Daily crypto news alerts for 14th December, 2020
đź—žEthereum options trading volumes hit $ 1.76 billion in November
November has been a very successful month for Ethereum options trading platforms - trading volumes tripled last month to $1.76 billion.
In November, the volume of trading in Ethereum options increased by 153% compared to the results of October - then this figure was $695 million.It is interesting that until November the trading volumes decreased for two months in a row - in August they amounted to $1.03 billion, and in September - $915 million.
The Deribit platform remains the undisputed market leader - in November, Ethereum options worth $ 1.64 billion were traded on this site.OKEx platform came in second with a result of $ 105 million, and Huobi exchange came in third with an indicator of $ 13.8 million.
“2020 has become a very important year for cryptocurrency options. The market infrastructure on centralized exchanges for this type of product has significantly improved and matured. This is evidenced by both high growth rates of trading volumes and a significant increase in the number of open positions, ”said Lars Hoffmann, an analyst at The Block Research.
In November, it was also reported that the volume of open positions in the Bitcoin futures market reached $ 6.29 billion.
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đź—žMarathon buys 10,000 machines for Bitcoin mining
Bitcoin mining can be a very profitable business, even more so since the recent boom in the price of Bitcoin. One of the keys to generating large revenues from mining is to have great computing power. This is why companies specializing in mining are constantly increasing their computing capacity. Recently, the Marathon company has made significant investments to increase their computing power.
On December 9, the Marathon company announced that it had purchased 10,000 S-19j Pro mining machines from Bitmain, a Chinese industrialist. The mining sector depends primarily on the power of machines. In this area, China is ahead. This is why most of the mining equipment comes from China. Marathon said 6,000 machines will be shipped by August 2021. The remaining 4,000 machines will be installed at the Montana mining center.
“We are proud to have successfully completed the acquisition of the necessary machinery to operate our 100 MW facility in Hardin, MT. We look forward to entering our second phase of growth with the construction of a second center. The new facility will be powered mainly by renewable energy, which, in addition to being economically attractive, allows us to reduce our carbon footprint "-Merrick Okamaoto, Director of Marathon.
Along with this investment, Marathon also said it has strengthened its partnership with Beowulf Energy, an energy supplier. Beowulf Energy plans to build a power plant in the northeastern United States in the near future. With the signed partnership, this plant should supply up to 100 MW to the Marathon mining center. Eventually, the plant could even supply up to 250 MW.
In Bitcoin mining, it's all about computing power. Indeed, the quickest miner to find the right “hash” wins! Therefore, miners are mostly companies (like Marathon) or individuals who come together in a "pool" to pool their computing power.
In addition, the computing power of the Bitcoin network is increasing every year. To keep up with the trend and never be overwhelmed, companies are therefore forced to increase their computing capacity. With this acquisition, Marathon will have a total power of 3.56 exahash per second by September 2021.
This power does not speak to you? It is necessary to contextualize the numbers. For example, at the Marathon facility in Montana, electricity costs are around $ 0.028 per kWh. With 3.56 exahash per second, the company intends to be able to earn 14.5 BTC per day. The company intends to develop its partnership with Bitmain in order to maintain its leadership in Bitcoin mining.
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đź—žVenezuela uses Bitcoin to circumvent US sanctions
Venezuela has faced many difficulties for years. First, the country is in the throes of an unprecedented economic crisis. This crisis is reflected in hyperinflation which increasingly devalues ​​the local currency, the bolivar. In addition, following geopolitical tensions, Venezuela is undergoing US economic sanctions. In the midst of this inextricable situation, Bitcoin is playing an important role in keeping the country running. Let's see how.
US sanctions have put President Maduro under pressure. Indeed, they made the country's economic situation even more complicated. While the country is more dependent than ever on its foreign market, many western countries are reluctant to export their products to Venezuela under US pressure. These sanctions have therefore forced the Venezuelan government to find solutions for imports and exports.
To avoid the economic suffocation of the country, President Maduro wants to convert Venezuela into an "exporting nation". To do this, the Maduro government has decided to rely on its private companies, not subject to US sanctions, for its exports. This helps bypass US sanctions. The government’s plan is to use these private companies to strengthen economic cooperation with its key allies. Thus, Turkey and Iran are the countries that provide Venezuela with food and fuel.
In the first half of 2020, 35 private companies imported food from Turkey compared to only 7 in 2019. In all, more than 140,000 tonnes of products were brought into the country in the first half of the year. 2020. These products mainly consisted of pasta, oil and meat.
Bitcoin, the solution for imports into Venezuela
In addition to going through its private companies, the Venezuelan government has decided to finance its imports with Bitcoin. Thus, imports from Turkey and Iran were mainly paid in Bitcoin. Iran is expected to take the same step soon to finance its imports.
In 2018, the Venezuelan government created its own cryptocurrency, the Petro. This crypto was backed by oil and had the ambition to be used on a large scale in the country to overcome the weakness of the bolivar. However, this state-owned crypto has never thrilled the crowds. The government was therefore forced to turn to more traditional cryptos, with Bitcoin in the lead.
"We will be using all cryptocurrencies in the world, whether private, public or national, for our domestic and foreign trade." Maduro, President of Venezuela
At the citizen level, the government of Venezuela has taken another step to encourage the use of Bitcoin, which is already widely used in the country. Thus, in November, the government launched a new exchange that will allow Venezuelans to change their bolivar into bitcoins.
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đź—žSCB and Lightnet to launch international money transfer service on the Stellar blockchain
Thailand's oldest bank Siam Commercial Bank (SCB) will open a new corridor for international money transfers from South Korea to Thailand in partnership with Lightnet, which runs on the Stellar blockchain.
This spring, the Thai company Azimo partnered with SCB to make instant payments from Europe to Thailand using the RippleNet network. However, according to the statement, SCB is interested in a new model that will "enhance the bank's customer service capabilities while increasing transaction speed in a secure environment."
As part of its partnership with Lightnet, the bank will offer international transfers from South Korea to Thailand "at a lower cost, helping to meet the rapidly growing demand for better quality international money transfers." SCB Vice President Srihanath Lamsam said:
"We expect the new model to help raise the bar for seamless cross-border transfers for our clients and to meet the growing demand for better service in this direction."
SCB did not comment on the reasons for choosing Lightnet over Azimo for this payment corridor. The leaders of the financial institution hinted in a statement that the cooperation will allow the bank to "expand the scope of its international money transfer services."
Recall that in January SCB and Ripple launched a blockchain application for instant international payments. In addition, at the beginning of the year, Lightnet raised $31.2 million in Series A investment rounds from major venture capitalists.
