Bitcoin Miners Moving To Texas?
An interesting story out on CNBC about how China's Bitcoin miners could be moving to Texas. This makes plenty of sense from a risk management perspective and could be an environmental win as well. Texas has some of the cheapest energy costs not only in the US but also the world so it makes plenty of sense. https://www.cnbc.com/2021/06/15/chinas-bitcoin-miner-exodus-.html
I used to work in oil and gas and one of the things about Natural Gas is that you end up producing more than you can collect and transport so you end up with flaring, which is basically burning off the excess. Now, what if you could get a Bitcoin mining rig to run off the excess instead of flaring it? Boom!
You've just reduced wastage and made Bitcoin mining a lot more environmentally friendly at the same time.
A Whale just sold 1,500 BTC
Another big story making the rounds is how a Bitcoin whale sold 1500 Bitcoin. That is roughly $60 million worth for anyone who doesn't want to do the math. Crazy amount and so what do we make of such a large transaction? Is it a whale heading for the exits?
Here is the address for anyone wanting to look: https://bitinfocharts.com/bitcoin/address/1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ
Personally, I wouldn't be too worried that they're heading for the exits. They still hold a ton more, maybe more than 100 thousand bitcoin if I understand the chart correctly. This could just be for tax purposes or just a tactical shift. But it's not like when the Litecoin founder sold at the top back in Dec 2017.
SEC will not tackle crypto regulation in 2021
Wow this is a major bit of news. A lot of the fear regarding crypto regulations incoming get kicked to 2022. To begin with, the new SEC chairman is relatively crypto friendly so I wouldn't worry about too onerous regulation. That said, pushing this to 2022 is bullish!
For what its worth, the chairman was teaching Blockchain and Money at MIT a couple of years ago so I'm going to trust that this new SEC will have a fair and balanced approach to crypto.
That said, there are tons of scams in crypto right now and I do worry for the unsophisticated investor who might get caught up in one of these.
Well, that's a roundup of the important news stories in crypto along with my take going on the past 24 hours. Do check out the links for more details. Who knows what the next 24 hours bring.