Bitcoin Doesn’t Care as US Debt Reaches an Unfathomable $24 Trillion

Bitcoin Doesn’t Care as US Debt Reaches an Unfathomable $24 Trillion

The national debt of the United States has crossed $24 trillion for the first time in history as Donald Trump’s presidency adds $4 trillion in four years.According to figures from online monitoring resource Trading Economics, the tally now stands at $24.018 trillion as of April 9. The amount is equal to $72,888 for each U.S. citizen, or $193,805 per taxpayer.U.S. massive debt mountain mushroomsThe almost incomprehensible size of national debt comes weeks after the Federal Reserve began an unprecedented money printing program. Providing $6 trillion of liquidity, the Fed led responses to the financial impact of the coronavirus crisis, which is in turn forecast to make U.S. unemployment hit 13%.As Cointelegraph previously reported, for scale, $6 trillion alone is the same as the entire gross domestic product, or GDP, of the U.S. in 1990.U.S. national debt 1942-present. Source: Trading EconomicsIn stark contrast to the deteriorating health of the fiat economy, Bitcoin (BTC) has managed to weather the storm without any bailout from the government. At press time, BTC/USD traded up 2.1% versus the start of 2020, at $7,350.By comparison, for example, the S&P 500 is down 14.9% year to date, while WTI oil has crashed by almost 58%. According to data from JPMorgan quoted by Bloomberg, COVID-2019 could cost the world a total of $5.5 trillion in lost output.Schiff: Trump is “draining the nation”Commenting on the debt mountain, meanwhile, gold bug Peter Schiff showed a rare unity with Bitcoin supporters in noting the dangerous pace that Trump was inflating it.“He will add more debt in 4 years than Bush did in 8,” he wrote on Twitter on Thursday. “If reelected he will add more debt in 8 years than Bush & Obama did in 16. Instead of draining the swamp, he is draining the nation.”That “swamp” is already spawning a mass exodus into gold and an associated crisis in gold markets, pro-Bitcoin TV host Max Keiser warned last week. This weekend, meanwhile, he suggested that it was morally irresponsible to sell BTC for what he called “fiat debt coupons” — paper banknotes.Bitcoin has also seen fresh backing from Robert Kiyosaki, author of the popular book, “Rich Dad, Poor Dad,” who this week argued that using it allows one to reside “outside the system” of fiat money.

First Mover: As Fed Assets Top $6T, BitMEX Has Some Inflation-Busting Advice

First Mover: As Fed Assets Top $6T, BitMEX Has Some Inflation-Busting Advice

Bitcoin has been relatively stable in recent days, pausing after a powerful rally that saw prices nearly double in under a month. What hasn’t paused is the Federal Reserve’s money machine: A report late Thursday showed that the central bank’s total assets surged this week above $6 trillion for the first time in its 107-year history.You’re reading First Mover, CoinDesk’s daily markets newsletter. Assembled by the CoinDesk Markets Team, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. We follow the money so you don’t have to. You can subscribe here.Just since the start of 2020, the Fed’s balance sheet has increased by nearly $2 trillion, swollen by self-funded purchases of U.S. Treasury bonds, mortgage bonds and corporate bonds. Wall Street dealers are taking out emergency loans, companies are issuing bonds directly to the Fed and other central banks have now borrowed $385.4 billion of dollars to smooth out swings in foreign-exchange markets. Federal Reserve total assets. Source: Federal Reserve Bank of St. LouisThe liquidity injections – part of the efforts by authorities around the world to mitigate the economic damage from the novel coronavirus – haven’t gone unnoticed in cryptocurrency markets. Some investors and analysts see bitcoin as a useful hedge against inflation, since supplies of the cryptocurrency are strictly governed by computer-programming code written 11 years ago when the underlying blockchain network was launched.And there’s little expectation that the human-managed Fed’s money machine will stop whirring anytime soon.Source: Shutterstock.A report Thursday from the U.S. Labor Department showed that unemployment continued to surge last week, with jobless claims numbering 17 million over the past three weeks alone. The dismal reports portend rising U.S. government costs, even as tax revenue shrinks due to the loss of economic activity. More sales of Treasury bonds will be needed to cover the swelling budget deficits.  The Fed separately announced $2.3 trillion of emergency funds, including junk-bond purchases and loans to state governments. There’s also financing for a type of instrument called “collateralized loan obligations,” which are the small-business-loan equivalent of the toxic mortgage-backed debt that helped to cause the 2008 financial crisis.Fed Chair Jerome Powell noted Thursday in a speech that the decision to open the money spigot came after “essential” financial markets “had begun to sink…

New York Power Plant Sold Up to 30% of Its Bitcoin Mining Hash Rate to Institutional Buyers

New York Power Plant Sold Up to 30% of Its Bitcoin Mining Hash Rate to Institutional Buyers

Greenidge Generation, an upstate New York power plant that’s using proprietary facilities to mine bitcoin (BTC), has sold up to 30 percent of its computing power to institutional buyers.The firm said in an announcement on Friday that the deal, brokered by BitOoda Digital, proceeded the sale of 106,000 terahashes per second (TH/s) of bitcoin mining power to undisclosed buyers consisting of hedge funds and family offices. The sale was enabled through the execution of BitOoda’s hash contracts, which allow institutional buyers to get exposure to bitcoin mining without having to go through the process of purchasing and setting up equipment.At the Bitcoin network’s current mining competition level, 1 TH/s of computing power would be able to produce about 0.00001709 BTC in a day. As such, the deal would give the buyers a daily yield of about 1.8 BTC – worth around $13,000 – in addition to having the corresponding hardware pledged as collaterals.That said, with the Bitcoin network’s halving event approaching in about 30 days, the total newly minted BTC in 24 hours will be reduced from right now around 1800 units to 900 after mid-May.Greenidge said in the announcement it benefits from locking in profits and receiving an upfront source of capital to continue expanding its operations. The firm declined to disclose the amount of the sales. But major bitcoin miner manufacturers have been recently advertising around $23 per TH/s for several of their newest machines.“Providing the same kind of time-tested hedging capabilities seen in traditional commodity markets, such product brings the benefits of clean and energy-efficient bitcoin mining from Greenidge to institutional investors throughout the United States,” Greenidge CFO Tim Rainey said in the announcement.In early March, it was reported that Greenidge was producing on average 5.5 BTC a day by utilizing 14 megawatt of its total 106 megawatts capacity. The Bitcoin network’s total hash rate back then was around 118 million TH/s on average, which means the firm possessed roughly 357,000 TH/s of computing power at the time. It has plugged in additional equipment over the past several weeks.Disclosure Read More The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating…

UK Company Paid $2.3M Ransom in Bitcoin to Cybercriminals

UK Company Paid $2.3M Ransom in Bitcoin to Cybercriminals

London-based company, Travelex, reportedly paid hackers almost $2.3 million in Bitcoin (BTC) after suffering a ransomware attack on January 11.According to sources quoted by The Wall Street Journal on April 9, the UK firm’s networks were infiltrated by cybercriminals with a ransomware injection in the new year eve of 2020. The company is known for its chain of foreign-exchange kiosks located in airports and tourist sites around the world.Travelex confirmed the attack to the press shortly after it happened. They did not, however, disclose that they paid a ransom of around 285 BTC, after having their systems offline for several weeks.The attack, called Sodinokibi (or “REvil”), is a malware attack that began leaking stolen data earlier this year from various companies, such as CDH Investments and the aforementioned London-based company.COVID-19 ransomware attacks increasingU.S. officials have warned that hackers are more active amid the COVID-19 pandemic, which has forced many company employees to work from home.The report says that cybercriminals are looking for vulnerabilities in corporate networks, which are not being as closely monitored at the moment due to the widespread global lockdowns.Criminal investigations still ongoingA Travelex spokesman consulted by the WSJ clarified that investigations by British authorities are still ongoing, although he declined to comment further on the ransomware attack.It is worth noting that it is not illegal to pay ransoms in the United Kingdom. However, the U.K.’s National Crime Agency highly recommends that victims refrain from giving into the demands of criminals, noting that this only serves to incentivize them further.

New York Power Plant Greenidge Has Sold Up to 30% of Its Bitcoin Mining Hash Rate

New York Power Plant Greenidge Has Sold Up to 30% of Its Bitcoin Mining Hash Rate

Greenidge Generation, an upstate New York power plant that’s using proprietary facilities to mine bitcoin (BTC), has sold up to 30 percent of its computing power to institutional buyers.The firm said in an announcement on Friday that the deal, brokered by BitOoda Digital, proceeded the sale of 106,000 terahashes per second (TH/s) of bitcoin mining power to undisclosed buyers consisting of hedge funds and family offices. The sale was enabled through the execution of BitOoda’s hash contracts, which allow institutional buyers to get exposure to bitcoin mining without having to go through the process of purchasing and setting up equipment.At the Bitcoin network’s current mining competition level, 1 TH/s of computing power would be able to produce about 0.00001709 BTC in a day. As such, the deal would give the buyers a daily yield of about 1.8 BTC – worth around $13,000 – in addition to the ownership of the corresponding hardware as assets.That said, with the Bitcoin network’s halving event approaching in about 30 days, the total newly minted BTC in 24 hours will be reduced from right now around 1800 units to 900 after mid-May.Greenidge said in the announcement it benefits from locking in profits and receiving an upfront source of capital to continue expanding its operations. The firm declined to disclose the amount of the sales. But major bitcoin miner manufacturers have been recently advertising around $23 per TH/s for several of their newest machines.“Providing the same kind of time-tested hedging capabilities seen in traditional commodity markets, such product brings the benefits of clean and energy-efficient bitcoin mining from Greenidge to institutional investors throughout the United States,” Greenidge CFO Tim Rainey said in the announcement.In early March, it was reported that Greenidge was producing on average 5.5 BTC a day by utilizing 14 megawatt of its total 106 megawatts capacity. The Bitcoin network’s total hash rate back then was around 118 million TH/s on average, which means the firm possessed roughly 357,000 TH/s of computing power at the time. It has plugged in additional equipment over the past several weeks.Disclosure Read More The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent…

The Bitcoin Fund Completes IPO, Now Trading on Canada’s Leading Stock Exchange

The Bitcoin Fund Completes IPO, Now Trading on Canada’s Leading Stock Exchange

The Bitcoin Fund, managed by 3iq, has completed an initial public offering and has begun trading on the Toronto Stock Exchange (TSX). It has been a long road for 3iq and The Bitcoin Fund since their filing was first rejected. After a hearing, a commissioner with the Ontario Securities Commission ruled in their favor.Also read: Bitcoin Revolution: Wanna Earn $1,000 a Day? Government Warns About This ScamThe Bitcoin Fund Trading on TSX ExchangeCanadian investment fund manager 3iq Corp. announced on Thursday that The Bitcoin Fund has completed an initial public offering (IPO) and merged with 3iq Bitcoin Trust. Consequently, The Bitcoin Fund now has 1,491,800 outstanding class A units representing the total asset of approximately US$14 million. The class A units are available to all investors, the fund’s prospectus notes. 3iq, which acts as the investment manager and portfolio manager of the fund, elaborated just before trading began:The class A units will commence trading today on the Toronto Stock Exchange under the symbol QBTC.U.The 3iq Bitcoin Fund’s price chart on the TSX Exchange on April 9. The Bitcoin Fund, managed by 3iq, has completed an IPO and also merged with 3iq Bitcoin Trust.Founded in 2012, 3iq currently focuses on digital assets, disruptive technologies and the blockchain space. The Toronto Stock Exchange (TSX), a wholly owned subsidiary of the TMX Group, is Canada’s largest stock exchange and the world’s 9th largest exchange by market capitalization.The Bitcoin Fund’s investment objectives are to provide investors with “exposure to the digital currency bitcoin and the daily price movements of the U.S. dollar price of bitcoin” and “the opportunity for long-term capital appreciation,” 3iq detailed. Investing in The Bitcoin Fund is “appropriate only for investors who have the capacity to absorb a loss of some or all of their investment,” the company emphasized. This closed-end fund “will not speculate with regard to short-term changes in bitcoin prices,” according to the fund’s prospectus, which can be found here.How The Bitcoin Fund Calculates BTC’s PriceThe Bitcoin Fund’s prospectus details that its bitcoin will be valued based on the MVIS Cryptocompare Institutional Bitcoin Index (MVBTC), which is maintained by MV Index Solutions GmbH (MVIS).Cryptocompare independently announced on Thursday that the MVIS Cryptocompare Institutional Bitcoin Index has been licensed to 3iq Corp. for The…

Bitcoin.com Games Invites You to Celebrate Easter With a 3-in-1 Promotion

Bitcoin.com Games Invites You to Celebrate Easter With a 3-in-1 Promotion

In what seems to be one of the most springtastic events of the year, Bitcoin Games has decided to celebrate this Easter with a new 3-in-1 promotion, Happy Easter, where users can play and win egg-static prizes. As spring and Easter mark a season of renewal, the latest amusement from Bitcoin Games is sure to spark merriment with the chance to surmount a stash of crypto winnings.Also read: Latest Bitcoin.com Wallet Release Features Live Charts and Price TrackingHappy Easter – Time to Crack Those Colorful EggsFor a number of years, the premier source for everything bitcoin-related, Bitcoin.com has offered a variety of provably fair games for bitcoin users who want to play for high stake jackpots. Players can win big with a myriad of classic games like Roulette, Keno, Slots, and Blackjack. The latest exclusive promotion from Bitcoin Games is called ‘Happy Easter,’ which challenges players to find and crack three different eggs, each containing a unique prize. With a flurry of bonuses, cashbacks, and Free Spins, this newly launched promotion signifies the cheerful spirit of Easter and promises players some of the sweetest gifts along with a basketful of joy.With spring in the air, at Bitcoin Games, we wanted to offer the most entertaining gameplay on the web. Easter has always been a joyous occasion and the cheerful season is often filled with games and colorful activities. “Easter bunnies are a symbol of fertility as they are known to give birth to a big litter of babies. And the bunnies in our backyard have now begun hopping around lurching on their furry paws, hiding shiny eggs enchanted with the magic of Easter,” said the lead developer in an attempt to make sense of the frolicking chaos at Bitcoin Games. All Bitcoin Games players are invited to join the promotion between the 10th of April 2020 (00:00 GMT) and the 13th of April 2020 (23:59 GMT) to celebrate this joyous occasion. Our latest gaming portal is always filled with high stakes fun and excellent jackpot payouts. Gamers are constantly winning by leveraging a multitude of online casino games and a number of popular exclusives. Bitcoin Games also offers a Live Casino where users can play with real players on interactive games such as Baccarat. The…

Hundreds of Darknet Listings Are Selling Masks and PPE Products for Bitcoin

Hundreds of Darknet Listings Are Selling Masks and PPE Products for Bitcoin

According to a recent research report written by the blockchain surveillance firm Elliptic, there’s been a massive influx of darknet market (DNM) vendors selling personal protective equipment (PPE) like masks and coronavirus test kits. The spike in medical equipment sales on the invisible web during the month of March, follows Ebay and Amazon’s decision to remove all third-party PPE suppliers who sell masks and disinfection products on the websites.Also read: Merchant Services, Gambling, and Darknets: Coronavirus Economy Stunts Cryptocurrency SpendingReport Shows Hundreds of Personal Protective Equipment Listings Can be Found on the DarknetMedical equipment and PPE resources are being sold in great numbers on darknet markets (DNM) for bitcoin and other digital assets. The blockchain forensics firm Elliptic recently published a report called “How Darknet Markets Are Exploiting the Coronavirus Pandemic,” which describes the situation in detail. Since the coronavirus outbreak started gaining traction on a global scale, PPE and certain types of medical equipment like masks and ventilators have been hard to come by. Elliptic’s report notes that DNM vendors have found opportunities by supplying PPE goods to buyers willing to travel the invisible web. Elliptic underlines that the PPE products being priced with extreme premiums, as the company explains that masks are a top item.Elliptic’s report shows N95 masks for sale on various DNMs on the invisible web. Most vendors accept BTC, but other vendors accept digital assets like LTC and XMR as well. The DNMs Bitbazaar and Argartha accept bitcoin cash (BCH) payments for medical supplies as well.“Hundreds of listings have recently appeared on darknet markets for N95 respirator masks,” Elliptic’s report details. “Usually priced at less than $1 each, these masks have been in very short supply and their sale for non-medical use has been restricted. The listings shown offer N95s in bulk at around $1.75 per mask – a surprisingly low mark-up on retail prices. Compare this to the prices charged by vendors on legitimate marketplaces such as Amazon or Ebay, where N95 masks have been listed for sale for upwards of $10 each.”The blockchain forensics firm Elliptic has also found a marketplace dedicated to just selling masks on the deep web.Moreover, besides the traditional darknet markets that have been around for quite some time, a market that claims to…

Q1 Crypto Trade Volume Jumps 61%, Bitcoin’s Price Performance Trumps Equity and Gold Markets

Q1 Crypto Trade Volume Jumps 61%, Bitcoin’s Price Performance Trumps Equity and Gold Markets

For well over a month now, a great number of countries have been living under lockdowns and stay-at-home orders due to the coronavirus outbreak. Meanwhile, central banks like the Fed, Bank of England (BoE), and European Central Bank (ECB) have funneled trillions into the hands of private financial incumbents. Despite the market carnage on March 12, cryptocurrency markets have gone against the trend and remain resilient. Bitcoin and digital currency trade volumes in the first quarter (Q1) of 2020 have outshined Q1 2019’s volumes by 61%.Also read: The Bitcoin Cash Network’s Block Reward Officially Halved – Block 630,000 MinedLockdowns and Stimulus Fuels Crypto Trade VolumesThe coronavirus scare has ravaged the global economy by touching every continent on the planet. The covid-19 virus can lead to severe illness and even death as it has caused the nation state’s politicians to shut down the economy. Bureaucrats have forced the citizenry to stay-at-home with specific lockdown mandates. Bureaucratic leaders have also shut down major industries including services like hotels, restaurants, airlines, cruises, and more. Essentially, depending on your jurisdiction, a shelter-in-place (lockdown) order means residents are asked to stay home and not leave their residence to travel unless it’s an emergency.Spot gold and gold futures charts on April 9, 2020. Gold prices have gained 5.3% since $1,579 the low on March 12, 2020.All of these actions have caused the stock market to crumble, real estate markets shudder, and oil has dropped below $20 per barrel of crude. Just like bitcoin and cryptocurrency markets, on ‘Black Thursday’ March 12, gold took a big hit and dropped to a low of $1,579 per Troy ounce. Since then, gold has gained 5.3% in value to-date, as an ounce of fine gold is selling for $1,661 at press time. BTC dropped to a low of $3,800 on March 12, but prices have since gained 90.78% in value. Even though the global economy has been stumbling, digital assets have surpassed equity and precious metals markets by a long shot.BTC/USD 6-month chart on April 9, 2020. BTC prices have gained 90% since the $3,800 low on March 12, 2020.Q1 Crypto Trade Volume 61% Higher Than 2019 – Bitcoin Derivatives Volumes ClimbExchanges reported that ‘Black Thursday’ saw a record $70 billion in global trade volume,…

Bitcoin Price Suddenly Drops Below $7K, Crypto Market Under $200B

Bitcoin Price Suddenly Drops Below $7K, Crypto Market Under $200B

Bitcoin (BTC) price dropped nearly $200 in minutes on April 10 to slide below $7,000 for the first time in four days.Data from Coin360 and Cointelegraph Markets showed BTC/USD now dropping below the tight $400 corridor between $7,100 and $7,410 where it had stayed for most of the week.The sudden drop from $7,150 to $6,915 also formed the most volatility seen in recent days and, at press time, Bitcoin is trading around $6,960.Cryptocurrency market daily overview. Source: Coin360BTC price dives going into the weekend — $6.3K next?As previously expected by some traders, the small price rise did not occur from the $7,200 levels going into Friday. However, the $6,900 has shown to be the first line of defense for the bulls. If this level fails to hold, then trader Michaël van de Poppe expects low $6Ks next.“We might be getting a liquidity tap towards $7,500-7,700 area, after which I’m expecting a sharp decline,” Van de Poppe said late on Thursday.He added:“If we lose $6,900 area though, I’m assuming we’re going straight towards $6,300.”Bitcoin 1-day price chart. Source: Coin360All markets still gripped by fearMeanwhile, the Fear & Greed Index shows a reading of 15, which means that the cryptocurrency market is still in “extreme fear.”Comparatively, the traditional stock market is experiencing “fear” with a reading of 43, according to CNN Money, as markets bracing for a volatile close to a wild week, which saw trillions in new stimulus money announced by the U.S. Fed. Fear & Greed Index. Source: alternative.meThe total market capitalization has also slid below $200 billion. Also, despite their halving events this week, Bitcoin Cash (BCH) and Bitcoin SV (BSV) are down nearly 10% while Ether (ETH) dropped roughly 5.3%. Bitcoin’s market dominance is 64.1%.Keep track of top crypto markets in real time here