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The last few days have been hard for crypto enthusiasts worldwide. Following the lead of China, Iran has also cracked down on local cryptocurrency miners, announcing a four-month ban on mining effective immediately.

The ban was announced Wednesday by President Hassan Rohani while addressing a cabinet meeting. It will last until September 22.

Talking about the nature of crypto mining in Iran, Rouhani said that legal mining operations use up around 300 MW of electricity, while illegal operations consume as much as 2000 MW. At one point during the meeting, Rouhani also joked that it seems everybody has a few miners and is mining Bitcoins.

This decision by the Iranian government comes at a time when the country is experiencing power outages. Iran is currently going through a drought that is affecting its ability to generate hydroelectricity.

Legal and Illegal Mining, Fines, and Equipment Seizures

The official word is that 85% of the mining taking place in the country is illegal. There are also 50 licensed mining farms. To help with the crisis, operations at authorized farms, consuming 600 MWh, have been paused.

The Ministry of Industries, Mines, and Trade estimates $660 million/ year worth of cryptocurrency is being unofficially in Iran, which equates to 4 to 6% of the global mining. The University of Cambridge estimates 3.82% of global Bitcoin mining took place in Iran in Apr Q2, 2020, placing the country in sixth place.

In January, about 45,000 bitcoin mining machines were seized by the authorities. The seizure and modification of street lighting corresponds to reduced consumption of a city with half a million people, according to Mohammad Hassan Motavalizadeh, head of Iran’s state electricity company (called Tavanir).

The government is also looking to fine people who use domestic electricity for crypto mining. Iranian Energy Ministry’s spokesman Mostafa Rajabi Mashhadi has said that the miners will have to pay a heavy fine and also compensate for the damage caused to the power network.

Differing Opinions

However, there isn’t a consensus on the role of cryptocurrency mining on Iran’s energy consumption. The head of the digital economy commission of the country’s parliament, Mojtaba Tavangar, believes that the power outages are not because of cryptocurrency mining. Instead, it’s the stoppage of funding and the old distribution and generation network that’s causing the issue, he says.

Power Authority’s Position

Talking on the electricity situation of the country, the head of public relations for Tavanir Abouzar Salehi said:

“Lack of rainfall and severe drought has pushed the water reservoirs of the country’s hydropower plants to critical lows and at the same time illegal cryptocurrency mining across the country has imposed a huge burden on the power grid this year.”

“Water shortage this year has led to a 4000-5000 megawatt decline in the output of hydropower plants …consumption has increased to 54,448 megawatts, this means 8,600 megawatts more electricity is consumed compared to the same date in the previous year,” he added.

The Iranian government’s approved cryptocurrency mining as an industry in 2019. According to a 2019 survey, 25% of the 1,650 survey participants were making $500 to $3,000 per month working with cryptocurrency.

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Naabiae Nenu-B is a Medical Health Student and an SEO Specialist dedicated to flushing the web off fake news and scam scandals. He aims at being "Africa's Best Leak and Review Blogger" and that's the unwavering stand of Xycinews Media.

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Fx Analysis

Forex Market Majors Improve Ahead of US Data

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  • Euro and Pound Both Trade Higher
  • Key US Figures Including PMIs and Payroll
  • Wall Street Resilient Despite China Concerns

The Euro and GBP forex market against the Dollar both picked up some momentum yesterday and into the European trading session today as USD weakness continued with several important pieces of data due this week. These include the ADP non-farm payroll numbers as well as ISM Services PMIs and speeches from the Fed. All of these could be potentially market-moving events based on the outcome. Meanwhile, on Wall Street, the S&P 500 managed to notch another record as US stocks fail to get dragged down by the ongoing questions around Chinese names.

Strong Signs From Euro and Pound

The Euro and Pound have both managed to take advantage of some Dollar weakness so far this week. Despite several concerns around COVID-19 cases in China making a reappearance, the Dollar has continued to remain lower with those in forex trading to the advantage of the Euro. A settling of virus cases in the bloc has also come at the right time for the Euro as it moves back close to 1.19. 

It has been a similar story for Sterling. The number of coronavirus cases in the UK has continued to decline. This despite a largescale reopening that it would appeal has had little impact on the case numbers. This positive news has led many to speculate that the Bank of England may move to raise interest rates. Forex brokers and traders alike await this decision.

US Data to Play Central Role

The other key factor weighing on the Greenback and providing some room for other major currencies to advance is the upcoming data releases in the US. This includes ADP non-farm payroll numbers and ISM Services PMIs. Both are important numbers in determining how quickly the economy is continuing to get back to work, and can provide some insight on the ongoing inflation issue. 

Treasury Secretary Janet Yellen is also set to speak today in support of the infrastructure bill and total of $3.5 trillion in spending plans that the government has in store. She will remark that such spending is required to maintain the US place at the top of the world order in terms of economic prowess. Democrats are generally hoping to gain public support for this spending plan.

Records Continue as Wall Street Pushes Forward

Renewed concern in China as COVID-19 cases reemerged seems not to have been felt so far this week on Wall Street. Amid a broadly impressive earnings season with few shocks, the S&P 500 moved to close yesterday at a new record high. 

The key driver today will be the US data releases and how the market reacts to Yellen’s speech on spending. More important names, particularly in travel and hospitality are also due to report quarterly earnings today including MGM and Booking with expectations creeping up in the sector as more get back to travel.

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Fx Analysis

Ukraine to Allow CBDCs while BoA Anticipates Demise of Cash – CBDCs Weekly

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As development of a U.S. based Central Bank Digital Currency (CBDC) continues, an increasing amount of figureheads are speaking on their future importance.  Whether this is the result of a need to keep up with the joneses (i.e. Ukraine) or the Bank of America touting the effectiveness of CBDCs, the end result will be the same – a future inundated with digital currencies from private issuers and central banks alike.

The United States ‘Needs’ a CBDC

In a recent discussion with the Aspen Institute Economic Strategy Group, Federal Reserve Governor Lael Brainard shared her thoughts on a potential U.S. Central Bank Digital Currency.

Interestingly, Brainard specifically notes that a key reason behind the United States ‘need’ for a CBDC, is due to the actions of nations globally.

“The dollar is very dominant in international payments, and if you have the other major jurisdictions in the world with a digital currency, a CBDC(central bank digital currency) offering, and the U.S. doesn’t have one, I just, I can’t wrap my head around that…That just doesn’t sound like a sustainable future to me.”

Beyond the need described above, Brainard noted the following points as driving factors behind the creation of a CBDC.

  • Increasing efficiency of opaque, long, and costly intermediation chains
  • Staving off rise of stablecoins and a potentially ‘fragmented payment system’
  • Easier distribution of funds among citizens

While it isn’t a given, a U.S. based CBDC is widely expected to be unveiled in the coming years.  Whatever the scenario, the government will be ready, as it is already actively developing this product in an effort to hit-the-ground-running when the green light is given.  For the time being, various members of Congress are still on the fence pertaining to their need, and believe such a product should be handled by the private sector.

Ukraine to Allow CBDC

While the U.S. may still be mulling over the need for a CBDC, other nations are rolling full steam towards their eventuality.  One of the most recent examples of this comes from the Ukraine, where President Volodymyr Zelensky signed a bill allowing for the National Bank of Ukraine (NBU) to develop and issue its own CBDC.  This development is the result of years-worth of research in to the CBDCs, dating back to 2018, when the NBU first began mulling over the idea.

In addition to now having the ability to launch a CBDC, the bill allows for the creation of a FinTech sandbox, and provides increased clarity/definitions surrounding nine categories of payment service providers.

Bank of America Anticipates the Demise of Cash

If the development of CBDCs by other world governments wasn’t enough to spur the United States in to action, perhaps recent reports from the Bank of America (BoA) will be.

Not only does the BoA find that CBDCs are ‘a much more effective payment system than cash’, it believes that these digital assets have the potential to ‘replace cash completely’.

Part of this reasoning is its belief that rising public use of blockchain-based digital currencies is resulting in a decreased demand for existing currencies.  As a result, central banks will be forced to release CBDCs to compete – eliminating cash along the way.

If this scenario does come true, cash may not be the only victim of CBDCs.  There are those worried about the future of other assets like Bitcoin.  The Motley Fool recently took a look at how a CBDC would affect digital currencies, and whether or not investors should be worried.

“…a CBDC network’s revolutionary potential, coupled with the legitimacy of government backing, has the potential to entice many people to flock to its coin, putting it in direct competition with decentralized cryptocurrencies. Since the latter require growing user adoption for sustained price appreciation, many cryptocurrencies could end up struggling in the face of this formidable competition.”

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Fx Analysis

Investing In Klaytn (KLAY) – Everything You Need to Know

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Klaytn (KLAY) operates as a high-performance public blockchain and decentralized ecosystem. The protocol was designed to empower businesses and entrepreneurs to create and integrate blockchain technologies. As such, the network provides a variety of helpful features designed to eliminate hurdles to blockchain adoption while streamlining the onboarding process.

What Problems Does Klaytn (KLAY) Attempt to Fix?

One of the premier issues that Klaytn developers sought out to tackle was developer and user confusion. There are many technical barriers for businesses seeking to integrate blockchain services into their traditional business systems. Klaytn removes all friction points from the equation via a simplistic interface.

Klaytn (KLAY) - Twitter

Klaytn (KLAY) – Twitter

Centralization

Another major issue that Klaytn helps to alleviate is centralization. The platform was built from the ground up with decentralization as a main characteristic of the network. In this way, Klaytn users enjoy a higher level of transparency and security.

Benefits of Klaytn (KLAY)

There are many benefits that businesses and startups realize when they join Klaytn’s network. For one, the platform has proven to be reliable. The network has developed a strong community that can assist you with your integration processes. Here are some other benefits worth mentioning.

Scalability

Klaytn offers low latency and enterprise-level scalability. Specifically, the network is capable of 3,000 tps which puts it on par with major payment processors. To make this throughput possible, the system leverages Service Chains. These off-chain protocols provide more flexibility and expandability.

Security

Klaytn is an open-source project that has been carefully vetted by the community. Additionally, the platform has undergone third-party code audits by the Y Combinator-backed blockchain security company, Quantstamp.

Klaytn Secures High Level Partnerships

Klaytn Secures High-Level Partnerships

Legacy Systems

One of the biggest advantages gained by Klaytn users is interoperability with legacy business systems. Klaytn envisions a more subtle blockchain integration where the benefits are present but the technical barriers have vanished. They provide smooth interoperability with existing data tools as part of this approach.

Expandable

Klaytn was built for Dapp developers and businesses. The ecosystem enables Bapp developers to be creative and expand on the user experience. The network’s open-source code and community give developers a powerful edge when creating their new systems.

Sustainability

Compared to the top blockchains of today, like Bitcoin and Ethereum, Klaytn is far more sustainable. The network has a small carbon footprint and low energy requirements. Much of this efficiency stems from the network operating a Proof-of-Stake consensus algorithm.

How Does Klaytn (KLAY) Work

Klaytn is able to provide a user-friendly blockchain experience due to its unique technical characteristics and features. The network combines a custom-built blockchain, cryptocurrency, community governance, and much more.

Klaytn Blockchain

The Klaytn blockchain is a Byzantine Fault Tolerant (BFT)-based public blockchain. It provides a scalable, secure, and user-friendly platform to businesses and start-ups. Klaytn has a 1-second block latency and near real-time finality.

KLaytn (KLAY) Consensus

Klaytn utilizes a Proof-of-Stake (PoS) consensus mechanism to validate the state of the blockchain. PoS networks are more energy-efficient than Proof-of-Work networks because they eliminate the use of miners. Instead, regular users secure the network by staking their tokens in a network wallet. For their efforts, users receive rewards based on the time and amount they staked.

Bapps

Blockchain Applications (BApps) play a vital role in the network. These applications are how users interact with the Klaytn blockchain. The developers have simplified many of the most popular Bapp features. There are easy-to-use options such as account type profiling, base calculation, retention analysis, and funnel analysis. They also support blockchain-specific features such as network congestion monitoring, token distribution tracking, and token economy health diagnosis.

Klaytn (KLAY) Community Governance

Klaytn integrates a community governance mechanism to ensure every user gets their voice herd. Notably, the network’s governance is made up of a mix of users and well-known organizations. For example, Binance joined the governance council recently. Regular users participate by staking their KLAY tokens.

KLAY - CoinMarketCap

KLAY – CoinMarketCap

KLAY

KLAY is the utility and governance token of the network. This cryptocurrency plays a variety of roles in the ecosystem. You can use KLAY to pay your transaction fees. It’s also a very fast and efficient medium of exchange. You can stake the token to secure passive rewards and you can even use it for collateral for secondary tokens.

Klaytn Wallet

The Klaytn Wallet is easy to navigate and very secure. The dashboard makes it simple to complete tasks like sending or receiving KLAY. Best of all, the wallet is non-custodial. As such, you’re the only one who has access to your tokens. Even the developers can’t access your tokens.

Klaytn Improvement Reserve

The Klaytn Improvement Reserve is a non-profit tasked with improving the network. The group provides both technical and financial support to projects that could positively impact the network. There are a variety of developer tools also available from the group.

History of Klaytn (KLAY)

Klaytn launched and saw immediate adoption. The network officially went live in June 2020. Notably, the network had 40 Initial Service Partners (ISP). These partners were from diverse industries including healthcare, eCommerce, entertainment, and finance.

Notably, Klaytn was launched by the South Korean tech giant and internet provider Kakao. Kakao is a dominant force in the region. The company boasts revenues of 4.16 trillion KRW. Additionally, the firm’s instant messaging app Kakao Talk has more than 220 million registered users. There is a good chance you will see more blockchain integration into these other services in the near future. Notably, integrating Klaytn into Kakao Talk would prove to be a major milestone for the sector.

How to Buy Klaytn (KLAY)

BinanceBest for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying KLAY. Use Discount Code: EE59L0QP for 10% cashback off all trading fees. 

Gate.io – This is our most recommended exchange for USA residents.

Klaytn (KLAY) – Blockchain for All

Klaytn’s approach is simple, make it easier for businesses to leverage blockchain services without it being a huge fiasco. Notably, the network’s interoperability with legacy systems is a big draw for major firms ready to make the leap. For now, Klaytn operates as a pioneering force in the enterprise-grade decentralized service provider’s arena. You can expect the network to expand its positioning as more users get hip to its helpful features.

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