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Bitcoin Network Preps for Difficulty Spike as Hashrate & Profits Surge
Bitcoin Difficulty Expected to Rise
• Following the last two difficulty increases on the Bitcoin network, another rise in difficulty is expected to take place on March 24, 2023.
• Statistics show that Bitcoin’s hashrate has remained high despite the last two adjustments, and block times have been faster than the ten-minute average.
• At present, the estimated difficulty change for Friday, March 24th is expected to be between 2.51% and 5.7% higher than the current 43.55 trillion.
Hashrate Remains Strong Despite Increase in Difficulty
The Bitcoin network is preparing for another difficulty spike as hashrate remains strong and miners benefit from a surge in price following recent increases in difficulty over the past two weeks. At the time of writing, Bitcoin’s hashrate stands at an all-time high of 319.86 EH/s and its spot value is now above what it costs to mine it. This has been a boon for miners who have had to deal with consecutive 9.95% and 1.16% rises in difficulty respectively on February 24th and March 10th this year. As such, block interval times (the time between blocks being mined) are still less than their ten-minute average which currently ranges between nine minutes and 28 seconds up to nine minutes and 31 seconds.
Estimated Difficulty Change For March 24th
Current estimates suggest that when adjusted on Friday, March 24th, difficulty could potentially rise above 50 trillion hashes mark; with target range likely being between 44.64 trillion and 49.25 trillion – a possible increase of 2.51-5 .7%. These figures indicate that if miners maintain or even accelerate their pace then this adjustment could see a significant jump in difficulty levels across the board for all participants involved in mining Bitcoin on the network today .
Mining Pool Distribution Statistics
Mining distribution statistics show that Foundry USA is currently leading bitcoin mining pool with 97.22 EH/s or 30 .31 %of global hashrate followed by Antpool with 61 .03 EH/s , F2pool with 46 .13 EH/s , Binance Pool , Viabtc command 84 .52 % of global hashrate as of march 21st 2023 according to three day metrics .
In conclusion , Bitcoin ‚ s hash rate remains strong despite recent increases in difficulty levels , allowing block intervals remain well below their ten minute averages while miners continue to benefit from price surge amid rising demand for digital assets.. Current estimates suggest that when adjusted on Friday ,24 th march 2021 there could be a further increase of 2 .51 -5 .7 % indicating an eventual rise above 50 trillon hashes mark across board for all participants involved in mining bitcoin today which would be great news for investors looking make money from digital currency markets
HSBC Acquires SVB UK: Deposits Protected, No Taxpayer Support Needed
• The British government and the Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC.
• Deposits are protected with no taxpayer support.
• HSBC has acquired Silicon Valley Bank UK for £1 and will be funded from existing resources.
The British government and the central bank, the Bank of England, have facilitated a private sale of Silicon Valley Bank UK to HSBC, according to Chancellor of the Exchequer Jeremy Hunt. He stressed that „Deposits will be protected, with no taxpayer support.“
HSBC has acquired Silicon Valley Bank UK (SVB UK), the British subsidiary of Silicon Valley Bank (SVB) that was shut down by U.S. regulators on Friday. In a filing with the London Stock Exchange Monday, HSBC stated that its U.K. subsidiary, HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Ltd. for £1 ($1.22). The filing details that as of March 10,“ SVB UK had loans of around £5.5bn and deposits of around £6.7bn.“ Moreover, for the financial year ending Dec 22 2022,the filing states that „SVB UK recorded a profit before tax of £88m,“ adding that the British subsidiary’s „tangible equity is expected to be around £1.4bn.“
Funding & Resources
HSBC noted: „The assets and liabilities of the parent companiesof SVBUK are excluded from the transaction.“ The acquisition will be funded from existing resources“ Noel Quinn, HSBC Group’s CEO commented: This acquisition makes excellent strategic sense for our business in the U.K .It strengthens our commercial banking franchiseand enhances our abilityto serve innovative and fast-growing firms including in technology and life science sectors in U .K .and internationally“.” “SVBUK customers can continue to bank as usual,“the executive clarified adding: „We warmly welcome SVBUK colleagues to HSBC , we are excitedto start working with them .“
In the US ,the Department Of Treasury ,the Board Of Governors Of Federal Reserve System And Federal Deposit Insurance Corporation (FDIC )have taken measures toprotect SVB depositors they announced Sunday : “Depositors will have access to allof their money starting Monday ,March 13th No losses associated with resolutionof silicon valley bankwill be borne by taxpayer .”
With this acquisition ,HSBC strengthens its commercial banking franchiseeand ability to serve innovative and fast growing firms including technologyand life science sector in U .K .and abroad .Adding new services for customersto enjoy while providing protection measures so deposits aren’t lost orborne by taxpayers .
Bitcoin and Ethereum Volatility High: What to Expect This Week
• Bitcoin (BTC) and Ethereum (ETH) experienced volatility in prices to start the week. BTC/USD dropped closer to a recent support point at the $22,300 zone, while ETH/USD fell to an intraday low of $1,557.36.
• The recent rise in bearish sentiment has caused bitcoin to fall by as much as 5% in the last seven-day period. A downward crossover between the 10-day (red), and 25-day (blue) moving averages has also transpired, which could be a sign of further sell-offs to come.
• Ethereum’s market cap is down 5% within that period and the 10-day (red) moving average has moved below its 25-day (blue) counterpart, with support at $1,560 preventing further falls. The 14-day relative strength index (RSI) is currently tracking above a floor at the 42.00 mark for Bitcoin and 44.00 for Ethereum respectively.
Volatility in Bitcoin & Ethereum Prices
Bitcoin (BTC) started the week in consolidation, ahead of a key week of economic data from the United States. Following a high of $22,497 on Sunday, BTC/USD slipped to an intraday low of $22,331 earlier in the session. As a result of this move, Bitcoin sank closer to a recent support point at the $22,300 zone. Overall, bearish sentiment has caused bitcoin to fall by as much as 5% in the last seven days period and resulted in a downward crossover between its 10 day red moving average and 25 day blue moving average which could be signifying further sell offs on their way .The 14 day relative strength index(RSI) is presently tracking above its floor at 42 points which may be considered positive for Bitcoin markets .
Ethereum(ETH)’s market cap is down 5 % within that period , it traded at an intraday low of 1557 dollars earlier today . Its 10 day red moving average has gone below its 25 day blue one with support being provided by 1 560 dollars . The relative strength index is hovering around 44 points which may not bode well for ETH markets .
Key Economic Data This Week
This week sees some important economic data coming out from U S economy; nonfarm payrolls will be posted , this will be followed by Federal Reserve Chair Jerome Powell’s speech later this week .
Sentiment & Technical Analysis
Recent increase in bearish sentiment coupled with technical analysis such as Moving Average crossovers have pointed towards potential downturns ahead; additionally RSI readings have been mixed so far with BTC’s being higher than ETH’s but both are still close to their respective floors ; if these levels break then more downside movement can be expected from both these cryptocurrencies .
ConclusionOverall it seems that volatility remains high for both Bitcoin and Ethereum Markets , important economic data coming up later this week will likely decide directionality for both currencies ;sentiment remains largely bearish but technical indicators are mixed so caution should be exercised when entering or exiting positions .
Bond King : Recession Set to Bring Painful Outcomes
• Billionaire Jeffrey Gundlach, AKA the „Bond King,“ has cautioned of “painful outcomes” in the next recession.
• The Federal Reserve is attempting to curb inflation, but Gundlach believes this could lead to a “very high severity problem”.
• He advises that investors should prepare for a potential downturn by having protection strategies in place.
Jeffrey Gundlach: Warnings of ‚Painful Outcomes‘ in Next Recession
Billionaire Jeffrey Gundlach, also known as the „Bond King,“ has warned of „painful outcomes“ that are likely to come with the next recession. As chief executive officer and chief investment officer of investment management firm Doubleline, he shared his outlook on the U.S. economy with Yahoo Finance last week.
Federal Reserve Attempts to Curb Inflation
Gundlach noted that one indicator of a recession is if the unemployment rate crosses its 36-month moving average and that historically when there is more than a 50-basis-point rise in unemployment rate, it suggests you’re in more of a hard-landing type of recession. He added that the Federal Reserve’s attempt to never have a significant downturn in the economy could lead to worse problems down the road: „The more you try to reduce the severity of problems, you’re going to end up ultimately having a very high severity problem.“
Gundlach’s Rule of Financial Physics
Gundlach referred to his own rule – dubbed “Gundlach’s rule of financial physics” – which states that “the frequency of problems times the severity of problems equals a constant”. He believes that by attempting to reduce the severity of economic issues now, ultimately worse problems will arise later on down the line.
Advice for Investors
The billionaire advised investors that regardless if it’s soft or hard landing, it’s important to have certain degree protection from potential downturns: „People are always asking me this question: ‚How bad is the recession going to be?‘ It doesn’t matter, as long as we’re going into a recession, you have to have a certain degree of protection.“
Net Worth & Background
Jeffrey Gundlach currently has an estimated net worth $2.2 billion and was even featured on Barron’s cover in 2011 with title “The New Bond King” due his achievements within investments over years.
Fed’s 2% Inflation Target Could Crush US Economy, Economist Warns
• Economist Mohamed El-Erian has warned that the Federal Reserve cannot achieve its 2% inflation target without crushing the U.S. economy.
• He suggested a higher stable inflation rate of 3-4%.
• The Allianz economic advisor criticized the Fed for being too data dependent and warned that it could lose credibility if it changes its inflation target.
Economist Warns of Crushing US Economy
Economist Mohamed El-Erian, Allianz’s chief economic advisor and chair of Gramercy Funds Management, has warned that the Federal Reserve cannot achieve its 2% inflation target without „crushing“ the U.S. economy. He suggested that a higher stable inflation rate of 3-4% is necessary for a sustainable recovery.
Fed Criticized for Being Too Data Dependent
The Allianz economic advisor criticized the Fed for being too data dependent and warned that it could lose credibility if it changes its inflation target. El-Erian argued that there are several factors necessitating a higher target inflation rate, including energy transition, supply chain changes due to COVID, tight labor markets, and changing geopolitical issues.
January CPI Report
The government’s consumer price index (CPI) data released Tuesday showed prices increasing by 0.5% in January on a month-by-month basis – the most since October – while on an annual basis consumer prices climbed 6.4%, down from 6.5% in December. Following this report several Fed officials said they may have to raise interest rates beyond initial expectations in order to subdue ongoing price pressures.
Predictions of “Sticky” Inflation Around 4%
In January El-Erian predicted that inflation may become „sticky“ around 4%. This would be an increase from current levels and suggests the Fed should take into account long term goals rather than focusing solely on short term data when making decisions about interest rates and other monetary policy measures .
Credibility at Stake
El-Erian further asserted that if the Federal Reserve were to change their official inflation target after having missed their current goal by such a large margin it could result in serious damage to their credibility as an institution responsible for guiding monetary policy decisions in America .
Bit2Me Debit Card: Get 9% Cashback on All Purchases
• Bit2Me has launched a debit card that works across the Mastercard network.
• The card offers up to 9% cashback on all purchases, and can be linked to 8 top cryptocurrencies with more to follow.
• It also includes features such as the ability to lock and unlock the card, configure usage limits, and safety-related support for NFC.
Bit2Me Debit Card Launch
Bit2Me, the biggest Spanish exchange and first company recognized as a virtual service provider by the Bank of Spain, has just launched a long-awaited debit card that works across the entire Mastercard network.
The Bit2Me debit card enables crypto-stablecoin payments across more than 90 million global businesses and up to 9% cash back on all payments. It can also be used in-store & online using NFC-enabled mobile devices, such as smartphones and smartwatches. Right now the card can be linked to 8 top cryptocurrencies with more to follow—B2M, BTC, ETH, ADA, XRP, SOL, DOT, and USDT—allowing users to pay securely for goods and services.
Seamless User Experience
Unlike some competing crypto cards, Bit2Me’s allows users to make cash withdrawals at ATMs & instant online payments without having to manually exchange funds on the app. It also provides secure features like being able to lock/unlock cards and configure usage limits for added safety.
Integrating Cryptocurrencies into Mastercard Network
Achieving this level of cryptocurrency integration wasn’t easy; it took dozens of professionals two years of work modify transaction flows according part of international payment protocols so customers could use cryptocurrencies safely & transparently for businesses while getting up 9% cash back on purchases.
Future Plans admin, 12. Februar 2023. Category: Allgemein.
Binance Ends Wallet Services to Wazirx: Time to Remove Funds
• Binance announced on Friday that Indian crypto exchange Wazirx can no longer use its wallet services.
• This move follows a public dispute regarding the relationship between Binance and Wazirx.
• Binance has given Wazirx until February 3rd to remove all funds from the accounts used for their operations.
Binance Ends Wallet Services to Wazirx
Binance has announced that Indian crypto exchange Wazirx can no longer use Binance wallet services. The move followed a public dispute regarding the relationship between Binance and Wazirx with Zanmai, the operator of Wazirx, having till Feb. 3 „to remove the funds from the accounts that they used for Wazirx’s operations.“
Public Dispute Between Binance and Wazirx
Binance explained that it had provided wallet and related technology services to Zanmai, but was now terminating this service as Zanmai had made „a series of misleading claims related to Binance’s alleged role in and responsibility for operating the Wazirx exchange.“ They stated that these false statements misrepresented them as maintaining control over user assets, activity, and operations.
Choice Offered By Binance
At the time of their announcement, Zanmai had not removed all funds from relevant accounts so on Jan. 26, they offered them a choice; retracting false public statements (and continuing to use their services) or terminating the use of their wallet service. Since Zanmai refused to clarify these misleading statements, they have till February 3rd to withdraw all funds from accounts used by them for their exchange operations.
India Not A Viable Business Opportunity For Biance
Biance CEO Changpeng Zhao (CZ) recently said that India is not a viable business opportunity due to its regulatory stance including hefty taxes framework thus making it difficult for them to operate there. Despite this, Biaince has been actively expanding its operations worldwide being licensed in 7 EU countries at present..
Therefore it is clear that due to issues concerning regulations in India , Biance has decided it best not provide any further services or support to Indian Crypto Exchange -Wazarix anymore .
Aptos Soars 391.8%: Reaches All-Time High of $19.92
• Aptos (APT), a layer one blockchain asset, has increased 391.8% against the U.S. dollar in the past 30 days, reaching an all-time high of $19.92 on Jan. 26th, 2023.
• The project is supported by venture capital firms, as well as by two developers who previously worked on Meta’s Diem project.
• Aptos is the 28th largest cryptocurrency in terms of market capitalization, with a current market capitalization of $2.83 billion and a circulating supply of 160.54 million APT tokens.
Aptos, a layer one blockchain asset, has been on a remarkable run since it went live in mid-October 2022. After trading at around $3.08 per coin on Dec. 29, 2022, the price of the token soared to an all-time high of $19.92 per unit on Jan. 26, 2023. This represents an increase of 391.8% in the past 30 days and a rise of 474% since the all-time low of $3.08 per coin.
The cryptocurrency was created by two developers who previously worked on Meta’s Diem project before it was discontinued. The project has also recently been supported by venture capital firms such as Parafi, Andreessen Horowitz, and Multicoin Capital.
Currently, aptos is the 28th largest cryptocurrency in terms of market capitalization, with a total market capitalization of around $2.83 billion. The token has a circulating supply of 160.54 million APT tokens, and in the last 24 hours, the token has seen $813 million in global trading volume.
Although some traders attempted to short the market during the climb in value, many were ultimately unsuccessful. This surge in value has been attributed to the growth of decentralized finance, infrastructure support, and NFTs.
All these factors have combined to create an incredibly bullish market for aptos, and the token has shown no signs of slowing down any time soon. With a market capitalization of $2.83 billion and a circulating supply of 160.54 million APT tokens, the potential for further growth is huge and the future of the token looks very bright indeed.
Dr. Doom Warns Investors to Absolutely Stay Away from Crypto
• NYU Professor Nouriel Roubini, aka Dr. Doom, warned that 99.99% of crypto is a scam and advised investors to „absolutely stay away“ from it.
• He claimed that most people in the crypto space are „all crooks“ and shared his opinion on the collapsed crypto exchange FTX and its disgraced founder Sam Bankman-Fried.
• He advised against investing in cryptocurrencies and noted that 99% of bitcoin investors bought the cryptocurrency “well above the current market value.”
New York University (NYU) Stern School of Business professor of economics and international business, Nouriel Roubini, more commonly known as “Dr. Doom”, warned investors to “absolutely stay away” from cryptocurrency during an interview with Yahoo Finance Live Wednesday at the World Economic Forum in Davos, Switzerland. He warned that “99.99% of crypto is a scam, a criminal activity, a total real-bubble Ponzi scheme that is going bust”.
Roubini is both the chairman of Roubini Global Economics, a global macroeconomic and market strategy research firm that he co-founded, and is infamous for his predictions of the 2008 Financial Crisis. He believes that most people in the crypto space are “all crooks”. He shared his opinion on the collapsed crypto exchange FTX and its disgraced founder Sam Bankman-Fried (SBF). FTX filed for bankruptcy last November and SBF is currently facing several fraud charges, all of which he has pleaded not guilty to.
“FTX and SBF are not an exception — they’re a rule,” Roubini exclaimed.
Roubini advised against investing in cryptocurrencies and noted that 99% of bitcoin investors bought the cryptocurrency “well above the current market value”. He suggested that these investors “lost their shirts” when bitcoin skyrocketed from $20,000 to $69,000. He also highlighted the “nightmare” of investing in bitcoin when the market value was so much higher than the current rate.
Dr. Doom’s warnings have not been the only ones to come out. Numerous financial advisors, economists, and investors have all warned that cryptocurrency is a high-risk investment. But despite widespread warnings, cryptocurrency continues to be a popular investment among those looking for quick and high returns.
Whether or not investors heed the warnings of Dr. Doom and other financial professionals, cryptocurrency remains a high-risk investment that investors should be wary about. It is important for any investor to understand the risks associated with investing in cryptocurrencies before taking the plunge.
Bitcoin Mining Difficulty Set to Increase 10% on Jan 15
1. Bitcoin’s mining difficulty is set to increase significantly on January 15, 2023.
2. The network’s hash rate is currently at 268.79 exahash per second and the blockchain’s computational power reached an all-time high on January 6, 2023.
3. Foundry USA and Antpool command nearly half of Bitcoin’s global hashrate.
The Bitcoin network is preparing for a notable difficulty increase in three days, on or around January 15, 2023. This difficulty increase is estimated to be around 10%, raising the difficulty from 34.09 trillion to an all-time high of 37.57 trillion. This will make it more difficult to find and add new blocks to the blockchain, meaning that miners will need to increase their hash rate in order to remain profitable.
The Bitcoin network’s hash rate is currently at 268.79 exahash per second (EH/s) and the blockchain’s computational power reached an all-time high on January 6, 2023. At that time, the network’s hash power was at 361.20 EH/s. The block interval, or the average amount of time it takes for a new block to be added to the blockchain, is designed to be around 10 minutes per block. However, due to the fact that the last difficulty change was on January 2, 2023, the block intervals have been faster. This means that the difficulty retarget on January 15 will be a notable increase that has not been seen since October 2022.
Foundry USA and Antpool are two of the largest miners in the Bitcoin network, controlling nearly half of the global hashrate. Foundry USA, a subsidiary of the Digital Currency Group, controls nearly 18% of the network’s hash rate. Antpool, a Chinese-based mining pool, controls nearly 30% of the network’s hash rate. Both companies are expected to increase their hash rates in order to prepare for the upcoming difficulty increase.
The upcoming difficulty increase is expected to have an impact on the Bitcoin network, and miners will need to make sure they are prepared in order to remain profitable. The increase in difficulty is expected to result in a higher hash rate, which will make it more difficult to mine new blocks. With the network’s hash rate currently at an all-time high, miners need to make sure they are prepared for the upcoming difficulty increase in order to remain competitive.