Crypto moves – Bitcoin and Ether down; Robinhood cuts workforce; Eyes Revolt Expand Crypto Wallets

RIYADH: The trading of Bitcoin, the world’s leading cryptocurrency, was down on Wednesday, down 4.42 percent to $38,816 as of 10.45 am Riyadh.

Ether, the second most traded cryptocurrency, was priced at $2,879, down 4.26 percent, according to data from Coindesk.

Mining Report Shows Bitcoin Electricity Consumption Dropped 25% in Q1 2022

Bitcoin mining is energy consuming (file/Shutterstock)

The Bitcoin mining industry continues to improve its sustainable energy use and technology efficiency, according to a recent Bitcoin Mining Council, or BMC, report.

At the end of May last year, Elon Musk, founder and CEO of SpaceX and Tesla, persuaded Bitcoin industry leaders to form BMC and in mid-July launched its public services and website.

The BMC survey for the first quarter of 2022 presents three metrics that include: “electricity consumption, technological efficiency, and sustainable energy mix.”

BMC researchers were able to survey nearly 50 percent of the network’s hash power on March 31, 2022.

The survey indicated that 64.6 percent of all respondents benefit from electricity with a sustainable energy mix, reports.

Based on this data, it is estimated that the sustainable electricity mix for the global bitcoin mining industry is now 58.4 percent or has increased by approximately 59 percent year-over-year, from the first quarter of 2021 to the first quarter of 2022, making it one of the BMC in the report “The World’s Most Sustainable Industries”.

Michael Saylor, CEO of Microstrategy – a US company that provides business intelligence, mobile software and cloud-based services – also made a statement in BMC’s fourth quarterly report.

“In the first quarter of 2022, hash rate and security related to the bitcoin network improved by 23 percent year over year, while energy use decreased by 25 percent,” said Saylor.

He added, “We have observed a 63 percent year-over-year increase in efficiency due to advances in semiconductor technology, the rapid expansion of mining in North America, China Exodus, and global adoption of sustainable energy and modern bitcoin mining technologies.”

Robinhood to cut down its workforce

(Robinhood Markets)

Retail trading platform Robinhood Markets Inc. , on Tuesday, it will lay off about 9 percent of its full-time employees, sending its shares down 5 percent in the expanded trade.

The company, which reports its quarterly results later this week, said the rapid growth in the number of employees has led to some dual job roles and positions.

As of December 31, the company had a total of 3,800 employees.

Robinhood’s easy-to-use interface has been a huge hit among young investors who are trading from home on cryptocurrencies and stocks like GameStop Corp. During the COVID-19 pandemic.

“We will continue to accelerate our product momentum through 2022 and introduce major new products across brokerage, cryptocurrency, and spending/savings,” CEO Vlad Tenev wrote in a blog post.

Eyes of the Revolution Expansion of Cryptocurrency Portfolios, Mortgages


Digital banking platform Revolut is expanding into decentralized cryptocurrency wallets and is also eyeing the mortgage sector, the company’s CEO said, as the London-based company pursues its strategy of becoming a so-called “super app.”

Revolut, which currently offers payments, cryptocurrency trading, savings accounts and stock trading services, is focused in the short term on expanding its remittance offerings and start buying now, paying later.

CEO Nick Storunsky said the fintech company has more work to do to become a one-stop shop for financial services.

“For example… decentralized wallets, enabling cryptocurrency deposits and withdrawals [and] “Loan and loan…this is another piece that we are missing and we are working on,” he told Reuters.

He added that it was also important for the company to consider expanding into mortgages because home loans are “a very important part of consumer financial life.”

Fidelity to Allow Allocating Retirement Savings to Bitcoin in 401(k) Accounts

Fidelity Investments said Tuesday that it will allow individuals to put a portion of their retirement savings into Bitcoin through their 401(k) investment plans, becoming the first major retirement plan provider to do so.

The family-controlled asset manager said MicroStrategy, a major backer of Bitcoin, will be the first employer to use the new product, which will be made available to other employers by the middle of the year.

With the new offer, employees will be able to invest in Bitcoin by calculating the digital assets under the basic lineup of their 401(k) plans, Fidelity said.

Fidelity also said that Newfront, a retirement services advisory firm, has indicated that DAA will help meet a growing need among its client base.

Fidelity said that sponsors of the plan will be able to decide on employee contributions to the DAA and place limits on the exchange of those contributions in Bitcoin, adding that additional updates on the new offering will be provided in the coming months.

(with input from Reuters)

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