Tesla Considers Accepting Bitcoin Payments Once Again

Bitcoin was the first cryptocurrency in the world and still holds the largest market capital of all competitors. Bitcoin’s rise in prominence has been fraught. Critics have lashed the technology for its enormous energy consumption and related environmental issues. For this very reason, Tesla stopped accepting Bitcoin payments earlier this year. According to Reuters, Tesla CEO Elon Musk said that the automaker would’most probably’ accept cryptocurrency payments again.

Musk stated that the company would like to examine the use of renewable energy in Bitcoin before accepting the currency again. Musk stated that he wanted to do more research on the topic and confirm that renewable energy usage is at or above 50%. He also noted that there was a trend towards increasing this number. Musk added that it is likely that Tesla will resume accepting Bitcoin.

As the negative effects of Bitcoin mining were in direct contrast to the company’s reputation for being a positive force for change in this sector, the company was under fire. Bitcoin mining rigs consume a lot of electricity. Most of this electricity comes from highly polluting sources like coal and natural gas power stations. However, there is nothing to say that cryptocurrency cannot be mined using renewable electricity. Many miners have tried to switch to this source to reduce their energy costs and increase their profits. Fundamentally, however, many miners simply choose to use the cheapest electricity, regardless of its environmental impact.

Musk has been accused of manipulating cryptocurrency markets. His tweets regularly coincide with market shifts, and his Saturday Night Live appearance does the same. Musk stated that he might pump, but he doesn’t dump. He also said that he “[does]n’t believe in getting the market price high and selling.” It’s hard to see the point in purchasing a commodity to keep forever. However, there is no value in Bitcoin if it is never sold.

Tesla’s announcement about not accepting Bitcoin caused a rapid drop in its value. It dropped from $57,939 to $49,150 on May 12. The price dropped to $30,161 a week later and has remained steady in the thirties ever after.

Musk’s opinions will differ on whether he is a cryptocurrency investor or simply a fan of the burgeoning technology. It remains to be seen if cryptominers will use renewable energy in masse. This is a question that will remain elusive. Tesla could be accepting Bitcoin payments again if Musk keeps his word and miners make the switch.

Twitter CEO announces new Bitcoin based business named TBD for Square

Twitter CEO Jack Dorsey announced the creation of a new business that will focus on creating an open platform for developers for Bitcoin in Square, his financial payments company.

The new business is called ‘TBD’ and joins existing payment services like Seller, Cash App, Tidal. It was created ‘with only the goal of making it simple to create non-custodial permission-less and decentralised financial service, Dorsey stated in a tweet.

He said that # Bitcoin is our primary focus. Its title is TBD.

Doresy stated that the company will do this in open, just like the Bitcoinhardware vault.

Open roadmap, open development, open source. @brockm is the leader and builder of this team. We have some ideas about the initial platform primitives that we want to create,’ he stated.

Square announced last month that it will invest $5 million in a solar-powered, open-source Bitcoin mining facility. It is partnering with Blockstream Mining to provide blockchain technology.

This facility will serve as a proof of concept for a 100% renewable energy Bitcoin mine at large scale. The public can also see the economics of its build-out, including the ROI and operational costs.

Dorsey already indicated that it will be looking into making a hardware Bitcoin wallet for customers of Square, its digital payments company.

He stated in a tweet that the hardware wallet would be built entirely in the open software and hardware design process, in collaboration with the community.

“Bitcoin is open source for all.” He stated that it was important for us to create an inclusive product that offers a non-custodial solution on the global market.

Betting on Bitcoin, Blockchain Just Gets Easier

Although Bitcoin ( ) is down, it’s not dead. Many investors are still attracted to digital currency. As this universe develops and matures, there will be more options to access it.

This is a good thing for investors as the going rate for one Bitcoin was nearly $32,000 at late July 15. This price point is not accessible to many DIY investors. Exchange-traded Funds are being creative with crypto plays. They leverage a growing number stocks with correlations or ties to digital currencies to offer market participants equity-based exposure for Bitcoin and other cryptocurrency assets.

TheGlobal X Blockchain ETF ( BBCH).The latest addition to the fray is, which debuted Wednesday. LikeThis category has established playersBKCH must mention “blockchain” or a derivative thereof in their title. U.S. regulators have resisted the approval of a Bitcoin ETF dedicated to Bitcoin. This is evident by their refusal.

Investors shouldn’t assume that the BKCH has no credible cryptocurrency exposure. The opposite is true. Let’s find out why.BKCH has a lot of Bitcoin derivative exposure

The Solactive Blockchain Index is tracked by the newly minted BKCH. It provides exposure for companies that are interested in blockchain technology. This includes companies involved in digital asset mining and transactions, as well as companies in blockchain applications and digital asset hardware.

Investors need to remember that blockchain is not only the backbone for crypto transactions but also has many other applications. BKCH’s seasoned competitors reflect this, but the newer generation blockchain ETFs, such as the Global X fund provide greater exposure to digital coins, albeit via equities.

Take a look at the following information about the rookie ETF: Crypto exchange operatorCoinbase ( COIN),Bitcoin minersMarathon Digital ( MARA).AndRiot Blockchain ( ROOT).The fund’s 35% roster is made up of these funds. This is a great option for those who want to have Bitcoin exposure but don’t need to own it. BKCH’s blockchain credibility is also intact.

Global X research states that Bitcoin, the most well-known and largest cryptocurrency in terms of market capitalization, was the first widespread use of blockchain technology. “Bitcoin has not been compromised or hacked, it is not governed centrally, and transactions are transparent across the network, thanks to the unique features of blockchain technology.”Beyond the ordinary

BKCH, as mentioned above, is a hybrid fund that offers the best of both worlds. Its equity-driven exposure is limited to digital assets, but its allocations of blockchain are a draw. Take a look at the amount of corporate spending on blockchain initiatives. This has little to do with Bitcoin.

Global X adds that organizations will spend $6.6 billion in 2021 on blockchain solutions, a 50% increase over 2020. Global X predicts that by 2024, the total amount of blockchain solutions spending will reach $19 billion. This is a 48% compound annual rate (CAGR).

Blockchain technologies can be used to support supply chains, digital healthcare tracking, and smart contracts.

Bottom line: BKCH, an equity-driven Bitcoin ETF, has blockchain exposure. It could also be a fund that invests in blockchain and has Bitcoin ties. It could be an effective way to access two topics under one roof.

Incoming Squeeze? Bitcoin Shorts on Bitfinex Spike, BTC Long Positions Tap Fresh New Highs

BTC ( Bitcoin) and the digital markets in general have had better days. BTC reached an all-time high of $64K three months ago, but has fallen 48.66% over that time. Bitfinex saw a surge in USD/BTC short positions around 17 days ago. This was a level not seen since June 17, 2019,

Bitcoin hit its lowest price point for a while at $28,600 per coin 20 days ago. Today, the cryptocurrency is just 13.72% higher than that low price point. After the spike in short positions on June 25, things settled down on June 27, and shorts remained low. However, Bitfinex short positions are beginning to rise again today and some observers believe this is a bearish signal.

At the time this article was written, USD/USD shorts on Bitfinex have risen at least half a step towards the June 25 high. Bitfinex has recorded 13,600+ shorts of BTC/USD, while long BTC/USD positions have exceeded 2019’s all time highs.

51,000 Bitcoin Long Positions – Hope for a Quick Pump

On Monday, 51,100 long positions have been traded on the exchange. Both shorts and longs are continuing to rise. Although the number of long positions does not necessarily indicate a bullish outlook, it is indicative of optimistic sentiment by market participants, which suggests that they are hopeful for a rise in future trading.

The Ethereum short position chart pattern looks a little different from bitcoin’s. Shorts have increased in recent times, but have also begun dipping today. The ETH/USD long position also shows a divergence from BTC’s current long records. On Monday, ETH/USD longs were low on Bitfinex.

Simon Peters, Etoro’s market analyst, places much of the crypto market chaos on China’s digital currency mining problems and the regulatory climate globally.

Peters stated that both crypto assets ( BTC & ETH ) were affected by crackdowns in China as well as regulatory changes in different countries around the globe in a note to Bitcoin.com News Monday.

Bitcoin will emerge, but not right now.

– Bitcoin shorts continue to rise, as we said yesterday. – There are no notable outflows onchain.
Major levels: $31k and $36k

You don’t have to be a mess, patience is a virtue.

– Joseph Young (@iamjosephyoung July 12, 2021

A short squeeze may also be possible if there are USD shorts. A “short squeeze” in USD markets is not uncommon. When it occurs, it triggers a very fast pump that leaves short sellers behind and puts them in the land of liquidations. Short squeezes are most common in bitcoin trading when there is an unusually large amount of Bitcoin/USD short positions.

This can also happen to longs who are playing in a “long squeeze”. A sudden and significant drop in bitcoin’s price can also cause panic selling, and longs may be forced to liquidate.

Reasons to Rethink Adding Bitcoin to a 60/40 Portfolio

Millson’s example is illustrative: He found that a 1%-2% Bitcoin allocation to a 60/40 portfolio reduced total risk by 9% to 24%, while volatility was not affected.

However, Bitcoin exposures were more significant than expected. A small allocation of 5% contributed more risk than 60% to the portfolio and increased volatility by around 70%. Higher volatility and risk are associated with higher allocations.

1. Nerves of steel

Will advisors and investors hold on to crypto even when returns are low? According to Millson, Bitcoin dropped 50% between mid-April and June 25, 2021. This is not a new phenomenon for cryptocurrency.

He adds that those who were able to hold on during difficult times might have’reaped some benefits’. Is it worth the risk? According to him, a balanced portfolio that had a 5% Bitcoin allocation over the past decade saw a just under 15% return when it was sourced from bonds or equities. This was compared to a portfolio of 6.3% and 60/40. During the 11-year period, however CMBI Bitcoin index experienced peak-to-valley drops ranging between -41% and -93%.

Millson says that the non-Bitcoin 60/40 portfolio averaged 6.8% during these Bitcoin stress times. The standard 60/40 portfolio saw an increase of 1.9%, while the Bitcoin-infused portfolio lost three percentage points. He states that it can be hard to stay with portfolios that are failing when stocks and bonds do well.

2. Is Correlation Rising?

The lack of correlation between Bitcoin and stocks is a positive aspect of adding it to your portfolio. Millson discovered that Bitcoin’s rolling correlation with the wider equity markets is between 0.25 to 0.35. He says, “Yes, it’s still low, and it might fall back to near zero again but it’s still noteworthy.”

However, if correlation is not stable, the importance of where allocations are sourced will increase.

He concluded that advisors and investors who are considering adding Bitcoin to their portfolios should be aware of the product’s volatility. He noted that while past performance may seem strong, it does not necessarily predict future results.

Federal prosecutors net $19.2 million in sale of forfeited bitcoins seized in ID fraud scheme

Federal prosecutors announced Thursday that $19.2 million was owed to authorities by bitcoins confiscated in fraud cases. This is the largest forfeiture case in northern Ohio.

Mark Simon, a Toledo man sentenced to two-years in prison for conspiracy to launder and transfer false identification documents, was the one to be taken into custody.

Federal prosecutors stated that Simon, 37, created false identification documents such as driver’s licences, personal identification cards, and other forms of identification for Ohio, Michigan, and Utah residents. The documents were purchased by digital photos and false biographical data. He was paid using bitcoin cryptocurrency.

The scheme was discovered by state officials in 2015. In 2015, investigators in Springfield found fake ID cards in a bar close to Wittenberg University. Authorities tracked the identity of the victim online to Simon’s website. Simon was investigated by police in 2008 for creating fake IDs, but he never faced charges.

Authorities linked Simon and other people working with him to the cards after months of investigation, according to documents filed at U.S. District Court Toledo.

Later they searched Simon’s Toledo home and those of other suspects. Simon was seized by authorities with more than 500 bitcoins.

According to the indictment, they were worth more than $5.1million on February 23, 2018, two weeks after raids on the houses. Prosecutors released a statement stating that the bitcoins were once valued at $2.8 million.

Simon pleaded guilty to the charges in June 2019. The case involved the forfeiture of bitcoins by prosecutors. Bridget Brennan, acting U.S. Attorney for Northern Ohio, stated that the bitcoins were sold for $19.2million.

Many of the forfeiture proceeds are split between federal agencies and local police units involved in the case. It is also used to compensate victims of crime. Additional money is returned the U.S. Treasury.

Three other people were also convicted in this case, including Simon. According to court documents Simon suffered the most financial loss and the longest sentence in prison. All the other defendants received probation or a year in custody.

Bank of England: Any UK CBDC Will Be ‘Tens of Thousands’ Times More Efficient Than Bitcoin

As stated by the Bank of England’s fintech manager, the tech supporting central bank electronic monies (CBDC) may be”thousands of times more effective per trade” compared to bitcoin.

During his address in the Future of FinTech Conference on Thursday,” Tom Mutton gave attendees an Summary of the Bank of England’s current position on CBDCs. Much of Mutton’s address revealed the lender’s noncommittal fascination with the progression of a CBDC and its supposed commitment to maintaining money”accessible for so long as [individuals ] want to utilize it” But in addition, he addressed opinions in the 2020 poll on CBDCs performed from the lender.

Mutton supplied the Bank of England’s counterpoints to queries raised in the poll, for example, requirement to maintain privacy, raise public confidence and ensure fair access to this technology.

He also dealt with the concerns around Electricity and the environment, stating:

“Bitcoin, provided its functionality flaws and energy inefficiency, is on no account a relevant comparison for the form of technologies we may use in a centralized bank electronic money.”

Mutton urged eco-conscious U.K. taxpayers to not”throw the blockchain baby from all the bitcoin bathwater.”

Mutton’s opinions come as bitcoin along with other proof-of-work cryptocurrencies happen to be debated due to their influence on the surroundings. As firms such as Tesla reverse their position on bitcoin obligations because of issues over bitcoin mining carbon footprint, so central banks have been forced to take into account the ecological effect of CBDCs — theoretical ones such as the Bank of England’s.

In accordance with Mutton, the Bank of England’s CBDC can perform a part in the nation’s transition into a net-zero market. To accomplish this, Mutton emphasized, energy efficiency must be a core factor in the plan of this CBDC and ought to include analytics and data technologies which will enable the central bank to maximize the fiscal system to function as energy efficient as you can.

Texas Senator Claims People Are Flocking to Bitcoin Because US Is on ‘the Verge of an Inflation Crisis

This week that the United States senator in Texas, Ted Cruz, appeared on the Fox News television broadcast Hannity and also discussed the top crypto advantage bitcoin. Cruz told Hannity he considers individuals are buying bitcoin only because they think America is on the point of the inflation crisis.

Ted Cruz:”’We are Seeing Inflation — Why I Think People Are Likely into Bitcoin as a Hedge Against This’

After negative statements regarding bitcoin out of U.S. senator Elizabeth Warren in Massachusetts, the Republican senator from Texas, Ted Cruz, gave his view regarding bitcoin this past week. Cruz appeared on the Fox News television series Hannity using all the conservative host Sean Hannity. The Texas senator had a whole lot to say about Joe Biden and clarified that he believes the Biden government is endangering the American market and international policy.

“If you have a look in Biden’s foreign coverage and also you divide the globe into two classes, our friends and our opponents,” Cruz said during the meeting with Hannity,”Exactly what exactly does Biden do? He undermines and weakens our buddies systematically and over again.”

Along with talking foreign policy, Russia, also Nord Stream two, the conversation turned on into cryptocurrencies. “Alright, you have been hearing about it,” states Sean Hannity. “Bitcoin, cryptocurrency, what’s it? Why is it so large? What’s Bitcoin? What’s blockchain? What’s doggy coin?” Hannity requested.

The sponsor of the Fox News broadcast farther said that he has been”analyzing this and supplementing that with friends for probably countless hours,” in respect to crypto assets. The political commentator added that he’s”not in any manner offering financial information.”

Senator Cruz also discussed bitcoin and noticed that he considers the crypto advantage is visiting mass adoption since people are fearful about increasing inflation and also the Biden government’s proposed spending.

“I believe a part of why we are seeing folks visit Bitcoin is since we are on the point of an inflation catastrophe along with Joe Biden has suggested seven billion dollars in new spending” Cruz stressed throughout the meeting. “We are visiting inflation, which we are seeing timber moving up, houses moving up, oil moving up, gas going upenergy going up, commodity moving up. And I believe people are likely to Bitcoin as a hedge against it.”

What should you consider senator Ted Cruz along with also the political commentator Sean Hannity talking bitcoin about Fox News? Let’s know what you consider this topic in the remarks section below.