The government of Kazakhstan collected 652 million tenges ($1.5 million) in fees from cryptocurrency miners in the first quarter of 2022. The country, which has offered a safe haven to nearly 90,000 mining units in China, is nevertheless struggling to maintain the stability of its electricity network.

Reduced revenue

According to a recent government report, Kazakhstan managed to collect $1.5 million in mining fees during the first quarter of 2022. Yet last April, a bill to increase mining taxation in Kazakhstan was announced, Rejected.

The deputy energy minister, Murat Zhurebekov, had indeed called for cracking down on undeclared minors. The latter proposed the coming into force of a surtax of $0.0023 per kWh. For some mining companies, this surcharge was a way to legitimize the activities of undeclared miners. Via this payment, the latter would align themselves, in a way, with the legal framework in place.

Moreover, these revenues have been collected despite the fact that the national internet network suffers from occasional outages. The electricity network has, for its part, come close to saturation on several occasions.

We can read in this report that “the fee is invoiced for the actual quantity of electrical energy consumed in the implementation of the activities.” In terms of revenue, the region of Nur-Sultan, the capital of the country, is the one that generates the most revenue from mining, with 277.3 million tenges. Western Kazakhstan produces 143.1 million tenges. Aktobe, the country’s fourth city, also mines the equivalent of 48.9 million tenges.

Revenues collected in the context of mining taxation enter the national budget, not the regional one. Therefore, the latter will be broken down independently of their origin within the territory.

The attractiveness of the country is faltering

Kazakhstan received nearly 90,000 computers moved from China in spring 2021. The country offers a favorable legal framework as well as relatively moderate electricity tariffs. However, since this massive arrival, the country has struggled to meet demand. Its electricity infrastructure, based essentially on coal-fired power stations, is no longer sufficient to meet national needs.

The government, therefore, decided to reduce demand on the network by cutting off electricity to miners. He also asked for help from Moscow via his company Inter-RAO. In Russia, this company holds the monopoly on the supply of electricity and exports this one to many countries, of which Azerbaijan, Belarus, China, Georgia or, today, Kazakhstan.

Professor Luca Anceschi of the University of Glasgow doubts the effectiveness of this assistance in the long term. He says: “It is certain that the electricity contribution from Russia can solve the problem in the short term, but I think that there is a big discussion to be had on the type of energy policy that Kazakhstan is really pursuing.”

Moreover, according to him, the miners are not at the origin of the problems that arise on the country’s electricity network. This narrative would aim to avoid looking into the difficult question of the lack of maintenance of the network as well as the absence of electricity transmission from the north to the south of the country.

Therefore, some miners have decided to leave the country, given the significant losses and risks resulting from the power cuts. Bitfufu thus turned heel in December 2021, followed by other companies soon after.

Nevertheless, the fraction of minors having decided to leave the country remains minimal. Alex Brammer from Luxor Technologies said: “We were expecting something similar to what happened when they announced the ban in China, and we haven’t seen that yet. Kazakhstan”.

The Kazakh electricity grid operator recently said that maintenance and repair work would start soon.

If the problem of too high fees has often been mentioned, the Ethereum network is this time singled out for abnormally low transaction fees. And we will see that this is not necessarily good news for the network.

Less than $3 for the purchase of an NFT on the Ethereum blockchain!

Now is the right time if you want to buy NFT through the Ethereum network! Midday Sunday, the median fee per NFT transaction dipped below the $3 mark. A level at its lowest for more than 10 months.

On May 28, the average cost per validated transaction was $0.69, according to data from the Ycharts platform. The average cost per transaction was over $3 in mid-April, to put these numbers into perspective. For many observers, the trend seems to continue to anchor down.

Lower transaction fees: is this good news?

First of all, it is important to understand how gas fees work on the Ethereum network. During each transaction made by the network, these fees can be assimilated into taxes paid to the miners of the network who come to validate the transactions. When the network is saturated, transaction fees also increase.

For network users as well as NFT fans, the drop in transaction fees seems like good news. However, the picture is not so rosy. This is because the drop in transaction fees results from less usage of the Ethereum network by users. And therefore, the decline in interest in blockchain, as suggested by the economic intelligence firm Santiment.

“Ethereum fees are so low these days. One might even notice that they were this low before the previous lows. Low fees reflect the fact that there is little activity on the network.”

In addition, gas fees are expressed in Gwei, the equivalent of Satoshi for Bitcoin on the Ethereum network. Consequently, the gas costs converted into dollars are functions of the Ethereum price. And despite the jump at the start of the week, the trend has been down for several dozen days. Recall that since its ATH was recorded last November, the ETH token has lost nearly 60% of its value.

Many interpret the reluctance on the network as the expectation that “The Merge” arouses. Indeed, both users and investors are all impatiently awaiting the merger and the transition from Proof of Work to Proof of Stake . A paradigm shift that should be accompanied by a considerable reduction in the carbon impact of the Ethereum blockchain, but also a lasting reduction in transaction costs.

Also read: $ 5 billion burned in Ethereum (ETH): What You think about it

The crypto market is having a complicated start to 2022. Some foresee the possibility of a painful bear market. But for many experts and analysts this correction is necessary and allows us to breathe before, why not, starting again towards new heights .

The markets need to breathe to recover better

The last weeks of the crypto market are complicated. Major caps saw significant declines and the Terra ecosystem’s descent into hell ended up completing a widespread fall in the cryptocurrency market.

In this context, many already fear the arrival of a prolonged bear market . But for many analysts, these bear market phases are a blessing in disguise.

Among those is Polygon co-founder Mihailo Bjelic, who said the recent declines are exactly what the market needed. For him, the cryptocurrency market tended to get a bit irrational. Remember that the latter saw its total capitalization multiply by 12.5 between November 2019 and November 2021, a crazy growth in such a short time. He declares :

“When things like this happen, correction is needed, and ultimately that’s the healthiest thing to do.”

Recall that since its November 2021 ATH, the total market capitalization has fallen by almost 60%. It went from 3 trillion to 1.2 trillion according to the specialized site CoinGecko. Many traders and specialists expect this fall to continue. Indeed, the last cycle had a correction of nearly 80% across the entire market. If this scenario repeats itself, the roller coaster of the crypto ecosystem would still be far from its terminus.

Fewer scams and more time to build better projects

For others, like the DeFi specialist “The DeFi Edge”, a bear market also helps to avoid many scams. Indeed, in a downward market trend, new entrants are much rarer.

Also, scammers are less likely to exploit the credulity, especially of new investors. The profitability of scams and their number is therefore reduced. In view of the resurgence of this type of practice in recent months, a breath of fresh air in the market also appears to be welcome.

For multiple experts in the sector, these breaks also make it possible to build projects in a healthier way . Jason Ye, a partner at crypto investment fund ROK Capital, also points out that bear market periods are essential for successful investing:

“It’s time for traders to allocate cash reserves to take advantage of the next bull market. As always, the winners of a bull market are those who built that success during the bear market.”

He is joined in this sense by many analysts who point out that most gains are made when buying during the bear market . Conversely, most of the losses come from purchases during bull market phases. You have to be able to remain calm in the phases of euphoria and calm during the violent falls experienced by this still young market.

Other specialists also highlight these breathing phases as beneficial for project leaders. Indeed, this gives the opportunity to build your project more serenely by devoting the necessary time to it rather than rushing out to take advantage of the beneficial effects of a bull market. According to some, it also allows to see the real enthusiasts and those who really want to build in this innovative ecosystem. A way of sorting the participants over the successive declines known in recent weeks.

The next few weeks will tell us if we are indeed in a bear market or if this breathing space is only temporary. Still, these phases are necessary in a healthy market and allow many investors to make good moves when the trend reverses.

Of course, if you in turn want to take advantage of the downtrend, it is recommended to buy your cryptos on a secure platform. As such, we can recommend Capital.com for CFDs and Crypto.com for live buying.

Also read Best Way: How to Short Bitcoin in 2022

In a question and answer session on Reddit, Bill Gates explained why he doesn’t invest in cryptocurrencies and why he’s unlikely to do so in the future.

Bill Gates does not own cryptocurrencies, has not invested in them, and is unlikely to do so in the near or distant future. As the Microsoft founder himself clarified in a question and answer session on Reddit, Bill gates is not a fan of cryptocurrencies at all.

While the world saw in Bitcoin and Co. a new investment opportunity that appeared as the future of currencies, with which one could make money and buy and sell goods, and even Elon Musk invested his fortune in them, Bill Gates decided to stick with old-fashioned investments.

Why does Bill Gates not like cryptocurrencies?

Why is that? Bill Gates’ explanation is quite simple: “I like to invest in things that produce valuable things. The value of companies is based on how they make great products. The value of cryptocurrencies is only what someone else is willing to pay for them, so that value does not impact society like other investments.”

That’s understandable because of Gates’ personal penchant for things that positively impact the world and because you can analyze a company like this. You can predict whether the service, the products, the people, and everything that goes with it has a future or not.

A tip from Warren Buffett on cryptocurrencies

One of Warren Buffett‘s top pieces of advice when it comes to investing is knowing where to put your money. Being able to see whether what the companies are producing will be valuable and attractive to mankind makes this investment decision more manageable. Also, when you can see how the company is run and if they have a clear vision of what they want to achieve.

With cryptocurrencies, this is more difficult to recognize. Gates explains that it all depends on what people do with it. Cryptocurrencies are always said to be very volatile – and the recent crash has only confirmed this prediction.

Will Bill Gates change his mind?

Will the day come when Bill Gates changes his mind? It doesn’t look like it, and considering he’s still one of the richest men in the world, even without cryptocurrencies, he doesn’t need to change his mind.

+++ Terra 2 (LUNA) slips 70 percent south shortly after the new listing +++ Avalanche (AVAX): Eight percent price increase after bouncing off support +++ Chain (XCN): Price reaches a new all-time high with a 62 percent price increase + ++

Terra 2 (LUNA) slipped 70 percent south shortly after the new listing

May 29, 2022: The long-awaited relaunch of the cryptocurrency Terra 2 (LUNA) fell through after initial euphoria among investors. After being listed on some crypto exchanges yesterday afternoon, Terra’s price rose to 18.87 US dollars and thus multiplied in value, but shortly afterwards the seller took over the helm again. The price fell 76 percentage points to $ 4.25 at its peak. While the successor to the previously popular Terra ecosystem coin is currently recovering somewhat at $5.87, selling pressure is likely to pick up again when trading of Terra 2 resumes on crypto exchange Binance on May 31 .

LUNA Classic Price Prediction

Luna Classic has already dropped around 27% over the last week and trading has been suspended across most centralized and decentralized exchanges. The interest is decreasing and the trading volume is also rapidly declining. This is most likely as a result of the anticipation for the LUNA 2.0 airdrop that is on the way.

I would probably imagine that LUNA 2.0 and LUNC will have a similar relationship to how Ethereum and Ethereum Classic behaves. Just like ETC, I would feel confident that LUNC will trade sideways for a long period of time.

The market capital for LUNC is currently $866m and without major appetite from investors I don’t see this climbing too high over the next few years. Perhaps we could see a $0.00045 LUNC by 2025, which is around a 250% price increase from current levels.

I think the short-term price action will perhaps consist of a slight drop and lower price levels. The bearish scenario is that Bitcoin revisits the 200week moving average and this would result in roughly a $20,000-22,000 Bitcoin.

This could also mean altcoins would take a further 20-40% hit before we continue on to the next Crypto bull market, meaning we could see LUNC reach levels as low as $0.0000855.

The good news is that Terra 2.0 will be accessibly across a hybrid of exchanges.

This makes it easy for mass accumulation and the exposure for the project will immediately be global.

With the right marketing strategy and if Do Kwon thoroughly succeeds with the revival plan, we could see a very strong start to LUNA 2.0 with a euphoric rush.

It is still a mystery in terms of what will happen with the price of Luna 2.0, but I would expect there will be a great amount of volatility as the market gets flooded with volume.

In this case due to the uncertainty, it would be wise to remain risk averse.

Update – LUNA 2.0 hit $30 on Bybit after launching on May 28th, and lower prices on other exchanges, then corrected to around $5-7.

Earlier this month, major cryptocurrency Terra
LUNA/USD collapsed and lost over 97% of its value as its native stablecoin TerraUSD
UST/USD fell to under $0.30 — with nearly $24 billion of capital evaporating from the two tokens’ market values, all within 24 hours.

What Happened: While many have lost fortunes with the spectacular market crash that some suggest was caused by a faulty protocol design, others made fortunes from Terra’s rise and sold before the ecosystem saw its demise.

According to a Sunday CNBC report, venture capital firm Pantera Capital tells CNBC it earned a 100-fold return on its $1.7 million investment in Terra, Hack VC. Furthermore, Hack VC and CMCC Global have not shared their gains, but the former closed its position in December while the latter in March — suggesting that both saw hefty returns on their investments.

Thanks to its collaboration with OpenNode, the online payment provider Stripe will soon allow its merchants to convert the payments they receive into Bitcoin (BTC). This functionality will be instantaneous thanks to the Lightning Network and can be performed on some or all of the flows, depending on the merchant’s strategy.

Stripe partners with OpenNode to bring Bitcoin to its merchants

In the coming weeks, Stripe users will be able to convert the payments they receive into Bitcoin (BTC), thanks to the integration of the OpenNode solution :

Thus, a trader will choose whether or not he wishes to transform a percentage or all of his incoming flows. This also applies to assets already in the account.

Once set up, this application will work automatically and instantly thanks to Bitcoin’s layer 2 solution: the Lightning Network . Josh Held, head of strategy at OpenNode, illustrates this point:

“Bitcoin is the most widely adopted digital currency in the world, and we are excited to be working with Stripe to [make it] available to the platform’s many businesses. The app provides […] a simple and secure way to convert incoming payments to Bitcoin in real time, automatically or on demand.”

A pioneer in cryptocurrency payments

Back in 2014, Stripe got ahead of all its competitors by allowing its users to accept Bitcoin . But the company had unfortunately backtracked in 2018. Since then, it has opened up to cryptocurrencies again, first by recruiting a team in the fall of 2021 .

Last month, the company even unveiled a partnership with Twitter allowing the establishment of a new space for content creators. This is a feature called Super Follow, which subscribers will pay in USDC through the Polygon (MATIC) blockchain .

For its part, the novelty brought to Stripe by OpenNode has a double added value . On the one hand, traders already converting part of their cash into cryptocurrencies will see a time saving , and on the other hand, it may motivate new ones to take the plunge thanks to easier access. This is therefore an additional vector of democratization .

Regarding the Lightning Network, its use has been growing for several months, and more and more companies are integrating it into their services.

Crypto donations to Ukraine are drying up. A rap video should attract attention. Distress meets bizarre humor and crypto memes.

The message is simple, but the aesthetic implementation is all the more unusual. Ukraine is calling on the crypto community for donations with a new rap video. The protagonists: the Ukrainian digital minister, an armed robotic peace dove and their Chardonnay-sipping fellows. Oh yes, and pigs in love. The hook of the bizarre meme masterpiece: “Invest in Peace, Bro.”

The war in Ukraine has been raging for three months. The scene donated over $100 million in cryptocurrencies in March . “But the first wave of donations has died down,” writes Everstake founder Sergey Vasylchuk in a press release. The staking provider belongs to the Aid for Ukraine initiative . She collects donations for the war.

The rap video was released on May 23rd and resulted from a cooperation between the Ministry of Digital and Everstake. The producer is the creative agency Bickerstaff.374 based in Kyiv. The video aims to remind the crypto community of the importance of their support in this war. In a humorous and tongue-in-cheek way.

Ukraine hopes for more donations

Many crypto memes are targeted. In her rap, a pigeon with a monotonous robotic voice lists everything that bored crypto investors throw out their digital money on: For example NFTs, an alpaca farm and of course … Lambos. And the dove in the hook reminds us: Peace is also a valuable investment.

The digital minister appears in a selfie video and comments at the end of the rap video: “Like the dove said, no time for sheets. Invest in peace.”

“People rarely think of peace as an investment. But without peace, nobody has the opportunity to pimp their Lamborghini or buy an alpaca farm. It’s a very unusual communication campaign. We hope it will catch the eye and attract crypto donations.”

Users are already diligently sharing and commenting on the video on social media. One can only hope that they pull out their wallets too.