Cryptocurrency mining in focus

Much of the global computing power needed to mine cryptocurrency comes from China, and the process is popular in the country due to the existence of many hydropower plants as well as the fact that China is a large producer of hardware platforms needed for cryptocurrency mining. 

About the author

Anders Nysteen - joined Saxo Bank in 2016 to the department Quantitative Strategiesand its main goal is to develop mathematical trading strategies and asset allocation models. Anders holds a degree in physics and nanotechnology from the Technical University of Denmark and a PhD in quantum photonics.

In view of China's recent intention to restrict bitcoin mining and the cryptocurrency trading activity itself, some miners are looking to move out of China. According to CoinDesk, The Huobi cryptocurrency exchange has already restricted or suspended some of its services in mainland China, and other miners, such as BTC.TOP and HashCow, are analyzing their presence in China so far. Shenzhen-based Bit Mining has also announced that it is expanding its operations and is looking to open new facilities in Kazakhstan. At the same time Iran has announced a cryptocurrency mining banwhich will come into effect in the summer.

Interview with Ray Dalio

Ray Dalio, founder of a large hedge fund Bridgewater Associates, stated during the Coindesk's Consensus event that he sees Bitcoin as a store of value in a future that is marked by inflation and that "... would rather have Bitcoin than bonds." The interview fueled the positive sentiment in the cryptocurrency market that prevailed after an unstable week of record-high declines. Dalio, however, wonders if governments will tolerate cryptocurrencies.

ETFs are moving towards green

New Bitcoin application ETF filed by One River Digital Asset Management to US Securities and Exchange Commission (SEC) indicates that this ETF intends to be carbon neutral. According to the notification, One River Digital Asset Management intends "Offset the carbon footprint of bitcoin by purchasing and withdrawing the carbon credits necessary to settle the estimated carbon footprint of bitcoin owned". This ETF's proposal joins the pool of applications already considered by the SEC, although this particular one is clearly greener.