Bitcoin Tops 159 Individual Countries in Energy Consumption at $2 Billion Per Year

According to data consultant Alex de Vries and his Bitcoin Energy Consumption Index, the process of transacting with and mining the digital currency translates to huge real-world energy consumption. So much so that verifying Bitcoin transactions tops 159 individual countries in energy consumption. In total, the whole Bitcoin network spends almost $2 billion per year mining.

As a refresher: Every Bitcoin transaction must be verified by a key group of users called miners. Using specialized computers paired with high-performance graphics cards, miners “assemble” the transaction records into groups known as blocks. They then compete to get their block added to the chain of record. About every ten minutes, one block is randomly selected, winning that miner (or group of miners) a prize of new Bitcoin.

As for the numbers: The creation of a single bitcoin requires about 50,000 kilowatt-hours. In the U.S., the average residential rate is about 10 to 12 cents per kilowatt-hour. In China, electric costs are slightly less expensive, being about 4 to 5 cents per kilowatt-hour. It’s something that many users are removed from: The electric bills end up with the miners, so users never see how much energy the system consumes.

That said, on one hand, the high carbon cost is partly intentional. “The energy costs are part of the reason why Bitcoin is so secure,” de Vries explains, “because if [someone] wants to attack the system, they would need the machines and would have to spend a huge amount of money to pay for all the electricity to simply take control of the network.” So, in essence, it’s really part of what makes Bitcoin secure.

It’s worth noting, too, that this huge energy consumption will cease to be a problem when all Bitcoin have been mined. The coin started with a block reward of 50 bitcoins — so everyone who participated in the creation a new block for the blockchain received 50 Bitcoin (split between them). But now, that reward is just 12.5 Bitcoin per block, already halving twice — as it does and will continue to do every four years. Down the line, then, in a few decades, all Bitcoin will be mined and there will be no more block reward.

This might lower overall energy costs, simply because as the reward goes down, so will the amount miners spend on electricity. But unfortunately, that’s not only a long time away, it’s only part of the picture. Transaction fees also contribute to consumption. “The whole idea is that those transaction fees, which are also claimed by the miners, will end up supporting the Bitcoin infrastructure,” de Vries explains.

As for the future of cryptocurrencies, de Vries doesn’t see them replacing government-issued currencies. But he does think there will “always be a niche for Bitcoin.” Just a niche? Perhaps de Vries feels this way because he is content the way things are: “I have no problem with my bank. I trust my bank. I’m fine with them doing my financial transactions, so I don’t really need Bitcoin.”


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Last summer, 24-year-old Kingsley Advani set his sights on becoming a cryptocurrency king after seeing the once-in-a-lifetime returns the coins were bringing in. Inspired, Advani invested everything he had, $34,000, in cryptocurrencies like Bitcoin and startups working on related technologies. In six months, he watched his net worth balloon to seven figures.

At a time when many people his age are trying to climb the ranks at their given employers, Advani has carved out his own prospects: Now working as an advisor to cryptocurrency startups. He travels between London, New York, and San Francisco, meeting with industry leaders and scouting startups working on what may be the next big application of blockchain technology.

“I think at no point in human history have people in their twenties had such an opportunity to invest in such high-growth assets,” Advani told Business Insider in an interview.

Created in 2008, Bitcoin is a payment system that allows people to make purchases and send money with anonymity. There are no banks or middlemen, and transactions are recorded on a digital ledger called a blockchain, which stores the information with full transparency. It was the blockchain that first drew Advani to cryptocurrencies. In 2012, after a friend had introduced him to Bitcoin, he began to see the potential of the technology.

“It’s like a rebellion to traditional finance,” Advani said. He believes its creation in 2008 — at the height of the worst financial crisis since the Great Depression — was no coincidence. “You don’t need centralized banks to send money, you have these great pieces of tech send money for you through cryptography. So unlike banks, it’s faster, cheaper, and more secure,” he said.

Advani started reading white papers on cryptocurrencies and watching the market more closely last summer. He decided he would not miss a second chance to take part. He invested all of his savings and part of his income from his job as a data scientist at a small software company. “Every month I was waiting for that paycheck and I put it straight in,” he said.

So far, his gamble has paid off. When Advani invested in Bitcoin, it was worth about $4,000 per coin: As of this February, the cryptocurrency has more than doubled in value. At its peak, Advani’s investment had grown to low seven figures, though it fluctuates with the swing of the market. Advani invests mostly in startups spun out of top universities, like Stanford, Cornell, and Massachusetts Institute of Technology, that are working on high-speed blockchain technology.

Key Highlights

  • Cardano dropped 10.52% on Sunday morning to trade at $0.4386, as the majority of cryptocurrencies managed to hold on to intraday gains by the close. 
  • Cardano finished the previous week on a downward trajectory, recovering from the previous week’s closing $0.418.
  • There was a strong resistance at $0.52 levels through the previous week, which held Cardano back from testing $0.56 resistance levels.
  • Cardano tested the $0.30 and bounced back following to hit the $0.52. Currently, Cardano trades inside the range.

Cardano Price Resistance

Following a weekly closing at $0.413, Cardano managed to avoid testing support levels through the day, with a move through to $0.488 levels allowing Cardano to partially recover the lost ground from the week.

Cardano managed to move above the 50.0% Fib retracement level of the last drop from $0.5207 high to $0.2973 low, though there was plenty of resistance through the day, with the pair failing to test to hold above 78.6% $0.47 through the day.

The chart below shows how the Cardano continues to trade in a bearish sentiment along with other cryptocurrencies although, for the day, Cardano managed to stay in a positive territory with the pair up 6.54% to $0.474 at the time of writing.

ADA-1H-Chart
ADA-1H-Chart

With Cardano having fallen through the first support level of $0.435, the next major support level sits at $0.409, with today’s first resistance level of $0.473 some way off and unlikely to be tested through the day, barring a retracement back through the Fib 78.6% retracement level through the middle part of the day.

While the general sentiment towards the cryptocurrencies remains negative and Bitcoin is trading below $10,000, ranges are likely to continue moving lower, as the markets fret over what lies ahead from a regulatory standpoint, with the SEC now looking to move ahead and introduce regulations in order to reign in fraudulent activity that has hit the market through the start of the year.

Technical Indicators

Major Support Level: $0.409

Major Resistance Level: $0.435

Fib 50.% Retracement Level: $0.4094

Fib 38% Retracement Level: $0.3829

Fib 62% Retracement Level: $0.435

 

XinFin opens token sale of it’s utility tokens, unveils the first of it’s kind hybrid blockchain XDC protocol

 

Singapore based XinFin unveiled the first of its kind Hybrid Blockchain protocol architecture for enterprise adoption for global trade and finance market, opens sale of it’s utility tokens.

(For Immediate Release) XinFin unveiled its Hybrid Blockchain network, powered by the XDC protocol. The XDC protocol enables real world enterprises to work with Blockchain and digital assets ecosystem with a network architecture that combines best features of public blockchains and private networks. The XDC protocol has been architected to make it compliant with laws of the land and can work purely as a messaging layer for existing and approved payment mechanisms in any country.

The ERC20 utility token XDCE is hosted on decentralised ethereum Ecosystem and will let global enterprises work with XDC Protocol. The XDCE utility tokens are now available through it’s public ICO. The utility tokens will help get access to the XDC protocol and its subnetworks by hosting XDC masternodes.

XinFin raised over USD 1.5 million in a private sale in July-August 2017 and utilized the funds to build it’s XDC hybrid blockchain protocol and the tradefinex.org app meant for bridging the global infrastructure deficit. Over  a half a dozen PoCs have been completed on the XinFin network and the proceeds from current round of token sale will be used to extend the PoCs into sizeable pilot projects with enterprises and institutions around the world. The funds will also be utilized for ecosystem development and masternodes proliferation of the XinFin network amongst institutions.

“The major hurdles for mainstream adoption of Blockchain ecosystem is the power intensive mining process, highly congested trust less networks, security and scalability. The XDC protocol is designed considering real world applications in global trade and finance. It has also been designed to make sure the enterprises that work with XDC protocol can work with full regulatory compliance.” Said Alex Mathbeck, head of marketing at XinFin.

“XinFin has architected its hybrid network from a fork of Quorum. The network consensus is two tiered. Along with a PBFT derived consensus mechanism between nodes, XinFin has implemented a stake based rule set that governs node participation.

The network maintains a private state and a public state. Private state ensures that the sensitive financial data is secure yet at the same time its public state makes it transparent and verifiable. The architecture makes the XDC protocol secure, scalable and lightning fast. Its Hybrid nature also makes it highly interoperable with legacy systems and other Blockchain platforms. XinFin network is highly compatible with the Ethereum network and its smart contracts while the underlying fuel is very cost efficient making transactions costs negligible. IoT layer over the XDC protocol allows real time state change to the Blockchain. The XDC protocol will support utility tokens in compliant jurisdictions to run on the XDC protocol.” Said Karan Bharadwaj, CTO of XinFin.

“The various tiers of XinFin master nodes makes it flexible for participants to work with the XDC protocol in a secure environment. The XDC can act as a pure messaging and confirmation layer using existing payment rails or as a settlement layer through approved and regulated institutions.” added Mr. Alex Mathbeck.

Tradefinex.org is the first of the distributed app launched in beta environment that uses the XDC protocol. TradeFinex is a smart contracts User Interface for global trade and finance using XDC Protocol. Tradefinex application is aimed at helping enterprises and policy makers to minimize inefficiencies in the $27 trillion annual infrastructure and international trade market. TradeFinex platform was inaugurated at the 2nd Global Summit on P2P Digital Asset System Summit held in India and is being extended to leading trade associations, financial institutions and regulators worldwide.

XinFin network has initiated onboarding of global alliances and developer communities to build disruptive Apps on XDC protocol to improve business process efficiency.

Kim Dong-yeon, the Finance Minister of South Korea, firmly stated that cryptocurrencies as incentive systems are necessary for public blockchain networks to operate.

“Blockchain technology can disrupt and revolutionize the world. But, for open-source blockchain networks, cryptocurrencies are necessary as incentives for individuals to participate in the network.”

Yeon’s statement was released this week, following the official decision of the government to not ban cryptocurrency trading both in the short and long-term. During a government hearing held on February 1, Yeon further emphasized his stance on cryptocurrencies, when he stated that the South Korean Finance Ministry has no intentions to eliminate cryptocurrencies or strictly restrict them to the point in which cryptocurrencies can no longer be used in the local market.

“The Finance Ministry has no plans or intentions to eliminate or prohibit cryptocurrencies. Blockchain technology is an important technological breakthrough to fuel the fourth industrial revolution and as such, the ministry will take a cautious approach in regulating the cryptocurrency market. For negative use cases of cryptocurrencies, the ministry will impose strict regulations,” added Yeon.

Previously, several government officials and self-proclaimed influential economists in South Korea claimed that blockchain networks can function without cryptocurrencies, and that cryptocurrencies like bitcoin and Ethereum are not necessary. Yoo Shi-min, a popular author and former government official, criticized bitcoin as a gambling tool, stating that the blockchain is a disruptive technology but cryptocurrencies are not.

Jang Jae-seung, a professor at Korea Advanced Institute of Science and Technology (KAIST), the most prestigious technology-focused university in the country, directly refuted the claim of Yoo, noting that without cryptocurrencies serving as incentive systems, public blockchain networks cannot function. Centralized blockchains are not an option as they lack strong security measures, transparency, and most importantly, decentralization.

Minister Kim echoed a similar sentiment to professor Jang, as he explained that mining is a necessary and a crucial system of open-source and public blockchain networks. Without incentives, individuals do not have the motive to contribute to the network and inevitably, the public blockchain will disintegrate.

“It doesn’t apply for centralized or permissioned blockchains but for public blockchain networks, mining is necessary to create blocks and provide incentive to individuals within the network,” said Kim.

Although the South Korean government and the Blue House, the executive office of President Moon Jae-in, reaffirmed on several occasions that the government will not ban cryptocurrency trading, the statement of Finance Minister Kim strongly reasserted the South Korean government’s intention to regulate and foster the market, to protect investors and help businesses grow.

Cryptocurrency exchanges remain optimistic in the long-term growth of the market and their enthusiasm is demonstrated in the entrance of new cryptocurrency trading platforms into the market. Huobi, formerly the largest cryptocurrency exchange in China, has already obtained 150,000 users on its waiting list and it plans to launch its exchange in the first quarter of 2018.

Football does not get a greater stage than La Liga, Spain’s best of the best. Attracting footballing legends from across the globe La Liga is home to some of the best teams on the planet. One such team, RCD Espanyol, has announced its new sponsor, blockchain sports financing company SportyCo.

Barcelona’s RCD Espanyol is one of the top teams in the division, they are proud to announce a partnership with SportyCo. The team will have the opportunity to promote SportyCo to a global audience. The company provides a blockchain based financing platform as a solution for athletes and investors alike. By disrupting the existing model SportyCo aims to democratize and decentralize sports investment in order to achieve greater athletic success.

RCD Espanyol will proudly wear the SportyCo logo on their jerseys and shorts, promoting the project among their supporters at their stadium during the games. In addition to this several hundreds of millions of football fans following La Liga matches on their TVs all over the world will be made aware of SportyCo and its unique approach to financing emerging athletes.

The sponsorship builds on the firm’s extensive connections in the Spanish football ecosystem, following the introduction of Roberto Carlos as Partnership Manager of SportyCo. The team was founded in 1900 and plays their home games at the RCDE Stadium, which holds up to 40,500 spectators. Espanyol have won the Copa del Rey four times, most recently in 2006, and reached the UEFA Cup final in 1988 and 2007. Their players include stars such as Sergio García, Leo Baptistao, Gerard Moreno, and Pablo Piatti.

Espanyol joins a growing number of professional athletes and sports associations in support of SportyCo.

More information on SportyCo can be found here: https://sportyco.io/

Key Points

  • Bitcoin price declined sharply this past week and traded towards $7,500 against the US Dollar.
  • There was a break below a crucial bullish trend line with support at $10,800 on the 4-hours chart of the BTC/USD pair (data feed from SimpleFX).
  • The pair traded as low as $7,599 and it is currently correcting higher toward the $9,500 level.

Bitcoin price is recovering after a major decline below the $8,000 level against the US Dollar. BTC/USD is struggling to move above $9,500 and it may move down once again.

Bitcoin Price Resistance

This past week, we saw a monstrous decline in bitcoin price from well above $11,000 against the US Dollar. The price traded lower and broke the $10,000 and $9,000 support levels. The decline was such that the price even broke the $8,200 and $8,000 support levels. During the downside, there was a break below a crucial bullish trend line with support at $10,800 on the 4-hours chart of the BTC/USD pair. It traded close to the $7,500 level and formed a low at $7,599. Later, an upside correction was initiated and the price move above the $8,000 level.

It also moved above the 23.6% Fib retracement level of the last decline from the $11,820 high to $7,599 low. However, there are many resistances on the upside near the $9,500, $9,650 and $10,000 levels. At the moment, the price is facing sellers near the 38.2% Fib retracement level of the last decline from the $11,820 high to $7,599 low. Above $9,350, there is a horizontal resistance near $9,650. To the topside, there is a bearish trend line with resistance at $10,300.

Bitcoin Price Weekly Analysis BTC USD

Therefore, it won’t be easy for the current recovery to continue above the $9,500 and $10,500 levels.

Looking at the technical indicators:              

4-hours MACD – The MACD is currently reducing its bearish slope.

4-hours RSI (Relative Strength Index) – The RSI is finding it hard to move back above the 50 level.

Major Support Level – $8,000

Major Resistance Level – $10,500

 

Charts courtesy – SimpleFX

Key Highlights

  • ETH price declined sharply this past week and traded as low as $740 against the US Dollar.
  • There was a break below a major bullish trend line with support at $1,115 on the 4-hours chart of ETH/USD (data feed via SimpleFX).
  • The pair is currently correcting higher, but it is facing a major resistance on the upside at $1,020.

Ethereum price is in a bearish zone against the US Dollar, but it is stable against Bitcoin. ETH/USD is currently recovering higher, but it is facing a crucial hurdle near $1,020.

Ethereum Price Upside Hurdle

There was a major downside move from well above $1,100 in ETH price against the US Dollar. The price declined heavily and moved below the $1,100 and $1,020 support levels. During the downside move, there was a break below a major bullish trend line with support at $1,115 on the 4-hours chart of ETH/USD. The pair traded below the $900 level and is currently well below the 100 simple moving average (4-hours).

A low was formed at $740 from where an upside correction was initiated. The pair managed to recover above the 50% Fib retracement level of the last major decline from the $1,150 high to $740 low. However, there are many resistances on the upside around the $1,020 level. There is a bearish trend line on the same chart with resistance at $1,025. The trend line resistance at $1,025 is also near the 100 simple moving average (4-hours). At present, the 61.8% Fib retracement level of the last major decline from the $1,150 high to $740 low is acting as a resistance.

Ethereum Price Weekly Analysis ETH USD

Therefore, the $1,020 and $1,025 levels are important resistance levels. It won’t be easy for buyers to clear $1,020 to push the price further higher.

4-hours MACD – The MACD is currently reducing the bearish pressure.

4-hours RSI – The RSI is currently struggling to move back above the 50 level.

Major Support Level – $880

Major Resistance Level – $1,020

 

Charts courtesy – SimpleFX

Key Points

  • Bitcoin cash price declined heavily this past week and traded below $1,000 against the US Dollar.
  • There are two bearish trend lines forming with resistance at $1,300 and $1,480 on the 4-hours chart of BCH/USD (data feed from SimpleFX).
  • The pair has to break the $1,480 resistance zone to move back in the bullish zone.

Bitcoin cash price struggled a lot and moved below $1,000 against the US Dollar. BCH/USD needs to move back above the $1,480-1,500 level to gain upside traction.

Bitcoin Cash Price Resistance

This past week was one of the worst since bitcoin cash price tumbled by more than 50% from $2,900 against the US Dollar. The price made a sharp downside move and broke the $1,500 and $1,200 support levels. The decline was solid since the price moved below the $1,000 level. A low was formed at $986 from where the price started an upside correction.

It has moved above 23.6% Fib retracement level of the last drop from the $1,773 high to $986 low. At the moment, the price is facing a lot of sellers near the $1,250 and $1,280 levels. There are two bearish trend lines forming with resistance at $1,300 and $1,480 on the 4-hours chart of BCH/USD. These trend lines are significant for a move above $1,500 in the near term. The first trend line coincides with the 38.2% Fib retracement level of the last drop from the $1,773 high to $986 low. The second one is close to the 61.8% Fib retracement level of the last drop from the $1,773 high to $986 low.

Bitcoin Cash Price Weekly Analysis BCH USD

Therefore, a break above $1,500 is needed for BCH to move back in the bullish zone. On the downside, the $1,000 support area is a crucial support.

Looking at the technical indicators:

4-hours MACD – The MACD for BCH/USD is currently reducing the bearish slope.

4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is moving higher toward the 50 level.

Major Support Level – $1,000

Major Resistance Level – $1,500

 

Charts courtesy – SimpleFX