Welcome to This Week in Crypto, your weekly briefing on the latest developments shaping the cryptocurrency landscape. In this edition, we delve into the dynamics between Bitcoin and clean energy, as a new report views it as a critical tool for grid stability and efficiency. We’ll also cover AntPool’s generous move to correct the costly $3 million transaction fee that occurred last week. Additionally, we navigate the new highs of the crypto market as Bitcoin surpasses the $41,000 mark, marking its highest point in the last 19 months. Join us as we unravel the stories that define the week in crypto.
Report: Bitcoin Mining a 'Critical Tool' for Clean Energy and Grid Stability
In response to persistent claims about Bitcoin’s environmental impact, a newly published working paper on Bitcoin mining argues that it is a “critical tool” for promoting clean energy and grid stability. Authored by advocates for Bitcoin and the former president of the Electric Reliability Council of Texas (ERCOT), the paper contends that Bitcoin mining can enhance grid flexibility.
The authors present case studies showcasing Bitcoin miners participating in demand response programs and offering grid services in Texas, highlighting their unique flexibility to handle controlled loads. The paper directly challenges the narratives of those who have blamed Bitcoin miners for excessive energy usage and grid strain. Despite acknowledging that the overall impact of Bitcoin on global energy demand and climate change is complex, the paper suggests that emerging data indicates a more minimal effect.
This perspective also aligns with a Cornell University study demonstrating how wind and solar projects can benefit from Bitcoin mining, challenging the prevailing narrative around Bitcoin’s environmental impact. As the discussion on Bitcoin’s sustainability continues, the paper underscores the potential positive role of Bitcoin mining in the broader context of clean energy and grid stability.
Bitcoin Miner AntPool Offers to Refund Record $3 Million Fee
Bitcoin miner AntPool has decided to refund the unprecedented $3 million transaction fee mistakenly paid by a Bitcoin user last week, given that the user verifies their identity before December 10. AntPool explained that its risk control system had temporarily frozen the fee during the transaction packaging process. To claim the refund, the user must use either Electrum or Bitcoin Core as a signing tool, utilizing the private key of the transaction-sending address to sign the message “AntPool”. The signed text should then be sent to AntPool’s support email address.
The erroneous transaction occurred in block 818087 when the sender intended to transfer 139.42 BTC, valued at approximately $5.1 million. However, a colossal 83.64 BTC was inadvertently spent on transaction fees, leaving the recipient with a reduced 55.77 BTC, equivalent to around $2 million. This incident follows a trend of recent occurrences where substantial Bitcoin transaction fees have been refunded. In a similar case in September, Bitcoin miner F2Pool agreed to refund a $500,000 transaction fee paid by crypto firm Paxos for processing a $2,000 transaction.
Bitcoin Hits 19-Month High Amid Increased Spot ETF Approval Anticipation
Bitcoin surged past the $41,000 mark, reaching its highest point in the last 19 months amid optimism surrounding a potential spot exchange-traded fund (ETF) approval in the U.S. The surge is part of a broader trend, with the cryptocurrency’s price exceeding $41,000 over the weekend and demonstrating an 18% increase in the last 30 days. Ethereum has also witnessed a slight increase, trading above $2,200 for the first time since May 2022.
The recent price surge occurs amid ongoing discussions between the U.S. Securities and Exchange Commission (SEC) and key players in the Bitcoin ETF space. The SEC has held meetings with companies like Grayscale and BlackRock, discussing proposed amendments to their spot Bitcoin ETF applications. While the SEC has not publicly committed to approving a spot Bitcoin ETF, these discussions have generated much excitement in the cryptocurrency community.
