Hedge fund manager Michael Burry, famed for forecasting the 2008 financial crisis, has warned that governments could “squash” bitcoin in an inflationary crisis. Expecting more massive stimulus from the government, he said to “prepare for inflation.”
Michael Burry Shares His View on Bitcoin
American investor Michael Burry has warned that governments could “squash” bitcoin and even gold to protect their own currencies. Burry founded hedge fund Scion Capital and is best known for being the first investor to foresee and profit from the U.S. subprime mortgage crisis that occurred between 2007 and 2010.
In a series of tweets Thursday night, Burry wrote, “Prepare for inflation.” He expects more stimulus from the government to drive up prices, fuelling inflation, as the economy tries to recover from the coronavirus pandemic. He tweeted:
In an inflationary crisis, governments will move to squash competitors in the currency arena. $BTC #gold
Burry became famous after his billion-dollar bet against the U.S. housing bubble was chronicled in the book and movie “The Big Short.” The film was directed by Adam McKay and starred Christian Bale as Burry, Steve Carell, Ryan Gosling, and Brad Pitt.
In addition, his hedge fund was holding 1.7 million Gamestop shares but sold all of its holdings in the fourth quarter of last year, before the massive surge fuelled by Wallstreetbets. According to Forbes, “The stock sales mean Burry missed out on a Reddit-fueled 2,000% surge in the video game retailer at one point in 2021, which would have made him over $1 billion.”
Burry further clarified his stance on bitcoin in a tweet Saturday:
I don’t hate BTC. However, in my view, the long term future is tenuous for decentralized crypto in a world of legally violent, heartless centralized governments with lifeblood interests in monopolies on currencies. In the short run anything is possible – why I am not short BTC.
Do you agree with Michael Burry about bitcoin? Let us know in the comments section below.
The president of the Federal Reserve Bank of St. Louis, James Bullard, has shared his view on the future of bitcoin. He is confident that the cryptocurrency poses no threat to the U.S. dollar. Referencing the unpopularity of various versions of dollars issued before the Civil War by banks, Bullard predicts the same fate will happen to bitcoin.
St. Louis Fed’s President Says Bitcoin’s Popularity Won’t Threaten the Dollar
James Bullard said in an interview with CNBC last week that increasing interest in bitcoin, coupled with all-time high prices, does not pose a threat to the U.S. dollar as the world’s reserve currency. Bullard is an economist who has been the president of the Federal Reserve Bank of St. Louis since 2008.
“I just think for Fed policy, it’s going to be a dollar economy as far as the eye can see — a dollar global economy really as far as the eye can see — and whether the gold price goes up or down, or the bitcoin price goes up or down, doesn’t really affect that,” the St. Louis Fed president explained.
Bullard expressed concerns about widespread financial transactions using different cryptocurrencies that are not issued by governments. “Dollars can be traded electronically already, so I’m not sure that’s really the issue here. The issue is privately issued currency,” he asserted.
He then referenced the time before the Civil War, describing that at the time it was common for banks to issue their own currencies. He likened the situation to financial institutions — such as Bank of America, JPMorgan, and Wells Fargo — all having distinct brands of dollars, elaborating:
They were all trading around and they traded at different discounts to each other, and people did not like it at all. I think the same thing would occur with bitcoin here.
“You don’t want to go to a nonuniform currency where you’re walking into Starbucks and maybe you’ll pay with ethereum, maybe you’ll pay with ripple, maybe you’ll pay with bitcoin, maybe you’ll pay with a dollar. That isn’t how we do this. We have a uniform currency that came in at the Civil War time,” he affirmed.
Regarding whether bitcoin or other cryptocurrencies pose a threat to the U.S. dollar, Bullard stressed that competition is nothing new and has existed for centuries. “It is a currency competition, and investors want a safe haven. They want a stable store of value, and then they want to conduct their investments in that currency,” he described.
The president of the Federal Reserve Bank of St. Louis proceeded to make examples of the euro and the Japanese yen as competing currencies. “Neither of those is going to replace the dollar,” he emphasized, concluding:
It’d be very hard to get a private currency that’s really more like gold to play that role so I don’t think we’re going to see any changes in the future.
Meanwhile, some analysts are not as optimistic about the U.S. dollar as Bullard. Morgan Stanley Investment Management’s chief global strategist, Ruchir Sharma, said last week that “Bitcoin is also starting to make progress on its ambition to replace the dollar as a medium of exchange.” In July last year, Goldman Sachs warned that the U.S. dollar risks losing its world reserve currency status. In Russia, gold has already exceeded the U.S. dollar in the country’s reserves as Russian President Vladimir Putin focuses on de-dollarization.
Do you think bitcoin poses a threat to the U.S. dollar? Let us know in the comments section below.
Renowned gold bull and CEO of investment management firm Doubleline, Jeffrey Gundlach says bitcoin may be the “stimulus asset” while adding it “doesn’t look like gold is.” Gundlach, a self-professed long-term dollar bear, had preceded his comments about bitcoin by remarking that “lots of liquid poured into a funnel creates a torrent.”
In the same tweet, Gundlach suggests that he came to the conclusion after staying “neutral (on both gold and the dollar) for the past six months.” In the past six months, the two stores of value have had contrasting fortunes with BTC appearing to win the battle for supremacy.
After starting September 2020 trading at just under $12,000, BTC has since rallied to peak at $57,399 on February 20, 2021, according to Messari. At the time of writing, the crypto asset was trading above $57,000. In contrast, gold, which reached its all-time record high of $2,067.15 per ounce on August 7, 2020, has largely stayed under $1,900 for the rest of the year.
Also, despite the many predictions of gold breaking out, the commodity has so far failed to match the expectations. On the other hand, BTC could be on course to beat the $100,000 mark after breaking past $50,000.
In the meantime, Gundlach’s comments about BTC have coincided with the shifting store of value preferences by large corporations. For instance, in its recent filing with U.S. Securities and Exchange Commission (SEC), Tesla only revealed its $1.5 billion BTC acquisition. While the electric carmaker’s updated investment policy authorizes the company to also take positions on gold bullion or gold ETFs, the company so far only focused on BTC.
Meanwhile, Gundlach’s views on BTC are now at odds with the crypto asset’s prominent opponent Peter Schiff. The gold bug, who has previously praised Gundlach, has already attacked Tesla for choosing BTC ahead of gold. Similarly, other supporters of gold on Twitter expressed their disappointment with Gundlach’s apparent pivot to the crypto asset. One user named Pet Rock said:
Why Bitcoin and not any of the thousands of other coins that do the exact same thing? Why Bitcoin instead of a future Amazon coin or Google coin? I am amazed at such smart people being tempted by something that is wishful thinking.
“Bitcoin’s volatility precludes it from being a store of value. It is also correlated with bubble stocks. It is speculative mania. It will pop. Gold is simply tracking the inverse of real yields. If inflation picks up and YCC happens, gold will soar. Pain until then.”
Still, some users like Harry expressed support Gundlach saying:
“Bitcoin is gold 2.0. Clearly, the market is telling you that. In the past, it would’ve been gold and the miners taking off. No more. It’s the digital age.”
What are your thoughts on Gundlach’s tweet? You can share your views in the comments section below.
On February 21, bitcoin touched a lifetime price high at $57,844 per unit after the crypto asset’s market valuation crossed the $1 trillion zone for the first time in history the day prior. Meanwhile, a number of digital assets have seen fiat values increase as coins like litecoin, ethereum, and others gather gains against the U.S. dollar. However, when bitcoin is the base denominator in terms of value, a lot of coins have a long way to go to catch up.
Measuring Alternative Crypto Assets With Bitcoin
The crypto asset bitcoin (BTC) has seen phenomenal gains and a lot of other digital currencies have seen price increases as well. For instance, ethereum (ETH) is the second-largest digital asset in terms of market capitalization, and ETH has touched the $2,040 price range.
Now ETH has seen pretty decent gains against the U.S. dollar, as it up a decent 76.32% during the last month, and 249.90% over the last three months. Traditionally people price everything in their local fiat currency like U.S. dollars or euros, but things look a whole lot different when other crypto assets are priced against or with BTC.
For instance, data from messari.io shows an ether priced in bitcoin is worth 0.0341 BTC and on Tradingview the price is a hair higher at 0.0343 BTC at the time of publication. Now even though ether has seen decent gains against the U.S. dollar in 2021, it was a lot higher in comparison to BTC back in 2018.
At that time in January 2018, a single ETH was around 0.1090 BTC. Bitcoin’s price at the time was around a third of what it is today, while ether’s value was closer to where it was back then albeit a touch higher. The same can be said for a myriad of other alternative assets in the crypto economy.
Litecoin (LTC) is a good example, as LTC is a cryptocurrency with a market valuation of around $15.5 billion and holds the eighth largest valued market cap. Against fiat, LTC has done well this year increasing over 66% during the last month against the U.S. dollar.
LTC has gained 157% against the dollar for the last three months, but has yet to capture the coin’s all-time high (ATH). Litecoin is still 38% away from the ATH three years ago, which was $369.32 per LTC. Back in February 2018, a single LTC was around 0.019533 BTC but today one LTC is swapping for 0.003966 BTC.
Pricing Everything in Bitcoin Gives a Different Perspective
People can price anything in BTC and in other common denominators or vice versa. For instance, a person can get a 2021 Lamborghini Huracan EVO today for 5.08 BTC, a brand new Honda Accord is only 0.44 BTC. You can get a pristine 3.0-carat diamond ring for a single BTC and 0.12 BTC buys the average American food for a whole year.
Back in the day when a single coin crossed parity with a single Federal Reserve note ($1), it was a milestone. Then years later, it passed the value of one troy ounce of fine silver ($27), and everyone noticed.
Years later the price surpassed the value of one troy ounce of fine gold and that definitely got some attention. On Saturday, BTC ripped into another ATH and crossed parity with one kilo of fine gold. The fact of the matter is, the common denominator can be perceived a whole lot differently when measuring things in BTC or against it.
What do you think about measuring assets and other cryptocurrencies in bitcoin? Let us know what you think about this subject in the comments section below.
A Chinese tea retailer is looking to make its inception into the bitcoin mining business. Publicly-listed Urban Tea announced the expansion of its operations by appointing two executives to pursue its crypto plans.
Per the announcement, Urban Tea Inc. hired Fengdan Zhou as the company’s new chief operating officer and Dr. Yunfei Song as an independent director. The tea retailer expects the new roles to lead the “company’s critical strategic expansion in blockchain and cryptocurrency mining.”
Zhou will look forward to implementing the bitcoin (BTC) business plan of the firm. Her experience includes having worked in blockchain data centers across Southeast Asia and managing crypto mining farms. Moreover, she has expertise in crypto hardware wallet development, the announcement details.
Also, Dr. Song comes from an academic background, specifically being a scientist at the Chinese Academy of Sciences. In fact, his expertise fields cover blockchain technology, crypto mining, artificial intelligence, among others.
Yi Long, CEO of Urban Tea, praised the widespread popularity that cryptos have gained recently. Also, he pointed out that the “world’s financial experts” have been building confidence in the future of cryptocurrencies and blockchain technology.
Long further commented on Zhou and Dr. Song’s hirings:
We expect that their industry expertise, combined with our growth strategy, will lead our expansion plan into the cryptocurrency mining industry. Going forward, we expect Urban Tea will start expanding into blockchain ecology, such as cryptocurrency mining, blockchain mine construction and maintenance, and cryptocurrency exchange operations.
Urban Tea, based in Hunan, China, was founded in 2011, and it’s currently listed in Nasdaq as MYT. As of press time, the company’s shares trade at $6.05, with a $45 million market capitalization. This maneuver is their first crypto-related business made over the company’s history.
Latest Tea Retailer’s Crypto Mining Venture Ended in a Disaster
There are some precedents of tea retailers joining the crypto industry. Long Island Iced Tea Corp, another publicly listed company, purchased 1,000 units of Antminer S9 manufactured by Bitmain in 2018 to join the crypto mining business. Afterward, they rebranded the business to “Long Blockchain Corp.”
However, the venture ended in a disaster. When Long Blockchain Corp acquired the crypto hardware, its stocks jumped by 500%. But mining’s plans went to the trash when crypto’s bears appeared in February 2018.
When Long Blockchain Corp’s shares were delisted by Nasdaq, the company also had to sell its tea business.
The story didn’t end there, as the FBI and the Securities and Exchange Commission then launched an investigation over allegations of insider trading and securities fraud.
What are your thoughts on Urban Tea’s announcement? Let us know in the comments section below.
Tesla and Spacex CEO Elon Musk has clarified his position on bitcoin. Emphasizing that he is an engineer, not an investor, Musk says that bitcoin “is simply a less dumb form of liquidity than cash.” Musk also disputed gold bug Peter Schiff’s claims about bitcoin and commented on the price of the cryptocurrency.
What Elon Musk Thinks About Bitcoin
The CEO of cryptocurrency exchange Binance, Changpeng Zhao, was interviewed by Bloomberg Thursday after the demand for dogecoin on his exchange soared. He commented on Elon Musk’s enthusiasm towards the meme cryptocurrency during the interview.
“I’m surprised that Elon’s so gung-ho on dogecoin,” Zhao began, noting that “This is a decentralized, free world and anybody can like anything. He [Musk] can like dogecoin for any reason he likes.” Emphasizing his strong belief that Musk is not associated with dogecoin, the Binance CEO pointed out that Musk’s electric car company, Tesla, bought $1.5 billion of bitcoin, not dogecoin.
Musk saw the interview on Twitter and replied:
Tesla’s action is not directly reflective of my opinion. Having some bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.
“To be clear, I am ‘not’ an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla,” he elaborated.
Nonetheless, Musk clarified: “However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere. Bitcoin is almost as BS as fiat money. The key word is ‘almost.’”
Gold bug Peter Schiff, who recently bashed Musk and Tesla for buying bitcoin, tweeted Friday: “According to Elon Musk ‘Bitcoin is almost as BS as fiat money.’ So Musk regards both bitcoin and fiat as BS.”
He further wrote: “I agree, I just think bitcoin, which is digital fiat, is even more BS than the paper fiat issued by central banks. Gold is not BS. It’s real money and better than both.”
Musk saw the tweet and replied to Schiff:
An email saying you have gold is not the same as having gold. You might as well have crypto. Money is just data that allows us to avoid the inconvenience of barter. That data, like all data, is subject to latency & error.
The Tesla CEO continued, “The system will evolve to that which minimizes both.” He additionally noted, “That said, BTC & ETH do seem high.”
Refusing to give in to Musk, Schiff continued to express his opinion about gold, bitcoin, and money. On Saturday, he asked Musk to join him for a conversation on Clubhouse.
Do you agree with Elon Musk? Let us know in the comments section below.
Day trader Dave Portnoy has admitted that he is an idiot when it comes to bitcoin after the price of the cryptocurrency continually hit all-time highs. He panic-sold his bitcoins when its price was just around $11,000 and has now vowed to never buy the cryptocurrency again.
Dave Portnoy Regrets Panic-Selling Bitcoin at $11K
American day trader and founder of Barstool Sports blog Dave Portnoy admitted Thursday that he is an idiot when it comes to bitcoin and said that he will never buy the cryptocurrency again.
Portnoy bought his first bitcoin on Aug. 13, 2020, when the Winklevoss twins, who are his neighbors, went to his home and personally walked him through how to buy bitcoin on their cryptocurrency exchange Gemini. Portnoy invested $200K in BTC that day when the price of the cryptocurrency was around $11,172, according to markets.Bitcoin.com. He subsequently bought two other cryptocurrencies: chainlink and orchid.
However, when the price of some of his cryptocurrencies toppled, Portnoy panic-sold and got out of cryptocurrency altogether. He explained at the time, “I’m out on crypto because coins don’t always go up. Stocks on the other hand continue to always go up.”
Then on Thursday, the Barstool Sports founder admitted that he was an idiot about bitcoin as the price of the cryptocurrency continued to skyrocket, hitting multiple all-time highs. “I’m such an idiot … with bitcoin. At least I know I’m an idiot, alright,” he said, tweeting:
I know I’m an idiot with bitcoin. But I refuse to be the poorest man on the ship. I won’t swab the decks.
Portnoy exclaimed that he is not going to give bitcoiners “the satisfaction of [seeing him] jumping and being the last man on board, being the poorest guy on the ship.”
He ranted on: “‘Hey fucking poor guy, swab the deck. I’ll throw you a little fucking bitcoin’ and watch me scramble like a rat for like one 100th-millionth of a bitcoin while Winklevoss and fucking parabolic guy and Pomp [Anthony Pompliano] laugh at me from the fucking upper deck. Uh-uh. I’ll just be on a different ship.”
The parabolic guy he referred to was Jason Williams. “I love [the] parabolic guy,” Portnoy said, adding that he “is one of my favorite guys.” Nonetheless, the Barstool Sports founder insisted, “I ain’t swabbing his deck.” He further justified his decision to stay away from bitcoin by saying:
And God forbid, if I buy bitcoin and it crashes, that’ll force me to hate some people I don’t hate, and I don’t want to be put in that position.
On Wednesday, the price of bitcoin crossed the $51K mark and Portnoy made a video in which he lamented his decision to sell all of his bitcoins in August last year. “Bitcoin’s the only thing that doesn’t go down. $51,000. Bitcoin’s at fucking $51,000. It was at 11,000 in August. Jesus Christ.” He then concluded:
I’m never buying bitcoin. Never. Never, never. I don’t believe a thing about it, but I do think it’s profitable, and I think that with enough steam that it may just continue to go up forever, but I don’t buy the underlying junk behind it.
At the time of writing, the price of BTC stands at $56,279 after hitting multiple all-time highs throughout the week. Its market capitalization has surpassed $1 trillion. If Portnoy had kept the BTC which he bought at around $11K in August last year, his investment would have risen by about 412%.
What do you think about Dave Portnoy’s reaction to the rising price of bitcoin? Let us know in the comments section below.
Microsoft founder Bill Gates is no longer a bitcoin bear. He has now taken a neutral stance on bitcoin as an investment. However, as an innovation, he says that cryptocurrency is one that the world would be better off without because it allows for certain criminal activities.
Bill Gates Changes His Mind About Bitcoin
Bill Gates spoke about bitcoin and cryptocurrency in two separate interviews Thursday. One was with CNBC where he was asked what he thinks about bitcoin “in the context of climate change seeing how bitcoin takes an enormous amount of energy to digitally mine.” Gates simply replied:
I don’t own bitcoin. I’m not short bitcoin. So, I’ve taken a neutral view.
“Bitcoin can go up and down just based on the mania or whatever the views are, and I don’t have a way of predicting how that will progress,” Gates continued.
The Microsoft founder added: “I do think moving money into a more digital form and getting transaction costs down, that’s something the Gates Foundation does in developing countries. But there, we do it so you can reverse the transactions so we have total visibility of who’s doing what. It’s not about tax avoidance or illegal activities.”
Gates has been no fan of bitcoin. In an interview with CNBC in 2018, he, Berkshire Hathaway CEO Warren Buffett, and vice chairman Charlie Munger talked about bitcoin being worthless.
“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment,” Gates remarked. “I would short it if there was an easy way to do it.” BTC was trading at around $9,300 on that day. Since then, the price of the cryptocurrency has risen almost 511% to $56,805 at the time of writing.
Bill Gates Thinks the World Is Better Off Without Cryptocurrency Innovation
Another interview published Thursday where Gates talked about cryptocurrency was with The Wall Street Journal. Responding to the question, “What’s the one tech innovation the world would be better off without?” he said:
The way cryptocurrency works today allows for certain criminal activities. It’d be good to get rid of that.
However, Gates quickly added, “I probably should have said bioweapons. That’s a really bad thing. We shouldn’t have technology for that.”
According to Forbes’ real-time list of billionaires, Gates ranks fourth with a net worth of $124 billion. The first on the list is Amazon CEO Jeff Bezos with $189 billion in net worth, followed by Tesla and Spacex CEO Elon Musk with $182 billion, and then Bernard Arnault with $159 billion.
Meanwhile, Microsoft has been granted a patent for a “cryptocurrency system using body activity data.” This crypto-mining system leverages human activities, including brain waves and body heat, when performing online tasks such as using search engines, chatbots, and reading ads.
What do you think about Bill Gates’ remarks regarding bitcoin and cryptocurrencies? Let us know in the comments section below.
The mainstream has caught a whiff of the gains cryptocurrencies like bitcoin and ethereum have seen, but many people are not aware of the passive income crypto users are getting as well. While financial incumbents are giving people with savings accounts a measly 0.35% to 0.60%, digital currencies can give people 1-17% or even more by leveraging certain tactics.
Crypto Returns That Outpace the Savings Account
You may have heard the term “make your money work for you” in the past, and that’s what savings accounts do if they earn a percentage of interest over time. Certainly, a person can be a bit riskier and invest in stocks and such but with a savings account, the money simply sits there and accrues a return over a period of time. The more money held, the more interest an account will get but these days banks don’t like giving interest. We can see that some of the top banks in the world will only give 0.35% to 0.60% returns according to the best savings account rates on bankrate.com.
Now you can do the same thing with cryptocurrencies and get a much better annual percentage yield (APY). A lot of centralized exchanges offer anywhere between 1-12% in interest for staking or holding a digital asset on the trading platform for a period of time. For instance, on the trading platform Coinbase you can earn 1.25% APY for holding USDC. Coinbase aso offers earning rewards for staking algorand (ALGO), cosmos (ATOM), and tezos (XTZ). These three coins see payout rates either daily (ALGO), every three days (XTZ), and once a week (ATOM).
People can also leverage the exchange Crypto.com, which gives customers up to 2% to 6.5% per annum (PA) for a myriad of cryptocurrencies and up to 12% for holding specific stablecoins. Crypto.com users can choose an interest rate by selecting a term which can either be flexible, one month long, and three months long.
Flexible means you can withdraw and use the cryptocurrencies at any time and you can get 2% for supported crypto assets and 8% for stablecoins. A 30-day term with Crypto.com gets the person 4.5% for the average crypto asset, while stablecoins will get up to 10%. 90-day terms accrue 6.5% for coins like ETH and BTC, and stablecoins like USDC can get up to 12%.
Coinbase and Crypto.com are not the only exchanges or custodial solutions that offer interest bearing accounts. Other interest-bearing products are offered by Blockfi, Linus, Outlet Finance, Gemini, Kraken, Youhodler, Coinloan, Nexo, and the Celsius Network. Each and everyone has different terms and interest rates depending on the crypto asset being held.
Most of these platforms offer higher percentage rates for stablecoins, as fiat-backed crypto assets can get savers larger returns. Of course, custodial solutions are coins held with a third-party, and people opting to gather interest in this fashion should understand there’s a greater risk. A custodial platform could fake reserves, get hacked, or even run the business into the ground by making poor business decisions. As the old adage goes “not your keys, not your coins,” so holding funds on an exchange means you are trusting them.
Individuals who want to make passive income can also do so by leveraging noncustodial platforms and staking concepts. Staking involves using a proof-of-stake (PoS) crypto asset and the person needs a staking wallet to perform this function (validating transactions) in order to obtain stake. Similar to a savings account, staking simply means holding the asset and being rewarded coins for the amount the user holds. The more tokens held while staking, the more interest the user will obtain.
Currently, some people are staking ethereum (ETH) using the new ETH 2.0 staking feature. However, in order to earn ETH this way in a noncustodial fashion, the user needs a total of 32 ETH to participate. Although, the person can earn anywhere between 5% to 17% PA. People can also stake ETH in a custodial manner via exchanges like Kraken and Coinbase. The San Francisco exchange Coinbase gives “between 3-7.5% reward on any ETH that you stake.”
Defi Apps Built on Ethereum, Bitcoin Cash, Polkadot, and Tron
Additionally, besides staking, people who want to acquire yield-bearing returns on their crypto assets can do so by leveraging a decentralized finance (defi) application. There are numerous defi apps like Compound, Aave, Nuo Network, Ddex, and Dydx that can offer a person a return simply by providing liquidity or lending. A good portion of these noncustodial defi apps also provide higher yields these days for stablecoins.
Using these types of apps, people can earn returns based on a period of time with numerous ERC20 tokens like TUSD, LINK, DAI, ETH, WBTC, and USDC. Moreover, there are other blockchains that are moving toward creating defi ecosystems as well including networks like Tron, Bitcoin Cash, EOS, and Polkadot.
One example on the BCH network is the Anyhedge protocol developed by the General Protocols team, a concept that allows people to leverage BCH with the noncustodial application Detoken.
“The first product available on Detoken is the Anyhedge BCH-USD futures contract,” the team detailed when the app first launched. “This is a smart contract which allows users to Hedge or Long their BCH while earning funding premium. Users also retain control of their own money throughout the entire process.”
Make Your Money Work for You
All of the aforementioned platforms and tools offer people a chance to make their money work for them. Individuals can earn a return by doing something they probably were doing before they knew they could earn interest – simply holding. This decentralized form of liquidity will continue to grow, as long as the demand for crypto assets remains strong.
If mass adoption continues to increase, liquidity and potential earnings can only get better over time. Once the mainstream catches on to these massively larger interest rates than the banks’ petty 0.35% to 0.60% rates, it won’t be long before they will want to move their funds into something that gathers real interest over time.
What do you think about all the platforms and services that allow people to make passive income just by storing their crypto assets? Let us know what you think about this subject in the comments section below.
Crypto mining operations have been witnessing some changes within the industry in terms of locations. A recent interview with the CEO of the mining giant Bitriver, revealed that Russia is becoming a preferred hotspot for crypto miners.
Russian Mining Giant to Build Two Additional Facilities to Cope With the High Demand
According to Igor Runets, CEO and founder of the Russian mining company Bitriver, American and European investors are moving their infrastructure from China, Africa, and Latin America to Russia. The main reason behind the shifting move is the expensive costs of electricity in such regions.
That said, most crypto miners are looking to cut costs amid the bitcoin (BTC) bull-run seen over the last few months. Bitriver CEO told Kommersant that its existing capacity as a mining company is at the top. Runets said the company is hoping to reach 1 gigawatt (GW) “in the next 18 months.”
Such expectations encourage Bitriver to increase its capacity by building two new crypto mining facilities in Krasnoyarsk with 80 megawatts (MW) in total.
On the other hand, the firm seeks to establish another mining infrastructure in Buryatia in the Siberian region, with 300 MW of capacity.
However, its first stage will have an initial capacity of 100 MW. Per the CEO, the deadline set by Bitriver is by the end of summer of this year.
Increase in Wholesale Chinese Crypto Miners Customers
Other domestic mining companies are seeing several applications for crypto mining hosting. Sergey Arestov, the co-founder of Bitcluster, highlighted that a significant number of wholesale Chinese customer orders keep coming to the company.
He forecasts that the demand could witness “a strong increase in demand” starting in the fall of 2021, as the expectations for the BTC prices are still very bullish.
This trend on a large batch of orders made Bitcluster set a plan to expand their capacity by adding 60 MW at any point of 2021.
What do you think about this trend seen in crypto mining globally? Let us know in the comments section below.