2022 has not been the best year for any of the cryptocurrencies. The companies that were able to weather the storm were the ones that maintained a responsible and prudent business model. Some businesses could keep their operations afloat by taking advantage of the low cost of capital made available to them due to historically low interest rates. However, with interest rates on the rise in the current economic climate, this strategy is no longer viable. The mining companies that have emerged unscathed from this round of consolidation are, quite simply, the cream of the crop.
Despite this, there are promising signs that a rebound is on the horizon, particularly when it comes to Bitcoin mining.
Bitcoin’s potential to thrive in the long run is something that Barclays (BCS) continues to see favorably. Why? Let us take a look.
Africa
A boost is coming from the unlikeliest of places: sub-Sahrahan Africa. Yes – while they still represent the lowest total transaction volume across all regions, a grassroots crypto movement is growing there, helping to fuel a rebound.
Africans are responsible for the highest proportion of retail payments totalling less than $1,000 (80%) and are also responsible for a much higher proportional volume of peer-to-peer transactions (6%) than people in any other region in the world.
401(k) deposits
The announcement that investors will be able to place Bitcoin deposits into their 401(k) retirement plans were made by Fidelity Investments, making it the first company to make such a policy change.
Employers who use Fidelity to manage their retirement plans will be able to purchase the cryptocurrency product by the middle of 2022. It is possible that the decision of Fidelity, the largest retirement-plan provider in the United States and manages assets worth USD11.3 trillion, will contribute to the widespread adoption and popularity of cryptocurrency.
Individuals who want to include cryptocurrencies in their long-term investment strategies follow the lead of plan sponsors who are increasingly interested in vehicles that allow them to give their workers access to digital assets through defined contribution plans.
Tesla
Elon Musk’s company Tesla is forming a partnership with Blockstream and Block (previously Square) to establish a Bitcoin mining farm. Musk has been a supporter of Bitcoin for a significant amount of time. Block is a technology company that was founded by Jack Dorsey. Blockstream is a blockchain technology start-up run by one of the company’s co-founders, Adam Back. The purpose of the collaboration is to use Tesla’s 3.8-megawatt solar PV array and 12-megawatt-hour Megapack battery energy storage devices to power the mining farm. This will make it possible to mine Bitcoin in an environmentally responsible manner, ultimately resulting in a smaller carbon footprint for Bitcoin.
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