Bitcoin Starts Fourth Quarter with a Bang as “Uptober” Accelerates
- El Salvador discovers a way to mine bitcoin with the help of volcanos
- The US central bank says it has no intention to ban Bitcoin
What’s New with Bitcoin?
Mining bitcoin with volcanos is now a fact. El Salvador’s president Nayib Bukele announced via Twitter that his country is now using geothermal energy to mine Bitcoin. “First steps”, said Mr. Bukele in a video he posted last week. In detail, the short clip shows a data center in the forest and a worker getting ready to turn on a Bitcoin mining machine.
Bitcoin mining is the process of creating and distributing Bitcoin in a decentralized environment powered by computers.
In More Detail
Furthermore, President Bukele provided an update on the innovative method to mine Bitcoin. On Saturday, Mr. Bukele posted an image, showing El Salvador has mined almost $500 worth of bitcoin, or a total of 0.01083155 BTC.
Adding to the positive developments, the Federal Reserve said it had “no intention” to ban bitcoin and cryptocurrencies. Speaking in a hearing before the US House Committee on Financial Services, Fed Chairman Jerome Powell provided his take on cryptos. “No intention to ban them [cryptocurrencies],” Mr. Powell said in response to a question.
It’s worth noting that the Federal Reserve is the US central bank. Jerome Powell, as the head of the Fed, is the top regulator. On that note, his position toward cryptocurrencies is very important. In the meantime, he has been exploring the blockchain industry with the intention to create a digital dollar.
Why is It Important?
On the one hand, bitcoin mining has been a controversial topic due to its carbon footprint. With this in mind, El Salvador’s state-owned electricity company pledges to use “100% clean, 100% renewable, 0 emissions energy” from volcanos.
On the other hand, Mr. Powell’s approval of cryptocurrency sparked hopes that US lawmakers might welcome the fast-emerging crypto space.
The Bottom Line
Both developments, El Salvador’s innovative solution to Bitcoin mining, and Jerome Powell’s accommodative stance, helped power a month traders now call “Uptober”.
A playful term describing the upward trend in crypto for October, the “Uptober” period is living up to its name.
By the numbers, the price of bitcoin on Sept. 29 was around $40,000. Near the end of Oct. 1, the orange coin was higher by nearly 20% to levels around $48,000 per token.