The Bitcoin Fear and Greed Index shows crypto investor sentiment has turned neutral following BTC’s slump below $57,000. According to data from Alternative.me, the fear and greed index sits at 54 for the first time in three months, signaling that crypto investors are neither fearful nor greedy amid the current market conditions. Investors Harbor Neutral Sentiment The last time investors harbored a neutral sentiment was on January 28, 2024, when the price of BTC hovered around $42,000. At the time, BTC was rallying, and the crypto market buzzed with excitement over the launch of the numerous spot Bitcoin exchange-traded funds, which U.S. authorities had greenlit over two weeks prior. However, the current conditions of this market sentiment are different. Bitcoin has tumbled from an all-time high of $73,700 recorded in mid-March. After experiencing heightened volatility in the past weeks, the cryptocurrency took a turn for the worse yesterday, which continued today. The fear and greed index determines the market sentiment by analyzing several factors, including bitcoin’s dominance, social media, market momentum, trends, and volatility. On a scale of 0 to 100, 0 indicates extreme fear, 50 signals neutrality, and 100 means extreme greed. In the past weeks, investor sentiment has hovered around greed, occasionally spiking to extreme greed. Alternative.me revealed the sentiment was at 67 yesterday and 72 last week, indicating that investors have been greedy. Market participants were even more greedy last month, as seen in the index spiking to 79, a number that signifies extreme greed. It remains to be seen which direction the crypto market will take in the short term: towards fear or greed. While another correction is possible, analysts expect prices to rise long-term, as they have always seen after the Bitcoin halvings. Will BTC Plunge Further? Meanwhile, bitcoin’s latest fall saw it drop below crucial support levels, with the crypto market losing more than $200 billion. Within roughly 36 hours, BTC has plummeted over 11% from $64,100 to $56,700, dragging altcoins and the rest of the crypto market. At the time of writing, BTC was still in the red but had recovered slightly and was trading at $57,200. Analysts think BTC could plunge further before resuming its rally because there have been deeper corrections in previous bull market cycles. LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!
Binance founder jailed for four months in US
The founder of cryptocurrency firm, Binance, was sentenced to four months in US prison on Tuesday after pleading guilty to money laundering charges, in the most high-profile crypto case since Sam Bankman-Fried was jailed. Changpeng Zhao, a Canadian, resigned from his post at the world’s largest cryptocurrency exchange platform late last year as part of a deal with US authorities. According to investigations by two Treasury agencies, Binance failed to prevent transactions by movements such as the Islamic State group, al-Qaeda or the armed wing of Hamas. Zhao pleaded guilty to violating US anti-money laundering laws and Binance agreed in February to pay $4.3 billion to settle charges. Prosecutors had asked the judge to impose three years behind bars for a crime that typically results in probation, according to a court filing. “He made a business decision that violating US law was the best way to attract users, build his company, and line his pockets,” Justice Department lawyers said of Zhao in a sentencing memorandum. “The sentence in this case will not just send a message to Zhao but also to the world.” Attorneys for Zhao countered in a filing that being punished with probation is just, appropriate, and in line with legal precedent. They cited Zhao’s acceptance of responsibility along with what they called his philanthropic track record. “I made mistakes, and I must take responsibility,” Zhao, who lives in the United Arab Emirates, said in a post on X, formerly Twitter, in November. He has been in the United States since that time. Binance was created in 2017 and cornered much of the crypto-trading market, turning its founder and chief executive Zhao into a billionaire. While Binance was founded in China, Zhao moved its operations to other locations internationally after a crackdown on the crypto sector by Beijing. Binance runs crypto exchanges and provides other services around the world, but it took a severe hit when crypto markets collapsed and regulators began probing the legality of its business. The volatile industry surged in 2021, with a range of complex products and celebrity endorsements propelling it to a valuation in excess of $3 trillion in 2022. But a series of scandals, including the November 2022 collapse of Binance’s main rival exchange, FTX, and criminal charges for several industry executives, saw public confidence evaporate and investors pull their money out of crypto. FTX founder Bankman-Fried was given a 25-year jail term in March. The crypto industry has bounced back in recent months, thanks in large part to US regulators giving the go-ahead for exchange traded funds (ETFs) in bitcoin which allow investors to trade the asset without actually opening a crypto account. Binance’s new CEO Richard Teng told AFP this month that the company spent hundreds of millions of dollars on compliance and was working very closely with regulators. AFP
MicroStrategy Q1 Operating Loss of $53.1M After Bitcoin Holdings Impairment Charge of $191.6M
MicroStrategy Q1 Operating Loss of $53.1M After Bitcoin Holdings Impairment Charge of $191.6M To this point, the company has not adopted fair value accounting for its bitcoin stack, resulting in the first quarter write-down despite a major rally in prices. MicroStrategy (MSTR) reported a net operating loss of $53.1 million, or $3.09 per share, in the first quarter after taking a digital asset impairment charge of $191.6 million, according to a Monday afternoon press release. While some had expected the company might adopt the new digital asset fair value accounting standard, and thus report a sizable profit thanks to bitcoin’s (BTC) first quarter rally, the company elected not to do so. By the old standard, MicroStrategy at quarter’s end valued its bitcoin holdings at a price of $23,680 each, or $5.1 billion, rather than March’s closing price of $71,028, or $15.2 billion. The company also announced a small April addition of 122 tokens to its bitcoin stack, bringing total holdings to 214,400. That would be valued at $13.5 billion at bitcoin’s current price of about $63,000. For all of 2024 so far, MSTR has acquired 25,250 bitcoins for $1.65 billion, or an average price of $65,232 each. Shares are lower by 3.3% in after hours trading. Speaking on the earnings call, CFO Andrew Kang said the company fully plans to adopt the new digital asset fair value accounting rule and is currently evaluating the best time to do so. The Financial Financial Accounting Standards Board (FASB) has mandated that the new rule be implemented by Jan. 1, 2025, but early adoption is allowed. Update (April 29, 22:31 UTC): Added comments from the CFO. Disclosure Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated. CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation. Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
SEC sued over Ethereum, crypto firm asks court to state token is not a security
A bitter legal fight between the crypto industry and the Securities and Exchange Commission grew more intense on Thursday as Consensys, a major backer of the Ethereum blockchain, filed a lawsuit against the agency in Texas federal court. The complaint seeks to head off an impending SEC lawsuit against the company over features of its popular MetaMask wallet, but also asks the court to resolve one of the biggest legal uncertainties hanging over the crypto industry by stating that Ethereum’s digital token, Ether, is not a security. In its 34-page legal filing, Consensys uses dramatic language to argue that the SEC’s efforts to exert jurisdiction over Ethereum is both illegal and a threat to blockchain technology more broadly. “The SEC’s unlawful seizure of authority over ETH would spell disaster for the Ethereum network, and for Consensys. Every holder of ETH, including Consensys, would fear violating the securities laws if he or she were to transfer ETH on the network,” the complaint states. “This would bring use of the Ethereum blockchain in the United States to a halt, crippling one of the internet’s greatest innovations.” The new lawsuit comes as SEC Chairman Gary Gensler pursues an aggressive enforcement campaign against leading companies in the crypto sector, including Coinbase and Uniswap. In recent weeks, this campaign has involved a wave of subpoenas asking firms and developers for documents related to their dealings with the nonprofit Ethereum Foundation, which supports the blockchain’s development. Gensler’s tactics have angered many in the crypto industry who have complained the SEC has failed to provide clear rules or to create a regulatory model that accounts for the distinct features of blockchain technology. Gensler has disputed this, claiming existing securities laws are clear and sufficient, and that the crypto industry refuses to comply with them. The controversy over Ethereum has been especially heated since the SEC has signaled repeatedly in the past that the blockchain’s tokens, like Bitcoin, are not securities and therefore outside its jurisdiction. This includes a landmark 2018 speech where a senior official stated that Ethereum had become “sufficiently decentralized” as well as the agency’s decision last year to allow Ethereum futures trading—an implicit acknowledgement that Ether is a commodity. Meanwhile, video has surfaced of Gensler himself, in his role as a private citizen, telling hedge funds in 2018 that Ethereum is not a security. These precedents, however, have failed to dissuade Gensler, who appears to be using a recent feature of Ethereum, known as staking, as grounds for the recent legal campaign. A warning notice and a preemptive lawsuit The Consensys complaint filed on Thursday reveals that the SEC earlier this month issued a so-called Wells Notice, which describes a formal letter warning the agency intends to sue a firm, and often leads to a settlement soon after. The complaint added that, in a related phone call, the SEC told Consensys that MetaMask was operating as an unlicensed broker dealer. According to Consensys, the SEC objects to MetaMask offering users a means to stake Ethereum on their behalf. Staking is a relatively new process for Ethereum, introduced on a blockchain-wide basis in September 2022, that replaced energy-intensive mining with a system of validators who pledge collateral in order to become a trusted validator. In an interview with Fortune, Consensys founder Joe Lubin described as “preposterous” the theory that staking transformed Ethereum from a commodity into a security. “The act of staking is really just posting a security bond so you can get paid to contribute labor and resources to help operate the Ethereum protocol. Now they’re trying to turn that into some sort of investment contract,” Lubin said. The SEC did not immediately respond to a request for comment from Fortune about the lawsuit or on the agency’s view of the legal status of staking. Lubin also stated that Gensler’s legal position appeared to be an attempt to halt the overall growth of crypto, and to justify the SEC blocking pending applications by companies to launch spot ETFs for Ethereum following the huge popularity of Bitcoin ETFs. “They are trying to regulate a technology on its merits, which the SEC shouldn’t be doing. They’re trying to stifle certain kinds of innovation. And they’re trying to do that because probably they see Ether spot ETFs as a floodgate that’s going to bring a lot of capital into our ecosystem,” said Lubin. The Consensys lawsuit was filed in Texas, which dovetails with a broader strategy of the crypto industry to tee up eventual legal appeals in the U.S. Court of Appeals for the Fifth Circuit. The circuit has shown greater skepticism of agency actions than other courts and, if the industry can win a favorable judgment, it would likely tee up an appeal for the Supreme Court. It’s unclear for now what will happen in the event the SEC chooses to file a lawsuit on its own to follow up on the Wells Notice instead of resolving the issues with Consensys in the Texas court. The complaint itself asks the court for a number of additional rulings beyond declaring that Ethereum is not a security. Those include declarations that MetaMask is not a broker dealer, and that the SEC is violating the Administrative Procedure Act and the Constitution’s guarantee of due process. It also seeks an injunction barring the SEC from conducting any investigations on the premise that Ethereum is a security.
20% Nigerians using Bitcoin to transact daily – Report
A report by an open-source blockchain website, Elastos on Thursday revealed that 20 per cent constituting at least one in five Nigerians are using Bitcoin to carry out transactions everyday. According to the platform, the research was compiled from online interviews conducted with 1,407 self-defined ‘tech savvy’ respondents in Brazil, Germany, Nigeria, South Korea, UAE, UK, and US. The interviews were completed by a third party, registered market research company and completed between 30 March and 04 April ’24. The report further revealed that 67 pee cent of Nigerians would have more trust in Bitcoin to project their life savings than traditional services such as banks, local governments and, even, cash. It read, “The inaugural BIT Index (Bitcoin; Innovation & Trust) – compiled from over 1,400 self-defined ‘tech savvy’ respondents from 7 countries across the globe – sheds light on the actual perception and use of Bitcoin in people’s daily lives, irrespective of its current valuation. Elastos’ BIT Index is part of ongoing research to better track the ‘real world’ use of Bitcoin together with users’ motivations, expectations and barriers around the same. “In particular, the data reveals the role being played by emerging markets in terms of understanding, usage and confidence around Bitcoin. Nigerian respondents’ levels of usage and trust compare starkly with those expressed from so-called ‘established’ markets such Germany and the UK and Germany where daily usage levels are just 8% (for German respondents) and (9% for their UK counterparts). “In terms of trust – in addition to Nigeria – significant proportions of respondents from Brazil (35 percent) and the UAE (32 per cent) would have more confidence in Bitcoin-based services to protect their life savings compared to those from markets such as the UK (20 per cent) and Germany (22 per cent). “When it comes to ensuring the integrity of online transactions, emerging market respondents also revealed their relative confidence in Bitcoin, compared to alternatives. According to the data 66 per cent Nigerian respondents and 35 per cent from Brazil have more confidence in Bitcoin-based systems than alternatives such as banks, or national Governments, compared to figures of just 16 per cent (Germany) and 21 per cent (UK) who feel the same. Meanwhile, Jonathan Hargreaves, Elastos’ Global Head of Business Development & ESG, described the BIT Index’s inaugural findings as indicative of the role the ‘global south’ is playing in the adoption of decentralized currencies such as Bitcoin. “The BIT Index offers a fascinating and sobering insight into the industry. The fact that over two-thirds of Nigerian consumers and a third of their counterparts from the UAE and Brazil would feel more confident entrusting their life savings in Bitcoin than traditional financial instruments speaks volumes about the protagonism these regions are already playing. In many instances, the driving factor is the absence of viable – accessible – alternatives to, for instance, conduct cross-border transactions or mitigate the impact of inflation,” he said.
Live 10th Anniversary Random Show with Kevin Rose — Exploring What’s Next, Testing Ozempic, Modern Dating, New Breakthrough Treatments for Anxiety, Bitcoin ETFs, Mike Tyson vs. Jake Paul, and Engineering More Awe in Your Life (#733) – The Blog of Author Tim Ferriss
Welcome to another episode of The Tim Ferriss Show , where it is usually my job to sit down with world-class performers of all different types to tease out the habits, routines, favorite books, and so on that you can apply and test in your own life. This time, we have a very special episode I recorded with my close friend Kevin Rose at SXSW in Austin, Texas! This week is officially the podcast’s 10-year anniversary, and there is no better way to commemorate such a wild milestone than with Kevin Rose and a little tequila. As many listeners know, Kevin was my very first guest for episode 1, way back in April 2014. Who is Kevin Rose ? Kevin (@kevinrose) is a partner at True Ventures, an early-stage venture-capital firm that has invested more than $3.8 billion in a portfolio of more than 350 companies. He also hosts The Kevin Rose Show , which offers glimpses of the future into investing, artificial intelligence, wellness, and culture, featuring conversations with experts at the vanguard of their fields. In this episode, we discuss the dangers of audience capture, novel mental health treatments, modern dating, Ozempic, time dilation, Mike Tyson vs Jake Paul, and much, much more. Please enjoy! Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, YouTube Music, Amazon Music, or on your favorite podcast platform . Watch the conversation on YouTube here. , Brought to you by Nordic Naturals Ultimate Omega fish oil , and AG1 all-in-one nutritional supplement. Eight Sleep’s Pod Cover sleeping solution for dynamic cooling and heating This episode is brought to you by AG1! I get asked all the time, “If you could use only one supplement, what would it be?” My answer is usually AG1, my all-in-one nutritional insurance. I recommended it in The 4-Hour Body in 2010 and did not get paid to do so. I do my best with nutrient-dense meals, of course, but AG1 further covers my bases with vitamins, minerals, and whole-food-sourced micronutrients that support gut health and the immune system. Right now, you’ll get a 1-year supply of Vitamin D free with your first subscription purchase —a vital nutrient for a strong immune system and strong bones. Visit DrinkAG1.com/Tim to claim this special offer today and receive your 1-year supply of Vitamin D (and 5 free AG1 travel packs) with your first subscription purchase! That’s up to a one-year supply of Vitamin D as added value when you try their delicious and comprehensive daily, foundational nutrition supplement that supports whole-body health. This episode is brought to you by Eight Sleep ! Eight Sleep’s Pod Cover is the easiest and fastest way to sleep at the perfect temperature . It pairs dynamic cooling and heating with biometric tracking to offer the most advanced (and user-friendly) solution on the market. Simply add the Pod Cover to your current mattress and start sleeping as cool as 55°F or as hot as 110°F. It also splits your bed in half, so your partner can choose a totally different temperature. And thanks to the Pod Cover’s sleep and health tracking, you can wake up to a personalized sleep report each morning that provides key insights about how certain behaviors—like meditation or exercise—are impacting your sleep and overall health. The weather is heating up, but with Eight Sleep’s Pod Cover, your sleep doesn’t have to. G o to eightsleep.com/Tim today and save $200 on the Pod Cover. Eight Sleep currently ships within the USA, Canada, the UK, select countries in the EU, and Australia. Click here to claim this deal and unlock your full potential through optimal sleep. This episode is brought to you by Nordic Naturals , the #1-selling fish-oil and algae-oil brand in the U.S.! Trusted by doctors and health-care professionals since 1995, Nordic Naturals Ultimate Omega and Algae Omega provide foundational support for heart and brain health, immune-system function, and more. More than 80% of Americans don’t get enough omega-3 fats from their diet. That is a problem because the body can’t produce omega-3s, an important nutrient for cell structure and function. Nordic Naturals solves that problem with their Ultimate Omega fish-oil formula—made exclusively from 100% wild-caught fish—and their 100% vegan Algae Omega—made from microalgae, the original source of marine omega-3s. Go to Nordic.com/Tim and discover why Nordic Naturals is the #1-selling omega-3 brand in the U.S. Use promo code TIM for 20% off your order of Ultimate Omega . What was your favorite quote or lesson from this episode? Please let me know in the comments. Want to hear the last time Kevin and I put on a Random Show? Listen to our conversation here, in which we discussed tequila, resolutions of New Years past, early investor advantages, privacy and liability concerns in an AI-guided world, physical reboots, perilous cocktails, how NFTs drove Kevin to ketamine, tattoos, ayahuasca agony alleviation and alternatives, minimalist delegation, and much more. SELECTED LINKS FROM THE EPISODE Connect with Kevin Rose : Website | Instagram | Twitter | Threads SXSW Conference & Festivals Red Ocean Strategy vs. Blue Ocean Strategy I Blue Ocean Strategy Dr. Martine Rothblatt — A Masterclass on Asking Better Questions and Peering Into the Future (#487) – The Blog of Author Tim Ferriss Ed Catmull, President of Pixar, on Steve Jobs, Stories, and Lessons Learned | The Tim Ferriss Show #22 Aizuchi: A Beginner’s Guide to Japanese Grunting Etiquette | FluentU Japanese Be Useful — Arnold Schwarzenegger on 7 Tools for Life, Thinking Big, Building Resilience, Processing Grief, and More | The Tim Ferriss Show #696 Hugh Jackman on Best Decisions, Daily Routines, The 85% Rule, Favorite Exercises, Mind Training, and Much More | The Tim Ferriss Show #444 Tony Robbins – On Achievement Versus Fulfillment | The Tim Ferriss Show #178 Jamie Foxx on Workout Routines, Success Habits, and Untold Hollywood Stories | The Tim Ferriss Show #124 Jamie Foxx Part 2 – Bringing the Thunder | The Tim Ferriss Show #167 Balaji Srinivasan on the Future of Bitcoin and Ethereum, How to Become Noncancelable, the Path to Personal Freedom and Wealth in a New World, the Changing Landscape of Warfare, and More | The Tim Ferriss Show #506 A Fictional World Built for These Chaotic Times | The Legend of CØCKPUNCH How Do Cryptocurrency Exchange-Traded Funds (ETFs) Work? | Investopedia 19 Bitcoin ETFs and Their Fees, Promotions, and Holdings | NerdWallet Yuga Labs Acquires PROOF | Yuga Labs News Yuga Labs Envisions the Otherside as a Web3 Native Roblox for Adults | PlayToEarn Is Tequila a Stimulant or Depressant? | My Time Recovery Fast with Zero | Zero Longevity The Best Moments in Diggnation History | Diggnation Funding Cutting-Edge Scientific Research | Saisei Foundation Transcranial Magnetic Stimulation: A Review of Its Evolution and Current Applications | Industrial Psychiatry Journal The Limitations of DIY TMS and At-Home Devices | NeuroStim Evolutionary Action | Darwin Awards Accelerated TMS: Moving Quickly into the Future of Depression Treatment | Neuropsychopharmacology Nolan Williams — A Glimpse of the Future: Electroceuticals for 70%–90% Remission of Depression, Brain Stimulation for Sports Performance, and De-risking Ibogaine for TBI/PTSD | The Tim Ferriss Show #714 Stanford Accelerated Intelligent Neuromodulation Therapy (SAINT) for Treatment-Resistant Depression | American Journal of Psychiatry Innovative, Noninvasive Treatment | BrainsWay Deep TMS Insane Clown Posse: Miracles (Official Music Video) | Psychopathic Records The Origin of Great Founding Stories | Magnus Ventures TMS Devices Review: Side-By-Side Comparison Table | Florida TMS Clinic Zap to the Brain Alters Libido in Unique Sex Study | New Scientist Supercommunicators: How to Unlock the Secret Language of Connection by Charles Duhigg | Amazon Jinjer: Pisces (Live Session) | Napalm Records Jinjer | Website Sohn: Tremors (Live with the Metropole Orkest) | Sohn Sohn | Website Where Wall Street Unites to Fight Childhood Cancer | The Sohn Conference Foundation Apple Is Doing Its Part to End Green Bubble Shaming. It’s Our Turn. | The New York Times Google Gemini Update & New AI Tools | AI Revolution Apple Can’t Build AI, So It’s Reportedly Asking Google Gemini to Power Siri | Gizmodo Mike Tyson vs. Jake Paul Fight Rules up in Air. Here’s Why. | USA Today Airlines Want You to Lose Weight. Ozempic May Save Them Millions | Business Insider The Peter Attia Drive Podcast Major CVD Event Risk Cut by 20% in Adults without Diabetes, with Overweight or Obesity | American Heart Association Dexcom Continuous Glucose Monitoring | Dexcom Will Steroids Shrink My Balls? | Men’s Health Raisinets Milk Chocolate-Covered California Raisins | Amazon Compatibility Before Photos? A New Dating App Takes a Personality-First Approach to Online Dating | Forbes Outlive: The Science and Art of Longevity by Peter Attia | Amazon What Makes Life Enjoyable at an Older Age? Experiential Well-Being, Daily Activities, and Satisfaction with Life in General | Aging & Mental Health The Experiential Life | Resilience Why You Should Seek More Awe in the New Year | Tim Ferriss Ace Ventura: Pet Detective | Prime Video Everyday Dharma: 8 Essential Practices for Finding Success and Joy in Everything You Do by Suneel Gupta | Amazon A Personalized Journey to Inner Peace, Clarity, and Wellness | Transcendental Meditation Meditation Training Program | The Way SHOW NOTES [07:20] First live Random Show ? [07:50] Reasons to celebrate. [08:30] How long can this go on? [10:15] Mmm…Mmm. [11:53] Inflection points. [13:00] Interesting over impulse. [14:46] Bitcoin ETFs. [17:22] PROOF news. [18:41] What’s Kevin’s next project? [21:15] Don’t DIY your TMS. [22:57] The SAINT protocol and accelerated TMS. [23:42] Kevin wonders how magnets work. [24:27] How accelerated TMS has helped me. [28:02] Consumer access to accelerated TMS. [31:50] How TMS feels, and other possible uses. [32:49] Potential downsides. [35:10] How to find out more about accelerated TMS. [38:18] How to appear human in social situations. [45:20] Jinjer and Sohn. [46:24] Android and Gemini. [48:41] Content production and future fame. [49:58] Jake Paul vs. Mike Tyson. [52:02] Kevin’s deflated balls. [55:49] My single life. [59:39] Extending experiential lifespan. [1:06:12] This is (Henry Shukman’s) The Way. [1:07:16] Thank you! Good night! PEOPLE MENTIONED Martine Rothblatt Ed Catmull Arnold Schwarzenegger Hugh Jackman Tony Robbins Jamie Foxx Balaji Srinivasan Nolan Williams Charles Duhigg Gary Vaynerchuk Neil Strauss Oprah Winfrey Jake Paul Mike Tyson Peter Attia Suneel Gupta Martha Stewart Henry Shukman is one of the most popular podcasts in the world with more than one billion downloads. It has been selected for “Best of Apple Podcasts” three times, it is often the #1 interview podcast across all of Apple Podcasts, and it’s been ranked #1 out of 400,000+ podcasts on many occasions. To listen to any of the past episodes for free, check out The Tim Ferriss Show this page .
Jack Dorsey’s payments company, Block, is building its own bitcoin mining system
Jack Dorsey says that his payments company, Block (formerly Square), is expanding its bitcoin mining ambitions from designing chips to developing a full bitcoin mining system. In a post Tuesday, the global tech firm announced that it had finished the development of its own standalone three-nanometer bitcoin mining chip and is now in the process of working through the design with a “leading global semiconductor foundry.” Block also unveiled plans to broaden out the scope of its mining project to include system design. Jack Dorsey says that his payments company, Block (formerly Square), is expanding its bitcoin mining ambitions from designing chips to developing a full bitcoin mining system. In a post on Tuesday, the global tech firm announced that it had finished the development of its own standalone three-nanometer bitcoin mining chip and was now in the process of working through the design with a “leading global semiconductor foundry.” Block also unveiled plans to broaden out the scope of its mining project to include system design. “We’ve spent a significant amount of time talking to a wide variety of bitcoin miners to identify the challenges faced by mining operators,” Block writes. “Building on these insights and pursuant to our goal of supporting mining decentralization, we plan to offer both a standalone mining chip as well as a full mining system of our own design.” Democratizing access to bitcoin mining — the process of creating new bitcoins by solving increasingly complex computational problems — is a big part of the mission statement of this project. “Mining isn’t accessible to everyone,” Dorsey wrote when Block first entered the business of building mining hardware in 2021. “Bitcoin mining should be as easy as plugging a rig into a power source. There isn’t enough incentive today for individuals to overcome the complexity of running a miner for themselves.” Indeed, members of the bitcoin community have long been concerned that hardware vulnerabilities might compromise network stability. The ASIC chip used in mining rigs, for example, is manufactured in China, a country that has proven hostile to the crypto sector in recent years. Block said in its memo on Tuesday that the goal of this project is to both decentralize the supply of bitcoin mining hardware and the distribution of hashrate — a proxy for industry competition and mining difficulty. To that end, the fintech firm is solving one major barrier to entry: Mining rigs are hard to find and expensive, and delivery can be unpredictable. The company was light on the details in this latest announcement, but Dorsey posted in 2021 that the company was considering a “bitcoin mining system based on custom silicon.” At the time, Dorsey went on to share his thoughts on the need for more of a focus on vertical integration, as well as on silicon design, which he says is too concentrated among a few companies. Block’s general manager for hardware, Thomas Templeton, previously disclosed plans to improve reliability and the user experience of mining, addressing common issues around heat dissipation and noise production. The announcement comes just after the most recent bitcoin halving, which took effect late on Friday. The event happens roughly every four years, and it cuts the issuance of new bitcoin in half. The idea of making the mining process more accessible has to do with more than just generating new bitcoin. Instead, Dorsey sees it as a long-term need for a future that is fully decentralized and permissionless. “Mining needs to be more distributed,” Dorsey posted on X in October, when he first floated the idea. “The more decentralized this is, the more resilient the bitcoin network becomes.” Toward that end, Block’s venture arm backed Gridless, a company that operates bitcoin mines from renewable power sources in Kenya, Malawi and Zambia.
Bitcoin miners brace for impact as halving goes live
The bitcoin halving took effect late on Friday, cutting the issuance of new bitcoin in half. Bitcoin miners have spent years diversifying their business models and upgrading their facilitates to brace for the cut to revenues. Some mining firms have diversified into supporting the underlying infrastructure necessary for artificial intelligence. AUSTIN, TEXAS — Adam Sullivan left investment banking to mine bitcoin at an awkward time. It was May 2023, bitcoin was trading at around $21,000, U.S. regulators were in the thick of cracking down on the sector writ large, and Core Scientific, the company he had agreed to take over, was battling angry lenders in a Texas bankruptcy court over tens of millions of dollars in outstanding debt. But Sullivan knew that, with a lifeline, he could get the business to a much better place. That’s because the halving was on the way, and with it would likely come a big rally in bitcoin. Late Friday night, the bitcoin code automatically cut new issuance of the world’s largest cryptocurrency in half. It happens roughly every four years, and in addition to helping to stave off inflation, it historically precedes a major run-up in the price of bitcoin. The technical event is relatively simple: Bitcoin miners get paid in bitcoin to validate transactions, and after 210,000 blocks of transactions are computed and added to the main chain, the reward given to the miners securing bitcoin is ‘halved.’ There are more than a dozen publicly traded miners on the network and thousands of smaller, private ones around the globe, constantly racing to process transactions and get paid in new bitcoin. Because the event leads to a cut to rewards paid to miners directly, they’ll be the first ones to feel the impact of the halving. Typically, when the halving cuts supply, it’s led to huge rallies for bitcoin. In fact, the previous (and only) three halvings in the chain’s history have come before every bull run, in which the coin has touched new all-time highs and a surge of investors have entered the market for the first time. That rapid price increase has helped many miners stave off the worst since it tends to offset the impact of having the block prize cut in half. “As a company that was already in the process of scaling our infrastructure during the previous halving, we know the toll that halvings can take on a company if it is not adequately prepared,” Core’s Sullivan told CNBC. The aggregate market cap of the 14 U.S.-listed bitcoin miners tracked by JPMorgan analysts, which accounts for around 21% of the global Bitcoin network, declined 28% over the first half of April to $14.2 billion, reaching year-to-date lows. Bitdeer was the best-performing stock over the period, down around 20%, versus Stronghold Digital, which was 46% lower. Some have billed the 2024 bitcoin halving as a seminal moment for the mining sector. Depending on how much prep work miners have done, it could easily make or break them. “Being prepared for a halving means evaluating all of your power strategies, all of your software capabilities, all of your operations,” continued Sullivan. Others are less concerned given recent price moves in bitcoin. In a research note from Needham on Apr. 16, analysts said they expect the halving to only have a modest impact to miners’ estimated EBITDA margins, despite the 50% reduction in revenue, since the price of bitcoin has been trading in the range of $60,000 to $70,000. “We expect geopolitical tensions and interest rate policy to be the biggest near-term drivers of crypto price action,” Needham analysts wrote, adding that at a bitcoin price above $60,000, the halving is “derisked for nearly all public miners.” The bank did, however, single out their preference for low-cost bitcoin producers like Riot Platforms, Bitdeer, and Cipher Mining. Meanwhile, if bitcoin prices fall, Needham says the most outsized native impact will be felt by higher cost producers that are also levered to higher bitcoin prices via large treasury holdings. Analysts from JPMorgan echoed a similar sentiment, writing in an Apr. 16 research note that they think “recent weakness offers an attractive entry point” for investors and that they are “especially bullish” on Riot, which they believe offers attractive relative valuations. Years spent bracing for the halving Miners have had years to prepare for the halving, including seeking lower power costs and upgrading their fleets to more efficient machines. “Bitcoin’s halving happens like clockwork every four years,” said Haris Basit, chief strategy officer of Bitdeer Technologies Group. “It’s a known variable that is a benchmark for us to remain focused on operational excellence.” To that end, the Singapore-headquartered mining firm has invested in new data centers, but its core strategy has been to increase vertical integration through research and development. 25% of its staff is focused on R&D efforts, which Basit says have “led to new innovations and revenue pathways, such as our recently announced 4nm mining rigs and AI Cloud offerings.” Analysts at Cantor Fitzgerald recently named Bitdeer as having one of the industry’s lowest “all-in” cost-per-coin. Greg Beard, the CEO and Chairman of Stronghold Digital Mining, tells CNBC that “Miners who own their low-cost power are better positioned,” said Beard. “Operational costs will be lower, allowing them to be more flexible with their capital.” Core’s Sullivan agrees, noting that bitcoin mining data centers in the future will work hand-in-glove with power generators and grid operators to serve as a virtual battery for grid operators – allowing them to increase base load, curtail bitcoin data centers when they need to, and avoid peak generation loads, which he says are dirty and expensive. “We own and operate our infrastructure, giving us greater control over operational and strategic decisions, such as the potential to expand into high-performance computing hosting,” said Sullivan. Core Scientific, which launched in 2017 and now manages seven mining sites in five U.S. states, also owns the full technology stack. The company has been looking to diversify its revenue streams beyond purely bitcoin. Sullivan says that existing data centers offer reconfiguration opportunities to accommodate new types of high-value compute. “Certain data centers are located in close proximity to major metropolitan areas, making them candidates for low-latency, high-value compute applications,” said Core’s CEO. Riot Platforms CEO Jason Les told CNBC that preparation for the halving came down to the company’s long-standing focus on achieving a low cost of power, strong balance sheet, and significant scale of operations. Les says that’s what has positioned the firm to both withstand the halving with positive margins and be well positioned for upside on the other side of it. “Our new Corsicana Facility was energized just this week, and we will be significantly scaling up our hash rate with next-generation equipment at that new site over the remainder of the year,” said Les. “As a result, we are positioned to mine more bitcoin per day at the end of the year than we do today, despite the halving.” Marathon Digital, which has seen its stock rise more than 70% in the last year, took a different approach to scaling the business than its rivals. CEO Fred Thiel tells CNBC that the company grew quickly using an asset-light approach, where Capex was spent on mining rigs rather than infrastructure. “In December, we owned less than 5% of the sites where we were hosting our miners,” said Thiel. “Today we now own 53% of our total 1.1 gigawatts of capacity, having purchased it at less than the build and replacement cost.” Owning sites lowers Marathon’s cost to mine by up to 20% on a marginal cost basis. Thiel also noted that by the end of 2024, Marathon expects to further improve efficiency by 10% to 15% as they deploy the next generation rigs across their new sites. That boost to efficiency isn’t just about new gear, however. The firm is deploying its own custom firmware, which allows it to operate even more efficiently. Marathon, along with other mining firms, has begun diversifying its business model into ancillary operations beyond purely bitcoin mining, as well. Thiel says the company recently launched an energy harvesting division, where they are compensated for converting stranded methane and bio-mass into energy, which they then sell heat back into an industrial or commercial process. The service essentially subsidizes and lowers Marathon’s cost to mine significantly. The company expects this new business line to generate a significant portion of its revenues by the halving in 2028. Diversifying revenue The April 2024 bitcoin halving looks a lot different than the three that came before it. For years, increased competition resulting from new miners coming online has been cutting into profits, because more miners means more people are sharing the same pool of rewards. In a research note from JPMorgan on Apr. 16, analysts note that the network hashrate, a proxy for industry competition and mining difficulty, was up 4% in April from the month before. Stronghold’s Beard says the halving is a headwind dwarfed by the global hashrate increasing nearly five-fold from the last one in May 2020. “Mining is a tough industry especially because there are a lot of nation states that have extra power power and they’re dedicating it to mining,” said Nic Carter of Castle Island Ventures. “It’s a free market, anybody can enter into it as long as they have the basics.” U.S. spot bitcoin exchange-traded funds have also significantly shifted the pricing dynamics. In years past, the price of bitcoin didn’t surge until after the halving. But in the wake of record flows into these spot bitcoin funds, the world’s largest cryptocurrency touched a fresh all-time-high above $73,000 in March. “The recently approved bitcoin ETFs have proven to be huge pipelines of capital into bitcoin and that universe of ETFs continues to grow with the recent approvals in Hong Kong as well,” said Riot’s Les. “We think the price action we’ve seen in bitcoin year-to-date reflect that and has us very optimistic on what bitcoin mining economics can look like in the months and years post-halving.” Blackrock’s ETF reached $17 billion in net assets within a few months of launching. Beard of Stronghold tells CNBC that if Blackrock added even just a billion dollars more of bitcoin in April to its ETF, it would single handedly create demand for more coins than the mining industry will supply post halving. What is also different this time around is that the block reward is no longer the primary form of miner revenue. Recent programming innovations in bitcoin have given way to a burgeoning ecosystem of projects building on top of bitcoin’s blockchain, which has translated to greater transaction fee revenue for miners. There is a limit to how large the blocks can go but the value of those blocks is about to increase significantly, according to Bill Barhydt, who is the CEO and founder of Abra. From Barhydt’s vantage point, he supports miners with a mix of services, including their auto liquidations, so he has access to a lot of macro data across the sector. “The math is simple,” begins Barhydt. “Bitcoin blocks are fixed in size and the demand for data within those blocks is going to increase significantly for several reasons, including more retail wallet holders moving their bitcoin into and out of storage, new uses cases like Ordinals (NFTs for bitcoin) and DeFi on bitcoin, institutional settlement requirements for exchange traded products in the U.S., Hong Kong, Europe, etc., lightning settlement transactions, and more.” At the current rate of adoption, Barhydt believes that transaction fees in this cycle would likely peak within 24 months at 10 times their cost during the previous cycle peak, due to a combination of a higher price for bitcoin itself, combined with higher demand for the space inside each block. Castle Island’s Carter isn’t so sure that fee-based revenue can completely make up for lost income post-halving. “It’s not entirely clear that fees are fully offsetting the lost revenue, and in fact, I don’t expect that to happen” said Carter. Fees tend to be really cyclical. They rise sharply during periods of congestion, and they fall back to near zero during other normal periods. Carter cautions that miners will see spikes in fees, but there is not yet an enduring, strong, and robust fee market most of the time. Swapping ASICs for AI In the last year, there has been a surge in demand for AI compute and infrastructure that can support the massive workloads required to power these novel machine learning applications. In a new report, digital asset fund manager CoinShares says it expects to see more miners shift toward artificial intelligence in energy-secure locations because of the potential for higher revenues. Already, mining firms like BitDigital, Hive, Hut 8, Terawfulf, and Core Scientific all have either current AI operations or AI growth plans. “This trend suggests that bitcoin mining may increasingly move to stranded energy sites while investment in AI grows at more stable locations,” write analysts at CoinShares. But pivoting from bitcoin mining to AI isn’t as simple as re-purposing existing infrastructure and machines. The data center requirements are different, as are the data network needs. “AI presents several challenges, notably the need for distinct and considerably more costly infrastructure, which establishes barriers to entry for smaller, less capitalized entities,” continues the report. “Additionally, the necessity for a different skill set among employees leads to increased costs as companies hire more AI-skilled talent.” The rigs used to mine bitcoin are called ASICs, short for Application-Specific Integrated Circuits. The “Specific” in that acronym means that it can’t be used to do other things, like supporting the underlying infrastructure for AI. “If you’re a bitcoin miner, your machines can’t be repurposed,” explains Carter. “You have to buy net new machines in order to do it and the data center requirements are different for AI versus bitcoin mining.” Sullivan says that Core Scientific, which has been mining a mix of digital assets since 2017, began to diversify into other services in 2019. “The company has owned and hosted Nvidia DGX systems and GPUs for AI computing, having built and deployed a specialized facility specifically for high-value compute applications at our Dalton, Georgia data center campus,” he said. Core Scientific has also partnered with CoreWeave, a cloud provider which provides infrastructure for use cases like machine learning. Sullivan says the combined capabilities will support both AI and High Performance Compute workloads, resulting in an estimated revenue of $100 million, though he says the total potential revenue is much higher given their significant infrastructure footprint that can be fitted to host some of the most advanced GPU compute coming to market. “Bitcoin mining is an early example of high-value compute, attracting significant capital and a number of companies scaling their operations to support the Bitcoin network,” said Sullivan. But Sullivan thinks few operators will be able to make the transition to AI. Sullivan continued, “Bitcoin mining sites can only be repurposed if they meet the attributes that are required for HPC. Many existing sites across North America do not meet these needs.”
Bitcoin Price Prediction: Will Bitcoin Reach $100,000 This Year?
Bitcoin has always been synonymous with volatility. Its value has experienced meteoric rises and precipitous falls, making it a subject of both fascination and apprehension for investors worldwide. However, the recent Bitcoin halving event has injected fresh uncertainty into the market, leaving traders and enthusiasts speculating about its next move. Bitcoin Halving: What Happened Bitcoin Halving: What Happened The Bitcoin halving, a programmed event designed to reduce the reward for mining new blocks by half, occurred recently. Traditionally, this event has been associated with significant price rallies, as the reduced supply of new coins theoretically leads to increased scarcity and higher prices. However, contrary to expectations, the immediate aftermath of the halving saw only a modest uptick in Bitcoin’s price. Despite the initial disappointment, it’s essential to understand that the effects of the halving are not instantaneous. While it may take some time for the market to fully absorb the impact, the reduction in miner rewards means less Bitcoin flooding the market, potentially leading to increased demand and higher prices in the long term. Bitcoin Price Today USD: Is Bitcoin a Good Buy? Bitcoin Price Today USD: Is Bitcoin a Good Buy? At the time of writing, Bitcoin is trading around $64,600, having rebounded from a recent support level of $62,000. The cryptocurrency experienced a brief dip to $59,500, only to swiftly recover, indicating robust support at the $62,000 mark. Currently, the crucial price zones to watch are the $62,000 support and the $72,500 resistance levels. Bitcoin Price Prediction: How high will Bitcoin reach? Bitcoin Price Prediction: How high will Bitcoin reach? In the short term, Bitcoin is expected to retest the $72,500 resistance level. Should it fail to break through convincingly and instead linger in this zone, a retrace towards $60,000 could be on the cards, presenting a potential shorting opportunity. However, a decisive breach of the resistance would signal a bullish continuation, setting sights on the psychological barrier of $80,000 and potentially paving the way for further gains towards the elusive $100,000 mark. Best Places to Buy Bitcoin Post-Halving Best Places to Buy Bitcoin Post-Halving For those considering entering the Bitcoin market post-halving, it’s crucial to choose a reliable and reputable exchange. If you’re unsure where to start, visit our exchange comparison, where we analyze and compare the best crypto exchanges to help you make informed decisions.
Bitcoin halving isn’t a big deal for long-term investors, but may have a ‘huge’ impact on one key group, says Columbia professor
Bitcoin halving isn’t a big deal for long-term investors, but may have a ‘huge’ impact on one key group, says Columbia professor Bitcoin’s “halving” is expected to happen soon. But its potential impact depends on your relationship to the coin; it’s likely to affect miners and investors differently. “To the people who own bitcoin because they think it’s a good store of value, this halving is not that big of a deal. But to the miners, it’s a huge deal,” Omid Malekan, an adjunct professor at Columbia Business School and author of “Re-Architecting Trust: The Curse of History and the Crypto Cure for Money, Markets, and Platforms,” tells CNBC Make It. Miners receive bitcoins, known as block rewards, for verifying and validating transactions and helping keep the blockchain network secure. The miners who receive them can then hold, trade or sell them. This is also how new digital coins enter into circulation. Since there will only ever be 21 million bitcoin, the halving is a technical event written into bitcoin’s code that splits the block reward miners receive in half every four years. In 2009, miners were rewarded 50 bitcoin. In 2012, they were rewarded 25 bitcoin, in 2016, they received 12.5, and in 2020, they received 6.25. Here’s how the halving may impact both investors and miners. What the bitcoin halving may mean for investors While the halving itself doesn’t directly impact bitcoin’s price, investors’ anticipation of the event can lead to highly erratic price movements, says Douglas Boneparth, a certified financial planner and president of Bone Fide Wealth. Boneparth has also held bitcoin since 2014. “As the halving approaches, speculation typically increases, potentially leading to heightened volatility in the bitcoin market,” he says. “Investors might buy into bitcoin in anticipation of potential price increases, but there’s no certainty or guarantee of that and, quite frankly, this only adds to the volatility.” Additionally, it’s difficult to pin down what exactly drives bitcoin’s fluctuations and declines in price. Unlike stocks and bonds, cryptocurrency doesn’t derive its value from an underlying asset. Although the halving creates more scarcity, bitcoin doesn’t exactly follow the typical rules of supply in demand. “You’d think having a restricted supply should always mean the price goes up, but that’s not true,” Boneparth says. “If that’s your thesis, then you’re not taking into account a myriad of factors that could cause the price of bitcoin to move in any which way on any given day.” What bitcoin’s halving may mean for miners In 2024, the block reward will be reduced to 3.125 bitcoin, which is worth around $200,122 as of April 19 at the time of publication. However, since bitcoin mining typically requires expensive hardware and a vast amount of energy, it can be an expensive endeavor. That’s why some miners will need to weigh their costs versus the potential payout, Malekan says. While miners can earn revenue from transaction fees, they earn the majority of their money from block rewards, which will essentially be cut in half after the halving, he says. “Miners need their revenues to be more than their costs, like any business,” Malekan says. “What is likely to happen after the halving is that some miners will no longer be profitable, and they will stop mining.” Invest with caution If you’re interested in investing in bitcoin, tread carefully when it comes to delving into the world of crypto. Although bitcoin’s price briefly hit a record high in March, its past performance shouldn’t be used to try to anticipate how well it may do in the future, as with any financial asset. And since crypto is considered to be a highly volatile asset that’s subject to wild price swings, there’s no guarantee that you’ll be able to earn a profit from your investment. “You’re dealing with something that’s very volatile and if you’re not careful, it might not work out if you’re trading bitcoin in the short term,” Boneparth says. Want to make extra money outside of your day job? Sign up for CNBC’s new online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories. Register today and save 50% with discount code EARLYBIRD. Plus, sign up for CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life.
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