The cryptocurrency exchanges were divided on Monday as investors prepare for another week of earnings reports and the Federal Reserve''s interest rate announcement.
According to CoinGecko, Bitcoin increased by 5.2 percent to $38,893, while ethereum increased by 5.2 percent to $2,827, and dogecoin increased by 1% to $0.13084.
''''De Facto Town Square''''
Winston Ma, the managing partner of CloudTree Ventures, said the crypto industry is waiting for Tesla (TSLA) - Get Tesla Inc ReportCEOElon Musk to unveil the next Web3 version of Twitter (TWTR) - Get Twitter, Inc. Report.
Twitter has recently agreed to Musk''s $44 billion acquisition proposal to buy the microblogging site and take it private. Musk has described Twitter as the "de facto town square" of the internet.
"One possible change Musk made was making the Twitter feed algorithm''''open-source'', as open-source coding is the foundation for many blockchain applications," Ma said.
He added that Twitter has already approved a decentralized social media initiative called Bluesky, which is developing a decentralized protocol for public conversations that will allow users to control their interactions with audiences and allow developers to innovate on top of the protocol without needing permission."
Bluesky said in a recent tweet that it is "an independent business focusing on decentralized social network R&D."
"Twitter''s funding of Bluesky is not subject to any restrictions except one: that Bluesky is to develop and develop technologies that enable open and decentralized public conversation," said Bluesky.
''''Demand Quickly Overwhelming Supply''''
"Web3 developers are working on decentralized social media projects, so the question is whether Twitter will soon become the most effective decentralized player in the space?" Ma said. "Two days before the sale, Twitter announced USDC stablecoin payments for the platforms content creators. Twitter''s recent crypto integrations also included NFT profile photo verification and BTC advice for users."
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Ma emphasized that the possibility for a "decentralized Twitter" would encourage crypto users to experiment in the town square.
Energy hungry crypto miners are increasingly scrambling to stay ahead of declining supply, according to David Lesperance, the managing partner of Lesperance & Associates.
"Even with a move from "proof of work" to "proof of stake," states such as Texas and Patagoniaare are warning about demand that is rapidly overwhelming supply," he said.
According to Bloomberg, the Texas Electric Reliability Council expects crypto miners to increase electricity demand by up to 6 gigawatts by mid-2023, generating more than enough to power every house in Houston.
Geo-Political and Sovereign Risk
Lesperance said major crypto mining companies should be establishing themselves in jurisdictions that offer renewable green energy sources that are scalable to meet current and future requirements.
He asserts that the jurisdiction should have a law to safeguard the significant capital investment required and that it should not be subject to geo-political or sovereign risk.
"It''s the most obvious and immediate, whether or not, geopolitical or sovereign risk," Lesperance said. "Cupid miners in China, Kazakhstan, and Russia have weighed heavily on the subject in the last year, although moving to jurisdictions where domestic non-crypto consumption may leave crypto-miners without a guarantee steady electricity supply are still a major obstacle to long-term viability."
Countries with geo-thermal energy are becoming increasingly attractive, according to him.
"That leaves the miners optimistic about the stability of the rule of law as the picker between central American jurisdictions, such as El-Salvador, Costa Rica, and Nordic countries, according to Lesperance.