Blockchain technology holds key to the future | Farm

What is yield farming in decentralized finance?

This is a pretty long but simple to understand post about the developments in the crypto space. It is meant for beginners to help them join the dots and see the larger picture of what cryptocurrency is about and its ongoing developments
What is Decentralized Finance?
Before we go into yield farming, let me first explain decentralized finance (defi) simply. Defi is considered by many to be a financial revolution that is true to the ethos of Bitcoin, which is to create a monetary system that allows the transfer of value peer to peer yet is not controlled or governed by a country or central bank.
While Bitcoin has been a great store of value as digital gold due to its decentralized nature, there is no team behind Bitcoin therefore there has been no further development in the technology. Hence the creation of Ethereum as a centralized platform that facilitates the growth of blockchain technology and projects that ultimately aims to fulfil the mission of defi.
Yield Farming
Yield farming is basically lending out your cryptocurrency onto defi lending platforms, providing liquidity for loans and being paid interest for it. Most bitcoin holders do this to squeeze extra interest out of their holdings rather than just letting their crypto sit in their wallets. On top of that, most banks today are paying only 0.1% interest for your deposits, whereas Compound is paying 2+% on USDC and USDT. While there are some additional risks introduced with defi lending, some people are comfortable with the added risks and returns.
Compound and Uniswap are the 2 largest defi lending platforms right now with the most Total Value Locked (TVL) contributing to more than 60% of the $2 billion locked in defi. What is interesting is the sudden explosion of TVL in defi contracts. TVL has doubled from $1 billion to $2 billion in less than a month, and this was largely due to Compound's huge growth in TVL from $100 million to over $600 million in a span of 1 week, 15 to 22 June. Within the week, Compound became the leader in the defi lending space.
This phenomenon was largely due to the fact that Compound is giving away its COMP tokens to its users, both depositors and borrowers, proportionally according to the amount that they have deposited or loaned. Which has never been done before, the fact that borrowers are receiving tokens for borrowing. This has led to many people borrowing their own deposits and repeating the cycle a few times to maximize the share of their COMP tokens received every day.
Brilliant and sustainable development or hype?
The key question we need to ask ourselves is if this large spike in TVL is brilliant tokenomics that has unveiled interest in defi and led to actual growth within the space, or is this a fad that will start to die off once the price of COMP tokens start falling?
My personal belief is that it is the former. This is because there has been much progress in terms of innovation within the defi space and the development of Ethereum 2.0. On top of that, new investors are buying into cryptocurrency every day. Institutional investors such as Paul Tudor Jones have about 2% of his assets in Bitcoin. His reasons for buying was that while bitcoin is extremely speculative, and ranks poorly as a store of value, having been around for 11 years only, its market price of $186 billion is a tiny fraction of the $266,917 billion stock and bonds market, which makes it an underpriced asset and a value investment.
Of course, I have a biased point of view that is pro-bitcoin and pro-defi, however, I believe that defi is the next development in the financial market that is in its early stages, and presents a huge step forward and opportunities for investors and people who are looking to grow their wealth.
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Round up of Cryptocurrency News #2 Week 13/07 - 19/07

Round up of Cryptocurrency News #2 Week 13/07 - 19/07
Important/Notable/Highlights:
- https://cointelegraph.com/news/binances-swipe-powered-crypto-debit-card-debuts-in-europe
- https://news.bitcoin.com/twitter-apple-joe-biden-elon-musk-bill-gates-jeff-bezos-uber-bitcoin-giveaway-scam/
- https://dailyhodl.com/2020/07/16/twitter-reveals-cause-of-unprecedented-security-hack-placing-bitcoin-and-cryptocurrency-in-the-crosshairs/
- https://cointelegraph.com/news/paypal-letter-seems-to-confirm-crypto-capability-rumors
- https://cointelegraph.com/news/bitcoin-hash-rate-hits-new-all-time-high
- https://news.bitcoin.com/youtube-helps-scammers-steal-130000-in-bitcoin-from-investors-daily-report/
- https://defirev.com/twitter-hack-2020-bitcoin/
- https://news.bitcoin.com/bitcoin-difficulty-touches-all-time-high-120-exahash-of-hashpower-remains-strong/
- https://news.bitcoin.com/emerging-markets-drive-paxful-first-half-2020-bitcoin-volume-to-1-1-billion/
- https://www.stellar.org/press-releases/stellar-blockchain-now-available-on-samsung-galaxy-smartphones
- https://news.bitcoin.com/aggregate-erc20-market-cap-outpaces-valuation-of-eth-in-circulation-by-2-billion/
- https://news.bitcoin.com/bank-of-england-still-debating-creation-of-central-bank-digital-currency-says-bailey/
- https://news.bitcoin.com/bank-of-thailand-enters-third-phase-of-cbdc-development-now-using-cbdc-with-big-businesses/
- https://dailyhodl.com/2020/07/15/number-of-crypto-merchants-accepting-xrp-has-surged-46-so-far-this-yea
- https://news.bitcoin.com/european-digital-bank-revolut-expands-bitcoin-trading-services-to-49-us-states/

Special Mentions:
- https://news.bitcoin.com/us-dept-of-homeland-security-buys-coinbase-analytics-software/
- https://news.bitcoin.com/tether-freezes-millions-of-dollars-usdt-40-addresses/
- https://news.bitcoin.com/crypto-exchange-cashaa-loses-336-bitcoin-worth-3-million-to-hackers/
- https://dailyhodl.com/2020/07/14/heres-why-institutional-interest-in-bitcoin-btc-and-crypto-markets-is-rising-according-to-huobi-global/
- https://dailyhodl.com/2020/07/13/binance-says-altcoins-taking-center-stage-names-five-top-crypto-assets-as-bitcoin-btc-prepares-for-big-move/
- https://news.bitcoin.com/advocacy-group-claims-irs-issued-crypto-warning-letters-violated-taxpayers-rights/
- https://news.bitcoin.com/south-africa-proposes-new-rules-regulate-cryptocurrencies-alignment-fatf-standards/
- https://news.bitcoin.com/freebitcoins-com-is-open-again-with-three-helpful-tools-for-new-and-old-cryptocurrency-users/
- https://dailyhodl.com/2020/07/18/heres-how-twitter-hackers-are-trying-to-hide-their-trail-of-stolen-bitcoin-btc/
Other:
- https://dailyhodl.com/2020/07/12/crypto-giant-grayscale-boosts-bitcoin-and-ethereum-exposure-at-expense-of-xrp-bch-and-ltc-in-large-cap-fund/
- https://dailyhodl.com/2020/07/17/bitcoin-btc-goliath-grayscale-reveals-1400000000-invesment-in-crypto-funds-in-2020/
- https://news.bitcoin.com/altseason-imminent-most-altcoins-should-gain-on-bitcoin-soon-says-veteran-analyst/
- https://news.bitcoin.com/japanese-listed-company-globalway-plans-to-build-sharing-economy-protocol-and-launch-ieo/
- https://dailyhodl.com/2020/07/13/prominent-crypto-strategist-goes-viral-says-bitcoin-ethereum-and-xrp-poised-for-epic-rally-that-will-put-2017-to-shame/
- https://dailyhodl.com/2020/07/13/binance-says-altcoins-taking-center-stage-names-five-top-crypto-assets-as-bitcoin-btc-prepares-for-big-move/
- https://dailyhodl.com/2020/07/13/dissecting-bitcoins-electricity-consumption/
- https://news.bitcoin.com/abra-crypto-app-sec-transactions-thousands-us-stocks-etfs/
- https://news.bitcoin.com/iran-licenses-bitcoin-mining-farms-cuts-electricity-tariff/
- https://dailyhodl.com/2020/07/14/will-tezos-be-the-altcoin-to-unseat-ethereum-on-the-crypto-market/
- https://dailyhodl.com/2020/07/15/new-class-of-crypto-assets-will-outperform-bitcoin-and-ethereum-in-new-bull-run-says-luke-martin/
- https://dailyhodl.com/2020/07/16/guarda-wallet-launches-new-version-of-the-mobile-app/
- https://news.bitcoin.com/best-defi-interoperability-solutions-exploring-fusion-vs-cosmos-vs-polkadot/
-https://dailyhodl.com/2020/07/18/venture-capitalist-says-flurry-of-fundamental-crypto-events-will-trigger-crazy-q4/
-https://news.bitcoin.com/news-bitcoin-com-lead-writer-jamie-redman-named-one-of-the-best-crypto-bloggers/
-https://dailyhodl.com/2020/07/19/top-analyst-says-bitcoin-ethereum-and-xrp-poised-to-breakout-end-lengthy-consolidation/
So much has happened this week! We saw a capitulation point of bitcoin before bears took over and we saw the selling pressure push Bitcoin down toward the $9000USD mark then move back up above $9100USD So far it has been a stable hold, however we may see some more action within the coming weeks.
Widespread scamming within the Twitter-sphere, Youtube and other platforms as Bitcoin and other cryptocurrencies may seem like fair game. Cryptocurrencies providing big payouts for scammers without the ability for reversals of accounts. Remember if something seems too good to be true, do some research or just plain do not respond/believe it. Stay safe and careful with your funds!
On the brightside, there has been even more adoption of cryptocurrencies as rumours of Paypal utilising cryptocurrency has been confirmed as they are developing crypto capabilities. In addition to this we received exciting news at the start of this week about Binance partnering with Swipe (SXP) and offering a debit card to spend BNB, SXP, BTC and BUSD. ( I will be keeping a swift eye on BNB and Swipe as its utilisation as tokens has just increased 43 fold).
Positive news for the Bitcoin network as its hashrate reaches all time high which helps to secure the network further even though mining profits have dropped by 50% from the recent halving. If you didn't know already the last Bitcoin will be expected to be mined in 2140 with its difficulty ever increasing and each time securing the network further. Processing units will have to become faster, stronger and most importantly more cost effective to continue to entice miners for the block rewards and further renewable energy practices.
Furthermore we can see Central banks and countries discussing and developing Central Bank Digital Currencies (CBDC). Read more about it here https://www.investopedia.com/terms/c/central-bank-digital-currency-cbdc.asp and check out some of the developments in the world above. This shows the popularity and strong nature of cryptocurrencies. As the saying goes "If you cant beat them, JOIN them".
Overall, very solid week full of adoption, animation and anticipation. Another post next week for a weekly round up! See you then but in the mean time join us at our Gravychain Discord.
- DISCORD LINK: https://discord.gg/zxXXyuJ 🍕 Bring some virtual pizza to share 🍕
Come have a chat, stimulate a discussion, ask a question or share some knowledge. We are all friendly crypto enthusiasts up for a chat, supportive and want to help each other with knowledge and investments!
Big thanks to our Telegram and My Crypto HQ for the constant news updates! - The Gravychain Collective: https://t.me/gravychain - My Crypto HQ: https://t.me/My_Crypto_HQ
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Where can I post this to get the discussion about it that I’m aiming for? I’ve already been permanently banned from threads and this is only my 5th post ever. I just want thoughtful discussion on important topics.

Save yourself some time and don’t read this. You’ll never get it, unless you do. In which case I hope you enjoy and think about what I’ve said. You may not agree with it all but you can’t deny it all either. The problem is that I’m right. So am I saying I think the vast majority of the world is wrong and I am right? Yes. It’s not easy to be right when most everyone else is wrong. You’re constantly misunderstood or dismissed. No I haven’t lost it. I’m totally sane. Maybe the most sane I’ve ever been. That probably sounds crazy and maybe it is but if this is crazy I don’t ever want to be sane again.
It’s all of it. It’s not just black or white it’s gray. It’s a mix of the major competing ideas and a cherry picking of the best of those ideas. It’s the new ideas that keep up with our time. There-in lies the solution to our problems. Compromise and use the best parts of the major competing ideas not just one or the other. Think about healthcare. We need both a public and private option. We can’t have just one. We need both. A public option for the poor or disenfranchised and a private option for the wealthy and those who can afford to get private insurance. Wet markets and factory farming will be the death of us if we don’t outlaw that shit worldwide as soon as possible. Yes this means less meat in our diets. Look at the data. This is actually good for us. Take climate change. We can’t just stop using fossil fuels tomorrow. We need to phase them out while figuring out how much we can burn without negatively effecting our environment and then allowing the poorest countries to continue using fossil fuels in the interim while they grow their economies to prearranged milestones where they must phase in renewables. Take capitalism. Our society’s trade platform. It must be a mix of capitalism with restraints and restrictions strategically implemented to thwart the worst parts of greed, corruption and pollution. Along with a public option for healthcare and education. It’s socialism and capitalism meshed together. Republican or Democrat? We need a third option. The ruling party. The party that uses the best parts of both ideas and dumps the junk bunk bullshit that drags us down. The tie breaking vote cast in favor of either side, whenever it is they happen to have the better idea. This ruling class is called the Digerati. Not my term. They need to be the deciding voice of reason because they see the world for what it is. They are already silently leading the world. They are the Facebooks the Googles the Microsofts the Ubers the Teslas. I could go on. The Expedias the Amazons, you get the point. They have seen that digital technology trumps old analog technology in almost every industry. They have come in and dominated the old with the new. Taking voting for instance. We need to offer all viable options to increase voter turnout and opportunity. That means in-person, mail-in, Internet, and smartphone via blockchain. Putin will rule us all if we don’t band together against him. Hopefully I’m wrong there and his overreach will be the death of him, but that’s for time to tell. It’s not just religion or atheism and nothing in between. It’s spirituality. No not the traditional Christian soul “spirit” bullshit. Nothing supernatural in the standard sense. It’s the interconnectedness of everything down to a basic atomic level that binds all things. The problem also lies in our broken criminal justice system and the for-profit prisons that lobby to keep it that way. It’s the NRA and the gun lobby stopping us from having common sense gun law and closing the purchase and tracking loopholes. It’s the corrupt gang of thugs called the police who kill innocent people on the regular with seemingly no ramifications. It’s the irrational and crooked stock market putting this false face on the economy but we don’t have any other simple numbers to base the complexity of the economy on so we deal with it. We let these Wall Street crooks live in their ivory towers laughing at us. Selling us bits of 1’s and 0’s in the cloud somewhere that we never actually own. If we did they’d give us all our proportion of the profits equivalent to the shares we own. It happens but rarely. It’s just as bullshit as the concept of paper money backed by the Fed and nothing else. Even gold, what’s that worth anyway? Seems to me something is only worth its weight in what it can do or provide. Gold has its uses and therefore has value but it’s still an inflated illusion. Not that bitcoin isn’t based on a similar illusion but it’s far superior to paper money. More important than just bitcoin is the blockchain technology itself. This is going to change the way we do everything. All the big companies and leaders already know what’s coming. It’s going to change banking, voting, critical infrastructure security, contract law, stock trading, real estate, healthcare, supply chain management, music and entertainment property rights and IP etc etc etc. I could list 40-50 major industries that will be impacted in a huge way by blockchain. All technology is growing faster and faster. Exponentially so. So fast we can’t comprehend it. The growth of AI and the invention of bitcoin are changing the world so fast you can’t even see it. My point is it’s all going to change very fast. This country is not long for this world if we don’t make some massive changes, and I mean quickly. No more assholes like Trump ever can be elected to such high offices. Never let the stupid overtake the enlightened again because of technicalities. All these crooked politicians need to go to jail. For life. To set the example for all time. This bullshit will not be tolerated. The Constitution has failed us. Just look at the dysfunction in the Congress and Senate and now the White House. We’ve had some clowns in office before but nothing this extreme. China is going to overtake the USA in digital and cryptocurrency as they are embracing the technology far more. Bitcoin is coming for your wallets so you better get onboard or get left behind. New digital millionaires and billionaires are being minted daily. The world is becoming increasingly more dangerous every day. The poor and the left-out are growing in numbers and it’s only going to get worse. Those who can see, I mean truly SEE what’s going on, will rule the world. Those who don’t see it will be pushed further and further down out of the middle class and into poverty. This is going to create great disparities of wealth beyond anything the world has seen in quite some time. Think India’s caste system on steroids. So what can we do? We can embrace the future. We get as much bitcoin as we can get our hands on as soon as possible before only the elite have access to one whole bitcoin. Don’t pick up the scraps. Make your own way now. Don’t let the asshats rule the world. The Trumps the Putins the Bolsonaros and the Boris Johnsons of the world can’t be left in power. They are destroying everything we know and love. There are major political changes happening right now that will negatively impact all of our lives. They are the fault of McConnell, Trump, all the judges he’s appointed, and the entire Republican establishment. The Democrats are only marginally better. We need to throw out our failed institutions and start over with lessons learned. We need to actually make a real separation of Church and State. No more muddy water. No more bullshit child rape organizations like the Catholic Church allowed to claim tax free status and then take PPP Loans from our tax dollars. If they are a business that can receive PPP then they can be taxed like one. And why isn’t the Pope in jail. If I was the lead architect for covering up thousands of child rapes you can bet your ass there would be an international warrant for my arrest but instead he’s treated like a top celebrity and revered by some as next to “God”. There is a better way. Now is the time to move forward with plans to right the ship. Arguably there has never been a better more apropos time than now. This pandemic has pushed our country to the brink of failure. We also probably need to think about a backup plan. A plan to create a new country with those who understand what’s really happening. I’m not sure what exactly that looks like. Maybe we secede California or Texas from the union. Maybe we let Bezos buy an African country and pay all of its citizens handsomely to leave. Then from there we start a new world order. Yes, I said new world order. The term we’ve all been taught to fear our whole lives. What does the status quo have to be so scared of that it’s brainwashed us all to be scared at the mention of a new world order. That idea is obviously huge and has its own complications. I’m not talking about microchipping everyone either. I’m talking about real freedom. We’ve given up our liberty in pursuit of safety. We given up honest governance in place of partisan wins. I don’t pretend to know the ultimate answer to all things. Just the formula. There are multiple possibilities. I don’t think there is only one way to skin this cat. We can get to the same outcome via many routes as long as the mission is clear. Do what makes the most logical sense and will actually work verses what is politically expedient. Be the solution.
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Cryptocurrency Mining Powered By Alternative Energy Sources

Cryptocurrency Mining Powered By Alternative Energy Sources
What is mining, or more specifically, cryptocurrency mining (crypto mining for short), and why is it important? Most cryptocurrencies, especially the ones based on the idea of the blockchain digital ledger (or just the blockchain in crypto parlance), utilize the process of so-called mining to verify payments and add transactions to the blockchain. There are many forms of mining, but what is common to all of them is intensive power consumption. And to say that crypto mining is power-hungry would be an understatement of the century.
by StealthEX

Conventional vs. Alternative Energy Sources

It’s not a secret that most of crypto mining facilities are located in China. But what is less known, though, is the fact that some of these facilities are still powered with electricity generated by burning fossil fuels such as coal. And while the share of coal in the nation’s energy mix has been steadily declining since 2010, it still accounts for over half of the Chinese total energy production. Coal in China is thought to be a major contributing factor to global warming, and crypto mining powered by coal-derived electricity can hardly be considered eco-friendly as it directly translates into massive carbon pollution on a world scale.
These issues force the top industry players to look for alternatives to conventional sources of energy that would not only make their mining farms and energy-thirsty rigs bring home more money but also reduce the negative impact of crypto mining that it has on the environment. There are many renewable energy sources that are currently available to miners. The ones that can be usefully utilized in crypto mining are solar, wind, geothermal, and hydropower. Once an energy source has been procured, it all comes down to the question of whether it is more profitable to use this energy for mining, or simply sell it to the grid.
With Bitcoin prices rising, many green energy producers have become interested in crypto mining due to numerous benefits it offers, with the revenue flow being neither the last nor the least of them. Sometimes the profits generated by crypto mining surpass the wholesale energy prices by thousands of percent. Quite naturally, it is hard to ignore such profit opportunities, apart from the warm feeling of using a green and eco friendly energy solution. This is reported to be the new norm among many energy producers, whatever their source of electricity might be.
For example, a lot of European solar energy producers are now looking into mining operations as an alternative to selling the energy to the grid for the simple reason crypto mining allows them to earn more when the energy prices are low as has been the case in recent years. Apart from earning via crypto mining, they also save enormously on energy costs incurred by purchasing electricity from the grid for everyday needs. Despite the initial costs, the cost reduction over years can be a crucial factor in turning to solar power for crypto mining operations.
Windy places are not uncommon on planet Earth, and Texas is one of such places with installed wind power capacity exceeding 28 gigawatt, mostly in West Texas. It’s little wonder it has attracted a number of high-profile mining businesses such as Bitmain as well as a bunch of notable venture capitalists looking for investment opportunities in Bitcoin mining arena. For example, Bitmain opened a mining facility there in past October, which the company was going to scale up shortly. A few big names in tech investing, including the PayPal cofounder, financed a crypto mining startup, Layer1, which also launched a mining operation in West Texas.
Just like with solar and wind energy production being a viable economic solution in countries with copious amounts of sunlight and wind, nations that boast vast hydroelectric capacities such as Brazil, Canada, Russia, and, ironically, China offer very cheap electricity rates to businesses, especially those next to hydroelectric facilities. It comes as no surprise that many crypto mining operations gravitate toward cheap sources of hydroelectricity, and are deployed in regions where cheap hydroelectric power is just around the corner.
Hydropower offers the lowest cost of electricity worldwide by and large, and it also turns out to be renewable as well as clean and green. These two factors make it hands down an energy source of choice for crypto mining operations. As just one illustrative example, the Siberian city of Bratsk has become home for the largest data center in the post-Soviet states, which entered into operation a little over a year ago. Dubbed BitRiver, it now serves clients from every quarter of the world, while its facilities are primarily used to mine Bitcoin – thanks to cheap electricity supplied by the nearby hydroelectric powerhouse built by the Soviets in 1960’s.
Iceland is likely not the very first location that comes to mind when the topic of crypto mining is brought up. However, the country has turned out to be a mecca for crypto mining due to its naturally low temperatures and amazing amount of easily accessible geothermal energy that provides power to big mining farms at virtually no cost. The country has surplus of electricity at extremely low prices, which comes from its geothermal, magma-fuelled powerhouses with no carbon footprint. As it stands today, crypto mining operations on this remote North Atlantic island use more electricity than all Icelandic households combined.

The Future of Crypto Mining

The takeaway from the above is that crypto mining energy needs will most likely keep on surging in the coming years, and still more so if cryptocurrencies continue on their path toward mainstream adoption and widespread acceptance. This results in serious concerns about the sustainability of the effort over the long run, both in terms of its negative environmental impact and sheer energy consumption. In light of these developments, the direction cryptocurrency mining will be taking in the near future is arguably further toward energy solutions alternative to conventional ones, especially those based on non-renewable sources such as fossil fuels, and, more generally, toward more eco friendly crypto mining – at least as long as mining profitability is maintained.
Original article was posted on https://stealthex.io/blog/2020/06/09/cryptocurrency-mining-powered-by-alternative-energy-sources/
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China Opens A New Era In Blockchain History

In 2020 the main world news about blockchain and cryptocurrency come mainly from China, whose policy in this sphere was already called “super-aggressive”. Mining state calls blockchain the main innovative technology, they say it fuels the competitive environment for the crypto business and connects large bankers and telecommunications giants.