CBX Weekly Newsletter // 29 April 2020
- Bitcoin Eyes $8K After Longest Winning Run in 8 Months
- World Economic Forum Shares Roadmap for Deploying Blockchains in Logistics
- Chinese City Known for Bitcoin Mining Seeks Blockchain Firms to Burn Excess Hydropower
Bitcoin Eyes $8K After Longest Winning Run in 8 Months
Bitcoin’s bulls seem to be having a break for now before breaking $8K. However, after losing over half its value this year after the Covid-19 sell-off, Bitcoin has managed to recover and had the longest run of daily gains since last summer.
At press time, BTC is trading in a sideways manner around $7,730 on major exchanges.
The low volume in trading comes a day after prices hit an almost 7-week high of $7,800. Notably, the cryptocurrency has pushed out modest gains in each of the last seven days. Bitcoin last rallied for seven straight days in July 2019.
Meanwhile, most analysts and investors are anticipating an extension of the recent uptrend, possibly to $10,000, in the days leading up to the mining reward halving, due on May 12.
Even though BTC seems to be breaking $8K soon, some analysts, however, believe that the cryptocurrency could witness a pullback before breaking above $8,000 in a convincing manner.
Alternatively, the bullish scenario will be a high-volume move above $8,000. Which could open the doors for the cryptocurrency to see 5 digits again to $10,000 ahead of halving.
World Economic Forum Shares Roadmap for Deploying Blockchains in Logistics
The World Economic Forum (WEF) is pitching blockchain as the savior of failing global supply chains and says its blockchain deployment toolkit, published Tuesday, according to cryptocurrency news site coindesk.
The 244-page report includes checklists, guided questions, explainers and risk assessments addressing tax concerns and data privacy; forming a consortium, its ecosystem and governance; public vs. private chains; cybersecurity; interoperability; and digital identity, among other concerns. The toolkit is less a barometer for deciding if blockchain fits one’s scenario than it is a guide to implementing DLT within that scenario effectively.
The toolkit frames blockchain as a natural technological evolution for companies and governments emerging from this public health crisis.
“The case for blockchain is stronger as the COVID-19 pandemic underscores the need for more resilient global supply chains, trusted data, and an economic recovery enabled through trade digitization,” the report’s authors wrote.
Chinese City Known for Bitcoin Mining Seeks Blockchain Firms to Burn Excess Hydropower
A city in China known as the world’s bitcoin mining hub is publicly encouraging the blockchain industry to help consume excessive hydroelectricity ahead of the summer rainy season.
Ya’an, one of the many cities in China’s mountainous Sichuan province, a region that’s believed to account for over 50 percent of Bitcoin network’s computing power, has recently issued a public guidance to seize the “strategic opportunity of the blockchain sector” so that they can help consume the area’s excessive hydropower electricity.
The Ya’an city’s guidance also emphasized that electricity to be used by blockchain firms should come from generated power that’s being connected to the state grid.
In general, China’s Sichuan region has the issue of excessive hydropower electricity being wasted every year during the rainy summer season.
To show an example, the prefecture government of Garze, another mountainous area in Sichuan, said before that hydropower plants in the area usually generate 41.5 billion kWh of electricity in a year out of which a total excess of 16.3 billion kWh was sent to waste.
As such, the spring and summer season is usually a welcome time of year for bitcoin mining businesses in China as there will be abundant and cheap electricity resulted from the hydropower excess.
But this year could be different because bitcoin’s stagnating price movements ahead of the network’s halving event due in 2 weeks have cooled down bitcoin miners’ expansion investment.
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