Copyright © 2017-2020 LHCrypto
All rights reserved.

Some information about us

US and EU national cryptocurrencies, mining makes profit

11/28/2019
|
  • usa_eu_сryptocurrency_mining
News list

The Fed Chairman speaks on the US national cryptocurrency potential. The EU is exploring the possibility of creating state digital money. Interest in cryptocurrency mining continues to grow.

Fed Explores Digital Dollar Options

Jerome Powell, the Fed Reserve Chairman, said that his organization is studying the creation of the US state cryptocurrency. He acknowledged that digital financial assets provide a significant incentive for economic growth due to faster payments and easier settlements. However, the official noted that such an innovation would not have significant consequences for the States, as businesses and citizens of the country already have a developed financial system.

According to Jerome Powell, the launch of the American national cryptocurrency will lead to many questions. Difficulties will arise in the areas of regulation, monetary policy, and also compliance with the legislative framework and economic stability. In addition, it will be necessary to strengthen information security systems and invest in data privacy technologies.

Information about Fed's study of creating a digital US dollar came from Rob Kaplan, the President of the Federal Reserve Bank of Dallas. In his statement, the official noted the importance of preserving dollar as a reserve asset. The emergence of an alternative financial instrument can undermine investor confidence, and as a result, reduce the demand for debt obligations. If the rate on servicing public debt increases by 1%, this will lead to an increase in costs by $200 billion.

Therefore, the American authorities are highly wary of the cryptocurrency projects emergence. Everything that can threaten dollar’s dominance is perceived by them as a direct threat. Apparently, it was exactly it what made officials to put up fierce pressure on Facebook initiative. As soon as the public started talking about Libra as an alternative settlement system, the project was fiercely criticized.

Consequently, Justin Muzinich, the Deputy Finance Minister, is sure that even approved and fully compliant cryptocurrencies can pose a threat to state stability. They can delegate to the private sector some functions of the government bodies’ competence sphere.

Fed Explores Digital Dollar Options

The European Union is Changing Its Attitude Towards Blockchain and Cryptocurrencies

Denis Beau, the second in command at the Central Bank of France, supported the distributed registry technology and announced the need to issue EU cryptocurrencies. He is sure that quick payments will solve a significant part of current issues. Reducing of transaction costs will activate economic development and help businesses make a difference. Back in May, information appeared that the Central Bank of France was ready to consider the creation of a single European cryptocurrency.

According to Denis Beau, the task of the Central Bank is to organize settlements with minimal expenditures of funds and forces. It is blockchain that allows dealing with it most effectively. If a cryptocurrency of the European Union appears, it will protect the financial system from competitive risks from payment systems and digital assets of other countries and private companies.

Benoit Coere, a former member of the ECB's board of directors on behalf of Belgium, supported his French counterpart. It was stated that the Bank should not impede the development of private initiatives in the field of distributed registry. On the contrary, the authorities should take the lead of this movement. They need to offer society a state digital currency. Until now, the EU does not even have a single credit card standard, which leads to the dominance of foreign financial institutions. This is just one example of initiative loss in the financial industry. The nationwide EU cryptocurrency will solve many issues.

The words of officials about the interest in digital projects are confirmed by cash injections. The European Commission and the European Investment Fund have announced the launch of a new project. Blockchain-developing companies will have access to financing from a fund with a capital of $400 million. More than $110 million out of this amount will come from government sources. The remaining funds are invested by banks and commercial companies. In total, the EU spent $674 million in 2019 on the study of blockchain. Only Americans invested more, US spending exceeded $1 billion. China ran third with $319 million of public funds invested in the industry.

The European Union is Changing Its Attitude Towards Blockchain and Cryptocurrencies

Mining Cryptocurrencies in North America Brings Substantial Profit

Hut 8 Mining Corp. from Canada reported profit and loss for the 3rd quarter of 2019. Three months of work brought it net income of $14.7 million. Electricity expenses, salaries, depreciation of equipment, payment of taxes, as well as interest on loans and other expenses have already been deducted from this amount. The cost of one bitcoin mining was $4,363, and a total of 1,965 coins were mined.

Since October 2019, Hut 8 shares have been traded on the Toronto Stock Exchange. When starting business, the company purchased equipment for a total amount of $85 million; the mining company began its work as early as in 2018.

However, a study by Ceteris Paribus casts doubt on the reality of this business profitability. They believe that Hut 8 incorrectly calculated the depreciation of equipment. According to them, the cost of one bitcoin mining was about $7,000. However, this does not prevent American and Canadian businessmen from launching new mining farms.

Thus, Whinstone, the US company, together with the German Northern Bitcoin, announced the launch of the largest mining center in the world. A 1 gigawatt site will be opened on 100 acres in Texas. In the next three months, the first stage of 300 MW will begin to operate. Until the end of 2020, the rest of the equipment will be installed.

In addition to bitcoin and Ethereum mining, the new platform will use computing capabilities for other tasks. So, it could also offer process information for the development of artificial intelligence and video rendering.

Mining Cryptocurrencies in North America Brings Substantial Profit

Are you ready to start?
Open Account Be a Partner

LH-CRYPTO is an online service for crypto-traders

LH-CRYPTO is an online service for crypto-traders. The service is available to everyone, except for the citizens of particular countries and several categories of people listed in the License Agreement. LH-CRYPTO is a free software for making conversion operations with CFDs on various financial assets nominated in cryptocurrencies.

The project does not manage funds and does not guarantee profits. The project only offers a service that allows to make conversion operations with cryptocurrencies on a specially configured software.

This website is maintained and supported by the following legal body:

LOW AND HIGH IT LTD

All the settlements in this project are processed solely in cryptocurrencies. Conversion operations are processed on the terms of margin trading without a direct supply of underlying assets. According to the generally accepted term, these operations are called operations with OTC (over the counter) CFDs (contracts for difference).

Trading with OTC CFDs involves considerable risks. We recommend you pay the utmost attention to both theory and practice of margin trading before making any of such operations.

The services provided by this project are not available for: residents of USA, France, North Korea, Spain, Sudan and Syria.

visa mastercard 3D secure visa 3D secure mastercard