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Ethereum will no longer be mineable- Announced changes

Ethereum will no longer be able to mine.

The authors of the second most popular cryptocurrency in the world have announced major changes, which primarily concern mining, ie the creation of new Ethereum.

Well, that doesn’t seem to be the case anymore.

Ether, like Bitcoin, is created by very fast computers solving complex tasks.

When the task is solved, Ethereum is obtained and everything is written in the blockchain.

The problem is that this process is very demanding and consumes a huge amount of energy, and very powerful machines are needed.

That is why mining is banned in many countries.

Now that is changing, so the concept of proof-of-work, which existed until now, will no longer be possible, but only a new proof-of-stake.

This means that Ethereum owners are becoming so-called validators.

The more Ether you have, the greater the chance that you will be a validator who will stack transactions into blocks and get a reward for it.

And since validators use their own cryptocurrency to invest, they are motivated to do so.

If they do not participate in the process, their invested ether begins to decline.

Everything should work and ensure high security of transactions and ownership of cryptocurrency.

These changes should reduce energy consumption by 99 percent and make mining machines virtually unnecessary.

Critics of the process point out that this change is similar to the replacement of the engine on the plane during the flight.

Others complain about the fact that cryptocurrencies are not safe because such changes are possible at all.

Biden is also hitting cryptocurrencies: the United States is preparing a new strategy

US President Joe Biden is expected to sign an executive order this week, which will present the government’s strategy on cryptocurrencies.

The order will instruct federal agencies to study potential regulatory changes, as well as the effects of cryptocurrencies on security, the economy, and financial stability.

The comprehensive order includes an examination of the central bank’s digital currency(CBDC) and the environmental impact of cryptocurrency mining.

The Federal Reserve will examine the CBDC(Central Bank Cryptocurrencies). The Fed’s board of directors began consultations on the CBDC on January 22.

The Environmental Protection Agency and the Office of Science and Technology would conduct a study on the impact of digital resources on the environment.

Individual agencies are expected to report their findings later this year.

The order, which was drafted last year, was supposed to be signed at the end of February, the week when Russia invaded Ukraine.

Crypto exchange Binance is buying a stake in Forbes for $200 million

The world’s largest cryptocurrency exchange, Binance, is planning a strategic investment of 200 million dollars in Forbes, a publishing company and a magazine with a tradition of 104 years, CNBC has learned.

The funds will help Forbes implement the planned listing in the first quarter by merging with a special purpose vehicle for acquisitions, or SPAC, which is listed on the market, sources familiar with the agreement told American television.

Binance, probably the most popular platform for crypto limit orders will take over from institutional investors half of the $400 million in liabilities announced by Forbes in August.

This will make Binance one of the two largest owners of Forbes, and this publishing house will be listed on the New York Stock Exchange under the symbol FRBS, which is added in the text.

The crypto company will also get two seats on Forbes’ nine-member board of directors.

The move points to a growing real-world impact on the crypto sector, which is growing in value and creating a new class of billionaires due to global interest in digital assets.

This is the first major investment by a crypto company in a traditional medium in the United States.

Forbes founded the grandfather of editor-in-chief and two-time presidential candidate Steve Forbes more than a century ago.

In 2014, the publishing house sold a 95 percent stake in Integrated Vale Media, based in Hong Kong, for 475 million dollars.

Forbes is known for its annual ranking of the richest businesspeople in the world.

Various countries are considering banning cryptocurrency mining due to high energy consumption

The announcement by the Kosovo authorities that they would temporarily ban the mining of cryptocurrencies resulted in the sale of more equipment needed for this activity.

The government of this country has decided on a ban in order to alleviate the energy crisis.

Among other things, the equipment used for cryptocurrency mining consumes a lot of electricity.

These are extremely high-power computers.

Cryptocurrency mining in one of the poorest countries in Europe is very attractive.

One Bitcoin is traded for more than 37,700 euros.

On the other hand, the price of Kosovo’s electricity is the lowest in the Old Continent, and the reason for that is that 90 percent of electricity in domestic production is obtained from lignite, which this country has in large quantities.

In addition, the government subsidizes energy bills.

According to the online edition of the Guardian, it is assumed that this mining is most present in the north of Kosovo, where the predominantly Serb population lives.

Most of them do not recognize the independence of Kosovo and, according to the British paper, have not paid for electricity for two decades.

The number of cryptocurrency miners was increasing and they managed to make good money on it.

However, it seems that the decision of the Kosovo government is a bad time for cryptocurrency mining.

This raises the question of the future of mining Bitcoin and other cryptocurrencies.

The University of Cambridge has calculated that mining Bitcoin consumes 125.96 terawatt-hours of electricity worldwide annually.

This is more than the total annual electricity consumption in Norway, Argentina, the Netherlands, and the United Arab Emirates.

The inability of the Kosovo government to meet the need for increased electricity consumption has resulted in an energy crisis.

Many households were left without electricity and electricity prices went up.

Due to that, the authorities were forced to import electricity and subsidize its payment to households.

Kosovo is not the only country that has banned cryptocurrency mining.

It was announced that this will be done in China, which is the world’s largest industry for this activity. They also decided on a ban in Iceland.

It is likely that mining of this kind will be questioned by the authorities of the United States of America, Kazakhstan, and Russia.

Among the most important reasons for that is the high electricity consumption.

Mask solved the biggest mystery of cryptocurrency? “I think this man created Bitcoin”

The world’s biggest cryptocurrency mystery – the true identity of the person who created Bitcoin, known as Satoshi Nakamoto, is still unknown.

However, the richest man in the world, Elon Musk, claims that the Hungarian cryptocurrency expert Nick Szabo could be Nakamoto writes Russia Today.

“You can look at the evolution of ideas before the launch of Bitcoin and see who wrote about those ideas,” Musk told artificial intelligence researcher Lex Friedman on his podcast.

The leader of Tesla also rejected claims that he could be Satoshi, saying that he would not hide it.

Musk said that he cannot say with certainty that he knows who created Bitcoin, but Sab’s theories seem to him to be the basis of the first cryptocurrency.

“It seems like Nick Szabo is probably, more than anyone else, responsible for the evolution of these ideas,” he said.

“He claims that he is not Nakamoto, but it seems that he is more responsible than anyone else for the ideas that led to Bitcoin,” Musk stated.

In 2014, a team of researchers studied Nakamoto’s document on Bitcoin together with the writings of Szabo and 10 other potential creators of this cryptocurrency.

“The number of similarities between Sab’s writing and the Bitcoin White Paper is incredible,” they said, adding that “none of the other possible authors were nearly as accurate.”

Before Bitcoin was launched in 2008, Szabo commented on his blog “the intention to create a living version of a hypothetical currency”.

He developed the mechanism of digital money known as Szabo Bit Gold between 1998 and 2005.

However, this cryptographer, also known for his research on digital contracts, has repeatedly denied that he was the inventor of Bitcoin.

Mexican Group Elektra has accepted Bitcoin as a means of payment

The Mexican retail chain Grupo Elektra has accepted Bitcoin as a means of payment, and now considers the BTC lightning network.

This is another in a series of companies in Latin America that are opting for Bitcoin as a legitimate means of payment.

The spread of Bitcoin as a method of payment

Elektra is a chain of supermarkets and banks and is part of the Mexican group “Grupo Salinas”.

As a convenience for paying with Bitcoins, Elektra offers a 20% discount on the amount of the bill.

Mexican billionaire Ricardo Salinas Piego said that Elektra was the first market chain to accept Bitcoin as a method of payment.

He believes that with this move, he matted the competition.

Payment will be made through PitPay, the US Bitcoin payment service.

Salinas is one of the richest people in Mexico and the owner of Banco Azteca, a banking business.

In June, he announced that his bank would be the first to accept Bitcoin currency.

The governor of the Bank of Mexico, Alejandro Diaz de Leon, warned him on that occasion that, due to its instability, Bitcoin is a high-risk investment.

We remind you that El Salvador was the first country to adopt Bitcoin as a legal tender, in addition to the US dollar.

The low-cost Mexican airline “Volaris” followed this example, announcing that it would accept Bitcoin in El Salvador.

Is Bitcoin a safe haven for investors?

Crypto supporters argue that unlike the dollar or any other traditional currency, a digital coin is designed to have a limited supply, so it cannot be devalued by a government or central bank that would distribute too much of it.

At a time when most central banks in the world are “printing” fresh money and “pumping” it into the system to provide the necessary liquidity due to the crisis caused by the Covid-19 pandemic, it is expected that more money will lead to a decline in its relative value.

Inflation in the United States reached its highest value in the last three decades in October.

An increase in prices was recorded for both basic foodstuff and luxury goods.

The reason for this situation, in addition to “pumping” money, can be a constant lack of supply and high demand.

The US Secretariat of Labor announced that the October consumer price index, which measures how much consumers pay for goods and services, increased by 6.2% compared to last year.

It was the fastest 12-month growth since 1990 and the fifth month in a row with inflation above 5%.

This would mean that if inflation of 6.2% remained at the same level for 10 years, the current $ 100,000 would become $54,800.

This situation spreads concerns and burdens investors, forcing them to look for ways to preserve the value of their money.

The traditional way to protect against inflation is to invest in gold, but other ways have emerged in modern business conditions.

Cryptocurrencies are considered to be one of the most popular, with Bitcoin leading the way.

Bitcoin as a custodian of value

Cryptocurrency owners are in a unique position and benefit from these latest developments or at least gain refuge from them.

Namely, the decline in the value of fiat currencies, such as the dollar, has highlighted the dominance of Bitcoin and other altcoins when it comes to hedging against inflation.

Bitcoin has broken another record and is on the verge of reaching $69,000 for the first time after inflation data prompted arguments about Bitcoin as a custodian of value.

The largest cryptocurrency by market value rose as much as 1.9% to $ 68,991 last Wednesday, surpassing the previous high set at the beginning of the week in New York.

According to Bitcoin Stimulus, Americans who invested their $ 1,200 checks in April 2020 as part of a state support program in Bitcoin now have a BTC worth $12,172, an increase of 914%.

Crypto supporters claim that unlike the dollar or any other traditional currency, a digital coin is designed to have a limited supply, so it cannot be devalued by the government or the central bank that would distribute too much of it.

That is why Bitcoin and other cryptocurrencies can be good custodians of the value of money and a safe haven for all investors and traders.

Indonesia’s highest religious body bans cryptocurrency trading!

AFP reports that Indonesia’s highest religious body has declared that Bitcoin and other cryptocurrencies are banned under Islamic law and should not be traded in the world’s largest Muslim nation.

A powerful council of ulema has issued a fatwa, or religious edict, while trading in virtual currencies is increasing in Indonesia and elsewhere.

Fatwas have no legal effect in the country of Southeast Asia of 270 million, but the declaration could potentially convince many Muslims to avoid cryptocurrencies.

After Thursday’s meeting, the Council compared cryptocurrencies to gambling, which is haram, which is prohibited by Islamic law.

Cryptocurrencies as commodities or digital assets are illegal to trade because they have elements of uncertainty, bets and damage

religious decree chief Niam Sholeh told AFP.

It’s like a gambling bet

he said.

According to him, digital currencies are not tangible assets and their value can vary significantly, thus violating Islamic law.

Transactions in Indonesia, based on cryptocurrencies, amounted to about 370 trillion rupees ($26 billion) in the first five months of 2021, an increase from a year earlier, Trade Minister Mohammed Lutfi said in June.

The edict comes after the Central Bank of Indonesia said it was considering issuing its own digital currency.

In 2019, the Aceh Provincial Council branch issued a fatwa about the extremely popular but brutal online game PlayerUnknown’s Battlegrounds (PUBG) for fear of inciting real-world violence.

It recently issued a fatwa against online lending while announcing that COVID-19 vaccines are allowed under Islamic law, even if they contain pork products, which are usually banned for Muslims.

After the information about inflation in the USA, the fall in prices on the cryptocurrency market

Most cryptocurrencies are declining today.

According to the website Coingecko, the market capitalization decreased by 1.98 percent and amounts to 2.98 trillion dollars.

Bitcoin, which has reached its maximum value several times in the past few days, has fallen below $65,000 today.

It fell by 3.0 percent compared to yesterday, and it is currently traded at a price of 64,918 dollars.

Ethereum has lost 1.2 percent of its value and is currently trading at $4,672.

The fall in prices on the cryptocurrency market followed yesterday when the US Department of Labor announced that inflation, measured by the growth of consumer prices, jumped to 6.2 percent in October compared to the same month in 2020, to the highest level since December 1990.

After a few days of dormancy, the price of Bitcoin jumped again

The cryptocurrency market has seen a strong rise in prices in the last 24 hours.

The market capitalization has climbed 4.3 percent and currently stands at $3.01 trillion.

Bitcoin, the most famous cryptocurrency in the world, has increased its value by 6.6 percent in the last 24 hours and is currently traded at a price of 65,990 dollars.

Ethereum increased its value by 4% in the same period and is currently traded at a price of 4,741 dollars.

The bank predicts a huge jump in the price of Bitcoin

The largest American bank, JPMorgan, predicts that Bitcoin could jump to 146,000 dollars in the long run, if volatility subsides and institutions start to prefer Bitcoin more than gold in their portfolios.

That is approximately 130 percent more than the current price of Bitcoin, Business Insider writes.

JP Morgan also believes that Bitcoin, which is also a rare product, is increasingly gaining gold for investors’ attention as protection against inflation, ie as something that will grow even when inflation destroys the value of other assets.

The re-emergence of inflation concerns among investors during September and October 2021 seems to have renewed interest in using Bitcoin as protection against inflation

said JP Morgan strategist Nikolaos Panigirtzoglou.