Six Capital Insider: Your Monthly Review
Welcome to our latest Six Capital Insider newsletter, with interesting updates and insights from the world of Web3 and blockchain technology. In this monthly newsletter, we will talk about the successful Ethereum update, holding Bitcoin and the U.S. “debt ceiling.”
Newsletter May
- Positive results update Ethereum
- Holding Bitcoin more popular than ever
- America’s Debt Ceiling: Pause for Crisis
Positive results update Ethereum
Ethereum, the world’s second-largest digital currency, has made tremendous strides in energy efficiency. With the long-awaited update called “The Merge,” Ethereum has shelved its old consensus mechanism – Proof of Work – and embraced the new, more efficient Proof of Stake. After several months, the results are here, and this groundbreaking change has resulted in a stunning 99.99% reduction in energy consumption.
The prestigious Cambridge Centre for Alternative Finance has given us insight into the real impact of this change. Ethereum, which previously consumed as much energy as all of Switzerland with a consumption of 21.4 terawatt hours, is now down to just 6.6 gigawatt hours – about the same as 2,000 British households.
This historic update is not just a technical adjustment, but an important milestone in the evolution of cryptocurrency. ‘The Merge’ shows that powerful blockchain technology need not come at the expense of the environment. With this update, we have leaped forward into an era where digital currencies and sustainability go hand in hand. The first steps have been taken and we eagerly await what the future holds for this green evolution in the world of cryptocurrency.
Holding Bitcoin more popular than ever
Despite market turmoil, Bitcoin ‘HODLing’ remains more popular than ever. According to data from Glassnode, the leading blockchain activity analysis platform, 68% of all Bitcoin has been sitting uneventfully in the same wallets for a year, 53% of them for two years and a strong 40% of them for three years. These percentages are all higher than ever before and imply an increasing number of long-term holders who believe in Bitcoin’s long-term future.
The average investor does not shy away from market volatility and has no intention of selling, even after FTX’s big fall last year. Confidence remains high, with more Bitcoin owners opting for a long-term strategy.
America’s Debt Ceiling: Pause for Crisis
This past week, the U.S. House of Representatives, supported by both Democrats and Republicans, passed a bill to suspend the $31.4 trillion debt ceiling. This inevitable step is designed to ensure that America can meet its financial obligations.
The debt ceiling, a limit on the total amount the U.S. government can borrow, has been a hot topic in the political arena. By suspending this ceiling, more funds can be unlocked (read: money added) to meet financial obligations. Still, there are some concerns about potential risks, such as even more rising inflation and a downgrade in the credit rating of the U.S…..
From a more decentralized point of view, fiscal responsibility and economic growth are seen as key to a more sustainable solution. The government should be urged to start reducing the ever-growing national debt and stop printing money, instead of accepting a now unlimited ceiling and continuing to push problems forward. This is a path that sooner or later leads to failure of the financial system.
We believe in the importance of a decentralized financial system which is based primarily on debit rather than credit.
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