People Are Losing More to Cryptocurrency Crime Than Ever; $4.52 Billion to be Precise

Users and customers lost roughly $3 billion from an alleged Ponzi scheme involving crypto wallet and exchange PlusToken.

Users and customers lost roughly $3 billion from an alleged Ponzi scheme involving crypto wallet and exchange PlusToken.

Cryptocurrency user and investor losses due to fraud and misappropriation in 2019 increased by more than five times, while hacks and thefts fell by 66%, the report showed.

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“We noticed a significant uptick in malicious insiders scamming unsuspecting victims or leaching on their users through Ponzi schemes,” Dave Jevans, CipherTrace chief executive officer, told Reuters. “Attacks from the inside of organizations lead to significant exits with major consequence to the crypto-ecosystem.” Since bitcoin’s launch more than 10 years ago, governments and regulators around the world have grappled with the opaqueness and lack of transparency in the cryptocurrency market that has led to massive losses for investors. Two large losses early last year were the main drivers for the surge, CipherTrace said.

Users and customers lost roughly $3 billion from an alleged Ponzi scheme involving crypto wallet and exchange PlusToken. The other significant loss was the almost $135 million that customers lost from Canadian crypto exchange QuadrigaCX following the unexpected death of its co-founder, according to CipherTrace. The CipherTrace report also found illicit cryptocurrency money service businesses – including crypto exchanges – have transmitted funds on the payment networks of almost all the top 10 U.S. retail banks.

Analysis further revealed that a typical large U.S. bank processes billions of dollars annually in undetected cryptocurrency-related transfers. “These clandestine operations create AML (anti-money laundering) compliance risks because criminals must find ways to launder ill-gotten crypto profits,” CipherTrace said in the report.

CipherTrace research found that banks globally paid more than $6.2 billion in AML fines in 2019.

Bitcoin Cash leads declines as largest cryptocurrencies start mixed

Referenced Symbols

The largest cryptocurrencies were mixed during morning trading on Monday, with Uniswap UNIUSD, -0.13% seeing the biggest move, rising 5.37% to $11.34.

Bitcoin Cash BCHUSD, -1.42% led the decreases with a 1.55% drop to $284.73.

Three other cryptocurrencies saw increases Monday. Ethereum ETHUSD, -0.46% climbed 1.57% to $2,598.87, and Polkadot DOTUSD, -1.39% rose 0.89% to $18.10.

Dogecoin DOGEUSD, -0.28%, which saw the smallest increase, climbed 0.58% to 14 cents.

In addition to Bitcoin Cash, four other currencies posted decreases. Ripple XRPUSD, -2.12% shed 1.14% to 60 cents, and Cardano ADAUSD, -0.22% slipped 0.81% to $1.03.

Bitcoin BTCUSD, -0.75% and Litecoin LTCUSD, -1.24% also recorded declines, falling 0.58% to $37,529.81 and 0.07% to $108.07, respectively.

In crypto-related company news, shares of Coinbase Global Inc. COIN, -4.54% rallied 2.62% to $182.24, while MicroStrategy Inc. MSTR, -3.39% increased 2.03% to $345.84. Riot Blockchain Inc. RIOT, -1.93% shares rallied 4.42% to $15.35, and shares of Marathon Digital Holdings Inc. MARA, -0.59% climbed 2.37% to $22.49.

Overstock.com Inc. OSTK, -5.65% climbed 4.42% to $45.00, while Block Inc. SQ, -3.46% rallied 5.68% to $116.65 and Tesla Inc. TSLA, -2.95% climbed 5.53% to $893.19.

PayPal Holdings Inc. PYPL, -3.19% increased 2.62% to $167.81, and Ebang International Holdings Inc. Cl A EBON, +13.77% shares rose 0.98% to 88 cents. NVIDIA Corp. NVDA, -3.30% rallied 3.49% to $236.36, and Advanced Micro Devices Inc. AMD, -5.33% rose 2.62% to $109.10.

In the fund space, the Bitwise Crypto Industry Innovators ETF BITQ, -2.13%, which is focused on pure-play crypto companies, increased 3.31% to $14.98. Blockchain-focused Amplify Transformational Data Sharing ETF BLOK, -2.11% rose 2.33% to $31.77. Grayscale Bitcoin Trust GBTC, -3.37%, which tracks the Bitcoin market price, dropped 1.15% to $25.44.

Editor’s Note: This story, which tracks nine of the top cryptocurrencies and excludes stable coins, was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones, FactSet and KrakenSee our market data terms of use.

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Barron’s: Inflation Surge Hits the Dow — and What Else Is Happening in the Stock Market Today

The market fell after another jump in consumer prices. Then, St. Louis Fed President James Bullard spoke.

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Cryptocurrency Update: 6 Crypto Coins Gain Up to 6,39,521.45% in a Day. Check Top Gainers

The cryptocurrency market on Saturday, October 23, was back in the red zone with one of the most popular entities, Bitcoin, priced at $61,230.81. The global crypto market cap on this day was standing at $2.55 trillion. This made up for a fall of 1.76 per cent over the course of the last 24 hours. The total crypto market volume over the last 24 hours was shown to be at $103.93 billion. As per figures by CoinMarketCap, this indicates a decrease of 15.11 per cent in the total crypto market volume, which means the total number of coins traded in the last 24 hours. 

The total volume in DeFi stood at $14.38 billion, at the time of publishing this article, which made up for 13.84 per cent of the 24-hour volume of the total crypto market on Saturday.

In this regard, one should keep in mind that there have been changes in the top market gainers and losers over the course of the last 24 hours. As far as top gainers in the market were concerned, the first spot was bagged by Wolf Safe Poor People. This cryptocurrency, which was among the top 6 on Friday, was priced at $0.000001621 and was trading up at 6,39,521.45 per cent on Saturday. The second spot went to GreenMoon, trading at $242.88. It was up by 3,441.85 on the day. 

On the other hand, Magic Cake topped the chart in terms of the losers in the cryptocurrency market. This altcoin was priced at $0.00000000002 on Saturday and saw a decrease of 99.62 per cent over the course of the last 24 hours, according to data from CoinMarketCap.

The second spot in this category went to Smart Coin, priced at $0.6935. Smart Coin logged a fall of 67.75 per cent during the last day, according to the data. Sakura Bloom was the third top loser in this regard. This altcoin had a price of $0.0002021 at the time of publishing this article, down by 67.45 per cent in the last 24 hours.

As far as Bitcoin was concerned, the price stood at $61,230.81 on Saturday, while its dominance was logged at 45.40 per cent. This was a decrease of 0.52 per cent over the day, as per data available at CoinMarketCap. 

Top 6 Cryptocurrency Gainers (According to data from CoinMarketCap)

Wolf Safe Poor People: $0.000001621 – 6,39,521.45 per cent change over last 24 hours

GreenMoon: $242.88 – up by 3441.85 per cent over last 24 hours

InfinitX: $0.000021 – up by 3,270.59 per cent over last 24 hours

UpCake: $0.00000887 – up by 591.18 per cent over last 24 hours

Dogenomics: $0.00000001034 – up by 462.09 per cent over last 24 hours

ShibX: $0.0001314- up by 332.56 per cent over last 24 hours

Top 6 Cryptocurrency Losers (According to data from CoinMarketCap)

Magic Cake: $0.00000000002 – down by 99.62 per cent over last 24 hours

Smart Coin: $0.6935 – down by 67.75 per cent over last 24 hours

Sakura Bloom: $0.0002021 – down by 67.45 per cent over last 24 hours

FUTUREXCRYPTO: $0.9769 – down by 63.40 per cent over last 24 hours

ScareCrow: $54.17 – down by 58.70 per cent over last 24 hours

Pink Shiba Inu: $0.00003918 – down by 56.18 per cent over last 24 hours

Apart from Bitcoin, Solana and Ether, two other popular cryptocurrencies, tracked losses on Saturday. Solana was priced at $202.30 and was down by 0.85 per cent over the last 24 hours. On the other hand, Ether was trading at $4,032.07, down 2.32 per cent over the course of the last day.

Dogecoin, on the other hand, made a U-turn on Saturday and witnessed gain. This altcoin was trading at $0.2463 on Saturday, up by 0.56 per cent over the last 24 hours.

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In a landmark, US bitcoin ETF opens with explosive trade volume


Bitcoin ETF | cryptocurrency | Bitcoin prices

Vildana Hajric | Bloomberg Last Updated at October 20, 2021 00:49 IST

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bitcoin, cryptocurrency

A Bitcoin ETF has been long-awaited by both crypto community and investors on Wall Street, many of whom have argued for years that approval by regulators would open up digital currencies to more mainstream investors.

The first Bitcoin-linked exchange-traded fund in the US, the ProShares Bitcoin Strategy ETF, saw strong investor demand during its trading debut, marking a watershed moment for the crypto industry.

The fund — trading under the ticker BITO — rose as much as 5.4 per cent to $42.15 before paring gains and turning negative at one point. Still, more than 12 million shares worth roughly $480 million changed hands, according to the data compiled by Bloomberg.

While comparisons are difficult because some funds are pre-funded, that volume makes it easily one of the busiest ETF debuts ever seen. Because of the way the fund settles trades, net flows into or out of the product probably won’t be known until overnight on Wednesday.

Bitcoin ETF has been long-awaited by both crypto community and investors on Wall Street, many of whom have argued for years that approval by regulators would open up digital currencies to more mainstream investors. The ProShares fund is based on futures contracts and was filed under mutual fund rules that SEC Chairman Gary Gensler has said provide “significant investor protections.”

“We are really excited to bring BITO, the first Bitcoin-linked ETF, to investors as an important opportunity for them conveniently to invest in Bitcoin in their regular brokerage account,” Simeon Hyman, global investment strategist at ProShares, said on Bloomberg TV. “This is going to allow many people who have been waiting for an easy way to do this and a robust way to do this to now be involved and have it in their portfolios.”

Retail investors rushed to buy the ETF Tuesday morning. BITO was the most bought asset on Fidelity’s platform with more than 5,500 buy orders coming from customers as of 11 a.m. New York time.

Bitcoin gained as much as 3.1 per cent to trade around $63,274, slightly below its April record high of just under $65,000. “It’s an incredibly bullish week— there’s been really positive sentiment around the ETF in particular,” said Sam Bankman-Fried, chief executive officer FTX, one of the largest crypto exchanges.

chart

It’s long been assumed that whoever received approval first could stand to reap the greatest benefits — including industry recognition as well as potentially attracting huge amounts of cash. Some analysts are already bullish on BITO’s prospects — the futures-based Bitcoin ETF could attract more than $50 billion in inflows in its first year given the hype around it, according to noted Bitcoin bull Tom Lee, co-founder of Fundstrat Global Advisors.

There are other applications for futures-based Bitcoin ETFs in the queue. Analysts are anticipating launches from issuers such as Valkyrie, whose Bitcoin Strategy ETF, due to debut on Wednesday, will now trade under the ticker BTFD.

https://www.business-standard.com/article/markets/in-a-landmark-us%E2%80%88bitcoin-etf-opens-with-explosive-trade-volume-121102000017_1.html

How Artificial Intelligence Will Boost the Cryptocurrency Market to Reach USD 1,902.5 Million by 2028

January 27, 2022 05:23 ET | Source: Fortune Business Insights


Pune, India, Jan. 27, 2022 (GLOBE NEWSWIRE) — The global cryptocurrency market size is expected to gain momentum by reaching USD 1,902.5 million by 2028 while exhibiting a CAGR of 11.1% between 2021 to 2028. In its report titled “Cryptocurrency Market,” Fortune Business Insight mentions that the market stood at USD 826.6 million in 2020.

The demand for crypto has increased due to rising investments in venture capital. Additionally, the increasing popularity of digital assets such as bitcoin and litecoin is likely to accelerate the market in upcoming years. Furthermore, it has been seen that the digital currency is also used in the integration of blockchain technology to get decentralization and control efficient transactions. Thus, advantages such as these are also encouraging people to invest in crypto. For instance, In October 2018, Qtum Chain Foundation made a partnership with Amazon Web Services (AWS) China to use blockchain systems on the AWS cloud. With this collaboration, AWS will be able to help its users in using Amazon Machine Images (AMI) to develop and publish smart contracts easily and efficiently.

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Companies in Cryptocurrency Market:

  • Bitmain Technologies Ltd. (Beijing, China)
  • Xilinx, Inc. (California, U.S.)
  • Intel Corporation (California, United States)
  • Advanced Micro Devices, Inc. (California, U.S.)
  • Ripple Labs, Inc. (California,U.S.)
  • Bitfury Group Limited. (Amsterdam,U.S.)
  • Ledger SAS (Paris, France)
  • Nvidia Corporation (California,U.S.)
  • BitGo (California,U.S.)
  • Xapo (Zürich, Switzerland)

What does the Report Provide?

The market report offers in depth analysis of various factors, which are influencing the market growth. Additionally, the report provides insights into the regional analysis of different regions. It includes the competitive landscape that involves the leading companies and the adoption of strategies to introduce new products, announce partnerships, and collaboration that contribute in boosting the market.

COVID-19 Impact

The COVID-19 pandemic adversely affected the world economy. However, the relationship between Bitcoin and the equity market expanded amid pandemic. For example, in March 2020, the price of Bitcoin declined and went below USD 4,000 after a decline in the S&P Index in the U.S. Thus, as the Initial Coin Offering (ICO) market crashed, blockchain companies are emerging as major alternative to raise investment capital.

Click here to get the short-term and long-term impact of COVID-19 on this Market.

Please visit: https://www.fortunebusinessinsights.com/industry-reports/cryptocurrency-market-100149

Market Segmentation:

By component, the market is bifurcated into hardware, and software. By type, it is divided into bitcoin, ether, litecoin, ripple, ether classic, and others. By end-use, it is divided into trading, E-commerce and retail, peer-to-peer payment, and remittance.

Based on end use, the trading segment held the market share of 42.8% in 2020, because it focuses on crypto solutions that are used for trading such as Pionex, Cryptohopper, Bitsgap, Coinrule, and others.

Lastly, in terms of geography, the market is divided into North America, Europe, Asia Pacific, the Middle East & Africa and Latin America.

Driving Factor

Focus on Mitigating Financial Crisis and Regional Instability Drives the Demand for Virtual Currency

In recent times, financial disaster is one of the primary issues that occurs in the conventional banking system. This financial instability disrupts the economy by lowering the value of money. For instance, ICICI bank of India, in the year 2008, confronted the Lehman brother crisis, which hugely impacted the nation’s economy. But with using bitcoins, and other cryptocurrency, such situations of economic downfall can be avoided. Therefore, Cryptocurrencies are emerging as alternative options in the regions with unstable economical structure, and this has been a major driving factor for the cryptocurrency market growth.

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Regional Insights

North America to Dominate Backed by Presence of Prominent Players

North America is expected to remain at the forefront and hold the largest position in the market during the forecast period. This is because in most parts of the region bitcoins have become a medium of exchange for tax purposes rather than the actual currency. Although these are not legally regulated by the government, still many of the countries in the region are focused on using digital currencies. The region’s market stood at USD 273.0 million in 2020.

Asia Pacific is expected to showcase significant cryptocurrency market share in upcoming years, owing to several technological developments and acceptance of virtual currency for some platforms within Japan and Taiwan.  Additionally, the strategic collaborations, partnerships by key players are also fueling the regional market. For instance, in January 2020, Z Corporation, Inc. and TaoTao, Inc. collaborated with the financial service agency to widen the crypto market by confirming regulatory compliance in the Japanese market.

Competitive Landscape

Key Players to Focus on Introduction of New Services to Strengthen the Market Growth

The market is consolidated by major companies striving to maintain their position by focusing on new launches, collaborations & partnerships and acquisitions. Such strategies taken up by key players are expected to strengthen its market prospects. Below is the industry development:

March 2021 – Visa Inc. aims to introduce crypto as a direct payment. With this key initiative, the company aims to accept cryptocurrencies as a payment method for the finance industry.

Quick Buy – Cryptocurrency Market Research Report: https://www.fortunebusinessinsights.com/checkout-page/100149

Part II: Artificial Intelligence Market

The global artificial intelligence market size is expected to reach USD 360.36 billion by 2028. As per the report, the market size was valued at USD 35.92 billion in 2019 and is estimated to display a stellar CAGR of 31.9% during the forecast period. This information is presented by Fortune Business Insights™, in its report, titled, “Artificial Intelligence Market, 2021-2028.” The increasing number of linked devices and rising implementation of Internet of Things (IoT) are steering the market growth. Multiplying usage of cloud-based applications in various industries such as medical, online retail, production, and Banking, Financial Services, & Insurance (BFSI) coupled with rising complexity of cyber-crimes are presenting exciting opportunities to expand the utilization of artificial intelligence in the market. For example, use of machine learning (ML) in precisely identifying cancerous cells is anticipated to propel its demand in the healthcare industry.

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AI Technology that Traces COVID-19 Patients Set to Promote Market Growth

The medical industry is projected to considerably benefit from AI applications during the COVID-19 pandemic. For example, in the clinical health care procedures, AI will assist in improving the precision and efficacy in diagnosing the disease, suggesting treatments, and predicting results. In the United States, the government is employing essential data from detachable devices to trace COVID-19 positive patients. AI assists in developing and mining the coronavirus stress and using it to improve and scale the testing equipment. The extracted data can be useful for drug discovery. For example, the TCSI lab is making use of AI capabilities to recognize potential molecules and to target it against the COVID stress. Therefore, amid pandemic, the artificial intelligence market is anticipated to observe substantial growth.

Report Coverage

The report provides a thorough study of the market segments and detailed analysis of the market overview. A profound evaluation of the current market trends as well as the future opportunities is presented in the report. It further shares an in-depth analysis of the regional insights and how they shape the market growth. The COVID-19 impacts have been added to the report to help investors and business owners understand the threats better. The report sheds light on the key players and their prominent strategies to stay in the leading position.

To get to know more about the short-term and long-term impact of COVID-19 on this market, please visit: https://www.fortunebusinessinsights.com/industry-reports/artificial-intelligence-market-100114

Companies Covered in the Artificial Intelligence Market Report

  • Alphabet (Google LLC) (California, USA)
  • Apple Inc. (California, USA)
  • Baidu Inc. (Beijing, China)
  • IBM Corporation (New York, USA)
  • IPsoft Inc. (New York, USA)
  • Microsoft Corporation (Washington, USA)
  • MicroStrategy, Inc. (Virginia, USA)
  • NVIDIA Corporation (California, USA)
  • Qlik Technologies Inc. (Pennsylvania, USA)
  • Verint Systems Inc. (Next IT Corp) (New York, USA)
  • SAP SE (Walldorf, Germany)

Segmentation

By component, the artificial intelligence market is divided into hardware, software and services. The services segment is estimated to gain momentum during the forecast period. The incorporation of AI with the prevailing systems in companies needs suitable skillset and expertise. Furthermore, for maintenance and to support artificial intelligence, an insightful set of expertise is essential. Additionally, the software segment held a share of 40.9% in the year 2019.

On the basis of technology, the market is segregated into computer vision, machine learning and natural language processing. Based on deployment, it is further bifurcated into cloud and on-premise. By industry, the market is separated into healthcare, retail, IT and telecom, BFSI, automotive, advertising and media, and manufacturing among others. In terms of region, the global market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Drivers and Restraints

Budding BFSI Industry to Inflate Opportunities for Artificial Intelligence Market

The BFSI industry is estimated to extend the applications of artificial intelligence (AI). It is already consuming the technology for making trading decisions, for chatting robots, credit scoring applications, and to study the financial market impact analysis, among others. For example, several banks are utilizing ML tools to generate trading robots that are capable of self-analysing and to teach trading, based on past data.  Moreover, BFSI is making use of AI technology to provide personalized guidance to its users concerning debt administration, investment tactics, refinancing, and much more. The technology is also efficient in detecting fraud activities. This is expected to create widespread opportunities for the application of the technology, thereby initiating in the artificial intelligence market growth in the near future.

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Regional Insights

North America to Hold Command Backed by Active Government Initiatives

The artificial intelligence market share in the North American region was USD 11.40 billion in 2019, where the U.S. was a major contributor due to increasing government initiatives and investments in the market. This is expected to boost demand for artificial intelligence in the near future.

Europe is estimated to be an equal contributor to the global economy in the artificial intelligence market. Countries in the European region are tactically financing in AI. For example, the European Investment Fund, assigned USD 111 million for the AI-based start-ups in 2020.  

Asia Pacific is estimated to witness speedy growth during the forecast period. In this region, China is responsible for generating the main income share, owing to collective investments by leading players in the technology. Furthermore, to offer strong outcomes in the field, it also presented the New Generation Artificial Intelligence Development Plan.

Competitive Landscape

Partnerships and Mergers to Help Developers Innovate New Ideas and Expand Business

Prominent players in the market often come up with efficient strategies that include partnerships, acquisitions and mergers, product launches, etc. These strategies bolster their position as leading players and also benefit the other involved companies as well.

For instance, in May 2020IPsoft Inc. protracted its collaboration with Unisys Corporation to apply AI capabilities in InteliServe and Amelia. The incorporated suite will aid organizations to solve workplace concerns with its intellectual technology.

Industry Development

June 2020: Microsoft Corporation made an investment in the Mount Sinai Health System. The company is a healthcare based firm and will be using AI to improve the COVID-19 related care through its advanced digital tools. This is likely to boost demand for artificial intelligence in the upcoming years.

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Fortune Business Insights™ delivers accurate data and innovative corporate analysis, helping organizations of all sizes make appropriate decisions. We tailor novel solutions for our clients, assisting them to address various challenges distinct to their businesses. Our aim is to empower them with holistic market intelligence, providing a granular overview of the market they are operating in.

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US lawmakers have come forward to push Bitcoin mining companies into revealing how much electricity they use for crypto mining

Eight US lawmakers have come forward to push Bitcoin mining companies into revealing how much electricity they use for crypto mining, as cryptocurrency mining’s impact on energy is being felt across the globe.

The US Senators have sent letters to six companies that mine Bitcoin in the US, asking them about how much electricity they use, where it comes from, and how they plan to grow.

“Given the extraordinarily high energy usage and carbon emissions associated with Bitcoin mining, mining operations raise concerns about their impacts on the global environment, local ecosystems, and consumer electricity costs,” according to the letters.

The letters were signed by Senators Elizabeth Warren (D-MA), Sheldon Whitehouse (D-RI), Jeff Merkley (D-OR), Margaret Hassan (D-NH), and Ed Markey (D-MA), Katie Porter (D-CA), Rashida Tlaib (D-MI), and Jared Huffman (D-CA).

The letters were sent amid an oversight hearing on crypto mininga¿s impact on energy by the House Energy & Commerce Committee.

Cryptocurrency mining threatens targets to limit global warming to 1.5 degree Celsius under the 2015 Paris Agreement, according to the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency.

The most common method for producing crypto-assets requires enormous amounts of electricity and generates large CO2 emissions.

“Crypto assets have a significant negative impact on the climate as mining leads to both large emissions of greenhouse gases and threatens the climate transition that needs to happen urgently. This is alarming, and crypto-assets therefore need to be regulated,” according to Erik Thedeen, director of the Swedish Financial Supervisory Authority.

Bitcoin mining relies on an energy-intensive process called “proof of work” to keep ledgers secure.

The University of Cambridge and Digiconomist estimate that the two largest crypto-assets, Bitcoin and Ethereum, together use around twice as much electricity in one year as the whole of Sweden.

Digiconomist estimates that crypto-assets at their current market value lead to release of up to 120 million tonnes of CO2 in the atmosphere per year.

KAZAKHSTAN

The Giant Bitcoin Mines of Kazakhstan

  • Kazakhstan recently witnessed protests following surging energy costs.
  • The country’s biggest telecommunications provider shut down access to the internet.
  • Bitcoin mining hashrate fell 13.4% following the internet blackout.

Following fuel protests in Kazakhstan, the country reportedly experienced internet blackouts on January 4, leading to a nationwide communications disruption on January 5. Although the country’s presiding cabinet resigned, the internet blackout dealt a severe blow to Bitcoin mining activity.

Kazakh Bitcoin miners witness internet blackout

The Kazakhstan government removed price caps on liquefied petroleum gas used for fuel which doubled its price instantly. The sharp fuel hike sparked protests in the country, as protestors stormed into government buildings, leading to the country’s largest telecommunications provider to shut down access to the internet. 

Kazakhstan currently ranks second in the world in terms of Bitcoin mining hashrate, accounting for about 18% of the network’s hash activity. 

Following the shutdown of the nation’s internet, the overall BTC hashrate fell 13.4% from roughly 205,000 petahash per second to 177,330 petahash per second.

Jaran Mellerud, a researcher at Arcane Research stated that in theory, miners could mine without the internet, “but in practice, all the machines in Kazakhstan should be turned off because of the internet shutdown.” 

He added that btc.com estimates that Antpool, Poolin, F2Pool and Binance Pool witnessed massive reductions in their hashrate during the time the internet was shut down in Kazakhstan. He stated that “these are the pools widely used by Kazakh miners.

Larry Cermak, the VP of Research at the Block who tweeted about the recent drop in hashrate suggested that the event is unlikely to lead to a decline in crypto prices. He highlighted that “it matters to estimate the impact of an unprecedented event like this.”

Despite recent protests, hardware manufacturer Canaan is looking to expand crypto mining operations in the country, as the company is looking to cooperate with mining firms in Kazakhstan. 

Canaan recently announced that it has deployed over 10,000 AvalonMiner units in the country. 

Bitcoin price slides 9%

Bitcoin price dropped 9% following the Kazakhstan internet blackout, reaching a swing low of $42,642.

The leading cryptocurrency dropped below a crucial ascending support trend line on the daily chart, and is now searching for a reliable foothold.

BTCUSDT

BTC/USDT daily chart

If Bitcoin price fails to flip the 61.8% Fibonacci retracement level at $44,078 from resistance to support, BTC could slide lower to tag the 78.6% Fibonacci retracement level at $37,388.https://www.youtube.com/embed/zDzoGac8GUo?rel=0

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Bitcoin network power slumps as Kazakhstan crackdown hits crypto miners

  • Tom Wilson

The global computing power of the bitcoin network has dropped sharply as the shutdown this week of Kazakhstan’s internet during a deadly uprising hit the country’s fast-growing cryptocurrency mining industry.

Kazakhstan became last year the world’s second-largest centre for bitcoin mining after the United States, according to the Cambridge Centre for Alternative Finance, after major hub China clamped down on crypto mining activity.

Russia sent paratroopers into Kazakhstan on Thursday to help put down the countrywide uprising after violence spread across the tightly controlled former Soviet state. Police said they had killed dozens of rioters in the main city Almaty, while state television said 13 members of the security forces had died.

The internet was on Wednesday shut down across the country in what monitoring site Netblocks called “a nation-scale internet blackout.”

The move would have likely prevented Kazakhstan-based miners from accessing the bitcoin network.

Bitcoin and other cryptocurrenices are created or “mined” by high-powered computers, usually at data centres in different parts of the world, which compete to solve complex mathematical puzzles in a highly energy-intensive process.

In August last year, the most recent data available, Kazakhstan accounted for 18% of the global “hashrate” – crypto lingo for the amount of computing power being used by computers hooked up to the bitcoin network.

In April, before China’s latest clampdown on bitcoin mining, the figure was just 8%.

The hashrate at major crypto mining pools – groups of miners in different locations that team up to produce bitcoin – including AntPool and F2Pool was on Thursday at 1215 GMT down around 14% from its level late on Tuesday, according to data from mining firm BTC.com. Neither pool immediately responded to a Reuters request for comment,

CRACKDOWN ON CRYPTO MINING

Yet a drop in hashrate isn’t necessarily supportive for the price of bitcoin.

Bitcoin fell below US$43,000 on Thursday, testing multi-month lows after investor appetite for riskier assets fell as the U.S. Federal Reserve leant toward more aggressive policy action.

The more miners on the network, the greater the amount of computer power is needed to mine new bitcoin. The hashrate falls if miners drop off the network, in theory making it easier for the remaining miners to produce new coin.

Kazakhstan’s crypto mining farms are mostly powered by aging coal plants which themselves – along with coal mines and whole towns built around them – are a headache for authorities as they seek to decarbonise the economy.

The Kazakh government said last year it planned to crack down first on unregistered “grey” miners who it estimates might be consuming twice as much power as the “white” or officially registered ones.

Its energy ministry said last year “grey” mining may be consuming up to 1.2 GWt of power, which together with “white” miners’ 600 MWt comes up to about 8% of Kazakhstan’s total generation capacity.

The country’s uprising began with protests in the west of the country against a New Year’s Day fuel price hike.

(Reporting by Tom Wilson; Editing by Emelia Sithole-Matarise)RELATED IMAGES

This April 3, 2013 file photo shows bitcoin tokens in Sandy, Utah. (AP / Rick Bowmer)

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