Cryptocurrencies closed in the negative in May. What awaits cryptocurrencies in early summer

Our Crypto Upvotes experts summed up results of May on the crypto market. And gave their forecasts for leading cryptocurrencies for the nearest future

May was the first month this year that Bitcoin closed with a loss in price. On January 1, BTC was trading around $16.5 thousand, on February 1 – $23.13 thousand, on March 1 – $23.15 thousand, on April 1 Bitcoin rate reached $28.5 thousand, and on May 1 – $29.3 thousand. By the last day of spring the price of BTC went down to $27.7 thousand.

But despite the BTC price decrease by 5.5% in May, it has grown by 67% since the beginning of the year. The total market capitalization of the cryptocurrency decreased by 3.3% in May, but has increased by 41% since the beginning of the year.

Last month on the cryptocurrency market went mainly in the decline in the prices of leading assets

The growth was observed only in certain projects, such as Ripple. And it was primarily due to internal fundamental reasons.

Otherwise, the correction in the cryptocurrency market within the uptrend of the beginning of the year continues. And to say that the market has found the bottom and will go into active growth, it is not necessary yet, says our expert.

May has not been very good for BTC so far this year, with almost 6% fall of the exchange rate. Despite this, we have not seen a strong collapse. For example, as it was in May of the previous few years. Over the past month, BTC and other major cryptocurrencies by market capitalization were in consolidation phase.

On May 25 the price of Bitcoin updated minimum of two months, sinking to the point of $25.8 thousand. But by the end of May BTC got out of this pit, and steadily crossed the point of $27 thousand.

This decline can be attributed to market instability caused by problems in the U.S. banking sector, says our expert. Recession inevitably leads to higher borrowing costs for individuals and companies. And investments are losing yields. So investors tend to invest in conservative instruments. Cryptocurrency traditionally fades into the background at this time.

The U.S. Treasury Department is actively working to reduce inflation. And if it succeeds, then the cryptocurrency segment of the market will go back to growth

Our experts say that even with the current Fed rate, Bitcoin will be able to stop the decline. And even begin to rise in price, albeit slowly. The same will happen to Ethereum and other popular cryptocurrencies.

The most important key events for the crypto market in June. These are reports on the U.S. business activity, inflation and unemployment index, which are published at the beginning of the month. Then after these reports, on June 14, there will be a Fed meeting on the interest rate. And the change of which could very strongly influence the rate of BTC and altcoins.

In case of good economic reports we may expect that the current price level will be kept. In this case, it will be a positive signal for the crypto market. And that will push the BTC price up, to the current resistance level of $31,000, and possibly higher.

Historically, June is considered a low month for Bitcoin. And for the past three years, its exchange rate has fallen in June, our experts remind us.

In May, Bitcoin was supposed to show BTC down to the $25k level. However, it fell slightly short of that target. At the same time, as in the case with Bitcoin, our experts also expect other assets to decline in prices in June.

For example, the correction target for Ethereum is at $1.6k. And other assets with high market capitalization, such as BNB, XRP, ADA, MATIC may also decrease by 5-15% in the first month of summer, our expert thinks.

As for the fundamental aspects, the attention of market participants remains focused on macroeconomics in the USA. Because the pause in rate hike at the June FED meeting is already built into the current prices. But in case of divergence with market expectations, cryptocurrency may decline synchronously with stock assets.

Important events in June among other top 30 cryptocurrencies

Among all cryptocurrency assets from the top 30, Litecoin (LTC) may be stronger than the market. That’s because the LTC network will be halving in August. It is historically bullish on the cryptocurrency exchange price. Also LTC can become one of the leaders of the subsequent market growth. And even if it won’t show good growth in June.

Our experts Crypto Upvotes note that in June several major unlocks of cryptocurrencies are expected. For example such as 1inch Network (1INCH) here will be released 16.6% of the total supply. And Blur here will unlock 6.62% of the total supply. Our expert warned that after unlocks there is usually a fall in asset prices.

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How the Lightning Network project solves the main problem of Bitcoin

Lightning Network protocol allows cryptocurrency payments almost instantly and without fees. Our experts tell us how the solution works, who supports it. And why it is not yet popular in the crypto market

When the Bitcoin blockchain was flooded with memcoins in BRC-20 token format in early May. The cryptocurrency faced congestion and prohibitively high fees. The world’s largest cryptocurrency exchange, Binance, was forced to shut down the ability to withdraw Bitcoins twice a day. Until an acceptable level of load on the network returns. Representatives of the exchange announced that its development team is working on integrating transfers through a solution called Lightning Network. Which, in their words, “helps well in such situations.”

The Lightning Network (LN) protocol is Bitcoin’s scaling system, acting as one solution to the problem of its limited bandwidth. With its help it is possible to carry out almost instant transfers of coins with minimal commissions.

The protocol concept was first introduced in a technical paper titled Lightning Network for Bitcoin: The Bitcoin Lightning Network: Scalable Off-Chain Instant Payments in 2015. It was authored by developers Joseph Poon and Thaddeus Drija. Since Lightning Network’s inception, the developer community has been working collectively to improve both the protocol itself. And on applications and tools that support LN transactions.

How it works

If we think of Bitcoin as a huge highway. And where countless vehicles (transactions) compete for limited space. The Lightning Network protocol acts as a dedicated lane. And which allows you to bypass a congested main road. This is achieved by creating special payment channels. In which transactions can take place instantly, with minimal fees and without the need to write each of them to the Bitcoin blockchain.

To open such a channel, participants in a coin transfer create a common address and fund it with a certain amount in Bitcoins. They can then transfer funds to each other. And the balance data on their addresses will be updated within the channel. When they close the channel, the final balance will already be written to the Bitcoin blockchain as a separate transaction.

Payment channels can be created using wallets or other Lightning Network enabled software. You can use someone else’s channel as an intermediary for transfers. And in this case, the one who opened it will receive a small commission. Since the transactions take place outside the blockchain. It is impossible to identify a separate identifier for a particular transfer. Or see its data in the blockchain browser.

What prevents this project from distributing

Despite the existing way of solving one of Bitcoin’s major problems. The Lightning Network protocol is still a long way from mass adoption. Both for private users and for businesses. The technical complexities involved in creating and managing the channels act as a significant barrier for ordinary users. LN-enabled cryptocurrencies. These tend to be non-commercial developments that suffer greatly in interface design and user experience (UX).

In addition, the lack of standards for protocols hinders the interoperability of LN-enabled software developed by different teams. This makes it difficult to connect new users. And integrating the protocol into large platforms, whose owners are obviously interested in cheaper and faster coin transfers. Another problem is the limitation of liquidity in channels. Participants are forced to block a certain amount of Bitcoin in the channel. And that in itself limits the amount of funds available for transfer and reduces the usefulness of the protocol as a whole.

The relative newness and limited acceptance of the Lightning Network creates a certain paradox. The fact is that few people trust the protocol without its widespread adoption. And its diffusion, in turn, is constrained by the relatively small number of stakeholders willing to use it.

This is largely due to the fact that the Lightning Network is itself a non-profit project. And its infrastructure development is done by volunteers. The opposite is the case with Ethereum. For example, network scaling projects like Polygon, Arbitrum, Optimism, zkSync. And others have already formed an entire industry and are worth billions of dollars.

Projects and investments

However, investors are supporting projects that integrate Lightning Network into their payment solutions. In August 2022, Lightning Labs raised $80 million in funding to develop the Taro. Which allows transactions with stablecoins using the Lightning Network. Investors in the project include former Twitter CEO Jack Dorsey and Robinhood payment company CEO Vlad Tenyev.

Also in the same period, the investment round was held by Strike. It managed to attract $80 million, which it will use to establish partnerships with major retailers to connect its own wallet. As well as acquiring for retail outlets on the basis of LN. Investors have cumulatively invested about $10 million in Amboss and Mash platforms. And both are also building LN-based payment solutions.

Bitcoin’s scaling is one of the cryptocurrency’s biggest challenges. As fees and network load increase, solutions to optimize transfers will become more and more relevant. The Lightning Network protocol is quite well-known in the community. But there are still a lot of things hindering its diffusion.

Simplifying user interfaces. And promoting interoperability and improving the overall user experience. These are also important steps toward making Lightning Network technology more accessible. Improving liquidity management and security measures. Just as important to instill confidence in users of this protocol.

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Miner earned $170,000 at the only chance of 489,000

A solo-mode miner was able to mine a block of Bitcoin on equipment with a processing power of 750 TH/s

On May 23, a single miner with a processing power of 750 TH/s. He successfully mined a block of Bitcoin numbered 790,958. This was reported by the administrator of Skrool pool Kon Kolivas.

The miner received a reward for the found block in the amount of 6.25 BTC (about $170,000 at the rate of $27,300).

Total hashing speed in the Bitcoin network on May 23 was 367.07 EH/s. 1 EH/s equals 1 million TH/s. Having a processing power of only 750 TH/s. This lucky miner had only 1 chance out of 489 thousand to successfully find a block.

Lucky miner – a member of the pool for solo-mining Skrool. And he will pay 2% commission (0.125 BTC, or about $3.4k). But in addition to the fee for mining the block, he receives a fee for the transaction. Which in this block was 0.249 BTC ($6.7 thousand).

With the current difficulty of mining with that kind of processing power, a miner can mine a block once every nine years on average. Meanwhile, the difficulty of mining the first cryptocurrency is growing. Since the beginning of the year, it has increased by 40%, and on May 18, the figure renewed its historical high.

Our experts note that in January 2022, a single miner with computing power of 126 TH/s mined a block of Bitcoin and received a reward of 6.25 BTC. And that was approximately $270,000 at the rate of $42,800. His odds were equal to one in 1.36 million

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Marathon Digital announces fundraiser of up to $1 million for Bitcoin developers

Mining company Marathon Digital itself has pledged up to $500,000 to develop the Bitcoin Core group by the end of 2023

Marathon Digital Holdings announced a partnership with Brink to raise up to $1 million to support Bitcoin developers Bitcoin Core. Marathon has promised to contribute up to $500,000 by the end of 2023.

Bitcoin Core is a client (software) for the Bitcoin network operated by an independent group of developers. They maintain the blockchain. And also write updates and make decisions on improvements to the first cryptocurrency network. They also maintain the main repository of the protocol on GitHub.

Brink, a non-profit company, is dedicated to supporting the Bitcoin developer community through scholarship and grant programs. The firm was founded in 2020 with funding from John Pfeffer and Vences Casares. The company’s website states that it is 100% funded by donations from individuals. As well as organizations that want to support the Bitcoin network and protocol.

Marathon and Brink have set a goal of raising up to $1 million for Bitcoin Core developers. They announced the fundraiser at the Bitcoin 2023 conference, taking place May 18-21 in Miami, USA. Marathon has pledged to double all contributions from other participants up to $500k by the end of the year, so if the amount of donations from third parties reaches $500k. Then Marathon Digital will also contribute $500k and the $1 million plan will be met.

Our experts note that Marathon Digital is one of the largest Bitcoin miners. The public U.S. company has tens of thousands of cryptocurrency mining devices in data centers in North Dakota, Ohio and Texas. At the end of the first quarter of 2023, Marathon had $1.3 billion in assets, and about $715 million of that was in hardware and $189 million in digital assets.

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MicroBT presents most powerful Bitcoin miner

This new product from the MicroBT WhatsMiner line of machines can deliver hashing speeds of up to 320 TH/s. At the same time, it outperforms similar devices from competitor Bitmain

Chinese mining equipment manufacturer MicroBT unveiled three new mining devices at the Bitcoin2023 conference in Miami. And one of which was the most powerful one currently available on the market.

WhatsMiner M53S ++, has a computing power of up to 320 TH/s with an efficiency of 22 J/TH. This device is more powerful, but more power-consuming. Compared to competitor Bitmain’s counterpart, the Antminer S19 XP Hydro, which produces speeds up to 257 TH/s and has an efficiency of 20.8 J/TH. MicroBT founder and CEO Zuoxing Yan said this.

Our experts point out that the efficiency of WhatsMiner equipment is measured in joules per terahesh (J/TH) – the amount of energy expended to generate one terahesh of hashrate. If the efficiency of the WhatsMiner M53S++ is about 22 J/TH. That means that this device uses about 22 J of energy to generate one hashrate terrahesh.

It takes 7,040 J to generate 320 terrahes per second.
In an hour, 25.34 million J
1 kWh = 3.6 million J
25.34 million / 3.6 million = 7.038
So the device will consume about 7 kW per hour

The other two models presented were the M50S ++, air-cooled and with a computing power of 150 TH/s, and the M56S ++. And also with immersion cooling, this unit can deliver 230 TH/s. The efficiency of both machines is 22 J/TH.

MicroBT believes that the energy crisis and global warming will lead to the modernization of power supplies for mining. And they call “green energy” the best solution. In this regard, MicroBT is working to make WhatsMiner devices better suited to the use of solar energy. That is, from an energy source that corresponds to the decentralization of the Bitcoin network.

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Bitcoin with memes formed a multimillion dollar market

Our experts tell us how BRC-20 tokens emerged on top of Bitcoin. And why trading in new memcoins led to a record increase in commissions

A new kind of token has appeared in the Bitcoin blockchain, around which there has been a serious speculative frenzy. Most of these tokens are so-called memcoins. Which are named after famous memes and carry no utility or functionality. In spite of this, they have cumulatively risen by tens of thousands of percent in a few weeks. And provoked a record increase in commissions for transfers within the BTC network.

A new mania around memcoins began with the PEPE coin. Anonymous developers launched it in April, and speculators inflated its capitalization to a billion dollars in just three weeks of its existence.

The interest in memcoins created in the Bitcoin blockchain comes from more familiar token-creating networks such as Ethereum or Solana. The excitement swelled to the point that the volume of trading in Bitcoin Frogs collection tokens (the equivalent of Bitcoin token format NFTs) from May 17 to 18 exceeded that of the NFT market’s main “blue chip” – the Bored Ape Yacht Club (BAYC) collection.

New BRC-20 standard

Tokens of the standard named BRC-20 (similar to ERC-20 in Ethereum). They are digital assets that can be created and transferred on the Bitcoin blockchain using the Ordinals protocol. This standard allows data to be written into satoshi and turned into tokens.

The Ordinals protocol has enabled the growth of memcoins placed on the Bitcoin blockchain. But they have no utility whatsoever. Instead, traders are buying them solely for speculative purposes. Tens of thousands of BRC-20 tokens have been issued since the protocol went live in March. And their combined market capitalization has exceeded $1 billion. The ORDI memcoin, which refers to the name of the Ordinal protocol. But probably not related to its developers, is the largest at the time of publication with a capitalization of about $300 million.

Amid high demand, cryptocurrency exchange OKX announced the launch of its own marketplace for trading BRC-20 tokens. And Binance previously announced plans to add support for them on its NFT platform.

The entire current capitalization of new tokens in the Bitcoin network is essentially taken up by memcoins alone. And the Ordinals protocol itself has severely limited functionality compared to Ethereum’s ERC-20 capabilities.

But BRC-20 could be a long-shot story. If the teams that focus on building infrastructure solutions on Bitcoin (wallets, bridges, credit protocols, etc.) now have money flowing in from major venture capital funds. Also, don’t forget that it adds to the attractiveness of Bitcoin itself, says our expert.

High commissions in BTC network

High commissions

High commissions

The result of the growing demand for memcoins was a surge in Bitcoin transaction fees. And a queue of unconfirmed transactions formed. Transactions related to BRC-20 filled the network. And led to a high load on it, causing the commissions paid to miners to reach the highest level since April 2021. Since the beginning of May, the average fees have risen about 1,500%, to $31 per simple coin transfer.

When Bitcoin’s transaction blocks are full, the transactions with the highest fees are confirmed first. The pending transactions are in a so-called mempool, waiting for confirmation. If under an adequate load on the network, transfers are confirmed in no more than 10 minutes on average. In this abnormal scenario it is possible to wait up to several hours for transfer confirmation. If not to send it with overestimated commission.

Bitcoin’s pool of unconfirmed transactions has skyrocketed from about 10,000 transactions to more than 350,000 transactions. And that triggered an increase in fees globally. But it turned out to be a lucky scenario for miners, whose income increased visibly.

In total, there were more than 4 million BRC-20 transactions in May. And that represents 60% of all Bitcoin transactions. For the first time in many years, a block of BTC transactions exceeded the fixed fee of the miner (6.25 BTC) who mined that block. This was due to the high demand for space in the blockchain, which was triggered by transactions involving the transfer or issuance of BRC-20 tokens.

Such a situation is abnormal according to our experts. Some Bitcoin developers have expressed dissatisfaction with high commissions. And declared about the fight against such tokens. Miners, on the contrary, benefit from the development of this standard. Which brings them more income from commissions. But on the other hand, blockchain congestion will reduce the popularity of Bitcoin. We need to look for a solution that will satisfy investors and miners, says our expert.

Effects and solutions to problems with high commissions

Bitcoin with memes formed a multimillion dollar market

BRC-20 tokens reflect the process of possible future experimentation in the Bitcoin ecosystem. Even if memcoins end up being a passing fad of the cryptocurrency community. They are already having a tangible effect. It may turn out that memcoins will spur developers to further experiment at the base level of Bitcoin. And that will lead to new scenarios for its use. And new sources of demand for space within transaction blocks. This, in turn, could lead to more sustainable commission growth.

The commission market is critical to the existence and security of the Bitcoin network. Because in the future they will have to compensate miners for the diminishing reward per block during subsequent halving cycles.

Rising transaction fees could also force leading cryptoservices to use “second-tier” technology to cut costs. When a sharp rise in fees forced the Binance exchange to temporarily suspend Bitcoin withdrawals. And its head Changpeng Zhao wrote on social media that he was considering adding Lightning Network support to the exchange. This is a fairly well-known, but not yet widespread second-tier payment protocol. Which is built on top of Bitcoin and designed for much faster and cheaper transfers.

Estimates of the implications of the popularity of BRC-20 tokens vary depending on who is making them. Miners, for example, are happy, of course, as their profitability has increased because of the load on the network. But ordinary users are definitely not used to paying a commission and still getting in a huge queue. That is why major market players are thinking about integrating Lighting Network, but it also takes time.

BRC-20 standard cannot compete with ERC-20

Importantly, BRC-20 tokens prevent Bitcoin from competing with Ethereum as a platform for smart contracts, especially at the basic level. A dynamic ecosystem of decentralized applications is deployed on the Ethereum blockchain. This includes credit protocols, NFT, games, social networks and other Web3 applications. Developers can create them using the Solidity programming language. Which allows a wide range of functions and program logic to be implemented. Bitcoin’s base code doesn’t come close to having those capabilities.

Some traders have managed to make high profits by trading memcoins. However, average market participants should be cautious. Historically, memcoins exhibit high volatility and low liquidity. And their prices often only show a decline after a collapse from their peak values during hype.

Perhaps in the future Bitcoin blockchain infrastructure projects will open up investment opportunities. But high fees will certainly remain a stumbling block, especially when the crypto market is bullish.

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British parliament calls to equate cryptocurrencies with gambling

Regulation of both ordinary financial services of trading and investing in cryptocurrencies will create a false sense of security among depositors, officials say

The U.K. House of Commons Treasury Committee argues that investing in “unsecured” cryptocurrencies like Bitcoin and Ethereum should be equated with gambling. Regulating the industry without such an approach could create an illusion of safety for investors in crypto-assets. That’s according to a committee report released May 17.

The House of Commons Treasury Committee is charged with examining Treasury spending, administration and policy. With all of its agencies and related bodies, including the Internal Revenue Service, Customs, the Bank of England.And the Financial Conduct Authority, the Royal Mint, and other government agencies. And the Financial Conduct Authority, the Royal Mint, and other government agencies.

Late last October, members of the U.K.’s lower house of parliament voted to recognize cryptocurrencies as regulated financial instruments. In their opinion, cryptocurrencies should be considered another type of financial assets, rather than a separate category.

The committee criticized this position in its report, saying that the government should take a different approach to regulating cryptocurrencies. To better protect consumers from losses due to the increased volatility of “unsecured assets,” such as Bitcoin and Ethereum.

Characteristics of cryptocurrency are more reminiscent of gambling than financial services.

Which is also supported by data on their consumer behavior, the report’s authors say. They argue that regulating trading and investing in crypto-assets as regular financial services would lead depositors to believe that the investments are safe, when in fact they are not.

In addition, the committee recommends that the government take a balanced approach to investing in cryptotechnology. And avoid spending public funds to support cryptocurrencies without a clear and profitable application scenario. It is not the government’s job to promote specific innovations for their own sake, the report warns.

Our experts point out that last year, the kingdom’s government set itself the goal of increasing London’s global competitiveness in the financial sector. And that includes the cryptocurrency industry. The U.K. is in the process of developing regulations for crypto-assets. According to the Ministry of Finance, they are aimed at realizing the government’s “ambitions. Which intends to make the country a leader in the cryptocurrency industry.

 

 

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What is Bitcoin halving and how it will affect its price

Our experts tell us what we need to know about Bitcoin halving. As well as when to expect it, and what impact it may have on crypto market

The fourth Bitcoin halving is about a year away. This event occurs every four years and historically serves as a bullish catalyst for Bitcoin’s price rise and popularity.

Halving is a planned reduction in the number of newly issued BTCs. Which are created and distributed to miners who perform transaction verification and validation on the network. This is embedded in Bitcoin’s software code to ensure that the total number of coins in the network never exceeds 21 million units.

Halving first took place in November 2012, when the reward per block was reduced from 50 BTC to 25 BTC. The second reduction occurred in July 2016, when the reward dropped from 25 BTC to 12.5 BTC. The third and final halving occurred in May 2020, when the reward dropped from 12.5 to 6.25 BTC.

The next Bitcoin halving is expected in April 2024. The reward per block will be reduced to 3.125 BTC, reducing Bitcoin’s annual inflation rate from 1.7% to 0.8%. The final halving will occur in 2140, when the last Bitcoin will be mined. And the total supply of coins will reach 21 million.

Bitcoin’s monetary policy is unique compared to most other crypto-assets, which tend to have inflation. Dogecoin (DOGE) has 2-3% inflation. And Solana (SOL) has long-term inflation of 1.5%. Ethereum has had a negative inflation rate since the blockchain switched to the Proof-of-Stake (PoS) algorithm. As the volume of transaction fees burned on the network exceeded the volume of newly issued ETH coins. Halving occurs not only in Bitcoin, but also in other Proof-of-Work (PoW) cryptocurrencies, such as Litecoin (LTC) or Zcash (ZEC).

Profits of miners

Now the main part of the miners’ profits comes from the distribution of rewards for a found block of bitcoin (newly mined bitcoin). And at which 6.25 BTC is paid out to miners about every 10 minutes. The annual issuance of new Bitcoins creates about $9.8 billion, creating additional selling pressure. Which the market is forced to absorb every year.

Despite the fact that the number of new Bitcoins mined per block is halved. The cumulative income of miners after each halving increased. This is due to the rise in the price of BTC. But when the number of new Bitcoins mined in each block approaches zero.Then miners will no longer be able to rely on rising prices to cover costs.

In addition to newly issued Bitcoins, miners also receive income in the form of transaction fees. It can be assumed that the commissions for this should increase. At the same time compensating miners for the decreasing income from the issuance of new Bitcoins. Right now transaction fees are only 2.6% of miners’ income as a percentage of the total reward per block found.

This year has seen an upward trend in transaction fees. This is largely due to the emergence and popularization of so-called ordinals or BRC20-tokens. These are analogous to NFT in the Bitcoin blockchain, which require space in a block. New experiments with second-tier technologies such as the Lightning payment network or the Stacks smart contract platform. So too could further increase the strain on the blockchain.

If transaction fees don’t rise appreciably. Or miners fail to find alternative sources of income. Then Bitcoin’s long-term viability could be in question. And subsequent halving will put additional pressure on miners.

How Halving will affect the price

If you estimate the price dynamics in three Bitcoin halving cycles over a two-year period. And beginning one year before each halving and ending one year after it, one can get an idea of Bitcoin’s price trajectory as the fourth halving approaches. Over such a two-year period in 2012, Bitcoin gained about 30,000%. And in 2016, 786%, and in 2020, 712%. If Bitcoin performs as well as in the last two periods, its price could reach the $220,000 mark in 2025.

However, past performance is no guarantee of future results. And there are many other factors influencing Bitcoin’s price. Moreover, as Bitcoin develops and becomes more widespread over time, its price may become less volatile and more stable.

Another expectation of halving is less pressure on the price due to sales, especially from miners. Miners are the most predictable sellers of Bitcoin. That’s because they need to cover the cost of maintaining operations by converting new Bitcoins into fiat money. With each halving, the structural pressure to sell decreases. And assuming demand stays the same or goes up, the resulting price should also go up.

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Investors will prefer Bitcoin to USD as a means of saving capital

Bloomberg reports on growing faith in Bitcoin among investors who fear a U.S. default

Investors would prefer Bitcoin to the dollar as a means of saving capital in the event of a U.S. government debt default. This is evidenced by the results of a survey Bloomberg Markets Live Pulse. Which was conducted May 8-12 with 637 respondents. 7.8% of professional and 11.3% of retail investors will choose the first cryptocurrency as a protective asset. And while the U.S. dollar will be relied on by 7.8% and 10.2% of investors from the two groups, respectively.

At the top of the list of defensive assets is gold. Despite the fact that the price of the precious metal is currently near its historical maximum ($2,000 per ounce). And it was chosen by about half of surveyed investors from both categories. On the other hand, the report notes the current shortage of alternative assets to gold for hedging.

The second most popular asset to buy in case of default were U.S. Treasury securities. Journalists see a certain irony in this, because it is these debt securities that will probably default. But even pessimistic analysts think. That holders of treasuries will be paid, albeit late, as the article says, which explains the choice of this asset. It will be bought in case of default by 14-15% of respondents.

In third place is Bitcoin, followed by the U.S. dollar, the Japanese yen and the Swiss franc. At the same time, more than 55% of respondents said that a default or even its approach would have a strong negative impact on the dollar as the global world currency. Also, our experts note that another 13.6% of respondents said that significant damage to the U.S. national currency has already been done and it can only increase further.

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UAE will build 250 MW mining centers in desert climate

Marathon Digital and Zero Two plan to launch two cryptocurrency mining platforms in Abu Dhabi this year at a total cost of $406 million

One of the largest U.S. miners, Marathon Digital, and developer Zero Two announced the creation of bitcoin mining platforms in Abu Dhabi (UAE). According to a press release, the Abu Dhabi Global Markets (ADGM) joint venture will begin building two mining centers under equipment with a total capacity of 250 MW.

Also Marathon Digital is one of the largest U.S. public companies. Which is engaged in cryptocurrency mining. It has tens of thousands of mining devices in Texas, North Dakota. And other states.  according to BitcoinTreasuries, the company ranks second behind Microstrategy in terms of Bitcoin ownership. It owns 12,200 BTC ($335.5 million).

Also Abu Dhabi-based Zero Two develops Web3 infrastructure solutions and digital assets in the emirate.

The site for 200 MW of mining equipment will be located in the “eco-city” Masdar. Another 50 MW platform will be built in the port area of Mina Zayed. Electricity will be supplied to the complex from the general power grid of Abu Dhabi.

Marathon’s share in ADGM will be 20%, Zero Two’s share – 80%. Capital investment by the companies in proportion to their shares will be about $406 million. The digital assets extracted will also be distributed according to each company’s shares twice a month.

The companies have developed a special immersion solution for ASIC-mainer cooling (liquid cooling) to operate the equipment in the desert climate. And they implemented new software for performance optimization. The new solutions were successfully tested during the pilot project.

It is expected that the mining centers will be launched by the end of 2023, their total hashing speed. Also according to the companies’ calculations, will reach 7 EH/s. Our experts note that according to BTC.com, the total global Bitcoin network hash rate as of May 10 is about 337 EH/s.

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