Sygnum's High 5: Discover the top news in crypto for the week!
China is betting its technological future in the hands of Blockchain while restricting Bitcoin mining activity. At the same time, other countries try to allure miners with green energy alternatives amid more interest in crypto by institutional investors from India to Germany. Read more about the top crypto news of this week.
China goes all-in for Blockchain technology.
China is betting on the application of Blockchain across business sectors to lead the next wave of technological advancements worldwide.
China is planning the launch of the digital yuan at the Beijing Winter Olympics in 2022, the first fully-fledged Central Bank Digital Currency (CBDC) as the signal for a new era in banking powered by crypto.
Beyond CBDCs, China is transforming its infrastructure and industry to move into a decentralized nature. China’s President is behind the move, claiming that Blockchain would ”lead the next wave of the digital transformation of China.”
New legislation opens up €350 billion in potential crypto investments.
A new law came into effect this week in Germany, allowing institutional investors to start investing in crypto using one of the most popular vehicles in the country.
Investors will now be able to allocate up to 20% of their ”Spezialfonds” into digital assets, potentially reaching €350 billion in crypto investments.
Experts are optimistic about the change in law, possibly leading to a massive increase in crypto’s adoption in Germany.
Bitcoin’s energy needs will reduce to less than a third in 5 years, new analysis.
More balanced perspectives emerge as analysts lean into the current state of Bitcoin’s energy consumption and its future evolution.
A new analysis suggests that Bitcoin’s carbon emission will reduce to less than one-third in 5 years while reaching carbon-neutral emissions by 2040.
In this study, Bitcoin’s perfect competition profile is the basis for its future energy prediction amid different scenarios of price, technological state, and hash rate.
Crypto investments in India reach record levels.
Crypto investments have skyrocketed in India, reaching about $40 billion in the last 12 months, growing from $200M in the previous year.
Indian investors look at digital assets as a replacement for gold while becoming increasingly popular in the 18-35 years old audience, as seen in other countries.
Retail adoption in India is particularly noteworthy due to the continued interest in crypto despite previous restrictions in the country.
Bitcoin’s energy consumption declines amid the mining ban.
According to the Cambridge University’s Bitcoin Electricity Consumption Index, Bitcoin’s consumption has been reducing since the restrictions put in place by China.
The current values point to half the energy used in the previous month while there is a hiatus on where Bitcoin miners will move next. Analysts are hinting that some Chinese miners are selling Bitcoin to endure the cost of re-allocation.
The crackdown in many Chinese provinces will lead miners to move to other geographies and force the conversion into greener energy sources.
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