Bitcoin proponents accused The New York Times of overstating mining companies’ emissions and omitting facts about the growing adoption of renewable energy sources for BTC mining.
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Bitcoin proponents respond to New York Times’ BTC mining reportNEWS
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The New York Times’ latest report on Bitcoin
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mining, titled “The Real-World Costs of the Digital Race for Bitcoin,” has irked many BTC proponents — some of whom took to Twitter to call out certain aspects of the report, including saying it was “cherry-picking” data.
The NYT article says Bitcoin mining has a “voracious” appetite and claims it uses as much energy as all residences in New York City.
In response, Daniel Batten — a Bitcoin environmental, social and governance (ESG) analyst — pointed toward what he said were two major instances of cherry-picking data alongside neglecting the increased use of renewable energy in the mining sector.
Batten said the NYT article drastically exaggerates the actual fossil fuel use of BTC miners, with emission levels overstated by an average of 81.7%. He added the report was “using overwhelmingly incomplete datasets to support a thesis.”
Batten also mentioned that there are 26 Bitcoin miners in the United States and Canada using 90% sustainable energy to fuel their mining activities, but the NYT article chose just two and focused on the sites least backed by renewable energy.
Troy Cross, another Bitcoin proponent, said the NYT article used “marginal emissions accounting” to prove its narrative, selectively applying it only for carbon emissions, not generation.
Dennis Porter, CEO of the Satoshi Act Fund, noted that the NYT article made a mistake in its initial reporting, naming the incorrect town in which a BTC mining facility in Texas is based. The publication later corrected the error.
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Pierre Rochard, vice president of research at BTC mining firm Riot, accused the NYT of using “fictitious fractional-reserve carbon accounting” and “cooking the books to fabricate emissions.” Another Twitter user, Hakan, pointed toward passages they believed to be fear-mongering.
While the high energy consumption required for Bitcoin mining is definitely a topic of debate, mining is significantly important for the blockchain. Not only is it used to verify transactions, it also makes it decentralized and adds a layer of security.
Related: Bill protecting Bitcoin mining rights passes in Arkansas Senate and House
According to the Bitcoin Mining Council report for Q4 of 2022, the Bitcoin network is already a leader in sustainable energy use, with 58.9% of its energy coming from renewable sources.
The Bitcoin network‘s sustainable power mix vs. countries. Source: Bitcoin Mining Council
Bitcoin mining has always been a controversial topic, often fueled by critical articles published by mainstream outlets claiming it has a net negative impact on the environment. However, many Bitcoin proponents see these sorts of reports as hit pieces and are quick to offer an opposing perspective. Meanwhile, some are actively campaigning to change Bitcoin’s mining consensus to the more environmentally friendly proof-of-stake.
While Ted Cruz and Ron DeSantis attack the idea of American CBDC, Texan lawmakers propose to create a statewide one.
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Texas’ gold-backed digital currency project: Law Decoded, April 3–10
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The topic of central bank digital currencies is in the crossfire of United States politicians, with figures like Ron DeSantis and Ted Cruz trying to prevent them from existing. But what about a statewide digital currency? The first of its kind, a gold-backed state-based digital currency project has appeared in Texas.
On the same day, two Texan lawmakers introduced identical bills for creating a state-based digital currency backed by gold. Each unit of the digital currency would represent a particular fraction of a troy ounce of gold held in trust, according to the bills. Once a person purchases a certain amount of digital currency, the comptroller uses that money received to buy an equivalent amount of gold. Although neither of the bills has been passed or presented for a vote, both state that the act will take effect from Sept. 1, 2023.
Meanwhile, another bill has been passed by a senate committee in Texas. The bill would largely remove incentives for miners operating under the state’s regulatory environment. Under the bill, crypto firms participating in a program intended to compensate them for load reductions on Texas’ power grid would be capped for anticipated demand of “less than 10 percent of the total load required by all loads in the program.” Certain crypto mining companies would also not receive a reduction on state taxes for participation in the program starting in September 2023.
Regulators announce $10 million settlement with Robinhood ‘for failing investors’
The California Department of Financial Protection and Innovation said that the company behind cryptocurrency and stock trading platform Robinhood will likely pay more than $10 million in penalties “for operational and technical failures that harmed main street investors.” The settlement resulted from an investigation by the North American Securities Administrators Association in conjunction with securities regulators from Alabama, Colorado, California, Delaware, New Jersey, South Dakota and Texas. The platform suffered a series of system outages in March 2020, causing users to miss out on trades while many of its services were unavailable.
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Coinbase supports new court action to remove Tornado Cash ban
The U.S. Department of the Treasury faces a renewed legal challenge aiming to overturn its decision to sanction the crypto mixer Tornado Cash. The challenge was filed by six individuals backed by the cryptocurrency exchange Coinbase. A motion for a partial summary judgment was filed on April 5 in a Texas district court, with the Coinbase-backed plaintiffs moving for the U.S. Office of Foreign Asset Control (OFAC) to settle the first two counts from its original complaint filed in September 2022. The counts claimed OFAC exceeded its statutory powers under the International Emergency Economic Powers Act and violated the free speech clause of the U.S. Constitution’s first amendment.
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Bill protecting Bitcoin mining rights passes in Arkansas
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A bill seeking to regulate Bitcoin
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mining activity in Arkansas has passed in the state’s Congress. It will now move to the governor’s office for approval. Under the legislation, crypto miners will enjoy the same rights as data centers. The bill outlines that Arkansas’ government should not “impose a different requirement for a digital asset mining business that is applicable to any requirement for a data center.” Arkansas’ move follows a similar initiative in the state of Montana, where the Senate passed a bill to protect crypto miners in late March.
Bitcoin
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rose to its highest level in ten months on April 10 as traders await this week’s April 12 Consumer Price Index report to gain deeper insight into the Federal Reserve’s fight against sticky inflation. If the report shows inflation dropping, it could be the next possible catalyst that furthers BTC's upward move.
On April 10, BTC price soared 3.37% to over $29,300 after a quiet Easter weekend. Interestingly, Bitcoin’s intraday gains appeared alongside a drop in U.S. equities, a rare decoupling that highlights the coin’s diminishing risk-on characteristics.
BTC/USD year-to-date returns versus U.S. stock indexes. Source: TradingView
The pre-CPI dynamic could be in effect
The Bureau of Labor Statistics will release March Consumer Price Index (CPI) data on April 12, which is expected to show inflation down to 5.1% from 6.0% year-over-year previously.
A slowdown in headline CPI increases the prospects of the Federal Reserve shifting in a more dovish direction. Conversely, persistent inflationary forces could lead traders to bet on more interest rate hikes in May.
Bitcoin’s rise above $29,000 suggest that crypto traders have been pricing in a drop in inflation, which, in turn, could lead to a potential Fed pivot.
Nonetheless, the U.S. Dollar Index (DXY), which tracks the greenback’s strength against a basket of top foreign currencies, climbed 0.7% on April 10, which, alongside a weaker U.S. stock market, shows macro investors see a rate hike ahead.
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DXY daily price chart. Source: TradingView
In fact, the market sees a 70% probability of the Fed lifting rates by 25 basis points at its meeting in May, according to the CME Fed Watch Tool. That could be due to a tightening labor market that gives the Fed more ammunition to continue raising lending rates in the future.
Could Bitcoin hit $30,000 in April?
From a fundamental perspective, Bitcoin looks prepared to hit $30,000 ahead of the Fed FOMC. However, its likelihood of holding those gains will depend on the inflation data, as mentioned above.
Related: CPI to spark dollar ‘massacre’ — 5 things to know in Bitcoin this week
Meanwhile, from a technical analysis standpoint, Bitcoin must close above its weekly resistance range — defined by the $29,500 to $32,000 area — to eye a run-up toward $40,000.
BTC/USD weekly price chart. Source: TradingView
This range served as support in the December 2020 to February 2021, May 2021 to July 2021 and January 2022 to March 2022 sessions.
In the event of a pullback from the mentioned range, BTC price risks a sharp decline toward its 50-week exponential moving average (50-week EMA; the red wave) near $25,250 and its 200-week exponential moving average (200-week EMA; the blue wave) near $25,000.