
<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Set to occur on Saturday is the highly anticipated bitcoin halving event, a somewhat mysterious phenomenon that occurs every four years, which should theoretically provide a major tailwind to bitcoin prices flatlining in recent weeks.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The halving event refers to the 50% reduction in the new bitcoins available daily to digital miners who unlock tokens on the blockchain via a complex, energy-intensive process.&#8221;</p>



<p>Halving previously occurred in 2012, 2016 and 2020, and is programmed directly into the bitcoin ecosystem to occur every four years, with the fourth instance widely expected to come Saturday, or within a few days, cutting the amount of bitcoins available for mining each day from 900 to 450.</p>



<p>Between 19 million and 20 million bitcoins now exist, with only&nbsp;<a href="https://www.forbes.com/sites/digital-assets/article/the-21-million-question---is-bitcoin-supply-really-capped/?sh=16f31a4a7984">21 million</a>&nbsp;tokens ever programmed to exist, and halvings are designed to keep the supply of bitcoin limited, and maintaining the decentralized currency’s storage of value.</p>



<p>By lowering the supply, some expect the 2024 halving will drive demand for bitcoin, and therefore its price, which happened in the immediate aftermath of the three other events.</p>



<p>Bitcoin&nbsp;<a href="https://www.coindesk.com/learn/bitcoin-halving-explained/" rel="noreferrer noopener" target="_blank">rose</a>&nbsp;8,069% in the 12 months after the 2012 halving, 284% following the 2016 halving and 559% after the 2020 halving.“It’s pretty much Economics 101” that bitcoin prices go up after halving, according to Sevens Report analyst Tom Essaye, who explained that so long as demand doesn’t decrease and new supply goes down, the “only thing left to move is price.”</p>



<h2 class="wp-block-heading" id="h-contra">CONTRA</h2>



<p>It’s far from a given that bitcoin demand will stay steady or increase, and three halving data points hardly make enough of a trend to definitively declare how bitcoin prices will behave during this halving cycle. It’s often hard to sift through the opinions of bitcoin revilers and zealots, but the former will tell you that bitcoin is already overvalued considering its limited use cases. But bitcoin’s ludicrous market-beating returns in recent years are hard for even the biggest pessimist to dismiss: The $61,000 per token bitcoin fetched Wednesday is roughly seven times its price at the 2020 halving, 90 times its 2016 level and 4,000 times its 2012 level.</p>



<h2 class="wp-block-heading" id="h-so-why-are-bitcoin-prices-down">SO WHY ARE BITCOIN PRICES DOWN?</h2>



<p>Bitcoin is about 17% below its all-time high of $73,768 set last month, with Saturday’s flash&nbsp;<a href="https://www.forbes.com/sites/tylerroush/2024/04/13/bitcoin-plummets-after-iran-launches-attack-on-israel/?sh=14a5c6681f70">10% crash</a>&nbsp;as Iran launched a drone attack on Israel exemplifying the fragile nature of the rally. Bernstein analyst Gautam Chhugani explained to clients Wednesday that it’s actually “new demand catalysts” overlapping with prior halvings that helped drive price increases, explaining that the current cycle’s catalyst actually already happened: January’s approval of spot bitcoin exchange-traded funds, which unlocked billions of dollars of new capital into bitcoin and contributed most strongly to the positive price action, as bitcoin remains up nearly 300% dating back to the beginning of last year. Chhugani expects bitcoin to reach as high as $150,000 next year, a highly bullish forecast that is more than double even its all-time high.</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>Halvings are likely a boon for bitcoin holders, but it’s a major challenge for miners, considering it quite literally halves their potential revenue stream – imagine if regulation allowed McDonald’s to sell Big Macs but no fries. Shares of CleanSpark (up 38%), Marathon Digital (down 36%) and Riot Platforms (down 48%), the three most prominent publicly traded American bitcoin miners, have all underperformed bitcoin this year, Chhugani noted, adding that the halving may actually be a good thing for investors as the pressure can lead to consolidation and more profitable companies.</p>


Crypto in Tbilisi as Devotees Begin to Contemplate a Market Bottom

Bitcoin Halving: Here’s Why Some Expect Prices To Soar


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>The price of bitcoin dropped by 7% on Saturday over the course of less than an hour, as prices for other cryptocurrencies also sharply declined after Iran launched an attack on Israel.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The price of bitcoin was&nbsp;<a href="https://www.forbes.com/digital-assets/assets/bitcoin-btc/?sh=57fc0c8a4357">down</a>&nbsp;7% to $62,570 as of 4:40 p.m. Saturday afternoon, after the cryptocurrency briefly fell to a low on the day of $60,908 minutes earlier.</p>



<p>The price of ethereum fell over 9% to $2,923, while prices for Binance coin and solana dropped 9% and nearly 18%, respectively.</p>



<p>Prices for several less-traded cryptocurrencies dropped by at least 15%, including avalanche (20%), XRP (20%) and the meme token dogecoin (18%).</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>$73,750. That’s what the&nbsp;<a href="https://www.forbes.com/advisor/in/investing/cryptocurrency/bitcoin-down-to-64000-after-record-high/">price</a>&nbsp;for bitcoin was on March 24, the all-time high price for the cryptocurrency.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Concerns over increased geopolitical conflict in the Middle East have impacted U.S. markets in recent days. The Dow Jones Industrial Average&nbsp;<a href="https://www.cnn.com/2024/04/12/investing/stocks-oil-banks-geopolitics/index.html" rel="noreferrer noopener" target="_blank">dropped</a>&nbsp;by 475 points Friday, after the White House said the U.S. and Israel were preparing for a potential attack by Iran. JPMorgan Chase CEO Jamie Dimon told investors geopolitical conflict was cause for concern, noting it could “be determinative on what happens to the global economy if oil and gas prices go too high,” CNN&nbsp;<a href="https://www.cnn.com/2024/04/12/investing/jpmorgan-chase-bank-earnings-q1/index.html" rel="noreferrer noopener" target="_blank">reported</a>.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/jamesfarrell/2024/04/13/iran-launches-drone-attack-on-israel/?sh=343044cb2130">Iran Launches Drone Attack On Israel</a> (<em>Forbes</em>)<a href="https://www.forbes.com/sites/tylerroush/"></a></p>


Iran-Reaction, IRGC Missile And UAV Attack On Israel

Bitcoin Plummets After Iran Launches Attack On Israel


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Bitcoin slumped to its lowest price in weeks Tuesday, as the world’s largest cryptocurrency’s all-time high achieved last week looks to be fleeting.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Bitcoin fell 7% to below $63,000 by 2 p.m. Greenwich Mean Time (10 a.m. EDT), the time zone typically used for cryptocurrencies as the digital assets are traded constantly.</p>



<p>Tuesday was bitcoin’s lowest price since March 5.</p>



<p>Bitcoin is now down about 15% from its all-time high of nearly $73,800 set last Thursday.</p>



<p>Other cryptocurrencies have similarly slumped, and prices of the next three largest digital assets – ether, Solana and Binance coin – are down more than 7% apiece over the last 24 hours.</p>



<h2 class="wp-block-heading" id="h-what-s-behind-bitcoin-s-price-drop">WHAT’S BEHIND BITCOIN’S PRICE DROP?</h2>



<p>There’s no singular catalyst for the recent bitcoin selloff, but several factors are likely at play. Bitcoin’s price is historically much more volatile than stock prices, which combined with traders’ tendency to take profits following a massive runup in asset prices can cause notable downward swings. There’s also significantly elevated trading activity for bitcoin as spot bitcoin exchange-traded funds (ETFs) flooded institutional money into crypto, with daily dollar-value bitcoin volumes registering their 10 largest values over the last three weeks alone, according to Yahoo Finance&nbsp;<a href="https://finance.yahoo.com/quote/BTC-USD/history?p=BTC-USD" rel="noreferrer noopener" target="_blank">data</a>. Finally, there’s been a noticeable uptick in liquidations for bitcoin futures contracts,&nbsp;<a href="https://www.theblock.co/data/crypto-markets/futures/btc-liquidations" rel="noreferrer noopener" target="_blank">according</a>&nbsp;to Coinglass, which can send bitcoin prices lower as exchanges force users to close their leveraged bitcoin positions.</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>$320 billion. That’s about how much the combined market capitalization of the global crypto market is down over the last week,&nbsp;<a href="https://www.coingecko.com/en/all-cryptocurrencies" rel="noreferrer noopener" target="_blank">according</a>&nbsp;to CoinGecko. Bitcoin’s $180 billion slide accounts for much of the decline.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Bitcoin’s returns remain eye popping, as its roughly 40% gain over the last six months and 130% year-to-date far outpace those of leading stock indexes. The rally, which erased the steep decline suffered by bitcoin in 2022 as the crypto industry turned sideways amid higher borrowing costs and revelations of high-profile bad actors like FTX’s Sam Bankman-Fried, came as equity prices rose and investors grew excited about the prospects of the ETFs, which went live in January, attracting billions of dollars of fresh capital.<a href="https://www.forbes.com/sites/dereksaul/"></a></p>


Hand holding bitcoin

Bitcoin Falls Another 7%—Down 15% From Last Week’s Record


<p>Last week, on Thursday, February 15, the Ethiopian Government&#8217;s investment arm, <a href="https://eih.et/" target="_blank" rel="noreferrer noopener">Ethiopian Investment Holdings</a> (EIH), signed a memorandum of understanding with Hong-Kong-based West Data Group&#8217;s Center Service PLC to commence mining bitcoin.</p>



<p>The partnership is under a general agreement for a groundbreaking $250 million data mining project &#8220;that is dedicated to establishing cutting-edge infrastructure for data mining and artificial intelligence training operations in Ethiopia,&#8221; according to the EIH. Ethiopia is positioning itself as a leader in the data centre space in Africa, which is estimated to grow to $5.4 billion by 2027, according to Aritzon Advisory and Intelligence.</p>



<p>As noted by Kal Kassa, CEO for Ethiopia at&nbsp;<a href="https://www.hashlabsmining.io/" target="_blank" rel="noreferrer noopener">Hashlabs Mining</a>, “the development is part of the Ethiopian Government&#8217;s aim to drive economic growth by leveraging technology and energy sources to attract foreign investments.”</p>



<p>The EIH has yet to confirm the details of its bitcoin mining operations or respond to requests for comment by other publications. Nevertheless, as the project matures, we can expect to get more clarity from them on the particulars of the arrangement.</p>



<h2 class="wp-block-heading" id="h-bitcoin-mining-in-ethiopia">Bitcoin Mining In Ethiopia</h2>



<p>Despite the ban on crypto trading in the country, 2022 saw the ratification of favorable data mining laws that permit &#8220;high-performance computing&#8221; and &#8220;data mining,&#8221; which is where bitcoin mining falls under. In the last two years, this has opened the floodgates to miners seeking its comparatively positive reception to bitcoin mining, coupled with its abundance of energy sources—chiefly hydro—to its optimal weather and cheap energy costs.</p>



<p>According to data from Bitcoin mining services company Luxor Technologies, in 2023, Ethiopia ranked fourth behind the USA, Hong Kong, and Asia as one of the top destinations for Bitcoin mining rigs. Russian bitcoin mining company Bitcluster has already built the first 120 MW bitcoin mining facility, and companies such as Hashlabs Mining have started building bitcoin mines in Ethiopia for their global clients.</p>



<p>In a few years, according to a forecast by a senior executive at Bitmain and reported by Bloomberg, Ethiopia&#8217;s energy potential could rival Texas&#8217;s generation capacity, which currently accounts for an astounding 28.5% of the US&#8217;s 40% global hash rate.</p>



<p>Nevertheless, bitcoin miners are cautious about the future of regulation in the country. As other regions have shown, bitcoin mining has no permanent regulatory cushion. It is also too early to predict whether Ethiopia will switch its stance on bitcoin mining as Iran and Kazakhstan did when it started competing with domestic energy demand.</p>



<p>Regardless, the government is keen on expanding its inflow of foreign currency to mitigate its economic challenges and views mining as a compelling investment opportunity to realise that goal.</p>



<h2 class="wp-block-heading" id="h-the-future-of-nation-state-mining-in-africa"><strong>The Future Of Nation State Mining In Africa</strong></h2>



<p>With the energy infrastructure yet to match demand on the ground for electricity in several African countries, using bitcoin mining has continued to become an attractive avenue to bring electricity to millions.</p>



<p>In Ethiopia, for example, over 40% of its population, roughly 120 million people, are without electricity. Yet, the country has an installed capacity generation of over 5,000 MW and anticipates a projected additional install capacity generation of ~5,150 MW following the completion of the Grand Ethiopia Renaissance Dam (GERD), the largest hydroelectric project in Africa.</p>



<p>Following the examples of mining projects elsewhere in Africa, such as&nbsp;<a href="https://www.forbes.com/sites/abubakarnurkhalil/2023/05/24/africans-are-pioneering-the-bright-yet-complicated-green-future-of-bitcoin-mining/?sh=6d70d31654ac">Gridless</a>&nbsp;and&nbsp;<a href="https://www.forbes.com/sites/digital-assets/2023/11/20/nigerian-bitcoin-miner-trojan-mining-launch-500kw-hydro-mining-site/">Trojan Mining</a>, Ethiopia too can leverage its abundant excess green energy to provide electricity to its citizens via bitcoin mining. It can serve as a blueprint for other African countries with comparable energy sources to follow and navigate similar economic problems.</p>



<p>Further, the inclusion of bitcoin mining into the Ethiopian economy could contribute $2 &#8211; $4 billion to its GDP, according to data from&nbsp;<a href="https://projectmano.com/" target="_blank" rel="noreferrer noopener">Project Mano</a>, an open collective seeking to educate the government on the potential benefits of bitcoin to the country’s economy.</p>



<p>The economic benefits of Ethiopia strategically leveraging its abundant energy resources for Bitcoin mining are vast and far-reaching. It is only a matter of time before other African nations join the bandwagon.</p>



<p>Bitcoin mining will ultimately be a pivotal tool in addressing the economic challenges of various African countries.</p>


aaaxxxxx

Ethiopia To Become The First African Country To Start Bitcoin Mining


<p><strong>The Himalayan Kingdom quietly spent millions building its own bitcoin mining operation. Now, using satellite imagery, <em>Forbes</em> has uncovered the secret locations of the world’s largest state-owned mines.</strong></p>



<p>Dozens of shipping containers lie hidden behind a hillside south of Thimphu, the Himalayan capital of Bhutan, one of the world’s most isolated nations. Inside, millions of dollars of bitcoin mining machines work unceasingly to amass the valuable currency that now fascinates the country’s monarch — and his kingdom. Under the reign of Jigme Khesar Namgyel Wangchuck, the “Dragon King,” Bhutan has been quietly transformed into a crypto Shangri-La with its government dedicating land, funding and energy to operations like these, which it hopes will avert a looming economic crisis.</p>



<p>But Bhutanese officials have never disclosed the location or scope of these facilities. And when it became the first country to have founded a sovereign bitcoin mine approximately four years ago, few outside of Bhutan knew. Its government only began commenting on its digital asset investments after&nbsp;<a href="https://www.forbes.com/sites/iainmartin/2023/04/15/the-tiny-kingdom-of-bhutan-secretly-held-millions-of-dollars-in-cryptocurrency/"><em>Forbes</em>&nbsp;first reported details</a>&nbsp;of its multi-million-dollar portfolio earlier this year, which were exposed by the bankruptcies of fallen crypto lenders BlockFi and Celsius, with whom it had banked significant holdings.</p>



<p>Now, <em>Forbes</em> has identified the sites of what appear to be four mines run by the Thunder Dragon kingdom, based on sources with knowledge of Bhutan’s crypto investments and confirmed through satellite imagery from Planet Labs, Satellite Vu and Google Earth. They show long rectangular mining units, data center cooling systems and high capacity power lines and transformers that run from Bhutan’s hydroelectric plants to the sites. They have never been publicly disclosed.</p>



<p>One facility — the pilot location for Bhutan’s bitcoin mining efforts, a source said — was built near Dochula Pass, an area that holds cultural and political significance for its 108 memorial shrines dedicated to fallen Bhutanese soldiers. Planet Labs and Google Earth satellite imagery indicate that earthmoving began on the site in 2020 with construction appearing to have finished in late 2022. Aerial views show a cluster of green and white-roofed mining units enclosed by miles of forest. Though just steps from a busy highway, Google Street View suggests it is completely hidden from unknowing passersby. A second source told&nbsp;<em>Forbes</em>&nbsp;that the ground has been leveled along this stretch of road to provide additional cover for the site.</p>



<p>A second mine is located near Trongsa, a town east of Thimphu and ancestral seat of the current Wangchuck dynasty. A third is situated in the heavily forested district of Dagana, near a middle school that caters to children in the rural community.</p>



<p>What appears to be the kingdom’s fourth and largest mine sits on the bones of a contentious — and failed — $1 billion government megaproject called “<a href="https://www.nationalcouncil.bt/assets/uploads/docs/acts/2014/Bhutan_Education_City_Act_2012_eng9th.pdf" target="_blank" rel="noreferrer noopener">Education City</a>,” an effort to establish an international center “for education and knowledge” in Bhutan. The mine runs alongside the country’s first paved road, Phuentsholing-Thimphu national highway, but is concealed behind mountainous terrain. Only transformers and power lines betray the fact that a bitcoin mine now occupies the site. Historical satellite imagery shows that its construction began around December 2021, coinciding with the import of $193 million in “processing units,” according to customs data from the Ministry of Finance. The imports were appended with the same tariff code used by bitcoin mining hardware companies.</p>



<p>Bhutan had pitched the&nbsp;<a href="https://www.nationalcouncil.bt/assets/uploads/docs/acts/2014/Bhutan_Education_City_Act_2012_eng9th.pdf" target="_blank" rel="noreferrer noopener">Education City</a>&nbsp;project to its citizens as a means to secure their future amid rising youth unemployment,&nbsp;<a href="https://kuenselonline.com/migration-of-bhutanese/" target="_blank" rel="noreferrer noopener">surging emigration numbers</a>&nbsp;and brain drain. Roughly 1.5% of Bhutan’s population&nbsp;<a href="https://www.reuters.com/world/asia-pacific/bhutans-jobs-woes-drive-an-exodus-australia-2023-07-28/" target="_blank" rel="noreferrer noopener">emigrated last year</a>&nbsp;to Australia alone, many seeking job opportunities and better pay. In Bhutan, the minimum wage is set at just $45 per month and approximately 12% of its population lives below the poverty line, according to local newspaper&nbsp;<a href="https://kuenselonline.com/labour-ministry-reviewing-the-national-minimum-daily-wage/" target="_blank" rel="noreferrer noopener"><em>Kuensel</em></a>.</p>



<p>Education City was supposed to change that. In 2009, Bhutan’s government paid consulting firm McKinsey &amp; Co. some $9 million to help design a $1 billion &#8220;world-class regional hub for health, education, finance, ICT services.&#8221; Nestled between the confluence of two rivers, the 1,000-acre campus would be a beacon of the country’s experimental Gross National Happiness economic model, and a higher ed hub for Asia. It was to host satellites of some of the most prestigious universities in the world, as well as R&amp;D facilities, laboratories, hotels and event centers. And according to the Bhutanese government, it would promote &#8220;Brand Bhutan,&#8221; creating a &#8220;green and sustainable economy,&#8221; &#8220;culturally and spiritually sensitive industries&#8221; and a &#8220;knowledgeable society.&#8221;</p>



<p>It did none of those things. Plagued by political scandals, mismanagement and innumerable delays, Education City was scrapped in 2014. But left behind were roads, bridges, a water supply and, crucially, power lines — building blocks for a bitcoin mine.</p>


<div class="wp-block-image">
<figure class="aligncenter is-resized"><img decoding="async" src="https://imageio.forbes.com/specials-images/imageserve/655cdfb1f26e45135e0fe07a/Infrastructure-consistent-with-that-of-a-bitcoin-mine-in-the-rural-region-of-Dagana-/0x0.jpg?format=jpg&amp;width=1440" alt="Infrastructure consistent with that of a bitcoin mine in the rural region of Dagana. " style="width:750px;height:auto"/><figcaption class="wp-element-caption">Infrastructure consistent with that of a bitcoin mine in the rural region of Dagana.&nbsp;<small>IMAGE © PLANET LABS PBC</small></figcaption></figure></div>


<p>The kingdom’s sovereign investing arm, Druk Holdings &amp; Investment (DHI), confirmed the mines’ existence. “Sites for bitcoin-mining related facilities in Bhutan have been selected based on the logistical needs of the operations such as power supply and a variety of other factors,” it told&nbsp;<em>Forbes</em>&nbsp;through an outside communications firm. It declined to comment on their locations, however, stating that “DHI does not disclose commercially sensitive details of its operations.”</p>



<p>Bitcoin was a Hail Mary addition to Bhutan’s economic masterplan. The kingdom’s finances have long been underpinned by tourism revenues and the export of a massive surplus of hydropower to its neighbor India. But the Covid pandemic tanked the&nbsp;<a href="https://jp.reuters.com/article/bhutan-tourism-environment-climate-idAFL8N3A93GD#:~:text=In%202019%2C%20before%20the%20pandemic,earn%20the%20country%20foreign%20exchange." target="_blank" rel="noreferrer noopener">$88.6 million</a>&nbsp;annual revenue the country collected from $65-a day visa fees, requiring an urgent course correction. According to multiple sources, Bhutanese government officials began holding talks with bitcoin miners and suppliers sometime in 2020.</p>



<p>DHI, which oversees Bhutan’s bitcoin operations, told local newspaper&nbsp;<a href="https://thebhutanese.bt/dhi-confirms-that-it-is-mining-digital-assets/" target="_blank" rel="noreferrer noopener"><em>The Bhutanese</em></a>&nbsp;that it “entered the mining space” when the cryptocurrency’s price was $5,000 (it was last valued at this level in April 2019 but is now worth $36,000). Bhutan’s own import data and satellite imagery suggest that its operations truly ramped up in 2020. In May, when&nbsp;<em>Forbes</em>&nbsp;asked DHI to confirm that timing, a spokesperson for the fund would say only that a series of bitcoin investments were made “in a period in 2019.” They added that DHI was “currently net positive in our digital asset position.”&nbsp;<a href="https://www.cnbc.com/2022/12/23/bitcoin-price-calls-in-2022-how-the-market-got-it-wrong.html" target="_blank" rel="noreferrer noopener">Bitcoin’s price collapsed</a>&nbsp;from $69,000 in November 2021 to under $17,000 last December.</p>



<p><a href="https://thebhutanese.bt/bitcoin-powers-a-50-hike-for-public-servants/" target="_blank" rel="noreferrer noopener"><em>The Bhutanese</em></a>&nbsp;reported in June that DHI was planning to sell down its bitcoin stockpile to fund a 50% salary hike for government officials worth $72 million, as Bhutan faces an economic and political crisis with a trade deficit running down its&nbsp;<a href="https://thebhutanese.bt/bitcoin-powers-a-50-hike-for-public-servants/" target="_blank" rel="noreferrer noopener">hard currency reserve</a>&nbsp;to just $689 million. (This will cover just 14 months of imports while the country’s constitution requires 12 months of reserves.)</p>



<p>Several sources inside Bhutan told&nbsp;<em>Forbes</em>&nbsp;that the mines are now an open secret, though neither the Bhutanese government nor DHI have formally disclosed their existence. In emails to&nbsp;<em>Forbes</em>, DHI has consistently declined to comment on the scope or financing of its cryptocurrency regime.</p>



<p>DHI, which also operates the nation’s flagship airline, hydroelectric power plants and a cheese factory, does not provide any breakdown of revenues or investment in bitcoin mining in its annual accounts beyond noting it had raised foreign currency bonds to fund the project. Bhutan’s Ministry of Finance has been equally quiet. Outside academics and insiders who specialize in monitoring global bitcoin activity told&nbsp;<em>Forbes</em>&nbsp;that the country’s mining activities remain a conundrum. DHI claimed that it was “not involved in decisions as to the use of funds that DHI pays out to the Government.”</p>



<p>But the kingdom left a breadcrumb trail. Trade data accessed through the Observatory of Economic Complexity, an open source platform that visualizes global trade patterns, indicates that more than $220 million in chips used for bitcoin mining were shipped from China to Bhutan between 2021 and 2022. DHI declined to answer questions about them, citing “NDAs with contractual parties.” And Bhutan’s Ministry of Energy data reveals a massive 63% spike in power usage by industry in 2022.</p>


<div class="wp-block-image">
<figure class="aligncenter is-resized"><img decoding="async" src="https://imageio.forbes.com/specials-images/imageserve/655cdf7af7758dcd00342f24/Green-roofed-units-in-Trongsa--the-ancestral-seat-of-the-Wangchuck-dynasty-/0x0.jpg?format=jpg&amp;width=1440" alt="Green-roofed units in Trongsa, the ancestral seat of the Wangchuck dynasty." style="width:728px;height:auto"/><figcaption class="wp-element-caption">Green-roofed units in Trongsa, the ancestral seat of the Wangchuck dynasty.<small>IMAGE © PLANET LABS PBC</small></figcaption></figure></div>


<p>Meanwhile, Bhutan, which has for years sold off surplus energy to India, has massively ramped up imports, purchasing $20.7 million worth of electricity in 2023, according to&nbsp;<a href="https://kuenselonline.com/growing-domestic-demand-cuts-electricity-export-revenue-by-27-percent/" target="_blank" rel="noreferrer noopener"><em>Kuensel</em></a>. Government officials&nbsp;<a href="https://kuenselonline.com/growing-domestic-demand-cuts-electricity-export-revenue-by-27-percent/" target="_blank" rel="noreferrer noopener">recently</a>&nbsp;warned that this bill would balloon to $72 million over the coming winter with imports needed for five months to cover demand.</p>



<p>The Asian monsoon season means that Bhutan has always experienced droughts when its hydropower plants stand largely idle for three months, requiring it to import electricity from India’s largely coal-powered grid. Bhutan’s investment in bitcoin mining has, however, hinged on reliable access to cheap and clean energy.</p>



<p>“Bhutan prioritises power supply for domestic consumption. Industry and business — including projects related to bitcoin mining — are accorded lower priority,” DHI’s spokesperson said. In the winter months when hydropower generation typically decreases, “mining activity may be shut down subject to electricity availability.”</p>



<p>However, the four state-owned mines&nbsp;<em>Forbes</em>&nbsp;believes it has identified might not even be Bhutan’s largest. In 2022, the country entered a partnership with Singaporean bitcoin mining giant, Bitdeer, which made Bhutan the seat of its Asian expansion. In March,&nbsp;<a href="https://www.planet.com/stories/gedu-XyMPiYu4g" target="_blank" rel="noreferrer noopener">Bitdeer broke ground</a>&nbsp;on a mine in the southern town of Gedu, according to satellite imagery from Planet Labs, bringing 100 megawatts (MW) online in August, the company said. DHI, which owns Bhutan’s national power company, will be supplying electricity to the site. Bitdeer disclosed in a July update that it was already running 11,000 miners and had ordered an additional 15,000 machines. When completed, the 600 MW facility will consume more energy than the rest of the nation,&nbsp;<a href="https://asia.nikkei.com/Economy/Bhutan-puts-Bitcoin-mining-plan-in-motion-to-power-up-economy" target="_blank" rel="noreferrer noopener"><em>Nikkei</em></a>&nbsp;reported.</p>



<p>Recently, Bitdeer staff have been approaching investors at industry conferences such as Mining Disrupt for a $500 million “<a href="https://www.bloomberg.com/news/articles/2023-05-03/bhutan-plans-500-million-fund-for-bitcoin-btc-and-crypto-mining-in-himalayas" target="_blank" rel="noreferrer noopener">green crypto mining</a>” fund. DHI&nbsp;<a href="https://asia.nikkei.com/Economy/Bhutan-puts-Bitcoin-mining-plan-in-motion-to-power-up-economy" target="_blank" rel="noreferrer noopener">estimates</a>&nbsp;it will support 300 to 400 jobs and a new computing sector in Bhutan — echoing the country’s moonshot pitch for the defunct Education City. Bitdeer CEO Matt Linghui Kong told Forbes in a statement that the company is “getting a lot of interest” in the fund and is currently in negotiations with multiple investors who it declined to name.</p>



<p>The new fund and jobs could be desperately needed, with the Asian Development Bank forecasting that Bhutan’s economy would slow to 4.6% this&nbsp;<a href="https://kuenselonline.com/bhutans-economy-to-slow-down-to-4-6-percent-this-year-adb/" target="_blank" rel="noreferrer noopener">year</a>. The government’s own economists called for economic reforms and budget cuts to stave off a&nbsp;<a href="https://kuenselonline.com/bhutans-economy-to-slow-down-to-4-6-percent-this-year-adb/" target="_blank" rel="noreferrer noopener">financial crisis</a>.</p>



<p>For now, Bhutan’s appetite for blockchain-based solutions seems undimmed by these challenges. Earlier this month, on the king and queen’s 12th wedding anniversary, it unveiled an experimental&nbsp;<a href="https://kuenselonline.com/bhutan-national-digital-identity-application-launched-in-thimphu/" target="_blank" rel="noreferrer noopener">decentralized digital identity app</a>. Its first test subject and digital citizen? The crown prince.</p>



<p><em>With additional reporting and satellite imagery analysis by&nbsp;</em><a href="https://www.stimson.org/ppl/eyler/" target="_blank" rel="noreferrer noopener"><em>Brian Eyler</em></a><em>, a senior fellow at the Stimson Center and director of its Southeast Asia Program and its Energy, Water, and Sustainability Program.</em></p>


Bhutan

Bhutan Built A Bitcoin Mine On The Site Of Its Failed ‘Education City’


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>The price of Bitcoin fell below $26,000 Thursday—its lowest level since June—amid a broader crypto market slump after the&nbsp;<em>Wall Street Journal</em>&nbsp;<a href="https://www.wsj.com/tech/behind-the-curtain-of-elon-musks-secretive-spacex-revenue-growth-and-rising-costs-2c828e2b?mod=hp_lead_pos5" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;that SpaceX has taken a significant write-down on its Bitcoin holdings and sold the cryptocurrency.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>The price of the world’s most valuable cryptocurrency stood at $26,400 early on Friday, down nearly 8% in the previous 24 hours and 10% compared to last week.</p>



<p>Earlier on Thursday evening, the price of Bitcoin had dropped even lower, to around $25,400 before a slight recovery.</p>



<p>Ether, the world’s second-largest cryptocurrency, also took a similar hit and fell to $1,680—down 6.6% in the previous 24 hours.</p>



<p>Other major tokens like Binance’s BNB, Cardano and Solana are also down more than 6%</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>16%. That’s how much the price of Ripple’s XRP token has fallen in the past 24 hours, significantly worse than all other major cryptocurrencies. XRP’s steeper fall is a result of a federal judge’s&nbsp;<a href="https://www.wsj.com/livecoverage/stock-market-today-dow-jones-08-17-2023/card/judge-in-sec-ripple-case-opens-path-to-partial-appeal-after-july-ruling-Qj9YAsJsOP72ufpmQfCx" target="_blank" rel="noreferrer noopener">decision</a>&nbsp;on Thursday to allow the SEC to partially appeal a&nbsp;<a href="https://www.bloomberg.com/news/newsletters/2023-07-13/what-does-ripple-xrp-ruling-in-sec-case-mean-for-crypto" target="_blank" rel="noreferrer noopener">ruling</a>&nbsp;in its case against Ripple.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Thursday evening’s crypto selloff began after the&nbsp;<em>Wall Street Journal</em>&nbsp;<a href="https://www.wsj.com/tech/behind-the-curtain-of-elon-musks-secretive-spacex-revenue-growth-and-rising-costs-2c828e2b?mod=hp_lead_pos5" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;that Elon Musk’s SpaceX wrote down the value of its bitcoin holdings by a total of $373 million in the previous two calendar years. The company has also sold off its crypto holdings, the report added, although it is unclear when this sale happened. Musk and his companies have been a key mover of cryptocurrency prices, with the market often seeing significant movement based on the billionaire’s tweets. However, the SpaceX selloff follows a similar move by Musk’s other company, Tesla, which&nbsp;<a href="https://tesla-cdn.thron.com/static/EIUQEC_2022_Q2_Quarterly_Update_Deck_J8VLIK.pdf?xseo=&amp;amp;response-content-disposition=inline%3Bfilename%3D%22tsla-q2-22-update.pdf%22" target="_blank" rel="noreferrer noopener">disclosed in an earnings report last year</a>&nbsp;that it had sold 75% of its Bitcoin holdings.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.wsj.com/tech/behind-the-curtain-of-elon-musks-secretive-spacex-revenue-growth-and-rising-costs-2c828e2b?mod=hp_lead_pos5" target="_blank" rel="noreferrer noopener">A Rare Look Into the Finances of Elon Musk’s Secretive SpaceX</a>&nbsp;(Wall Street Journal)</p>



<p>Forbes Daily: Get our best stories, exclusive reporting and essential analysis of the day’s news in your inbox every weekday.Sign Up</p>



<p>By signing up, you accept and agree to our&nbsp;<a href="https://www.forbes.com/terms-and-conditions" target="_blank" rel="noreferrer noopener">Terms of Service</a>&nbsp;(including the class action waiver and arbitration provisions), and&nbsp;<a href="https://www.forbes.com/privacy" target="_blank" rel="noreferrer noopener">Privacy Statement</a>.</p>



<p><a href="https://www.bloomberg.com/news/articles/2023-08-18/bitcoin-plunge-spurs-liquidations-as-spacex-s-token-sale-weighs?srnd=premium" target="_blank" rel="noreferrer noopener">Bitcoin Plunge Spurs Liquidations as SpaceX’s Token Sale Weighs</a> (Bloomberg)</p>


Cryptocurrency Mining In Africa As Poor Sheperdherder Proves A Point

Bitcoin Drops To Lowest Level Since June Amid Wider Crypto Sell-Off

More Than Half Of All Bitcoin Trades Are Fake


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Bitcoin suffered its biggest drop in three months on Tuesday, falling nearly 10% in the wake of a worse-than-expected August inflation report, as investors fear the Federal Reserve will raise interest rates for a third time this year, potentially sparking a so-called&nbsp;<a href="https://www.forbes.com/advisor/investing/cryptocurrency/what-is-crypto-winter/">crypto winter</a>.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p><a href="https://www.forbes.com/digital-assets/assets/bitcoin-btc/?sh=4bd808ef4357">Bitcoin</a>&nbsp;continued a months-long fall Tuesday afternoon, dropping 9.35% to $20,304.73, following new Labor Department&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2022/09/13/inflation-climbed-83-in-august-slowing-for-second-month-straight-as-gas-prices-plunged/?sh=440a3b3266c5">data</a>&nbsp;that showed an 8.3% rise in consumer prices over the past 12 months ending in August, slowing for the second straight month, but still higher than economists had expected.</p>



<p>Bitcoin had been steadily climbing after briefly&nbsp;<a href="https://www.forbes.com/sites/brianbushard/2022/08/27/bitcoin-drops-below-20000-amid-recession-fears/?sh=11693c4f77f4">dropping</a>&nbsp;below $20,000 on August 27, but is less than a third of what it was at its peak of $67,037 last November.</p>



<p>It’s the largest drop since&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2022/08/18/crypto-winter-watch-all-the-big-layoffs-record-withdrawals-and-bankruptcies-sparked-by-the-2-trillion-crash/?sh=6ec3191f3309">June</a>, when bitcoin fell from $28,636 on June 11 to $20.556 on June 16—it continued its downward trend to a low of $19,327 on July 1, and economists warned that a looming recession could erase the progress cryptocurrencies had made during the Covid-19 pandemic, when shares skyrocketed.</p>



<p>Elon Musk-backed cryptocurrency&nbsp;<a href="https://www.forbes.com/digital-assets/assets/dogecoin-doge/?sh=2c9bed213ab3">Dogecoin</a>&nbsp;also fell 5.85% Tuesday, trading at 6 cents, while&nbsp;<a href="https://www.forbes.com/digital-assets/assets/ether-eth/?sh=20ebec4a7b0e">Ether</a>&nbsp;dropped $7.96% to $1,586.92, and crypto broker&nbsp;<a href="https://www.forbes.com/companies/coinbase/?sh=d9d9449699f6">Coinbase</a>&nbsp;dropped 8.61%, to $75.44.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>Although low interest rates and Covid-19-related government stimulus checks fueled bitcoin’s rise in 2020, two rounds of interest rate hikes from the Federal Reserve this summer made investing riskier. Last month, Federal Reserve Chair Jerome Powell&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2022/08/26/down-plunges-1000-points-after-fed-chair-powell-warns-inflation-requires-restrictive-policy-for-some-time/?sh=3d6e98691dd2">warned</a>&nbsp;soaring inflation might “take some time” to ease and require the Fed to act “forcefully.” In the week ending June 17,&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2022/08/18/crypto-winter-watch-all-the-big-layoffs-record-withdrawals-and-bankruptcies-sparked-by-the-2-trillion-crash/?sh=6ec3191f3309">outflows</a>&nbsp;from bitcoin totaled roughly $423 million, after falling to an 18-month low, according to crypto firm CoinShares.</p>



<h2 class="wp-block-heading">TANGENT</h2>



<p>Stocks&nbsp;<a href="https://www.forbes.com/sites/madelinehalpert/2022/09/13/dow-plunges-900-points-after-hotter-than-expected-inflation-report/?sh=4932c9342a63">tumbled</a>&nbsp;throughout the day Tuesday in the wake of the Labor Department’s consumer price index report, with the Dow Jones dropping 3.87% to $31,163.99 and the tech-heavy Nasdaq falling 3.76% to $61.70 as of Tuesday afternoon, erasing recent stock gains as the price of food, medical care and shelter increased, despite falling gas prices.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/madelinehalpert/2022/09/13/dow-plunges-900-points-after-hotter-than-expected-inflation-report/?sh=65ab9c5f2a63">Dow Sinks 900 Points After Inflation Report Shows Stubbornly High Prices</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/brianbushard/2022/08/27/bitcoin-drops-below-20000-amid-recession-fears/?sh=11693c4f77f4">Bitcoin Drops Below $20,000 Amid Recession Fears</a>&nbsp;(Forbes)</p>



<p><a href="https://www.cnbc.com/2022/09/13/bitcoin-slumps-7percent-reversing-gains-after-inflation-report-disappoints.html" target="_blank" rel="noreferrer noopener">Bitcoin slumps 7% after inflation report causes investors to flee risky assets</a>&nbsp;(CNBC)</p>



<p><strong><em>By Brian Bushard, Forbes Staff</em></strong></p>


Digital Composite Image Of Cropped Hands Using Computer Keyboard By Bitcoin Icons

Bitcoin Drops Nearly 10% After Inflation Report—Its Biggest Drop Since June

Business fund investor planning for investment in crisis

Crypto Winter Watch: All The Big Layoffs, Record Withdrawals And Bankruptcies Sparked By The $2 Trillion Crash


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>The Ukraine government and organizations supporting its fight against a Russia invasion have amassed more than $52 million in cryptocurrency donations—and already deployed at least $14 million—amid an influx of support as the country starts accepting a wider array of tokens and digital assets, including proceeds from the sale of one of the most expensive non-fungible tokens in history.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>Wallet addresses linked to the Ukrainian government and nongovernmental organizations supporting its military have received nearly 60,000 donations since Russian President Vladimir Putin&nbsp;<a href="https://www.forbes.com/sites/joewalsh/2022/02/23/russia-orders-special-military-operation-in-ukraine/?sh=6145da562321">ordered</a>&nbsp;an invasion of Ukraine early Thursday, including an all-time high of more than 10,000 on Wednesday morning, according to blockchain analytics firm Merkle Science.</p>



<p>The donations include $6.5 million in proceeds from a&nbsp;<a href="https://www.coindesk.com/tech/2022/03/02/ukrainian-flag-nft-raises-675m-for-countrys-war-efforts/" target="_blank" rel="noreferrer noopener">Ukrainian flag NFT</a>&nbsp;auctioned off Wednesday by the Ethereum-based group Ukraine DAO—marking the tenth most expensive NFT ever sold, according to Tom Robinson, chief scientist at blockchain analytics company Elliptic.</p>



<p>As of 12 p.m., wallet addresses directly linked to the Ukrainian government have received about $34 million in bitcoin, ether, tron and polkadot, including $5.8 million from Polkadot founder Gavin Wood and a highly sought-after CryptoPunk NFT worth over $200,000, Elliptic&nbsp;<a href="https://www.elliptic.co/blog/live-updates-millions-in-crypto-crowdfunded-for-the-ukrainian-military" target="_blank" rel="noreferrer noopener">notes</a>; the government also started accepting dogecoin Wednesday morning.</p>



<p>On Twitter Wednesday morning, Ukraine’s Kuna Exchange founder Michael Chobanian, whose firm has been helping the country manage the cryptocurrency received,&nbsp;<a href="https://twitter.com/ChobanianMike" target="_blank" rel="noreferrer noopener">noted</a>&nbsp;about $14 million worth of the donations had already been used, with a majority of spending happening exclusively in cryptocurrency transactions.</p>



<p>In an interview with CoinDesk on Tuesday, Chobanian <a href="https://www.coindesk.com/policy/2022/03/01/ukraines-defense-ministry-decides-where-crypto-funds-are-spent/" target="_blank" rel="noreferrer noopener">said</a> funds have gone to Ukraine&#8217;s military and special forces to help purchase equipment, food and gas, but he stopped short of providing additional specifics &#8220;due to a level of secrecy involved.&#8221;</p>



<p>He also said ether and bitcoin—which have represented about 69% of donations, per Merkle Science—were his “preferred” method for spending, given their ease of convertibility.&nbsp;</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>Ukrainian officials took to Twitter on Saturday to&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2022/02/26/ukraine-receives-4-million-in-crypto-donations-within-hours-including-19-million-tied-to-julian-assange-nft-auction/?sh=754901853062">ask</a>&nbsp;for cryptocurrency donations to help in the fight against the Russian military after a number of nongovernmental organizations and volunteer groups successfully raised more than $5 million within days. Coming a week after the Ukrainian parliament&nbsp;<a href="https://www.cnbc.com/2021/09/08/ukraine-legalizes-bitcoin-and-cryptocurrencies.html" target="_blank" rel="noreferrer noopener">passed</a>&nbsp;a bill to legalize cryptocurrencies, the donations to Ukraine “add to a trend of nation-states turning to crypto assets as a means of raising funds,” Elliptic noted in a&nbsp;<a href="https://www.elliptic.co/blog/ukrainians-turn-to-bitcoin-to-crowdfund-the-fight-against-russia" target="_blank" rel="noreferrer noopener">report</a>&nbsp;this month. “Iran is using bitcoin mining as a way to monetize its energy reserves, while North Korea is&nbsp;<a href="https://www.bbc.com/news/world-asia-60281129" target="_blank" rel="noreferrer noopener">believed</a>&nbsp;to be stealing cryptocurrency to support its missile development program.”</p>



<h2 class="wp-block-heading">WHAT WE DON&#8217;T KNOW</h2>



<p>Though Ukraine’s government has made use of a large portion of proceeds, it&#8217;s still unclear whether it has yet sold any of the NFTs it’s received. The CryptoPunk donated Tuesday evening reportedly last sold for about $31,300 in February 2021, roughly one sixth of its latest estimated value.</p>



<h2 class="wp-block-heading">SURPRISING FACT</h2>



<p>Despite the booming support in cryptocurrency, the large majority of aid is still expected to come in the form of traditional currency. On Tuesday, the United Nations put out a&nbsp;<a href="https://www.unhcr.org/news/press/2022/3/621e0aa74/un-seeks-us17-billion-humanitarian-needs-soar-ukraine-neighbouring-countries.html" target="_blank" rel="noreferrer noopener">call</a>&nbsp;to raise $1.7 billion for humanitarian support in Ukraine and for refugees in neighboring countries.&nbsp;</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.coindesk.com/policy/2022/03/01/ukraines-defense-ministry-decides-where-crypto-funds-are-spent/" target="_blank" rel="noreferrer noopener">Ukraine&#8217;s Defense Ministry Decides Where Crypto Funds Are Spent</a>&nbsp;<em>(CoinDesk)</em>&nbsp;</p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2022/02/26/ukraine-receives-4-million-in-crypto-donations-within-hours-including-19-million-tied-to-julian-assange-nft-auction/?sh=754901853062">Ukraine Receives $4 Million In Crypto Donations Within Hours—Including $1.9 Million Tied To Pak, Julian Assange NFT Collection</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/forbesstaff/2022/02/25/bitcoin-donations-to-ukrainian-army-surpass-4-million/">Bitcoin Donations To Ukrainian Army Surpass $4 Million</a>&nbsp;<em>(Forbes)</em></p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2022/02/28/russia-may-use-cryptocurrency-to-try-and-evade-sanctions-but-heres-why-it-will-be-hard/">Russia May Use Cryptocurrency To Try And Evade Sanctions—But Here&#8217;s Why That Will Be Hard</a>&nbsp;<em>(Forbes)</em></p>



<p> </p>


Sakura Bitcoin Exchange Inc. Store in Shibuya

Crypto Donations To Ukraine Top $52 Million As Funds Pour In From Bitcoin, Ether, PolkaDot And NFTs


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Bitcoin tumbled 16% overnight Saturday amid a wider plunge of cryptocurrencies as investors pared riskier bets with financial markets unsettled by the spread of the omicron coronavirus variant.</p>



<h2 class="wp-block-heading">KEY FACTS</h2>



<p>Bitcoin, the No. 1 cryptocurrency by market value, was trading at $47,558.47 as of 9:30 a.m. Saturday, down 16% from a day earlier, according to<a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">&nbsp;CoinGecko</a>.</p>



<p>It had fallen as much as 20% before recovering some of its losses.</p>



<p>As of Saturday morning, Ether, the second-largest digital token, was off 13.1%; Binance Coin, the third-largest token, was down 11%; Solana, the fifth-largest token, had given up 17.2%, according to<a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">&nbsp;CoinGecko</a>.</p>



<p>Meme coin Dogecoin <a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">shed</a> nearly a fifth of its market value and Shiba Inu coin declined 14.9%.</p>



<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>The drop in cryptocurrencies came after a volatile week in financial markets. The omicron variant has led countries around the world to restrict travel amid worries that vaccines may not be as effective against the strain. Fed Chairman Jerome Powell indicated earlier this week the central bank could accelerate the tapering of its pandemic bond-buying program, with inflation looking more persistent than policy makers had believed.</p>



<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.wsj.com/articles/bitcoin-price-tumbles-after-wall-street-selloff-11638621435" target="_blank" rel="noreferrer noopener">Bitcoin Price Tumbles After Wall Street Selloff</a>&nbsp;(<em>Wall Street Journal</em>)</p>



<p><a href="https://www.bloomberg.com/news/articles/2021-12-04/bitcoin-plunges-more-than-20-amid-tumble-in-cryptocurrencies?sref=X2kHL3Gj" target="_blank" rel="noreferrer noopener">Bitcoin Plunges Over 20% in Another Sign of Global Market Nerves</a> (Bloomberg)</p>



<p><em><strong>By Lisa Kim, Forbes Staff</strong></em></p>


Bitcoin and candlestick chart

Bitcoin And Other Digital Tokens Plunge Amid Volatility In Financial Markets


<p><strong>TOPLINE</strong> Fast food giant McDonald’s has started accepting bitcoin as a form of payment in El Salvador after the country became the first to adopt the cryptocurrency as legal tender Tuesday.&nbsp;</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>California-based bitcoin payment processor OpenNode confirmed to&nbsp;<em>Forbes</em>&nbsp;it has formed a partnership with McDonald’s to allow it to begin accepting bitcoin (<em>Editor&#8217;s Note:</em>&nbsp;OpenNode earlier told&nbsp;<em>Forbes</em>&nbsp;that Panda Express was also using bitcoin, but has since said that was an error and we have clarified the piece).</p>



<p>Bitcoin can now be used to pay at all 19 McDonald’s locations in the country, as well as online and through the delivery app, OpenNode said.&nbsp;</p>



<p>Though this appears to be the first major American company to adjust to El Salvador’s cryptocurrency initiative, OpenNode spokesperson Ryan Flowers said his team is “currently onboarding multiple multi-billion dollar businesses based in El Salvador.”</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



<p>“Just walked into a McDonald’s in San Salvador to see if I could pay for my breakfast with bitcoin … fully expecting to be told no,” cryptocurrency journalist Aaron van Wirdum wrote in a tweet Tuesday morning. “But low and behold.”&nbsp;</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="en" dir="ltr">Just walked into a McDonald&#39;s in San Salvador to see if I could pay for my breakfast with bitcoin, tbh fully expecting to be told no.<br><br>But low and behold, they printed a ticket with QR that took me to a webpage with Lightning invoice, and now I&#39;m enjoying my desayuno traditional! <a href="https://t.co/NYCkMNbv7U">pic.twitter.com/NYCkMNbv7U</a></p>&mdash; Aaron van Wirdum (@AaronvanW) <a href="https://twitter.com/AaronvanW/status/1435236902274220040?ref_src=twsrc%5Etfw">September 7, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h2 class="wp-block-heading">KEY BACKGROUND&nbsp;</h2>



<p>El Salvador on Tuesday became the first sovereign government to adopt bitcoin as legal tender alongside its existing currency, the U.S. dollar. It allows the country’s residents to pay taxes and other debts using bitcoin, and for businesses to widen their payment options to the cryptocurrency. However, El Salvador’s proclaimed “Bitcoin Day” got off to a rocky start as the cryptocurrency market&nbsp;<a href="https://www.forbes.com/sites/jonathanponciano/2021/09/07/crypto-flash-crash-wipes-out-400-billion-in-market-value-on-el-salvadors-bitcoin-day/?sh=3fd3b7154fb9">plunged</a>, with the price of bitcoin falling from over $52,000 to $42,830, its lowest level in nearly three weeks on Tuesday morning. Bitcoin recovered to just under $46,957 by 1:45 EDT, still 9% below a day earlier.</p>



<h2 class="wp-block-heading">FURTHER READING&nbsp;</h2>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2021/09/07/el-salvador-taps-billionaire-backed-bitcoin-unicorn-in-the-cryptocurrencys-historic-legal-tender-debut/?sh=42a359be4fac">“El Salvador Taps billionaire-Backed Bitcoin Unicorn In Historic Legal Tender Debut”</a>&nbsp;(Forbes)&nbsp;</p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2021/09/07/crypto-flash-crash-wipes-out-400-billion-in-market-value-on-el-salvadors-bitcoin-day/?sh=3fd3b7154fb9">“Crypto Flash Crash Wipes Out $400 Billion In Market Value On Bitcoin Day Before El Salvador’s President ‘Buys The Dip’”</a>&nbsp;(Forbes)</p>


El Salvador Sells $1 Billion In Bonds To Help Fight Pandemic Spread

McDonald’s Starts Accepting Bitcoin In El Salvador


<p><strong>TOPLINE</strong> El Salvador acquired roughly $21 million worth of bitcoin on Monday, President Nayib Bukele announced, buoying the crypto market ahead of making history Tuesday by becoming the first country in the world to formally adopt the digital currency as legal tender. </p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>El Salvador&nbsp;<a href="https://twitter.com/nayibbukele/status/1434968475928248331?s=20" target="_blank" rel="noreferrer noopener">bought</a>&nbsp;its first 400 bitcoins in two lots on Monday—worth an estimated $21 million based on bitcoin’s value at the time of the announcement—according to a series of tweets by Bukele.</p>



<p>Bukele said the country had plans to buy “a lot more” when announcing the first salvo of 200 bitcoins.</p>



<p>The purchase comes as El Salvador makes history as the first country to make bitcoin legal tender Tuesday.</p>



<p>The law enacting the change,&nbsp;<a href="https://www.forbes.com/sites/roberthart/2021/06/09/el-salvador-makes-history-as-worlds-first-country-to-make-bitcoin-legal-tender/?sh=867e05eeaa3b">approved</a>&nbsp;by an overwhelming majority in June, places bitcoin alongside the U.S. dollar as El Salvador’s national currency.</p>



<p>Bukele said he hopes the initiative will boost foreign investment, financial inclusion and generate jobs, and bitcoin can be used to make purchases and pay tax.&nbsp;</p>



<p>The value of bitcoin jumped around 2% to just under $53,000 on Tuesday morning following Bukele’s tweets—though the volatile token dipped around 3% later that morning—its highest value since the cryptocurrency market crashed three months ago.     </p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="en" dir="ltr">El Salvador just bought 200 new coins.<br><br>We now hold 400 <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#bitcoin</a><a href="https://twitter.com/hashtag/BitcoinDay?src=hash&amp;ref_src=twsrc%5Etfw">#BitcoinDay</a> 🇸🇻</p>&mdash; Nayib Bukele (@nayibbukele) <a href="https://twitter.com/nayibbukele/status/1435023474494410753?ref_src=twsrc%5Etfw">September 6, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<h2 class="wp-block-heading">KEY BACKGROUND</h2>



<p>El Salvador’s decision to adopt bitcoin as legal tender is controversial and questions over logistics have been raised both at home and abroad. Polls&nbsp;<a href="https://www.ft.com/content/56588fee-dca8-450d-a848-80d29f02f45e" target="_blank" rel="noreferrer noopener">suggest</a>&nbsp;most Salvadorans are against the idea and many have taken to the streets to&nbsp;<a href="https://news.sky.com/story/bitcoin-protests-and-confusion-in-el-salvador-as-country-prepares-to-make-cryptocurrency-legal-tender-12400516" target="_blank" rel="noreferrer noopener">protest</a>&nbsp;the change. The International Monetary Fund (IMF) said its plans may&nbsp;<a href="https://www.bloomberg.com/news/articles/2021-08-27/bitcoin-helped-tank-el-salvador-bonds-now-they-re-rising-back" target="_blank" rel="noreferrer noopener">threaten</a>&nbsp;an anticipated deal with the country, while some economists&nbsp;<a href="https://www.theguardian.com/world/2021/aug/30/scepticism-grows-in-el-salvador-over-pioneering-bitcoin-gamble" target="_blank" rel="noreferrer noopener">warn</a>&nbsp;of the country becoming a&nbsp;<a href="https://www.bloomberg.com/news/articles/2021-06-09/el-salvador-s-bitcoin-bombshell-what-does-it-mean-quicktake" target="_blank" rel="noreferrer noopener">haven</a>&nbsp;for financial crime and there are widespread concerns over the potential&nbsp;<a href="https://www.forbes.com/advisor/investing/bitcoins-energy-usage-explained/#:~:text=That's%20roughly%20enough%20electricity%20to,Digiconomist's%20Bitcoin%20Energy%20Consumption%20Index.">environmental impact</a>&nbsp;of bitcoin, which uses huge amounts of electricity. Some of these criticisms—notably environmental impact and crime, which certainly are significant problems—are often raised as if they are insurmountable and without reference to&nbsp;<a href="https://fortune.com/2021/03/28/crypto-bitcoin-carbon-energy-consumption/" target="_blank" rel="noreferrer noopener">efforts</a>&nbsp;to remedy the issue or context. Bitcoin could be mined using electricity generated from&nbsp;<a href="https://www.forbes.com/sites/robday/2021/03/10/bitcoin-could-be-a-climate-disaster-but-it-doesnt-have-to-be-one/?sh=22580ba73a65">clean sources</a>, for example, and crypto’s popularity among criminals makes up a small&nbsp;<a href="https://cointelegraph.com/news/banning-cryptocurrencies-to-counter-crime-is-a-nonsensical-excuse" target="_blank" rel="noreferrer noopener">fraction</a>&nbsp;of illicit financial transactions. Many are excited about the change and Bukele has been open in his hopes it will attract a new cohort of entrepreneurs to the country.&nbsp;</p>



<h2 class="wp-block-heading">BIG NUMBER</h2>



<p>$30. That’s how much each citizen downloading the government bitcoin wallet, Chivo, will receive in bitcoin. </p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="es" dir="ltr">Justo el día más importante de mi vida. 🙄 <a href="https://t.co/n46jprobT7">https://t.co/n46jprobT7</a></p>&mdash; chivo (@chivowallet) <a href="https://twitter.com/chivowallet/status/1435128539553095680?ref_src=twsrc%5Etfw">September 7, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<h2 class="wp-block-heading">FURTHER READING</h2>



<p><a href="https://www.ft.com/content/56588fee-dca8-450d-a848-80d29f02f45e" target="_blank" rel="noreferrer noopener">El Salvador becomes a crypto laboratory with bitcoin gamble</a>&nbsp;(FT)</p>



<p><a href="https://www.forbes.com/sites/roberthart/2021/06/09/el-salvador-makes-history-as-worlds-first-country-to-make-bitcoin-legal-tender/?sh=867e05eeaa3b">El Salvador Makes History As World’s First Country To Make Bitcoin Legal Tender</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/roberthart/2021/06/14/tanzania-considers-crypto-and-boosts-bitcoin-as-nations-line-up-behind-el-salvador-to-embrace-decentralized-finance/?sh=15a7e4434fc3">Tanzania Considers Crypto—And Boosts Bitcoin—As Nations Line Up Behind El Salvador To Embrace Decentralized Finance</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/jonathanponciano/2021/09/06/solana-leads-massive-altcoin-rally-as-jpmorgan-warns-crypto-markets-are-looking-bubbly-again/?sh=7828d2c020fa">Solana Leads Massive Altcoin And Bitcoin Rally As JPMorgan Warns Crypto Markets Are Looking Bubbly Again</a> (Forbes)</p>



<p><strong><em>By Robert Hart, Forbes Staff</em></strong></p>


President Bukele Speaks To Congress Since Ousting Attorney General And Supreme Court

El Salvador Goes On A $21 Million Crypto Buying Spree As Bitcoin Becomes Legal Tender


<p><strong>Five years ago, from her prison cell, trans whistleblower Chelsea Manning sketched out a new way to protect online privacy. Now, she is helping an MIT-affiliated cryptographer bring the next generation of privacy software online.</strong></p>



<p>Chelsea Manning’s long blonde hair catches in a cool summer breeze as she turns the corner into Brooklyn’s Starr Bar, a dimly lit counter-cultural haunt in the heart of the hipster enclave of Bushwick. The 33-year-old best known for leaking hundreds of thousands of top-secret government documents to Julian Assange in 2010, then coming out as a transgender woman, walks past a poster depicting sea turtles, humans and geese merging to form the outline of a dove. Beside the image are the words, “Your Nations Cannot Contain Us.”</p>



<p>Dressed in a black suit and wearing a silver Omega watch, she makes her way to a small wooden table illuminated by a shaft of sunlight. She orders a coke. Contrary to what one might expect, this whistleblower turned trans-icon looks uncomfortable in the hip surroundings. A fan reverently approaches her and welcomes her back. “This is my life,” she says after he leaves, expressing both gratitude for the well wishes, and lamenting the loss of her privacy. “I’m not just famous, I’m in the history books.”</p>



<p>While serving the longest sentence ever doled out to a whistleblower after she used the privacy protecting Tor Network to anonymously leak 700,000 government documents, she used her time in incarceration to devise a better way to hide the tracks of other online users. Knowing that the non-profit Tor Project she used to send files to Wikileaks had become increasingly vulnerable to the prying eyes of intelligence agencies and law enforcement, she sketched out a new way to hide internet traffic using blockchain, the technology behind bitcoin, to build a similar network, without troublesome government funding. The entire plan was hatched in a military prison, on paper.</p>



<p>The privacy network industry, including the virtual-private networks (VPNs) familiar to many corporate users, generated $29 billion in revenue in 2019, and is expected to triple to $75 billion by 2027. Fixing the known weaknesses of these networks is about more than just protecting future whistleblowers and criminals. Private networks are also vital for big businesses who want to protect trade secrets. Manning thinks that not-for-profit efforts like Tor, which relies on U.S. government funding and a worldwide network of volunteers to run its anonymous servers, aren’t robust enough. “Nonprofits are unsustainable,” says Manning casually, sipping from her Coke. “They require constant upholding by large capital funds, by large governments.”</p>



<figure class="wp-block-image"><img decoding="async" src="https://thumbor.forbes.com/thumbor/960x0/https%3A%2F%2Fspecials-images.forbesimg.com%2Fimageserve%2F61252ad46f47d2194c1d0d80%2F20210621-162555%2F1960x0.jpg%3Ffit%3Dscale" alt="20210621_162555"/><figcaption>Nym Technologies founder Harry Halpin sips on a “homojito” at Brooklyn’s LGBTQ-friendly Starr Bar, as he and Chelsea Manning discuss their nascent partnership, formalized in July.&nbsp;<small>MICHAEL DEL CASTILLO FOR FORBES</small></figcaption></figure>



<p>By January 2017, she was seven-years into a 35-year sentence at Fort Leavenworth, home to the likes of former Army Major Nidal Hasan, who killed 14 fellow soldiers in 2009. As President Barack Obama prepared to leave office, he granted Manning an unconditional commutation of her sentence. Newly tasting freedom, she was contacted by Harry Halpin, the 41-year-old mathematician who worked for World Wide Web inventor Tim Berners-Lee at MIT from 2013 to 2016 helping standardize the use of cryptography across web browsers.</p>



<p>Halpin asked Manning to look for security weaknesses in his new privacy project, which eventually became Nym, a Neuchâtel, Switzerland-based crypto startup. Halprin founded Nym in 2018 to send data anonymously around the Internet using the same blockchain technology underlying Bitcoin. To date, Nym has raised some $8.5 million from a group of crypto investors including Binance, Polychain Capital and NGC Ventures. The firm now employs 10 people and is using its latest round of capital to double its team size.</p>



<p>Halpin was impressed by Manning’s technical knowledge. More than just a famous leaker who happened to have access to secret documents, Manning struck Halpin as someone with a deep technological understanding of how governments and big business seek to spy on private messages.</p>



<p>“We&#8217;ve very rarely had access to people who really were inside the machine, who can explain what they believe the actual capabilities of these kinds of adversaries are, what kinds of attacks are more likely,” says Halpin. “She&#8217;ll help us fix holes in our design.”</p>



<hr class="wp-block-separator"/>



<p>Born in Oklahoma on December 17, 1987, Manning had her first exposure to network traffic analysis in high school. She and her Welsh mother Susan had moved to Haverfordwest, Wales in 2001, when Manning was 13. In a computer class there, in 2003, she first learned to circumvent blocks put in place by the school to prevent students downloading certain files—and got caught pirating music by Linkin Park, Jay-Z and others. The headmaster had been watching remotely.&nbsp;“It was the first moment where it dawned on me, ‘Oh, this is a thing. You can do this.’”</p>



<p>By 2008 Manning’s interest in what’s called network traffic analysis first brought her to The Onion Router (Tor), a volunteer network of computers that sits on top of the internet and helps hide a user’s identity. The non-profit organization leveraged something called onion routing which hides messages beneath layers of encryption. Each message is only decipherable by a different member of the network, which routes the message to the next router, ensuring only the sender and receiver can decipher it all. Ironically, the network colloquially known as the Dark Web, and used by Manning to send classified documents to WikiLeaks, was developed by the U.S. government to protect spies and other government agents operating online.</p>



<div class="wp-block-image"><figure class="aligncenter is-resized"><img loading="lazy" decoding="async" src="https://thumbor.forbes.com/thumbor/960x0/https%3A%2F%2Fspecials-images.forbesimg.com%2Fimageserve%2F6123cdbdc986a89368d58199%2FChelsea-MAnning-by-Jamel-Toppin-for-Forbes-DSC7733%2F1960x0.jpg%3Ffit%3Dscale" alt="Chelsea MAnning by Jamel Toppin for Forbes_DSC7733" width="710" height="887"/><figcaption>Much of Manning’s consulting work comes with mutually binding non-disclosure agreements that make it difficult for her to market her business.&nbsp;<small>JAMEL TOPPIN FOR FORBES</small></figcaption></figure></div>



<p>At around the same time Manning discovered Tor, she joined the U.S. Army. As a young intelligence analyst her job was to sort through classified databases in search of tactical patterns. After becoming disillusioned with what she learned about the fighting in Iraq and Afghanistan, she plugged into her computer, put in her headphones, and loaded a CD with music from another of her favorite musicians: Lady Gaga. Instead of listening to the album though, she erased it and downloaded what would eventually be known as the largest single leak in U.S. history, ranging from sensitive diplomatic cables to video showing U.S. soldiers killing civilians, including two Reuters journalists.</p>



<p>In prison she studied carpentry, but she never stopped exploring her earlier vocation. “I&#8217;m a certified carpenter,” she says. “But when I wasn&#8217;t doing that, I would read a lot of cryptography papers.” In 2016, she was visited in prison by Yan Zhu, a physicist from MIT who would later go on to become chief security officer of Brave, a privacy-protecting internet browser that pays users in cryptocurrency in exchange for agreeing to see ads.</p>



<p>She and Zhu were concerned with vulnerabilities they saw in Tor, including its dependence on the good will of governments and academic institutions. In 2020 53% of its $5 million&nbsp;<a href="https://blog.torproject.org/transparency-openness-and-our-2019-and-2020-financials" target="_blank" rel="noreferrer noopener">funding</a>&nbsp;came from the US government and 27% came from other Western governments, tax-subsidized non-profits, foundations and companies. Worse, in their opinion, the technology to break privacy was being funded at a higher rate than the technology to protect it.</p>



<p>“As the dark web, or Tor, and VPN, and all these other services became more prolific, the tools to do traffic analysis had dramatically improved,” says Manning. “And there’s sort of been a cold war that&#8217;s been going on between the Tor project developers, and a number of state actors and large internet service providers.” In 2014 the FBI learned how to decipher Tor data. By 2020 a single user reportedly controlled enough Tor nodes to steal bitcoin transactions initiated over the network.</p>



<p>Using two lined pieces of composition paper from the prison commissary, Manning drew a schematic for Zhu of what she called, Tor Plus. Instead of just encrypting the data she proposed to inject the information equivalent of noise into network communications. In the margins of the document she even postulated that blockchain, the technology popularized by bitcoin, could play a role. In the notes below she wrote the words: “New Hope.”</p>



<p>Then, this February Halpin woke her up late one night with an encrypted text message asking her to take a look at a paper describing Nym. Developed completely separately from Manning’s jailhouse sketch, the paper detailed an almost identical system disguising real messages with white noise. A hybrid of the decentralized Tor that relies on donor support, and a corporate owned VPN that requires trusting a company, this network promised the best of both worlds. Organized as a for-profit enterprise, Nym would pay people and organizations running the network in cryptocurrency. “The next day I cleared my schedule,” she says. By July she’d signed a contract with Nym to run a security audit that could eventually include a closer look at the code, the math, and the defensive scenarios against government attacks.</p>



<p>Unlike Tor, which uses the onion router to obscure data sent on a shared network, Nym uses what’s called a mix network, or mixnet, that not only shuffles the data, but alternates the methods by which the data is shuffled making it nearly impossible to reassemble.</p>



<p>“Imagine you have a deck of cards,” says Manning. “What&#8217;s really unique here is that what&#8217;s being done is that you are taking essentially a deck of cards, and you are taking a bunch of other decks of cards, and you are shuffling those decks of cards as well.”</p>



<p>And, as it, turns out, not every government is comfortable using a privacy network largely funded by the U.S. government. Despite Halpin’s commitment to build a network that doesn’t require government funding to operate, in July Nym accepted a 200,000 euro grant from the European Commission, to help get it off the ground.</p>



<blockquote class="wp-block-quote is-style-large is-layout-flow wp-block-quote-is-layout-flow"><p>&#8220;Knowing that Wikileaks had become increasingly vulnerable to prying eyes from intelligence agencies and law enforcement, she sketched out a new way to hide internet traffic using blockchain, the technology behind bitcoin.&#8221;</p></blockquote>



<p>“The problem is that there was never a financial model that made any sense to build this technology,” says Halpin. “There was no interest from users, venture capital, and big companies. And now you&#8217;re seeing what we consider a once in a lifetime alignment of the stars, where there&#8217;s interest in privacy from venture capital. There&#8217;s an interest in privacy for users. There&#8217;s interest in privacy from companies. And most of the interest from the venture capital side and the company side, and the user side has been driven by cryptocurrency. And this was not the case even five years ago.”</p>



<p>Even Tor itself is exploring how to use blockchain to create the next generation of its software. After receiving 26% of its total donations in cryptocurrency last year, the Tor Project received a $670,000 grant from advocates of the zcash cryptocurrency and sold a non-fungible token (NFT) representing the first .onion address for $2 million in May, 2021. Now, Tor’s cofounder, Nick Mathewson&nbsp;says the Seattle-based non-profit is exploring some of the same techniques developed by cryptocurrency companies to create Tor credentials that let users develop a reputation without revealing their identity. What he calls an “anonymous blacklistable credential.”</p>



<p>“If you&#8217;ve got a website, and somebody does something you don&#8217;t like, you can ban them,” says Mathewson. “You can ban the person who did that activity without ever finding out what other activities they did or figuring out who you banned.”</p>



<p>Though Mathewson is interested in the possibility of using blockchain to upgrade Tor itself, he warns that making privacy infrastructure for-profit could lead to more money being spent on marketing than product development. “Our mission is to encourage the use of privacy technology,” says Mathewson. “I don&#8217;t really care whether that privacy tool is the one I made or not.”</p>



<p>Ironically, the same cryptocurrency culture Halpin says brought so much attention from investors, deterred Manning from getting involved earlier. Though she counts herself among the earliest bitcoin adopters, claiming to have mined cryptocurrency shortly after Satoshi Nakomoto activated it in 2009, she sold her bitcoin last year for decidedly non-monetary reasons.</p>



<p>“I am not a fan of the culture around blockchain and cryptocurrency,” she says. “There&#8217;s a lot of large personalities that are very out there like your Elon Musk&#8217;s and whatnot,” she says. “And it&#8217;s very, like, ‘Oh, we&#8217;re going to get rich off of blockchain.’ It&#8217;s very <em>nouveau riche</em>. Like a new-yuppies-bro-culture that&#8217;s surrounded it. It has gotten a little bit better in some corners. But I think that culture is what I&#8217;m talking about. It&#8217;s like Gordon Gekko, but blockchain.”</p>



<p><em><strong>By Michael del Castillo, Forbes Staff</strong></em></p>


Chelsea Manning Appears Before Second Grand Jury In Wikileaks Investigation

Chelsea Manning Is Back, And Hacking Again, Only This Time For A Bitcoin-Based Privacy Startup


<p><strong>TOPLINE </strong>Billionaire Tesla CEO Elon Musk stirred up the cryptocurrency market with his Twitter account again Sunday when he appeared to hint Tesla would cast out its bitcoin holdings, a move that saw the cryptocurrency plunge.</p>



<h3 class="wp-block-heading" id="h-key-facts">KEY FACTS</h3>



<p>When a Twitter user&nbsp;<a href="https://twitter.com/CryptoWhale/status/1393981793813078017?s=20" target="_blank" rel="noreferrer noopener">speculated</a>&nbsp;Sunday Musk would ditch bitcoin over the hate the billionaire had received after announcing Tesla would&nbsp;<a href="https://www.forbes.com/sites/joewalsh/2021/05/12/tesla-will-stop-accepting-bitcoin-as-payment-due-to-environmental-worries-musk-says/">no longer accept the cryptocurrency</a>&nbsp;as payment last week, Musk replied with one word: “<a href="https://twitter.com/elonmusk/status/1394001894809427971?s=20" target="_blank" rel="noreferrer noopener">Indeed</a>.”&nbsp;</p>



<p>The vague message was enough to push cryptocurrency investors to sell off their bitcoin, and the price dipped nearly 8.5% down to $44,395 a coin Sunday.</p>



<p>Cryptocurrency is notoriously volatile, but Sunday’s dip was bitcoin’s biggest slump in more than three months and represented one of its biggest drops in value since the price first began to rapidly ramp up in January.&nbsp;</p>



<p>Last week, Musk said Tesla would no longer accept the cryptocurrency until bitcoin, which requires colossal amounts of electricity to work with, shifts to&nbsp;<a href="https://twitter.com/elonmusk/status/1392602041025843203" target="_blank" rel="noreferrer noopener">more sustainable energy use</a>,</p>



<p>Musk said at the time Tesla would not sell off the bitcoin it already had.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="en" dir="ltr">Indeed</p>&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1394001894809427971?ref_src=twsrc%5Etfw">May 16, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<h2 class="wp-block-heading">BIG NUMBER</h2>



<p><strong>$1.5 billion</strong>. That’s how much Musk spent on buying bitcoin just&nbsp;<a href="https://www.cnbc.com/2021/02/08/tesla-buys-1point5-billion-in-bitcoin.html" target="_blank" rel="noreferrer noopener">three months ago</a>, in preparation for using the cryptocurrency at Tesla.</p>



<h2 class="wp-block-heading">SURPRISING FACT</h2>



<p>Running bitcoin uses&nbsp;<a href="https://www.bbc.com/news/technology-56012952" target="_blank" rel="noreferrer noopener">more electricity</a>&nbsp;than some countries, according to a University of Cambridge study published in February. Researchers said the cryptocurrency burns through 121.36 terawatt-hours annually, roughly the equivalent of used by countries like&nbsp;<a href="https://www.bbc.com/news/technology-56012952" target="_blank" rel="noreferrer noopener">Argentina and Norway</a>.</p>



<h3 class="wp-block-heading">KEY BACKGROUND</h3>



<p>Just two months ago,&nbsp;<a href="https://www.forbes.com/sites/roberthart/2021/03/24/bitcoin-surges-as-elon-musk-says-it-can-be-used-to-buy-teslas/?sh=4e37216b3cb2">bitcoin prices soared</a>&nbsp;when Musk announced Tesla would accept the cryptocurrency as payment for Tesla’s pricey electric vehicles. Musk’s quick reversal last week to suspend Tesla bitcoin payments and the cryptocurrency’s loss of value soon after angered many bitcoin investors, who said the billionaire was&nbsp;<a href="https://twitter.com/PeterMcCormack/status/1393971202738302986?s=20" target="_blank" rel="noreferrer noopener">misinformed</a>&nbsp;about bitcoin’s energy consumption. Musk has&nbsp;<a href="https://twitter.com/elonmusk/status/1393995872413888518?s=20" target="_blank" rel="noreferrer noopener">bickered</a>&nbsp;with and&nbsp;<a href="https://twitter.com/elonmusk/status/1393246529498976258?s=20" target="_blank" rel="noreferrer noopener">made fun of</a>&nbsp;the bitter investors on Twitter in recent days.</p>



<h3 class="wp-block-heading">TANGENT</h3>



<p>Musk is no stranger to playing the cryptocurrency market with his tweets. His current cryptocurrency of choice, <a href="https://www.forbes.com/sites/roberthart/2021/05/14/dogecoin-stages-a-comeback-amid-cryptos-300-billion-crash-soaring-30-as-elon-musk-and-coinbase-signal-confidence/?sh=258f1752672f">dogecoin</a>, is regularly boosted by the eccentric CEO’s Twitter memes and public enthusiasm. </p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><p lang="art" dir="ltr">👀</p>&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1383103246470811652?ref_src=twsrc%5Etfw">April 16, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<h3 class="wp-block-heading">FURTHER READING</h3>



<p><a href="https://www.forbes.com/sites/joewalsh/2021/05/12/tesla-will-stop-accepting-bitcoin-as-payment-due-to-environmental-worries-musk-says/?sh=39f2924f6e9f">Tesla Will Stop Accepting Bitcoin As Payment Due To Environmental Worries, Musk Says</a>&nbsp;(<em>Forbes</em>)</p>



<p><a href="https://www.forbes.com/sites/alanohnsman/2021/05/12/elon-musk-says-tesla-stops-accepting-bitcoin-for-car-purchases-due-to-carbon-energy-use/?sh=34e39d386f85">Bitcoin Tanks After Elon Musk Says Tesla Stops Accepting It Due To Carbon Energy Use</a> (<em>Forbes</em>)</p>



<p><em><strong>by Carlie Porterfield, Forbes Staff</strong></em></p>


Tag: Bitcoin

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