Grayscale Hires its Global Head of ETF After SEC Chair Pours Cold Water on Physically-backed Bitcoin ETF

ETF Veteran David LaValle said Grayscale is “in a unique position” because they “actually have a product in the marketplace, so it puts us in a great spot” while emphasizing that it’s now just a question of when and not if there’s going to be a Bitcoin ETF.

Grayscale Investments, the world’s largest digital asset manager, has hired ETF veteran David LaValle as its global head of exchange-traded funds.

LaValle, the former CEO of custom index provider Alerian, will drive the effort to convert the $25 billion Grayscale Bitcoin Trust (GBTC) into an ETF, to which CEO Michael Sonnenshein has said they are “100% committed.”

“This is an inspired hire IMO as Dave has been key person at Nasdaq, State Street, and more recently Alerian,” commented Eric Balchunas, Senior ETF Analyst at Bloomberg.

In addition to the ETF head, the asset manager is seeking to fill at least 10 other related roles. Just last month, Grayscale partnered with Bank of Mellon for ETF services following GBTC’s conversion.

“We’re focused on creating a number of products to be a world-class ETF issuer.”

“We’re in a unique position. We actually have a product in the marketplace, so it puts us in a great spot.”

If converted, GBTC would immediately become the third-largest commodity ETF with $60 billion SPDR Gold Shares (GLD) being the largest and $29 billion iShares Gold Trust (IAU) in second place.

GBTC is currently a closed-end fund, and this lack of ability for shares to be redeemed is why it trades at such hefty premiums and is currently at an 11.84% discount. This discount is very likely to collapse once it is converted into an ETF, LaValle said.

Grayscale has been ramping up its efforts to build out its ETF arm even as the US Securities and Exchange Commission (SEC) is showing no signs of approving a single Bitcoin ETF yet.

“Despite the fact that there isn’t a bitcoin ETF, it doesn’t mean there isn’t investor demand more broadly in the asset class.”

Support for the Unwanted

Meanwhile, US SEC Chair Gary Gensler gave a speech at the Aspen Security Forum on Tuesday where he shared that he is open to a Bitcoin ETF which complies with the SEC’s strict rules for mutual funds — one focused exclusively on Bitcoin futures, rather than a physically-backed one as the industry wants.

“SEC is like that one house on Halloween that gives out apples,” commented Balchunas on Gensler’s openness to a non-physical Bitcoin ETF.

The problem with this is Gensler is basically “open to approving something that investors don’t want,” Balchunas added, such a product will flop as seen with gold futures ETF DGL, which have less than 1% of the assets of physically-backed gold ETFs.

The Bitcoin Strategy ProFund is already experiencing this with only having a mere $500k worth of assets in a week. In comparison, the first bitcoin ETF approved in North America, the Canada-based Purpose Bitcoin ETF, amassed more than half a billion dollars in a week, which means in the US, these numbers could easily surpass a billion dollars.

“The “race” for bitcoin MFs, a weak undercard to the headline race for a physically backed bitcoin ETF. People forget NYDIG had a MF and it flopped,” said Balchunas.

“They are all going to flop. Gensler let these through because of the protections afforded by the 40 Act – and their ability to close if too much assets – but the irony is there won’t be any investors in them to protect.”

While in the last eight years, the SEC has yet to approve a single Bitcoin ETF, LaValle is hopeful, much like the majority of the crypto industry, and believes “now we’ve gotten to a place where it’s really not a question of if there’s going to be a bitcoin ETF, it’s just a question of when there’s going to be a bitcoin ETF.”

Read Original/a>
Author: AnTy

“Netherlands Must Ban Bitcoin Now,” says Director for Economic Analysis

Pieter Hasekamp is calling for a complete ban on crypto — mining, trading, and holding because they are only good at privacy which is used by criminals, while government money works just fine with “hardly any currency devaluation…although inflation is now slowly picking up,” he said.

The director of the Dutch Bureau for Economic Analysis is calling for a complete ban on the mining, holding, and trading of Bitcoin and other cryptocurrencies.

This comes after crypto trading platform Bitonic won its case against the Dutch Central Bank last month regarding the apex bank’s wallet verification requirement. The regulator formally acknowledged at the time that its requirement was unlawful and should have never been called for the purpose of crypto exchange platform registration.

Now, today in an opinion piece on the local publication FD which had 3.72 million visitors in May, Pieter Hasekamp, director of the Central Planning Bureau, said the bursting of the crypto bubble is inevitable, and the Netherlands needs to act now, or the consequences of the crash will be “too great.”

Pointing to Gresham’s law, “Bad money crowds out good money,” Hasekamp said Bitcoin fits this pattern with cryptos exhibiting “all the hallmarks of “bad money”’ — unclear origin, uncertain valuation, and shady trading practices.

That’s Not Going to Happen

According to Hasekamp, cryptocurrencies do not fulfill the three functions of money, while government money “scores well in terms of value retention.”

Interestingly, the buying power of one euro (1€) has depreciated by a whopping 30% between 2000 and 2020 from 1€ to 0.7€. Hasekamp wrote,

“In recent decades, there has been hardly any currency devaluation. Although inflation is now slowly picking up, few people believe that we are returning to the figures from the 1960s and 1970s.”

All in all, the current monetary system works very well in practice, he said while arguing further improvements are conceivable through central bank digital currencies (CBDC).

While fiat currencies work so well, private cyber currencies “perform far worse than public money on all counts,” he added.

But Hasekamp did find one area where cryptocurrencies do better, and that’s in the privacy aspect, and “that anonymity is exactly what makes them attractive to criminals.”

As for its use as a store of value, Haskamp wrote that it is based on the hope that cryptocurrencies will one day replace real money, “but that’s not going to happen.” He wrote,

“Cryptocurrencies are essentially neither money nor a financial product, but… a contagious story in which people believe because other people believe in it. Gresham’s law is replaced by Newton’s law: what goes up must come down. The ultimate collapse of the crypto bubble is inevitable.”

As countries take steps to curb the crypto hype, Hasekamp wants the Netherlands to move fast and “ban Bitcoin” because “whoever moves last is the loser.”

He points out how China has already made its move by banning several crypto activities while the Netherlands is lagging behind. While the Central Planning Bureau concluded in 2018 that stricter regulation was not yet necessary, cautious regulation can now “backfire,” he said.

Regulation simply “legitimizes crypto as a bona fide financial product. Recent developments show that it is time to act: the longer we wait, the greater the negative consequences of the eventual crash,” said Hasekamp.

As such, he is recommending a total ban on the production, trading, and even possession of cryptocurrencies.

Read Original/a>
Author: AnTy

Morning Brew Replaces Gold with Bitcoin Because Simply Put It’s “Noteworthy”

Morning Brew Replaces Gold with Bitcoin Because Simply Put It’s “Noteworthy”

“We think our Markets section will be more relevant with bitcoin in it,” says the daily newsletter with over 2.5 million traffic.

“The time has come,” announces Morning Brew as it adds Bitcoin to its markets section and removes gold.

The daily newsletter website with over 2.5 million visitors gives its subscribers a stock market recap every morning, a few short briefs on the most important business news of the day, and a small section with lifestyle content.

On Tuesday, the company announced that they have “finally” added Bitcoin because “Simply put: Its price is noteworthy.”

It then goes on to note how the flagship cryptocurrency has grown tremendously as an asset over the last decade. During this time, it has been “earning wider acceptance among Fortune 500 companies, institutional financial firms, and individual investors alike,” it says.

“We think our Markets section will be more relevant with bitcoin in it.”

This makes sense given that the price of Bitcoin has risen about 14.5x from the March 2020 low, surging to a new ATH of nearly $62,000 this month. Up more than 100% YTD, BTC is currently trading around $58.7k.

On the other hand, gold is down 9.56% this year so far, currently at $1,685 per ounce.

The precious metal along with oil has been removed from their market’s section to make space for Bitcoin and a “flex” spot which any stock can take, it could either be a tech stock or “Dogecoin (DOGE),” whichever asset made a notable move the day before.

Morning Brew has also put Bitcoin in its bio and clarifies that this in no way is an endorsement of BTC rather simply recognition that finance is changing just like anything else, and they want their newsletter to reflect that.

“All these changes were made to make the market data you read in the morning, more relevant, more timely, and more useful Now go ahead and party on bitcoin bulls, the day is yours,” it concluded.

In other news, Chipotle is also promoting Bitcoin, putting it in its bio and tweeting “bitcoin anyone?” which apparently is part of their “Burritos Or Bitcoin” giveaway of $200,000 to celebrate National Burrito Day, making Chipotle the first U.S. restaurant brand to offer a cryptocurrency giveaway to consumers. Or it could be an elaborate April Fools day prank since the contest takes place on April 1st. But either way, it is drawing a lot of attention to Bitcoin.

Read Original/a>
Author: AnTy

Lindsay Lohan Wants You to Buy Her NFT on Ethereum, Because ‘Bitcoin is the Future’

Lindsay Lohan Wants You to Buy Her NFT on Ethereum, Because ‘Bitcoin is the Future’

“Bitcoin to the moon,” tweeted actress Lindsay Lohan, which received a lot of interest from the crypto community and, at the same time, sent the price of Bitcoin reeling to $43,750, but it’s all better now as today we are back above $47,800.

However, soon Lohan’s vision of Bitcoins’ future revealed her mission. “Bitcoin is the future, happening now. Support my vision of empowerment by collecting this 1 of 1 NFT from Rarible,” tweeted Lohan soon after.

“I believe in a world which is financially decentralized and the power of dreams to be the core lightning network of humans,” reads her art’s description.

With this, Lohan has joined in on the NFT craze as he announced “Lindsay ‘Lightning’ Lohan” for a whopping 45 ETH worth $78,530.38. It further states,

“Here is my first Digital Collectible from which I shall donate to charities that accept Bitcoin to empower younger generations in order for them to adapt and learn about this revolution that humanity is witnessing.”

Her art is currently up for sale on growing NFT marketplace Rarible. RARI, the native token of the platform, is enjoying the news with an uptrend of about 25% as it surges past $11. The token has been on a strong uptrend ever since late January.

Lohan isn’t the first celebrity to put up her NFT on sale; as we reported, many are joining this burgeoning trend. Just last week, Linkin Park’s Mike Shinoda launched his very first NFT for $30,000 and decided to donate the initial proceeds of this first NFT to charity. Shinoda said,

“This should be very interesting for people who make unconventional art, or people who have been told their art isn’t art at all. Maybe it is. The community will decide.”

The billionaire owner of Dallas Maverick, Mark Cuban, is another one who has been taking a special interest in NFTs and even sold some. According to him, “DeFi and many other dapps changed everything,” which involves his perception of Bitcoin, which he says “is more than a SOV because of its swap utility.”

Read Original/a>
Author: AnTy

NexTech Panic Sold its Bitcoin on Dip Because of Double Spend FUD That Never Happened

NexTech Panic Sold its Bitcoin on Dip Because of Double Spend FUD That Never Happened

Bitcoin flowed from weak hands, NexTech, which moved back into cash, to strong hands, MicroStrategy, which bought 314 BTC for $10 million.

  • It didn’t even take one month for NexTech AR Solutions to panic sell their Bitcoin. The company couldn’t even weather the first dip of the bull season.
  • This week showed how Bitcoin flowed from the weak hands, NexTech, to strong hands, MicroStrategy, which bought 314 BTC for $10 million.

On Friday, the company announced that it had sold its Bitcoin ownership of approximately 130.187 Bitcoins with $200,000 in profit. NexTech first bought these BTC in late December and said they “may add more in 2021.”

“The average retail that stayed during the bear market is probably more sophisticated and stronger handed than the average institution that got in Q3/Q4 2020,” noted analyst Qiao Wang.

What’s even more surprising is the reason for this sale, double-spend, never even happened. NexTech CEO Evan Gappelberg said,

“This sale reflects our awareness that something potentially has changed with Bitcoin, which is seen as the digital version of gold. The news that has emerged is that a critical flaw called a ‘double spend’ may have occurred, which if true allows someone to spend the same Bitcoin twice, undermining faith in the system.”

He continued: “If the system is built on scarcity and faith in the system, then a ‘double spend’ would eliminate both -essentially destroying the store of value it was meant to be.” And this made him move back into cash.

The double-spending FUD was the latest one to permeate the cryptocurrency market, which propelled some people to sell their holdings.

As Andreas Antonopoulos explained in detail, this chain re-organization that happened Thursday is a “common occurrence that is part of Bitcoin’s normal operation.”

image1

Something good did come out of this as Google searches for “Bitcoin double-spend” spiked as people took time to understand it. It can be expected that they might refrain from falling for this FUD the next time, and instead of panic selling their BTC, buy the dips.

Read Original/a>
Author: AnTy

Tron (TRX) Defies Market Trend & Gravity to Climb the Ranks Thanks to DeFi Hype

You can hate him, you can love him, but you can’t ignore him because this marketer gets it done.

That’s right, Justin Sun, known for making announcements of announcements of announcements and who once called his own token “shitcoin,” does everything to keep his crypto afloat.

On Thursday, there has been a bloodbath in the majority of the markets with crypto markets experiencing a deep correction.

Following Bitcoin, which went down to almost $10,000 level, altcoins shed 20% to 30% of their values.

But one coin that was decoupled from the king and the general trend in the markets was Tron.

The token started surging right from the beginning of this week but gained momentum yesterday when it spiked 60%.

Although TRX did crash, 32%, as well, along with the rest of the market, it started the day strong and in the green. Still, the digital asset is currently in the green, though barely, while trading around $0.0390.

“TRX defying gravity while everything else including traditional markets are crashing,” applauded trader CryptoSqueeze.

These gains had TRX going to the level last seen in mid-June 2018, and making its way back into the top 10 cryptocurrencies. However, this digital asset that has a market cap of $2.67 billion is still 86% down from its all-time high of $0.30 made in July 2018.

Tron-based decentralized lending platform JUST, Sun’s foray into the DeFi world, was also on the up and up at $0.068 yesterday before finally feeling the heat and falling 22% today.

JUST then ventured into DEX as well as its liquidity pool, JustSwap, which surpassed 80 million worth of USDT within 10 minutes of its launch. This AMM reached $600 million in trading volume today, in just 17 days of its launch and also records transactions “two times higher than Uniswap,” shared Justin.

Justin is wasting no opportunity, and with that earlier this week, he also announced the launch of SUN Genesis Mining. This new venture comes with features like venture capital investments, private equity investments, no pre-mining or reserves for the team, and wholly operated by the community through its open-source smart contracts. He tweeted,

“We hope to use SUN to promote the development and possibilities of TRON’s DeFi self-governance community. I hope the entire crypto community may judge its success, not by its price, but instead by the indomitable spirit that underpins the SUN: its community!”

Read Original/a>
Author: AnTy

YFI’s Andre Cronje: Greed & ‘A Whole New Ponzi’ We Came Up With is Behind DeFi’s Insane Growth

  • “The current massive influx (in DeFi) is purely because of this new greed cycle that we’ve created seemingly out of thin air,” said Andre Cronje of yEarn.
  • Decentralized Finance (DeFi) is flying with more than $9 billion of total value locked (TVL) in this sector.

There is no doubt about the ongoing DeFi mania, which is glaringly obvious, especially in the way the unaudited protocols are locking in billions of dollars in less than a week of their launches.

Not to mention the skyrocketing prices of these DeFi tokens.

So, what is exactly driving this massive growth?

Greed is a pretty simple answer that has come right from the mouth of the horse. Cronje, the founder of DeFi darling YFI, the governance token of Yearn Finance in his interview with Chainlink said,

“I mean, the reason there’s such a massive influx of money right now is because people are making money in insane amounts and the reason they’re making money in insane amounts is because we came up with a whole new Ponzi.”

And the Ponzi, Cronje is talking about here is governance tokens, “which is this wonderful way where we give away free worthless tokens that for some reason people buy.”

The next wave then buys it so that the first wave can sell it, a cycle that then just keeps on repeating, while the token continues accruing more and more value.

YFI token gained popularity and a cult-like following for its most decentralized approach — zero supply, zero value, no VC funding, and no tokens allotted to the management.

The token hit an all-time high of $38,865 on August 31st, after its launch just over a month before that.

Also, “how economics work is that money comes to money,” shared Stani Kulechoiv, the founder of another popular DeFi protocol Aave.

It is “fake exposure” with those with capital deploying it in different protocols, minting tokens, and then selling them to those with only sufficient capital to buy them.

“It’s not fair,” for sure, but this is like the financial system, and “that’s how the market works,” Kulechoiv said.

The Real Thing

While all of this is making people wealthy by insane amounts, “it’s not the sustainable part of DeFi,” said Cronje.

But underneath it, all are also the protocols that are accruing value like the Synthetix ecosystem, Aave ecosystem, Compound, and the supporting tools like Chainlink. He said,

“These are the real things accruing value because they’re the ones that are going to be here in a year from now when this greed phase is over.”

According to Kulechoiv, in Synthetix or Yearn, one is optimization yields — using technology to get rid of efficiencies — and “that’s like the real growth that is happening.”

There’s substantial growth in things that we’re building, but then there’s the noise on top of them. It’s a dilemma in finance because the noise will always be there when people enter into financial markets with less knowledge, and they have to pay for that knowledge by actually buying things from other people, explained Kulechoiv.

Read Original/a>
Author: AnTy

Venezuelan Military Confiscates 315 Bitmain Antminer S9 Bitcoin Miners Over Lack of Permits

Venezuela, the country which has been struggling financially because of hyperinflation, has had quite a love-hate relationship with Bitcoin.

The government wants to push native digital currency Petro for citizens to use. However, the poor design and technical limitations of the Petro make it hard to use. A majority of the population prefers bitcoin as a bridge currency to help them store value as the value of the national fiat keeps receding.

In a recent development coming from the country, the National Guard, the country’s military has seized over 300 ASIC bitcoin miners from local miners for the lack of necessary paperwork and documentation for possessing that equipment.

Bitcoin mining in the country is not illegal, and electricity is also quite cheap; however, due to the government’s passiveness towards crypto, local bitcoin miners often have a run-in with law enforcement agencies.

The National Guard shared the news on Twitter and noted:

“In the PAC “Toll Guayana” of @GNB_BolivarD625, 315 Bitcoin machines that were transported in a 350 truck were retained, for not having the permission issued by the National Superintendency of Cryptoactive. #6Jul#FANB GNBCCuidandoDelPueblo.“

The National guard claimed that they were undergoing a routine check when they found a truck trying to pass through the Guayana’s Toll Military checkpoint containing 315 of Bitmain’s Antminer S9 Bitcoin mining machines.

When the driver was asked to produce the documents for those mining machines failed to produce the same. The military then seized the machines and alerted the National Superintendence of Cryptoassets and Related Activities (Sunacrip), the authority responsible for regulating cryptocurrencies.

The Bitcoin Mining Industry is Underdeveloped in Venezuela

Venezuela is one of the most oil and mineral-rich countries with abundant crude oil and diamond mines present in the country. The country is also among the places with the lowest electricity rates, which make it a perfect hub for bitcoin mining; however, due to the ongoing financial crisis and the corrupt government, the industry is quite underdeveloped.

Venezuelans have found Bitcoin mining to be a profitable way to earn Bitcoin and trade US Dollars against it, as the national fiat is not worth even the paper it is printed on. Bitcoin mining is legal in the country and requires those who want to operate bitcoin mining farms to register with the authorities.

However, the entrepreneurs and firms interested in the field avoid doing so to avoid coming under the radar of criminals and even corrupt government officials. One such Bitcoin miner in the country expressed his ordeal last year saying:

“I think I’m ‘marked’ by both the police and the community.”

Despite the fear of authorities and criminals, local Venezuelans are increasingly getting involved with bitcoin mining because the reward for mining outweighs the external threats.

Read Original/a>
Author: Silvia A

The Monsoons Are Just Round The Corner But Bitcoin Miners in China Aren’t Gearing Up

China is the Bitcoin mining capital of the world primarily because of the availability of clean hydroelectricity in abundance at an affordable price. This is the primary reason Chinese Bitcoin mining farms are responsible for over 60% of Bitcoin mining. With the monsoon season just around the corner and Bitcoin Halving less than a month away, this should be the perfect time for miners to invest in new mining pools and pieces of equipment.

However, the mining industry in China seems to have been affected dearly by the black Thursday crash or March 12 crash which saw the price of Bitcoin fall by almost 50%. And the monsoon season which would also mean the mining season does not seem to generate the same level of interest from the local mining industry.

It’s a catch 22 situation for miners, where the monsoon season would ensure cheaper fuel to operate their mining machines, but the falling price of Bitcoin would not help them make any profit. And if the Block Reward Halving in the coming month does not push the price of Bitcoin into bullish domain then it would make it even worse for them to continue as the reward per block would be cut to half. Huang Fangyu, co-founder of ValarHash which operates 1THas mining pool and sells cloud mining contracts shared the same concern saying,

“If bitcoin’s price doesn’t go up post-halving, then who’s going to buy new equipment to fulfil this capacity?”

A Lot Depends on the Price of Bitcoin Post Halving

Bitcoin Halving is considered to be a highly bullish event given it would cut the supply of Bitcoin produced per block to half. This means the supply of the Bitcoin would be reduced by half while the demand increases, which would take the price higher. The past events of Bitcoin halving have resulted in bullish rallies in upwards of 1000%, while that might not be the case this time around as the volatility has gone down significantly since the last halving. However, looking at the current price movement where Bitcoin is struggling to hold above $7,000 for the past month, the bearish tendency looks stronger.

Bitcoin network’s hashpower input (the computational power used by miners) has reached 113 million terahashes per second (TH/s) which comes from a range of mining machines in the market and in total Bitcoin is consuming about 6 GWh of electricity enough to power 600 US households for the whole year. The higher hashpower is also a sign of a secure and healthy network, as it suggests that the number of miners on the network verifying transactions is high.

However, if Bitcoin price fails to rise above its current $7,000 mark post halving, the older mining machines will not be profitable to operate which would be shut down, and it would, in turn, bring down the overall hash input on the network.

Bitcoin Mining a Dynamic Game

At the current rate and hash input, it would not be affordable for old mining machines to compete with the latest mining machines, however, Bitcoin mining is a dynamic game the lower hashrate input would also mean lower competition for the mined coins. Thus, it will encourage mining farms to buy older machines in times of lower hashpower input and once the hashpower rises above 120 million they might have to switch off the old equipment again. Valarhash’s Huang explained the same, saying,

“The hashrate after halving will drop to a point that older miners like the AntMiner S9 could become profitable again with electricity promotions by mining farms. Then the hash rate will go up and some will have to turn off again. That will be a headache.”

At present, the mining industry is keenly monitoring the Bitcoin price movement to plan their next move and whether they would be buying new equipment or have to wait for the hashpower to drop post halving to use older mining machines.

The Bitcoin’s Bearish Momentum pre-halving Surges Demand For Second Hand Market for Mining Machines

The current bearish momentum and dilemma of the mining industry over procuring new mining machines has sprung the second-hand market for the old mining machines. The old and used Antiminer S9s are being sold at very cheap price. One of the distributors on Alibaba.com is selling used Antiminer anywhere between $20 to $80. To put things in perspective, when these Antminers S9s were launched during the peak of the crypto market in 2017, they were being sold at around $3,000.

If Bitcoin price fails to pick up post halving these antminers can still prove to be profitable. If Bitcoin price even trades above $10,000 almost all of these mining machines would be profitable enough to run.

Read Original/a>
Author: Rebecca Asseh

Do Oil and Gas Producers Have An ‘Incredible Symbiotic Relationship’ With Bitcoin Mining?

Bitcoin’s biggest criticism is of its mining operation because of the high amount of electricity that its consumes without utilizing that energy for anything other than solving cryptographic puzzles. The bitcoin network has an estimated annual electricity consumption of 73.374 TWh. The skeptics have often pointed out that electricity consumption is significantly high which does not result in any direct output.

This debate over high electricity consumption also led to many discussions about whether Bitcoin should opt for a more environment-friendly mining consensus instead of the present Proof of Work. However, the Bitcoin community has discarded their ideas as they believe this is one of the most secure mining algorithms that ensures healthy competition among miners while keeping the network secure.

Amid all the outcries centered around Bitcoin’s electricity consumption, podcaster Marty Bent has revealed an interesting way that he’s been using to fuel his bitcoin mining machines and it could be the future of Bitcoin mining. Bent wrote a blog post on April 15th where he revealed that he has been mining Bitcoin for the past year with the Great American Mining (GAM) company, and has been using the excess gas formed during the mining of crude oil.

GAM made headlines when it established a small mining farm on a shipping container in an oil field in December of last year. This small step was a big leap towards encouraging Oil and Gas producers to step into the Bitcoin mining game and become a significant force in the Bitcoin mining industry.

Oil and Gas Companies Can Become Biggest Bitcoin Miners

Availability of cheap fuel is one of the key factors in Bitcoin mining and this is one of the key reasons China is one of the biggest contributors to the Bitcoin mining pool with over 60% hash input in the network. The Shenzhen province has vast amounts of surplus clean hydroelectricity available at dirt cheap prices making it a mining hub. Similarly, many other parts of the world have attracted miners based on how cheap electricity is, given Bitcoin mining rigs consume a ton of electricity.

Most of the oil and gas mining fields release this byproduct gas which they consider as waste, however, GAM uses it as a fuel for Bitcoin mining operation which makes it a win-win situation for both of the parties. The Oil and Gas fields can sell this gas to bitcoin mining farms like GAM, which would then create an extra stream of income, while Bitcoin mining farms can have access to the fuel at a cheaper price without wasting electricity. Bent explained,

“You’re seeing a trend now, where even centralized locations are adopting. Instead of building like a large warehouse and doing all the infrastructure, they’re actually using the container model as the way to build on-site…. a year or so ago, that wasn’t the case at all. And now you’re seeing very, very large places, you know, stack 40, 50, 60 containers… it’s just cheaper to do it that way.”

Bent also believes that there is no need to build the super infrastructure in the form of warehouses for mining farms as stacked shipping containers could be used for the same task. He explained that if these shipping containers are designed correctly, “containers filled with Bitcoin miners would offer superior productivity and up to 5x more profitable than sending the gas through a pipeline to sell.

Are Shipping Containers Fueled by the Gas By-products Catching up with the Mining Trend?

While the idea might seem innovative and new, the industry experts seemed to have taken a notice quite early of this trend. Bent believes that this concept is gaining traction, and one of the most popular crypto names, the Winklevoss Twins have already invested in a mining company called Crusoe Energy Systems which works on the same principle of utilizing the gas by-product as a source of energy for Bitcoin mining. The trend is also quite popular in Canada and where several Canadian firms are utilizing the Oil and Gas industries by-product waste as a fuel.

Bent believes the use of the by-product from the Oil and Gas industry will not only help in reducing the use of commercial energy supply, but it would also make the Bitcoin mining industry more distributed and diverse geographically. He also believes that the use of these by-products can actually push America to the top in the Bitcoin mining game which is currently heavily dominated by China. He said,

“We are still very early in this game and on our personal journey at GAM, but we are confident that we will see this vision come to fruition over the course of the next five years. We could definitely fail (unless the government starts bailing out bitcoin miners), but we’re sure as hell going to try.”

Read Original/a>
Author: James W