According to a World Economic Forum (WEF) tweet, a “change in the way bitcoin is coded could almost eliminate its environmental impact.” That statement stems from a tweet the WEF published on April 26, with an accompanying video that claims “miners could stake their own bitcoins to verify transactions.”
WEF on Bitcoin’s Proof-of-Work: A ‘Basic Change in Coding” Could Eliminate ‘Most of the Network’s Energy Demands’
In recent times, there have been a lot of arguments about the energy consumption used by cryptocurrency miners and how it impacts the global environment. Politicians and regulators have been targeting the mining industry on a regular basis. Additionally, the environmental global campaigning network Greenpeace, with the help of Ripple Labs co-founder Chris Larsen, started a campaign to get Bitcoin’s code changed so it will be friendlier to the environment. The web portal cleanupbitcoin.com states:
You’ve heard Bitcoin fuels the climate crisis, but did you know a software code change could clean it up.
The World Economic Forum (WEF) has shown it agrees with the Greenpeace campaign “Change the Code, Not the Climate.” On April 26, the WEF tweeted about the possibility of Bitcoin changing to a proof-of-stake (PoS) network. The same WEF that has been promoting the ‘Great Reset’ agenda, shared an accompanying video clip that claims “miners could stake their own bitcoins to verify transactions.”
A simple “basic change in coding” could eliminate “most of the network’s energy demands at a stroke,” the video says. WEF’s video mentions the Greenpeace-led ‘Change the Code’ effort and the campaigners who believe the controversial idea is possible.
The WEF video and blog post got a lot of criticism from cryptocurrency supporters after it was published. A number of individuals said the Switzerland-based WEF’s talking points had faults in the assumptions underpinning the group’s entire theory.
“The authors of this are really confused about basic fundamentals,” the co-founder and CEO of Blockstream, Adam Back said replying to the WEF tweet. Responding to Back’s comments one individual stressed:
Adam, I don’t think they are confused. I think they know exactly what the f*** they are doing. It’s a calculated, well-orchestrated attack on bitcoin.
Back noted that either way the WEF’s arguments are “economically confused” and the statements “should be scientifically debunked for that reason.”
“They should be ashamed to say such nonsense so they at least can have a discussion while being coherent,” the Blockstream co-founder insisted. In addition to Back’s comments, Microstrategy’s CEO Michael Saylor had also responded to the WEF’s tweet and video about Bitcoin changing to PoS.
“If you remove the energy from anything useful you can almost eliminate its environmental impact,” Saylor said. “This is most common in fantasy novels and computer games. Real planes, trains, automobiles, homes, food, medicine, machines, and money all benefit from energy. So do real people.”
Plan B Says Misinformation on Bitcoin Is Consistent With the WEF Mission
The creator of the bitcoin stock-to-flow (S2F) price model, Plan B, also rubbed the WEF’s ‘Great Reset’ agenda into the conversation. Plan B said: “At least this WEF attack… [or] misinformation on bitcoin is consistent with the WEF mission.”
Accompanying Plan B’s text was a photo of the controversial WEF tweet about the Great Reset which says: “You’ll own nothing, and you’ll be happy. This is how our world could change by 2030.” However, the WEF tweet has been deleted by the owner of the Twitter account and only exists on archive.org’s Wayback Machine.
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Adam Back, Bitcoin code, Bitcoin mining, Blockstream CEO, Chris Larsen, cleanupbitcoin.com, Climate Agenda, climate crisis, Code Change, environment, environmental impact, Great Reset, greenpeace, michael saylor, microstrategy ceo, mining bitcoin, Plan B, PoS, PoW, Proof of Work, Proof-of-Stake, Ripple Labs co-founder, Switzerland-based WEF, WEF, WEF Agenda, WEF mission, WEF’s tweet, World Economic Forum
What do you think about the World Economic Forum’s latest tweet about changing Bitcoin’s codebase and miners staking bitcoins to verify transactions? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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Low inflation or bust: Analysts say the Fed has no choice but to continue raising rates
As economic conditions continue to worsen, financial experts worldwide are increasingly placing the blame at the feet of the United States Federal Reserve after the central bank was slow to respond to rising inflation early on.
Financial markets are currently experiencing their worst stretch of losses in recent history, and it doesn’t appear that there is any relief in sight. May 24 saw the tech-heavy Nasdaq fall another 2%, while Snap, a popular social media company, shed 43.1% of its market cap in trading on May 23.
— Crypto Phoenix (@CryptoPheonix1) May 24, 2022
Much of the recent turmoil again comes back to the Fed, which has embarked on a mission to raise interest rates in an attempt to get inflation under control, financial markets be damned.
Here’s what several analysts are saying about how this process could play out and what it means for the price of Bitcoin (BTC) moving forward.
Will the Fed tighten until the markets break?
Unfortunately for investors looking for short-term relief, economist Alex Krüger thinks that “The Fed will not stop tightening unless markets break (far from that) or inflation drops considerably and for *many* months.”
One of the main issues affecting the psyche of traders is the fact that the Fed has yet to outline what inflation would need to look like for them to take their foot off the rate-hike gas pedal. Instead, it simply reiterates its goal “’to see clear and convincing evidence inflation is coming down’ towards its 2% target.”
According to Krüger, the Fed will “need to see Y/Y [year-over-year] inflation drop 0.25%–0.33% on average every month until September” to meet its goal of bringing down inflation to the 4.3%–3.7% range by the end of the year.
Should the Fed fail to meet its PCE inflation target by September, Krüger warned about the possibility that the Fed could initiate “more hikes *than what’s priced in*” and also begin exploring the sale of mortgage-backed securities as part of a quantitative tightening campaign.
“Then markets would start shifting to a new equilibrium and dump hard.”
A setup for double-digit sustained inflation
The Fed’s responsibility for the current market conditions was also touched on by billionaire investor and hedge fund manager Bill Ackman, who suggested that “The only way to stop today’s raging inflation is with aggressive monetary tightening or with a collapse in the economy.”
In Ackman’s opinion, the Fed’s slow response to inflation has significantly damaged its reputation, while its current policy and guidance “are setting us up for double-digit sustained inflation that can only be forestalled by a market collapse or a massive increase in rates.”
Due to these factors, demand for exposure to stocks has been muted in 2022 — a fact evidenced by the recent decline in stock prices, especially in the tech sector. For example, the tech-heavy Nasdaq index is now down 26% on the year.
With the cryptocurrency sector being highly tech-focused, it’s not surprising that weakness in the tech sector has translated to weakness in the crypto market, a trend that could persist until there is some form of resolution to high inflation.
How could Bitcoin fare going into 2023?
According to Krüger, the “base case scenario for upcoming price trajectory is a summer range that starts with a rally followed by a drop back to the lows.”
“For $BTC, that rally would take price to the start of the Luna dump (34k to 35.5k).”
Crypto trader and pseudonymous Twitter user Rekt Capital offered further insight into the price levels to keep an eye on for a good entry point moving forward, posting the following chart showing Bitcoin relative to its 200-day moving average.
Rekt Capital said:
“Historically, #BTC tends to bottom at or below the 200-MA (orange). The 200-MA thus tends to offer opportunities with outsized ROI for $BTC investors (green). […] Should BTC indeed reach the 200-MA support… It would be wise to pay attention .”
The overall cryptocurrency market capitalization now stands at $1.258 trillion, and Bitcoin’s dominance rate is 44.5%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
ECB: One in ten households in eurozone population centers now own cryptocurrency
The survey took place in the EU’s major economic areas such as France, Germany, Italy, Spain, Belgium, and the Netherlands.
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On Tuesday, the European Central Bank, or ECB, published the results of a new survey conducted in six eurozone areas; the Netherlands, Spain, Italy, Belgium, France, and Germany. Together, approximately 10% of respondents from the surveyed countries said they own cryptocurrencies. Out of this group, only 6% of respondents said they own digital assets worth more than 30,000 euros. Meanwhile, 37% of respondents said they owned up to 999 euros in crypto.
Across all of the countries surveyed, investors in the fifth income quintile (or the wealthiest 20% of the population) consistently had the highest proportion of cryptocurrency ownership relative to other income groups. The Consumer Expectation Survey asked adults aged 18 to 70 if they or anyone in their household owned financial assets in various categories, such as crypto-assets.
The survey was included in a new report published by the ECB the same day regarding the growing adoption of crypto assets despite their risk factors. As cited by the ECB, 56% of respondents in a recent Fidelity survey said they had some exposure to crypto-assets, up from 45% in 2020. Increased availability of crypto-based derivatives and securities on regulated exchanges, such as futures, exchange-traded notes, exchange-traded funds, and OTC-traded trusts, have contributed to the momentum.
In addition, increased regulation has been taken as a sign that public authorities endorse crypto. As an example, the ECB cited Germany allowing institutional funds to invest up to 20% of their holdings in crypto. However, the ECB highlighted at the end of the report that if current trends in digital asset adoption continue, then they will eventually pose a threat to financial stability.
Weak stocks and declining DeFi use continue to weigh on Ethereum price
Ether’s (ETH) 12-hour closing price has been respecting a tight $1,910 to $2,150 range for twelve days, but oddly enough, these 13% oscillations have been enough to liquidate an aggregate of $495 million in futures contracts since May 13, according to data from Coinglass.
The worsening market conditions were also reflected in digital asset investment products. According to the latest edition of CoinShare’s weekly Digital Asset Fund Flows report, crypto funds and investment products saw a $141 million outflow during the week ending on May 20. In this instance, Bitcoin (BTC) was the investors’ focus after experiencing a $154 weekly net redemption.
Russian regulation and crumbling U.S. tech stocks escalate the situation
Regulatory uncertainty weighed on investor sentiment after an updated version of the Russian mining law proposal came to light on May 20. The document in the lower chamber of the Russian parliament no longer contained the obligation for a crypto mining operators registry nor the one-year tax amnesty. As cited by local media, the legal department of the Duma stated that these measures could “possibly incur costs on the federal budget.”
Additional pressure on Ether price came from the Nasdaq Composite Index’s 2.5% downturn on May 24. In addition, the heavily-tech stock-driven indicator was pressured after social media platform Snap (SNAP) tumbled 40%, citing rising inflation, supply chain constraints and labor disruptions. Consequently, Meta Platforms (FB) shares fell by 10%.
On-chain data and derivatives are in favor of bears
The number of active addresses on the largest Ethereum network’s decentralized applications (DApps) has dropped by 27% from the previous week.
To understand how professional traders, whales and market makers are positioned, let’s look at Ether’s futures market data.
Quarterly futures are used by whales and arbitrage desks due, primarily, to their lack of a fluctuating funding rate. These fixed-month contracts usually trade at a slight premium to spot markets, indicating that sellers request more money to withhold settlement longer.
These futures should trade at a 5% to 12% annualized premium in healthy markets. This situation is technically defined as “contango” and is not exclusive to crypto markets.
Ether’s futures contracts premium went below the 5% neutral-market threshold on April 6. There’s an evident lack of conviction from leverage buyers because the current 3% basis indicator remains depressed.
Ether might have gained 2% after testing the $1,910 channel resistance on May 24, but on-chain data shows a lack of user growth, while derivatives data point toward bearish sentiment.
Until there’s some morale improvement that boosts the use of decentralized applications and the Ether futures premium regains the 5% neutral level, the odds of the price breaking above the $2,150 resistance seems low.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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