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Cryptocurrency companies must now report their energy consumption to the government

Published

12 months ago

8 May, 2024

Cryptocurrency companies must now report their energy consumption to the government

The Biden administration is now requiring some cryptocurrency producers to report their energy use following growing concerns that the growing industry could pose a threat to national power grids and exacerbate climate change.

The Energy Information Administration announced last week which will begin collecting energy usage data from more than 130 “identified commercial cryptocurrency miners” operating in the United States. The survey, which began this week, aims to get a sense of how the industry’s energy demand is evolving and in which areas of the country cryptocurrencies are growing the fastest.

“As cryptocurrency mining has increased in the United States, concerns have grown about the energy-intensive nature of the business and its effects on the U.S. electric power sector,” the EIA said in a new relationship, following the announcement. “Concerns expressed to the EIA include strains on the electricity grid during periods of peak demand, potential increases in electricity prices, as well as effects on energy-related carbon dioxide emissions.”

Digital currencies like bitcoin are produced – or “mined” – by massive data centers that essentially solve complex equations to add new tokens to an online network known as a blockchain. As currencies have grown in popularity, they have required ever-increasing amounts of computing power to draw more and more electricity from the grid.

The new EIA report found that the world’s cryptocurrency miners used as much electricity as the entire country of Australia in 2023, accounting for up to 1% of global electricity demand. In the United States, the report said, just 137 mining facilities were responsible for up to 2.3% of the nation’s total electricity demand last year, about the same as demand in the state of West Virginia.

Since most of the electricity generated in the world, including in the United States, comes from burning fossil fuels, anything that increases energy demand also increases the amount of carbon dioxide released into the atmosphere. Clean energy advocacy group RMI estimates that U.S. cryptocurrency operations they release 25 to 50 million tons of CO2 every year. This is the same amount as the annual diesel emissions of the US rail industry.

It’s a particularly alarming problem in the United States, where cryptocurrency operations are growing rapidly. According to the EIA report, which cites calculations from the UK-based Cambridge Judge Business School, nearly 38% of all bitcoin, the most popular type of cryptocurrency, was mined in the US in 2022, up from just 3, 4% in 2020. The EIA has now identified at least 137 commercial-scale cryptocurrency mining facilities in 21 states, largely clustered in Texas, Georgia, and New York.

It also appears that the expansion of crypto operations is increasing the cost of energy in some states. In 2018, a small town in upstate New York welcomed a cryptocurrency mining company only to see residents’ bills skyrocket, prompting local lawmakers to temporarily ban the company’s operations. “I’ve heard a lot of complaints about electric bills going up $100 or $200,” Colin Read, who was mayor of Plattsburgh at the time, he told Vice. “You can understand why people are angry.”

It’s a similar situation in Texas, said Ben Hertz-Shargel, who leads grid electrification research at global energy consultancy Wood Mackenzie. As well as energy-intensive cryptocurrency mining that puts a strain on the state already fragile energy networkhe said, ratepayers are also seeing rising electricity costs.

“Nearly every hour of the year, energy demand from bitcoin mines drives up the real-time cost of electricity in Texas, which is determined every 15 minutes based on supply and demand,” Hertz said. Shargel in an email. “This increases electricity costs by $1.8 billion per year for homeowners and businesses in the state, a 4.7% increase over what they currently pay.”

Crypto companies could mitigate some of these problems, including their impact on climate change, by developing their own renewable energy systems to reduce their dependence on the grid, Hertz-Shargel said, similar to what large corporations are doing technologies like Google and Amazon. But not only are crypto companies not doing that, she said, but they are also setting up shop next to existing renewable energy plants, tapping into clean energy that would otherwise go to nearby homes and businesses.

“Every unit of clean energy consumed by the local wind or solar farm is simply diverted to another customer,” he said. “The net effect is that overall energy demand on the grid increases, which must be met through increased deployment of expensive, high-emitting fossil generation.”

There are some cryptocurrency companies that have found ways to dramatically reduce their energy footprint. In 2022, the cryptocurrency company Ethereum announced a software update which has managed to reduce carbon emissions from its operations by more than 99%.

Hertz-Shargel said other companies should follow Ethereum’s lead or they could see even more government regulation in the future.

Other important climate news

California’s atmospheric river causes torrential rain and ferocious winds: A deadly Pacific storm, the second “Pineapple Express” weather system to sweep the West Coast in less than a week, dumped torrential rain on Southern California on Monday, causing street flooding and mudslides across the region, Steve Gorman and Daniel Trotta report for Reuters. The state saw staggering amounts of precipitation and hurricane-force wind gusts, according to the National Weather Service, with greater Los Angeles receiving more than 10 inches of rain.

Scientists divided over controversial study that claims Earth has already warmed by 1.5°C: Using sponges collected off the coast of Puerto Rico in the eastern Caribbean, scientists calculated 300 years of ocean temperatures and concluded that the world has already passed one crucial limit of global warming and is accelerating toward another. Rachel Ramirez reports for CNN. The study, published Monday in Nature Climate Change, is dividing scientists, with some saying it contains too many uncertainties and limitations to draw such definitive conclusions and could muddy public understanding of climate change.

British judge launches accusations against Greta Thunberg and other climate protesters: A British court on Friday dismissed charges against Greta Thunberg and four co-defendants, citing “significant deficiencies in the evidence” presented by the prosecution. Ryan Grenoble reports for HuffPost. The prominent Swedish climate activist was arrested during an October protest and charged with illegally blocking access to an oil and gas conference in London. But the judge said the prosecution produced no witness statements from event attendees who were barred from attending the conference.

Today’s indicator

This is the number of consecutive months since May that have recorded all-time highs for average temperature, scientists said this week after preliminary data showed that January’s record had also been broken. The news comes after 2023 was declared the warmest year on record.

Kristoffer Tigue

Journalist, New York

Kristoffer Tigue is a staff writer at Inside Climate News, covering climate issues in the Midwest. He previously wrote the twice-weekly newsletter, Today’s Climate, and helped lead ICN’s national coverage of environmental justice. His work has been published in Reuters, Scientific American, Mother Jones, HuffPost and many others. Tigue holds a master’s degree in journalism from the Missouri School of Journalism.

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News

Ether Drops Further After ETF Launch

Published

9 months ago

23 July, 2024

Blocksight Staff

Bitcoin Surpasses $66,000 Thanks to Strong ETF Flows

Key points

Spot ether ETFs began trading in the U.S. today, with the funds initially having more than $10 billion in collective assets under management.
Analysts expect the launch of spot ether ETFs to have a net negative impact on the underlying price of ether in the near term, due to expected outflows from the pre-existing Grayscale Ethereum Trust.
Spot Bitcoin ETFs continue to see strong inflows, with BlackRock’s IBIT alone seeing more than $500 million in inflows on Monday.
Franklin Templeton, a spot ETF issuer on bitcoin and ether, has invested in a project that intends to bring Ethereum technology to Bitcoin.

Nine-point ether exchange-traded funds (ETFs)) started trading on the stock market on Tuesday, but all the optimism ahead of their approval did not translate into gains for the cryptocurrency markets.

Ether (ETH), the native cryptocurrency of the Ethereum blockchain, dropped less than 1% around the $3,400 level as of 1:30 PM ET, while Bitcoin (BTC) fell more than 2% to around $66,000.

Ether ETFs’ Debut Isn’t as Flashy as Bitcoin ETFs’

Spot ether ETFs began trading at just over $10 billion assets under management (AUM)), according to Bloomberg Intelligence analyst James Seyffart, most of that money is in the current Grayscale Ethereum Trust (ETHE) which has now been converted into an ETF.

“In the long term, Grayscale will simultaneously have the highest and lowest fees in the market. The asset manager’s decision to keep its ETHE fee at 2.5% could lead to outflows from the fund,” Kaiko Research said in a note on Monday.

Outflows from ETHE, if they occur, would be similar to those faced by Grayscale’s Bitcoin Trust (GBTC) after spot bitcoin ETFs began trading in January of this year, most likely due to high fees for the two original funds. Grayscale’s existing fund charges 2.5% fees, while a new “mini” ether ETF will charge 0.15% and commissions for other ETFs are set at 0.25% or less.

Such outflows could impact the price of ether and market sentiment.

“There could be a pullback shortly after the launch of Ethereum spot ETFs, i.e. outflows from Grayscale Ether Trust could dampen market sentiment in the short term,” Jupiter Zheng, a partner at Hashkey Capital’s liquid fund, told The Block.

But Grayscale remains optimistic.

“Compared to the splashy debut of spot bitcoin ETPs in January, the launch of ethereum ETPs has been relatively muted,” said Zach Pandl, Grayscale’s head of research, adding that investors may be “undervaluing” ether ETFs that are “coming to the U.S. market in tandem with a shift in U.S. cryptocurrency policy and the adoption of tokenization by major financial institutions.”

Bitcoin ETF Inflows Continue to Rise

As for bitcoin, there is clearly no lack of demand for spot ETFs, such as BlackRock’s iShares Bitcoin Trust (IBITS) recorded its sixth-largest day of inflows in its short history on Monday, at $526.7 million, according to data from Farside Investors. Daily inflows for the overall spot bitcoin ETF market also hit their highest level since June 5.

In particular, asset manager Franklin Templeton, which has issued both bitcoin and ether ETFs, appears to have decided to cover its back when it comes to Ethereum by investing in Bitlayer, a way to implement Ethereum technology on a second-layer Bitcoin network, according to CoinDesk.

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News

Spot Ether ETFs Start Trading Today: Here’s What You Need to Know

Published

9 months ago

23 July, 2024

Blocksight Staff

Spot Ether ETFs Start Trading Today: Here's What You Need to Know

Key points

Spot ether ETFs will begin trading on U.S. exchanges on Tuesday. Nine ETFs will trade on Cboe BZX, Nasdaq and NYSE Arca.
Ether ETFs offer investors exposure to the price of their underlying assets.
Commissions on these new ETFs generally range from 0.15% to 0.25%.
These ETFs do not provide exposure to Ethereum staking.

The U.S. Securities and Exchange Commission (SEC) has officially approved nine ether spots (ETH)exchange-traded funds (ETFs) for trading on U.S. exchanges. Trading for these new cryptocurrency investment vehicles begins today. Here’s everything you need to know.

What new ether ETFs are starting to trade today?

Spot ether ETFs starting trading today can be found at Quotation, NYSE Arkand Cboe BZX. Here’s a breakdown of each ETF you can find on these three exchanges, along with the fund tickers:

Cboe BZX will list the Invesco Galaxy Ethereum ETF (QETH), the 21Shares Core Ethereum ETF (CETH), the Fidelity Ethereum Fund (FETH), the Franklin Ethereum ETF (EZET) and the VanEck Ethereum ETF (ETHV).

Nasdaq will have the iShares Ethereum Trust ETF (ETHA) created by BlackRock, which also operates the largest spot bitcoin ETF under the ticker IBIT.

NYSE Arca will list the Bitwise Ethereum ETF (ETHW) and the Grayscale Ethereum Trust (ETHE). The Grayscale Ethereum Mini Trust (ETH), which will begin trading on the same exchange.

How does an ether ETF work?

Spot ether ETFs are intended to offer exposure to the price of ether held by the funds. Ether is the underlying cryptocurrency of the Ethereal network, the second largest crypto network by market capitalization.

ETF buyers are buying shares of funds that hold ether on behalf of their shareholders. Different spot ether ETFs use different data sources when it comes to setting the price of ether. Grayscale Ethereum Trust, for example, uses the CoinDesk Ether Price Index.

None of the ETFs launching today include pointed etherwhich represents a potential opportunity cost associated with choosing an ETF over other options such as self-custody or a traditional cryptocurrency exchange.

Ether staking currently has an annual return of 3.32%, according to the Compass Staking Yield Reference Index Ethereum. However, it is possible that the SEC will eventually approve Ether staking held by ETFs.

How can I trade Ether ETFs?

ETFs can simplify the trading process for investors. In the case of cryptocurrencies, instead of taking full custody of the ether and taking care of your own private keysSpot ether ETFs allow investors to purchase the cryptocurrency underlying the Ethereum network through traditional brokerage accounts.

Today, not all brokers may offer their clients spot ETFs on cryptocurrencies.

What are the fees for ether ETFs?

The fees associated with each individual spot ether ETF were previously revealed In the S-1 OR S-3 (depending on the specific ETF) deposit associated with the offerings. These fees are 0.25% or less for all but one.

The Grayscale Ethereum Trust, which converts to an ETF, has a fee of 2.5%. The Grayscale Mini Ethereum Trust has the lowest fee at 0.15%. These fees are charged on an annual basis for the provider’s management of the fund and are in line with what was previously seen with spot bitcoin ETFs.

Brokers may also charge their own fees for cryptocurrency trading.

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News

Kamala Harris Odds Surge Amid $81M Fundraise. What Does It Mean for Bitcoin and Cryptocurrencies?

Published

9 months ago

23 July, 2024

Blocksight Staff

Kamala Harris Odds Surge Amid $81M Fundraise. What Does It Mean for Bitcoin and Cryptocurrencies?

Market odds and memecoins related to US Vice President Kamala Harris have soared as the latest round of donations tied to the Democratic campaign raised $81 million in 24 hours, bolstering sentiment among some traders.

The odds of Harris being declared the Democratic nominee have risen further to 90% on cryptocurrency betting app Polymarket, up from 80% on Monday and setting a new high.

Previously, in early July, bettors were only betting on 8%, but that changed on Saturday when incumbent President Joe Biden announced he would no longer run in the November election. Biden then approved Harris as a candidate.

Polymarket traders placed $28.6 million in bets in favor of Harris, the data showsThe second favorite is Michelle Obama.

Somewhere else, Memecoin KAMA based on Solanaa political meme token modeled after Harris, has jumped 62% to set a new all-time high of 2 cents at a market cap of $27 million. The token is up a whopping 4,000% from its June 18 low of $0.00061, buoyed primarily by the possibility of Harris becoming president.

As such, Harris has yet to publicly comment on cryptocurrencies or her strategy for the growing market. On the other hand, Republican candidate Donald Trump has expressed support for the cryptocurrency market and is expected to appear at the Bitcoin 2024 conference on Saturday.

However, some expect Harris or the Democratic Party to mention the sector in the coming weeks, which could impact price action.

“While he has not yet received the official nomination, there is consensus that last night’s development is in line with current Democratic strategy,” cryptocurrency trading firm Wintermute said in a Monday note emailed to CoinDesk. “Keep an eye on Democrats’ comments on this issue in the coming days.

“The prevailing assumption is that Harris will win the nomination and any deviation from this expectation could cause market volatility,” the firm added.

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News

Top 30x Cryptocurrency and Coin Presales Today: Artemis Coin at #1, Others Are: BlockDAG, 99Bitcoin, eTukTuk, and WienerAI

Published

9 months ago

23 July, 2024

Blocksight Staff

Top 30x Cryptocurrency and Coin Presales Today: Artemis Coin at #1, Others Are: BlockDAG, 99Bitcoin, eTukTuk, and WienerAI

The cryptocurrency market has seen a lot of growth and imagination lately, with new ventures popping up regularly. A critical pattern in this space is the rise of crypto pre-sales, which give backers the opportunity to get involved with promising projects early on. Artemis is a standout option for crypto investors looking to expand their portfolios amid the many pre-sales currently underway.

Cryptocurrency presales, commonly referred to as initial coin offerings (ICOs), allow blockchain ventures to raise capital by offering their local tokens to early backers before they become available on open exchanges. Investors can take advantage of these presales by purchasing tokens at a lower price. If the project is successful and the token’s value increases, investors stand to receive significant returns.

>>> Explore the best cryptocurrency pre-sales to buy now <<

The Ultimate List of the Top 5 Cryptocurrency Pre-Sales to Invest In

Artemis: The aim of Artemis (ARTMS) will become the cryptocurrency equivalent of eBay or Amazon. The upcoming Phase 4 will see the launch of the Artemis Framework, which will serve as a stage for digital money exchanges where buyers, sellers, specialized organizations and those seeking administration can participate in coherent exchanges.
DAG Block: uses Directed Acyclic Graph technology to increase blockchain scalability.
99bitcoin: operates as a crypto learning platform
WienerAI uses AI-powered trading bots for precise market analysis.
eTukTuk focuses on environmentally sustainable transportation options, such as electric vehicle charging infrastructure.

We have determined that Artemis is the best new cryptocurrency presale for investment after conducting extensive research. It presents itself as the unrivaled cryptocurrency presale choice currently open.

>> Visit the best cryptocurrency pre-sale to invest in now <<

Top 5 Crypto Pre-Sales and Best Cryptocurrencies for Investment Today

Artemis (ARTMS) is attempting to establish itself as the cryptocurrency version of eBay or Amazon. The Artemis Crypto System, which will act as a platform for cryptocurrency transactions, will be launched in Phase 4. Buyers, sellers, service providers, and requesters will all benefit from seamless trading with this system. Customers will be able to purchase things, such as mobile phones using digital money, as well as sell products such as involved bicycles and get paid in cryptocurrency. Additionally, crypto money can be used to pay for administrations such as clinical consultations, legitimate care, and freelance work. Artemis Coin will act as the main currency of the ecosystem, with Bitcoin and other well-known cryptocurrencies from various blockchain networks backing it.

Artemis Coin has increased in price from 0.00055 to 0.00101 from 0.00094. Artemis may be attractive to individuals looking to recoup losses in Bitcoin, as predicted by cryptocurrency analysts. At this point, it seems to present an interesting presale opportunity.

>>> Visit the best cryptocurrency pre-sale to invest in now <<

The world of digital currency pre-sales is an exciting and exciting opportunity that could open the door to game-changing blockchain projects. Projects in this article, like Artemis Coin, offer the opportunity to shape the future of various industries and the potential for significant returns as the industry develops.

However, it is imperative to approach these investments with caution, thorough research, portfolio diversification, and awareness of the risks. You can explore the digital currency pre-sale scene with greater certainty and increase your chances of identifying and profiting from the most promising venture opportunities by following the advice and methods in this article.

>>> Join the best cryptocurrency pre-sale to invest in now <<

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