Tech
“Right-to-mine” cryptocurrency laws are spreading across the United States
If you drive 45 miles north of Little Rock, Arkansas, you’ll come across a facility filled with thousands of computers trying to “mine” the next bitcoin.
The value of the popular cryptocurrency recently surpassed $60,000 per bitcoin. Mining those bitcoins is a profitable operation, and several cryptocurrency mining companies have moved into the state after the law was passed Arkansas Data Center Law last year, also known as the “right to mine” bill. Similar provisions protecting cryptocurrency mining operations from local regulations have appeared in a couple of states.
But it turns out that residents don’t particularly appreciate many of these operations. And Arkansas recently changed course and returned the ability to regulate cryptocurrency miners to municipalities.
Marketplace’s Lily Jamali recently spoke with Gabriel Dance, senior deputy investigative editor at The New York Times, about the cryptocurrency mining situation in Arkansas. He explained what the biggest complaints have been since these mining operations moved in.
The following is an edited transcript of their conversation
Gabriele Danza: The biggest concern I heard specifically in Arkansas – and I also visited mines in Texas and North Dakota – was about noise. It’s probably hard to understand how loud these mines are, but they typically essentially carry crates full of thousands of computers, and each of those computers has a fan. And the fans are whirring, and thousands of these fans working together can create a very loud noise similar to that of an airplane idling. And so that’s the primary concern of many people in Arkansas. I mean, they live mostly in rural communities and they moved to those communities intentionally for the peace and to be away from the busy cities. So for these mines to come in and basically ruin the atmosphere is incredibly destructive not only to the people who live there, but to the wildlife. And even things like hunters are very worried about this. But there are also concerns about rising energy prices, using large amounts of water to cool cars and, yes, the associated pollution. Another thing they’re worried about is who exactly owns all these mines, because they appear to be connected to a network of shell companies, some of which have ties to the Chinese government.
Lily Jamali: I found this very interesting and actually very new regarding your reporting. I hadn’t seen that in many cases it appears that Chinese citizens own and operate these facilities.
Dance: Yes, and not just in Arkansas, but certainly in Arkansas there is this network of shell companies that I described, one of which has direct ties to the Chinese government. And then many of the people involved in that mine appear to have roles in many other mines. But this isn’t just a problem in Arkansas, it’s linked to a greater influx of Chinese property into the United States, some of which has attracted national security attention. For example, an operational mine in Wyoming is located just under a mile away from an Air Force base that controls nuclear-armed intercontinental ballistic missiles. Microsoft, the technology company that operates a data center nearby, sent a report to the U.S. government warning that it could be used for intelligence-gathering operations. Other Chinese-owned bitcoin mines are located directly adjacent to large substations that, if taken offline, could wreak havoc in the areas where they are located.
Jamali: Electrical substations.
Dance: Yes, yes. In all, we identified Chinese-owned or operated bitcoin mines in at least a dozen states.
Jamali: I want to examine the forces behind this legislation that we are seeing in Arkansas and elsewhere. You write that the Satoshi Action Fund helped write these laws. Can you explain what the Satoshi Action Fund is and who is behind it?
Dance: Of course, the Satoshi Action Fund is a non-profit advocacy group that primarily supports bitcoin mining. It is based in Mississippi, and its co-founder actually worked in the Trump administration, rolling back Obama-era climate policies. It was actually founded five years ago as something called the Energy 45 Fund. And its founder, Mandy Gunasekara, had spent the previous two years at the Environmental Protection Agency, where she played a key role in the decision to withdraw the United States from the Paris climate agreement and helped repeal the Clean Power Plan.
Jamali: And he worked with former EPA chief Scott Pruitt, who listeners may remember from that era of the Trump administration.
Dance: Right. In fact, he credited Scott Pruitt with introducing her to bitcoin and bitcoin mining.
Jamali: Oh wow.
Dance: Yes, that was an interesting thing he said in a podcast that originally, Mr. Pruitt had suggested they go into business together selling energy to bitcoin miners.
Jamali: I had no idea. Well, we reached out to the Satoshi Action Fund for this segment and have not received a response. Let me ask you, Gabriel, how is this law in Arkansas part of a larger trend? Where else are these crypto mining industry deregulation laws being attempted, and where have they been successful?
Dance: Yes, the Satoshi Action Group is very ambitious. So, in addition to the Arkansas bill, a very similar law took effect in Montana last year, and the Satoshi Fund said it expects to pass several more this year. The Louisiana House recently unanimously passed a similar bill. There’s a bill making its way to Missouri as well. But there are other places where bills face major obstacles. In Indiana and Georgia, I think the bills are unlikely to pass, or at least I think they are unlikely to pass. And even in North Carolina there is strong resistance. And the reaction is generally like: why should we proactively protect this industry over any other industry? I think that’s a smart question to ask.
Jamali: So Gabriel, what’s the next step? Will we see more of these bills?
Dance: I think most of the bills that were supposed to be introduced were. That said, the Satoshi Action Fund continues to lobby lawmakers at the federal and state levels on the issue, using many of the same arguments that, at least in Arkansas, have not happened, such as jobs, or have caused serious consequences. problems for local communities.
While the Satoshi Action Fund did not respond to our request for comment, we reached out to the nonprofit Earthjustice, which has represented community groups across the country who have filed lawsuits against cryptocurrency mining operations. We spoke with Mandy DeRoche, deputy attorney general of the Clean Energy Program. Here is her statement:
We have seen across the United States how energy-intensive cryptocurrency mining strains power grids, restarts and decommissions dirty coal and gas plants, raises electricity rates for others, increases local air pollution, and of water and is as loud as planes about to take off. Cryptocurrency miners do not need special incentives or rights or special protections at the expense of real people in the affected communities. Cryptocurrency miners already face virtually no oversight or regulation. The Arkansas Legislature and Arkansas residents learned this the hard way. Policymakers in other states should understand the true impacts and externalities of this industry, local communities and the environment and not fall into the same trap.
Mandy DeRoche, deputy attorney general of Earthjustice’s Clean Energy Program
Although Arkansas has reinstated some of its protections for cryptocurrency mining, Oklahoma recently passed its own mining rights law will go into effect this November. The law offers cryptocurrency miners similar protections from local restrictions.
Meanwhile, the Biden administration issued an order requesting MineOne, the owners of the Wyoming cryptocurrency mining data center mentioned by Gabriel, close and sell the mine. MineOne is majority owned by Chinese citizens.
Tech
Harvard Alumni, Tech Moguls, and Best-Selling Authors Drive Nearly $600 Million in Pre-Order Sales
BlockDAG Network’s history is one of innovation, perseverance, and a vision to push the boundaries of blockchain technology. With Harvard alumni, tech moguls, and best-selling authors at the helm, BlockDAG is rewriting the rules of the cryptocurrency game.
CEO Antony Turner, inspired by the successes and shortcomings of Bitcoin and Ethereum, says, “BlockDAG leverages existing technology to push the boundaries of speed, security, and decentralization.” This powerhouse team has led a staggering 1,600% price increase in 20 pre-sale rounds, raising over $63.9 million. The secret? Unparalleled expertise and a bold vision for the future of blockchain.
Let’s dive into BlockDAG’s success story and find out what the future holds for this cryptocurrency.
The Origin: Why BlockDAG Was Created
In a recent interview, BlockDAG CEO Antony Turner perfectly summed up why the market needs BlockDAG’s ongoing revolution. He said:
“The creation of BlockDAG was inspired by Bitcoin and Ethereum, their successes and their shortcomings.
If you look at almost any new technology, it is very rare that the first movers remain at the forefront forever. Later incumbents have a huge advantage in entering a market where the need has been established and the technology is no longer cutting edge.
BlockDAG has done just that: our innovation is incorporating existing technology to provide a better solution, allowing us to push the boundaries of speed, security, and decentralization.”
The Present: How Far Has BlockDAG Come?
BlockDAG’s presale is setting new benchmarks in the cryptocurrency investment landscape. With a stunning 1600% price increase over 20 presale lots, it has already raised over $63.9 million in capital, having sold over 12.43 billion BDAG coins.
This impressive performance underscores the overwhelming confidence of investors in BlockDAG’s vision and leadership. The presale attracted over 20,000 individual investors, with the BlockDAG community growing exponentially by the hour.
These monumental milestones have been achieved thanks to the unparalleled skills, experience and expertise of BlockDAG’s management team:
Antony Turner – Chief Executive Officer
Antony Turner, CEO of BlockDAG, has over 20 years of experience in the Fintech, EdTech, Travel and Crypto industries. He has held senior roles at SPIRIT Blockchain Capital and co-founded Axona-Analytics and SwissOne. Antony excels in financial modeling, business management and scaling growth companies, with expertise in trading, software, IoT, blockchain and cryptocurrency.
Director of Communications
Youssef Khaoulaj, CSO of BlockDAG, is a Smart Contract Auditor, Metaverse Expert, and Red Team Hacker. He ensures system security and disaster preparedness, and advises senior management on security issues.
advisory Committee
Steven Clarke-Martin, a technologist and consultant, excels in enterprise technology, startups, and blockchain, with a focus on DAOs and smart contracts. Maurice Herlihy, a Harvard and MIT graduate, is an award-winning computer scientist at Brown University, with experience in distributed computing and consulting roles, most notably at Algorand.
The Future: Becoming the Cryptocurrency with the Highest Market Cap in the World
Given its impressive track record and a team of geniuses working tirelessly behind the scenes, BlockDAG is quickly approaching the $600 million pre-sale milestone. This crypto powerhouse will soon enter the top 30 cryptocurrencies by market cap.
Currently trading at $0.017 per coin, BlockDAG is expected to hit $1 million in the coming months, with the potential to hit $30 per coin by 2030. Early investors have already enjoyed a 1600% ROI by batch 21, fueling a huge amount of excitement around BlockDAG’s presale. The platform is seeing significant whale buying, and demand is so high that batch 21 is almost sold out. The upcoming batch is expected to drive prices even higher.
Invest in BlockDAG Pre-Sale Now:
Pre-sale: https://purchase.blockdag.network
Website: https://blockdag.network
Telegram: https://t.me/blockDAGnetwork
Discord: Italian: https://discord.gg/Q7BxghMVyu
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- Space and Time uses zero-knowledge proofs to ensure secure and tamper-proof data processing for smart contracts and enterprises.
- The integration facilitates faster development and deployment of Distributed Secure Services (DSS) on the Karak platform.
Karak, a platform known for its strong security capabilities, is enhancing its Distributed Secure Services (DSS) by integrating Space and Time as a zero-knowledge (ZK) coprocessor. This move is intended to strengthen trustless operations across its network, especially in slashing and rewards mechanisms.
Space and Time is a verifiable processing layer that uses zero-knowledge proofs to ensure that computations on decentralized data warehouses are secure and untampered with. This system enables smart contracts, large language models (LLMs), and enterprises to process data without integrity concerns.
The integration with Karak will enable the platform to use Proof of SQL, a new ZK-proof approach developed by Space and Time, to confirm that SQL query results are accurate and have not been tampered with.
One of the key features of this integration is the enhancement of DSS on Karak. DSS are decentralized services that use re-staked assets to secure the various operations they provide, from simple utilities to complex marketplaces. The addition of Space and Time technology enables faster development and deployment of these services, especially by simplifying slashing logic, which is critical to maintaining security and trust in decentralized networks.
Additionally, Space and Time is developing its own DSS for blockchain data indexing. This service will allow community members to easily participate in the network by running indexing nodes. This is especially beneficial for applications that require high security and decentralization, such as decentralized data indexing.
The integration architecture follows a detailed and secure flow. When a Karak slashing contract needs to verify a SQL query, it calls the Space and Time relayer contract with the required SQL statement. This contract then emits an event with the query details, which is detected by operators in the Space and Time network.
These operators, responsible for indexing and monitoring DSS activities, validate the event and route the work to a verification operator who runs the query and generates the necessary ZK proof.
The result, along with a cryptographic commitment on the queried data, is sent to the relayer contract, which verifies and returns the data to the Karak cutter contract. This end-to-end process ensures that the data used in decision-making, such as determining penalties within the DSS, is accurate and reliable.
Karak’s mission is to provide universal security, but it also extends the capabilities of Space and Time to support multiple DSSs with their data indexing needs. As these technologies evolve, they are set to redefine the secure, decentralized computing landscape, making it more accessible and efficient for developers and enterprises alike. This integration represents a significant step towards a more secure and verifiable digital infrastructure in the blockchain space.
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Iconic Italian luxury carmaker Ferrari has announced the expansion of its cryptocurrency payment system to its European dealer network.
The move, which follows a successful launch in North America less than a year ago, raises a crucial question for CFOs across industries: Is it time to consider accepting cryptocurrency as a form of payment for your business?
Ferrari’s move isn’t an isolated one. It’s part of a broader trend of companies embracing digital assets. As of 2024, we’re seeing a growing number of companies, from tech giants to traditional retailers, accepting cryptocurrencies.
This change is determined by several factors:
- Growing mainstream adoption of cryptocurrencies
- Growing demand from tech-savvy and affluent consumers
- Potential for faster and cheaper international transactions
- Desire to project an innovative brand image
Ferrari’s approach is particularly noteworthy. They have partnered with BitPay, a leading cryptocurrency payment processor, to allow customers to purchase vehicles using Bitcoin, Ethereum, and USDC. This satisfies their tech-savvy and affluent customer base, many of whom have large digital asset holdings.
Navigating Opportunities and Challenges
Ferrari’s adoption of cryptocurrency payments illustrates several key opportunities for companies considering this move. First, it opens the door to new customer segments. By accepting cryptocurrency, Ferrari is targeting a younger, tech-savvy demographic—people who have embraced digital assets and see them as a legitimate form of value exchange. This strategy allows the company to connect with a new generation of affluent customers who may prefer to conduct high-value transactions in cryptocurrency.
Second, cryptocurrency adoption increases global reach. International payments, which can be complex and time-consuming with traditional methods, become significantly easier with cryptocurrency transactions. This can be especially beneficial for businesses that operate in multiple countries or deal with international customers, as it potentially reduces friction in cross-border transactions.
Third, accepting cryptocurrency positions a company as innovative and forward-thinking. In today’s fast-paced business environment, being seen as an early adopter of emerging technologies can significantly boost a brand’s image. Ferrari’s move sends a clear message that they are at the forefront of financial innovation, which can appeal to customers who value cutting-edge approaches.
Finally, there is the potential for cost savings. Traditional payment methods, especially for international transactions, often incur substantial fees. Cryptocurrency transactions, on the other hand, can offer lower transaction costs. For high-value purchases, such as luxury cars, these savings could be significant for both the business and the customer.
While the opportunities are enticing, accepting cryptocurrency payments also presents significant challenges that businesses must address. The most notable of these is volatility. Cryptocurrency values can fluctuate dramatically, sometimes within hours, posing potential risk to businesses that accept them as payment. Ferrari addressed this challenge by implementing a system that instantly converts cryptocurrency received into traditional fiat currencies, effectively mitigating the risk of value fluctuations.
Regulatory uncertainty is another major concern. The legal landscape surrounding cryptocurrencies is still evolving in many jurisdictions around the world. This lack of clear and consistent regulations can create compliance challenges for companies, especially those operating internationally. Companies must remain vigilant and adaptable as new laws and regulations emerge, which can be a resource-intensive process.
Implementation costs are also a significant obstacle. Integrating cryptocurrency payment systems often requires substantial investment in new technology infrastructure and extensive staff training. This can be especially challenging for small businesses or those with limited IT resources. The costs are not just financial; a significant investment of time is also required to ensure smooth implementation and operation.
Finally, security concerns loom large in the world of cryptocurrency transactions. While blockchain technology offers some security benefits, cryptocurrency transactions still require robust cybersecurity measures to protect against fraud, hacks, and other malicious activity. Businesses must invest in robust security protocols and stay up-to-date on the latest threats and protections, adding another layer of complexity and potential costs to accepting cryptocurrency payments.
Strategic Considerations for CFOs
If you’re thinking of following in Ferrari’s footsteps, here are the key factors to consider:
- Risk Assessment: Carefully evaluate potential risks to your business, including financial, regulatory, and reputational risks.
- Market Analysis: Evaluate whether your customer base is significantly interested in using cryptocurrencies for payments.
- Technology Infrastructure: Determine the costs and complexities of implementing a cryptographic payment system that integrates with existing financial processes.
- Regulatory Compliance: Ensure that cryptocurrency acceptance is in line with local regulations in all markets you operate in. Ferrari’s gradual rollout demonstrates the importance of this consideration.
- Financial Impact: Analyze how accepting cryptocurrency could impact your cash flow, accounting practices, and financial reporting.
- Partnership Evaluation: Consider partnering with established crypto payment processors to reduce risk and simplify implementation.
- Employee Training: Plan comprehensive training to ensure your team is equipped to handle cryptocurrency transactions and answer customer questions.
While Ferrari’s adoption of cryptocurrency payments is exciting, it’s important to consider this trend carefully.
A CFO’s decision to adopt cryptocurrency as a means of payment should be based on a thorough analysis of your company’s specific needs, risk tolerance, and strategic goals. Cryptocurrency payments may not be right for every business, but for some, they could provide a competitive advantage in an increasingly digital marketplace.
Remember that the landscape is rapidly evolving. Stay informed about regulatory changes, technological advancements, and changing consumer preferences. Whether you decide to accelerate your crypto engines now or wait in the pit, keeping this payment option on your radar is critical to navigating the future of business transactions.
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The world’s largest cryptocurrency, Bitcoin (BTC), suffered a significant price decline on Wednesday, falling below $65,000. The decline coincides with a broader market sell-off that has hit technology stocks hard.
Cryptocurrency Liquidations Hit Hard
CoinGlass data reveals a surge in long liquidations in the cryptocurrency market over the past 24 hours. These liquidations, totaling $220.7 million, represent forced selling of positions that had bet on price increases. Bitcoin itself accounted for $14.8 million in long liquidations.
Ethereum leads the decline
Ethereal (ETH), the second-largest cryptocurrency, has seen a steeper decline than Bitcoin, falling nearly 8% to trade around $3,177. This decline mirrors Bitcoin’s price action, suggesting a broader market correction.
Cryptocurrency market crash mirrors tech sector crash
The cryptocurrency market decline appears to be linked to the significant losses seen in the U.S. stock market on Wednesday. Stock market listing The index, heavily weighted toward technology stocks, posted its sharpest decline since October 2022, falling 3.65%.
Analysts cite multiple factors
Several factors may have contributed to the cryptocurrency market crash:
- Tech earnings are underwhelming: Earnings reports from tech giants like Alphabet are disappointing (Google(the parent company of), on Tuesday, triggered a sell-off in technology stocks with higher-than-expected capital expenditures that could have repercussions on the cryptocurrency market.
- Changing Political Landscape: The potential impact of the upcoming US elections and changes in Washington’s policy stance towards cryptocurrencies could influence investor sentiment.
- Ethereal ETF Hopes on the line: While bullish sentiment around a potential U.S. Ethereum ETF initially boosted the market, delays or rejections could dampen enthusiasm.
Analysts’ opinions differ
Despite the short-term losses, some analysts remain optimistic about Bitcoin’s long-term prospects. Singapore-based cryptocurrency trading firm QCP Capital believes Bitcoin could follow a similar trajectory to its post-ETF launch all-time high, with Ethereum potentially converging with its previous highs on sustained institutional interest.
Rich Dad Poor Dad Author’s Prediction
Robert Kiyosaki, author of the best-selling Rich Dad Poor Dad, predicts a potential surge in the price of Bitcoin if Donald Trump is re-elected as US president. He predicts a surge to $105,000 per coin by August 2025, fueled by a weaker dollar that is set to boost US exports.
BTC/USD Technical Outlook
Bitcoin price is currently trading below key support levels, including the $65,500 level and the 100 hourly moving average. A break below the $64,000 level could lead to further declines towards the $63,200 support zone. However, a recovery above the $65,500 level could trigger another increase in the coming sessions.
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Raoul Pal – “Prepare for chaos! The banana patch is about to explode”
“2025 will be a pivotal year for Bitcoin and cryptocurrencies” – Matt Hougan and Willy Woo
“A wild ride is coming! Bitcoin’s $250,000 peak could trigger big changes” – Anthony Scaramucci
Jack Mallers – “The real Bitcoin rally will begin in just 30 days”
“It’s a FAKE ACCIDENT! Phases 2 and 3 of Banana Zone will begin very soon” – Tom Lee and Raoul Pal
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