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How Bitcoin mining saved Africa’s oldest national park from bankruptcy
The Virunga National Park’s Bitcoin mine in the Democratic Republic of the Congo monetizes surplus energy for conservation efforts.
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The Virunga National Park's Bitcoin mine in the Democratic Republic of the Congo monetizes surplus energy for conservation efforts.
Virunga National Park in the Democratic Republic of the Congo has become the first national park in the world to run a Bitcoin (BTC) mine in an effort to protect its forests and wildlife. Cointelegraph spoke with Sébastien Gouspillou, CEO of Big Block Green Services, and the man who introduced Bitcoin mining to the park.
Speaking via video call, Gouspillou said with a smile: “Bitcoin mining saved the park from bankruptcy.”
Virunga is Africa's oldest protected park and a symbol of the continent's biodiversity. A report by journalist Adam Popescu, published in MIT Technology Review, explained that the region was plagued by issues prior to Bitcoin mining. From local militias that waged violent attacks on its animals and employees to outbreaks of Ebola to kidnappings, the emblematic national park has struggled for revenue in recent years.
The COVID-19 pandemic and its subsequent eradication of tourism was almost the nail in the coffin for the park, as visits to see the gorillas, other wildlife and waterfalls dried up. The article explained that tourism represented roughly 40% of the park’s revenue.
When Gouspillou learned of the park’s strife, he felt compelled to help. He met with Emmanuel De Merode, the park’s director — and a Belgian prince by bloodline — at a chateau in France at the tail end of 2019. Gouspillou explained that he immediately recognized the tremendous opportunity the park presented.
The park could monetize its abundant and untapped natural resources to preserve its existence. Gouspillou explained to De Merode how Virunga could turn to Bitcoin mining to generate income.
The conversation in the chateau was non-stop. “It must’ve lasted hours,” Gouspillou explained. The discussion, as well as follow-ups and a visit to Congo, eventually culminated in De Merode setting up the first portions of the mining operation in early 2020, which successfully mined the first coins in September of that year.
Almost three years later, the park earned significant income from Bitcoin. During some months of the 2021 bull run, the park was rewarded upwards of $150,000 a month — almost entirely offsetting lost tourist income.
Virunga's Bitcoin mine is a unique solution to the problem of preserving the park's biodiversity while also generating revenue. Bitcoin mining is a highly energy-intensive process, but Virunga's mine is unique in that it runs on clean energy: It’s green technology surrounded by green rainforest.
The mine is powered by three hydro plants within the park, a sustainable source of electricity that was already being used to power nearby towns. The site has hired nine full-time workers, who work in rotating shifts operating the miners in the jungle, to staff the facility. Fearless rangers protect the site — a story that inspired a Netflix documentary, among other things.
The facility has 10 shipping containers, with each container holding 250 to 500 rigs. Virunga owns three of these containers, Gouspillou the remaining seven. Gouspillou purchases energy from Virunga as part of the arrangement, while keeping the mined Bitcoin.
Plus, as Gouspillou explains, the existing Bitcoin mining facility is part of a “global plan,” in which there will be further power-generating opportunities. Other power stations will be set up across the park, he explained, to connect local villages to electricity and, of course, mine more Bitcoin.
De Merode is steadfast that the project will be successful despite the ongoing bear market. Indeed, some Bitcoin miners fell victim to the 2022 bear market, but De Merode occupies a unique position: The park is not speculating on the value of Bitcoin, but generating Bitcoin using surplus energy to monetize something that otherwise has no value.
Plus, there is little risk of the Bitcoin (or private keys) disappearing if De Merode is killed in action. Over 200 of the park’s security, or rangers have been killed since 1996 — and De Merode was shot twice while traveling to Goma in 2014, so it’s a tragic but possible outcome that must be prepared for.
The park’s finance team manages custody of the Bitcoin wallet, and funds generated by the mine are sold regularly to pay for the park’s upkeep. In the MIT Technology Review article, De Merode is quoted as saying:
“It’s unlikely we sit on Bitcoin for more than a few weeks anyway, because we need the money to run the park. So if something happened to me or our CFO lost the password, we’d give him a hard time—but it wouldn’t cost us much.”
Similar to El Salvador’s treatment in the mainstream media, the “bet” that De Merode made has invited skepticism from experts who wonder what crypto has to do with conservation. Gouspillou explained that it took some time for De Merode to refer to the project as a Bitcoin mining project, preferring to use the term “blockchain mining,” as it’s more PR-friendly.
For Gouspillou, he hasn’t been able to find a downside to the story of how a Bitcoin mine has saved a national park:
“It’s really hard to find a negative side to this story. There’s nothing. The energy is clean, even the ASICS — we will recycle them when they come to the end of their lifespan by distributing them across African communities.”
ASICS, or application-specific integrated circuits, are Bitcoin mining machines. Every 10 minutes, ASICS take part in a digital lottery to guess the next Bitcoin block on the Bitcoin time chain. As Gouspillou explains, these machines will be broken down and recycled, avoiding e-waste. The miners use excess, clean energy, and De Merode uses that funding to protect wildlife.
Buoyed by the success in the Congo, Gouspillou has his eyes on other Bitcoin mining projects in Sub-Saharan Africa. He was part of the delegation that visited the Central African Republic — the second country to adopt Bitcoin as legal tender.
Bitcoin mining projects in Africa using untapped and renewable energy appear to be a growing trend. From the mountains of Kenya to the tropical climes of Malawi, Bitcoin mining is cropping up in incongruous areas of the globe.
Magdalena Gronowska, regular Cointelegraph contributor and and Bitcoin mining specialist, explained why:
“Miners are buyers of first resort (always want to run) and last resort for overproducing energy locations to become economically viable. As consumer demand grows in a community, Bitcoin mining can be decreased or removed entirely, but it enabled critical infrastructure to be built out.”
In essence, if a region offers stranded or abundant, overproduced energy, a Bitcoin mine could be financially appealing.
Nonetheless, the park still needs funds and investment. The Congolese government provides just 1% of its operating budget while tourism will remain low while conflicts threaten safety. As Gouspillou explains, Bitcoin mining is one solution to the park’s problems, as it provides a source of revenue that can be used to protect the park and its wildlife for years to come.
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Homes listed for sale in early June sell for $7,700 more
New Zillow research suggests the spring home shopping season may see a second wave this summer if mortgage rates fall
The post Homes listed for sale in…
- A Zillow analysis of 2023 home sales finds homes listed in the first two weeks of June sold for 2.3% more.
- The best time to list a home for sale is a month later than it was in 2019, likely driven by mortgage rates.
- The best time to list can be as early as the second half of February in San Francisco, and as late as the first half of July in New York and Philadelphia.
Spring home sellers looking to maximize their sale price may want to wait it out and list their home for sale in the first half of June. A new Zillow® analysis of 2023 sales found that homes listed in the first two weeks of June sold for 2.3% more, a $7,700 boost on a typical U.S. home.
The best time to list consistently had been early May in the years leading up to the pandemic. The shift to June suggests mortgage rates are strongly influencing demand on top of the usual seasonality that brings buyers to the market in the spring. This home-shopping season is poised to follow a similar pattern as that in 2023, with the potential for a second wave if the Federal Reserve lowers interest rates midyear or later.
The 2.3% sale price premium registered last June followed the first spring in more than 15 years with mortgage rates over 6% on a 30-year fixed-rate loan. The high rates put home buyers on the back foot, and as rates continued upward through May, they were still reassessing and less likely to bid boldly. In June, however, rates pulled back a little from 6.79% to 6.67%, which likely presented an opportunity for determined buyers heading into summer. More buyers understood their market position and could afford to transact, boosting competition and sale prices.
The old logic was that sellers could earn a premium by listing in late spring, when search activity hit its peak. Now, with persistently low inventory, mortgage rate fluctuations make their own seasonality. First-time home buyers who are on the edge of qualifying for a home loan may dip in and out of the market, depending on what’s happening with rates. It is almost certain the Federal Reserve will push back any interest-rate cuts to mid-2024 at the earliest. If mortgage rates follow, that could bring another surge of buyers later this year.
Mortgage rates have been impacting affordability and sale prices since they began rising rapidly two years ago. In 2022, sellers nationwide saw the highest sale premium when they listed their home in late March, right before rates barreled past 5% and continued climbing.
Zillow’s research finds the best time to list can vary widely by metropolitan area. In 2023, it was as early as the second half of February in San Francisco, and as late as the first half of July in New York. Thirty of the top 35 largest metro areas saw for-sale listings command the highest sale prices between May and early July last year.
Zillow also found a wide range in the sale price premiums associated with homes listed during those peak periods. At the hottest time of the year in San Jose, homes sold for 5.5% more, a $88,000 boost on a typical home. Meanwhile, homes in San Antonio sold for 1.9% more during that same time period.
Metropolitan Area | Best Time to List | Price Premium | Dollar Boost |
United States | First half of June | 2.3% | $7,700 |
New York, NY | First half of July | 2.4% | $15,500 |
Los Angeles, CA | First half of May | 4.1% | $39,300 |
Chicago, IL | First half of June | 2.8% | $8,800 |
Dallas, TX | First half of June | 2.5% | $9,200 |
Houston, TX | Second half of April | 2.0% | $6,200 |
Washington, DC | Second half of June | 2.2% | $12,700 |
Philadelphia, PA | First half of July | 2.4% | $8,200 |
Miami, FL | First half of June | 2.3% | $12,900 |
Atlanta, GA | Second half of June | 2.3% | $8,700 |
Boston, MA | Second half of May | 3.5% | $23,600 |
Phoenix, AZ | First half of June | 3.2% | $14,700 |
San Francisco, CA | Second half of February | 4.2% | $50,300 |
Riverside, CA | First half of May | 2.7% | $15,600 |
Detroit, MI | First half of July | 3.3% | $7,900 |
Seattle, WA | First half of June | 4.3% | $31,500 |
Minneapolis, MN | Second half of May | 3.7% | $13,400 |
San Diego, CA | Second half of April | 3.1% | $29,600 |
Tampa, FL | Second half of June | 2.1% | $8,000 |
Denver, CO | Second half of May | 2.9% | $16,900 |
Baltimore, MD | First half of July | 2.2% | $8,200 |
St. Louis, MO | First half of June | 2.9% | $7,000 |
Orlando, FL | First half of June | 2.2% | $8,700 |
Charlotte, NC | Second half of May | 3.0% | $11,000 |
San Antonio, TX | First half of June | 1.9% | $5,400 |
Portland, OR | Second half of April | 2.6% | $14,300 |
Sacramento, CA | First half of June | 3.2% | $17,900 |
Pittsburgh, PA | Second half of June | 2.3% | $4,700 |
Cincinnati, OH | Second half of April | 2.7% | $7,500 |
Austin, TX | Second half of May | 2.8% | $12,600 |
Las Vegas, NV | First half of June | 3.4% | $14,600 |
Kansas City, MO | Second half of May | 2.5% | $7,300 |
Columbus, OH | Second half of June | 3.3% | $10,400 |
Indianapolis, IN | First half of July | 3.0% | $8,100 |
Cleveland, OH | First half of July | 3.4% | $7,400 |
San Jose, CA | First half of June | 5.5% | $88,400 |
The post Homes listed for sale in early June sell for $7,700 more appeared first on Zillow Research.
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February Employment Situation
By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…
By Paul Gomme and Peter Rupert
The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.
Temporary help services employment continues a steep decline after a sharp post-pandemic rise.
Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.
The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.
The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.
Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.
As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.
Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.
The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.
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Mortgage rates fall as labor market normalizes
Jobless claims show an expanding economy. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.
Everyone was waiting to see if this week’s jobs report would send mortgage rates higher, which is what happened last month. Instead, the 10-year yield had a muted response after the headline number beat estimates, but we have negative job revisions from previous months. The Federal Reserve’s fear of wage growth spiraling out of control hasn’t materialized for over two years now and the unemployment rate ticked up to 3.9%. For now, we can say the labor market isn’t tight anymore, but it’s also not breaking.
The key labor data line in this expansion is the weekly jobless claims report. Jobless claims show an expanding economy that has not lost jobs yet. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.
From the Fed: In the week ended March 2, initial claims for unemployment insurance benefits were flat, at 217,000. The four-week moving average declined slightly by 750, to 212,250
Below is an explanation of how we got here with the labor market, which all started during COVID-19.
1. I wrote the COVID-19 recovery model on April 7, 2020, and retired it on Dec. 9, 2020. By that time, the upfront recovery phase was done, and I needed to model out when we would get the jobs lost back.
2. Early in the labor market recovery, when we saw weaker job reports, I doubled and tripled down on my assertion that job openings would get to 10 million in this recovery. Job openings rose as high as to 12 million and are currently over 9 million. Even with the massive miss on a job report in May 2021, I didn’t waver.
Currently, the jobs openings, quit percentage and hires data are below pre-COVID-19 levels, which means the labor market isn’t as tight as it once was, and this is why the employment cost index has been slowing data to move along the quits percentage.
3. I wrote that we should get back all the jobs lost to COVID-19 by September of 2022. At the time this would be a speedy labor market recovery, and it happened on schedule, too
Total employment data
4. This is the key one for right now: If COVID-19 hadn’t happened, we would have between 157 million and 159 million jobs today, which would have been in line with the job growth rate in February 2020. Today, we are at 157,808,000. This is important because job growth should be cooling down now. We are more in line with where the labor market should be when averaging 140K-165K monthly. So for now, the fact that we aren’t trending between 140K-165K means we still have a bit more recovery kick left before we get down to those levels.
From BLS: Total nonfarm payroll employment rose by 275,000 in February, and the unemployment rate increased to 3.9 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, in government, in food services and drinking places, in social assistance, and in transportation and warehousing.
Here are the jobs that were created and lost in the previous month:
In this jobs report, the unemployment rate for education levels looks like this:
- Less than a high school diploma: 6.1%
- High school graduate and no college: 4.2%
- Some college or associate degree: 3.1%
- Bachelor’s degree or higher: 2.2%
Today’s report has continued the trend of the labor data beating my expectations, only because I am looking for the jobs data to slow down to a level of 140K-165K, which hasn’t happened yet. I wouldn’t categorize the labor market as being tight anymore because of the quits ratio and the hires data in the job openings report. This also shows itself in the employment cost index as well. These are key data lines for the Fed and the reason we are going to see three rate cuts this year.
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