The largest cryptocurrency finally showed some signs of recovery, on Monday, after being stuck below the key $ 30 thousand level for four days, and other cryptocurrencies followed suit.
The most prominent cryptocurrency, Bitcoin, climbed for the third consecutive day, surpassing $ 30 thousand. It jumped 4.4% to $30,441.43.
While Bitcoin's dominance of the cryptocurrency market has been increasing recently, some alternative currencies have been outperforming, with Avalanche rising 6.6%, and Cardano up 8.6%.
- Bitcoin has been in a critical position in recent months, under interest
- raising cycles from the Fed and other central banks to rein in high inflation.
- The collapse of Terra's cryptocurrency ecosystem has also hurt sentiment in the digital asset market.
Concerns among market watchers grew on the weekend as the record relationship with the Nasdaq 100 slumped as technology stocks rose, according to a Bloomberg analysis.
"This is the kind of disengagement that no one wants," said Anthony Trenchev, founder and managing partner of crypto lender Nexo, according to Bloomberg.
- The trend of bitcoin has changed marginally over the past two weeks
- and ended with prices falling late last week.
- The "bears" will continue to charge the upper hand in the crypto market unless the token recovers the $30,200 level
- according to the pattern (a break below $28,000 that could see a return to the $25,000 level).
The downward triangle pattern also suggests that any decline below $25,400, could result in a 2017 bottom of just under $20,000 for the bitcoin price.
China returns strongly as a global destination for bitcoin mining.. Underground networks challenge authorities
Cryptocurrency mining consumes energy equivalent to that of a country such as Norway
Bitcoin miners in China surrender despite Beijing's ban on the practice. China was the world's largest cryptocurrency mining hub, accounting for 65% to 75% of the total "retail rate" - or processing power - of the earlier bitcoin network.
But the country's share of global bitcoin mining capacity fell to zero in July and August 2021, according to Cambridge University data, after authorities launched a new cryptocurrency crackdown.
Among the steps taken by China is the abolition of cryptocurrency mining, an energy-intensive process leading to the creation of a new cryptocurrency. This resulted in many minerals fleeing to other countries, including the United States and Kazakhstan, which borders China.
However, many underground mining operations later emerged in China.
- New research from the Cambridge Centre for Alternative Finance shows that China's bitcoin mining activity has rebounded rapidly. By September 2021
- China accounted for just over 22% of the total bitcoin mining market, according to CNBC, and seen it. net ".
- This means that China has once again become a major global player in bitcoin mining, second only to the United States
- which overtook China as the sector's top destination last year.
The study noted, however, that the research methodology relied on determining the overall geographical location of large bitcoin mining "groupings" to determine where the activity was concentrated in different countries.
Some bitcoin miners who use a virtual private network (VPN) to mask their whereabouts may
"deliberately obfuscate" this method, according to the researchers.
VPNs allow users to channel their own traffic via a server in another country, making it an easy-to-use tool for people in countries like China, where internet use is severely restricted.
However, they added that this restriction would "only moderately affect" the accuracy of the analysis.
What is Bitcoin Mining?
Unlike traditional currencies, cryptocurrencies are decentralized. This means that the process of processing transactions and minting new units of currency is done by a distributed network of computers rather than banks and other intermediaries.
- To facilitate Bitcoin trading
- miners need to approve the validity of the transaction
- This process requires complex calculations to solve
- an increasingly difficult mystery as more and more miners join the network, known as blockchain.
The first person to solve the puzzle will add a new set of transactions to the blockchain, rewarded with some bitcoin units for their efforts.
Why is Beijing concerned?
This method of reaching consensus, known as "proof of action", consumes a great deal of energy, roughly equivalent to that of entire countries, such as Norway and Sweden.
China has repeatedly issued cryptocurrency warnings. But arguably its most recent crackdown was the most severe.
- This comes as the world's second largest economy has been dealing with power shortages for several months last year
- leading to many power outages.
- While China continues to rely heavily on coal
- it is increasing investment in renewable energy in an effort to reach carbon neutrality by 2060.
The authorities consider cryptocurrency exploration to be a potential obstacle to that plan.