Despite Recent Drop, Bitcoin Is Outperforming Certain Global Currencies

It’s hard to get rid of the greenback with interest rates in the U.S. rising the way they have thanks to the Federal Reserve’s hawkish policies. Despite the recent pullback, bitcoin continues to outperform other currencies around the world.

Bitcoin is not only outperforming emerging market currencies. It also affects the economic powerhouses in developed countries like Great Britain and China.

According to a Fortune magazine article, Bitcoin has outperformed the trend of falling currencies like the British Pound and Chinese Yuan. It has grown 6.3% in the past seven days, flirting with $20,000 and even growing as high as $6,000. Global markets have been affected by macro conditions such as rising inflation and fiscal uncertainty. Although Bitcoin has generally complied with financial swings over the past week, its strong performance in the last week has shocked traders and highlighted the turbulent times.

As Bitcoin matures, Bitcoin has shown less volatility in the past. Influx of institutional capital has helped to keep Bitcoin relatively stable compared to its early adoption years.

This has led to an asset that is more in line with traditional markets. Bitcoin is showing more correlation with stock markets, especially this year, though it’s still far from its early volatility days.

Tweeted Sven Henrich (founder of NorthmanTrader), “You know that we have reached a unique moment in history when #Bitcoin suddenly becomes less volatile than fiat currencies,”

We are at a moment in history where #Bitcoin is suddenly less volatile than fiat currencies.

– Sven Henrich (@NorthmanTrader) September 26, 2022

How to Get Actively Managed Bitcoin Exposure

The ProShares Bitcoin ETF is an option for investors who wish to have exposure to bitcoin but avoid investing through a cryptocurrency exchange. This fund tracks the price movements of bitcoin on a regular market exchange and provides exposure to futures.

BITO played a significant role in bringing bitcoin to its November record high. It was the first U.S. exchange-traded fund (ETF), to concentrate on the most popular cryptocurrency. Although crypto purists might be skeptical of a futures ETF it is possible for investors seeking alternative exposure.

The fund is actively managed giving investors peace of mind knowing that their investments are in the capable hands of experienced portfolio managers. Bitcoin is a volatile asset. Active management can adjust portfolios as needed to market conditions.

Bitcoin Is Scarce, Peter Schiff Admits, But It Does Not Matter in This Crash

Vocal Bitcoin opponent and founder of SchiffGold fund chairman, economist Peter Schiff has taken to Twitter for comment about the prolonged fall in Bitcoin on Tuesday.

He acknowledged that Bitcoin is not scarce but that it doesn’t matter right now.

Bitcoin dominance is hard to sustain, and its scarcity is not helping

It crashed Tuesday by 5.61%. The price fell to $18,630, the lowest level in two months. Peter Schiff tweeted that there was not only a prolonged Bitcoin crash but that BTC dominance is also on the decline.

This metric is now at 38.1%. It’s the lowest level since June 2018, when it was the crypto winter.

Schiff believes that Bitcoin’s loss of dominance in the crypto market can be attributed to its competition with almost 21,000 other cryptos. BTC’s dominance is being lost to altcoins, which Schiff has described as “intrinsically less” as well as Bitcoin.

#Bitcoin is not only crashing but also its dominance has dropped to 38.1%. This is its lowest level since June 2018. It is now competing with nearly 21,000 other digital tokens that are intrinsically worthless, NFTs, and #crypto equities. Even though Bitcoin is rare, there are many alternatives.

Peter Schiff (@PeterSchiff). September 6, 2022

He also acknowledged that Bitcoin was a rare asset. However, in current circumstances, this doesn’t matter because altcoins have an even greater supply than BTC. Many Bitcoiners, including Schiff’s son Spencer, tried to convince Schiff that he was wrong.

Schiff earlier admitted that cryptocurrency’maybe has future,’ but Bitcoin won’t be. David Gokhshtein, an influential investor, admitted that Peter Schiff correctly predicted BTC’s future.

Peter Schiff was probably right about #bitcoin.

– David Gokhshtein (@davidgokhshtein) September 7, 2022

“$20,000 is false bottom”

Fund manager and gold bug Schiff shared his opinion on Tuesday that $20,000 was likely to be false bottom for the benchmark cryptocurrency.

He said that BTC was trading at that level for almost two weeks, as the market was offering naive investors an opportunity to get on the bandwagon. He advised that investors should abandon the’sinking boat’ before it is too late.

Curiously, the crypto’s flagship cryptocurrency went further down the day after the tweet.

Mike McGlone asserts that Bitcoin is still a bull market

Mike McGlone (senior commodity strategist at Bloomberg) shared a screenshot and a quote from a Bloomberg report on Tuesday. The Bloomberg report stated that BTC was joining the ranks of global stores value along with gold, U.S. Treasuries, and gold.

It was also noted that the previous deep crashes of the flagship crypto in 2015 and 2018-19 were similar to the current one and that the price rose to historic heights.

Bitcoin currently trades at $18,785 per coin via Bitstamp as of the writing.

National Power Administration Will Propose a Special Cryptocurrency Mining Fee in Paraguay

The National Power Administration proposes a new method of charging cryptocurrency companies for electricity used in mining operations in Paraguay. The company submitted a new proposal to the National Power Administration. It would allow the collection of these payments in advance in U.S. Dollars and an annual adjustment. The proposal also created a new billing group to handle these activities.

Alfredo Arguello , head of East Regional Management Division, stated that the team was able to identify irregularities in several cryptocurrency mining operations that resulted in a loss of over $400,000 per month. Arguello stated that some of the irregularities were bypass connections, direct connections, and modified energy meters.

The company has decided to stop power supply to these entities until a new power billing scheme is approved. This issue is currently being debated in the Paraguayan Senate.

Laws on Cryptocurrency are Ready

Due to the low electricity prices, cryptocurrency mining in Paraguay has seen a boom. Many companies have expressed interest in Paraguay’s establishment of operations after the Chinese mining ban. This forced many mining operators out of the country to seek new lands.

In July, the Senate passed an act that will provide clarity for these operations. Paraguayan President has yet to approve the law. It states that energy for mining operations will continue to be subsidized but at a 15% higher rate than other industries.

Felix Sosa (president of the National Power Administration) stated that this was the reason:

We believe it must have a cost structure that makes it financially viable to install electrical energy supply.

Sosa also stated that he will propose to veto this bill because of the proposals it makes about power billing to these businesses.

Texas heatwave and energy crunch curtails Bitcoin mining

As a result of the severe heatwave, Bitcoin miners in Texas are turning off their power this week. Texas’ grid operator asked residents to conserve energy as extreme heat drove record-setting power demand in Texas on Monday.

According to the Texas Blockchain Council, Bitcoin mining companies in Texas responded by shutting down their machines. This freed approximately 1% of the grid’s total power.

“They are closing down for many reasons, but primarily because it’s the right thing to have a good ‘grid citizen,” Lee Bratcher, president and CEO of the Texas Blockchain Council, stated to The verge in an e-mail. Bratcher also stated that there are financial motives because spot prices for electricity in Texas soar when there is a shortage.

“It is the right thing”

After China banned this practice, Bitcoin miners have been flocking to Texas in the last year. The US became the largest hub for global mining. According to Bloomberg , those crypto miners will increase Texas’ electricity demand by 6 gigawatts by next year.

In essence, crypto mining companies set up their own data centers with specialized hardware to’mine’ Bitcoin. They race to solve more complicated puzzles. This energy-intensive process allows miners to gain new tokens and validate new transactions on blockchain.

The Bitcoin network uses more electricity annually than the country of Belgium. However, its energy consumption has fallen in the last month, after the price of Bitcoin plunged . It is less profitable to operate mining machines due to the lower cryptocurrency value and high energy prices. Bratcher stated that one of the largest publicly traded miners in Texas will shut down between 8AM-10PM on’several days this weeks’.

Texas’ power grid can be saved by turning off your lights, especially at peak hours. Texas is experiencing triple-digit heat this week, which puts more pressure on the electricity grids. Texas’ heat dome has also deprived it of most of its wind power. Typically, Texas generates around 25% of its electricity. Texas’ power grid is particularly vulnerable as it does not connect to other power grids. In an emergency, other states may be able to share their energy.

Its power grid is not yet out of reach

After the Electric Reliability Council of Texas (or ERCOT) asked Texans to reduce their energy consumption on Monday, the state has avoided large-scale power outages. In February 2021, a severe cold spell caused widespread outages throughout the state. Texas is expected to experience high temperatures throughout the week. The state’s power grid is not yet out of commission.

It isn’t the first instance of Bitcoin miners in the state responding to high-temperature power cuts. Riot Blockchain, a Bitcoin mining firm, has reduced energy consumption by 8,648 megawatt hours during June, Alexis Brock, Riot’s marketing coordinator, said in an email to the Verge.

This is significant as Riot has a Rockdale, Texas facility that it claims to be North America’s largest Bitcoin mining site. When peak demand threatens stability of the grid, the company plans to keep the facility running at a lower level.

Truth About KuCoin’s Bitcoin (BTC) Balance Amid FUD Over Halting Withdrawals

KuCoin has not yet confirmed rumors that it is stopping withdrawals from its platform. Rumours circulated that KuCoin would stop withdrawals due to losses from the LUNA crash.

KuCoin Rumors Suspending Withdrawals

Johnny Lyu, KuCoin’s CEO, had Saturday denied claims that he had suspended withdrawals. KuCoin is not exposed to LUNA or 3AC, Lyu stated. Lyu also said that there was no severe injury from any coin crash, referring specifically to the Terra crash. Lyu also stated that there is no plan to stop withdrawals from the platform. He stated that everything on KuCoin works well.

Lyu made a comment about false claims regarding KuCoin’s Bitcoin balance in a recent post. He stated Monday that many of the on-chain tracking tools do not show exact balances.

“Most on-chain trackers tools cannot show the exact balance of exchanges. It’s not their fault that many exchange addresses aren’t labeled. Glassnode previously did not track many KuCoin wallets. They recently updated the BTC labels to KuCoin.

He was responding to a crypto enthusiast, who spoke about the rumors surrounding Kucoin Bitcoin balance. Although it was believed that Kucoin only had 300 Bitcoin, on-chain data revealed that there were more than 16,000 BTC.

KuCoin CEO also stated that the 16,000 Bitcoin data was still understated. He explained that several KuCoin addresses have not been labeled yet, meaning the actual total is not being added up. “The KuCoin BTC balance at the moment is underestimated because there are many KuCoin addresses that have not been labeled.

New Hiring Continues At KuCoin

Many of the crypto exchanges were hit hard by the market crash, and many announced layoffs. KuCoin stated that it was one of few exchanges that continued to hire despite the market volatility.