U.S. Bitcoin Mining Booms, Crypto Bank Sues Federal Reserve, As Hodler Losses Mount

Tuesday, June 14, 2022 12:08 AM

Data from CryptoCompare shows that Bitcoin price started testing resistance at $30,000 last week but fell sharply throughout it to finally dip below $25,000 after a lender crypto halted withdrawals and on broader macroeconomic factors.

Ethereum’s Ether, the second-largest cryptocurrency by market capitalization, also saw a steep drop from $1,800 to around $1,250 at the time of writing. ETH’s losses saw it fall below its 2017 high above $1,400.

Headlines in the cryptocurrency space this week focused on a cryptocurrency mining boom in the United States, which is attracting increasing attention from regulators. The Bitcoin network’s mining hashrate plunged about a year ago after a mining ban in China forced miners out of the country.

Over the past year, BTC miners have spread across the globe, and 38% of the power behind the network has moved to the United States, making it the global leader.

The White House is reportedly working on a report on cryptocurrency mining and the environment, which will examine, among various issues, potential mining operators on stabilizing power grids.

Cryptocurrency miners are incentivized to find the cheapest power sources available. Several cryptocurrency mining companies have partnered with natural gas producers and electricity providers to leverage excess energy to mine crypto.

As the US seemingly embraces cryptocurrency miners, this week crypto bank Custodia filed a lawsuit against the US Federal Reserve, claiming the central bank illegally delayed a decision on its main account application. , which she says is “critical” to her business.

According to the crypto bank, a primary account “would allow Custodia to access the Federal Reserve directly, rather than going through an intermediary bank. The lawsuit said the Federal Reserve’s own documentation indicates that “a decision on a main account” usually takes 5-7 business days. “The bank has been waiting for 19 months.

Retailer adoption is also growing exponentially in the US, as Deloitte’s “Merchants Getting Ready For Crypto” report, released in conjunction with PayPal, found that 75% of retailers in the US plan to accept payments in cryptocurrency or stablecoins within two years.

The survey polled 2,000 senior executives from US retail organizations at the end of last year, when cryptocurrency prices were much higher. Respondents were evenly split across various industries, including cosmetics, digital goods, electronics, fashion, food and beverage, personal and household goods, and services.

It’s also worth mentioning that the US Securities and Exchange Commission (SEC) is investigating whether major cryptocurrency exchange Binance broke securities rules by selling its BNB token during its initial coin offering. (ICO) five years ago.

PayPal starts allowing users to move crypto to external wallets

PayPal now allows cryptocurrency holders on its platform to transfer their digital assets to external cryptocurrency wallets and exchanges.

This feature was the most requested feature by the fintech giant since it started allowing users to buy, sell and hold cryptos in October 2020. On its platform, users have access to Bitcoin, Ethereum, Bitcoin Cash and Litecoin.

The new feature comes at a time when long-term Bitcoin holders are sitting on their biggest losses since March 2020 and the bear market of 2018-2019. Aggregate realized losses for long-term bitcoin holders topped 0.006% of market cap, with historical trends suggesting losses may continue.

The cryptocurrency space has also been affected by scammers who, according to a report by the Federal Trade Commission, have managed to take more than $1 billion from more than 46,000 people since the start of 2021. last year’s losses being almost 60 times what they were in 2018.

Notably, just this week, an attacker managed to steal 20 million OP governance tokens after interfering in a token grabbing process involving a market maker. The attacker reportedly returned most of the funds and even sent some of it to Ethereum co-founder Vitalik Buterin.

South Korean exchanges remove Litecoin over privacy features

South Korean cryptocurrency exchanges Upbit and Bithumb are removing Litecoin, a cryptocurrency often referred to as the money from Bitcoin’s gold, on a recent update that allows for greater privacy when making transactions.

In their notices, the two cryptocurrency exchanges revealed that they were about to stop supporting Litecoin on its newly activated Mimblewimble Extension Blocks (MWEB) upgrade, which conflicts with South American regulations. Korea Against Money Laundering (AML).

MWEB allows users to conceal transaction data through its privacy features while providing a foundation to improve a token’s usability. Thanks to MWEB, transactions are only known between the sender and the receiver.

As exchanges discuss Litecoin’s new privacy features, TRON has decided to superstake its USDD stablecoin after the collapse of the Terra ecosystem. The TRON DAO uses BTC. USDT, USDC and TRX itself as collateral for the stablecoin.

Francisco Memoria is a content creator at CryptoCompare who is in love with technology and dedicated to helping people see the value in digital currencies. His work has been published in many reputable industry publications. Francisco holds various cryptocurrencies.