Wikimedia joined the list of foundations suspending cryptocurrency donations due to environmental concerns. Mozilla foundation expelled PoW donations in April.
- Wikimedia officially declares stopping cryptocurrency donations, citing environmental concerns.
- Over 71% of the less than 400 users voted to end the donations.
- Technical indicators flash bearishness, with Bitcoin sitting beneath the 50-dayEMA.
Bitcoin mining has been among the hot topics in 2022. The China BTC mining ban triggered a swift increase in regulatory and government scrutiny of the effects of proof-of-work (PoW) mining consensus on the environment.
Crypto mining concerns had regulators in the United States and EU calling for a ban on PoW. Also, corporations have reacted to demands by avoiding proof-of-work cryptocurrencies.
Wikimedia Ends Cryptocurrency Donations
The weekend saw Wikimedia announcing the end of allowing crypto donations. Wikimedia is a non-profit platform behind Wikimedia. The move came as it responded to the ‘stop crypto donations’ requests and comments.
Wikimedia revealed that nearly 400 users took part in the discussion and voting concerning suggestions that the Wikimedia Foundation suspend crypto donations. The platform opened a request for comments from 10 January 2022 to 12 April 2022.
Arguments against the Wikimedia receiving cryptocurrency donations included issues about environmental sustainability. They suggested that accepting crypto means an implicit endorsement of problems surrounding cryptos and the community. It added that risks the movement’s status for accepting crypto.
Those opposing the ban argued that less energy-intensive cryptos (Proof-of-Stake) ensure safer methods to donate and participate in finance for individuals in oppressive nations. The comments added that fiat currencies also exhibit problems with environmental sustainability.
Meanwhile, 232 users (71.17% of overall votes) voted in approval of the proposal. The decision came after updates about the Mozilla Foundations stopping dealings with Proof-of-Work (PoW) cryptocurrency donations. However, Mozilla responded to the backlash by updating its crypto donations policy.
Mozilla shared the updated policy on cryptocurrency donations via Twitter in April. It entailed:
- Mozilla is no longer accepting PoW cryptos since they consume more electricity.
- Mozilla moved to PoS cryptos, which uses less energy. The foundation will compile and share accepted cryptocurrencies before the 2022 Q2 end.
Cryptocurrency donations have seen a boom since Russia launched its attack on Ukraine. Ukraine received millions in crypto donations within the past couple of months. Some of the donated cryptos included Polkadot, Dogecoin, Shiba Inu, Ethereum, and Tether. Also, reports suggest the nation received crypto donations worth more than $100 million.
Therefore, the decision by Wikimedia Foundations to halt cryptocurrency donation may be against tides in multiple ways. For now, the platform will depend on traditional options for contributions.
BTC Price Action
While publishing this content, Bitcoin traded 0.29% up at $38.592. The slight leg-up emerged as the crypto space saw improved actions on Monday. The market cap of all digital assets saw a 2.17% increase within a day to $1.75 trillion.
Bitcoin Technical Indicators
Bitcoin should avoid the day’s pivot at $38,205 to eye the initial crucial resistance mark near the $38,944 level. Nevertheless, broad market support is essential for Bitcoin to surge past the $38,813 morning high.
Extended surges in the upcoming trading sessions may see BTC hitting the 2nd massive hurdle at the $39,407 mark before touching the coveted $40K. The bellwether crypto has the third critical resistance at $40,616.
On the other hand, weakness around the pivot level would mean a plummet for the world’s largest crypto. That can mean slides to the first dependable support floor at $37,736. Excluding more drops, the currency should keep sub-$36,500 away. Meanwhile, the foothold around $36,997 should prevent more BTC downside.
Evaluating the four-hour candle chart and the Exponential Moving Averages reveals a bearish gesture for Bitcoin. The crypto stays beneath the 50-day Exponential Moving Average, currently near $39,058. Early sessions on Monday saw the 50-dayEMA drifting away from the 100-day Exponential Moving Average. Also, the 100-dayEMA drifted away from 200-day EMA, revealing negative actions for BTC. Overcoming the 50-dayEMA would support an uptick to $40,000.