top of page

Energy - Friend or Foe?

Updated: Oct 29, 2021

GB Market Commentary 03/08/2021

by William Morris


Bitcoin continued its downward trend, over the past 24 hours, increasing its distance from the crucial $42,000 level. Support was found at $38,000, sinking marginally below this at 6am this morning. Since then, Bitcoin has further declined below this level. Nevertheless, many remain positive about the outlook for Bitcoin in the near term. If higher highs continue to be coupled with higher lows this may indicate a key signal for a bullish reversal. The next key support range will be found at $36,000.


Bitcoin / U.S. Dollar - 3rd Aug

Yesterday Forbes highlighted a July report by The American Bankers Association (ABA) which outlines crypto use cases for banks along with revenue models and regulatory issues. The use cases were listed as: “a store of value, custody / wallet provider, interest bearing accounts, payments, lending, exchange trading, broker dealer, insurance, network utility and asset management.” ABA acknowledged customer interest as the driving consideration for banks in offering access to crypto products. The report also highlighted that the current regulatory framework may leave “significant gaps in regulation and oversight.” Strengthening the idea that demand for regulatory consensus is growing from financial institutions, as well as customer’s, in order to facilitate mainstream adoption of cryptocurrency technology.


Following on from this, the ABA report flagged environmental concerns as a major risk for the crypto industry. In March 2021 Bitcoin’s mining energy consumption was estimated to have roughly the same annual energy usage of Sweden. With continued demand, Bitcoin will be mined into 2140, confirming the need for a drastic shift in how energy for mining has historically been generated. Green energy adoption in Bitcoin mining is increasing, in June last month green energy sources jumped 56%. Texas HODL Ranch is the first large-scale operation in Texas to be powered exclusively by wind and solar power, buying cheap energy when demand is low and turning off its rigs when demand is high.


Candela Coin, is utilizing blockchain technology so people can buy and sell electricity without using the existing electricity grid, as well as a protocol which requires solar-powered energy for mining. Networks are also becoming increasingly efficient, Ethereum’s transition to Proof-of-Stake, will reduce energy usage by 99.95%, in its London Hard Fork due to be implemented tomorrow. Adopting the fundamental cornerstones of the crypto community (e.g open source and decentralization) could dramatically further green technological capabilities. As well as radically benefiting the whole energy ecosystem, reaping the financial incentive that comes with this. Many mining operations are large enough to take their source of power into their own hands. Green energy and crypto should not be polarized, together they have the incentive and the financial ability to develop a new era of energy capability.


Comments


GB_CC_May_Digital Asset Trading_Whiteout
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • YouTube
  • telegram logo

GlobalBlock EU ApS is a company incorporated and registered in accordance with the applicable laws of the Kingdom of Denmark as virtual asset service provider, with registration number (CVR-number) 45126382. GlobalBlock EU ApS is wholly owned by GlobalBlock Holdings., a company registered in England and Wales with registration number 15929099 . GlobalBlock EU ApS is not a licensed financial services provider and is not supervised as such by the Danish Financial Supervisory Authority. GlobalBlock EU ApS is supervised with respect to anti money laundering by the Danish Financial Supervisory Authority within the scope of the Danish Act on Prevention of Money Laundering and Terrorist Financing and other legislation stemming thereof.

.
GlobalBlock Europe, UAB is a company incorporated and registered in accordance with the applicable laws of the Republic of Lithuania as a virtual currency depository wallet operator and virtual currency exchange operator, with registration number 306045642. GlobalBlock Europe, UAB is wholly owned by GlobalBlock Holdings Ltd., a company registered in England and Wales with registration number 15929099,  GlobalBlock Europe, UAB is not a licensed financial services provider and is not supervised by the Bank of Lithuania. GlobalBlock Europe, UAB is supervised by the Financial Crime Investigation Service under the Ministry of Interior of the Republic of Lithuania within the scope of the Law on Prevention of Money Laundering and Terrorist Financing of the Republic of Lithuania and other legislation stemming thereof.
 
Investors should be aware that cryptocurrencies are volatile investment instruments that carry a high degree of risk to the capital investment. The information in this website is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments or participate in any specific investment (or other) strategy. The products and services outlined on this website may not be suitable for all types of investors. The value of an investment can go down as well as up, and you may not get back the amount you originally invested. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary. It is your responsibility to ascertain whether you are permitted to use the services of GlobalBlock Europe, UAB based on the legal requirements in your country of residence. The information in this website is for information purposes only and is subject to change. No part of this website can be reproduced without written permission.


 Client fiat is held with GlobalBlock in accounts with BCB Limited,and does not meet the definition of Electronic Money (e-money). Client fiat and cryptocurrency are not “safeguarded” nor covered by any compensation scheme. Clients could potentially lose their cryptocurrency or fiat if something were to happen to GlobalBlock or, BCB.

Cryptoasset Notice

Cryptoasset services are provided by GlobalBlock Europe, UAB (“GlobalBlock”).   Cryptoassets are not regulated in any jurisdiction and the value of your assets can increase or decrease. You should note that your cryptoasset profits may be subject to Capital Gains Tax.

The service you obtain through the website or the app in the UK, contains cryptoasrvices not regulated by the Financial Conduct Authority. Please be aware that:

  • You will have no recourse to the Financial Ombudsman Service in the event of a complaint relating to cryptoasset services.

  • Your cryptoasset account is not protected by the Financial Services Compensation Scheme.

  • Cryptoassets may experience frequent price volatility resulting in a high degree of risk.

bottom of page