The New York Public Service Commission on Thursday cleared the New York Municipal Power Agency to raise electricity bills for cryptominers seeking to take advantage of the state’s low-cost hydroelectric power. The agency is made up of 36 municipal power authorities in the state. In some cases, the miners -- which require huge amounts of electricity for data processing -- accounted for a third of a municipal utility’s demand, the commission said.
“If we hadn’t acted, existing residential and commercial customers in upstate communities served by a municipal power authority would see sharp increases in their utility bills,” Commission Chair John Rhodes said in a statement
Bitcoin Death Cross?
Bitcoin’s 50-day moving average has dropped to the closest proximity to its 200-day moving average in nine months. Crossing below that level -- something it hasn’t done since 2015 -- signals fresh weakness to come for technical traders who would dub such a move a "death cross." Another moving-average indicator of momentum has already turned bearish.
“There’s been a definitive shift over the past couple of months after the bubble activity at the end of 2017,” said Paul Day, a technical analyst and head of futures and options at Market Securities Dubai Ltd.
The strategist studied the virtual currency’s 2013 tumble for clues on how it may act this time round. His conclusion? Gear up for a 76 percent tumble from late February highs, which would take Bitcoin to a paltry $2,800, if the downtrend is repeated.
Another gauge that suggests weakness is the moving average convergence-divergence indicator, which measures price momentum to flash buy and sell signals.
In regards to the "Death Cross", I pay little attention. Then again, I fail to see why Bitcoin is worth much of anything. But bubbles are bubbles. That's how bubbles work.
In regards to extra charges, it is absurd that Bitcoin is draining public utilities. It's a seriously flawed design. And the party ends when it costs more to mine a bitcoin than the Bitcoin is worth. Right now that price is about $2,500, I am told.
Some believe that can't happen. I believe it will.
Peek Inside a Mining Operation
Finally, think of all the stress on the electrical grid if Bitcoin hits those inane $1,000,000 price targets. How much competition and grid stress will there be for $1,000,000 coins.
Mike "Mish" Shedlock