Quite a gloomy crypto week, which ends on the back of low prices for BTC, raising fears that it may fall even lower to the $20,000 zone.
News digest of the past week
The past week was definitely not one of the best. Although the negative news from China and about Elon Musk were somehow dealt with by the crypto community, the cryptocurrency market is still at its lowest level, and many altcoins have lost 50% of their value.
So there is uncertainty, as no one can predict which direction the Bitcoin price will go in the short term. The decision will be made by the market.
According to CoinMarketRate , the price of Bitcoin is currently around $35,890 — sad but not fatal. But, let’s get back to the news.
More positive news about the cryptocurrency this week include such as the fact that Apple is recruiting employees with experience in working with cryptocurrencies, or that PayPal says that it will soon be possible to withdraw cryptocurrencies to external crypto wallets.
Let’s take a look at this brief review of the key crypto news of the week.
- According to Vitalik Buterin, the transition of Ethereum to PoS solves environmental issues
Ethereum founder Vitalik Buterin believes that the transition to the Proof-Of-Stake (PoS) model will significantly reduce the carbon footprint of the cryptocurrency.
“Proof of Stake is a solution to the environmental problems of Bitcoin, as this protocol requires significantly less resources to maintain.
What we create is no longer just a game. This is an important part of a new era”, Vitalik Buterin told Fortune at the StartmeupHK virtual trade show in Hong Kong.
Pointing out that Proof of Stake works on a fundamentally different principle from Proof of Work (PoW), which is a mining mechanism that is currently used for mining both Bitcoin (BTC) and Ethereum (ETH), Buterin believes that the energy consumption of the Ethereum blockchain can be reduced by 100 or even 10,000 times.
According to a recent post on the Ethereum Foundation blog, in the PoW section, the price of ETH and hashrate are positively correlated. Consequently, as the price increases in equilibrium, the power consumed by the network also increases.
However, this is expected to change in the near future, as Ethereum has already begun its transition to become a Proof-Of-Stake network with ETH 2.0.
It is reported that in recent weeks, the first test networks of The Merge appeared — this name was given due to that Ethereum moves from PoW to PoS.
“Scaling solutions (such as convolution and segmentation) will help further reduce the energy consumption per transaction through economies of scale,” said Carl Bickhuizen, an Ethereum developer.
While BTC mining is in proof-of-work mode, and Michael Saylor and Elon Musk are working to make it more eco-friendly, Vitalik Buterin defends Ethereum’s strategy of switching to a proof-of-stake algorithm.
A discussion that encourages thinking about the environmental problems of the crypto sector, which is in full development, and therefore logically will consume more energy in the future.
- Elon Musk and Michael Saylor Meet with North American BTC Miners to Make Bitcoin Mining More Eco-Friendly
On May 17, Elon Musk posted a tweet announcing that Tesla no longer accepts Bitcoin payments because mining is too polluting for the planet.
A message that, to everyone’s surprise, immediately brought down the price of BTC and the entire cryptocurrency market.
So, true to his commitment, the Tesla CEO wants to work with Bitcoin miners to make mining greener through the use of renewable energy.
Elon Musk and Michael Saylor, CEO of MicroStrategy, have announced that they have met with North American BTC miners to form a working group and lead the crypto mining industry to use clean energy.
Although this meeting was an Elon Musk-style chatter, the posts on this topic were well received by the crypto community, so greening crypto mining can only be a positive initiative for the environment.
- PayPal users will be able to withdraw Bitcoin and cryptocurrency from external wallets.
The integration of Bitcoin and some cryptocurrencies, such as Ethereum, into the PayPal platform has been successful. A small drawback in buying and selling Bitcoins and cryptocurrencies via PayPal: it is impossible to withdraw cryptocurrency to external wallets, in relation to the platform.
The company assured that it is working on this issue, and soon users will be able to withdraw their BTC and cryptocurrencies to other cryptocurrency wallets, and not just store them in PayPal, or sell them in fiat currency for withdrawal.
PayPal has not yet specified when the cryptocurrency withdrawal feature will be supported.
Just as Revolut finally allowed it, PayPal should gradually give its users the freedom to choose whether to store their cryptocurrencies in the company’s interface, or send them to more secure crypto wallets, particularly hardware ones.
This news should please PayPal users, as they are looking forward to this withdrawal option. As of today, Bitcoin and some cryptocurrencies are only available to US residents, and the rest of the world is awaiting an international rollout in 2021.
It is reported that PayPal is also preparing to launch its own stablecoin.
- Jamie Dimon, CEO of JPMorgan, Advises to “Stay Away from Bitcoin”
Jamie Dimon, CEO of US banking giant JPMorgan, said a few years ago that “ Bitcoin is a scam”.
A few years later, when JPMorgan Bank decided to switch to cryptocurrency-focused products, we could expect that Jamie Dimon would also change his mind on the issue of cryptocurrencies. She even went so far as to recommend that investors invest part of their portfolio in Bitcoin.
But no, Jamie told a Congressional Financial Services Committee hearing on May 27 that he advises people to avoid, and stay away from, Bitcoin and cryptocurrencies in general.
He added that cryptocurrencies are not comparable to paper money or gold, urging “buyers to beware”, he says that he is referring to cryptocurrencies, not blockchains or stablecoins.
He also talks about regulators and authorities that are lagging behind technological progress, and who should certainly pay more attention to the topic of cryptocurrencies. He said the government would definitely do so in the future.
As the CEO of JPMorgan once again speaks negatively about Bitcoin, his statements did not go unnoticed. Yes, some players in the financial world expected Jamie Dimon to change his mind on this issue due to the massive arrival of institutional investors in cryptocurrency, but as they say, a tiger doesn`t change his spots…
From a personal point of view, Jamie Dimon holds his extreme positions on Bitcoin and cryptocurrencies, recommending avoiding them, but this does not prevent JPMorgan Chase from offering financial services related to cryptocurrencies that may be of interest to its clients
As for the bank, JPMorgan began to gradually support the movement of cryptocurrencies, launching a basket for its customers. He recently praised the Ethereum asset, and everyone expects that he will finally also be able to launch a Bitcoin fund this summer, according to sources.
So all is clear about the CEO of JPMorgan Bank, he remains an ardent opponent of cryptocurrencies, even if his bank has finally decided to offer services focused on this new asset class, now recognized by other major banks such as Goldman Sachs or Wells Fargo.
- Wall Street Guru Intends to Study Cryptocurrency Extensively
Well-known Wall Street trader Carl Icahn expressed his intention to invest in cryptocurrencies.
American businessman Carl Icahn has changed his mind about cryptocurrencies, and wants to get into this sector. The billionaire also said that he prefers Ethereum to Bitcoin, speaking in an interview with Bloomberg on Wednesday.
Icahn hinted at a potentially huge investment of up to $1.5 billion in cryptocurrency. He joins other heavyweights such as Ray Dalio, Stanley Druckenmiller, Paul Tudor Jones who have recently been attracted to the sector. Icahn described the development and growth of cryptocurrencies as a “natural manifestation” of the modern economy. Some investors have begun to abandon the dollar in search of better savings.
Icahn expressed concern about the dollar’s current status, explaining that it is likely to devalue and it could eventually lose its hegemonic status as a reserve currency. The businessman repeatedly wanted to emphasize that he does not consider himself an expert in the crypto industry.
The founder of Icahn Enterprises confirmed that he has not invested in the crypto industry, but would very much like to explore it. He did not agree with the detractors of the cryptocurrency, who said that the assets have the same value as the US dollar.
The billionaire cited only one moment when the US dollar bypassed the cryptocurrency-this is a tax, since the value of the former lies in paying taxes. When asked about his views on Bitcoin and Ether, he supported the latter, citing different use cases. He stated that these two coins are different: Bitcoin, in his opinion, is practical only as a means of saving, while Ether can be used as a means of saving, and as a payment element.