Crypto World

What is proof of work? Bitcoin consensus explained

Published

3 hours ago

1 August 2026

What is proof of work? Bitcoin consensus explained

Proof of work is a consensus mechanism that forces computers to spend measurable energy solving a mathematical puzzle before they can add a new block of transactions to a blockchain. It is the reason bitcoin has value as a settlement network and the reason that network consumes more electricity than some countries.

Summary

Proof of work requires miners to find a hash output below a target threshold by repeatedly guessing a nonce value, consuming real computational energy in the process.
Bitcoin adjusts its mining difficulty every 2,016 blocks, roughly every two weeks, to maintain an average block time of 10 minutes regardless of how much computing power joins or leaves the network.
The global bitcoin network hash rate exceeded 1 exahash per second in mid 2026, meaning miners collectively perform more than one quintillion hash computations every second.
Proof of work is not the only consensus mechanism. Proof of stake, used by Ethereum since September 2022, replaces energy expenditure with economic collateral but introduces different security tradeoffs.
The environmental debate around proof of work is real but more nuanced than headlines suggest. Roughly 55 to 60 percent of bitcoin mining uses renewable energy sources according to 2025 industry surveys.

Most explanations of proof of work start with an analogy. They compare it to a lottery, a puzzle, or a race. These analogies are useful but they obscure the critical detail: proof of work is not about solving a problem. It is about proving that you spent resources attempting to solve it.

That distinction matters because it explains why bitcoin works as a decentralized ledger. No central authority decides who gets to write the next page of the transaction record. Instead, the network awards that right to whoever demonstrates the most computational effort. The cost of that effort is what makes the record trustworthy.

This article explains what proof of work actually does at a technical level, why it was chosen for bitcoin, how it compares to alternatives, and what it does not protect against. If you have heard that proof of work wastes energy or that it is obsolete, the arithmetic tells a more complicated story.

How hashing works

A hash function takes an input of any length and produces an output of fixed length. Bitcoin uses SHA-256, which produces a 256 bit output regardless of whether the input is a single character or an entire novel. The output looks random but is deterministic: the same input always produces the same output, and changing a single bit of the input produces a completely different output.

This property, called the avalanche effect, is what makes hashing useful for proof of work. There is no shortcut to finding an input that produces a specific output. The only way to find one is to try inputs until you get lucky. Every attempt costs a small amount of energy, and the probability of success on any single attempt is vanishingly small.

When a miner constructs a candidate block, they assemble a set of unconfirmed transactions, add a block header containing metadata like the previous block hash and a timestamp, and include a field called the nonce. The miner then hashes the block header repeatedly, incrementing the nonce each time, until the resulting hash is numerically below a target value set by the network. That target is what determines the difficulty.

The difficulty adjustment

Bitcoin was designed to produce one block approximately every 10 minutes. But the amount of computing power on the network changes constantly as miners join, leave, upgrade hardware, or lose access to cheap electricity. Without a mechanism to account for these changes, blocks would arrive faster when more miners join and slower when they leave.

The difficulty adjustment solves this problem. Every 2,016 blocks, the bitcoin protocol compares the actual time it took to mine those blocks against the expected time of 20,160 minutes. If blocks arrived faster than expected, difficulty increases. If slower, it decreases. The adjustment is capped at a factor of four in either direction to prevent sudden swings.

This mechanism is one of the most elegant engineering decisions in bitcoin. It means the network self-regulates regardless of external conditions. When China banned bitcoin mining in 2021 and roughly half of the global hash rate went offline overnight, the difficulty adjusted downward and blocks kept arriving. When that hash rate migrated to the United States, Kazakhstan, and other jurisdictions and came back online, difficulty adjusted upward again.

The difficulty adjustment also explains why mining difficulty can fall sharply when miners leave the network, as happened in mid 2026 when several large operators pivoted their infrastructure to AI data center operations. The network does not care why miners leave. It simply makes the puzzle easier until block times normalize.

Why energy expenditure creates security

The central insight of proof of work is that energy expenditure creates an unforgeable cost. To rewrite bitcoin’s transaction history, an attacker would need to redo the proof of work for every block they want to change, plus outpace the honest miners who continue extending the chain. This is called a 51 percent attack because it requires controlling more than half of the network’s total hash rate.

The economics make this prohibitive for bitcoin. At current hash rates, sustaining a 51 percent attack would require acquiring and operating more mining hardware than exists in any single country. The electricity cost alone would run into tens of millions of dollars per day. And even if an attacker succeeded, the market would likely crash the price of bitcoin in response, destroying the value of whatever the attacker hoped to steal.

This economic security model is sometimes called thermodynamic security. The idea is that the laws of physics guarantee a minimum cost to attack the network because hash computations require energy and energy has a market price. No amount of clever software can reduce the energy required to perform a SHA-256 computation below a physical floor.

Critics point out that this security comes at a steep cost. The bitcoin network consumes an estimated 150 to 170 terawatt hours of electricity per year, comparable to the annual consumption of Poland or Argentina. Supporters counter that this consumption secures a network carrying trillions of dollars in value and that the relevant comparison is not to zero energy but to the energy consumed by the traditional financial system’s data centers, office buildings, armored vehicles, and vault infrastructure.

Proof of work versus proof of stake

Proof of stake replaces computational work with economic collateral. Instead of spending energy to find a valid hash, validators lock up cryptocurrency as a stake and are selected to propose blocks based on the size of their stake and other factors. If they propose invalid blocks, their stake is partially destroyed through a process called slashing.

Ethereum made this transition in September 2022, moving from proof of work to proof of stake in an event called The Merge. The switch reduced Ethereum’s energy consumption by approximately 99.95 percent. It also changed the network’s security model from one based on energy expenditure to one based on capital at risk.

The debate between the two mechanisms is not settled. Proof of work advocates argue that energy expenditure provides a more robust and censorship resistant form of security because it ties block production to physical resources that cannot be seized or frozen by governments. Proof of stake advocates argue that the security per dollar spent is higher, that the environmental cost is negligible, and that the economic incentives align validators with network health just as effectively.

Both sides have valid points. The choice between them depends on what properties you prioritize. For a network designed to be a global, permissionless, censorship resistant monetary base layer, proof of work’s physical grounding is a feature. For a network designed to support high throughput smart contract execution, proof of stake’s efficiency makes more practical sense.

The mining hardware evolution

Bitcoin mining began on CPUs. Satoshi Nakamoto mined the genesis block on a standard desktop processor. Within two years, miners discovered that GPUs could perform SHA-256 computations far more efficiently. Within four years, field programmable gate arrays entered the picture. By 2013, the first application specific integrated circuits, known as ASICs, arrived and rendered every previous generation of mining hardware obsolete overnight.

Today, bitcoin mining is dominated by purpose built ASIC machines manufactured primarily by Bitmain, MicroBT, and Canaan. The latest generation models from 2025 and 2026 achieve energy efficiencies around 15 to 20 joules per terahash, compared to thousands of joules per terahash for the GPU miners of 2011. Each generation of hardware makes mining more efficient per unit of computation but does not reduce the total energy consumed by the network because difficulty adjusts upward to absorb the additional capacity.

This dynamic creates an arms race. Miners who deploy the newest hardware first gain a temporary advantage in efficiency and profitability. But as more efficient hardware comes online and difficulty rises, older machines become unprofitable and are retired. The regulatory landscape around mining operations has also evolved, with the SEC issuing guidance on how proof of work mining interacts with securities regulations.

The concentration of ASIC manufacturing in a small number of companies raises supply chain concerns. If a single manufacturer controls the majority of new mining hardware production, they have significant influence over who can mine and at what cost. This is an ongoing tension in the bitcoin ecosystem between the ideal of decentralized participation and the economic reality of specialized hardware manufacturing.

The energy debate in numbers

The environmental criticism of proof of work is the most common objection to bitcoin. The numbers are large and the criticism is not baseless. But the debate requires context that most coverage omits.

According to the Cambridge Centre for Alternative Finance and multiple 2025 industry reports, bitcoin mining consumes roughly 150 to 170 TWh per year. For comparison, global air conditioning consumes approximately 2,000 TWh per year. Global data centers consume approximately 1,000 TWh. Gold mining and processing consumes an estimated 240 TWh. The traditional banking system’s total energy footprint, including branches, ATMs, data centers, and transport, is estimated at 260 to 300 TWh.

The renewable energy share of bitcoin mining has increased steadily. The Bitcoin Mining Council, an industry group representing companies that account for roughly half of global hash rate, reported that 59.5 percent of mining energy came from renewable or zero emission sources in its Q4 2025 survey. Independent estimates from the International Energy Agency place the figure somewhat lower, around 50 to 55 percent, noting that self reporting by mining companies may overstate renewable usage.

A growing number of mining operations specifically target stranded or curtailed energy. These are situations where energy is being produced but has no buyer, either because of grid congestion, geographic isolation, or intermittent generation from wind and solar that exceeds local demand. In these cases, bitcoin mining acts as a buyer of last resort for energy that would otherwise be wasted. Whether this dynamic makes mining a net positive for renewable energy deployment is debated, but the economic incentive is clear: miners are drawn to the cheapest electricity available, and the cheapest electricity is increasingly renewable.

What proof of work does not cover

Proof of work secures the ordering and immutability of transactions on the blockchain. It does not secure the transactions themselves before they are confirmed. Unconfirmed transactions in the mempool can be reordered, censored, or front run by miners who have visibility into pending transactions before they are included in a block.

Proof of work does not protect users from sending bitcoin to the wrong address, losing their private keys, or falling for social engineering attacks. It does not validate the economic merits of any transaction. It simply ensures that once a transaction is included in a block and buried under subsequent blocks, it becomes exponentially more expensive to reverse.

Proof of work also does not prevent all forms of centralization. Mining pools, which allow individual miners to combine their hash rate and share rewards proportionally, have concentrated block production among a small number of pool operators. As of mid 2026, the top five mining pools control more than 75 percent of bitcoin’s hash rate. While individual miners can switch pools freely, the operational reality is that pool concentration creates potential points of coercion or regulatory pressure.

Finally, proof of work does not guarantee a particular level of transaction throughput. Bitcoin’s block size and block time are fixed parameters. Other proof of work chains have explored different throughput approaches, but the consensus mechanism itself is concerned with security and ordering, not speed.

Practical checks for verifying proof of work claims

If you want to independently verify claims about proof of work and bitcoin mining, several tools and data sources are available.

The bitcoin block explorer at mempool.space shows real time data on block production, including the hash of each block, the difficulty target it was mined against, and the number of transactions it contains. You can verify that each block hash is numerically below the difficulty target by converting the hash to a decimal number and comparing it to the target.

Hash rate estimates are available from multiple sources including Blockchain.com, Glassnode, and CoinMetrics. These are estimates because the actual hash rate is not directly observable. It is inferred from the rate at which blocks are found relative to the current difficulty. Short term fluctuations in estimated hash rate reflect the randomness inherent in mining, not actual changes in deployed hardware.

Energy consumption estimates from the Cambridge Centre for Alternative Finance use a model based on hardware efficiency assumptions and electricity price data. The model is transparent and its methodology is published. It is the most widely cited independent estimate but relies on assumptions about the mix of hardware deployed globally, which introduces uncertainty.

For verifying the renewable energy claims, the Bitcoin Mining Council publishes quarterly reports with survey data. The Bitcoin ESG Forecast by Daniel Batten provides an alternative estimate using a different methodology. Comparing multiple sources gives a more reliable picture than relying on any single estimate.

Frequently asked questions

What is proof of work in simple terms?

Proof of work is a system where computers compete to solve a mathematical puzzle. The first computer to find a valid solution gets to add the next block of transactions to the blockchain and earns a reward. The puzzle requires real energy to solve, which is what makes the system secure against tampering.

Why does bitcoin use proof of work instead of proof of stake?

Bitcoin uses proof of work because it ties the security of the network to physical energy expenditure, which cannot be faked, seized, or censored by any single entity. Proof of stake ties security to capital deposited within the system itself, which some argue creates different centralization risks. Bitcoin’s creator chose proof of work as the more conservative and censorship resistant option for a monetary base layer.

How much energy does bitcoin mining actually consume?

Bitcoin mining consumes an estimated 150 to 170 terawatt hours of electricity per year as of 2026. For context, global data centers consume roughly 1,000 TWh, air conditioning consumes about 2,000 TWh, and the traditional banking system consumes an estimated 260 to 300 TWh. Roughly 50 to 60 percent of bitcoin mining energy comes from renewable sources.

What is a 51 percent attack?

A 51 percent attack occurs when a single entity controls more than half of a proof of work network’s total hash rate. This would allow them to rewrite recent transaction history, double spend coins, or censor specific transactions. On bitcoin, the cost of sustaining such an attack is prohibitively expensive due to the massive amount of mining hardware and electricity required.

What happens when all 21 million bitcoin are mined?

The last bitcoin is expected to be mined around the year 2140. After that, miners will no longer receive block subsidies but will continue to earn transaction fees for processing transactions. Whether transaction fees alone will provide sufficient economic incentive to maintain current levels of hash rate and security is an open question that the bitcoin community actively debates.

Can you mine bitcoin on a regular computer?

Technically yes, but practically no. The difficulty of bitcoin mining is so high that a regular computer would take millions of years to find a single valid block on average. Bitcoin mining now requires specialized ASIC hardware that performs SHA-256 computations orders of magnitude more efficiently than general purpose processors.

What is the bitcoin halving?

The halving is a programmed event that occurs every 210,000 blocks, roughly every four years, which cuts the block subsidy reward in half. The most recent halving in April 2024 reduced the reward from 6.25 BTC to 3.125 BTC per block. Halvings reduce the rate of new bitcoin creation and contribute to bitcoin’s fixed supply cap of 21 million coins.

Is proof of work the same as bitcoin mining?

Not exactly. Proof of work is the consensus mechanism, which is the set of rules that determines how the network agrees on the state of the ledger. Mining is the activity of performing proof of work computations in exchange for block rewards. Other cryptocurrencies like Litecoin and Dogecoin also use proof of work but with different hash algorithms. Mining is the practical implementation of proof of work, not a synonym for it.

Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making any investment decisions. Information is accurate as of August 1, 2026.

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Russia Extends Crypto Mining Ban to Moscow Through 2032

Published

9 minutes ago

1 August 2026

NewsAdmin

Russia is tightening its cryptocurrency mining rules by expanding a ban that will apply in Moscow and surrounding areas. The restriction takes effect on Aug. 15, 2026, and is scheduled to run through Dec. 31, 2032, according to a government resolution published on Pravo.ru.

The updated measure, signed July 25, 2026 by Prime Minister Mikhail Mishustin, amends earlier restrictions adopted in December 2024. It broadens the list of regions where mining is prohibited, citing electricity supply and demand pressures in power-constrained territories.

Key takeaways

Russia’s Resolution No. 936 (signed July 25, 2026) extends crypto mining restrictions to Moscow and the Moscow Region.
The Moscow-area ban starts Aug. 15, 2026 and runs through Dec. 31, 2032.
Additional affected areas include several territories within Russia’s Kursk Region, plus eight municipal districts and the city of Lgov.
The Kremlin-linked restrictions build on an earlier Dec. 2024 mining curbs order, and follow region-by-region bans introduced since early 2026.

Resolution expands mining ban into Moscow and nearby territories

Under the revised framework, mining restrictions now include Moscow, the Moscow Region, and multiple areas within Russia’s Kursk Region. The document also lists eight municipal districts and the city of Lgov as part of the restricted zone.

The changes are formalized in Resolution No. 936, referenced in records published on Pravo.ru. The resolution amends an earlier order issued in December 2024, which had already established limitations on cryptocurrency mining in specific parts of Russia.

Electricity demand remains the policy rationale

Russian officials have previously connected mining restrictions to grid strain and rising electricity demand. According to reporting by TASS, the Moscow Region’s energy authorities said a ban was needed as consumption increased.

TASS also cited power infrastructure figures, stating that Moscow and the Moscow Region have 65 data centers linked to the grid with a combined capacity of 734 megawatts (MW). Within that total, 19 data centers are located in the Moscow Region, totaling 233 MW of capacity.

While the new resolution expands the restricted geography, the underlying logic mirrors earlier steps: authorities are attempting to limit additional load from mining activities in areas where power supply and demand are already under pressure.

Earlier regional restrictions set the stage for a broader move

This Moscow-focused expansion follows a broader pattern of state action against crypto mining in selected regions. The updated rules amend the December 2024 restriction order, which had already begun shaping where mining could operate.

Earlier restrictions were also introduced in parts of Russia, including areas in Buryatia and Zabaykalsky Krai. As described in the Pravo.ru records, those bans were set to run from April 1, 2026 through March 15, 2031.

In other words, Russia is not simply imposing a new nationwide approach; it is layering restrictions by region—first in selected territories and now into major urban and power-dependent areas like Moscow and its surrounding region.

What to watch next for miners and operators

For mining companies and energy-intensive operators, the key practical implication is that compliance will depend heavily on location rather than a single countrywide rule. With the start date set for Aug. 15, 2026 and a long time horizon through 2032, operators in or near the newly restricted areas will need to plan for regulatory compliance well ahead of implementation.

Investors, traders, and builders should watch whether authorities continue expanding the banned geography beyond Moscow and Kursk, and whether grid-capacity reporting becomes more central to future policy decisions. Additional region-specific amendments would further reinforce Russia’s approach of using electricity supply constraints as the deciding factor for mining permissions.

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3iQ Corp Named Institutional Manager of Bhutan’s Bitcoin Reserves

Published

40 minutes ago

1 August 2026

NewsAdmin

3iQ Corp Named Institutional Manager of Bhutan’s Bitcoin Reserves

In the latest Bitcoin news, Gelephu Mindfulness City, Bhutan’s southern special administrative region, has named Toronto-based 3iQ Corp. as the first institutional manager for a portion of its Bitcoin treasury, formalizing what had been a state-level BTC accumulation strategy into an active, named-mandate arrangement.

The announcement, dated July 30, 2026, marks the first concrete step toward deployment since Bhutan announced in December 2025 that up to 10,000 Bitcoin from its national holdings would be allocated to support GMC’s long-term development.

We're proud to announce that we have been awarded a mandate to manage a dedicated portion of Gelephu Mindfulness City’s (@gmcbhutancrypto) bitcoin treasury in addition to signing a partnership to advance GMC's Digital Asset Ambition.
Through this strategic partnership with GMC,… pic.twitter.com/KzGUrZIpfX
— 3iQ (@3iq_corp) July 30, 2026

The mandate grants 3iQ discretionary management over a defined portion of GMC’s Bitcoin reserves, though the press release does not disclose the specific amount of BTC, the custody arrangement, permitted strategies, or the fee structure.

That opacity is notable for a sovereign-linked reserve mandate; operational details that traders would typically expect to accompany an institutional announcement of this scale remain absent.

Discover: Crypto prediction markets, regulated and live

Bitcoin News: What the Mandate Actually Covers

Per the announcement, 3iQ’s role extends beyond conventional asset management. The firm has committed to investing in local talent development, knowledge transfer, and establishing a permanent office in Gelephu, positioning itself as a founding institutional partner in building GMC into what the city describes as “Bhutan’s new digital offshore financial hub.

” 3iQ CEO Pascal St-Jean said the firm would put Bhutan’s capital to work “responsibly, transparently and for the long term.”

Jigdrel Singay, a board director at GMC, described 3iQ as one of the city’s founding institutional partners and specifically cited the firm’s commitment to building local capabilities as a differentiating factor in the selection process, not just its track record in digital asset management.

Gelephu Mindfulness City has partnered with @3iq_corp to help build a next-generation institutional digital asset management ecosystem.
The partnership will see 3iQ manage a dedicated mandate backed by a portion of GMC's bitcoin treasury while supporting talent development and… pic.twitter.com/lHhDbEoKCr
— Gelephu Mindfulness City l Bhutan (@gmcbhutan) July 30, 2026

GMC’s choice of 3iQ reflects a deliberate approach of pairing national capital with institutional-grade external expertise rather than managing reserves purely in-house.

3iQ is a subsidiary of Coincheck Group N.V. (NASDAQ: CNCK), a NASDAQ-listed holding company based in the Netherlands.

Founded in Toronto in 2012, 3iQ built its reputation as Canada’s first regulated digital asset fund manager and was the first to launch a Bitcoin and Ethereum ETP on a major global stock exchange. The Gelephu mandate represents a significant expansion of the firm’s client profile into sovereign and quasi-sovereign territory.

Discover: Turn your market view into a position on Kalshi

Bhutan’s BTC Position and the GMC Build-Out

Bhutan’s Bitcoin reserves were accumulated primarily through hydropower-backed mining and managed by Druk Holding and Investments (DHI), the kingdom’s sovereign investment arm.

Arkham Intelligence data shows Bhutan’s sovereign holdings have shifted significantly over the past two years – from roughly 13,390 BTC in October 2024 to an estimated 5,600 BTC by mid-2026, with more than $237 million moved out of reserve addresses since January, likely to fund domestic infrastructure priorities, including GMC itself

The 3iQ partnership represents what the primary source calls “the next step” in deploying the Bitcoin earmarked for Gelephu, signaling that at least a portion of GMC’s BTC allocation is being held and professionally managed rather than liquidated.

That distinction matters: Bhutan has been simultaneously selling part of its stack while now institutionalizing management of the remainder – a shift from pure accumulation toward active portfolio deployment.

GMC has been constructing the broader regulatory infrastructure to attract additional operators. According to supplementary reporting, the zone introduced a fast-track licensing route for firms already regulated in Singapore, Hong Kong, and Abu Dhabi, offers zero corporate tax in selected sectors, and provides access to banking through DK Bank.

The 3iQ mandate is framed as the first of several milestones the two organizations plan to announce as GMC pursues its goal of becoming a competitive digital offshore financial center, placing it in the same strategic conversation as established hubs, but with a sovereign BTC-mining backstory as its capital base.

Discover: Think you know where this ends up? Trade it on Kalshi

The post 3iQ Corp Named Institutional Manager of Bhutan’s Bitcoin Reserves appeared first on Cryptonews.

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Bitget adds daily Bitcoin rewards to BGBTC

Published

46 minutes ago

1 August 2026

NewsAdmin

Bitget launches Stock+ to bring real U.S. stocks into crypto accounts

Bitget has upgraded its Bitcoin-backed BGBTC asset with daily BTC-denominated rewards, cross-chain transfers through Chainlink CCIP, and independent oversight from Gauntlet.

Summary

BGBTC holders will receive daily rewards denominated in Bitcoin following the upgrade.
Chainlink CCIP will serve as BGBTC’s canonical cross-chain infrastructure.
Gauntlet will independently oversee the asset’s underlying yield strategies.
BGBTC remains backed by Bitcoin at a 1:1 ratio, according to Bitget.

Bitget adds daily Bitcoin rewards to BGBTC

Bitget said the upgraded BGBTC will distribute daily rewards denominated in BTC to token holders. The asset is designed to maintain a 1:1 peg with Bitcoin while allowing users to earn yield without selling their underlying exposure.

BGBTC just got a major upgrade.
Backed 1:1 by BTC, it now offers daily BTC rewards, fast redemption at scale, and utility across trading, margin, loans, Launchpool, and PoolX.
Advertisement

— Bitget (@bitget) July 31, 2026

The exchange is positioning BGBTC as an alternative to holding idle Bitcoin or moving BTC into separate yield strategies. Those strategies can require users to transfer assets between platforms, manage additional protocols, or accept reduced liquidity.

BGBTC already has several uses within the Bitget ecosystem. Holders can use the asset as futures margin, lending collateral or for participation in the exchange’s Launchpool and PoolX products.

The upgrade also introduces support for large-volume and faster redemptions, according to Bitget. The company said it has added institutional-grade risk controls and greater transparency, although specific reward rates and redemption thresholds were not provided in the announcement.

Rewards remain tied to the performance and sustainability of the underlying yield strategies. A Bitcoin-backed token can also carry platform, custody, smart-contract and liquidity risks that differ from holding BTC directly.

Chainlink CCIP supports cross-chain BGBTC transfers

Bitget selected Chainlink’s Cross-Chain Interoperability Protocol as the canonical infrastructure for distributing BGBTC across multiple blockchain networks.

CCIP provides the messaging layer needed to move the asset between supported chains. The integration could allow holders to access decentralized applications and financial services outside Bitget’s centralized platform while retaining exposure to the Bitcoin-backed token.

Bitget already uses Chainlink Proof of Reserve to verify the assets supporting BGBTC. Proof of Reserve provides on-chain data intended to help users assess whether sufficient collateral exists behind the issued supply.

Combining Proof of Reserve with CCIP addresses two separate functions. The reserve system focuses on collateral verification, while CCIP handles communication and token transfers across blockchains.

Bitget did not identify every blockchain that will initially support BGBTC through CCIP or provide a schedule for additional network deployments.

Gauntlet will oversee BGBTC yield strategies

Gauntlet has been appointed as BGBTC’s independent curator and will supervise the strategies used to generate rewards for holders.

The quantitative risk-management firm will monitor the underlying portfolio, assess risks and help determine how capital is deployed. Bitget said the framework is intended to support the long-term sustainability of BGBTC’s yield rather than relying on an unmanaged set of strategies.

Independent curation adds another layer of oversight, but it does not eliminate losses. Reward levels may change based on market conditions, available strategies, and the performance of the assets or protocols involved.

Bitget is also working with infrastructure providers, including Chainlink and Morph, as it seeks to connect centralized and decentralized financial services through a broader Bitcoin yield network.

The company cited USDGO Holderyield as another part of its effort to let users earn returns from assets that would otherwise remain idle.

What the upgrade means for Bitcoin holders

BGBTC combines Bitcoin exposure, daily rewards and cross-chain utility in a single token. Users can potentially earn BTC-denominated returns while deploying the asset as collateral, margin or capital in supported decentralized applications.

For US investors, access to BGBTC and related Bitget services may depend on geographic and product restrictions. Users should confirm whether the exchange, token, and associated yield products are available in their jurisdiction before transferring funds.

Yield paid in BTC may also create tax-reporting obligations for US holders, depending on how the rewards are classified and when users gain control of them. Bitget did not announce any US-specific rollout or regulatory approval alongside the upgrade.

Future adoption will depend on the reward rate, redemption performance, supported networks, and transparency around the underlying strategies. Bitget has not yet disclosed a fixed annual yield or a complete cross-chain deployment timeline.

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SpaceX stock nears $107 support before earnings, unlock

Published

54 minutes ago

1 August 2026

NewsAdmin

SpaceX one-hour chart shows SPCX falling within a descending channel toward $107.10 support, with bearish Aroon and Awesome Oscillator readings.

SpaceX stock remained under pressure near a record low as traders prepared for the company’s first post-IPO earnings report and the release of 911.5 million insider shares.

Summary

SpaceX shares fell 3.41% to $108 on July 31, their lowest close since the June IPO.
SPCX lost about 36% in July, extending its decline from the July 1 price of $171.
About 911.5 million insider shares are expected to become eligible for sale on Aug. 6.
The one-hour chart places immediate support at $107.10, with resistance near $121.09.

SpaceX stock extends its post-IPO decline

SpaceX stock closed July 31 at $108, down 3.41% during the session and about 36% from its July 1 price of $171. The decline left the shares at their lowest closing level since the company’s June 12 initial public offering.

SPCX has now fallen by more than 50% from the record high of $225 reached on June 16. The sustained pullback has raised the prospect of a move below $100 as two major catalysts approach.

SpaceX is scheduled to publish its first quarterly results as a public company on Aug. 4. Two days later, restrictions covering 911.5 million insider shares are expected to expire, allowing their holders to sell the stock.

Those events could produce large price swings because investors must assess the company’s operating performance while preparing for a possible increase in available supply.

Earnings and short sellers drive the move

Wall Street expects SpaceX to report quarterly revenue of between $6.72 billion and $6.9 billion. Results above that range could ease concerns about the company’s valuation and encourage buyers to return after four consecutive weeks of losses.

A revenue miss could have the opposite effect, particularly because the stock has not established a reliable support base. Traders will also watch management’s guidance for Starlink, launch operations, and the company’s emerging data-center business.

Short positioning has added pressure. S3 Partners data showed that investors had shorted 219.3 million shares, representing about 39% of the stock available for public trading.

The large position means short sellers could continue benefiting if SPCX falls. However, unexpectedly strong earnings could force some traders to cover their positions, creating a short-term rebound.

Bernstein recently maintained an outperform rating and a $239 target after SpaceX completed its 13th Starship test flight. William Blair also reportedly increased its adjusted earnings-per-share estimate from $8.20 to $8.60, citing potential growth from the company’s data-center operations.

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Russia Extends Crypto Mining Ban to Moscow Through 2032

Published

60 minutes ago

1 August 2026

NewsAdmin

Russia is tightening its cryptocurrency mining policy again, extending restrictions beyond the regions it targeted earlier and adding Moscow and nearby areas to a long-running ban schedule. A new government resolution takes effect on Aug. 15, 2026, with the prohibition set to run through Dec. 31, 2032.

The update is set out in Resolution No. 936, signed by Prime Minister Mikhail Mishustin on July 25, 2026, according to records published on Pravo.ru. It revises an earlier mining restriction order from December 2024 and updates the list of places where mining activities are limited due to local electricity concerns.

Key takeaways

Resolution No. 936 introduces a mining ban for Moscow, the Moscow Region, and parts of Russia’s Kursk Region, beginning Aug. 15, 2026.
The restrictions will remain in force through Dec. 31, 2032, effectively creating a multi-year compliance horizon for operators.
The rules follow earlier regional bans launched in December 2024 and other orders that began in 2026 across select parts of Buryatia and Zabaykalsky Krai.
Officials have previously justified the approach by citing rising electricity demand and the power grid pressure associated with growing data-center loads.

Moscow and Kursk move into the restricted zone

Under the amended framework, the restricted geography expands to include Moscow, the Moscow Region, and additional territories listed within Russia’s Kursk Region. The rules also cover eight municipal districts and the city of Lgov in that region, broadening the affected footprint beyond the original set of localities.

The stated objective remains consistent with earlier restrictions: to limit cryptocurrency mining in areas considered to be facing strain on electricity supply. For miners and infrastructure providers, the practical impact is straightforward—new or continued mining operations in the designated areas may need to pause or restructure well before the Aug. 15, 2026 start date to avoid enforcement risks.

Resolution No. 936 revises the December 2024 order

Resolution No. 936 was signed on July 25, 2026 and amends an earlier prohibition order issued in December 2024. According to Pravo.ru, the change is not a one-off ban: it updates the list of jurisdictions where mining restrictions apply and extends the same restriction concept to additional regions.

That matters for market participants because Russia’s approach is being refined through successive legal instruments rather than replaced wholesale. In practice, operators are being pushed to manage regulatory uncertainty through long planning windows and contingency plans, especially in data-center-heavy regions where power allocation decisions can determine feasibility.

Why authorities linked the bans to power demand

In an earlier statement covering the Moscow Region’s rationale, the energy ministry said the ban was needed because of growing electricity demand. As reported by TASS, the ministry estimated that Moscow and the Moscow Region have 65 data centers connected to the power grid, with a combined capacity of 734 megawatts (MW). The same reporting cited 19 data centers in the Moscow Region with 233 MW of capacity.

Even though the mining restrictions are aimed at cryptocurrency operations, the logic used by officials is tied to the overall electricity system—particularly the growing load from digital infrastructure. For miners, that creates an indirect but significant link between crypto activity and broader regional power planning: where electricity is already earmarked for data centers and other high-consumption uses, regulators may treat mining as additional pressure that the grid cannot easily absorb.

Not the first wave: bans already planned in other regions

This latest expansion builds on restrictions introduced earlier in other parts of Russia. The earlier framework referenced by Pravo.ru points to mining restrictions being introduced in several regions in a prior phase, including parts of Buryatia and Zabaykalsky Krai.

As indicated in the published records, the bans in those areas are scheduled to run from April 1, 2026 through March 15, 2031. That staggered timing creates a rolling pattern: some jurisdictions begin restrictions in 2026 while others—like Moscow—enter a later phase starting Aug. 15, 2026, but continuing for longer overall through 2032.

Investors and operators watching Russia’s policy direction should note the implication: rather than lifting restrictions once an initial window expires, the government is instead layering in additional territories and sustaining multi-year prohibitions. That tends to shift mining activity away from restricted power grids and toward jurisdictions not covered by the latest legal orders—or toward arrangements that can demonstrate compliance with local limits.

For the next phase, the key question is how enforcement will work in the newly included jurisdictions, and whether regulators will continue expanding the restricted map beyond Moscow and Kursk or refine exemptions for specific infrastructure arrangements. Miners with assets near the updated boundaries should monitor local implementation details closely as Aug. 15, 2026 approaches.

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PI Surges 5% Despite Market Slump After Important Pi Network Reminder

Published

1 hour ago

1 August 2026

NewsAdmin

The cryptocurrency market is back in the red after bitcoin’s rejection on Friday and a subsequent drop to a multi-week low, but, as usual, there are some exceptions.

Pi Network’s native token is among those, which might sound surprising given its recent calamity. Nevertheless, PI is up by 5% daily after an important reminder was issued by the team.

The Reminder

The Core Team announced on X that the blockchain has already begun the process of migrating to the next major protocol version, 26. As with previous similar statements, the post highlighted the importance of Pi Validators having to complete the upgrade by the deadline of August 11 to remain connected to the network.

Protocol version 26 will be among the biggest updates implemented by the team, and perhaps the most significant one since v20.2, which laid out the fundamentals for smart contract building. It’s designed to improve contract safety, state management, interoperability, and cryptographic capabilities.

Moreover, it comes before the final planned upgrade, protocol version 27, which is likely to be introduced in late August or September.

Reminder: the Pi Mainnet is upgrading to Protocol v26. All Mainnet node operators must complete the upgrade by August 11 to remain connected to the network.
Protocol v26 is a major milestone that improves contract safety, state management, interoperability, and cryptographic… pic.twitter.com/FXM5A8Tzo9
— Pi Network (@PiCoreTeam) July 31, 2026

The Core Team set the August 11 deadline earlier this week, which essentially meant that protocol version 25 was successfully deployed, even though there was no official confirmation at the time.

PI Rockets

A very small percentage of all the Pi Network updates, product features, redesigned apps, or new developments announced by the team in the past month or so have had a positive impact on the native token. However, the version 26 deadline set from a few days ago and last night’s reminder might be the exception.

PI jumped after the team first announced the upcoming protocol version 26 and has done the same over the past 24 hours. It’s up by 5% daily and now sits at $0.086 after it challenged $0.088 hours ago. This comes despite the broader market’s weakness, led by BTC’s dip to $62,400.

Nevertheless, the broader picture around PI is still very painful. The asset remains down by over 97% since its all-time high from February last year. Its market cap is well below $1 billion, making it the 68th-largest asset by that metric.

The post PI Surges 5% Despite Market Slump After Important Pi Network Reminder appeared first on CryptoPotato.

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Bitcoin Price Prediction: Michael Saylor’s Strategy Posts Massive Q2 Loss Despite Bigger Bitcoin Stack

Published

1 hour ago

1 August 2026

NewsAdmin

Bitcoin is trading around $63,000 to $65,000 price range, as Strategy’s weak Q2 earnings add pressure to an already cautious market and prediction. The headline loss grabbed attention, but the filing revealed even deeper concerns. Now, traders are watching whether this sparks another wave of selling or marks a local bottom for institutional buyers.

Strategy reported a Q2 net loss of $8.22 billion, or $24.45 per share, swinging sharply from a $10.02 billion profit a year earlier. The result missed analyst estimates by a wide margin. Management blamed weaker Bitcoin prices and fading market sentiment. Between late June and early July, the company sold about 3,600 BTC for roughly $216 million, realizing an estimated $55 million loss.

The filing also showed Strategy’s average Bitcoin cost basis remains above current market value across its 843,775 BTC holdings. As a result, the company recorded a full valuation allowance against its deferred tax assets. Preferred stock dividends, effectively funded by the treasury, have also attracted criticism from blockchain analysts and market observers.

That means the focus has shifted beyond another mark-to-market loss. Investors are now assessing what sustained pressure on the market’s largest corporate Bitcoin holder could mean for supply, sentiment, and institutional positioning during the third quarter. While long-term conviction remains intact for many, near-term volatility may keep traders on edge.

Discover: The Best Token Presales

Bitcoin Price Prediction: Reclaim $75,000 or Is the Strategy Overhang a Structural Ceiling?

Bitcoin is trading around $63,000 to $65,000, leaving it 15% to 17% below Strategy’s average purchase price of about $75,500 per BTC. That level has become more than an accounting figure. It is now a psychological hurdle for any sustained recovery. Recent trading between $63,000 and $65,500 suggests consolidation rather than a decisive trend.

Meanwhile, the high $50,000 to low $60,000 area, where Strategy sold part of its holdings, has emerged as an important support zone. A sustained move below $60,000 could encourage additional selling from leveraged holders and weaken institutional sentiment, especially if risk appetite deteriorates further.

The near-term outlook still revolves around three likely paths. In the bullish scenario, Bitcoin holds above $63,000 and gradually climbs toward $69,000 to $71,000 as market sentiment improves. The base case keeps Bitcoin trading between $60,000 and $67,000, while Strategy’s average cost remains a psychological ceiling.

The bearish case begins if Bitcoin loses $60,000 on strong selling pressure. That could expose a move toward the $55,000 to $58,000 region and renew concerns over Strategy’s 843,775 BTC position. Even so, long-term accumulation remains part of the investment thesis. The key question is whether the market can absorb the near-term supply without derailing the larger bull cycle.

Trade Bitcoin on Bybit and Get a Chance to Win Our $1,000 USDT Airdrop

Bitcoin Hyper Targets Early Mover Upside as Bitcoin Tests Key Levels

Bitcoin consolidating below its prior highs, with corporate holders under stress and large-cap upside constrained by the $75,000 overhead resistance, is precisely the environment where early-stage infrastructure plays historically attract rotation capital. The upside math at $63,000 Bitcoin is structurally different from the upside math on a presale priced at fractions of a cent.

Bitcoin Hyper ($HYPER) is positioning itself as the infrastructure layer that addresses Bitcoin’s three core limitations: slow transactions, high fees, and a near-complete lack of programmability.

Hyper is the first Bitcoin Layer 2 with Solana Virtual Machine (SVM) integration, delivering smart contract execution speeds that exceed Solana’s own throughput, while preserving Bitcoin’s underlying security model. The presale has raised close to $33 million at a current price of $0.0136839, with high-APY staking available to early participants.

The decentralized canonical bridge for BTC transfers and low-latency transaction execution are the standout technical differentiators. For traders looking at Bitcoin’s constrained near-term upside, research Bitcoin Hyper as a higher-asymmetry positioning option within the broader Bitcoin ecosystem.

Discover: The Best Crypto to Diversify Your Portfolio

The post Bitcoin Price Prediction: Michael Saylor’s Strategy Posts Massive Q2 Loss Despite Bigger Bitcoin Stack appeared first on Cryptonews.

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ARK Invest buys $6.8M in Circle shares after NY win

Published

1 hour ago

1 August 2026

NewsAdmin

ARK Invest researcher predicts more crypto shutdowns

Cathie Wood’s ARK Invest bought 109,129 Circle shares after the stablecoin issuer secured a limited-purpose trust charter in New York.

Summary

ARK acquired about $6.83 million in Circle shares across three exchange-traded funds.
Circle received a limited-purpose trust charter from the New York Department of Financial Services.
CRCL closed 2.54% lower at $62.61 on July 31 despite the regulatory approval.
Circle plans to gradually transfer USDC issuance to its New York trust entity.

ARK Invest adds 109,129 Circle shares

ARK purchased 77,103 Circle shares through its flagship ARK Innovation ETF, according to the firm’s daily trade disclosures. The ARK Next Generation Internet ETF added 22,238 shares, while the ARK Fintech Innovation ETF acquired another 9,788.

Together, the purchases totaled 109,129 shares. They were worth approximately $6.83 million based on Circle’s July 31 closing price of $62.61.

The investment extended ARK’s exposure to Circle as the company expands its regulated stablecoin infrastructure in the United States. It also followed ARK’s roughly $40.2 million purchase of Tesla, SpaceX and Nvidia shares on July 28 during a broader technology-sector sell-off.

ARK made several other purchases on July 31, including 298,243 CoreWeave shares, 12,512 shares of the 3iQ Solana Staking ETF, 7,500 Pony AI shares and 2,700 Kodiak AI shares.

The firm reduced its positions in Shopify, Cloudflare, CrowdStrike, Snowflake, 10x Genomics, Komatsu, Brera Holdings, Iridium Communications and Figma.

Circle secures New York trust charter

ARK’s purchase followed Circle’s receipt of a limited-purpose trust charter from the New York Department of Financial Services. The approval covers Circle Internet Trust Company LLC, which will operate as Circle New York Trust.

A New York limited-purpose trust company can conduct approved virtual currency activities and exercise fiduciary powers. Unlike a BitLicense holder, it can also provide money transmission services in the state without obtaining a separate money transmitter license.

Circle said it plans to gradually move USDC issuance to the New York entity. Circle New York Trust will operate alongside Circle National Trust, the federally chartered national trust bank authorized to provide custody and collateral trustee services.

Circle CEO Jeremy Allaire described the New York approval as a long-term objective for the company.

“Earning a New York trust charter has been a longstanding objective for Circle given the regulatory clarity that comes with it.”

He added that the charter places USDC within a strong regulatory framework as digital dollars become more widely used in the global financial system.

Circle builds state and federal oversight

Circle’s New York authorization follows the Office of the Comptroller of the Currency’s final approval on July 10 for the company to establish Circle National Trust.

The federal trust bank will initially provide fiduciary digital asset custody services to Circle and its affiliates. Circle has also identified management of USDC reserves as a possible future capability, subject to its approved business plan and regulatory requirements.

The two charters give Circle separate state and federal regulatory structures. NYDFS will supervise the New York entity’s approved virtual currency and fiduciary activities, while the OCC will oversee the national trust bank.

For U.S. investors, the approvals strengthen Circle’s position within the regulated stablecoin market. However, the charters do not remove risks tied to USDC growth, interest-rate changes, competition or Circle’s share valuation.

Circle stock falls despite regulatory progress

Circle stock ended July 31 at $62.61, falling $1.63, or 2.54%, during the session. The decline suggests investors did not immediately treat the New York charter as a reason to reverse the stock’s recent weakness.

CRCL had gained about 10% on July 10 after Circle announced final OCC approval for its national trust bank. The shares subsequently surrendered those gains as the broader technology and digital-asset sectors came under pressure.

ARK’s latest purchase comes as the investment firm expects consolidation across crypto businesses. ARK digital assets research director Lorenzo Valente said on July 28 that revenue and investment were becoming concentrated among fewer companies.

Valente predicted more acquisitions, bankruptcies, shutdowns and talent-focused deals. However, his post did not identify the dataset, category definitions or measurement period supporting its revenue concentration figures.

Circle is scheduled to report its second-quarter 2026 financial results on Aug. 5, giving investors another measure of whether regulatory progress is translating into stronger USDC activity and company revenue.

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Russia Expands Crypto Mining Ban to Moscow

Published

1 hour ago

1 August 2026

NewsAdmin

Russia Expands Crypto Mining Ban to Moscow

Russia has expanded its cryptocurrency mining restrictions to Moscow, with the ban set to take effect on Aug. 15, 2026, and remain in place through Dec. 31, 2032.

Russia’s Resolution No. 936, signed by Prime Minister Mikhail Mishustin on July 25, 2026, amends an earlier mining restriction order issued in December 2024, according to records published on Pravo.ru.

The updated rules add Moscow, the Moscow Region and several territories in Russia’s Kursk Region to the list of restricted areas. The measure expands existing restrictions on cryptocurrency mining in areas facing electricity supply concerns. The ban also covers eight municipal districts and the city of Lgov in Kursk Region.

Earlier restrictions were also introduced in several Russian regions, including parts of Buryatia and the Zabaykalsky Krai, where a mining ban is set to run from April 1, 2026, through March 15, 2031.

The Moscow Region’s Energy Ministry previously said a mining ban was needed because of growing electricity demand, according to TASS. The ministry estimated that Moscow and the Moscow Region have 65 data centers connected to the power grid with a combined capacity of 734 megawatts (MW), including 19 data centers in the Moscow Region with 233 MW of capacity.

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

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How India’s Gen Z Humbled Modi

Published

2 hours ago

1 August 2026

NewsAdmin

Fifteen years later, the Gen Z protests in Delhi and other Indian cities have incinerated Modi’s carefully constructed political brand, delivering death by a thousand burns. The target of the anger and scorn in all the insulting posters, slogans, and graffiti of the protest zone was not the education minister but Modi himself.

A bonfire of vanities in Delhi

It was an exhilarating spectacle to watch a prime minister elevated to the status of a demigod through the expenditure of hundreds of millions of dollars of public money spent on ubiquitous advertising campaigns, becoming the butt of a torrent of wickedly humorous, profanity-laced slogans from young men and women in the capital. The eminently Instagrammable viral burns of the protesters were deliberate, taking apart and inverting each element of Modi’s political brand.

The weapon of choice was satire. The unofficial anthem of the protest was a call-and-response chant: “Chappan inch ka chhota bandar,” followed by the crowd’s chorus, “Bhaag Narendra, Bhaag Narendra.” (“The little monkey with the 56-inch chest. Run Narendra, Run Narendra!”) The viral reel that originated the chant features two women, who seem to be in their early 20s, dressed in casual streetwear, leading the chant while a man holds a poster depicting Modi as a little monkey.

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