As the door slowly closes on 2021, December 31’st seems to be a good day for crypto. Most notable cryptocurrencies have picked up on this day and not only that there are other good news from the ecosystem. For instance Iran now allows renewable power plants to supply the ever increasing crypto mining community with electricity. Thus, all licensed cryptocurrency miners that operate within the law can now get electricity from green energy sources. This move was initially made because of fears of winter blackouts as more bitcoin farms were sprouting over night. This pushed the the ministry of energy in Tehran to adopt new rules allowing plants generating electricity from renewable sources to supply coin minting enterprises.
Mohammad Khodadadi, the head of the Tavanir department which is responsible for the mining industry commented that: “Legal miners can enter into agreements with renewable power plants at negotiable terms and rates”. He also emphasized the the tariffs will be established with the help of the energy ministry. Iran legalized bitcoin mining in 2019. With this move it introduced a licensing regime for entities operating in the industry. Registered crypto farms could buy as much electricity as they wanted, albeit at a slightly higher rate. Many Iranian miners are avoiding the mandatory registration to take advantage of subsidized household prices.
There was even a move earlier in the year to shut down mining operation for fear of blackouts. This resulted in a ban on crypto mining that was finally lifted with the new renewable energy plan being put in place.
Tesla CEO Elon Musk Praises Dogecoin, Criticizes Bitcoin, Guesses Identity of Satoshi Nakamoto
Like him or hate Elon Musk is a worldwide celebrity in his own rights. Being already chosen person of the year by Time magazine, he seem to always have some controversial opinions on a lot of subject matters. This time the Tesla CEO criticized Bitcoin and praised Dogecoin in a move which may sound a lot like self-promotion to some. The meme cryptocurrency (DOGE) received Elon’s support with him stating that: “Part of the reason why I think there is some merit to dogecoin, even though it was obviously created as a joke, is that it actually does have a much higher transaction volume capability than bitcoin“.
He pointed out another legitimate reason why Dogecoin can be considered better and that is the transactions fees. “Right now, if you want to do a Bitcoin transaction, the price of doing that transaction is very high, so you could not use it effectively for most things, and nor could it even scale to a high volume.”, Tesla’s CEO continued to say. Elon Musk also mentioned how the transaction fees for Dogecoin are very low making it much more attractive for trading.
This is not the first time Musk said that dogecoin is better than bitcoin for transactions. During his “Person of the Year” interview with Time Magazine, he noted that bitcoin is better as a store of value while dogecoin is better suited for payments. He also recently announced that his electric car company, Tesla, will start accepting DOGE. The sometimes named Dogefather, Elon musk elaborated further on Doge: “I’m not saying that it’s the ideal system for a currency but I think it actually is just fundamentally better than anything else I’ve seen, just by accident.“
Tesla’s CEO also shared his opinion on the identity of Satoshi Nakamoto, Bitcoin’s pseudonymous creator. He began by saying that the clues can be found on the ideas about cryptocurrencies found in publications prior to Bitcoin launch. Elon continued saying that: “The evolution of ideas is pretty clear for that, and it seems as though Nick Szabo is probably more than anyone else responsible for the evolution of those ideas. ” “He claims not to be Nakamoto but I’m not sure that’s neither here nor there but he seems to be the one more responsible for the ideas behind Bitcoin than anyone else,” Musk concluded.
Investment Adviser Warns It’s a Mistake to Ignore Crypto Assets, Predicts Cryptocurrencies Will Outperform Equities
Blueprint Capital Advisors CEO Jacob Walthour says it’s a mistake to ignore crypto as an asset class. He also predicts that in the foreseeable future crypto will eventually outperform equities. When it comes to his credentials, Walthour has over 25 years of experience in capital markets, traditional, and alternative asset management.
He explained that in order to see how crypto will measure in the future we have to look at how it evolved. He Blueprint’s CEO described the evolution of transactions over the course of our lives. Thus, he describes how we started buying things with cash and then someone came up with the idea of a check, after which the idea of using plastic surfaced and finally e-payments. He concluded: “And I think that the use of crypto, the whole concept of a wallet, is where we are going to go from here. And I think that bodes well for crypto overall in terms of its adoption rate over the course of the next five to 10 years.”
Walthour, emphasizing that there are now many companies accepting cryptocurrency as a form of payment said: “I think it’d be a mistake to ignore this asset class which has looked like the wild west for the last 5 or so years.” He also added: “But if we see a stall in the U.S. equity market and a rise in crypto, I think the herd mentality could take over here, and you could see a lot of liquidity falling out of stocks into cryptocurrencies.” Blueprint’s CEO concluded with his prediction that cryptocurrencies have a strong probability of outperforming equities in 2022.
The crypto ecosystem in 2022 and further beyond
Starting from the evolution of blockchain technology to the emergence of numerous successful cryptocurrencies as well as they appearance of NFT’s, the crypto ecosystem seems to be thriving. Sure there is still quite a high degree of volatility in the market but overall with the passing of years there has only been a continuous growth in both the crypto community and the acceptance of crypto by more and more industries as a legitimate asset.
Looking back at the evolution of currencies in general and how trade between humans works we can safely assume that heard mentality is a thing. Thanks to or because of it, depending on how you look at things, people in general will slowly gravitate to the newest innovation with potential. Humans are risk takers, that’s how we evolve as a society and that’s how great ideas spring forwards and mold the future. So as much as crypto might still look like a risky endeavor for some, for others, it’s exactly this element of danger that is extremely attractive.
You could say that another aspect of modern society is the desire for more freedom that people hold. So when the opportunity to hold complete control over your money with no central entity dictating everything is very appealing. The limitless possibilities of trade between previously difficult channels is also a great incentive for blockchain and crypto technology to be further explored and developed.