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Blockchain and climate change: Why Greta Thunberg should issue a CO2-token?

By Marius-Cristian Frunza
Weekly Briefs

Greta Thunberg, the baby-Valkyrie fighting against climate change went to Davos to confront the Orcs of global business in an effort to persuade them to emit less carbon dioxide. However, the topics related to climate change or crypto-currencies were massively ignored by the key decision-makers.

While politics may not give the right answers to Greta’s questions, cryptocurrencies have better things to offer.  The carbon dioxide is ubiquitous in nature, meaning that 1 kilo of Co2 emitted in China has the same impact on global warming as 1 kilo emitted in the United States.  

Currently, environmental lobbyists like Greta want to push forward the regulation across various countries. But, not all countries have the same polices for tackling CO2 emissions. While some have implemented carbon taxation, others have solutions based on financial instruments (like the EU) and most do nothing. What is needed is a global policy and a unique price of CO2. Therefore, a climate change crypto-currency would be the ideal solution as it could align all policies and mechanisms around the world.

Market overview

As anticipated the cryptocurrencies retreated over the past week, finding a support level at 8300 USD and entered a region of low volatility. The previous volatility peak occurred in November 2019. The Bitcoin’s price sits well inside Bollinger’s bands and the Relative Vigor Index does not underline any clear trend. The market entered in a period of local equilibrium and the futures swings will be determined by changes in market expectations.

Coin of the Week:

Is Ripple anathema to the Crypto-community?

Ripple’s CEO Brad Garlinghouse thinks IPOs will become popular in the world of cryptocurrencies and blockchain, suggesting that Ripple may take this avenue in the foreseeable future. ICO was the vehicle designed by the crypto-sphere to democratize the access to funding and to revolutionize the investing industry. Instead of revolutionizing investing, ICO revolutionized scamming. Fraudulent projects that took coins and disappeared, rogue founders with stolen pictures from Linkedin and companies which never delivered more than a landing page built by students from Yakutia are only a few reasons why ICOs lost ground over the past two years.

But, the cryptocurrency industry going for IPOs is nothing more than a violation of the very principles constituting its own foundation. First, it means that Wall Street-based investment banks will run the entire show of going public. It also means that traditional financial markets regulation will apply to the cryptocurrencies industry, implying that the government will be more involved in the crypto-universe.  And, especially it would mean that the valuation of cryptocurrency or blockchain businesses will be made in dollars or other traditional currency, thereby underlining that fiat money would prime in the eyes of the investors over cryptocurrency.

Interestingly enough, Ripple lost 30 % over the last year a big cut compared to other coins, while the equity market showed a historical performance,  Nasdaq and S&P 500 increasing by over 25%. These figures explain why IPO is more attractive to some. During the 2017 bubble, thousands of crypto-evangelists appeared overnight, but 3 years later the crypto-currency industry will observe who are the real believers.  "For many are called, but few are chosen” (Matt. 22:14)

Meanwhile in the crypto-world…

Paper may become less Popular with Pornstars

The pornographic platform, Pornhub, added USDT (Tether) world's biggest stable-coin in terms of capitalization as a mean of payment. This occurred after PayPal withdrew support due to compliance reasons. We should expect that platforms providing adult content and services like Snapchat, Seeking.com , Camrabbit.com or Livejasmin.com follow the same path.

Central banks move slowly into crypto

Bank of International Settlement announced that few central banks including European Central Bank, Bank of England and Bank of Japan are assessing the launch of central bank for digital currency. The next step would be to assess the launch of a central bank for cryptocurrencies.

Commodities backed stable coins

Tether announced the launch of a gold-backed stablecoin (Tether Gold XAUT). The XAUT token represents ownership of one troy fine ounce of physical gold on a specific gold bar.

Market outlook

We expect the market to move directionless over the next week and to oscillate around the current levels. Therefore, Bitcoin's price may remain in the interval between 8300 USD and 8600 USD, and follow a bearish trend over the next month. Ripple is expected to dip below the 0.22 USD support level.

Next week we will witness the historical withdraw of the United Kingdom from the European Union. Being eager to escape Brussels’ hegemony and to attract more investors, the UK’s government may move towards a friendlier approach for the crypto-currency industry.

General Disclaimer

The information and data published in this research were prepared by the market research department of Darqube Ltd. Publications and reports of our research department are provided for information purposes only. Market data and figures are indicative and Darqube Ltd does not trade any financial in- strument or offer investment recommendations and decision of any type. The information and analysis contained in this report has been prepared from sources that our research department believes to be objective, transparent and robust.

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