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Crypto Moves – Bitcoin, Ether Down; Robinhood is downsizing; Revult eyes expansion into crypto wallets

RIYADH: Bitcoin, the leading cryptocurrency internationally, was trading lower on Wednesday, down 4.42% to $38,816 as of 10:45 a.m. Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $2,879, down 4.26%, according to data from Coindesk.

Mining Report Shows Bitcoin Electricity Consumption Decreased by 25% in Q1 2022

The bitcoin mining industry continues to improve its sustainable energy use and technological efficiency, according to the latest report from the Bitcoin Mining Council, or BMC.

At the end of May last year, Elon Musk, founder and CEO of SpaceX and Tesla, convinced Bitcoin industry leaders to form a BMC and in mid-July he launched his utilities and website.

The BMC survey for the first quarter of 2022 presents three measures which include: “electricity consumption, technological efficiency and sustainable energy mix”.

BMC researchers were able to probe nearly 50% of the network’s hash power on March 31, 2022.

The survey indicated that 64.6% of all respondents benefit from electricity with a sustainable energy mix, Bitcoin.com reported.

“Based on this data, the global bitcoin mining industry’s sustainable power mix is ​​estimated to be now 58.4% or up approximately 59% year-over-year from the first quarter. from 2021 to the first quarter of 2022, making it one of the most sustainable industries in the world,” the BMC said in the report.

Michael Saylor, CEO of Microstrategy – an American company that provides business intelligence, mobile software and cloud-based services – also made a statement in BMC’s fourth quarterly report.

“In the first quarter of 2022, the hashrate and associated security of the Bitcoin network improved by 23% year-on-year, while power consumption decreased by 25%,” Saylor said.

He added: “We have seen a 63% increase in efficiency year over year due to advances in semiconductor technology, the rapid expansion of North American mining , the Chinese exodus, and the global adoption of sustainable energy and modern bitcoin mining techniques.”

Robinhood will reduce its workforce

Retail platform Robinhood Markets Inc. said on Tuesday it was laying off about 9% of its full-time employees, sending its shares down 5% in extended trading.

The company, which reports quarterly results later this week, said rapid headcount growth has led to the duplication of some roles and functions.

As of December 31, the company’s total workforce was 3,800 people.

Robinhood’s easy-to-use interface has made it a hit with young investors who trade from home in cryptocurrencies and stocks such as GameStop Corp. during the COVID-19 pandemic.

“We will continue to accelerate our product momentum through 2022 and introduce key new products in brokerage, crypto, and spending/savings,” CEO Vlad Tenev wrote in a blog post.

Revolut eyes expansion into crypto wallets and mortgages

Digital banking platform Revolut is working to expand into decentralized cryptocurrency wallets and is also looking into the mortgage sector, its CEO has said, as the London-based company continues its strategy to become a so-called “ super app.

Revolut, which currently offers payment, crypto-trading, savings account and stock trading services, is focused in the near term on expanding its remittance offerings and launching a product buy now, pay later.

But the fintech company still has work to do to become a one-stop-shop for financial services, CEO Nik Storonsky said.

“For example…decentralized wallets, and allowing deposits, withdrawals of crypto [and] staking, lending – that’s another element we’re missing and working on,” he told Reuters.

He added that it’s also important for the company to consider expanding into mortgages, as home loans “are a pretty big part of consumers’ financial lives.”

Fidelity to enable bitcoin retirement savings allocation in 401(k) accounts

Fidelity Investments said on Tuesday that it will allow individuals to allocate a portion of their retirement savings in Bitcoin through their 401(k) investment plans, becoming the first major retirement plan provider to do so.

The family-controlled asset manager said MicroStrategy Inc., a major Bitcoin backer, will be the first employer to use the new product, which will be made available to other employers by the middle of the year.

With the new offering, employees will be able to invest in Bitcoin through a digital asset account as part of the basic range of their 401(k) plans, Fidelity said.

Fidelity also said Newfront, a provider of retirement advisory services, said the DAA will help meet a growing need among its customer base.

Plan sponsors will be able to decide employee contributions into the DAA and set limits on the exchange of those contributions for Bitcoin, Fidelity said, adding that additional updates on the new offering will be available in the coming months.

(With contributions from Reuters)

About Wanda Dufresne

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