top-10 cryptocurrencies to determine whether the uptrend will resume or is the bull run showing signs of exhaustion?

BTC/USD

Bitcoin rebounded off the 20-day exponential moving average ($54,844) on March 17 and rose above the $58,341.03 overhead resistance. But the advance to $60,102.15 witnessed profit-booking on March 18.

BTC/USDT daily chart. Source: TradingView

However, the positive sign is that the bulls purchased the dip and have again pushed the price above $58,341.03. A rise above $60,102.15 could retest the all-time high at $61,825.84.

The upsloping moving averages and the relative strength index (RSI) in the positive zone suggest the path of least resistance is to the upside. A break above $61,825.84 could start the next leg of the uptrend to $72,112.

Although the RSI is showing negative divergence, traders should follow the price action closely because a sharp rally from the current levels may invalidate this bearish development.

If the price turns down and breaks below the 20-day EMA, it will be the first sign of weakness. A deeper correction could be signaled if the bears sink and sustain the BTC/USD pair below the 50-day simple moving average ($48,578).

ETH/USD

Ether (ETH) has been trading just above the 20-day EMA ($1,756) for the past three days. This is a positive sign as it shows that the bulls are accumulating on dips to the 20-day EMA.

ETH/USDT daily chart. Source: TradingView

If the bulls can propel the price above $1,850, the ETH/USD pair could rise to $1,942.92 and then challenge the all-time high at $2,040.77. A breakout and close above this resistance could start the journey to $2,614.

The moving averages are sloping up and the RSI is in the positive territory, suggesting the bulls have a slight edge.

However, this positive assumption will be negated if the price turns down and breaks below the moving averages. Such a move could pull the price down to $1,289 and keep the pair range-bound for a few more days.

BNB/USD

Binance Coin (BNB) has successfully held the 20-day EMA ($251) for the past four days but the bulls are struggling to push the price above $280 and challenge the overhead resistance at $309.50.

BNB/USDT daily chart. Source: TradingView

However, the 20-day EMA is sloping up gradually and the RSI is in the positive zone, which shows a minor advantage to the bulls. A breakout and close above $309.50 will complete a bullish ascending triangle pattern. This setup has a target objective at $429.

On the contrary, if the price turns down from the current level and breaks below the trendline of the triangle, it will suggest the bears have overpowered the bulls. That could result in a drop to $189.

ADA/USD

Cardano (ADA) turned down from the all-time high at $1.48 on March 18 as traders booked profits. However, the positive sign is that the bulls are attempting to defend the breakout level at $1.23.

ADA/USDT daily chart. Source: TradingView

A strong bounce off the current level could increase the possibility of a break above the all-time high. The next target objective on the upside is $2.

The rising moving averages suggest the bulls are in command, but the negative divergence on the RSI shows the momentum is weakening.

If the bears can pull the price below the 20-day EMA ($1.14), it will indicate that supply exceeds demand. The trend may turn in favor of the bears if the ADA/USD pair plummets below the 50-day SMA ($0.94).

DOT/USD

Polkadot (DOT) has been sustaining above the 20-day EMA ($35) for the past two days, which is a positive sign. The bulls are currently trying to push the price above the resistance line of the symmetrical triangle.

DOT/USDT daily chart. Source: TradingView

If they succeed, it could resume the uptrend. The bulls may face stiff resistance at the all-time high at $42.28 but if they can thrust the price above it, the DOT/USD pair could rise to the pattern target at $55.

The 20-day EMA is moving up gradually and the RSI has risen above the downtrend line, which shows the bulls are attempting to gain the upper hand. This view will invalidate if the pair turns down and breaks below the support line of the triangle.

XRP/USD

XRP has been trading in a tight range for the past few days as the bears are defending the overhead resistance at $0.50 and the bulls are buying on dips to $0.42. The flat moving averages and the RSI just above 52 suggest a balance between supply and demand.

XRP/USDT daily chart. Source: TradingView

Usually, a tight range trading is followed by a trending move. In this case, if the bulls can propel the price above $0.50, the XRP/USD pair could rally to $0.65 where it is again likely to counter stiff resistance from the bears.

Alternatively, if the bears sink the price below $0.42, the pair could drop to $0.36. This is a critical support to watch out for because a break below it could intensify selling and clear the path for a slide to $0.25.

UNI/USD

Uniswap (UNI) is in an uptrend and it has been holding above the 20-day EMA ($29.41) for the past few days, which shows the bulls are buying the dips to this support. If the bulls can push the price above $32, a retest of the all-time high at $34.92 is possible.

UNI/USDT daily chart. Source: TradingView

A breakout and close above the all-time high could start the next leg of the uptrend that may reach $46. The upsloping moving averages suggest that bulls are in control but the negative divergence on the RSI warrants caution.

If the bears sink and sustain the price below the 20-day EMA, it could signal the start of a deeper correction. The first stop could be the 50-day SMA ($24.78) and if this support also cracks, the decline may extend to $22.

LTC/USD

The bulls are attempting to keep Litecoin (LTC) above the 20-day EMA ($199.41). If they succeed, the altcoin could move up to the resistance line of the symmetrical triangle where the bears are likely to mount a stiff resistance.

LTC/USDT daily chart. Source: TradingView

However, if the bulls manage to propel the price above the triangle, it will suggest a resumption of the next leg of the uptrend. The first stop could be $246.96 and if this level is crossed, the LTC/USD pair could rally to $300.

The gradually upsloping moving averages and the RSI in the positive zone indicate a minor advantage to the bulls. This positive view will invalidate if the price turns down and breaks below the triangle.

LINK/USD

Chainlink (LINK) once again turned down from the overhead resistance on March 18, which shows the bears are defending this level. However, the positive sign is that the bulls did not allow the price to dip below the 50-day SMA ($28.38), indicating buying at lower levels.

LINK/USDT daily chart. Source: TradingView

The LINK/USD pair has formed an ascending triangle pattern that will complete on a breakout and close above $32. This setup has a target objective at $43.20.

Contrary to this assumption, if the price turns down from the current level or the overhead resistance and breaks below the trendline of the triangle, it will invalidate the bullish setup. That could result in a drop to $24 and then to $20.11.

Array

The bulls and the bears are battling it out to gain the upper hand in Bitcoin Cash (BCH). Although the price had dipped below the moving averages for the past four days, the bears could not capitalize on the situation. This suggests selling dries up at lower levels.

BCH/USD daily chart. Source: TradingView

The flat moving averages and the RSI just above the midpoint suggest the BCH/USD pair could remain range-bound for a few more days.

If the consolidation resolves to the downside and the price closes below $500, the pair could start a deeper correction to $440 and then to $320.

Conversely, if the bulls push and sustain the price above $560, the pair may again try to rally to $631.71 and then $745.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Price analysis 3/19: BTC, ETH, BNB, ADA, DOT, XRP, UNI, LTC, LINK, BCH

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Asian Banks Collaborate on Cross-Border CBDC Project

Global regulators continue to work on strategies in a bid to regulate their prospective crypto markets. One topic that continues to pop up even in regions that are averse to cryptos is CBDCs. In Asia, some major banks are planning to join hands to launch a pilot on the blockchain.

Apex Banks Look To Control Crypto Rise

Financial regulators from four Asian economies have announced that they intend to create cross-border central bank digital currencies (CBDCs) in the coming years.

The project rightly named the Multiple Central Bank Digital Currency (m-CBDC) is an ongoing partnership between four major Asian countries. The project aims to resolve challenges like the traditional cross-border payments system’s inefficiencies, high transaction cost, and complex regulatory guidelines. The body of regulators hopes to attract more apex banks to join in the study of blockchain technology.

The m-CBDC sees the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the United Arab Emirates, and the Digital Currency Initiative of the People’s Republic of China collaborate to develop a prototype leveraging blockchain technology.

The m-CBDC project builds upon the Inthanon-LionRock project set up in 2019 to facilitate cross-border payments. The new efforts will see the Asian nations further explore the potential of DLT by developing a proof-of-concept (PoC) prototype. The bridge project will also look to investigate “business use cases in a cross-border context using both domestic and foreign currencies.”

Pilot Tests Are Underway On CBDC

As Bitcoin prices rose up to $50K, global capital markets are seeing an outflow of funds into the crypto markets. Financial regulators are left in dire straits as digital assets continue to court attention and generate juicy returns for investors despite their associated risks.

In response, many countries have been on the march to create a digital version of their fiat currencies. Pilot programs launched in China and some parts of Europe have seen significant progress in this field. Although CBDCs do not address the inflationary question, world governments see it as a way to put a cap on cryptocurrencies’ rise.

While several developed countries are making progress, the world’s largest economy, the United States of America, has continued to drag its feet on the CBDC question. Although regulatory agencies like the Securities and Exchange Commission (SECC) and Commodity Futures Trading Commission (CFTC) have been doing their bit marshaling the crypto space, no official announcement has been made concerning a CBDC program.

Asian Banks Collaborate on Cross-Border CBDC Project

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