• June 25, 2024

UBS Economists Reiterate Soft Landing Outlook for US Economy, Expect Fed to Cut Rates in September

According to BlockBeats, on June 25, UBS economists reiterated their outlook for a soft landing of the US economy. They predict that the Federal Reserve will begin to cut interest rates in September and believe that the market may have misjudged the extent of the Fed's future rate cuts.UBS pointed out that although there have been abnormal fluctuations in economic data since the outbreak of the pandemic, certain trends now seem to have been established. The US labor market, which was severely overheated two years ago, has returned to a state close to pre-pandemic levels, driven by strong growth in labor supply.In addition, there are signs of a slowdown in retail sales and inflation. In May, the core CPI, excluding food and energy prices, only rose by 0.16%, marking the smallest increase since August 2021. Although the core inflation rate is showing a downward trend, it is still much higher than pre-pandemic levels.

  • June 25, 2024

Paraguay's Bitcoin Mining Industry Responds To Shutdown Of Illegal Mines

According to Odaily, the Bitcoin mining industry in Paraguay has responded to the National Electricity Administration's (ANDE) involvement in shutting down several illegal Bitcoin mines. Bruno Vaccotti, the public affairs director of Bitcoin mining company Penguin, revealed the existence of three 'vulture contracts' that have slowed the development of Bitcoin mining operations in Paraguay. In a radio interview, Vaccotti admitted that illegal mining activities have damaged ANDE's revenue. However, he criticized the agency's statements about Bitcoin mining activities. He stated that Penguin pays $850,000 in electricity bills each month, which is almost 50% of the $2 million loss claimed by ANDE due to illegal cryptocurrency mining. The 'vulture contracts' are agreements signed by ANDE with other undisclosed Bitcoin mining third parties. These contracts have affected the power supply for new mines and caused losses to the country. Vaccotti said that these contracts, which involve a large amount of energy, are usually signed by foreign investors seeking speculation. The energy allocated to these parties is prevented from being used for these operations, thereby damaging the potential for real Bitcoin mining investors to utilize the involved energy. Vaccotti emphasized that this could have a greater impact than the illegal activities ANDE is investigating.