“By now, it should be clear the “hashrate migration” is real: Miners are leaving China for good. As of April 2020, an estimated 65% of bitcoin hashrate was domiciled in China; with confirmed bans across the country, that figure will be far lower 12 months from now. The precise magnitude and schedule for the westward move is currently unknown, but all signals seem to be indicating the greatest shakeup in the geographic makeup of bitcoin mining since the start of the industrial mining era.
Hypotheses for the motivations behind China’s move to eliminate mining abound. One obvious explanation would be a desire to meet climate targets and reduce emissions. But this is contradicted by China’s continued embrace of coal power (it added three times as much in 2020 as the rest of the world combined) and that the crackdown extended to hydro-powered regions like Sichuan.
Other analysts have said China sees bitcoin as a competitor to its own digital currency project, the DCEP. But again, bitcoin mining is a largely self-contained industry. Banning mining does little to inhibit bitcoin transactions or exchanges – they are totally distinct concerns.
The central and regional government had hitherto tolerated the monetization of excess energy because it simply wasn’t being put to alternative economic use. But as the grid integration and load balancing has improved in the last five years, bitcoin miners have increasingly begun to compete with other industrial and commercial uses.
It is still unclear where these newly mobile miners will end up. The U.S. has the second-most capacious grid in the world, and some miners appear optimistic about the opportunities to migrate hashrate west without sustained interruption. Raw electricity cost is no longer the sole consideration. Today, political stability, regulatory clarity and a respect for private property rights are paramount in miner decision-making.
In the U.S., obtaining the necessary permits can take upwards of six months. Additionally, while some states like Texas and cities like Jackson, Tennessee and Miami have indicated their openness to miners, others like New York have taken a decidedly hostile approach. Other more convenient near-term geographies include Kazakhstan, Central Asia and Russia.
But whether it’s the U.S. or other locales that grow their market share at the expense of China, it will be a significant win for bitcoin’s decentralization, the stability of mining and bitcoin’s climate impact. At long last, bitcoin’s vulnerability to China and the CCP is melting away.”
See Also: Denied electricity, world’s 5th-largest mining pool leaves China for Kazakhstan
See Also: China’s Anti-Crypto Crackdown Is Different This Time
See Also: Stronghold Digital Mining Raises $105M to Turn Waste Coal Into Bitcoin
“Digital asset bank Wyoming Deposit & Transfer (WDT) has been awarded a bank charter by the Wyoming Division of Banking allowing the bank to provide commercial banking and custodial services for tokenized assets and digital currencies.
WDT said it is the third charter of this type to be awarded. In September, cryptocurrency exchange Kraken became the first entity to secure a bank charter from the state. The second charter was issued to Avanti Bank in October.”
“A recent large-dollar funding round by Securitize signals that security tokens may be poised for a comeback. If so, more private companies will bypass traditional initial public offerings (IPO) and instead use blockchain technology to digitize the capital-raising process. Some in the industry now go so far as to predict a sixfold increase in the total dollars raised using such funding methods over the next four years.
While this niche failed to live up to the hype of the 2017-2018 cryptocurrency boom, several firms said they expect the security token industry to finally take off on a global scale, citing strong demand from issuers and investors. Securitize, which helps private companies raise money by issuing tokens, completed a $48 million Series B fundraising round on Monday. Morgan Stanley and Blockchain Capital co-led the round, which was oversubscribed.
Two years ago, there was no infrastructure for a security token marketplace: no licensed platforms, broker-dealers, and no transfer agents. The SEC recent approval of Securitze as a transfer agent is yet another sign that the industry is prepared for take-off.”
“Bakkt said it had launched a fully virtual Visa debit card for both online and in-store spending. Card holders can spend Bitcoin (BTC) from their Bakkt accounts without waiting to convert the cryptocurrency to fiat.
Now, instead of selling and waiting to transfer to a bank, they can simply walk into their favorite store, tap their Bakkt Card and buy that new item they’ve been eyeing […] the Bakkt Card untethers Bitcoin owners from their online-only past into a world with countless options to leverage the digital assets in their day-to-day lives.”
“PayPal and Visa are chasing bets across the crypto industry as partners in Blockchain Capital’s fifth venture fund, a $300 million war chest announced Tuesday. The increasingly crypto-savvy companies are relative newcomers to crypto VC.
The new fund is maintaining a focus on crypto infrastructure plays like startups building to support decentralized finance (DeFi) and non-fungible tokens (NFTs). Bogart said the LP route gives these firms indirect equity upside while also getting an early read on startups for partnership deals.
Blockchain Capital is one of older and larger crypto-native venture capital firms with over $1.5 billion under management. Bogart said the firm’s fifth fund also received backing from pension funds and university endowments.”
“The auction win secures Karura a 48-week lease to build on Kusama, Polkadot’s pre-production environment. The sister network of Polkadot’s main DeFi project Acala, Karura raised more than 500,000 Kusama tokens (KSM) from its community, or about $100 million at current prices.
The second auction is set to begin later today, with three more auctions to follow in the next three weeks.”
“Privacy-oriented web browser Brave has launched a new feature in beta, Brave Search, which does not track users’ searches or what they click on.
The new service offers fully anonymous searching and is transparent regarding how search results are ranked. Brave Search is based on Tailcat, the open search engine Brave acquired in March.
Brave Search is based on an independently built search index, whereas other search engines are critically dependent on big tech search engines under the hood.”