Cryptocurrency News by Bitcoin Romania, June 2022

Wed | 15.06.2022

FX & Currency

Cryptocurrency News by Bitcoin Romania, June 2022

In this cryptocurrency era, things are moving faster than ever, so you'd better keep one eye constantly on the market changes. Find out what are the top performance leaders in the past 5 days.

Ukraine's New Fundraising Platform Supports Over 100 Cryptos

Ukraine's President Volodymyr Zelenskyy has launched a new fundraising platform, dubbed United24, which accepts donations in more than 100 different cryptoassets.

The list of supported cryptoassets ranges from popular cryptos like bitcoin (BTC), ethereum (ETH), binance coin (BNB), to recently launched apecoin (APE) and some smaller cap decentralized finance (DeFi) coins like Hector Finance's HEC, StreamCoin's STRM, and Enzyme's MLN, according to the platform's website.

Besides the extended list of supported coins, another feature that makes this new initiative different from Ukraine's previous fundraising attempts is that it enables donors to choose where they want their funds to be spent.

As of now, interested users can choose among three areas: defense and demining, humanitarian and medical care, and reconstruction of Ukraine, as it stands on the website.

What are the environmental impacts of cryptocurrencies?

Like the mining industry, the cryptocurrency mining industry has serious environmental ramifications as a result of the energy-intensive process through which coins are created. But unlike the mining industry, the cryptocurrency industry may start changing the way it operates.

Here's what you need to know about why cryptocurrency mining is unsustainable and the new developments that might change that.

What's the environmental impact of cryptocurrency?

To understand the environmental impacts of cryptocurrency, we must first understand how new coins in a cryptocurrency are created. Because cryptocurrencies aren't regulated by a central authority, the blockchain relies on users to validate transactions and update the blockchain with new blocks of information. To protect against bad actors attempting to manipulate this new information, these blockchains need to be very difficult and costly to verify. Thus proof of work was implemented into most cryptocurrencies.

Proof of work is a consensus mechanism that allows users to validate cryptocurrency transactions by solving a complicated mathematical problem. The first person that solves the puzzle validates the transaction and is awarded a fixed amount of cryptocurrency. Then the cycle starts again. It's the most widely used consensus mechanism.

Record Inflows into Bitcoin as 'Safety'-Seeking Investors Buy the Dip; Ethereum Outflows Double

Investors in funds backed by bitcoin (BTC) appear to be taking advantage of the lower prices, adding close to USD 299m to such funds last week, or the most this year, while ethereum (ETH) outflows more than doubled.

Per crypto investment and research firm CoinShares data, the inflows into cryptoasset-backed funds last week were the largest seen so far this year, led by almost USD 300m that flowed into BTC funds. However, due to outflows of nearly USD 27m from ethereum (ETH) funds and outflows of USD 5.3m from solana (SOL) funds, the net inflows for the week ended at USD 274.2m. A week earlier, BTC inflows reached USD 45m, while ETH saw outflows of almost USD 13m.

The BTC inflows are “a strong signal” that investors saw the collapse of terraUSD (UST) and the Terra network’s native LUNA token as a buying opportunity, analysts at CoinShares wrote. The strong inflows were also described as a flight to “relative safety” within the crypto ecosystem. In the past week, BTC dropped 12%, while other coins from the top 10 list dived 16%-28%. Still, some capital did find its way to so-called multi-asset investment products, with USD 8.6m in inflows.

The positive outlook was not evenly distributed geographically. While North American investors were responsible for inflows of USD 312m for the week, a net outflow of USD 312m was seen from European investors, the data showed.

Michael Saylor, MicroStrategy stick to their guns on Bitcoin

MicroStrategy CEO Michael Saylor says the company will not have a margin call on their US$205 million Bitcoin-backed loan after their crypto holdings dropped by over US$1 billion over the past week, according to data from CoinGecko.

Fast facts

When MicroStrategy adopted a Bitcoin (BTC) strategy, it anticipated volatility and structured its balance sheet so that it could continue to hold through adversity, Saylor said on his verified Twitter page.

The company is the largest publicly traded holder of Bitcoin, and has a three-year US$205 million term loan with Silvergate Bank.

In May, Saylor tweeted that MicroStrategy has 115,109 BTC that it can put up as additional collateral to avoid a margin call, as long as the price of BTC stays above US$3,562.

The dot-com era billionaire has continued to be vocal in his support of Bitcoin, and on Tuesday, he told his 2.5 million followers to “stack sats and stay humble” in a tweet, referring to market lingo to accumulate more Bitcoin.

Most of MicroStrategy’s assets are in BTC, and its stock price has moved in tandem with its prices, down over 70% in the past six months.
The company had about US$2.2 billion in total debt, US$44 million in annual interest expenses, and its business revenues have fallen 3% year-over-year, according to its latest quarterly report.

NRCC Member Bitcoin Romania

Bitcoin Romania organises weekly breakfast meetings for people who are interested in anything related to cryptocurrency, and Bitcoin in particular.

The goal of the meeting is to explain and inform: How does it work? Is it safe? Payment or investment tool? What is mining? Does it affect the environment?

Get up to date and increase your knowledge on cryptocurrency, and register at info@nrcc.ro to reserve your place at one of the breakfast meetings. Every Friday, 09.30-10.30 hours, Athenee Palace Hilton. There are no costs involved for attending.

This article is provided by our Cryptocurrency Partner, Bitcoin Romania.

Share this on: