Citigroup: by 2022 Bitcoin mining can become unprofitable

According to the Citigroup research, by 2022 Bitcoin mining will be profitable only with BTC price above $300 000
10 November

In five years, the bitcoin mining will become absolutely unprofitable because of the too rapid growth in the prime cost of the first cryptocurrency. This conclusion was reached by analysts of financial conglomerate Citigroup, reports Bloomberg.

According to the analyst of the company Christopher Chapman, by 2022, mining will be cost-effective only with a bitcoin cost above $ 300,000. By the same time, the total electricity consumption for bitcoin production will be equal to the consumption of all Japan and will be limited to the governments.

We don’t think that those levels of mining can be reached, and that governments will regulate/tax miners as a way of reducing the power consumption.
 

Christopher Chapman
Analyst, Citigroup

Bitcoin Bulls
Bitcoin Bulls 

It is noteworthy that the expert also believes that the cryptocurrency community will have to change the earnings model and switch to the Proof-of-Stake algorithm. In this case, the winners will be participants, who initially had more cryptocurrency.

As the current arms race is not in the interests of established miners we think that the BTC network may move to a proof-of-stake model; particularly if such a change is implemented by major rival ethereum. Such a move would not be uncontentious, but may be necessary for the survival of the currency.
 

Christopher Chapman
Analyst, Citigroup

 

Israel will reveal the status of cryptocurrencies in the next six months

Now in Israel people should make their decision on Bitcoin and it will be claimed soon
20 November

 

Israeli Ministry of Finance announced they will do some research on Bitcoin and cryptocurrency together with accounting firms.

This decision came from meeting initiated by Finance Minister Moshe Kahlon. At the meeting they realized Israel wasn’t prepared to accept cryptocurrency.

We are leading this with the minister and very happy to see he is all for it. The committees will begin their operations very fast. In my opinion, we will see results on the ground in up to six months.

 

Moshe Hogeg, Israeli serial entrepreneur.

The situation with uncertainty on Bitcoin mentioned above created a lot of trouble for businessmen and users on cryptocurrency.

For example, in June Tel Aviv district court announced that banks may reject Bitcoin ventures because of the inability to verify the KYC and AML. Also Israeli Tax Authority decided that if Bitcoin is not a legal currency, the sales of BTC will hurt adoption.

Although not everyone supports the recommendations of researchers. In Israel there is at least one high-ranking placeman who is convinced in pernicious impact of cryptocurrencies for economy and many share his view.

The Head of Israel Securities Authority (ISA) expressed his opinion that Bitcoin and ICOs should be strongly regulated. ISA instituted its own committee to assess regulations on Bitcoin and other cryptocurrencies.