The world’s leading financial crime watchdog has sounded the alarm over gaps in cryptocurrency regulation, urging governments to take far stronger action against illicit finance in the booming sector.&nbsp;The Financial Action Task Force (FATF), based in Paris, warned on Thursday that shortcomings in policing virtual assets risk creating global financial vulnerabilities, with criminals exploiting loopholes across borders. “Virtual assets are inherently borderless, and regulatory failures in one jurisdiction can have global consequences,” the FATF said in a statement, as quoted by Reuters. The call-to-action underscores mounting concern among global regulators that rapid growth in crypto markets is outpacing efforts to keep them in check.<h2>Patchy compliance despite progress</h2>According to the FATF’s latest assessment, progress on tightening crypto rules remains uneven. As of April 2025, only 40 out of 138 jurisdictions assessed were considered “largely compliant” with its standards, up from 32 the previous year.&nbsp;While that improvement reflects some momentum, it also highlights the vast number of countries lagging behind. FATF officials warn that these regulatory gaps create safe havens for criminals, making it harder to trace illicit financial flows that move seamlessly across national borders.<h2>Surge in illicit crypto activity</h2>The watchdog cited alarming figures pointing to the scale of the problem. Blockchain analytics firm Chainalysis estimates that illicit crypto wallet addresses may have received as much as $51 billion in 2024 alone. Countries, the FATF says, continue to face major difficulties in identifying the real people behind virtual asset transactions, a key challenge in disrupting networks of money launderers, sanctions evaders and terror financiers.&nbsp;FATF also flagged particular concern over the rising role of stablecoins, cryptocurrencies pegged to fiat currencies like the US dollar which it said have become a preferred tool for various illicit actors. “Most illicit crypto activity now involves stablecoins,” the FATF warned, adding that the technology is being misused by groups including terrorist financiers, drug traffickers and state-backed cyber criminals.<h2>Spotlight on North Korea</h2>The report comes amid heightened scrutiny of North Korea’s role in global cybercrime. In February 2025, the FBI blamed North Korean hackers for the theft of around $1.5 billion worth of virtual assets from the crypto exchange ByBit, the largest known crypto heist in history.&nbsp;Pyongyang has repeatedly denied involvement in such attacks, but security agencies in the US and allied countries say North Korea’s regime relies heavily on crypto thefts and ransomware operations to fund its weapons programmes.<h2>Global authorities ramp up warnings</h2>The FATF’s statement is the latest in a series of warnings from international regulators about crypto’s potential to undermine financial stability and security. In April 2025, the European Union’s securities watchdog cautioned that the rapidly expanding crypto sector could pose systemic risks, particularly as its links with traditional financial markets deepen. As governments scramble to finalise regulatory frameworks, FATF urged them to prioritise closing loopholes, increasing oversight, and improving coordination. Without such steps, it warned, the risk of crypto markets being weaponised by criminals and even hostile states will only grow.&nbsp;The message is clear: despite technological innovation and growing mainstream adoption, the crypto industry remains in urgent need of stricter global policing to prevent it from becoming a haven for financial crime.&nbsp;(With inputs from the agencies)

Despite some progress, only 40 of 138 jurisdictions are largely compliant with FATF standards. Regulatory gaps allow criminals to exploit loopholes, particularly with stablecoins, which are increasingly used for illegal activities. 

The world’s leading financial crime watchdog has sounded the alarm over gaps in cryptocurrency regulation, urging governments to take far stronger action against illicit finance in the booming sector. The Financial Action Task Force (FATF), based in Paris, warned on Thursday that shortcomings in policing virtual assets risk creating global financial vulnerabilities, with criminals exploiting loopholes across borders. “Virtual assets are inherently borderless, and regulatory failures in one jurisdiction can have global consequences,” the FATF said in a statement, as quoted by Reuters. The call-to-action underscores mounting concern among global regulators that rapid growth in crypto markets is outpacing efforts to keep them in check. Patchy compliance despite progress According to the FATF’s latest assessment, progress on tightening crypto rules remains uneven. As of April 2025, only 40 out of 138 jurisdictions assessed were considered “largely compliant” with its standards, up from 32 the previous year. While that improvement reflects some momentum, it also highlights the vast number of countries lagging behind. FATF officials warn that these regulatory gaps create safe havens for criminals, making it harder to trace illicit financial flows that move seamlessly across national borders. Surge in illicit crypto activity The watchdog cited alarming figures pointing to the scale of the problem. Blockchain analytics firm Chainalysis estimates that illicit crypto wallet addresses may have received as much as $51 billion in 2024 alone. Countries, the FATF says, continue to face major difficulties in identifying the real people behind virtual asset transactions, a key challenge in disrupting networks of money launderers, sanctions evaders and terror financiers. FATF also flagged particular concern over the rising role of stablecoins, cryptocurrencies pegged to fiat currencies like the US dollar which it said have become a preferred tool for various illicit actors. “Most illicit crypto activity now involves stablecoins,” the FATF warned, adding that the technology is being misused by groups including terrorist financiers, drug traffickers and state-backed cyber criminals. Spotlight on North Korea The report comes amid heightened scrutiny of North Korea’s role in global cybercrime. In February 2025, the FBI blamed North Korean hackers for the theft of around $1.5 billion worth of virtual assets from the crypto exchange ByBit, the largest known crypto heist in history. Pyongyang has repeatedly denied involvement in such attacks, but security agencies in the US and allied countries say North Korea’s regime relies heavily on crypto thefts and ransomware operations to fund its weapons programmes. Global authorities ramp up warnings The FATF’s statement is the latest in a series of warnings from international regulators about crypto’s potential to undermine financial stability and security. In April 2025, the European Union’s securities watchdog cautioned that the rapidly expanding crypto sector could pose systemic risks, particularly as its links with traditional financial markets deepen. As governments scramble to finalise regulatory frameworks, FATF urged them to prioritise closing loopholes, increasing oversight, and improving coordination. Without such steps, it warned, the risk of crypto markets being weaponised by criminals and even hostile states will only grow. The message is clear: despite technological innovation and growing mainstream adoption, the crypto industry remains in urgent need of stricter global policing to prevent it from becoming a haven for financial crime. (With inputs from the agencies)

The Financial Action Task Force (FATF) has raised concerns about inadequate cryptocurrency regulation, urging governments to strengthen measures against illicit finance.

Global watchdog urges crackdown on crypto crime as risks grow

Bitcoin surged to a new all-time high on May 22, climbing above $111,000 for the first time, as bullish momentum built on the back of institutional investment, favourable macroeconomic trends, and progress on US crypto regulation.&nbsp;The cryptocurrency claimed an intra-day high of $111,746 at 0400 GMT according to CoinMarketCap, surpassing its previous high from January. It has gained more than 18 per cent in May alone, reflecting growing demand from institutional investors and renewed optimism in the broader market.&nbsp;What is boosting Bitcoin?&nbsp;Driving the rally is a wave of fresh capital flowing into US-listed spot Bitcoin exchange-traded funds (ETFs). eToro Australia analyst Reece Hobson told Decrypt that the net inflows into these ETFs have topped $2.8 billion this month, lifting total ETF holdings to more than $122 billion. Hobson noted that this demand, along with tighter supply following April’s Bitcoin halving event, has been a powerful catalyst.&nbsp;Meanwhile, traditional financial giants are increasingly warming up to crypto. J.P. Morgan CEO Jamie Dimon, a long-time Bitcoin sceptic, acknowledged this week that the bank is now allowing clients to invest in the digital asset. Separately, Coinbase’s upcoming inclusion in the S&amp;P 500 index is being seen as a landmark moment for the sector, even as the exchange faces a Department of Justice probe related to a recent data breach.&nbsp;In addition to institutional flows, broader macroeconomic factors have supported Bitcoin’s rise. The weakening US dollar has bolstered the cryptocurrency’s appeal as a store of value, while a broader rally in tech stocks—the Nasdaq is up 30 per cent since April—has encouraged risk-on sentiment among investors.&nbsp;Progress on the regulatory front has also been a key driver. A bipartisan push in the US Senate to pass legislation on stablecoins has boosted confidence among investors looking for greater clarity and legitimacy in the crypto space.&nbsp;Although Bitcoin continues to lead the crypto rally, attention is gradually turning to altcoins like Ethereum and Solana, which have yet to catch up. Analysts suggest a broader rally could emerge if Bitcoin’s dominance rises further and liquidity conditions improve.&nbsp;For now, Bitcoin’s upward march reflects not just investor enthusiasm but also growing signs of institutional integration and regulatory maturity in the world of digital assets.

Bitcoin claimed an intra-day high of $111,746 at 0400 GMT according to CoinMarketCap. It has gained more than 18 per cent in May alone, reflecting growing demand from institutional investors and renewed optimism in the broader market.

Bitcoin surged to a new all-time high on May 22, climbing above $111,000 for the first time, as bullish momentum built on the back of institutional investment, favourable macroeconomic trends, and progress on US crypto regulation. The cryptocurrency claimed an intra-day high of $111,746 at 0400 GMT according to CoinMarketCap, surpassing its previous high from January. It has gained more than 18 per cent in May alone, reflecting growing demand from institutional investors and renewed optimism in the broader market. What is boosting Bitcoin? Driving the rally is a wave of fresh capital flowing into US-listed spot Bitcoin exchange-traded funds (ETFs). eToro Australia analyst Reece Hobson told Decrypt that the net inflows into these ETFs have topped $2.8 billion this month, lifting total ETF holdings to more than $122 billion. Hobson noted that this demand, along with tighter supply following April’s Bitcoin halving event, has been a powerful catalyst. Meanwhile, traditional financial giants are increasingly warming up to crypto. J.P. Morgan CEO Jamie Dimon, a long-time Bitcoin sceptic, acknowledged this week that the bank is now allowing clients to invest in the digital asset. Separately, Coinbase’s upcoming inclusion in the S&P 500 index is being seen as a landmark moment for the sector, even as the exchange faces a Department of Justice probe related to a recent data breach. In addition to institutional flows, broader macroeconomic factors have supported Bitcoin’s rise. The weakening US dollar has bolstered the cryptocurrency’s appeal as a store of value, while a broader rally in tech stocks—the Nasdaq is up 30 per cent since April—has encouraged risk-on sentiment among investors. Progress on the regulatory front has also been a key driver. A bipartisan push in the US Senate to pass legislation on stablecoins has boosted confidence among investors looking for greater clarity and legitimacy in the crypto space. Although Bitcoin continues to lead the crypto rally, attention is gradually turning to altcoins like Ethereum and Solana, which have yet to catch up. Analysts suggest a broader rally could emerge if Bitcoin’s dominance rises further and liquidity conditions improve. For now, Bitcoin’s upward march reflects not just investor enthusiasm but also growing signs of institutional integration and regulatory maturity in the world of digital assets.

Bitcoin claimed an intra-day high of $111,746 at 0400 GMT according to CoinMarketCap. It has gained more than 18 per cent in May alone, reflecting growing demand from institutional investors and renewed optimism in the broader market.

Bitcoin hits record high amid institutional buying and regulatory optimism

The Supreme Court of India on May 19 strongly criticised the central government for its prolonged failure to bring a clear regulatory framework for cryptocurrencies, stating that the absence of such a framework has created a breeding ground for “misuse”.The apex court reiterated its earlier observation that unregulated Bitcoin trading is “nothing but a more polished form of Hawala”, an illegal informal money transfer system.A bench of Justices Surya Kant and N. Kotiswar Singh made these remarks while hearing a bail petition filed by Shailesh Babulal Bhatt, a Gujarat resident accused of multi-state cryptocurrency-related fraud.While the bail plea itself was not directly related to broader policy, the bench expressed grave concerns about the lack of regulation in the crypto sector. They questioned why the Enforcement Directorate (ED), the prosecuting agency, chose to arrest Bhatt after completing its probe when he was not arrested during the ongoing investigation.&nbsp;Call for regulation, not ban&nbsp;The Supreme Court reminded the government that nearly two years ago, it had sought clarity on India’s policy regarding virtual currencies. The bench emphasised that outright banning cryptocurrencies would be unwise, especially as new financial mechanisms are evolving in global trade, but stressed that some form of regulation is absolutely essential. The top court asserted that the government’s failure to regulate this space amounted to turning a “blind eye” to a pressing issue.“Nobody is saying to stop it since you have said earlier that cryptocurrency is not illegal and banning it will not be wise for the economy. Banning may be shutting your eyes to the ground reality. But what about regulating it?” Justice Kant remarked.Additional Solicitor General Aishwarya Bhati, representing the Union, sought time to obtain instructions on the matter. The Court also highlighted the practical and evidentiary challenges law enforcement faces in the absence of a legal definition or framework for crypto assets. “If tomorrow somebody asks, ‘Prove what is this asset, how are we going to prove it?’ We are not experts. Experts will have to examine it, but some steps to regulate it are necessary. We are told crypto trading is very volatile... today a Bitcoin might be worth lakhs, and tomorrow it can mean nothing,” the bench observed.Senior advocate Mukul Rohatgi, representing Bhatt, argued that Bitcoin trading is not illegal in India, citing the Supreme Court’s 2020 decision that struck down a Reserve Bank of India (RBI) circular barring banks from facilitating crypto-related transactions. He contended that Bhatt's arrest was unjustified given the absence of a law explicitly banning such activity.ASG Bhati informed the Court that an updated report on the investigation progress and the Centre’s position on cryptocurrency would be submitted by July.Currently, India imposes a flat 30 per cent tax on profits from cryptocurrency transactions and a 1 per cent tax deducted at source on every trade. However, cryptocurrencies like Bitcoin and Ethereum are neither recognised as legal tender nor banned outright.Manvinder Singh, Partner, JSA Advocates &amp; Solicitors believes that “The Supreme Court’s remark reinforces the importance of striking a balance between innovation and regulatory oversight. It reflects a broader understanding that as the crypto market continues to mature, it’s important for the legal and regulatory system to keep pace and provide a robust, future-ready framework that ensures investor protection, market integrity, and innovation.”The RBI has repeatedly warned of the risks associated with crypto investments, even as it promotes the Digital Rupee, a central bank digital currency. A draft bill to regulate cryptocurrencies was prepared in 2021 but is yet to be tabled in Parliament.This is not the first time the Supreme Court has flagged the issue. In July 2023, another bench had directed the union government to clarify whether it intended to “set up a federal agency to investigate criminal cases involving cryptocurrencies,” lamenting the lack of both a regulatory law and an expert agency to probe such matters.&nbsp;(With inputs from agencies)

SC said Center's prolonged failure to bring a clear regulatory framework for cryptocurrencies has created a breeding ground for misuse

The Supreme Court of India on May 19 strongly criticised the central government for its prolonged failure to bring a clear regulatory framework for cryptocurrencies, stating that the absence of such a framework has created a breeding ground for “misuse”. The apex court reiterated its earlier observation that unregulated Bitcoin trading is “nothing but a more polished form of Hawala”, an illegal informal money transfer system. A bench of Justices Surya Kant and N. Kotiswar Singh made these remarks while hearing a bail petition filed by Shailesh Babulal Bhatt, a Gujarat resident accused of multi-state cryptocurrency-related fraud. While the bail plea itself was not directly related to broader policy, the bench expressed grave concerns about the lack of regulation in the crypto sector. They questioned why the Enforcement Directorate (ED), the prosecuting agency, chose to arrest Bhatt after completing its probe when he was not arrested during the ongoing investigation. Call for regulation, not ban The Supreme Court reminded the government that nearly two years ago, it had sought clarity on India’s policy regarding virtual currencies. The bench emphasised that outright banning cryptocurrencies would be unwise, especially as new financial mechanisms are evolving in global trade, but stressed that some form of regulation is absolutely essential. The top court asserted that the government’s failure to regulate this space amounted to turning a “blind eye” to a pressing issue. “Nobody is saying to stop it since you have said earlier that cryptocurrency is not illegal and banning it will not be wise for the economy. Banning may be shutting your eyes to the ground reality. But what about regulating it?” Justice Kant remarked. Additional Solicitor General Aishwarya Bhati, representing the Union, sought time to obtain instructions on the matter. The Court also highlighted the practical and evidentiary challenges law enforcement faces in the absence of a legal definition or framework for crypto assets. “If tomorrow somebody asks, ‘Prove what is this asset, how are we going to prove it?’ We are not experts. Experts will have to examine it, but some steps to regulate it are necessary. We are told crypto trading is very volatile... today a Bitcoin might be worth lakhs, and tomorrow it can mean nothing,” the bench observed. Senior advocate Mukul Rohatgi, representing Bhatt, argued that Bitcoin trading is not illegal in India, citing the Supreme Court’s 2020 decision that struck down a Reserve Bank of India (RBI) circular barring banks from facilitating crypto-related transactions. He contended that Bhatt's arrest was unjustified given the absence of a law explicitly banning such activity. ASG Bhati informed the Court that an updated report on the investigation progress and the Centre’s position on cryptocurrency would be submitted by July. Currently, India imposes a flat 30 per cent tax on profits from cryptocurrency transactions and a 1 per cent tax deducted at source on every trade. However, cryptocurrencies like Bitcoin and Ethereum are neither recognised as legal tender nor banned outright. Manvinder Singh, Partner, JSA Advocates & Solicitors believes that “The Supreme Court’s remark reinforces the importance of striking a balance between innovation and regulatory oversight. It reflects a broader understanding that as the crypto market continues to mature, it’s important for the legal and regulatory system to keep pace and provide a robust, future-ready framework that ensures investor protection, market integrity, and innovation.” The RBI has repeatedly warned of the risks associated with crypto investments, even as it promotes the Digital Rupee, a central bank digital currency. A draft bill to regulate cryptocurrencies was prepared in 2021 but is yet to be tabled in Parliament. This is not the first time the Supreme Court has flagged the issue. In July 2023, another bench had directed the union government to clarify whether it intended to “set up a federal agency to investigate criminal cases involving cryptocurrencies,” lamenting the lack of both a regulatory law and an expert agency to probe such matters. (With inputs from agencies)

SC said Center's prolonged failure to bring a clear regulatory framework for cryptocurrencies has created a breeding ground for “misuse”

Supreme Court slams central government for crypto inaction

While China's Deepseek sparked a deep sell-off in US tech stocks and into the Asian markets, the same euphoria can be seen in cryptocurrencies. Even before Trump's arrival as the president, his pro-crypto stance helped improve crypto's global outlook. While Trump wants America to become the 'crypto capital' of the world, Asian countries are slowly building their crypto bases.&nbsp;
Hong Kong &amp; Singapore have emerged as frontrunners, capitalising on the renewed global interest in digital assets. Hong Kong regulators are betting on 'global liquidity' to drive investments, with plans to introduce riskier products like derivatives and margin trading. Meanwhile, Singapore has taken a more structured approach, issuing 30 'major payment institution' licences for digital asset firms. Other Asian markets, including Malaysia, Thailand, Japan, and South Korea, are also considering regulatory shifts.
<h2>Non-metros lead India's crypto trading</h2>
Coming to the fastest-growing economy in the world, India has been more sceptical than others regarding crypto adoption. Crypto taxes in the region are already the highest globally, with little or no respite so far. Still, India recorded $1.9 billion in crypto trade in the October-December quarter of 2024.&nbsp;
This surge comes as more traders look for alternative income sources. Many are turning to crypto as job growth and wage hikes lag behind economic expansion. Traders are now shifting to crypto amid tighter regulations on equity derivates.&nbsp;
Data from Coinswitch reveals that 7 of the top 10 cities driving crypto activity in 2024 were lower-tiered hubs like Jaipur, Lucknow, and Pune. This mirrors a trend seen in the stock market, where smaller cities are driving trade volumes. To facilitate traders, crypto trading academies are also gaining traction. Consulting firm Grant Thornton Bharat projects India's crypto market to grow at a growth rate of 18.5 per cent.
Meanwhile, the Reserve Bank of India continues to warn against risks. The RBI flagged concerns over macroeconomic and financial stability linked to widespread crypto adoption. This has not deterred retail traders, who continue to flock to the new financial opportunity. Whether the government tightens its grip or embraces the sector remains a key question for Indian investors.&nbsp;

Business & Economy, While Trump wants America to become the 'crypto capital' of the world, Asian countries are slowly building their crypto bases.

While China's Deepseek sparked a deep sell-off in US tech stocks and into the Asian markets, the same euphoria can be seen in cryptocurrencies. Even before Trump's arrival as the president, his pro-crypto stance helped improve crypto's global outlook. While Trump wants America to become the 'crypto capital' of the world, Asian countries are slowly building their crypto bases. Hong Kong & Singapore have emerged as frontrunners, capitalising on the renewed global interest in digital assets. Hong Kong regulators are betting on 'global liquidity' to drive investments, with plans to introduce riskier products like derivatives and margin trading. Meanwhile, Singapore has taken a more structured approach, issuing 30 'major payment institution' licences for digital asset firms. Other Asian markets, including Malaysia, Thailand, Japan, and South Korea, are also considering regulatory shifts. Non-metros lead India's crypto trading Coming to the fastest-growing economy in the world, India has been more sceptical than others regarding crypto adoption. Crypto taxes in the region are already the highest globally, with little or no respite so far. Still, India recorded $1.9 billion in crypto trade in the October-December quarter of 2024. This surge comes as more traders look for alternative income sources. Many are turning to crypto as job growth and wage hikes lag behind economic expansion. Traders are now shifting to crypto amid tighter regulations on equity derivates. Data from Coinswitch reveals that 7 of the top 10 cities driving crypto activity in 2024 were lower-tiered hubs like Jaipur, Lucknow, and Pune. This mirrors a trend seen in the stock market, where smaller cities are driving trade volumes. To facilitate traders, crypto trading academies are also gaining traction. Consulting firm Grant Thornton Bharat projects India's crypto market to grow at a growth rate of 18.5 per cent. Meanwhile, the Reserve Bank of India continues to warn against risks. The RBI flagged concerns over macroeconomic and financial stability linked to widespread crypto adoption. This has not deterred retail traders, who continue to flock to the new financial opportunity. Whether the government tightens its grip or embraces the sector remains a key question for Indian investors.

Asian crypto hubs: Hong Kong, Singapore lead, young traders drive India's crypto boom

Bitcoin (BTC) is celebrating its 16th anniversary this week.&nbsp;Bitcoin&rsquo;s first block, known as the &ldquo;Genesis Block,&rdquo; was mined on January 3, 2009, by its pseudonymous creator Satoshi Nakamoto. He introduced the first 50 BTCs into circulation. Since then, over 877,000 blocks have been mined.
However, the network's mining difficulty has reached a new all-time high of 109.78 trillion hashes.
The difficulty surge indicates that the computational effort required to mine Bitcoin has increased significantly. This ensures greater security for the network. Bitcoin&rsquo;s mining process, known as hashing, involves powerful machines processing data to add new blocks to the blockchain, a record of transactions.&nbsp; 
Also read: <a href="https://www.wionews.com/business-economy/feds-rate-cut-sparks-inflation-concerns-market-selloff-785158">Fed's rate cut sparks inflation concerns, market selloff</a>
<h2>Next halving event</h2>
With Bitcoin&rsquo;s next halving event in 2028, miners will also see their rewards for mining new blocks reduced by half. This deflationary mechanism ensures a controlled supply of Bitcoin, contributing to its scarcity and long-term value.&nbsp;
The rise in mining difficulty aligns with Bitcoin&rsquo;s ongoing evolution, contributing to the integrity and security of the cryptocurrency.&nbsp;
Also read: <a href="https://www.wionews.com/business-economy/north-korean-cyber-actors-were-behind-the-308-million-cryptocurrency-heist-says-us-and-japan-786407">North Korean cyber actors behind $308 million cryptocurrency heist, say US and Japan</a>
<h2 data-pm-slice="0 0 []">Price action</h2>
Bitcoin achieved a new all-time high (ATH) by surpassing the $100,000 mark in the second half of last year. On December 4, 2024, Bitcoin's price reached a peak of $103,619 by the end of the day, according to market data from various exchanges.

Business & Economy: Bitcoin marks its 16th anniversary with mining difficulty hitting a record high of 109.78 trillion hashes. The 2028 halving event will also reduce rewards.

Bitcoin (BTC) is celebrating its 16th anniversary this week. Bitcoin’s first block, known as the “Genesis Block,” was mined on January 3, 2009, by its pseudonymous creator Satoshi Nakamoto. He introduced the first 50 BTCs into circulation. Since then, over 877,000 blocks have been mined. However, the network's mining difficulty has reached a new all-time high of 109.78 trillion hashes. The difficulty surge indicates that the computational effort required to mine Bitcoin has increased significantly. This ensures greater security for the network. Bitcoin’s mining process, known as hashing, involves powerful machines processing data to add new blocks to the blockchain, a record of transactions. Also read: Fed's rate cut sparks inflation concerns, market selloff Next halving event With Bitcoin’s next halving event in 2028, miners will also see their rewards for mining new blocks reduced by half. This deflationary mechanism ensures a controlled supply of Bitcoin, contributing to its scarcity and long-term value. The rise in mining difficulty aligns with Bitcoin’s ongoing evolution, contributing to the integrity and security of the cryptocurrency. Also read: North Korean cyber actors behind $308 million cryptocurrency heist, say US and Japan Price action Bitcoin achieved a new all-time high (ATH) by surpassing the $100,000 mark in the second half of last year. On December 4, 2024, Bitcoin's price reached a peak of $103,619 by the end of the day, according to market data from various exchanges.

16 years of Bitcoin: Why the battle for mining just got harder

Bitcoin soared to a new record high on Tuesday, fuelled by investors pouring money into US&nbsp;spot exchange-traded crypto products and the prospect that global interest rates may fall.

The world's largest cryptocurrency hit a high of $69,202, topping November 2021's all-time peak of $68,999.99. Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January. It then traded lower and was last at $65,792.

“The bitcoin all-time high marks a turning point for crypto," said Nathan McCauley, CEO and co-founder of crypto platform Anchorage Digital. "Traditional institutions were once sitting out; today, they are here in full force as the principal drivers of the crypto bull market."

Bitcoin's meteoric nearly 160 per cent&nbsp;ascent since October, of which 44 per cent&nbsp;came in February alone, marks a sharp contrast to 2022, when the market was beaten into an 18-month-long crypto winter, plagued by a string of high-profile corporate bankruptcies and scandal.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/bitcoin-surges-beyond-68000-approaches-all-time-high-amid-record-inflows-696675">Bitcoin surges beyond $68,000, approaches all-time high amid record inflows</a>

Net flows into the 10 largest U.S. spot bitcoin funds reached $2.2 billion in the week ended March 1, with more than $2 billion of that going into BlackRock's iShares Bitcoin Trust, according to LSEG data.

"We've been fielding more questions from the field on bitcoin, especially now that there are more efficient and cheaper ways to own bitcoin after the recent slew of ETF launches," said David Wagner, a portfolio manager at Aptus Capital Advisors.

<h2>RISK ON</h2>

In addition to demand from a wider pool of investors,&nbsp;bitcoin, and crypto generally, has gotten a boost from the prospect of the Federal Reserve cutting U.S. interest rates, which often prompts investors to divert capital into assets that are higher yielding or more volatile.

“One part of (bitcoin's rally) has to do with the generally positive sentiment on risk in general," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "You can see that in the all-time high in the S&amp;P 500 and Nasdaq."

Investors have lapped up crypto, mega-cap technology stocks and investment-grade corporate bonds in particular this year.

Also on Tuesday, gold struck a record high, moving further above $2,100 per ounce in a rally sparked by growing bets for a US&nbsp;interest rate cut in June.

"(Cryptocurrencies) are now being used as an alternative to using gold when markets are looking to hedging against increased risks, higher interest rates," said Stuart Cole, chief economist at Equiti Capital. "So no surprise I think that when you see the gold price rallying, cryptos are doing the same.”

Analysts say&nbsp;bitcoin&nbsp;also benefited ahead of April's so-called halving event - a process that takes place every four years in which the rate at which tokens are released is cut in half, along with the rewards given to miners.

Supply of&nbsp;bitcoin&nbsp;is limited to 21 million, of which 19 million have already been mined.

Despite its recent popularity, for many investors,&nbsp;bitcoin&nbsp;is simply too volatile and lacks enough real-world applications to be anything other than a speculative asset.

Yet, in addition to the cocktail of flows of money into ETFs, the prospect of constrained&nbsp;bitcoin&nbsp;supply and an eventual decline in U.S. interest rates, some companies are adding crypto to their corporate coffers.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/bitcoin-plummets-to-40000-hits-lowest-point-since-etf-debut-682753">Bitcoin plummets to $40,000, hits lowest point since ETF debut</a>

In February, software firm MicroStrategy - a long time holder of&nbsp;bitcoin&nbsp;- said it had recently bought about 3,000 more&nbsp;bitcoins for $155 million, while social media platform Reddit also said in a regulatory filing it had bought small amounts of&nbsp;bitcoin&nbsp;and ether.

On Monday, the number of dollar-pegged stablecoins issued by Tether crossed $100 billion for the first time. Tether issues a stablecoin that is designed to maintain a constant value of $1 and is widely used as a way of moving money in cryptocurrency without being exposed to price swings in other tokens such as&nbsp;bitcoin&nbsp;and ether.

The price of ether, the world's second largest cryptocurrency was last trading at $3,706, well below its record high of $4,867 that it touched in November 2021.

"Active trader positioning in&nbsp;bitcoin&nbsp;now appears fairly long. Valuations for ether and most other tokens remain below their highs from the previous crypto cycle," said Zach Pandl, head of research at Grayscale Investments.

Crypto stocks were trading lower on Tuesday, with shares in Coinbase down 2.5 per cent&nbsp;and shares in crypto miners Riot Platforms and Marathon Digital down 9.7 per cent&nbsp;and 11.1 per cent, respectively.

Bitcoin soared to a new record high on Tuesday, fuelled by investors pouring money into US spot exchange-traded crypto products and the prospect that global interest rates may fall.

Bitcoin soared to a new record high on Tuesday, fuelled by investors pouring money into US spot exchange-traded crypto products and the prospect that global interest rates may fall. The world's largest cryptocurrency hit a high of $69,202, topping November 2021's all-time peak of $68,999.99. Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January. It then traded lower and was last at $65,792. “The bitcoin all-time high marks a turning point for crypto," said Nathan McCauley, CEO and co-founder of crypto platform Anchorage Digital. "Traditional institutions were once sitting out; today, they are here in full force as the principal drivers of the crypto bull market." Bitcoin's meteoric nearly 160 per cent ascent since October, of which 44 per cent came in February alone, marks a sharp contrast to 2022, when the market was beaten into an 18-month-long crypto winter, plagued by a string of high-profile corporate bankruptcies and scandal. Also Read | Bitcoin surges beyond $68,000, approaches all-time high amid record inflows Net flows into the 10 largest U.S. spot bitcoin funds reached $2.2 billion in the week ended March 1, with more than $2 billion of that going into BlackRock's iShares Bitcoin Trust, according to LSEG data. "We've been fielding more questions from the field on bitcoin, especially now that there are more efficient and cheaper ways to own bitcoin after the recent slew of ETF launches," said David Wagner, a portfolio manager at Aptus Capital Advisors. RISK ON In addition to demand from a wider pool of investors, bitcoin, and crypto generally, has gotten a boost from the prospect of the Federal Reserve cutting U.S. interest rates, which often prompts investors to divert capital into assets that are higher yielding or more volatile. “One part of (bitcoin's rally) has to do with the generally positive sentiment on risk in general," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "You can see that in the all-time high in the S&P 500 and Nasdaq." Investors have lapped up crypto, mega-cap technology stocks and investment-grade corporate bonds in particular this year. Also on Tuesday, gold struck a record high, moving further above $2,100 per ounce in a rally sparked by growing bets for a US interest rate cut in June. "(Cryptocurrencies) are now being used as an alternative to using gold when markets are looking to hedging against increased risks, higher interest rates," said Stuart Cole, chief economist at Equiti Capital. "So no surprise I think that when you see the gold price rallying, cryptos are doing the same.” Analysts say bitcoin also benefited ahead of April's so-called halving event - a process that takes place every four years in which the rate at which tokens are released is cut in half, along with the rewards given to miners. Supply of bitcoin is limited to 21 million, of which 19 million have already been mined. Despite its recent popularity, for many investors, bitcoin is simply too volatile and lacks enough real-world applications to be anything other than a speculative asset. Yet, in addition to the cocktail of flows of money into ETFs, the prospect of constrained bitcoin supply and an eventual decline in U.S. interest rates, some companies are adding crypto to their corporate coffers. Also Read | Bitcoin plummets to $40,000, hits lowest point since ETF debut In February, software firm MicroStrategy - a long time holder of bitcoin - said it had recently bought about 3,000 more bitcoins for $155 million, while social media platform Reddit also said in a regulatory filing it had bought small amounts of bitcoin and ether. On Monday, the number of dollar-pegged stablecoins issued by Tether crossed $100 billion for the first time. Tether issues a stablecoin that is designed to maintain a constant value of $1 and is widely used as a way of moving money in cryptocurrency without being exposed to price swings in other tokens such as bitcoin and ether. The price of ether, the world's second largest cryptocurrency was last trading at $3,706, well below its record high of $4,867 that it touched in November 2021. "Active trader positioning in bitcoin now appears fairly long. Valuations for ether and most other tokens remain below their highs from the previous crypto cycle," said Zach Pandl, head of research at Grayscale Investments. Crypto stocks were trading lower on Tuesday, with shares in Coinbase down 2.5 per cent and shares in crypto miners Riot Platforms and Marathon Digital down 9.7 per cent and 11.1 per cent, respectively.

Bitcoin reaches new record high, tops $69,000 as investors cheer ETFs, rate prospects

Homing in on an&nbsp;all-time high of just under $20,000,&nbsp;Bitcoin hit $19,000 on Tuesday for the first time in nearly three years.

The world’s most popular cryptocurrency was last up 3.2 per cent&nbsp;at $18,958. Bitcoin has gained nearly 40&nbsp;per cent&nbsp;in November alone and is up around 160&nbsp;per cent&nbsp;this year.

Fuelling its gains have been the demand for risk-on assets amid unprecedented fiscal and monetary stimulus, hunger for assets perceived as resistant to inflation, and expectations that cryptocurrencies would win mainstream acceptance.

<img alt="F" data-entity-type="file" data-entity-uuid="04088e26-d1d8-4eaa-ad9e-59bf34435747" src="//cdn.wionews.com/sites/default/files/inline-images/bitcoin.jpg" />

Bitcoin&nbsp;investors, which include top hedge funds and money managers, are betting the virtual currency could more than quintuple to as high as $100,000 in a year.

It's a wager that has drawn eye-rolls from skeptics who believe the volatile cryptocurrency is a speculative asset rather than a store of value like gold.

Also read:&nbsp;<a href="https://www.wionews.com/technology/us-seizes-bitcoins-worth-1billion-the-largest-cryptocurrency-haul-in-history-342170">US seizes bitcoins worth $1billion, the largest cryptocurrency haul in history</a>

Since January,&nbsp;bitcoin&nbsp;has gained 160%, bolstered by strong institutional demand as well as scarcity as payment companies such as Square and Paypal buy it on behalf of customers.

Bitcoin&nbsp;is within sight of its all-time peak of just under $20,000 hit in December 2017. It debuted in 2011 at zero and was last trading at $18,415.

Going from $18,000 to $100,000 in one year is not a stretch, Brian Estes, chief investment officer at hedge fund Off the Chain Capital, said.

"I have seen&nbsp;bitcoin&nbsp;go up 10X, 20X, 30X in a year. So going up 5X is not a big deal."

Estes predicts&nbsp;bitcoin&nbsp;could hit between $100,000 and $288,000 by end-2021, based on a model that utilizes the stock-to-flow ratio measuring the scarcity of commodities like gold. That model, he said, has a 94 per cent&nbsp;correlation with the price of&nbsp;bitcoin.

Citi technical analyst Tom Fitzpatrick said in a note last week that&nbsp;bitcoin&nbsp;could climb as high as $318,000 by the end of next year, citing its limited supply, ease of movement across borders, and opaque ownership.

Those numbers though are a head-scratcher for Toronto-based Kevin Muir, an independent proprietary trader.

"Any hedge fund model on&nbsp;bitcoin&nbsp;is rubbish. You can't model a mania," Muir said. "Is it plausible? For sure. It's a mania. But does anyone actually have a clue? Not a chance."

DEARTH OF SUPPLY

Bitcoin&nbsp;relies on so-called "mining" computers that validate blocks of transactions by competing to solve mathematical puzzles every 10 minutes. The first to solve the puzzle and clear the transaction is rewarded new&nbsp;bitcoins.

Its technology was designed to cut the reward for miners in half every four years, a move meant to curb inflation. In May,&nbsp;bitcoin&nbsp;went through a third "halving," which reduced the rate at which new coins are created, restricting supply.

That halving has kickstarted&nbsp;bitcoin's renewed ascent.

Square's Cash App and PayPal, which recently launched a crypto service to its more than 300 million users, have been scooping up all new&nbsp;bitcoins, hedge fund Pantera Capital said in its letter to investors on Friday. That has caused a&nbsp;bitcoin&nbsp;shortage and has driven the rally in the last few weeks.

BIG FUNDS BUYING?

The so-called whale index, which counts addresses or wallets holding at least 1,000&nbsp;bitcoins, is at an all-time high, said Phil Bonello, research director at digital asset manager Grayscale. Bonello said more than 2,200 addresses were linked to large&nbsp;bitcoin&nbsp;holders, up 37% from 1,600 in 2018, suggesting that institutional money has stormed in.

Investors like Stanley Druckenmiller, founder of hedge fund Duquesne Capital, and Rick Rieder, BlackRock Inc's chief investment officer of global fixed income, have recently touted&nbsp;bitcoin.

Retail investors though are still mostly sidelined due to the pandemic's effect on the economy. But with the entry of Square and PayPal, Lennard Neo, head of research at crypto index fund provider Stack Funds, expects a deluge of retail demand more intense than in 2017.

Neo forecasts&nbsp;bitcoin&nbsp;to reach $60,000-$80,000 by the end of 2021.

Tempus Inc currency trader Juan Perez was unimpressed, even shocked, with all the lofty forecasts and said a bet on&nbsp;bitcoin&nbsp;at $100,000 next year would be a bet on the collapse of the global financial system.

"Governments around the world won't let that happen. They will not let fiat currencies collapse just like that," Perez said.

Homing in on an all-time high of just under $20,000, Bitcoin hit $19,000 on Tuesday for the first time in nearly three years. The world’s most popular cryptocurrency was last up 3.

Homing in on an all-time high of just under $20,000, Bitcoin hit $19,000 on Tuesday for the first time in nearly three years. The world’s most popular cryptocurrency was last up 3.2 per cent at $18,958. Bitcoin has gained nearly 40 per cent in November alone and is up around 160 per cent this year. Fuelling its gains have been the demand for risk-on assets amid unprecedented fiscal and monetary stimulus, hunger for assets perceived as resistant to inflation, and expectations that cryptocurrencies would win mainstream acceptance. Bitcoin investors, which include top hedge funds and money managers, are betting the virtual currency could more than quintuple to as high as $100,000 in a year. It's a wager that has drawn eye-rolls from skeptics who believe the volatile cryptocurrency is a speculative asset rather than a store of value like gold. Also read: US seizes bitcoins worth $1billion, the largest cryptocurrency haul in history Since January, bitcoin has gained 160%, bolstered by strong institutional demand as well as scarcity as payment companies such as Square and Paypal buy it on behalf of customers. Bitcoin is within sight of its all-time peak of just under $20,000 hit in December 2017. It debuted in 2011 at zero and was last trading at $18,415. Going from $18,000 to $100,000 in one year is not a stretch, Brian Estes, chief investment officer at hedge fund Off the Chain Capital, said. "I have seen bitcoin go up 10X, 20X, 30X in a year. So going up 5X is not a big deal." Estes predicts bitcoin could hit between $100,000 and $288,000 by end-2021, based on a model that utilizes the stock-to-flow ratio measuring the scarcity of commodities like gold. That model, he said, has a 94 per cent correlation with the price of bitcoin. Citi technical analyst Tom Fitzpatrick said in a note last week that bitcoin could climb as high as $318,000 by the end of next year, citing its limited supply, ease of movement across borders, and opaque ownership. Those numbers though are a head-scratcher for Toronto-based Kevin Muir, an independent proprietary trader. "Any hedge fund model on bitcoin is rubbish. You can't model a mania," Muir said. "Is it plausible? For sure. It's a mania. But does anyone actually have a clue? Not a chance." DEARTH OF SUPPLY Bitcoin relies on so-called "mining" computers that validate blocks of transactions by competing to solve mathematical puzzles every 10 minutes. The first to solve the puzzle and clear the transaction is rewarded new bitcoins. Its technology was designed to cut the reward for miners in half every four years, a move meant to curb inflation. In May, bitcoin went through a third "halving," which reduced the rate at which new coins are created, restricting supply. That halving has kickstarted bitcoin's renewed ascent. Square's Cash App and PayPal, which recently launched a crypto service to its more than 300 million users, have been scooping up all new bitcoins, hedge fund Pantera Capital said in its letter to investors on Friday. That has caused a bitcoin shortage and has driven the rally in the last few weeks. BIG FUNDS BUYING? The so-called whale index, which counts addresses or wallets holding at least 1,000 bitcoins, is at an all-time high, said Phil Bonello, research director at digital asset manager Grayscale. Bonello said more than 2,200 addresses were linked to large bitcoin holders, up 37% from 1,600 in 2018, suggesting that institutional money has stormed in. Investors like Stanley Druckenmiller, founder of hedge fund Duquesne Capital, and Rick Rieder, BlackRock Inc's chief investment officer of global fixed income, have recently touted bitcoin. Retail investors though are still mostly sidelined due to the pandemic's effect on the economy. But with the entry of Square and PayPal, Lennard Neo, head of research at crypto index fund provider Stack Funds, expects a deluge of retail demand more intense than in 2017. Neo forecasts bitcoin to reach $60,000-$80,000 by the end of 2021. Tempus Inc currency trader Juan Perez was unimpressed, even shocked, with all the lofty forecasts and said a bet on bitcoin at $100,000 next year would be a bet on the collapse of the global financial system. "Governments around the world won't let that happen. They will not let fiat currencies collapse just like that," Perez said.

Bitcoin cryptocurrency near record high, hits $19,000 for first time in three years

Digital assets and cryptocurrencies like bitcoin, ethereum and XRP have often been called highly volatile and risky assets used by either speculators or dubious characters for dark web anonymous transactions facilitating illegal activities. Bitcoin has been around for over ten years at this point and it has proven to be useful for more than just speculation, and when it comes to using it for illegal transactions, it is not a clever solution to use a payment where the payment history is ending up on a permanent blockchain freely accessible.

The industries and companies that are developing technology using blockchain are now numbering in the thousands, and with more and more incentive to solve problems with fiat currencies, the industry is set to expand exponentially in the coming years. A fundamental difference between regular fiat currencies like the dollar, and bitcoin, is that the dollar is an inflationary currency that loses value over time due to money printing. Bitcoin, on the other hand, is a deflationary currency with a fixed, limited total supply.

Another characteristic of bitcoin besides the limited supply is the periodic halving of the reward handed out to miners processing transactions on the network and in turn increase the security of it. Currently, miners are rewarded with 12.5 bitcoins per block of transactions confirmed on the network, after the halving the reward will be reduced to 6.25 bitcoins per block. The next bitcoin halving is scheduled to happen on May 12, and investors are expecting that the digital asset will see new all-time highs as there will be a smaller supply of newly created Bitcoins.

When bitcoin halvings have happened historically, it has lead to a bull-market pushing the price of Bitcoin up dramatically in the months following the halving, which takes place roughly every four years.

Twitter handle PlanB @100trillionUSD has created a useful data model to explain these periodic cycles of price fluctuations in relation to the halving events: 
 
<img alt="Data Model" data-entity-type="file" data-entity-uuid="62d444e9-f7c6-4a9f-aae1-65abf35197fb" src="//cdn.wionews.com/sites/default/files/inline-images/medium_Com_PlanB_S2F_model%20%281%29.png" />

This model predicts that following the halving event on May 12, the price of bitcoin will rise into a new phase around $100,000 after the flow of new bitcoins into the market gets factored in and reflected into the price. The different phases of this model also take into consideration how the use case for bitcoin develops over time. In the early days, the most popular bitcoin narrative was “proof of concept”, in the next phase that changed to “payments”, followed by “E-gold” where the price of one bitcoin was close to the price of one ounce of gold. This model has proven its value over the previous halvings on the network, but it is worth noting that some of the scaling issues that appeared during the bull-market of 2017 are yet to be resolved.

Twitter user @C3_Nik states: “The Scalability issues surrounding #Bitcoin $BTC haven't been improved over the last few years. Nothing in terms of the technology has changed since the BTC network slowed down to a crawl and the average fee rose to 60$ in late 2017. It can kill the next bull run for BTC, easily.”

During all-time high bull-market of 2017, the network slowed down significantly, while the transaction fees rose to levels above what most people are comfortable with for smaller transactions, leading to a lot of investments flowing into altcoins where transactions were faster and cheaper.

@C3_Nik goes on to state “And this isn't some 'maybe', it is a proven fact. The data is there. Next time it will happen again. #Bitcoin $BTC will become unusable right in the middle of the next bull run. What will happen then? I hope that the market realises that there are better solutions that work.”

In the years following the launch of bitcoin, several other cryptocurrencies have been launched. One notable example is Ripple's XRP that focuses on international remittances and on-demand liquidity. While some people in the digital assets community think of Ripple as the banker's coin that does not follow the ethos of Bitcoin, Ripple labs went to meet with regulators as soon as possible in order to work with regulators and speed up the process of adoption and implementation. XRP is today the third biggest digital asset by market cap and has partnerships with more than 300 banks around the world. With all the developments in the recent months with the coronavirus pandemic and the economic fall out of that, there is now an added incentive for people to use digital payments instead of using cash due to the risk of getting infected. When the governments around the world are printing money on a large scale leading to inflation and the devaluing of their population's savings and retirements accounts, digital assets can, like gold and silver be used as a safe haven investment for protecting their wealth.

Whether or not the stock to flow model holds true and bitcoin reaches $100,000, the cryptocurrency industry is here to stay, and there are many other solutions than Bitcoin for secure digital payments. During these testing times, the future looks bright for digital assets.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;&nbsp;

&nbsp;

Digital assets and cryptocurrencies like bitcoin, ethereum and XRP have often been called highly volatile and risky assets used by either speculators or dubious characters for dark web anonymous transactions facilitating illegal activities.

Digital assets and cryptocurrencies like bitcoin, ethereum and XRP have often been called highly volatile and risky assets used by either speculators or dubious characters for dark web anonymous transactions facilitating illegal activities. Bitcoin has been around for over ten years at this point and it has proven to be useful for more than just speculation, and when it comes to using it for illegal transactions, it is not a clever solution to use a payment where the payment history is ending up on a permanent blockchain freely accessible. The industries and companies that are developing technology using blockchain are now numbering in the thousands, and with more and more incentive to solve problems with fiat currencies, the industry is set to expand exponentially in the coming years. A fundamental difference between regular fiat currencies like the dollar, and bitcoin, is that the dollar is an inflationary currency that loses value over time due to money printing. Bitcoin, on the other hand, is a deflationary currency with a fixed, limited total supply. Another characteristic of bitcoin besides the limited supply is the periodic halving of the reward handed out to miners processing transactions on the network and in turn increase the security of it. Currently, miners are rewarded with 12.5 bitcoins per block of transactions confirmed on the network, after the halving the reward will be reduced to 6.25 bitcoins per block. The next bitcoin halving is scheduled to happen on May 12, and investors are expecting that the digital asset will see new all-time highs as there will be a smaller supply of newly created Bitcoins. When bitcoin halvings have happened historically, it has lead to a bull-market pushing the price of Bitcoin up dramatically in the months following the halving, which takes place roughly every four years. Twitter handle PlanB @100trillionUSD has created a useful data model to explain these periodic cycles of price fluctuations in relation to the halving events: This model predicts that following the halving event on May 12, the price of bitcoin will rise into a new phase around $100,000 after the flow of new bitcoins into the market gets factored in and reflected into the price. The different phases of this model also take into consideration how the use case for bitcoin develops over time. In the early days, the most popular bitcoin narrative was “proof of concept”, in the next phase that changed to “payments”, followed by “E-gold” where the price of one bitcoin was close to the price of one ounce of gold. This model has proven its value over the previous halvings on the network, but it is worth noting that some of the scaling issues that appeared during the bull-market of 2017 are yet to be resolved. Twitter user @C3_Nik states: “The Scalability issues surrounding #Bitcoin $BTC haven't been improved over the last few years. Nothing in terms of the technology has changed since the BTC network slowed down to a crawl and the average fee rose to 60$ in late 2017. It can kill the next bull run for BTC, easily.” During all-time high bull-market of 2017, the network slowed down significantly, while the transaction fees rose to levels above what most people are comfortable with for smaller transactions, leading to a lot of investments flowing into altcoins where transactions were faster and cheaper. @C3_Nik goes on to state “And this isn't some 'maybe', it is a proven fact. The data is there. Next time it will happen again. #Bitcoin $BTC will become unusable right in the middle of the next bull run. What will happen then? I hope that the market realises that there are better solutions that work.” In the years following the launch of bitcoin, several other cryptocurrencies have been launched. One notable example is Ripple's XRP that focuses on international remittances and on-demand liquidity. While some people in the digital assets community think of Ripple as the banker's coin that does not follow the ethos of Bitcoin, Ripple labs went to meet with regulators as soon as possible in order to work with regulators and speed up the process of adoption and implementation. XRP is today the third biggest digital asset by market cap and has partnerships with more than 300 banks around the world. With all the developments in the recent months with the coronavirus pandemic and the economic fall out of that, there is now an added incentive for people to use digital payments instead of using cash due to the risk of getting infected. When the governments around the world are printing money on a large scale leading to inflation and the devaluing of their population's savings and retirements accounts, digital assets can, like gold and silver be used as a safe haven investment for protecting their wealth. Whether or not the stock to flow model holds true and bitcoin reaches $100,000, the cryptocurrency industry is here to stay, and there are many other solutions than Bitcoin for secure digital payments. During these testing times, the future looks bright for digital assets. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Explained: Bitcoin halving and the expected bull-market for digital assets

Police in the north China city of Tianjin confiscated 600 computers used to mine bitcoin cryptocurrency after the local power grid operator reported abnormal electricity usage, Xinhua reported Wednesday.

"Eight high-power fans were also seized," Xinhua said, quoting local police and added that it was the "largest power theft case in recent years."

The report didn't say when the police had seized the equipment.

China was home to the majority of crytopcurrency mining operations before Beijing last year began to discourage it as part of a larger crackdown on bitcoin and other cryptocurrencies. It is unclear how much of mining activity has moved offshore or been shut down.

Reuters reported in January that China's central bank told a top-level government internet finance group that the monetary authority can tell local governments to regulate the power usage of bitcoin miners to gradually reduce the scale of their production.

Miners use high-powered machines to generate the massive computing power to produce cryptocurrencies, which is done by solving mathematical equations.

The activity is also highly energy intensive, leading miners to seek locations with easy access to cheap electricity.

Five people are under investigation and another has been detained in the Tianjin case, Xinhua said.

China was home to the majority of crytopcurrency mining operations before Beijing last year began to discourage it as part of a larger crackdown on bitcoin and other cryptocurrencies.

Police in the north China city of Tianjin confiscated 600 computers used to mine bitcoin cryptocurrency after the local power grid operator reported abnormal electricity usage, Xinhua reported Wednesday. "Eight high-power fans were also seized," Xinhua said, quoting local police and added that it was the "largest power theft case in recent years." The report didn't say when the police had seized the equipment. China was home to the majority of crytopcurrency mining operations before Beijing last year began to discourage it as part of a larger crackdown on bitcoin and other cryptocurrencies. It is unclear how much of mining activity has moved offshore or been shut down. Reuters reported in January that China's central bank told a top-level government internet finance group that the monetary authority can tell local governments to regulate the power usage of bitcoin miners to gradually reduce the scale of their production. Miners use high-powered machines to generate the massive computing power to produce cryptocurrencies, which is done by solving mathematical equations. The activity is also highly energy intensive, leading miners to seek locations with easy access to cheap electricity. Five people are under investigation and another has been detained in the Tianjin case, Xinhua said.

Police in Chinese city seize 600 computers used to mine bitcoin

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