Bitcoin Mining Council Confirms Elon Musk Has No Role in The Council
The Bitcoin Mining Council made a formal debut on Thursday as the debate regarding the environmental impact of the digital asset intensifies.
The Bitcoin Mining Council describes itself as a “voluntary and open forum of Bitcoin miners committed to the network and its core principles.” Its mandate is to promote transparency, endorse good practices, and foster Bitcoin education according to the official website.
MicroStrategy CEO Michael Saylor is one of the founding members, who posted a call to arms on his Twitter feed on Thursday.
“The Bitcoin Mining Council is a voluntary and open forum of Bitcoin miners committed to the network and its core principles. We promote transparency, share best practices, and educate the public on the benefits of #Bitcoin and Bitcoin mining”.— Michael Saylor (@michael_saylor) June 10, 2021
The organization consists of a group of energy-conscious North American Bitcoin mining companies. It was first suggested by Elon Musk in a tweet in late May, but he has since clarified that he will have no role at the council. The site goes out of its way to underline this point:
“Elon Musk has no role at the BMC. The extent of his involvement was joining an educational call with a group of North American companies to discuss Bitcoin mining.”
In addition to MicroStrategy, founding members include investment management firm Galaxy Digital, blockchain mining company Argo, blockchain technology firm Hive and Bitcoin mining company Riot. The founding members will cover any running costs and invite any Bitcoin miner from anywhere around the world to join. It stated that any miner joining should:
“Believe that transparency around energy usage for mining is important and agree to voluntarily share their energy mix and hash rate size for research and educational purposes.”
The BMC will hold quarterly meetings in order to analyze mining trends, partner with industry researchers, gather data for educational purposes, and foster growth in the North American BTC mining industry.
The group confirmed that it is completely independent of the Bitcoin network itself and has no intentions to disrupt its decentralization.
“We don’t seek to change the decentralized nature of Bitcoin or its core principles, but rather are working to raise awareness about Bitcoin and Bitcoin mining.”
It added that the council believes that Bitcoin’s energy usage is a feature, not a bug, providing tremendous network security. The energy consumption of global mining operations has come under the spotlight recently in the wake of Musk’s comments regarding its environmental impact.
Bitcoin Investors Holding Strong as Over 53% of Supply Inactive for Two Years
Nearly 29% of Bitcoin’s supply has not moved in the last five years, amounting to over 5.6 million BTC worth approximately $158 billion.
According to recent data compiled by the crypto analytics platform Glassnode, over 53% of Bitcoin’s circulating supply has remained inactive for the past two years, setting a new all-time high for this metric.
Checks by Investors King showed that nearly 29% of Bitcoin’s supply has not moved in the last five years, amounting to over 5.6 million BTC worth approximately $158 billion.
The data also revealed that around 2.7 million BTC estimated at $76 billion have not been touched in a decade.
Crypto influencer Anthony Pompliano noted that these inactive Bitcoin could either be lost or held by extremely disciplined investors.
The data has led some members of the community to speculate that those holding these Bitcoins bought them when the cryptocurrency was at an all-time high and are waiting for the right time to sell. As of April 10, 2021, Bitcoin was trading above $60,000.
Interestingly, the term “Bitcoin” has recently topped the list of most popular search terms in the United States, surpassing other trending keywords such as Donald Trump and Elvis Presley.
This surge in American interest in Bitcoin follows the announcement by the United States Federal Reserve about the launch of the FedNow payments system, set to be launched in July.
The instant payments platform is expected to facilitate faster and more efficient transactions.
The growing interest in Bitcoin and other cryptocurrencies is indicative of the public’s desire for alternative means of transacting value.
In conclusion, the data collected by Glassnode is a positive sign for Bitcoin as it suggests that the cryptocurrency is being held by long-term investors who are not easily swayed by market fluctuations.
As Bitcoin continues to gain mainstream adoption, we can expect its value to increase, making it a valuable asset for investors and individuals alike.
MicroStrategy Acquires 1,045 More Bitcoin, Bringing Total Holdings to 140,000 BTC
MicroStrategy, a business intelligence firm based in the United States, has acquired an additional 1,045 Bitcoin (BTC) for approximately $29.3 million at an average price of $28,016 per BTC, the company’s executive chairman, Michael Saylor, announced the news in a tweet on April 5.
A check by Investors King showed that this latest acquisition brings MicroStrategy’s total holdings to 140,000 BTC, which were acquired for approximately $4.17 billion at an average price of $29,803 per BTC.
The move is seen as a significant milestone for the company, which has been investing heavily in Bitcoin as a reserve asset.
Michael Saylor, who is ranked number 14 on Cointelegraph’s Top 100 in crypto, has been a vocal proponent of Bitcoin and has been leading the charge for corporations to adopt the cryptocurrency as a strategic asset.
Saylor has repeatedly stated that Bitcoin is the most secure and reliable store of value available in the market today and offers a unique opportunity for businesses to protect their assets from inflation.
MicroStrategy’s Bitcoin strategy appears to be dollar-cost averaging, but with vast amounts of money. The company made its first Bitcoin purchase in August 2020, and since then, it has been consistently adding to its holdings.
The latest purchase brings MicroStrategy’s total Bitcoin holdings to over $12.6 billion, a testament to the company’s confidence in the long-term potential of the cryptocurrency.
Saylor’s MicroStrategy recently repaid its Silvergate loan and purchased 6,500 BTC at the end of March, further indicating the company’s commitment to Bitcoin as a reserve asset.
The move comes at a time when more companies are beginning to explore Bitcoin as a means of diversifying their portfolios and protecting their assets from inflation.
United States to Sell 41,500 Bitcoin; Holds More than 205,000 BTC
After obtaining a court order, the U.S. government is set to sell 41,500 Bitcoin. The United States government currently holds more than 205,000 BTC as of March 27, making it the largest holder of the world’s largest digital currency.
Investors King understands that most of the bitcoins owned by the United States were seized from cryptocurrency scammers. In November 2022, the U.S. government seized 50,000 Bitcoin, following the arrest and subsequent guilty plea of James Zhong. James Zhong was a hacker who manipulated transactions system to steal bitcoin.
It would be recalled that out of the 50,000 bitcoin seized from James Zhong, the U.S. government sold 9,861 BTC for a total of $215 million on March 14, 2023.
With the latest court order, the United State government, therefore, noted that the remaining 41,490.72 BTC, which has a current value of $1.18 billion according to Bitcoin’s current price of $28,448, will be liquidated in four different batches this calendar year.
However, there has been a palpable fear that the sale of such an amount of bitcoin could significantly affect the price of the flagship cryptocurrency. Analysts believe the selling pressure can draw the price of bitcoin downward after showing an impressive ride since the beginning of the year.
Since the beginning of the year, bitcoin is up by more than 70 percent despite a number of negative news such as the collapse of three crypto-friendly banks in the United States.
It could be noted that bitcoin showed huge resilience amid the collapse of Silvergate Bank, Silicon Valley and Signature bank which shocked the U.S. banking system.
According to a report by Goldman Sach, the most capitalised cryptocurrency has so far emerged as the best performer in 2023, surpassing Nasdaq 100, gold, S&P 500, and other investment assets and sectors.
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