August 5, 2021

Hive Blockchain’s Chairman: ‘Green’ Bitcoin Will Become More Valuable in Time (Interview)

4 min read

Cryptocurrencies took center stage in 2021 as the market went through a huge bull run where the cost for bitcoin escalated to an all-time high of $65,000 in mid-April, and many other cryptocurrencies followed suit.

This attracted a lot of attention even from institutional gamers and large, publicly-listed companies. The elephant in the space is undoubtedly Tesla. Elon Musk’s electric cars and truck maker revealed that it had actually bought $1.5 billion worth of BTC back in January and even began accepting the cryptocurrency as a way of payment for its cars.

Unfortunately, the romance was short-lived as simply 4 months after that, Elon Musk revealed that the company has actually given up accepting BTC as payments, citing environmental issues. This triggered one of the largest disputes within the community on Bitcoin mining.

CryptoPotato got the opportunity to speak to Frank Holmes, the Interim CEO and Executive Chairman of HIVE Blockchain Technologies, throughout Bitcoin 2021 in Miami. Holmes is also an extremely famous Canadian – – American financier, and the creator of the popular JETS ETF, which tracks airline-related companies

HIVE is listed on the Toronto Stock Exchange and owns advanced green energy-powered data center facilities in Sweden, Iceland, and Canada.

They mine Bitcoin and other cryptocurrencies using renewable energy sources – – something that’s been the pinnacle of conversation as of late.

Frank Holmes
Frank Holmes. Source: Marketslant’Green’ Bitcoins Will Become More Valuable Over Time

One of the very first things we talked about was the possibility of a Bitcoin ETF getting authorized in the United States and the regulators’ concern since yet.

Holmes shared his experience with legislators:

“When I was trying to introduce a Bitcoin ETF four years ago (in 2017), I understood, in speaking with regulators, that it just wasn’t going to take place due to the fact that of their concerns of anti-money laundering (AML) laws. Bitcoin does not state it’s between the two of us, however the blockchain allows us to say where it’s been.”

This is what encouraged him to introduce a crypto mining company that had “an ESG technique right at the start.” He likewise said that coal mining would become a problem – – which it obviously did.

Holmes went on to include that he’s HODLing:

“I’m HODLing all my bitcoins like an art piece because if that bitcoin hasn’t been mined in Iran and they can track if it’s remained in the dark pool – – they can track where it’s been.”

With this in mind, he stated that regulators do not want bitcoins that have been connected to illegal activities to appear in the New York Stock Exchange (NYSE).

“That’s why if I mined them and I hold them, I know on my balance sheet they are pure virgin coins. And I believe, in time, they’ll become better.”

Holmes likewise believes that there will be a various price and compared ‘green’ bitcoins and those mined with coal (for example) to artwork.

“If you have an Andy Warhol original painting, it’s worth $30 million. Now, if you’ve got among the prints, the only 1,000 prints, now that’s worth $50,000. And if you’ve got a copy of that print, it’s worth a thousand dollars. I think that Bitcoin will become that way – – when all the coins are going to end up being pieces of art.”

Circling back on the Bitcoin ETF topic – – Holmes thinks that there will be one”this time next year., expected there’s better software application to track.”

Bitcoin ETF To Have a Short-Term Price Effect

The executive chairman of Hive thinks that a Bitcoin ETF will likely have a short-term price impact on the rate. When again, speaking from his own experience in the legacy markets, he draws a comparison.

“I developed the well-known American ETFcalled JETS. It’s the airline industry and cash is available in and goes out. I have gold ETFs – – money can be found in and goes out. Now, what we needed to see is that the hedge funds have actually been primarily utilizing the futures market.”

He argued that hedge funds are utilizing the futures markets due to the fact that they satisfy all the compliance tasks.

“So, I think what will take place is that it (Bitcoin ETF) will add to it. It will increase the need.”

Holmes likewise explained that the Canadian-approved Bitcoin ETF has had a terrific success which it will take place in the US also. PayPal:

You Can’t Buy Gold But Bitcoin

Regarding institutional adoption and where things are going in the market, Holmes thinks that Coinbase’s public listing was a major event, although it dragged a lot of investors down since “experts” offered their stock.

However, he thinks that the essential thing to think about is PayPal’s participation.

“If you wish to go buy bitcoin, you generally had to go through a broker or an exchange, you had to go through Coinbase, for instance.

The fact that you can buy them on PayPal is huge. You can purchase gold jewelry, but you can’t purchase gold – – however you can buy bitcoin. And you bought a portion of it, not the entire thing.”

Holmes laid out the importance of the upcoming generations in the future adoption of cryptocurrencies.

“The kid purchases a thousand dollars worth 9 months back and all of an abrupt it’s worth $7,000. He sells a thousand, buys a brand-new color TELEVISION, he does not have to go to his bank. You could utilize Amazon or you could do Best Buy through PayPal – – you can’t do that in a brokerage firm. So this is really a transformation happening for mass adoption.”