Saturday, January 22, 2022
Home Blog

What Happened at the Congressional Bitcoin Energy Hearing?



This episode is sponsored by Link, Abra and United States.

Download this episode

This week, in the “Weekly Recap,” NLW breaks down the House hearing on energy in the crypto industry. It examines the issues with the advance memo and refute some of the misunderstandings.

See also: Witnesses Debate Effectiveness of Crypto Mining at Congressional Environmental Hearing

“The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell, research by Scott Hill and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard behind our sponsor today is “Time” by OBOY. Image Credit: Nuthawut Somsuk/iStock/Getty Images Plus, edited by CoinDesk. Join the discussion on discord.gg/VrKRrfKCz8.

A Possible Russian Crypto Ban and Vitalik’s Synthetic Womb: It’s 2022



Finally, the gang unpacked Buterin’s baby pod idea, which they pitched as a way to empower women: “Disparities in economic success between men and women are much greater once marriage + children come into play. Synthetic wombs would remove the heavy burden of pregnancy, dramatically reducing inequality,” he wrote on Twitter.

El Salvador buys 410 more bitcoins amid market drop, says President Bukele



El Salvador bought 410 bitcoins for $15 million on Friday, the country’s president, Nayib Bukele, said on Twitter.

  • “Some guys are selling really cheap,” he added in his tweet.
  • It is difficult to verify such claims on the public blockchain, as a buyer of a BTC block of this size would almost certainly have to buy it in smaller chunks to avoid slip.
  • Bitcoin was down around 12% on Friday night to the $36,500 level as wider crypto prices also backward.
  • the nation now holds more than 1,500 BTC and plans to issue a $1 billion 10-year bitcoin bond this year.
  • Bukele has been a consistent buyer over the past couple of months, a sign of confidence in the cryptocurrency’s long-term prospects.
  • Bitcoin officially became legal tender in El Salvador last September, three months after the country’s legislature passed the Bitcoin Law.

Read more: El Salvador plans to offer crypto loans to SMEs

UPDATE (January 22, 2022, 1:06 UTC): Adds a bullet on the difficulty of verifying claims on the public blockchain.



Crypto Trader Tantra To Liquidate After ‘GBTC Cut’ Widens To Record



“Ultimately, after significant discussions and considerations in consultation with outside attorneys and other professional advisors, the Board of Directors has determined that, having regard to all of the circumstances, it is in the best interests of the company to liquidate our business, liquidate our balance sheet and effect an orderly, fair and equitable distribution of our assets.”

Iris Energy secures 600 MW connection for Texas bitcoin mine



Australian crypto-miner Iris Energy (IREN) has secured a 600-megawatt connection for a new crypto-mining facility in Texas, the company announced on Friday.

  • The company said in a deposit with the United States Securities and Exchange Commission (SEC) that it has signed a binding connection agreement with utility provider AEP Texas.
  • Iris Energy paid $19 million for the security deposit and connection fees, according to the filing. Data centers in Texas are expected to be powered in the first quarter of 2023, the miner said.
  • Iris Energy has secured a 300-acre freehold site in the Texas Panhandle, the state’s northernmost region, which will be directly connected to the grid via a 345 kV transmission line, according to the filing.
  • Iris Energy recorded a hashrate of 748 petahash per second (PH/s) in December 2021. It plans to add 2.9 PE/s at two sites in British Columbia, with mining rigs it already has secured, by the end of 2022. Another 11.6 PE/s are planned for 2023, including 10.6 PE/s at the Panhandle facility.
  • The company could add an additional 7 PE/s to the Texas facility if it secures more mining rigs, bringing its total computing power to 22 PE/s, or nearly 14% of the bitcoin network’s current hashrate.

Read more: Iris Energy’s December Hashrate Surges 14% as Revenue Falls Again

El Salvador plans to offer crypto loans to SMEs



According to Steiner, the government has been in talks with Acumen since October 2021, following the approval of bitcoin as legal tender in the Central American country. In parallel, he is conducting negotiations with different crypto lending platforms looking to provide loans to Salvadoran SMEs, Steiner said, adding that if signed, the deals could total $200 million.

Witnesses Debate Effectiveness of Crypto Mining at Congressional Environmental Hearing



Rep. Cathy Rodgers (R-Wa.), who started the hearing with an off-topic speech about inflation, COVID, and the current U.S. president, asked about the potential of blockchain to protect privacy citizens, as well as the potential negative impact. employment and investment growth regulations. Representative Annie Kuster (DN.H.) inquired about innovations that could arise from bitcoin mining and benefit other industries.

Bitcoin Returns Above $43,000; Resistance near $45,000 to $48,000



bitcoin (BTC) buyers are trying to reverse a short-term downtrend on the charts.

Over the past two weeks, price action has been anchored around the $40,000 support level, where buyers stepped in ahead of the October price rally.

Still, the cryptocurrency could face resistance around $45,000-$48,000 as intraday signals approach overbought territory.

At time of going to press bitcoins was changing hands at $42,952, up 2.5% in the past 24 hours.

The 100-day moving average on the four-hour chart is falling, indicating a downward trend in price over the past month. A decisive break above $43,000 could signal a positive trend change on the intraday charts.

On the daily chart, bitcoin appears to be oversold, albeit in a downtrend that started in November. This means that the upside could be limited given the declining long-term momentum.

EOS creator Dan Larimer is back



The community behind EOS is looking to turn itself around by renewing tech ties with the network’s OG developer Dan Larimer, who engineered a ‘mandel’ hard break with the company that insiders say ‘burnt’ its blockchain sweetheart of $4 billion.

Larimer, who left Block.one – the now separate parent company of EOS – last January, is increasing his technical contributions on the software he led in 2017. In return, EOS Network Foundation (ENF) – now the shooter de facto ecosystem – will fund Larimer development work with token grants in native EOS.

Larimer’s “Mandel” upgrade is a hard fork that would give ENF effective control of the EOS code base – and thus network headquarters – if validators adopted it in Q2. Neither Larimer nor Block.one returned requests for comment.

Mandel’s exit and Larimer’s return represent a new chapter for EOS, which has gone from one of the most funded projects in crypto to a mostly forgotten sideshow. ENS management is trying to change this narrative – and perhaps even the EOS name.

Team leaders say severing ties with Block.one completely is the first step. Zack Gall, director of communications at ENF, says the company that made EOS’s $4 billion token sale in 2017 has long since shifted its focus and funding — and even its acquired EOS tokens. – to crypto exchange Bullish, which is preparing to go public through a SPAC.

Block.one, or B1 for short, “burned” the EOS ecosystem in the process, he said in an interview.

“B1 has basically transferred its assets to a new company, which looks like the ultimate mat,” Gall said on Telegram.

Read more: CEO of the EOS Foundation: “EOS as it is is a failure”

Block.one’s relationship with the EOS community boiled over late last year with the crypto-governance equivalent of “you’re fired.” Stakeholders voted in early December to end Block.one’s EOS token grants, worth $250 million over a multi-year vesting period.

The reason: EOS backers were fed up with a once-essential codebase custodian that they felt had commitment issues.

“The network came together to reach a consensus [and] take back the only asset he had jurisdiction over, which is their unearned EOS,” Gall said. (The company had already received nearly 30 million over the years.)

“This is probably the first and only time a DAO has taken action against a corporate entity.”

Many chains have their heavy corporate backers, decentralization arguments aside. Solana at Solana Labs, Avalanche at Ava Labs, Terra at Terraform Labs. These entities perform influential developer roles; often they also own key intellectual property, like Twitter accounts, websites, and code repositories.

The conundrum facing ENF is that EOS kick-started its company without reclaiming that intellectual property. Block.one still holds significant assets like eos.io. More importantly, it maintains the EOS github repository, an active codebase that hasn’t changed for 8 months, an eternity in cryptoland.

ENF tried to get everything from Block.one. says Gall. He said Block.one management “chartered a flight on short notice” to a remote Canadian city to negotiate with Yves La Rose, who runs ENF. But CEO Brendan Blumer balked at the term sheet, setting the stage for the “termination” vote and leaving EOS’s new delegate with no control of the code base or intellectual property.

Larimer returns

That should change with Larimer’s contributions and Mandel’s upcoming hard fork, Gall said. It will transfer operational control of the code base to ENF – which the network is funding through a $100 million “inflation drip”.

Larimer, a serial blockchain entrepreneur, has big plans for future EOS tools that support DAOs and social media platforms. according to Gall. He said some of these plans are only possible with the significant codebase contributions that Larimer, the former CTO of Block.one, is now willing to lend.

Larimer is paid 200,000 tokens for his work.

Although Larimer did not respond to CoinDesk at press time, he did explain his “business” relationship with the EOS channel in a recent YouTube segment. Now manages two projects, including ClarionOS, which is working on the Mandel fork.

ֵENF hopes all of this will set the stage for a rebirth of EOS – or whatever it’s called next.



UnionBank of the Philippines Selects IBM and Metaco for Crypto Custody



“Think of all the leading banks in the market, they’re probably all IBM customers, many of them strategic customers,” Donoghue said in an interview. “They can leverage the existing stack, existing runtime capabilities to manage Metaco vaults directly from the existing infrastructure. And we have a number of other similar deals in the works, leveraging our combined abilities.