Mozilla Says No to Bitcoin (BTC) in Favor of Proof-of-Stake Cryptos
- Mozilla changes its crypto donation policy, removing Proof-of-Work (PoW) donations.
- The latest move comes amidst heightened scrutiny over Bitcoin mining and its impact on the environment.
- Technical indicators are bearish for Bitcoin, with BTC sitting below the 50-day EMA.
Since China banned Bitcoin mining, Bitcoin (BTC) mining has been a hot topic. The China ban resulted in the U.S becoming the world’s largest Bitcoin mining nation. Since then, some negative statistics have hit the news wires, adding to the scrutiny over the impact of Bitcoin mining on the environment.
With governments and agencies now focused on Proof-of-Work mining and the environmental impact, shareholders and beyond are also influencing the position of crypto-related entities on Proof-of-Work protocols and the likes of Bitcoin.
Mozilla Will Now Only Accept Proof-of-Stake Crypto Donations
At the start of the year, FX Empire reported the Mozilla Foundation’s review of its policy on crypto donations and alignment with the Foundation’s climate goals.
In response to a backlash over Mozilla’s position on cryptos, Mozilla has updated its policy on Crypto donations.
Last week, Mozilla took to Twitter, sharing its updated policy on accepting crypto donations. Mozilla tweeted,
“We got it wrong, we heard you, and we’ve evolved.”
An update to our policy on accepting cryptocurrency donations.
We got it wrong, we heard you, and we've evolved. https://t.co/0bSThVJsCC
— Mozilla (@mozilla) April 7, 2022
According to the updated policy on crypto donations,
- Mozilla will no longer accept ‘proof-of-work’ cryptocurrencies, which are more energy-intensive.
- Mozilla will accept ‘proof-of-stake’ cryptocurrencies, which are less energy-intensive, and will develop and share a list of cryptocurrencies we accept by the end of Q2 2022.
The Foundation went on further to say,
“These decisions are informed by our climate commitments. In January 2021, Mozilla pledged to significantly reduce our greenhouse gas footprint year over year, aiming to exceed the net-zero emissions commitment of the Paris Climate Agreement.
Mozilla’s decision not to accept proof-of-work donations ensures that our fundraising activities remain aligned with our emissions commitment.”
Mozilla Joins Growing List Clamoring for a Ban of PoW Protocols
Mozilla is not alone in its stance on Proof-of-Work cryptos.
This year, a U.S congress sub-committee explored Proof-of-Work cryptos and their impact on the environment. EU lawmakers took a more aggressive stance, calling for a ban on Proof-of-Work mining before a parliamentary vote left PoW miners unscathed.
For Bitcoin and other Proof-of-Work cryptos, the bigger question is whether Mozilla sets precedence.
Climate change is a big topic, and companies worldwide will need to take note of Mozilla’s position that came in response to community uproar.
While Bitcoin adoption has continued, sentiment towards PoW mining could leave Bitcoin out in the cold.
Bitcoin Price Action
Market response to Mozilla’s decision has been benign despite the renewed attention on Proof-of-Work mining.
At the time of writing, Bitcoin was down 0.75% to $39,788. A mixed start to the day saw Bitcoin rise to an early morning high of $40,197 before falling to a low of $39,592.
Bitcoin will need to move through the day’s $40,012 pivot to make a run on the First Major Resistance Level at $40,757. Bitcoin would need broader market support to break out from $40,500.
In the event of another extended rally, Bitcoin could test the Second Major Resistance Level at $41,417 and resistance at $41,500. The Third Major Resistance Level sits at $42,823.
Failure to move through the pivot would bring the First Major Support Level at $39,344 into play. Barring an extended sell-off, Bitcoin should avoid sub-$38,500. The Second Major Support Level sits at $38,604.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. Bitcoin sits below the 50-day EMA, currently at $42,502. This morning, the 50-day EMA pulled back from the 200-day EMA. The 100-day EMA narrowed to the 200-day EMA, which was BTC negative.
A bearish cross of the 100-day EMA through the 200-day EMA would deliver an extended sell-off and bring sub-$38,500 into play.