Carbon-neutral Bitcoin? A new approach is being taken to offset carbon emissions from Bitcoin

Some cryptocurrency businesses are now using new models to calculate their Bitcoin carbon footprints.

Billion-dollar businesses around the world are betting big in Bitcoin (BTC). Nickel Digital Asset Management, an European investment manager, recently found that around $9.6 billion has been invested in Bitcoin (BTC) by 20 publicly listed companies. This is despite their market capitalization exceeding $1 trillion. Individual investors are also showing increasing interest in the asset.

Grayscale Research’s “Third Annual Bitcoin Investor Study”, found that Bitcoin demand has increased tremendously. The study found that 55% of Bitcoin investors have bought the asset in the past 12 months. Grayscale’s report notes that Bitcoin investors are now interested in 59%, up from 55% for 2020. This is consistent growth.

While Bitcoin’s popularity is growing, environmental concerns have grown more prominent than ever. Grayscale Research’s investor survey also revealed that more than 30% of investors are concerned by Bitcoin’s potential negative effects on the environment. This concern was only apparent in 2021 as evidenced by the report.

Calculate Bitcoin carbon emissions using models

New models have emerged to assist investors and businesses in understanding how to make their Bitcoin holdings sustainable, given the increasing distress caused by Bitcoin’s carbon footprint. The Frankfurt School Blockchain Center and digital asset manager INTAS.tech released a Nov. 16 study that outlined a new way to offset the carbon dioxide emissions from the Bitcoin network. There are two possible approaches to the formula: one transaction-based and one ownership-based.

Benjamin Schaub, senior consultant with INTAS.tech, explained to Cointelegraph that companies could use the formula for Bitcoin ownership and transactions to calculate their carbon footprint, which should then be offset. This model is great because all of the data is available publicly. It’s not about assumptions, it’s all about how companies interact with the Bitcoin network.

Schaub said that Iconic Holding GmbH, an exchange-traded product provider in Germany, is using this method to ensure sustainability. “We are also in discussions with a few very large exchanges. “I strongly believe that the next year will see major players in this space care more about this subject.”

Although it is difficult to predict the future of Bitcoin, it is notable that major exchanges and exchange traded funds (ETFs), have begun to use similar strategies to offset Bitcoin’s carbon footprint. Schaub pointed out that BitMEX, a crypto exchange, is trying to make its BTC holdings completely carbon-neutral. A BitMEX Research blog post recently stated that on-chain transaction fees are the best way for users to assess Bitcoin’s carbon footprint. Cointelegraph was told by a BitMEX spokesperson that $1 can be spent on Bitcoin transaction fees to incentivize 0.001 metric tons carbon emissions. This is based on the company’s formula.

Only a few options are currently available for companies to offset their Bitcoin carbon emissions. Sandner commented that transaction fees become increasingly important as the Bitcoin network age. He believes companies should consider a transaction-based approach to carbon neutrality.

It’s becoming increasingly important for companies to offset their Bitcoin carbon emissions, but it’s crucial to acknowledge the difficulties associated with these models.

Sandner, for example, noted that the numbers in the model he helped to create are constantly changing. “The hashrate is changing, for example, as we saw recently with the Chinese mining ban. The hashrate fell by 50%.” Sandner knows that there are fluctuations in metrics and this must be considered. Sandner said that every country has its own mix of CO2 intensive energy. He also noted that Norway is more environmentally friendly than other countries. Sandner also pointed out that carbon prices must be closely monitored, noting that they have been rising during December.

Two traders have their top alternative cryptocurrency picks, despite bitcoin’s low value of $50,000

As the Federal Reserve began its two-day meeting on Tuesday, cryptocurrencies were watching.

Recent months have seen the possibility of a halt to stimulative monetary policies.

Bitcoin gained some ground Tuesday, but it remains well below the psychologically significant $50,000 mark. It is also well below its November highs of $70,000.

CNBC’s Trading Nation asked its traders to describe their strategies to maximize exposure to cryptospace heading into 2022.

Mark Tepper, president and CEO of Strategic Wealth Partners, stated Tuesday that he would buy right now. “I believe in crypto and I have some. But I am also a realist. You must have a certain percentage of crypto to be able to trade or own it successfully.

Tepper estimates that this is roughly 10% of his liquid wealth. He says it allows him to feel secure if he loses it all, but “elated” when it rallies tenfold.

“I believe you must understand that crypto rocketed from the depths of Covid due to all the new liquidity that flooded it, all those [stimulus] check. Tepper stated that this is no longer a catalyst and future gains will be slower.

CNBC received an email from Tepper stating that he has allocated 50% of his cryptocurrency position for ethereum and 40% for bitcoin, while 10% is being used to fund a less-known crypto called polkadot.

“100% of my crypto money is going into polkadot right now.” He said that not many people have heard about it. “The founder [of the platform] Polkadot was also co-founder of Ethereum. He basically took Ethereum’s technology and improved it. That’s where my money is right now.”

Inside Edge Capital Management founder Todd Gordon says that recent weakness in cryptocurrency is likely due to a tech selloff and lower liquidity. He believes that crypto adoption by older and established investors is a positive sign that should offset any downswings.

Gordon, like Tepper, is bullish in the space. He has 3% exposure at cryptocurrencies in his portfolio, which consists of 56% Bitcoin, 35% Ethereum, 5% Solana, and 3% Cardano.

Gordon stated that if you are looking for a way to see the differences between bitcoin and ethereum, this is an old foreign currency trick. You look at cross rates, then you look at bitcoin versus ethereum, then you subtract the dollar.” Gordon also said the same thing during the interview.

Although Ethereum has been compared to bitcoin in recent years, it has recently gained support at its current levels. Gordon believes that ethereum has the potential to grow if it holds this support level.

Will Bitcoin Fall Below $10,000 In the Near Future?

Starting on Monday 21st of September, Bitcoin broke the $10,250 and $10,200 support levels to move deeper into the bearish zone. It failed to correct the value drop and continued to go further below $10,200 against the Dollar, recording an overall decline in value of 4.5%.

This is the largest single-day decline since the beginning of the month and came as a result of the renewed Covid-19 fears and the many questions surrounding the upcoming US elections. What’s more concerning, Bitcoin remains at high risk of moving below $10,000 in the near future. So, will it be able to correct higher and mitigate the current losses? Read our take on it.

The Current Market Situation

The BTC/USD pair is currently correcting upwards, though the support near the $10,300 and $10,450 levels could prevent the further gains for the pair. The cryptocurrency even dropped below the $10,200 support level, eventually falling below its 100 simple moving average fluctuations. It also set a negative benchmark record for the week, breaking the 23.6% Fib retracement level of the latest fall, going from the $10,528 high to the $10,135 low. After this, Bitcoin attempted another surge to clear the $10,500 major resistance zone but failed.

As a reminder, Bitcoin already saw a big decrease in value, falling from $12,000 to $9,000 back in the second half of July this year. Since then, the DXY has been largely restricted to a range between 92 and 94. This is mainly because a move above 94.00 would confirm a solid breakout and weight over Bitcoin, which would lead to continued selling and further pressure on the leading cryptocurrency.

Historically looking, September and October are generally very rough months come election year in the US. While Nasdaq is on its way up and recovering, Bitcoin, as well as both silver and gold, are still trading further down this month. It wouldn’t be surprising if Bitcoin continues on its steady decline in the next few weeks, as the overall uptick can be expected once the US presidential election concludes in the next couple of months.

Extended Losses Looking Likely Soon?

Looking at the latest technical indicators, you might rightfully think that more losses are predicted in BTSs near the future. The hourly MACD is slowly going into the bullish zone, while the hourly RSI for Bitcoin/US Dollar is near the 40 levels.  With that in mind, if Bitcoin continues to fall and fails to recover its value above the $10,350 and $10,550 level, there’s no way of telling how low will this cryptocurrency go. The next major support is near the $10,200 and $10,100 levels.

But, the main issue is still the resistance that’s around the $10,550 level and the connecting bearish trend line. If Bitcoin’s price remains below the $10,550 level, the crypto will still be at risk of a larger decline in value.

However, it’s important to keep in mind the upside of the current situation. The previous support zone, which was around $10,300, is now acting as a strong resistance. If it manages to hold out the downswing and if we see an upside break above $10,350, the price could quickly recover and go above $10,450. This is all something that should be factored.

Gemini Exchange Launches in the UK

Gemini has made a few powerful expansion moves over the last year and a half, cementing its place as one of the largest cryptocurrency exchanges in the world. Recently, this New York-headquartered crypto exchange owned by the Winklevoss twins has launched in the UK. This expansion comes as a result of the duo’s effort to cash in on the recent boom of crypto investments that occurred since the beginning of the pandemic.

Gemini Exchange and the Winklevoss Twins

The Winklevoss twins might be best known for their legal dispute with Mark Zuckerberg, which ended in a $65 million Facebook settlement. The two used a good portion of this money to invest in bitcoin and other cryptocurrency ventures. In 2015, Gemini Exchange went live, and in May 2016 it became the first licensed Ethereum exchange in the United States. In 2017, with the boom of cryptocurrencies, the Winklevoss twins became billionaires and continued their path down the cryptocurrency financial sector. Today, Gemini employs over 100 people.

What Can UK Crypto Users Expect with the Arrival of Gemini?

Gemini is only the second cryptocurrency added to the FCA’s register, a requirement created to better control activities in the cryptocurrency sector and battle against money laundering. The exchange has also been granted an EMI (Electronic Money Institution) license by the Financial Conduct Authority, allowing it to provide crypto exchange and custody services to institutions and individuals. Aside from this, Gemini has also received approval from the FCA as part of the authority’s Fifth Money Laundering Directive crypto-asset registration process.

With that in mind, both individual and institutional users will be able to use this exchange to store and trade cryptocurrencies in the UK, using their native currency, the British Pound. Residents can make GBP purchases on Gemini using debit cards or deposit money into their Gemini account using several different payment methods, including CHAPS, Faster Payments, and wire transfers.

Gemini exchange also filled for a license to operate in Ireland, which its founders intend to use if the current Brexit situation doesn’t allow the exchange to operate in the EU as well. According to Tyler Winklevoss, going live with their crypto exchange services in the UK is a big step towards further international expansion. As the UK is a global center of financial innovation, it will help advance their mission to empower individuals and organizations through crypto.

Just a reminder, a few months back, in May 2020, the exchange announced a partnership with Samsung, in which Samsung users could link their Samsung blockchain wallets to their Gemini accounts to transfer cryptocurrencies and have an overview of their balances. Currently, this cryptocurrency exchange operates in the UK, US, Canada, Hong Kong, South Korea, and Singapore.

Revolut Continues Its Expansion – Introduces Service in Australia

According to their press statement from a few days ago, Revolut has started offering its cryptocurrency trading services to Australian residents. Members of the company’s premium Metal service will get first access, after which all other crypto traders can get started with the service. Continue reading to find out more details about Revolut’s latest expansion.

Revolut’s Rapid Expansion in 2020

In August of this year, Revolut made its first venture into the Australian market, introducing fiat-based currencies. As of writing this article, Australian customers can use Bitcoin, Litecoin, Ether, XRP, Stellar, and Bitcoin cash. Aside from this, the platform allows users to convert Australian dollars, as well as 26 other fiat currencies, into a cryptocurrency of their choice, directly through the native Revolut app.

During the first few days on the Australian market, Revolut already managed to garner significant attention. Its launch was highly anticipated, with over 30,000 Australians on the app’s waitlist, and 25,000 customers using the beta version. Australian customers who use Revolut can buy and sell up to six different digital assets while receiving real-time notifications on market price movements.

As a reminder, Revolut also expanded its services into the US in March of 2020. They obtained regulatory permission to operate in the US by partnering with Paxos, a New York-based trust company. Revolut’s services are available in 49 U.S. states, excluding Tennessee. After a successful push into the Australian market, the company now aims to expand further into the Asia-Pacific region by introducing its services in Japan and Singapore.

Unrelated to its expansion to all of these markets, it’s important to also mention that Revolut is suspending the ability to make crypto card payments in Europe, and won’t be introducing this option on any of the markets we mentioned above. The company’s representatives also mentioned that they are looking into the possibility of creating crypt-specific cards.

A Brief History of Revolut

Revolut is one of the most popular online trading services, with over 1 million users, and roughly 6,000 new registrations per day. It was founded in 2015 in the UK, as a platform offering financial services and banking products. In 2017, Revolut ventured into the cryptocurrency world, after securing $66 million in a funding round. They offer a mobile app, and their customer base covers mostly younger financial traders who operate on the crypto market.

In July of 2020, the company updated its terms of service, giving its users legal control over the cryptocurrency they operate with on the platform. This has been lauded as a significant decision, as previous to this update, Revolut conducted all cryptocurrency transactions on behalf However, the company still doesn’t allow users to transfer cryptocurrencies outside of the Revolut trading ecosystem.

Is a Significant Bitcoin Correction Imminent?

Over the past few days, Bitcoin has experienced a significant dropoff and is now trading below a key fundamental level. The cryptocurrency had its largest pullback since May of this year. On September 4th, it tumbled to below $9.8k, with no sign of stopping. Many crypto analysts are predicting that this is a sign that Bitcoin may be facing a major price correction in the following weeks, if not days. But, is Bitcoin facing a possible death spiral? Here’s what we know.

Bitcoin in 2020

For the better part of this year, Bitcoin has been trading under the cost required by miners to produce it. This has led to the situation that the miners are better off straight buying and selling currencies on the market, instead of investing any effort into the production process.

With several big miners moving large sums of Bitcoin, many analysts saw this as a sign that the currency is facing a potential fall. This makes sense, since Bitcoin’s value is impacted by its participants selling and buying, and a large number of big transactions can have a significant impact on the currency’s value. 

For this reason, many people expected the aforementioned death spiral to happen during this time. However, the better half of 2020 has already passed, and the cryptocurrency handled the halving and got back to its steady growth, with no death spiral occurring during this period. What’s even more interesting is that some analysts are pointing to the fact that the increased Bitcoin transaction fees may have actually helped this currency stay afloat during this turbulent period.

Can we Expect Another Catastrophic Collapse?

If you don’t go by expert predictions, a valuable metric to look at is the network-to-transactions. In short, this ratio compares the currency’s price to the total value being transacted across its network.

The NVT has served as a good predictor of Bitcoin’s price drops and rises over the years. Every time NVT gets hit and turns to black, Bitcoin experiences a fall. If we take a closer look at the peaks and drops over the years, we can see that there have been four collapses since 2018:

  1. February 2018 – Bitcoin dropped a massive 70%, falling from $20,000 to $5800.
  2. December 2018 – The cryptocurrency lost another 50% of its value, falling to just $3200
  3. December 2019 – After a year of steady growth, Bitcoin again dropped significantly, this time to just under $7,000
  4. March 2020 – On March 12th, as a consequence of the global market crash, Bitcoin plummeted to $3,800, losing 62% of its value during this period.

With this in mind, we should mention that NVT recently got hit, which means that some type of significant Bitcoin drop is expected. When we average these collapses, we get to a 58% percent collapse in value across all four collapses.

If the next Bitcoin collapse follows this trend, it means that this cryptocurrency could fall back to just above $5200. That said, given the current political situation and health pandemic in the world, there are just too many factors for analysts to accurately predict just how high or low will Bitcoin’s next drop stop at. Is the recent NVT hit a sign that Bitcoin is facing another collapse? Or, maybe this time Bitcoin will ride through it and start a comeback?