Welcome to This Week in Crypto, your go-to source for the latest updates and insights from the world of cryptocurrencies and blockchain technology. In this edition, we delve into the dynamic world of digital assets, featuring three prominent stories. First, we explore the fluctuations in Bitcoin’s price amid Grayscale’s legal victory and Bitcoin ETF delays. Next, we uncover the latest findings from the University of Cambridge, shedding new light on Bitcoin’s energy consumption. Finally, we take to the skies with Lufthansa’s innovative NFT loyalty program, which leverages Web3 technology to reward passengers for traveling. Join us on this crypto journey as we navigate the headlines and dive into the fascinating developments shaping the crypto landscape this week!
Bitcoin’s Price Jumps Amid Grayscale Win, but ETF Delay Slows Momentum
Bitcoin saw a significant surge in price last week amid the United States Court of Appeals ruling in favor of Grayscale’s Bitcoin spot ETF request for review. The cryptocurrency jumped over 5% in just an hour, reaching a price of $27,425. This development sparked optimism among investors that a U.S. Bitcoin spot ETF might become a reality, potentially providing an alternative means for traditional investors to access the cryptocurrency market.
However, this surge was short-lived as Bitcoin subsequently retraced most of its gains amid the news that the SEC would delay decisions on several pending spot Bitcoin ETF applications. Bitcoin’s price dipped nearly 5%, falling to approximately $26,000. The delayed ETF applications, including those from BlackRock, WisdomTree, VanEck, Valkyrie, and Fidelity will remain under review by the SEC, with decision deadlines ranging from October 16 to October 19.
The market now waits to see whether these applications will be approved, denied, or further delayed, with the possibility of decisions stretching into mid-March of the following year.
University of Cambridge Updates Bitcoin Energy Consumption Estimates, Reveals Significant Overestimation
The University of Cambridge has updated its Bitcoin Electricity Consumption Index (CBECI) after three years, revealing that previous estimates of Bitcoin’s energy consumption were significantly overstated. The revised data indicates that in 2021, Bitcoin’s electricity consumption was around 89.0 terawatt-hours (TWh), significantly lower than the earlier estimate of 104 TWh. The 2022 estimate was also adjusted down to 95.5 TWh, placing Bitcoin’s electricity consumption on par with that of U.S. tumble dryers.
The need for this revision arose from an outdated methodology that overestimated the number of older mining hardware and failed to account for the increasing efficiency of newer ASIC hardware devices. While the updated figures align with a Coin Metrics study, some experts still believe they may overestimate energy consumption during bull markets. Despite ongoing debates, Cambridge’s latest estimate for Bitcoin’s 2023 energy consumption stands at 70.4 TWh.
Lufthansa Unveils NFT-Enabled Loyalty Program Built on Polygon
Lufthansa, one of Europe’s largest airline groups, has unveiled its nonfungible token (NFT) loyalty program on the Polygon Network. The program takes place on an app named Uptrip, which allows passengers to convert their flight experiences into NFTs. The NFTs can then be used to unlock a variety of rewards, including miles and access to business lounges. To participate, passengers can scan their boarding passes using the Uptrip mobile app and exchange them for NFT trading cards. These cards can be collected within the app, and users can connect their crypto wallets to mint and transfer their Uptrip NFTs. Upon completing specific NFT collections, passengers become eligible for enticing rewards like flight upgrades, airport lounge access, frequent flier status, or award miles.
Lufthansa’s move into the NFT space aims to make Web3 more accessible to its customers, as Web3 technology is still in its early stages. The program has garnered significant interest, with over 20,000 sign-ups and the minting of more than 200,000 NFT trading cards. Notably, other players in the airline industry, such as Emirates, have also expressed interest in integrating Web3 technologies into their businesses, signaling a growing trend of NFT and cryptocurrency adoption within the aviation sector.
