The world of Bitcoin never sleeps. For investors and enthusiasts, staying updated is vital for making informed decisions. In the past week, several crucial events have occurred that could influence Bitcoin’s future. From strategic agreements and price predictions to illegal mining issues and government actions, here’s a summary of the most important moments in Bitcoin over the past week.
Bitcoin in the Last Week
Bitcoin Mining Chips from Block to Strengthen Core Scientific
One of the most notable announcements was the agreement between Block, the financial services company founded by Jack Dorsey, and Core Scientific, one of the largest publicly traded Bitcoin mining companies. This agreement involves Block providing Core Scientific with 15 exahashes per second (EH/s) in chips, which would represent a 60% increase in the mining company’s energized hash rate by June 2024.
Today, Core Scientific and @blocks announced an ongoing project involving Block’s latest bitcoin mining chip.
-Core Scientific and Block will work together on a new miner to democratize Bitcoin mining
-Block to supply Core Scientific with ~15 EH/s of new 3 nanometer ASIC mining… pic.twitter.com/nWDnaSG4Tm— Core Scientific (@Core_Scientific) July 10, 2024
Details of the Agreement and Its Implications
The agreement is significant not only in terms of volume but also highlights the quality of Block’s chips. According to Thomas Templeton, head of Proto Block, these chips are much more reliable, efficient, and durable than average. Templeton stated, “This agreement is a good example of how we envision our mining products driving the advancement and decentralization of the mining industry.”
Statements from Thomas Templeton About Block’s Chips
Templeton emphasized that this agreement will help drive decentralization and efficiency in Bitcoin mining, which is crucial for the long-term sustainability of the Bitcoin network.
The Catalyst Bitcoin Needs, According to Pompliano
In a recent interview on CNBC Squawk Box, Anthony Pompliano, a well-known Bitcoin investor and enthusiast, shared his predictions about Bitcoin’s future price. According to Pompliano, Bitcoin is on track for a bullish trend that will begin once the summer ends.
Pompliano’s Predictions About Bitcoin’s Price
Pompliano explained that historically, summer is a slow season for Bitcoin, as many investors are on vacation and not actively monitoring the markets. However, as we approach September, he expects more market participants to get involved, which will drive Bitcoin’s price upward.
Analysis of Market Behavior During the Summer
Pompliano also mentioned that the percentage of Bitcoin held long-term will likely decrease to around 50% as the price rises, with early BTC holders deciding to sell some of their holdings.
Illegal Bitcoin Mining Caused Havoc in Malaysia
Illegal Bitcoin mining has caused significant problems in Malaysia. According to Akmal Nasrullah Mohd Nasir, Deputy Minister of Energy and Water Transformation, the country has suffered losses of approximately $755 million due to electricity theft related to cryptocurrency mining between 2018 and 2023.
Government Actions and Their Results
The Malaysian government has intensified its efforts to combat this illegal activity, with six people being sentenced to six months in prison. Despite these measures, the problem persists, and authorities plan to further reinforce surveillance and penalties.
Environmental and Financial Impact
In addition to the financial impact, illegal Bitcoin mining also poses significant environmental issues, as Malaysia relies heavily on fossil fuels for electricity generation.
The U.S. Department of Energy is Preparing a New Survey on Bitcoin Miners
The U.S. Department of Energy (DOE) is preparing a second attempt to survey cryptocurrency mining companies about their energy use. This comes after a first attempt was halted by a Texas court lawsuit.
Key Questions for the New Survey
The DOE’s new survey will focus on three key questions: the most important factors in energy use in cryptocurrency mining, the type of data the agency should collect, and the availability of information that could reduce data collection costs.
Data Collection Process and Next Steps
The DOE is developing a preliminary proposal to be published in the Federal Register this quarter, followed by a 60-day comment period. After that, there will be a 30-day review process before making a final decision.
The German Government Resumes Bitcoin Sales
The German government has been actively involved in significant Bitcoin operations since seizing these assets in January. Recently, on July 12, the government resumed selling its Bitcoin holdings, transferring a total of 3,200 BTC across various platforms.
UPDATE: The German Government now has $1 of Bitcoin.
The German Government sent their entire balance of 49,860 BTC ($2.90B) to exchanges and market makers in the past 3 weeks.
2 hours after sending off their final batch of Bitcoin, the German Government received 0.0000321 BTC… pic.twitter.com/0PPUQsAkGP
— Arkham (@ArkhamIntel) July 13, 2024
History of Bitcoin Seizures by the German Government
The seizures occurred following the shutdown of a movie piracy website, and since then, the government has been liquidating these assets.
Reactions from the Crypto Community
The crypto community has criticized the German government for not selling Bitcoin at higher prices, suggesting that the government missed a significant opportunity.
Conclusion
The past week has been crucial for Bitcoin, with events that could have a significant impact on its future. From strategic agreements and optimistic predictions to illegal mining issues and government actions, these developments underscore the importance of staying informed in the dynamic world of Bitcoin.
FAQs
What impact will the agreement between Block and Core Scientific have on the Bitcoin market?
The agreement could significantly increase Core Scientific’s energized hash rate, improving the efficiency and decentralization of Bitcoin mining, which is positive for the network overall.
Why does Anthony Pompliano predict a rise in Bitcoin prices in September?
Pompliano bases his prediction on historical precedents, suggesting that market activity increases after the summer, which could drive Bitcoin’s price up.
How does illegal Bitcoin mining affect Malaysia’s economy?
Illegal mining has caused significant losses in Malaysia due to electricity theft, and it also poses environmental issues due to the reliance on fossil fuels for electricity generation.
What is the DOE seeking with its new survey on cryptocurrency mining?
The DOE aims to collect specific data on energy use in cryptocurrency mining to better understand its impact and develop informed policies.
Why did the German government decide to sell its Bitcoin holdings?
The German government sold its seized Bitcoin holdings to liquidate these assets, though it has been criticized for not taking advantageof higher market prices.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. The opinions expressed are those of the author and do not necessarily reflect the views of any affiliated organizations. Cryptocurrency investments are highly speculative and involve substantial risk. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any financial losses or gains you may incur as a result of the information provided in this article.
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