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Oluwademilade Afolabi is a freelance writer and editor passionate about blockchain technology and the health industry. He is a 6th year medical student, and has worked with various companies and blogs since the blockchain revolution began.

Oluwademilade Afolabi

There has been a lot of buzz about non-fungible tokens (NFTs) and the Metaverse for some time now. However, many people are unaware that m NFTs and the metaverse may soon be inseparable. But isn't an NFT simply a work of digital art? How will NFTs keep increasing as we spend more time in the metaverse? No

<img class="aligncenter" src="https://itsblockchain.com/wp-content/uploads/2021/08/RP1_JB_02140r.jpeg" alt="The Value of NFTs Will Increase as We Spend More Time in the Metaverse" width="647" height="485" />
<h2>What is the metaverse, and what are non-fungible tokens (NFTs)?</h2>
The metaverse is a virtual and augmented reality network. It is a networked virtual reality in which people can do many things. For example, you'll be able to enter the metaverse and search for what you're looking for in a 3D virtual world.

To put it simply, NFTs are digital tokens existing on a blockchain (Ethereum blockchain in most cases). Each NFT has its identification code and metadata, distinguishing it from other NFTs and data on the blockchain. As a result, it is not possible to duplicate NFTs. With NFTs, people can buy and sell things more quickly with less risk of fraud by converting physical assets into tokens. NFTs, like Bitcoin and other cryptocurrencies, contain information about who owns them, allowing owners to identify and transfer easily.
<h2>What do the metaverse and NFTs have in common?</h2>
The Metaverse's believers foresee a virtual reality where everyone can create their own "<a href="https://www.cryptoknowmics.com/news/adidas-to-launch-metaverse-avatar-creation-platform">avatar</a>," or character. You can go to sports games and concerts, shop, play games, talk to other people, and do more with this virtual character. Everyone with Internet access will be able to use the metaverse, but not everything in it will be free. People will always have to pay for anything they want in this virtual reality world. It will also cost money to build all of the various parts of the metaverse, like interactive games.

Just imagine, how will people in the metaverse be able to keep track of all these purchases and transactions? How will prices be set for things for sale in the metaverse? This is the exact point where NFTs come into play. In theory, owners could use them for anything. However, digital art trading has been their main use so far. They will replace traditional money to give value to things in the metaverse. They are a way to give value to digital objects because they can show who owns a certain object. They also prove, for example, that someone owns a piece of<a href="https://www.forbes.com/sites/bernardmarr/2022/03/23/how-to-buy-land--real-estate-in-the-metaverse/"> real estate in the metaverse</a> or is allowed to go to a virtual concert. NFTs are also used as rewards in a lot of metaverse games.
<h2>Call of Action for Investors</h2>
Investors can use several cryptocurrencies to buy these NFTs. As the metaverse grows, investors should do well to buy these cryptocurrencies. Cryptocurrencies are used as money in the metaverse, and each platform in the metaverse has its token. For example, you can invest in the metaverse with MANA, Decentraland's native token.

Investors should keep an eye on what's going on in the metaverse. With this in mind, they can make better decisions about which cryptocurrencies to buy and how to reinvest them as NFTs.
<h2>Why Will NFTs Increase in Value?</h2>
Experts in the crypto industry think that NFTs will be the fabric and key to the growth of the metaverse. As a result, there is no doubt that NFTs increase in value. The following are the reasons that support this.
<h3>NFTs Will Help To Create An Open and Fair Economy</h3>
Many metaverse platforms use a "play-to-earn" model (<a href="https://www.cryptoknowmics.com/news/how-play-to-earn-p2e-is-impacting-online-gaming-and-the-crypto-community">P2E</a>), which predicts that interactive games will be a big part of the metaverse. The blockchain runs<a href="https://www.cryptoknowmics.com/news/how-play-to-earn-p2e-is-impacting-online-gaming-and-the-crypto-community"> P2E games</a>. They give rewards and incentives to players based on how much they play and what they do in the game.

Users can earn cryptocurrency based on how they play games (the type of cryptocurrency earned will depend on the metaverse). Then, they can trade the cryptocurrency for cash, NFTs, or other assets on the exchange.

This gives room for an open and fair economy since players will own all of their assets instead of having them controlled by a game entity. The importance of NFTs in the metaverse cannot be overemphasized in this aspect. As a result of this, NFTs Will increase in value over time.
<h3>Extension of community, identity, and social experiences</h3>
NFTs will also help make the metaverse a better place for community, identity, and social interactions. For example, having a certain NFT can show support for a certain project. It can also show how they feel about the real or virtual world.

People can then get together to form communities where they can share their experiences. For example, a player's NFT avatar is a part of who they are. One's avatar can be used to create a virtual identity and gain access to special things.
<h3>Virtual property ownership</h3>
The metaverse will rely heavily on virtual lands and spaces. Users will be able to demonstrate ownership and develop their real estate as they see fit using NFTs. As a result, users can sell their land for a profit, rent it out, host social events, and build shops on existing land.

<a href="https://decentraland.org/">Decentraland</a> exemplifies the metaverse's real estate market. For example, it recently hosted a <a href="https://www.cryptoknowmics.com/news/high-end-brands-participate-in-virtual-fashion-show-at-decentraland">virtual fashion show</a> with Adidas, with designs auctioned off as NFTs. Musicians can also use virtual real estate to hold concerts and sell tickets and merchandise.
<h2>How Does NFT Increase in Value?</h2>
NFT's value increase with the age-long law of supply and demand. As more companies, brands, and celebrities release digital versions of their products and services in NFTs, there is an expectation for demand for these to rise in both the short and long term.

They gain value over time because their utility cannot be questioned, unlike any digital file on the internet. They make digital files scarce by converting them into digital assets while proving their authenticity. Traditional assets, such as the stock market or the financial market, frequently lose value due to a listed company's external and internal environments and inflationary pressures. However, this does not occur with NFT assets.

Demand, speculation, transaction history, liquidity premium, prizes, or discounts on a brand's products and services all influence the price of an NFT. Furthermore, they have the potential to completely transform the art world because this new technology allows for direct and broker-free payment for an artwork. It also pays digital artists royalties on future sales of their NFT artworks. As a result, artists can directly benefit from the increasing value of their works and products.

The Value of NFTs Will Increase as We Spend More Time in the Metaverse

The government of Kazakhstan has amended how individuals and businesses register to mine cryptocurrency. The new regulations are part of a broader crackdown on the mining industry in Central Asia, where lack of electricity has been blamed on the influx of miners.

<img class="aligncenter" src="https://thediplomat.com/wp-content/uploads/2021/09/sizes/td-story-s-2/thediplomat_2021-09-15-6.jpg" alt="Kazakhstan: Why Crypto Miners Need Amendment of Registration Rules" width="590" height="393" />
<h2>Crypto Miners to File Quarterly Reports with Kazakhstan Authorities</h2>
<a href="https://www.gov.kz/memleket/entities/mdai/about/structure/people/13034?lang=en">Bagdat Musin</a>, Kazakhstan's digital development minister, has made it more difficult for people who mint digital coins to register and report. If a company or legal entity wishes to mine cryptocurrency, it must notify regulators at least 30 days in advance. The same is true for businesses and those who provide services to them.

Cryptocurrency miners must now provide their company's name, registration number, contact information, bank details, and IP addresses. They must also explain how much energy their mining facilities consume, what investments they intend to make, and how many employees they employ.

Copy of customs declarations or other proof of ownership of mining equipment, proof that the people working on the project live in Kazakhstan, information about the location of the mining farm in Kazakhstan, and a technical description of the hardware's connection to the power grid.

Every three months, the government requires similar reports from existing miners and the companies that keep them running. In addition, mining companies that decide to stop operations must notify the state within ten days.
<h2>Why Were The Crypto Mining Rules Amended?</h2>
The government in Nur-Sultan is cracking down on cryptocurrency mining. This comes a year after Kazakhstan became a haven for miners seeking to avoid China's mining crackdown. The government has been pursuing people who mine Bitcoin illegally. However, even legal Bitcoin farms have experienced power outages due to a lack of electricity.

Due to shortages, some companies have already left the country, and dozens of mining facilities have been closed this year. Auditors have also been working to close tax loopholes that some miners have exploited. Simultaneously, the government is preparing to raise taxes on miners who remain in Kazakhstan, with the tax tied to the value of the digital currency they mine.
<h2>Consequences of Cryptocurrency Mining Chaos In Kazakhstan</h2>
The main goal of cryptocurrency is to keep governments and banks out of the payment system. With this, they can't charge unnecessary fees. However, some countries and governments refused to allow people to use the system on their territory. For example, the government of Kazakhstan did not allow cryptocurrency payments until 2018. 

Several Kazakhstani experts gave the following reasons for the ban: It erodes the state's monopoly on making money and reduces demand for local currency, causing it to lose value. It also makes it more difficult for central banks to control monetary policy. Furthermore, it reduces or eliminates the number of financial middlemen. 

Akishev, the head of the National Bank of the Republic of Kazakhstan, strongly agreed with the above explanations. He claims that because the system is completely unpredictable, criminals will likely use it to launder money.

Other consequences include the following:
<h3>Negative impact on electricity</h3>
Cryptocurrency has been tagged a "killer of electricity." Bitcoin, a popular cryptocurrency, consumes 110 terawatt-hours of electricity per year. This is equivalent to 0.55 percent of global electricity production. This is enough to power a small country like<a href="https://www.cryptoknowmics.com/news/malaysian-police-destroys-1773-bitcoin-asic-miners-amid-electricity-theft-crackdown"> Malaysia</a> or Sweden for an entire year. In June 2020, Kazakhstan's President Kassym-Jomart Tokayev legalized the "digital code" in the country.

After China banned cryptocurrencies in May, the market exploded. Because the activity consumes a lot of electricity, it is becoming more popular in areas where electricity is inexpensive. For example, one kilowatt-hour of electricity costs about five cents in Kazakhstan, while it costs nine to eleven cents in Russia, China, and the United States. 

In recent months, the amount of energy used to mine Bitcoins in Kazakhstan has increased. As a result, Kazakhstan ranks second in the global Bitcoin mining market, trailing only the United States.
<h3>Political Instability </h3>
Before January 2022, Kazakhstan was a politically stable country. This was another reason for the migration of many "Bitcoin mining" there. To end the protests, the government shut down the internet on January 5, 2022. 

However, the country became unstable when the government raised oil prices in January 2022, causing a lot of protests. As a result of this, the country became insecure. In addition, this government action harmed Kazakhstan's Bitcoin mining industry, accounting for 15–20 percent of the world's Bitcoin mining capacity. 

At this time in January, the price of Bitcoin fell below $43,000 between January 6th and January 8th. Different sources also claim that there are concerns about cryptocurrency mining, even though the country's political situation remains unstable. In addition, some believe that because fossil fuels generate two-thirds of Kazakhstan's electricity, this industry could relocate to the western part of the United States, specifically Texas. 

Which option is better for the environment? Even though there is an expectation for the mining industries to relocate to the west, where electricity is cheap and renewable, the price of electricity is expected to rise even further, reaching $100,000 by the end of the century.
<h3>Price fluctuations</h3>
The innovations of the twenty-first century have significantly altered our lives. For example, Bitcoin mining has simplified our purchasing power. Bitcoin is an electronic currency used to buy things online all over the world and consumes so much electricity that it is said to be enough to power a small country like Sweden for a year. Moreover, its value has increased dramatically since its inception in 2007. The value is more than $30,000, and some believe it will be worth $100,000 by the end of the century. 

Kazakhstan has some of the most affordable electricity rates in Central Asia and was able to continue using Chinese cryptocurrency practices after China banned them. However, cryptocurrency mining will likely shift to western countries, particularly Texas. This is because of the low cost of electricity generated by renewable energy sources. If mining moves to the United States, the cost of renewable energy will rise, potentially leading to changes in how energy is regulated and taxed. This could result in price fluctuations.

Kazakhstan: Why Crypto Miners Need Amendment of Registration Rules

Infinite Arcade, a web3 platform, has released its third batch of Gamer non-fungible tokens (NFTs). Players use these tokens as keys to unlock <a class="editor-rtfLink" href="https://www.cryptoknowmics.com/news/how-play-to-earn-p2e-is-impacting-online-gaming-and-the-crypto-community" target="_blank" rel="noopener">play-to-earn</a> (P2E) gameplay. The first two batches of <a class="editor-rtfLink" href="https://opensea.io/collection/genesis-nft#:~:text=GEnesis%20NFTs%20are%20a%20special,a%20diverse%20culture%20of%20living." target="_blank" rel="noopener">Genesis</a> NFTs quickly sold out, and the final sale for players on the whitelist has begun.

A month ago, the release of Infinite Arcade was to help developers and creators connect with players in a thriving marketplace economy. Infinite Arcade, like a metaverse arcade, has many games. Users can own a piece of the ecosystem and profit from its expansion. In addition, they can receive rewards for contributing to the game and community.

At the moment, players can enjoy up to 15 live play-to-earn (P2E) games. Furthermore, there would be an addition of approximately 200 games to the platform in the future. In addition, players can earn TIC, which is the Infinite Arcade's utility token. However, the primary goal of the P2E system is not to make money; it is merely a tool. The overall goal is to create an environment where people can play their favorite games, meet new people, and have a good time.

<img class="aligncenter" src="https://mobidictum.biz/wp-content/uploads/2022/02/Infinite-Arcade-Coda.jpg" alt="Infinite Arcade Releases the Last Sale of The Gamer NFTs - The End?" width="634" height="357" />
<h2>Differences between Infinite Arcade and other Blockchain Games</h2>
Infinite Arcade differs from other blockchain-based games in three ways: it is familiar, has many games, and is inexpensive. There is no need to spend hours learning how to play the platform's casual games. You'll soon be able to play hundreds of them on the platform that doesn't cost much, doesn't require much work, and has a good token, NFT, and reward system.
<h2>Infinite Arcade Roadmap</h2>
There are 3 billion mobile game players and 100 million game developers on the Infinite Arcade market. According to the platform's roadmap, they will release 50 games in the second quarter, 100 games in the third quarter, and 200 games in the fourth quarter of this year. Additionally, anyone who creates casual games can submit a game to the platform.
<h2>Infinite Arcade Partnership</h2>
<a class="editor-rtfLink" href="https://coda.io/" target="_blank" rel="noopener">Coda</a>, a self-publishing platform with approximately 15,000 studios, has partnered with Infinite Arcade. As a result, more than 10 million people can now participate in Infinite Arcade with this collaboration.

Infinite Arcade is also in partnership with several scholarship-giving guilds. For example, <a class="editor-rtfLink" href="https://ngg.io/" target="_blank" rel="noopener">Nexxt Gaming Guild</a> (NGG) awards many scholarships to help people get into the next generation of video games. Scholars also have access to various benefits, including regular giveaways, live streams, educational content, exclusive spots, beta testing, etc. 

To become an NGG scholar, you must first join the NGG Discord platform and complete the necessary steps. Scholars can earn between $100 and $1,500 per month, depending on how well they perform in games and their overall rank. Because it is fast, scalable, and has low transaction fees, the Infinite Arcade platform is built on Polygon's mainnet. Polygon is a layer-2 solution that combines the best features of Ethereum and sovereign blockchains.

Infinite Arcade employs a dual-token model (TIC). TIC is a tradeable ERC20 token that players can earn during their daily two-hour play limit. It is available for everyone from May 11. Its other token, ARC, has a 3 billion unit supply and is used for utility governance. In the third quarter of this year, it will be available through a decentralized exchange.

Players cannot earn TIC unless they buy a Gamer NFT from a market like <a class="editor-rtfLink" href="https://www.cryptoknowmics.com/news/openseas-official-discord-channel-hacked-phishing-links-posted" target="_blank" rel="noopener">OpenSea</a>. Ten thousand of these NFTs have already been minted and sold out. The issuance of the final batch of 6,666 NFTs for whitelisted players will start soon.
<h2>Could This Be The End?</h2>
Of course not. Infinite Arcade has partnered with other platforms to support the next generation of video games. Hence, they are not leaving anytime soon. Also, there are still a few more games coming before the year ends. According to the Infinite Arcade roadmap, there will be a release of 50 games in the second quarter of 2022 and 200 games in the fourth quarter.
<h2>List of NFT Arcade Games in 2022</h2>
<h3>Chimeras </h3>
This Metaverse NFT game employs blockchain technology. To become a Great Mage in this game, you must look after your properties, gather resources, fight, trade, and earn money in the form of CHIM and NFT.

Taking on the role of the Great Mage in the Sea of Eternity, the player is in charge of a long-lost island. To become wealthy and successful, the player must look after the people on the island and create a domain in any way possible.

The Great Mage is dealing with a complicated and tricky problem. Alator creates Chimeras in the past to help him build the world. They must now help the Great Wizard in keeping the island in order.
<h3>Kingdom Karnage</h3>
Kingdom Karnage is a digital card game available for both PC and Android. All game assets are tokenized-NFTs bought with Enjin Cryptocurrency that are removable. In addition, Kingdom Karnage now exclusively uses Enjin's Jumpnet, which helps to eliminate gas fees.
<h3>Oceanland</h3>
Oceanland is a blockchain-based game that is a hybrid of crypto-economics and gaming. Players earn money by guiding the game's main character through the levels. Oceanland integrates various aspects of blockchain technology by combining several crypto assets with DeFi and NFT. In Oceanland, players get rewards for obtaining items the main character requires.
<h3>Binapet</h3>
Binapet is a full-fledged platform for the Digital Creatures Universe. Binance Smart Chain (BSC) currently powers it. Binapet is a platform that combines games with non-fungible tokens (NFTs) and decentralized yield farm software.

Besides entertainment, joining Binapet could also help you earn a lot of money. The developers are working toward creating a world for millions of people where playing NFT and blockchain-based games is easy and enjoyable. ​

Binapet will be the first ecosystem to merge the best elements of games and digital collectibles, transforming it into a virtual world populated by digital creatures. Binapet also allows players to use their pets to fight, gather, grow, and earn money.

Infinite Arcade Releases the Last Sale of The Gamer NFTs - The End?

The introduction of the Metaverse gives the creator economy a new way to grow. This is especially since decentralized platforms and crypto integrations offer creators another way to earn money. However, in reality, the fact that big, centralized Web2 companies such as Meta dominate the Metaverse does not preclude the presence of independent creators.

The average creative person doesn't have it all. Streaming services have made it more difficult for musicians to make a living. In addition, unrelenting creative fatigue has harmed the variety and quality of creator-focused content across multiple markets. Today's creators often chase after ever-changing rules about making money on various platforms. As if that is not enough, it's also difficult to find a sponsor.

People have concerns about the power of these major players in the Metaverse and<a href="https://www.cryptoknowmics.com/news/coindcx-investment-arm-will-put-13m-into-web3-startups"> Web3</a> space. However, it is not because they dislike corporations. Instead, it is related to the liberties and flexibility of this new creator economy. Unfortunately, despite the boom of the creator economy in the Metaverse, Big Tech is not supporting it. For example, there is a recent announcement that the sales of virtual assets in<a href="https://www.oculus.com/horizon-worlds/"> Horizon Worlds</a> will reduce by nearly half. As a result, it's no surprise that independent artists and content creators leave the Metaverse for good.

<img class="aligncenter" title="Metaverse Creator Economy" src="https://images.adsttc.com/media/images/61d4/1d53/3e4b/3155/2e00/0029/large_jpg/1_OREgxeSFXE31kvJUgpTrHg.jpg?1641291087" alt="Why Big Tech's Regime Won't Support the Metaverse's Creator Economy" width="648" height="327" />
<h2>Why is Big Tech Not Supporting the Explosion of the Creator Economy?</h2>
<h3>Pricing and Fees</h3>
With platforms such as Meta's, sensible prices will become a thing of the past. If creators have to hand over half of their earnings to Big Tech, there is a high chance that Metaverse projects like<a href="https://www.battlefly.game/"> BattleFly</a>, will not sell their NFTs at low prices anymore.
<h3>Interoperability</h3>
In addition to pricing and fees, interoperability is another major reason Big Tech won't support the creator economy. Currently, most Metaverse studios only emphasize interoperability in their marketing. As a result, there is a division in the actual developer scene among different dominant projects with little interest in cooperating with each other.
<h2>Metaverse Economy </h2>
Simply put, the "metaverse economy" refers to the real value that has been assigned to digital assets due to the mistaken belief of their scarcity. 

Unlike the real economy, which has its basis on finance, the metaverse economy is solely based on imitation and unrelated to real scarcity. Therefore, it only has worth because we believe it does. However, the virtual world's economy is similar to the real world's economy. It will go through economic cycles similar to the real and financialized economies. However, the changes are more significant. In other words, the ups and downs of the real-world economy are magnified and exaggerated in the metaverse. So, if they can persuade enough people to believe in them, markets in the metaverse can defy supply and demand.

Because the metaverse is growing and expanding daily, investors and businesses must understand its complexities. But, more importantly, they need to know how to make money through it.
<h3>The Reliability and Linkage of the Metaverse Economy to the Real Economy</h3>
Even though the metaverse appears to have its economy at first glance, it is still has a connection and dependent on the real economy. All metaverse deposits and withdrawals are fundamentally linked to the real economy. Fiat currencies can buy virtual assets, and virtual assets have real-world value. Businesses should understand that their activities in the metaverse will always have a connection to the real economy and will be a continuation of what they do in the real world.

For example, a real estate investor may own several properties in various metaverse neighborhoods. However, if there is a real-world financial crisis, investors and businesses will sell their assets and withdraw money from the economy to get back on their feet. This real-world economic shift will impact the metaverse economy. Thus, lowering the value of metaverse properties and currencies and potentially halting some metaverse projects entirely. Also, people who use or live in the metaverse will see less trade, population, and activity, which is essentially what is happening in the real world.
<h3>Creativity in Businesses of the Metaverse Economy</h3>
In the metaverse, there are limitless possibilities. The most important factor in a business's success is its ability to develop innovative and creative projects or solutions. If businesses want their metaverse economies to be stable and long-lasting, they must make their virtual space a desirable location. This implies that businesses should not create anything in the metaverse that could be viewed as a tradable asset. The project must be superior to every other real or fictitious asset in the same space, whether real or fictitious.

To stand out and attract people's attention in the metaverse, it may be necessary to create something no one has ever seen or provide a subtle way to differentiate yourself from your competitors. For instance, a well-designed, aesthetically pleasing, and interactive metaverse game that employs storytelling, community, experience, and brand could be creative and successful. On the other hand, adding a specific currency such as fiat currency or stablecoins, utilizing a well-known cryptocurrency such as Bitcoin or Ethereum, or releasing its token could be detrimental to the success of a project, given that many games already implement these features. Instead, determine a creative method for managing the game's currency. This could be as simple as making the game free and offering loyalty points that players can exchange for other items. In the metaverse economy, a company's best chance of survival will ultimately depend on its ability to think creatively.
<h3>Taking advantage of the metaverse economy</h3>
The metaverse is a rapidly expanding alternate universe that has piqued the public's interest. This means that investors and businesses should be on the lookout for it. Even though the metaverse economy has many potential and opportunities, it takes skill and knowledge to navigate it and set up a profitable business. To be successful in the metaverse economy, keep in mind that the real world influences this new virtual world. It is also important to note that there is a need for collaboration for survival and that you must be creative to stand out from the crowd.
<h2>Decentraland Wearables</h2>
Wearables are clothing, accessories, and body parts that a Decentraland avatar can use to alter their appearance. Decentraland allows users to create their wearables in addition to the standard wearables that everyone can use. Both brands and users can create these customizable wearables. They can give them away as prizes in contests. Wearables used as NFTs can be purchased, sold, or traded on<a href="https://market.decentraland.org/"> Decantraland's marketplace</a>.

There are more and more things to wear, such as cyberpunk sneakers, stylish jackets, and amusing tophats. These fashion options offer users an exciting and meaningful way to invest in and express themselves. In addition, Decentraland also enables content creators to monetize their work by allowing wearables to be "minted" and sold as NFTs.

Why Big Tech's Regime Won't Support the Metaverse Creator Economy

Former Twitter CEO<a href="https://www.cryptoknowmics.com/news/elon-musk-or-jack-dorsey-who-is-more-important-to-the-future-of-bitcoin"> Jack Dorsey</a> had some harsh words for<a href="https://www.diem.com/en-us/"> Diem</a>, Meta's cryptocurrency project. In a recent interview, Dorsey told MicroStrategy CEO Michael Saylor that Meta (Social Media) CEO Mark Zuckerberg should have focused on the Bitcoin ecosystem rather than the stable coin project.

The intention was for Diem to be a stablecoin backed by less volatile assets such as national currencies and commodities. This would help to make cryptocurrencies less volatile than they are currently. Unfortunately, despite extensive rebranding efforts, congressional scrutiny, and high-profile staff departures, the cryptocurrency did not take off. In the end, the Diem project was sold to Silvergate, a cryptocurrency-focused bank, for approximately $200 million.

Since he left Twitter, Dorsey has been focusing on<a href="https://squareup.com/us/en/press/square-changes-name-to-block"> 'Block</a>,' his new venture. Block, formerly known as Square, is a payment processing company. Their Cash App is at the forefront of making Bitcoin more accessible to the general public. The company also produces low-cost hardware for Bitcoin miners.

Dorsey has long been an outspoken maximalist when it comes to Bitcoin. He is certain that Bitcoin's use and reach are unparalleled. In the same interview, he stated that Meta should have concentrated on Bitcoin rather than trying to invent a new way to do things. He claims that Bitcoin has already demonstrated its ability to make the future more equitable and provide people with opportunities to improve.

<a href="https://www.cryptoknowmics.com/news/microstrategys-ceo-hinted-that-the-companys-bitcoin-would-not-be-sold">Microstrategy</a> has also attempted to disseminate information about Bitcoin. For example, they recently released a report with the Bitcoin Mining Council (BMC) demonstrating how the Bitcoin mining industry is becoming more environmentally friendly.

<img class="aligncenter" src="https://socialmediaexplorer.com/wp-content/uploads/2019/07/cryptocurrencys-love-hate-relationship-with-social-media-new-x486_1px.jpeg" alt="Should Facebook And Other Social Media Platforms Focus on Bitcoin?" width="661" height="372" />
<h2>Why Should Facebook Focus On Bitcoin?</h2>
During the interview, Dorsey didn't mind expressing his feelings about Diem. However,<a href="https://www.cryptoknowmics.com/news/jack-dorsey-calls-facebook-diem-as-a-wasted-effort-and-time"> he called the project a waste of time and effort</a>. He also stated that the project was not clear enough and that Meta could have done a lot more to help people if they had focused on Bitcoin.

Dorsey also criticized Meta's plan for creating stablecoin, claiming that the company only had an interest in getting people to use its products. "They tried to create a Facebook-owned currency, perhaps for the right or good reasons. However, there were also reasons to bring more and more people into the Facebook ecosystem," Dorsey explained.
<h2>Relationship Between Bitcoin and the Social Media</h2>
Every day, there is the introduction of new cryptocurrencies to the Internet. As a result, there is an ongoing development of new platforms for these currencies. This has made developers begin to investigate how social media affects the value of cryptocurrencies. So what have people on social media sites like Facebook, Twitter, and YouTube taught us about currency price fluctuations?

The primary goal of social media is to connect people. It is also to create content that goes viral and receives millions of views worldwide. People communicate with one another on Instagram, Reddit, and Facebook.

The value of cryptocurrencies always fluctuates when people discuss platforms and currencies online. This is true in both directions: good news increases the value of something while bad news decreases its value. So even if the hack is minor, learning about it can cause a cryptocurrency's value to fall.

Cryptocurrency has a few flaws. It carries the same risks as investing in real estate or the stock market and some that are unique to the Internet. If you forget your password, it's easy to lose cryptocurrency, and hackers can tamper with or even destroy it. It cannot replace fiat currency, money issued by a region or country. However, it also makes it easier for people to do business online and across borders if more people use it. 
<h2>Impact of Social Media On Bitcoin Price</h2>
We can use social media to learn how investors feel about various cryptocurrencies and how their prices change. Understand that social media sites that show how people feel about something and people's comments on the subject can influence how much Bitcoin costs.

However, keep in mind that not all contents are the same. In other words, when it comes to cryptocurrencies, not all user-generated content, such as social media posts and messages, has the same equity value.

The views of minorities significantly impact people's choice to invest in certain things. Their increased social media presence guides those who follow them in the same direction by passing information from their level to those who follow them. This is why certain investors receive so much attention.

However, these tendencies do not always work out. Social media influencers and celebrities usually have a plan because they are often paid to get people talking about something. 

Furthermore, social media influencers frequently try to increase their fan bases by reaching out to each other's audiences. As a result, some investments perform better than others significantly.

The silent majority occasionally publishes content that reflects genuine concerns about how the market is feeling. This can be a more reliable source of information for getting a full picture of how the market is feeling.
<h2>Impact of Social Media Rumors and News on Cryptocurrency</h2>
According to basic economics, when there is a high demand for a product, the price rises. As a result, the value of cryptocurrencies fluctuates whenever the media pays attention to them. Prices can rise when there is positive news about a product or service. In the same vein, they can fall when there is negative news.

Given that approximately 70% of adults in the United States get their news from social media, it is easy to see how important social media is in determining how much Bitcoin and other currencies are desired and how much they cost. 

Before reading about it in an online magazine, most people had no idea what cryptocurrency was or saw it in their newsfeeds. However, the massive Bitcoin bubble earlier this year would not have occurred without media coverage and social sharing.

Should Facebook And Other Social Media Platforms Focus on Bitcoin?

Tesla<a href="https://www.cryptoknowmics.com/news/tesla-block-and-blockstream-to-mine-bitcoin-using-solar-power"> will build a solar and Megapack energy farm in collaboration with Blockstream and Jack Dorsey's Blocks</a>. In addition, it will power a new Bitcoin mining facility (formerly Square). Tesla invested $1.5 billion in Bitcoin at the beginning of 2021. Almost immediately after that, the car company began accepting cryptocurrency as payment for new vehicles.

A few days later, Tesla reversed its stance on cryptocurrencies by removing Bitcoin as a payment option. The company had a concern about the amount of energy needed by the Bitcoin network. Many people in the Tesla community expressed concern when the company first announced it was investing in Bitcoin, and many were angry that the company hadn't thought of it before.

Tesla announced that it would not sell its Bitcoin stake. Furthermore, it would resume accepting Bitcoin payments once the network could demonstrate that it was using more renewable energy.<a href="https://www.cryptoknowmics.com/news/elon-musk-buys-social-media-giant-twitter"> Elon Musk</a>, Tesla and Twitter’s CEO, stated in the summer of 2016 that he believes Tesla will resume accepting Bitcoin payments because Bitcoin mining consumes less energy. This hasn't happened yet, but Tesla is now directly involved in supplying clean energy to Bitcoin mining.

Blockstream and Blocks, formerly Square, collaborate on a Bitcoin mining facility in Texas. They are now in partnership with Tesla to power the facility with a 3.8 MW solar farm and a 12 MWh Megapack system: The sun will provide 30 Petahashes per second of power to this system.

According to the companies, construction on the project has already begun. On completion, they intend to release performance reports regularly. This will be to demonstrate that using renewable energy to power cryptocurrency mining is a good economic decision.

<img class="aligncenter" src="https://securecdn.pymnts.com/wp-content/uploads/2021/07/tesla-bitcoin.jpg" alt="Why Tesla Wants a Connection between Bitcoin Mine and Solar Energy" width="667" height="401" />
<h2>Why Would Tesla Make This Decision?</h2>
This is a significant advancement for Bitcoin and cryptocurrency mining in general. High-performance computers have long been chastised for consuming a lot of energy and having a negative impact on the environment. Tesla's transition to renewable energy will undoubtedly serve as a model for the rest of the industry.
<h2>How do Tesla Owners Mine Cryptocurrency With Their Cars?</h2>
One ingenious Tesla owner has discovered a<a href="https://www.binance.com/en/news/top/6710010"> new way to use his electric vehicle</a> aside from driving it - he uses the battery to mine Bitcoin. Siraj Raval<a href="https://www.cnbc.com/2022/01/08/tesla-owner-mines-bitcoin-ethereum-with-his-car.html"> while speaking to CNBC</a>, said he charges his Apple computer with free Bitcoin software by plugging it into his 2018 Tesla Model 3. He also has graphics processing units connected to the "funk," which is the name for his Tesla's trunk.

Last year, Raval revealed that running his Bitcoin software on his Tesla earned him up to $800 per month. However, he has only made an attempt to mine Bitcoin and Ethereum. CNBC investigated cryptocurrency mining and discovered that it consumes a lot of energy. This is because computers worldwide have to share their computing power with the global crypto network.  After that, it then generates new coins and verifies transactions involving existing tokens.

Raval went on to say he had gained a lot from hacking into Tesla's computer and directly plugging connected graphics processing units into the car's electric motor. However, using Tesla cars to mine cryptocurrency may not be worth it due to the risk of voiding the warranty. Meanwhile, a couple of Tesla owners who bought their vehicles before 2017 enrolled in a program that provides free, unlimited supercharging training for their vehicles.

Supercharging is free. However, some Tesla owners believe it is not worthwhile to use their vehicles to mine cryptocurrency. "It will use the money it makes from both transportation and cryptocurrency mining services to pay for things like repairs, electricity costs, and upgrades, as well as to invest in a diverse portfolio of new crypto-community networks," Raval explained.
<h2>How Many Solar Panels would Mine Bitcoins?</h2>
The solar panels you need to mine Bitcoin are dependent on the amount of solar energy coming from the sun. It also depends on how many Bitcoin you want to mine. It also depends on where you live, the orientation of your roof, the space available for solar panels, and the type of solar panels you want to buy.

On average, a single mining rig requires 450 to 500 Watts of power. When more than one graphics processing unit is active, this rises to 900–1500 Watts (GPUs). Solar panels installed in a sunny part of the United States will produce an average of 229 Watts per square meter.

Given that solar panels cannot produce power at night,<a href="https://freedomsolarpower.com/blog/cryptocurrency-mining-with-solar-panels"> Bitcoin miners need about six to twelve square meters of solar panels</a>. In addition, a battery system is also required to store energy, allowing GPUs to work at night.
<h2>Pros of Mining Cryptocurrency Using Solar Power</h2>
After installing solar panels, you will no longer have to pay for electricity to run your Bitcoin mining operation. Modern solar panels can last for decades, so you won't have to pay for electricity for an extended period.

The most expensive part is setting up solar-powered cryptocurrency mining. There are few, if any, ongoing expenses. As a result, you'll have a consistent stream of income that will grow over time.

Because Bitcoin mining consumes a lot of energy, using traditional energy sources to power is bad for the environment. Conventional energy production pollutes the environment and increases the number of greenhouse gases in the atmosphere. Using solar energy to mine Bitcoin is a good and environmentally friendly method.

Furthermore, the power grid can fail for a variety of reasons. Most of them, however, do not affect solar energy. Once installed, solar energy is a powerful and dependable source of energy.
<h2>Cons Of Mining Cryptocurrency Using Solar Power </h2>
Solar-powered cryptocurrency mining is initially expensive. However, everyone understands that joining the grid is inexpensive. This is because you only pay for electricity, not the infrastructure that makes it work.

There may also be concerns about how much solar electricity panels can generate. For example, a prolonged period of bad weather can cause your solar panels to produce significantly less energy.

Due to the high cost of solar infrastructure, you'll have to keep mining Bitcoin for a few years before recouping your initial investment. You will also need to do a lot of mining to get your money back.

The amount of solar energy you can generate is also limited by the amount of space available for solar panels. Depending on where you live, you may be unable to install sufficient solar panels to power your Bitcoin business.

Why Tesla Wants a Connection between Bitcoin Mine and Solar Energy

President Joe Biden's executive order on cryptocurrencies aims to make it easier for the US government to monitor the $2 trillion digital asset market. In addition, the order includes instructions to protect users and reduce crime risks. The<a href="https://www.cryptoknowmics.com/news/bidens-executive-order-on-crypto"> White House released an executive order on crypto</a> signed by President Biden on March 9, 2022. The order directs federal agencies to investigate the risks and benefits of cryptocurrencies, which have grown in popularity among ordinary people and large financial institutions in the last year. The order affects all government agencies because the United States lacks a centralized cryptocurrency regulator.

<img class="aligncenter" src="https://cdn.images.express.co.uk/img/dynamic/22/590x/1386436_1.jpg?r=1611134420049" alt="President Joe Biden Orders on Cryptocurrencies" width="590" height="350" />
<h2>Is this a Good Move?</h2>
Yes, it is. Biden's executive order devotes significant resources and thoughts to the threats to national security that digital assets pose. This includes money laundering and evasion of sanctions. It is unclear what changes came with the executive order in response to Russia's recent move to improve national security objectives and engagement. 

Still, as the various agencies work on the order's details, they are forced to consider how crypto and digital assets affect national security, foreign policy, and international sanctions in greater depth. As a result, those concerned about the role of cryptocurrency in this space will have more legal and administrative grounds to raise their concerns during the inter-agency process. 

The executive order outlines the Administration's plans for the future. It appears to boost the Federal Reserve's recent CBDC efforts. The order also gives the AG the authority to determine whether the Fed has the legal authority to issue a CBDC, which should be closely monitored. 

Also, the order strikes a balance between the potential benefits and risks of digital assets. The situation in Ukraine has likely altered the assessment of these risks. This elevates national security and foreign policy concerns to the forefront of global system development.
<h2>Why Should Investors Welcome Cryptocurrency Regulation?</h2>
Cryptocurrency regulation is a contentious issue. However, many experts believe investors in cryptocurrencies should welcome it. To begin with, the cryptocurrency market is volatile, but more regulations help keep it in check. 

Tally Greenberg, the director of business development at<a href="https://www.allnodes.com/"> Allnodes</a>, a platform that provides hosting, monitoring, and staking services, believes that regulators should make and implement regulations to stabilize the market further. This is beneficial because it keeps investors safe. 

Despite this, many crypto enthusiasts are vehemently opposed to any new regulations. They claimed that it would retard innovation and contradict the spirit of cryptocurrencies which have a basis on the concept of decentralization.

The fact that digital currencies such as Bitcoin have no backing from any institution or government authority is a big draw for these individuals. As a result, any new regulation would threaten the system's decentralized nature, which is a feature, not a bug.

According to Aaron Klein, a Brookings Institution senior fellow in economic studies,<a href="https://time.com/nextadvisor/investing/cryptocurrency/why-crypto-regulation-is-good-for-investors/"> new regulations could protect long-term investors and prevent fraud in the crypto ecosystem</a>. Furthermore, it could provide clear guidelines to help companies innovate in the crypto economy. 
<h2>What's Next for Cryptocurrency Regulation?</h2>
Even though the general public's adoption of cryptocurrency in 2021 sparked a debate about the government's role in this largely unregulated sector, clear regulations are still under development. 

As there is the introduction of thousands of digital currencies and new companies and platforms spring up to help store and trade them, the industry is in a state of flux.

Recent discussions on Capitol Hill show that adding more regulations is a matter of when not if. President Biden signed a $1.2 trillion<a href="https://www.cryptoknowmics.com/news/what-does-the-usas-bipartisan-infrastructure-bill-for-mean-for-crypto"> bipartisan infrastructure bill</a> late last year, including new crypto tax laws. In addition, the Federal Reserve is considering issuing the United States its digital currency.

The Federal Reserve released a long-awaited report in January that examined the costs and benefits of a government-issued digital currency. The report resulted in a final decision on whether to proceed. However, the Fed has given the public and other interested parties until May 20 to provide feedback before further action. 

<a href="https://www.cryptoknowmics.com/news/the-future-of-stablecoins-in-e-commerce">Stablecoins</a> should be the first cryptocurrency to undergo regulation. However, even if new regulations make the cryptocurrency market more stable, it remains a very risky and volatile investment. As a result, financial experts advise most investors to limit their crypto holdings to less than 5%. They also advise them never to invest in crypto instead, whenever they have emergency savings or debt repayment to take care of.
<h2>How Would Cryptocurrency Regulations Benefit Investors?</h2>
<h3>1. More Stability In The Market</h3>
Having regulators monitor cryptocurrencies could benefit the industry, at least for small investors. If the new regulations are well-targeted, they have the potential to reduce speculation in crypto assets. Less speculative activity can boost investor confidence. It can also attract more long-term investors who have previously avoided the highly speculative and volatile cryptocurrency market.
<h3>2. Increase in Investor Protection and Confidence</h3>
There is currently no regulatory system in place to protect crypto investors' assets. Hence, so they have little or no market protection.

The Federal government does not regulate most crypto trading assets, which is a major issue. This demonstrates that investors on these large exchanges are not well protected as they are on securities and futures markets.

Cryptocurrency, like stocks, is likely to remain a risky investment. However, investor protections can make the market less easy to manipulate from the outside. As a result, investors are more likely to put money into safer markets. This will lead to a rise in market value over time.
<h3>3. Safer Crypto Ecosystem</h3>
The SEC's head,<a href="https://www.sec.gov/biography/gary-gensler"> Gary Gensler</a>, has compared the lack of regulations in the crypto industry to the Wild West. The lack of regulations and laws in this expanding landscape has made committing fraud, scams, and market manipulation easier.

However, there are several ways to keep your cryptocurrency secure. Be careful of emails or social media posts that contain obvious misspellings. Also, avoid "get rich quick" crypto schemes. If you do not use safe digital security practices, hackers can gain access to your digital wallets. You could, for example, keep your cryptocurrency on a securities exchange. It's also critical to keep the key to your wallet secure and not allow anyone else to use it. If you misplace or have your key stolen, you may lose all of your cryptocurrencies.

Biden Incorporates Institutes To 'Develop and Use' Crypto - A Good Move?

The<a href="https://www.imf.org/en/Home"> International Monetary Fund</a> (IMF) monitors the global economy and provides loans and assistance to its 190 member countries. They recently urged El Salvador to abandon Bitcoin as a legal tender.

The IMF collects economic data and reports it to the board during regular meetings with its member countries. The board then consults with the government about issues and potential solutions.

<img class="aligncenter" src="https://cbsnews3.cbsistatic.com/hub/i/r/2021/06/09/c8fb6749-8241-4d12-8dd6-59ff347e3030/thumbnail/1200x630/b4e0ed347db38118326d21dbdeb6dd6d/gettyimages-1233351186.jpg" alt="Should El Salvador Ditch Bitcoin as Legal Tender? - IMF Thinks So" width="630" height="331" />
<h2>IMF Meeting With El Salvador</h2>
The<a href="https://www.cryptoknowmics.com/news/imf-calls-for-coordinated-effort-and-capital-controls-for-crypto"> IMF</a> believes El Salvador has a Bitcoin problem. After the meeting, the international organization said that the Central American country's economy is contracting, increasing its public debt. According to the report, the fact that Bitcoin has been the national currency since September 2021 is detrimental to the country's economic recovery. This is because: "Making a cryptocurrency legal tender poses significant risks to the market and financial integrity, financial stability, and user protection. It may also result in uncertain liabilities."

The IMF has been against this since June 2021, when<a href="https://www.cryptoknowmics.com/news/el-salvadors-president-nayib-bukele-hits-out-at-reuters"> El Salvador's President Nayib Bukele</a> said at the<a href="https://finance.yahoo.com/news/bitcoin-miami-2021-aways-el-162623563.html"> Bitcoin Conference in Miami</a> that he would pass legislation requiring people and businesses to accept Bitcoin as payment unless they lacked adequate internet access. The US dollar has been the country's sole currency since 2001.

According to an International Monetary Fund spokesperson, "Effective regulatory measures are important when dealing with crypto assets." This implies that the country was not ready. Nonetheless, the Legislative Assembly quickly signed the bill into law. So, El Salvador became the world's first country to use Bitcoin as its official currency three months later.

At the start of the consultation process, The IMF told El Salvador again in November 2021 that it should stop using Bitcoin as legal currency due to its volatile price. Nevertheless, Bukele went on to add approximately 1,800 BTC to the country's treasury. Furthermore, when the market crashed, he purchased an additional 410 BTC. As a result, according to Bloomberg, El Salvador had $12 million in unrecovered losses as of January 12.
<h2>El Salvador's Government Buys The Dip By Adding 410 Bitcoins To Its Treasury</h2>
On January 21, 2022, El Salvador's government spent $15 million on a new purchase of Bitcoins. El Salvador, in Central America, made Bitcoin legal last year and has been increasing its Bitcoin reserves. Following the recent drop in the value of Bitcoin, El Salvador purchased 410 more tokens for $15 million. Bitcoin's price dropped from $42,270 to as low as $35,000. On Twitter, President Nayib Bukele provided additional information about purchasing the dip. El Salvador's President made a tweet to his 3.4 million followers "Some guys are selling for an absurdly low price."

At this point, the reserve could contain more than 1,500 Bitcoins worth more than $50 million. Bukele, on the other hand, does not appear to be affected by Bitcoin's volatility. He remains a supporter of cryptocurrency.

Bukele has been working to make crypto more accepted and useful in his country. This is from installing Bitcoin ATMs to creating a government-backed Bitcoin wallet for Salvadorans called<a href="https://www.cryptoknowmics.com/news/el-salvador-relaunches-chivo-wallet-with-new-tech-provider"> Chivo</a>. However, people in other parts of the world are still debating how to regulate the cryptocurrency industry.

Central governments in India and Russia, among others, have recently announced plans to prohibit crypto activities. Because governments oppose the use of cryptocurrencies, Bitcoin and other cryptocurrencies lost a significant amount of value between November and January.
<h2>These Countries Could Be The Next to Accept Bitcoin as Legal Tender</h2>
One of the most common criticisms critics level at cryptocurrencies is that they will never be widely used. In other words, it means they will never be very useful. However, on September 7, 2021, El Salvador became the first country to accept Bitcoin as legal currency. This has the potential to change things for the better.

A small Central American country using Bitcoin is unlikely to be enough to make it a global currency, but it could be the first domino to fall. Other countries are already investigating El Salvador's historic move, and if they think it's a good idea, Bitcoin could be in use globally. 

Here are four more countries to watch because it appears that they will follow El Salvador's lead.
<h3>Panama</h3>
Panama borders El Salvador, so it's not surprising that it may soon recognize Bitcoin as a legal tender. Moreover, unlike many other countries that were said to be considering doing the same, Panama is the country closest to becoming the second to accept Bitcoin as legal tender despite the lack of legislation.
<h3>Cuba</h3>
Cuba has not yet fully accepted cryptocurrencies as legal tender, but it has taken steps in that direction. As a result, the country now officially recognized and regulated cryptocurrencies, allowing its citizens to use them freely. 

Part of this decision was influenced by the fact that the United States makes sending money between Cuba and the United States more difficult. This includes the closure of over 400 Western Union branches across the country. As a result, Cubans can now use cryptocurrency to send money to others. Furthermore, employers can pay them in cryptocurrency for their work.
<h3>Ukraine</h3>
Ukraine is yet to legalize cryptocurrencies such as Bitcoin and Ethereum, but the country is moving in that direction. The country's government almost unanimously passed a law making cryptocurrencies legal and establishing rules for them in September 2021. 

In addition, the country is making more explicit statements about where it wants to be in the cryptocurrency world in the future. According to the New York Times, the country only established a Ministry of Digital Transformation two years ago. "The goal is to become one of the leading jurisdictions for crypto companies," said Alexander Bornyakov, deputy minister.

We believe that this is the new economy, the way things will be in the future, and something that will aid in the growth of our economy. Furthermore, according to other reports, the country will be a "dual currency state" by 2023, meaning that both Bitcoin and the hryvnia will be considered legal tenders.
<h3>Paraguay</h3>
Soon after El Salvador announced that it would pass legislation making Bitcoin a legal tender, a member of Paraguay's Chamber of Deputies introduced a bill to legalize and regulate cryptocurrencies. 

Carlitos Rejala, the same politician, has announced his intention to run for president in 2023. Part of his plan will include making Bitcoin the country's official currency. It's unclear whether this will happen, but if Rejala's ideas catch on, Paraguay could be on the verge of adopting Bitcoin.
<h3>Where Does The United States Stand In This Issue?</h3>
According to a YouGov survey, while 27 percent of Americans want their government to accept Bitcoin as a legal tender, this is extremely unlikely to happen. The US government believes that the unregulated cryptocurrency market is more likely to cause harm than good. This is since the US government has no control over how it is used or whether it is taxed because it is an unregulated market.

The Federal Reserve Board may also consider creating its digital currency. The cryptocurrency the United States issues would be a digital currency that has the backing of the Federal Reserve. However, even if Congress approves of the idea, it is unlikely that there will be an implementation soon.

Should El Salvador Ditch Bitcoin as Legal Tender? - IMF Thinks So

According to the blockchain monitor "<a href="https://twitter.com/whale_alert/status/1507746190460436482">Whale Alert</a>," there was a reactivation of an old wallet containing 50 Bitcoins for the first time in 13 years and 6 months. The mining of the block was on November 22, 2009, just a few months after the first <a href="https://www.cryptoknowmics.com/news/best-wallet-to-buy-bitcoin-in-2022/">Bitcoin</a> transaction in January 2009. Because there were no exchanges at the time, Bitcoin was effectively worthless. As a result, the first users of Bitcoin did so as a hobby and did not expect to become wealthy.

The creation of the wallet was before the famous programmer<a href="https://www.thesun.co.uk/news/14905929/bitcoin-pizza-laszlo-hanyecz-crypto-currency/"> Laszlo Hanyecz</a> spent 10,000 BTC on two pizzas in May 2010. On February 8, 2011, Bitcoin and the US dollar were finally equal in value. The original owner of these coins has turned them into a $2,100,000 fortune. Even though the address was already existing while Bitcoin's creator<a href="https://en.wikipedia.org/wiki/Satoshi_Nakamoto#:~:text=Satoshi%20Nakamoto%20is%20the%20name,devised%20the%20first%20blockchain%20database."> Satoshi Nakamoto</a> was still active in the community, he is unlikely to be behind the transfer.

The most likely explanation is that someone found the private keys to millions of dollars in Bitcoin. Some believe that the address owner turned to the wallet after jail release. In recent months, there have been several cases of Bitcoin wallet reactivation for the first time in years. 

In May 2020, the price of Bitcoin fell after "Whale Alert" learned that coins from a wallet that is believed to be Satoshi's were reactivated. Later, they found that the transfer had nothing to do with the person who created Bitcoin.

<img class="aligncenter" src="https://s3.cointelegraph.com/storage/uploads/view/27c57990c2665135270c3733ab531a83.png" alt="The Forgotten Bitcoin Wallets - How They Could Affect the Economy" width="351" height="351" />
<h2>Effects on the Virtual Economy</h2>
It is now known that most Bitcoin wallets activated after several years belong to Bitcoin whales. Therefore, sudden activation of these dormant wallets can help to boost the virtual economy by making Bitcoin prices rise amazingly.
<h2>Economic Impact of Cryptocurrency</h2>
Since the inception of Bitcoin in 2009, cryptocurrencies have had both visible and hidden effects on the economy. Digital or virtual money in the form of tokens or coins has established itself as a real currency and investment in its eleventh year.  We can see its economic effects in several national and global communities. There are over 18,000 different cryptocurrencies as of March 2022, and nearly 59.1 million people in the United States own some form of cryptocurrency.

Hundreds of billions of dollars were poured into cryptocurrency in 2017, proving that it is a good stock to invest in. Even though cryptocurrency as a whole hasn't had a large impact on the economy, such as the stock market, this remains true. 

Experts refer to cryptocurrencies as "digital gold" because, like precious metals, they retain their value and do not lose it. Because cryptocurrency is still relatively new, economists and investors are likely to remain interested in how it affects the economy. Here are a few examples of how cryptocurrencies have affected the economy.
<h3>Economic Impact Through The Use Of Blockchain</h3>
Blockchain, the technology that powers cryptocurrencies, is gaining popularity. Many analysts believe that implementing this technology in other markets could generate billions of dollars.

So far,<a href="https://www.cryptoknowmics.com/news/essential-blockchain-technology-concepts-you-need-to-know"> Blockchain technology</a> appears to have changed the following business practices in various industries. These include:
<ul>
 	<li style="font-weight: 400">Blockchain has made it easier for financial institutions to conduct cross-border transactions.</li>
 	<li style="font-weight: 400">The use of technology in messaging apps has aided private investor transactions.</li>
 	<li style="font-weight: 400">Blockchain can make car sales and lease more efficient.</li>
 	<li style="font-weight: 400">By using Blockchain, cloud computing can run smart contracts while keeping hackers at bay.</li>
 	<li style="font-weight: 400">Through the Blockchain, public and government records can reduce paperwork and fraud while increasing accountability.</li>
</ul>
<h3>Economic Impact on the Job Market</h3>
Because of the rise of cryptocurrencies, an entire industry dedicates itself to tracking cryptocurrency exchanges worldwide. Through this, some early adopters became wealthy quickly, while others established businesses that relied on trading to make money.

In 2016, the Blockchain industry employed slightly more than a thousand people. In 2017, that figure had risen to over four thousand. Software developers have been the most in demand in the cryptocurrency industry.

People still want to work in these fields, even though the job market has changed in recent years. As cryptocurrency becomes legal in more places outside the West, we can expect more investments and job creation in the field worldwide.
<h3>Economic Impact on Unstable Domestic Currencies</h3>
Since the 1970s, the public's trust in US banks has steadily declined. This happened especially in places where the local currency fluctuates significantly, making living conditions worse. However, we can use cryptocurrencies to circumvent these issues. 

Cryptocurrency is an entirely utilitarian system in which each peer monitors a transaction rather than the government. There are approximately 1.7 billion people who do not have a bank account. Because they don't have much money, they frequently have to borrow from people in risky ways. 

This population has many mobile phone owners, which is intriguing. Because it is possible to trade cryptocurrencies via mobile apps, they have the potential to become a viable option for this group.

Another advantage of cryptocurrency is that it is entirely decentralized. This means that people in countries with volatile currencies can freely trade with people in countries with more money, making the economy more equitable.
<h3>Economic Impact through Low Transaction Cost</h3>
Most cryptocurrency users, do not have to pay much for transactions. This is because they are decentralized and do not require users to buy physical assets. As a result, there is the use of more financial tools and more integration of the global economy. 
<h3>Economic Impact through Transparency</h3>
Blockchain technology and cryptocurrency transactions are completely digital and recorded on an immutable ledger. This gives people more power and freedom and reduces the likelihood of fraud and corruption. 

This is especially beneficial for developing countries and mistreated people. Because cryptocurrencies are designed to be useful, these people can invest and transact in a global economy, which benefits their local economy and standard of living.
<h3>Economic Impact on Entrepreneurs</h3>
Because it is decentralized, cryptocurrency is a global economy in which all users, regardless of location, can trade currency. This is significant for entrepreneurs because it eliminates the need to cater to a national audience. Instead, they have a global audience with whom they can exchange money without worrying about exchange rates or international law. 

Indeed, cryptocurrency companies assist African business owners in conducting financial transactions with European, American, and Asian companies to gain financial coverage and independence through global exchanges.

In an increasingly digital world, the social need to communicate across borders is evolving into financial needs that financial institutions cannot meet. Entrepreneurs can eventually help make it easier to invest, save, and send money across borders, changing the way the world does business.

The Forgotten Bitcoin Wallets - How They Could Affect the Economy

A few people are using Bitcoin to make digital payments. However, Bitcoin transactions consume more energy than ever before. As a result, Bitcoin's carbon footprint (<a href="https://digiconomist.net/bitcoin-energy-consumption">114 million tonnes per year</a>) is canceling other environmental profits.

There is an estimation that the use of electric vehicles worldwide prevents the release of about 50 million tonnes of CO2 into the atmosphere. This is less than half of what Bitcoin produces each year. There has been an increase in Bitcoin's<a href="https://www.cryptoknowmics.com/news/qtum-foundation-to-plant-100000-trees-with-binance-charity-to-reduce-carbon-footprint/"> carbon footprint</a> by a factor of five in just two years. This is due to the exponential growth of "mining" it with fossil fuels.

On the other hand,<a href="https://www.greenpeace.org/international/"> Greenpeace</a> and the<a href="https://www.ewg.org/"> Environmental Working Group</a> claim that a simple software update to Bitcoin can resolve all of this (i.e., changing its code).<a href="https://www.cleanupbitcoin.com/"> Change the Code, Not the Climate</a> is their new campaign. With this campaign, they ask Bitcoin software developers to replace the network's inefficient system for verifying transactions with one that is more environmentally friendly. They claim that making the change would reduce Bitcoin's carbon footprint by 99.9%. 

<img class="aligncenter" src="https://cdn.proactiveinvestors.com/eyJidWNrZXQiOiJwYS1jZG4iLCJrZXkiOiJ1cGxvYWRcL05ld3NcL0ltYWdlXC8yMDIyXzAzXC9zaHV0dGVyc3RvY2stNDYwNDU5MjQzXzYyNDQwNDE3MWY0N2UuanBnIiwiZWRpdHMiOnsicmVzaXplIjp7IndpZHRoIjo2NzIsImhlaWdodCI6MzExLCJmaXQiOiJjb3ZlciJ9fX0=" alt="Reducing Crypto Energy Use with a Simple Code Change" width="672" height="311" />
<h2>How Is This So?</h2>
This code change would be simple to implement in Bitcoin. According to Greenpeace, the switch to PoS (Proof of Work) would require the collaboration of just thirty entities. This will include the largest mining operations and exchanges, such as Coinbase, Binance, and code developers.

However, this does not account for the fact that everyone would have to use the updated software. As a result, most miners are cautious and protective of their investments when it comes to making changes to the software code that supports their earnings.

<a href="https://coinshares.com/research/closer-look-environmental-impact-of-bitcoin-mining">According to Chris Bendiksen</a>, CoinShares commentator, there is no chance that Bitcoin will ever switch to PoS. "Bitcoiners don't want to compromise the protocol's security in this way," he says.

Bitcoin's code has previously caused issues. In 2016, there was a proposal for change to address intermittent traffic issues while keeping the transaction fees stable. Even though it was a simple fix, the change divided the Bitcoin community. Most people prefer the slower, more expensive status quo from a survey.

Even if some users decide to abandon PoW, the original Bitcoin network will continue to function in some capacity. This version of PoW would keep the same name, branding, and miners.  This slight change of code can alter many things as the PoS spinoff may turn out to be another failed experiment.
<h2>Energy Consumption</h2>
This year has seen a rapid rise in interest, activity, and hype in public blockchain use cases. This includes cryptocurrencies, NFTs, decentralized finance apps, and decentralized autonomous organizations. 

However, two major interconnected issues have arisen due to this rapid growth, making it difficult to adopt public blockchain use cases. The first is that certain blockchains, such as Bitcoin consume a significant amount of energy. The second issue is scalability, related to how expensive and time-consuming it is to use blockchains like<a href="https://www.cryptoknowmics.com/news/is-1800-ethereums-next-critical-support-level"> Ethereum</a>. Clients can expect these barriers to become more popular as more industries adopt public blockchain use cases. An example is consumer packaged goods brands issuing NFTs.
<h2>How Is Energy Used In Mining Bitcoins?</h2>
Early in 2021, the public blockchain energy debate received much attention when China shut down almost all cryptocurrency mining. In addition, Tesla had a change of mind about accepting Bitcoin as payment due to rising concerns about the network's energy use. 

Their reasons of concern are valid. For example, Major blockchains such as Bitcoin and Ethereum use a "Proof of Work" system to reach a consensus. In this system, "miners" use a lot of computing power to solve cryptographic puzzles and check the transactions of network participants to reach a decentralized agreement. 

According to recent data, Bitcoin mining alone consumes 117 terawatt-hours of electricity each year. This accounts for about 0.5 percent of total global electricity consumption and has increased tenfold in the last five years. To remain economically competitive, miners must frequently upgrade to the most recent mining chips (application integrated circuits or graphics processing units). 
<h2>Why does Bitcoin consume so much energy?</h2>
Bitcoin, in general, consumes a lot of energy because miners compete with one another, and the network is extremely busy. As a result, miners must expend a lot of energy to be the first to solve the equation that will earn them a Bitcoin. 

Miners seek larger, faster computers that consume more energy to solve equations more quickly. They must solve more equations as the number of Bitcoin network transactions increases.
<h2>Environmental Impact of Bitcoin's energy use</h2>
The amount of energy used by Bitcoin has a significant impact on the environment. It is the amount of energy that a network requires to run and the type of energy used and the amount of electronic waste produced.
<h3>Carbon's Footprint</h3>
According to Digiconomist, the carbon footprint of a single Bitcoin block in 2021 was approximately 816 kilograms of carbon dioxide equivalent (CO2). This is approximately equivalent to the carbon footprint of 1,808,913 Visa transactions or 136,028 hours of viewing YouTube videos. The Bitcoin network emits 6418 metric tons of CO2 into the atmosphere each year.

Most of China's electricity is generated by coal-fired power plants, which is extremely harmful to the environment. As a result, when most Bitcoin mining was done in China, it was done on a grid that coal-fired power plants mostly powered.
<h3>Electronics-related waste</h3>
Unlike the requirements for other cryptocurrencies, Bitcoin mining equipment cannot be used for any other purpose. This generates a significant amount of electronic waste from the computer hardware. According to Digiconomist, in 2021, a single Bitcoin block will generate 77.80 grams of electronic waste, which is equivalent to the weight of 1.72 golf balls.
<h2>Is Bitcoin Worth the Environmental Cost?</h2>
<a href="https://www.cryptoknowmics.com/news/elon-musk-receives-over-1-3b-from-crypto-friends-to-back-twitter-deal">Elon Musk</a> isn't the only one concerned about how much energy Bitcoin consumes. Even for those who support cryptocurrencies in general, the environmental cost of Bitcoin may be prohibitively high, especially now that people are dealing with the real-world consequences of climate change. 

On the other hand, proponents argue that Bitcoin and other cryptocurrencies are well worth the investment. This is because they have the potential to change how people use energy. Moreover, with changes to the crypto ecosystem, such as the addition of more energy-efficient currencies and updates to existing networks, it may be possible in the future to find the best of both worlds with energy-efficient cryptocurrencies powered by renewable electricity.

Author : Oluwademilade Afolabi

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