Norwegian Mining Company Receives Bomb Threat in Escalating Noise Complaint

Norwegian Mining Company Receives Bomb Threat in Escalating Noise Complaint

Kryptovault, a Norwegian company specializing in “large-scale cryptocurrency mining and data center operations,” has recently received a bomb threat amid escalating noise complaints pertaining to its virtual currency mining.

Also Read: Funds Frozen, Account Closed: UK Banks Target Cryptocurrency Owners

Norwegian Cloud Mining Company Receives Bomb Threat

Norwegian Mining Company Receives Bomb Threat in Escalating Noise ComplaintNorwegian mining and data center company, Kryptovault, has reportedly received a bomb threat amid intensifying complaints of noise pollution. Kryptovault currently operates facilities in the Norwegian cities of Follum, Honefuss, and Dale.

The threat received stated: “This is sabotage. If you are expanding crypto mining and filling the country with noise, then you will be sabotaging the peace. I am threatening to send you some explosives.”

Gjermund Hagesaeter, the managing director of Kryptovault, told local media that the company immediately informed police of the threat. “The threat has been reported to the police and these are also taking the whole issue very seriously indeed. We have also asked the police to assess whether any further action needs to be taken. The facility at Follum is located in a fenced area, so it would be difficult for any intruder to gain access but the one at Dale is far more accessible so we have warned everyone to be on their toes,” Mr. Hagesaeter said.

Kryptovault Employees Encouraged to Be Vigilant

The managing director emphasized that Kryptovault’s employees had been instructed to be extra vigilant in conducting their operations, especially those based in the company’s Dale facility. If any abnormal behavior is observed at the site, the company’s employees have been instructed to evacuate.

Lisbeth Edvardsen, the acting investigator at Honefoss police, has indicated that local authorities are taking the threat seriously, and are currently looking into the matter to assess what measures the police may take to respond to the threat.

The threat comes just days after the Common Council of the city of Salamanca, New York voted unanimously to pass a law that imposes “a moratorium on commercial cryptocurrency mining operations in the city.”

What is your reaction to the bomb threat received by Kryptovault? Join the discussion in the comments section below!


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Mining Round-Up: Nvidia Shares Drop, College Students Mine on Campus

Mining Round-Up: Nvidia Shares Drop, College Students Mine on Campus

In recent news pertaining to cryptocurrency mining, Nvidia has witnessed a drop in its share price after announcing an unexpectedly modest earnings outlook – partly driven by reduced demand for mining hardware. Also, the World Digital Mining Summit has been scheduled for late September in Tbilisi, Georgia, and reports continue to surface detailing opportunistic students using college electricity to mine crypto.

Also Read: Chinese Courts Face Hundreds of Crypto Cases, Struggle with Rulings

Nvidia Shares Drop After Reduced Crypto Sales Fuel Declining Profits in Q2

The price of Nvidia stock fell by 6 percent on Thursday following the announcement of lower-than-expected revenue guidance. Despite the bearish response, the company reported better-than-expected earnings. As of this writing, Nvidia’s shares are valued at $247.25 USD each.

Nvidia announced revenue projections of $3.25 billion for Q3 of 2019 – roughly 2.7% less than analyst estimates of 3.34 billion for the third quarter, according to Thomson Reuters.

Nvidia posted earnings of $1.76 per share, excluding certain items, up from earnings of $1.66 per share that was anticipated by analysts, and revenue of $3.12 billion – up from an expected revenue of $3.10 billion. Nvidia’s revenue grew by 40 percent year-over-year for Q2 2018.

Whilst the company’s data center and automotive segments exceeded revenue prediction, the company’s revenues associated with products and intellectual property pertaining to cryptocurrency mining ($116 million) were 70 percent lower than those anticipated ($188 million).

Colette Kress, the executive vice president and chief financial officer of Nvidia, stated: “Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million while actual crypto-specific product revenue was $18 million, and we now expect a negligible contribution going forward.”

The company’s chief executive officer, Jensen Huang, stated: “We benefited in the last several quarters from an unusual lift from crypto, but at this time, we consider it to be immaterial for the second half” of the financial year.

Mining Summit in Georgia Set to Take Place Next Month

The 2018 World Digital Mining Summit will take place in Tbilisi, Georgia next month.

The conference, which will be held from the 21st until the 23rd of September, will feature “30+ speakers, 50+ mining companies, and 1000+ attendees.” The CEO of Bitmain, Jihan Wu, and the CEO of Bitkan, Yu Fang, will be among the conference attendees.

Opportunistic Students Mine Crypto Using College Power

Patrick Cines, a graduate of Penn State College in 2017, has recounted his story of mining cryptocurrency using campus electricity.

“I had basically a box, maybe a foot and a half by a foot and a half tall. It was sitting in, right at the foot of my bed. Had several graphics cards,” said Cines. “It felt like passive income because when you’re at school, when you’re taking an exam or you’re doing your homework, you’re prepping or going to student meetings, it’s still back in your dorm room making money for you.”

Initially, Mr. Cines describes the heat produced by his mining rigs as being “unbearable,” adding “ I had fans running, I had the window open. The first day I was living there, [I] went to Home Depot, bought some dryer tubes, strapped them to the front, and used that to push all the hot air outside of my room.”

Are you surprised by the drop in Nvidia’s share price? Share your thoughts in the comments section below!


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Genesis Mining Offers Customers a Discount to Offset Falling Bitcoin Rewards

Genesis Mining, responding to falling bitcoin mining rewards for its customers, is offering a discount to help customers withstand the current downturn, the company announced in a blog. The company has recognized customers were not receiving expected rewards and is offering a chance to upgrade their mining contracts to Radiant contract terms with a premium discount.

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Bitcoin Mining Farm in Norway Receives Bomb Threat as Noise Complaints Mount

It appears that the cryptocurrency revolution is not all that welcome in Norway, with a bitcoin mining facility in a remote part of the country receiving a bomb threat. According to the Vakdalposten newspaper, the mining company, which is called Kryptovault and operates in the cities of Follum, Honefuss, and Dale, received the bomb threats … Continued

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Bitcoin Not Dead, Again: Washington Post Gets Schooled

Castle Island Ventures partner and cofounder of Coinmetrics.io, Nic Carter, has had quite enough. Made crazy by mainstream media misunderstanding, ignorance, and downright falsehoods regarding cryptocurrencies, he took to Medium, making the case for why Bitcoin is not dead, again.

Also read: Report: 15,000 Twitter Crypto Scam Giveaway Bots

“Bitcoin is Still a Total Disaster”

“I’m fed up with journalists who are either ignorant or unwilling to learn about cryptocurrency,” Mr. Carter began, “holding forth on its perceived weaknesses. However, there isn’t enough time in the day to rebut all of their nonsense, so I have to be selective.”

Nic Carter, partner at Castle Island Ventures, and cofounder of Coinmetrics.io, is obviously tired of journalists and their respective employers failing to understand cryptocurrency basics. The last straw, bringing his anger to a public boil, was a recent article written for The Washington Post’s Wonkblog Perspective, “Bitcoin is still a total disaster,” by Matt O’Brien. It attempts to make the case Bitcoin doesn’t work on any level, to any practical effect.

As Mr. Carter explains, Mr. O’Brien’s Wonkblog piece “relies on mistaken assumptions to paint a misleading picture of the world.” He takes the rant apart, claim by claim, beginning with whether or not bitcoin is a currency. This is a bone of contention within the community itself, so it should be noted Mr. Carter is referencing bitcoin core (BTC) and not bitcoin cash (BCH) in his arguments against the rant by Mr. O’Brien (though BTC and BCH carry similarities).

Mr. O’Brien’s first claim, first sentence really, is BTC’s lack of price stability, and thus this fact discounts it as a currency. Interestingly, and for reasons cited just above, Mr. Carter almost concedes the point, “This assumes that Bitcoin is a currency, and that the definition of currency is normative (‘x should do y’) as opposed to descriptive (‘things of type x have the qualities y and z’). I’d classify Bitcoin the protocol as a complete monetary system, and bitcoin the unit of value as a commodity money, which has the potential to become a gold-like reserve currency. Commodities fluctuate — that’s what they do.” Maybe BTC is more than one thing, seems to be Mr. Carter’s nuanced stance.

Journalists Do Not Understand Decentralization

Another assertion in the Washington Post rant had to do with volatility being baked-in to Bitcoin. Mr. Carter describes that accusation as “an odd rewrite of history, or more charitably, a very strange interpretation of bitcoin’s purpose. The impossible trinity tells that it’s impossible to have free capital flow, sovereign monetary policy, and a fixed exchange rate all at the same time. Bitcoin was designed with sovereign monetary policy and a free flow of capital. No one underwrites or backs Bitcoin, so it cannot be pegged to a real-world basket of goods. That’s the same with gold. Both have emergent monetary premia. This can’t be planned for — it just so happened that way. Needless to say, Satoshi didn’t design Bitcoin to be unstable, he wanted to solve the problem of double spends with digital cash such that it didn’t rely on a single validator. Its volatility is an emergent property, not a design objective.”

Mr. O’Brien also attempts to use BTC being decentralized as a bug rather than a feature. He writes in the Washington Post that “the only way to [validate transactions in such a scheme] would be for every member of that network to keep a record of every bitcoin transaction there had ever been — that way they knew who had bitcoin to spend — which would require a lot of computing power,” emphasis his.

“This is a common misconception,”  Mr. Carter answers, bent on correction. “PoW and mining ensures that the network deterministically converges to a shared history, without any subjectivity or off-chain coordination. The fact that the minted units have value means that miners are incentivized to behave appropriately in the short and medium term. And the fact that those units are worth $x means that miners will pay anything up to $x to obtain them. This is the source of the large quantities of computing power allocated to the network — the combination of efficient mining hardware and large amounts of value at stake.” Furthermore, the Post journalist confuses running nodes with mining, and with miners. Maintaining the ledger, as it were, is a bandwidth issue, a storage issue, and has nothing to do with mining.

The remainder of Nic Carter’s takedown of the Post reads similarly, and is worth a look. He tackles the issue of price manipulation by castigating, “Plain old manipulation? You really mean to tell me you think a $100b network was manipulated into existence?” As for its falling prey to the wealth effect, Mr. Carter counters with empirical data leading to how Bitcoin “is unique among monetary assets because it offers properties not instantiated by gold or the USD. There’s a reason people choose Bitcoin.” He also isn’t afraid to get financially technical, but ultimately finds, “The problem with this article is that the pundit in question has settled on a narrative — Bitcoin is a poor economic system — and then searched for various data points that confirm his view. Bitcoin is volatile, yes. It is an emerging commodity-money that is becoming financialized and growing from a small tribe of enthusiasts to a global user base. Of course it’s volatile. Growth is not linear. Only ‘fragilistas’ demand it to be so.”

Does Bitcoin need defending to the popular press? Let us know in the comments section below. 


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Coinhive Mints Quarter Million Dollars in Monero a Month, Report Reveals

Coinhive Mints Quarter Million Dollars in Monero a Month, Report Reveals

Тhe profitability of cryptocurrency mining is decreasing on the backdrop of this year’s persistently bearish markets but Coinhive seems to be doing pretty well. The browser-based miner has earned a quarter million dollars worth of monero in just one month, according to a new study conducted by German researchers.   

Also read: New Player to Offer Next Generation ASIC Chips This Year

One in Three Minted Coins Goes to Coinhive Developers

Coinhive, the Javascript-based miner that takes away some of your CPU power to mine cryptos while you are browsing the web, remains very active. That’s one of the key findings in a report produced by academics from the Rheinisch-Westfälische Technische Hochschule Aachen, or the RWTH Aachen University in Germany. The software mints monero, a leading privacy coin whose struggle to remain ASIC-resistant has resulted in several forks this year.

Coinhive Mints Quarter Million Dollars in Monero a Month, Report RevealsAccording to the study, the miner has generated 1,271 XMR, or approximately $250,000 worth of monero, during the observation period of four weeks this spring. At the current, lower prices of around $88 USD per coin, the amount is still substantial – over $110,000 USD.

Coinhive is also estimated to mine 1.18 percent of all monero blocks with a median hash rate of 5.5M h/s. Its developers receive 30 percent of every minted coin and the authors of the research claim that most of the commission is sent to a small group of people.

Released in 2017, Coinhive was created to facilitate websites offering visitors ad-free experience in return for using their hardware to mine cryptocurrencies like monero. The absence of advertisements, however, comes with slower browsing speeds as the miner works in the background. Other factors, such as shortened battery life of mobile devices, rising energy bills, and the plummeting prices of the mined cryptocurrencies should also be taken into account when assessing how viable in-browser mining is as an alternative to ad-based financing.

Besides, these are not the only negatives – hackers have long learned how to take advantage of the mining code. They often break into websites, including the official web pages of government institutions, to install Coinhive and configure it to send the mined coins to their own wallets. Browser extensions have also been targeted and according to a recent report, routers too.

Despite Ineffective Blocking, Prevalence Remains Low

Analyzing the browser-based mining as a new revenue generating model to monetize websites without ads, the researchers from the largest German technical university have inspected for mining code the Alexa Top 1M and .com/.net/.org domains. They were able to confirm the utilization of browser-mining software but the prevalence remains low at less than 0.08 percent of the sites.

Coinhive Mints Quarter Million Dollars in Monero a Month, Report Reveals
No Coin detected miners on the Alexa Top 1 M and the .com/.net/.org domains.

Unsatisfied with the results from the No Coin filter, an extension available on Google Chrome, Mozilla Firefox, and the Opera browser, the scientists used an alternative technique based on Webassembly fingerprinting to identify miners and found that up to 82 percent of the mining websites were not detected by popular block lists.

The authors of the study concluded that Coinhive is the largest web-based mining provider used by 75 percent of the sites mining cryptocurrency. Inspecting the Coinhives’ link-forwarding service, they also found that “10 heavy users contribute over 80% of all short links mostly targeting streaming and filesharing services.”

What do you think about in-browser crypto mining as an alternative to ad-based monetization of websites? Share your opinions on the subject in the comments section below.


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Vietnamese Government Bans Mining Hardware Imports

Vietnam

Following a high-level proposal in July to ban the importation of all cryptocurrency mining equipment into Vietnam, the Vietnamese Customs Department has announced a total ban on all mining rig imports, according to a local news outlet.

The ban comes at a time when the country is dealing with the fallout of July's Sky Mining scandal, which saw the CEO of a crypto mining firm abscond with more than $35 million in company and investor funds.

Zero Tolerance Stance

According to data from the Ho Chi Minh City Customs Department, crypto mining equipment imports were shuttered by officials in July 2018. Before the restriction, private individuals and firms in the country brought in more than 3,664 mining rigs between January and June. These imports mostly consisted of Bitmain's Antminer ASIC rigs.

Last year, more than 7,000 mining rigs were imported into the country despite the government's noted anti-crypto stance. Following the Sky Mining scandal last month, however, local Vietnamese news outlets report that the Vietnamese Customs Department almost instantly imposed total import restrictions on miners, indicating that the government's negative stance on crypto has morphed into open restriction.

Government Regulation

Prior to the policy change, Vietnam's government had a reputation for being unwilling to regulate the cryptocurrency industry, bluntly declaring last year that bitcoin and other cryptocurrencies are not “lawful means of payment.” It also explicitly stated that issuing or using crypto as a means of payment within Vietnam is forbidden, indicating that it had no intention of officially engaging with crypto finance, whether the government has the resources to suppress it or not.

Despite the rhetoric, crypto mining persisted as a big business in Vietnam, with port authorities in Hanoi and Ho Chi Minh City issuing clearance for thousands of mining rigs intended to mine bitcoin and litecoin in 2017.

Officially, dealing with cryptocurrency trading has carried with it the risk of criminal prosecution and a fine of up to $9,000, but, until recently, the government generally seemed to turn a blind eye to crypto mining.

In May, the government decided to fine bitcoin.vn, a popular Vietnamese crypto exchange. The following month, Sky Mining investors who were already spooked by regulatory aggression toward crypto businesses noticed people claiming to be “maintenance personnel” clearing out the company's mining facility. The personnel transported the mining rigs to an unknown destination while investors were left with no information other than a Facebook post by CEO Le Minh Tam, where he apologized and promised to declare bankruptcy.





This article originally appeared on Bitcoin Magazine.

New Player to Offer Next Generation ASIC Chips This Year

New Player to Offer ASIC Chips This Year

A new competitor is advancing on plans to enter the mining hardware market by the end of the year. Canadian company Squire Mining has raised almost $20 million to finance the design, development, and testing of a new ASIC chip and bitcoin mining rig. Squire also wants to set up its own crypto mining facilities.   

Also read: Venezuela to Have Two Units of Account – Petro and Petro-Pegged Bolivar

$20 Million to Develop New ASIC Chip

Squire Mining Ltd., a Canada-based investment company focused on global resource exploration and tech projects, has closed its non-brokered private placement equity financing of $25,500,000 CAD ($19.5 million USD). The money will be invested in a planned change in business – the firm now wants to enter the crypto space.

Squire intends to use financing proceeds to fund the design, development, testing and mass production test run of the company’s “next generation” ASIC chip and bitcoin mining rig, according to a press release. A portion of the funding will be reserved for further research and development of a second generation chips and rigs, and to cover marketing, promotion and distribution expenses.

New Player to Offer Next Generation ASIC Chips This Year

The company says it hopes to complete the manufacture and assembly of a pilot production test run of its first bitcoin (BTC) mining ASIC chip and rig by the end of the fourth quarter of 2018. According to a partnership agreement with design and system engineering architecture expert Peter Kim, which was signed in March, the ASICs will be 10nm chips.

The joint venture, in which the company will hold an initial 66 2/3% interest and Kim will hold 33 1/3%, will be based in South Korea. It will be responsible for the design, development and commercialization of the highly specialized hardware. Once the ASIC chip development is completed, the enterprise will also take care with sales of bitcoin and other crypto-mining systems and work to develop its own mining facilities.

Growing Mining Industry Attracts New Competitors

Squire Mining, which is currently filing final listing documents with the Canadian Securities Exchange, notes that the development of the nextgen chips and system architecture is the central foundation for the growing crypto industry. Its entry into the mining sector, currently dominated by the Chinese giant Bitmain which controls about 80% of the market, is expected to increase competition in the space.

New Player to Offer Next Generation ASIC Chips This YearCrypto mining is a profitable business and the Beijing-based Bitmain, which also owns some of the largest mining facilities, has reported profits of more than $3 billion dollars in 2017. The mining behemoth is now trying to diversify its product line – it recently launched two new Wi-Fi routers capable of mining x11 and blake2b cryptocurrencies like dash and siacoin.

Bitmain announced the routers days after Canaan Creative, the world’s second largest manufacturer of cryptocurrency mining equipment, said it was planning to sell a TV set that doubles as a mining rig.

Other players, including companies like Samsung, are also trying to take a share of the market. This spring, the South Korean electronics giant reported increasing profits thanks to its production of bitcoin mining chips. In July, Japanese internet giant GMO launched an upgraded version of its bitcoin miner equipped with 7nm ASIC mining chips. The new rig boasts a higher hash rate and is capable of mining both bitcoin core (BTC) and bitcoin cash (BCH).

Are you expecting more companies to join the competition in the mining hardware sector? Share your thoughts on the subject in the comments section below.


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Trouble on the Horizon? What Last Weekend’s Ruckus Means for Bitmain’s IPO

Bitmain

Over the weekend, information surfaced that could suggest that mining giant Bitmain may be facing an uphill battle as it looks to launch an IPO on the Hong Kong stock exchange.


Newly leaked public information reveals that, in its pre-IPO presentation to investors, Bitmain provided insight into its cryptocurrency holdings, which shows that Bitmain unloaded most of its bitcoin (BTC) to accumulate bitcoin cash (BCH) in its stead. In a snapshot of a slide from the original presentation, the leftmost column titled “Digital quantity of money” shows Bitmain’s bitcoin supply decreased from 71,560 BTC to 22,082 from December 2016 to Q1 2018. Over the same period, its BCH holding increased to over 1 million coins.


Bitmain


Samson Mow, CSO of Blockstream, pointed out that Bitmain has incurred half a billion dollars in losses through its BCH holdings over the last three months alone. Scrutinizing the company further, Mow pointed out that Bitmain chose not to disclose financial data for its Q2 inventory in 2018. The tweet by Mow brings to light that Bitmain reported $1.24 billion in inventory for Q1 2018, while it has not mentioned any numbers for Q2 despite already being well into Q3, raising speculation that Q2 was omitted because the company may have realized a loss between $600-700 million.


In a recent Medium blog post, a pseudonymous blogger by the name of Crypto Herpes Cat points out that these losses, and the lack of transparency surrounding its reporting, could have an impact on Bitmain’s forthcoming IPO.

Why This Matters


All this could spell concern for Bitmain’s current and potential investors, although some investors have still expressed continued support for the company despite the recent debacle.


A recent twitter thread by Vijay Boyapati, a software engineer at Peach Inc. and a prominent crypto blogger, argues that “Bitmain entered one of the worst trades of 2017” when it chose to support bitcoin cash over bitcoin, going on to state that the mining giant is sitting on a such a large supply of the cryptocurrency that “they have no ability to exit its billion dollar position in BCash without a complete collapse in its price.”


As the evidence from the pre-IPO presentation suggests, Bitmain could be holding 5 percent of the total supply of bitcoin cash at a time when the altcoin is falling below its all-time lows. With market conditions like these, price stability is fragile, making it difficult for a large holder of any cryptocurrency to offload a large number of coins without severely affecting the price. Given its stash of bitcoin cash, Bitmain could risk tanking the price even further, something that would obviously be against its own interests.


Another part of Bitmain’s business is also struggling thanks to increased competition from competitors like GMO, Avalon and Ebang, who have started producing more efficient chips than the 16nm ones that Bitmain’s S9 miner uses, according to Crypto Herpes Cat.


Market saturation and an overall decrease in demand for miners during the prolonged bear market has caused Bitmain, the largest Bitcoin mining hardware company, to incur what may be a substantial loss on its balance sheet. For instance, the antminer s9, Bitmain’s latest and most sophisticated ASIC, once sold for $3,500; now, it’s selling for $700 — a decline of over 80 percent.


The majority of Bitmain’s value, however, is derived from its treasure trove of crypto assets like bitcoin cash, as well as future cash flows from selling mining equipment. During the bull market that saw bitcoin rise to almost $20,000, the same speculative demand that drove prices and mining interest fueled the majority of Bitmain’s business. But since bitcoin’s price has retreated some 70 percent from its all-time highs, the demand for ASIC miners has decreased as well.


Through multiple funding rounds in 2017 and 2018, Bitmain witnessed its valuation balloon to $12 billion, and its IPO valuation has it figured upward of $40 billion.

Now, there is some speculation as to the motives behind Bitmain’s IPO, including suggestions that they may be providing a way for Bitmain to right the ship by offloading onto retail investors. Since Bitmain’s value was derived from its speculative business strategies, its IPO may be a way to sell part of its company at the high valuation they earned during the bull market, Crypto Herpes Cat suggests.

How Did Bitmain Get Here?


Bitmain’s support for Bitcoin Cash has lined up with its narrative since the original hard fork in August 2017. Jihan Wu, CEO and co-founder of Bitmain, has sat alongside proponents like Roger Ver in defending it as the future of Bitcoin and money.


More than this, as an unofficial continuation of Bitmain's “BIP148 contingency plan,” Bitcoin Cash was effectively initiated by Bitmain, while Bitmain-affiliated mining pool ViaBTC realized the coin by mining its first blocks. Between ViaBTC and its other proxy mining pools, Bitmain supported and mined bitcoin cash from its inception, accumulating a large number on top of what it had already received during the fork.


Through its mining pools, Bitmain supported and mined bitcoin cash, accumulating a large amount on top of what it had already received as a result of the fork. Bitmain has also made substantial investments into projects supporting bitcoin cash, investing $3 million into a bitcoin cash-powered, digital advertising platform.


Bitmain has not responded to Bitcoin Magazine’s request for comment at this time.


This article originally appeared on Bitcoin Magazine.

Japan’s Internet Giant GMO Unveils New Crypto Priorities, Exchange Profits Up 7-Fold

Japan's Internet Giant GMO Unveils New Crypto Priorities, Exchange Profits Up 7-Fold

Japan’s GMO Internet has unveiled new priorities for its cryptocurrency business along with the performances of its crypto exchange and mining operations. The changes going forward result from the bear market and increased total hash rate.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

GMO Coin Profits Up 7.3-Fold

Japan's Internet Giant GMO Unveils New Crypto Priorities, Exchange Profits Up 7-FoldJapanese internet giant GMO published its second-quarter results for this fiscal year on Thursday. The report details the performances of the company’s cryptocurrency operations as well as changes in future plans.

In the second quarter, GMO’s overall crypto business generated a “revenue of JPY 2.6B [~US$23,481,811] in just a year since the launch,” the report reads. It also generated operating profits of 250 million yen (~$2,257,744) in the quarter compared to a loss of 730 million yen (~$6,592,612) the previous quarter.

For GMO Coin, the company’s crypto exchange operation, its “revenue increased 7.3-fold” in the second quarter compared to the previous. Its Q2 net sales were 1.42 billion yen (~$12,824,623) with operating profits of 550 million yen (~$4,967,283). In the first quarter, the subsidiary made a loss of 760 million yen (~$6,863,883).

Japan's Internet Giant GMO Unveils New Crypto Priorities, Exchange Profits Up 7-Fold

Furthermore, GMO revealed that its crypto exchange’s “customer accounts are growing steadily,” with about 177,000 accounts opened in one year.

Mining Revenues Up 92%, Unexpected Loss Incurred

GMO’s crypto mining business generated 1.17 billion yen (~$10,568,436) in revenue in the second quarter, up 91.8% from the previous quarter. While “our hash rate is increasing as expected,” the company made an overall loss of 360 million yen (~$3,252,429).

Noting that the “loss was against our expectation,” the company proceeded to change its mining business policy. In July, GMO mined 568 BTC, a slight increase from the previous month of 528 BTC. However, the hash rate in July was 384 PH/s, unchanged from the previous month.

Japan's Internet Giant GMO Unveils New Crypto Priorities, Exchange Profits Up 7-Fold

Citing external, “uncontrollable factors,” namely the low price of bitcoin and the increasing total hash rate, GMO detailed a change of priorities.

Previously, the company’s top priority was to mine cryptocurrencies in-house, then to offer cloud mining services to the public before selling mining machines. The new strategy puts selling the machines first, then mining in-house before offering their cloud mining services. The company will also “secure a more inexpensive power supply” to lower electricity costs for mining.

Japan's Internet Giant GMO Unveils New Crypto Priorities, Exchange Profits Up 7-Fold

GMO hopes that the change in strategy will lead to more control over their investments and an earlier payback. Meanwhile, the company still plans to ship GMO miners B2 and B3 at the end of October.

What do you think of GMO’s new priorities and performances of the crypto exchange and mining operations? Let us know in the comments section below.


Images courtesy of Shutterstock and GMO Internet.


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The post Japan’s Internet Giant GMO Unveils New Crypto Priorities, Exchange Profits Up 7-Fold appeared first on Bitcoin News.

Nvidia to Profit in Q3 2018 Despite Crypto Mining Decline

While crypto mining is experiencing a slowdown due to Bitcoin and other cryptocurrencies yielding lower mining profits worldwide recently, tech giant Nvidia Corp. is still expected to generate healthy revenue in Q3 of 2018. The tech company is seeing strong sales in its staple market, gaming, with graphics processing units still flying off the shelves … Continued

The post Nvidia to Profit in Q3 2018 Despite Crypto Mining Decline appeared first on CCN

PR: BITTECH Offers Two Mining Machines, Equipped with Mining Chips Using a Cutting-Edge 10 Nm Process Technology

BITTECH Offers Two Mining Machine, Equipped with Mining Chipsusing a Cutting-Edge 10 Nm Process Technology

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

BITTECH starts selling a new range of cryptocurrency mining hardware powered by 10 nm semiconductor chips (10 nm BT0010a and BT0010La mining chips). It is to be recalled that BITTECH introduced its first ASIC miner as early as mid-May, 2018. Bittech One based on 14 nm ASIC chip BT0014 is characterized by 28TH/s hashing power, while energy consumption makes 2200W.

A new range of mining hardware includes two models:
1. Bittech One Mini is a 10nm-based ASIC for private mining. ASIC is characterized by compact sizes, SHA-256-based 16TH/s hashing power, and 1150W power consumption. Retail price will make $880, including power supply unit. Pre-ordered mining hardware will be delivered as early as mid-September 15-25.
2. Bittech L-One is a new Scrypt-based solution for cryptocurrency mining (like LiteCoin). This is a 10nm BT0010La-based mining hardware with the hashing power of 2.3GH/s and energy consumption of 2600W. The miner is priced at $1970, including the power supply unit. Pre-ordered mining hardware will be delivered as early as mid-September 15-25.

BITTECH’s mining hardware based on advanced 10nm semiconductor chips is an “all-in-one” solution with Murata/Artesyn inbuilt power supply units, supporting hot replacement. Even a newbie can set up its unsophisticated and user-friendly software. All miners are covered by 180-days warranty.

BITTECH Limited was engaged in R&D with regard to 10 and 14nm advanced chips since early 2017. At the moment, the company has finished its R&D and offered own mining hardware to a wide range of customers. Aside from miners and chips, the company is going to establish four large data centers in Canada, Iceland, Estonia, and Russia. It has started the construction of Russia’s data center for 9000 miners with the total processing power of 21MW in April 2018. The company will lease a part of premises to its customers under colocation agreements.

More information about BITTECH:
Official website: bittech.cn.com
Twitter: twitter.com/bittechI

Press Contact Email Address
info@bittech.cn.com

Supporting Link
https://bittech.cn.com/news4

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post PR: BITTECH Offers Two Mining Machines, Equipped with Mining Chips Using a Cutting-Edge 10 Nm Process Technology appeared first on Bitcoin News.

Coingeek Speaks on Consensus Changes and Next-Gen ASIC Chip

Coingeek Speaks on Consensus Changes and Next-Gen ASIC Chip

Last week, news.Bitcoin.com reported on the proposed consensus changes published by the Bitcoin ABC development team, and the opposition towards certain elements of that proposal from a few BCH community members. Now the blockchain firm and mining organization Coingeek, led by the billionaire tycoon Calvin Ayre, has revealed some different proposed changes to the BCH protocol that the group would rather support. Moreover, Coingeek also explains the company has designed a next-generation ASIC chip that will be unveiled during the last week of November in London.

Also read: The Opposition Towards Bitcoin ABC’s Proposed Upgrade Changes

Craig Wright: The Plan is 128MB This November

Coingeek Speaks on Consensus Changes and Next-Gen ASIC ChipThree days ago we reported on the proposed changes being added to the next full node client published by the Bitcoin ABC development team. The new code changes should be in the next codebase release which is expected to be ready on August 15 for testing. As we discussed, the ABC developers plan to add canonical transaction ordering, a minimum transaction size of 100 bytes, activation of OP_CHECKDATASIG and OP_CHECKDATASIGVERIFY (CDSV), and push-only mandatory for scriptsig.

However, Nchain’s Craig Wright explained that CDSV would not happen while also detailing that friends like Calvin Ayre would not support the change. A few days later on August 11, Wright explained his preferred consensus changes that he would like to see implemented on the BCH chain this coming November. Wright states:

The plan is 128MB this November — 512MB in May 2019 — 2.0 GB in Nov 2020 and – after this, it is unbounded. There will be NO limits ANYWHERE in bitcoin. We expect 337k USD in fees a block just from one use case. That will then fuel BCH to become global money.   

Coingeek’s Statement Against Certain Changes and the Mining Pool’s November Suggestions

Coingeek Speaks on Consensus Changes and Next-Gen ASIC ChipFollowing this, on August 13 the mining organization Coingeek, which captures over 20 percent of the BCH hashrate, once again made a statement concerning Bitcoin protocol changes. The company starts off by explaining that it is fully committed to the global success of the original Bitcoin protocol which is “now restored in the form of Bitcoin Cash BCH.” Furthermore, Coingeek emphasizes that as a “significant miner” there are a few consensus changes they plan on supporting that are different than the changes proposed by Bitcoin ABC. The Coingeek proposal shows three features they would like to see implemented this November:            

  • Continuing the program to re-enable the original set of opcodes. Specifically for November, CoinGeek supports re-enabling OP_MUL, OP_LSHIFT, OP_RSHIFT, and OP_INVERT.
  • Removing the current limit of 201 opcodes per script.
  • Raising the maximum block size to 128MB.

Additionally, Coingeek notes some changes within the Bitcoin ABC proposal that the organization will not support. Coingeek agrees with Craig Wright, and explains they will not “commit their hashpower” to any software implementation that supports “canonical transaction ordering and OP_CHECKDATASIGVERIFY (CDSV).”

“In the longer term, Coingeek will continue to support only consensus changes that restore the original Bitcoin protocol, and those that may be demonstrated as absolutely necessary to meeting the goal of massive on-chain scaling to terabyte+ blocks,” the mining pool details.

Coingeek Speaks on Consensus Changes and Next-Gen ASIC Chip
Coingeek’s hashrate over the last seven days.

Coingeek Emphasizes It Will Support the Best Interest for All Enterprise Bitcoin Cash Miners, and Plans to Unveil a “Next Generation ASIC Chip Design” This November

Coingeek also says it encourages the development of plug-in transaction selection, removing transaction delays, free and cheap fees, computational cost-based fee calculation, and the implementation of a secondary transaction cache to allow double spend monitoring for transactions. The firm says it will continue to support the original vision of Bitcoin and says other mining pools should join them in taking a stance.

“Coingeek’s suggested path is in the best interest of all enterprise-level mining operations and we welcome working together to support this now,” the company notes.

Coingeek Speaks on Consensus Changes and Next-Gen ASIC Chip

Following the statement toward enterprise mining operations, the company has also revealed it has designed a “next generation ASIC chip.” According to Coingeek, the chip will be optimized for enterprise-level mining on the Bitcoin Cash network. Coingeek details it will be showcasing the new technology at a booth during the organization’s London conference in November. The BCH mining pool says they invite all miners to join them at the even so they can plan for the future of the industry.

What do you think about Coingeek’s statements and proposals for the upcoming November Bitcoin Cash hard fork? What do you think about Coingeek announcing next-generation enterprise-grade mining chips? Let us know what you think about this subject in the comment section below.


Images via Shutterstock, Coingeek logo, Nchain logo, Coindance, and Pixabay. 


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The post Coingeek Speaks on Consensus Changes and Next-Gen ASIC Chip appeared first on Bitcoin News.

Vietnam Confirms Suspension of Bitcoin, Cryptocurrency Miner Imports

After months of deliberation, Vietnam has moved to halting imports of cryptocurrency mining equipment according to a customs department in the country. Domestic businesses and individuals have stopped importing crypto mining equipment altogether since the beginning of July, according to the Ho Chi Minh City (HCM) Customs Department, as reported by Viet Nam News on … Continued

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Vietnamese Stop Importing Bitcoin Mining Rigs as Import Ban Looms

Vietnamese Stop Importing Bitcoin Mining Rigs as Import Ban Looms

Vietnamese businesses and individuals have stopped importing bitcoin mining equipment into the country since the beginning of July, according to the Ho Chi Minh City Customs Department. This follows the government’s efforts to pass a law banning the import of bitcoin mining rigs into Vietnam.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Mining Rig Imports Stop

Vietnamese Stop Importing Bitcoin Mining Rigs as Import Ban LoomsBusiness and individuals in Vietnam used to import a large number of crypto mining rigs into the country. Last year, the Customs Department of Ho Chi Minh City (HCMC) cleared more than 7,000 bitcoin and litecoin miners. Meanwhile, the Customs Department of Hanoi imported 190 bitcoin miners and 350 litecoin miners, Vietnam Biz reported Wednesday.

According to the HCMC Customs Department, businesses and individuals imported 3,664 crypto miners from the beginning of this year to August 6, most of which were Antminers from China. The news outlet reiterated:

According to information from the Customs Department of Ho Chi Minh City, from early July 2018 to now, organizations and individuals have stopped importing mining rigs.

According to the publication, four enterprises imported more than 3,000 machines this year; the rest were imported by “individuals and organizations [that] do not have [a dedicated] import tax code.” Viet Nam News added that “according to data from the General Department of Customs, Vietnam imported about 15,600 mining machines from 2017 to April this year.”

Mining Rig Import Ban Looming

Vietnamese Stop Importing Bitcoin Mining Rigs as Import Ban LoomsThe lack of crypto mining rig imports follows the proposal by the country’s Ministry of Industry and Trade “to suspend the import of cryptocurrency mining machines in a move to improve the management of currency transactions in the country,” the publication detailed.

The ministry has gained support from a few other government agencies and the country’s central bank, the State Bank of Vietnam (SBV).

The ban was proposed because the country’s finance ministry became concerned that crypto mining rigs are “not on the list of goods banned from importation and are not subject to the list of specialised management or unsafe goods, so enterprises are easily allowed to complete the import procedures,” the publication explained, noting:

The use of mining equipment for bitcoin, litecoin and other cryptocurrencies in the country is difficult for the authorities to manage. Thus it is easy for people to use cryptocurrencies as a currency or another method of payment, which is illegal in Vietnam according to the amended Decree 101 on non-cash payments.

In April, Vietnamese Prime Minister Nguyen Xuan Phuc signed a directive calling for stronger measures for cryptocurrencies. Xinhua described that “under the directive, credit institutions in Vietnam are not allowed to carry out cryptocurrency-related transactions and must swiftly report any suspicious activities.”

Do you think Vietnam will eventually ban the import of bitcoin mining rigs? Let us know in the comments section below.


Images courtesy of Pixabay.


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Another US City Imposes a Moratorium on Crypto Mining

Another US City Imposes a Moratorium on Crypto Mining

The city of Salamanca in the U.S. state of New York is reportedly establishing a moratorium on cryptocurrency mining operations in the city. This will stop crypto miners from “using up all the residents’ power and effectively make all of them get a price increase on their utility bills,” a member of the city’s council explained.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

City Council Voted for a Moratorium

Another US City Imposes a Moratorium on Crypto Mining The Common Council of the city of Salamanca in New York voted unanimously on Wednesday to approve Local Law No. 2 for 2018 and impose “a moratorium on commercial cryptocurrency mining operations in the city,” the Salamanca Press reported.

The news outlet described that according to the local law:

A moratorium would temporarily stop applications or proceedings, or the issuance of approvals or permits, for cryptocurrency mining operations in the ‘electric service area’ of the city of Salamanca.

The purpose of this moratorium is for the city to have “the opportunity to consider zoning and land use laws and municipal electric department regulations before commercial cryptocurrency mining operations result in [an] irreversible change to the character and direction of the city,” the publication conveyed. A public hearing on the local law will be held on September 12.

Buying Time to Set Rules

Another US City Imposes a Moratorium on Crypto Mining Salamanca council member Timothy Flanigan, who sits on the city’s Board of Public Utilities (BPU), explained that the BPU “does not yet have all the rules and regulations in place to properly deal with cryptocurrency operations.” Citing the sheer amount of energy crypto mining uses, he added that “this moratorium buys the city time to get rules in place without a blow to the electric system.”

Emphasizing the need to ensure that residential customers continue to have cheap power, he elaborated:

The thing that this [moratorium] will do is devoid people of using up all the residents’ power and effectively make all of them get a price increase on their utility bills because somebody else is using up all the cheap power.

A few other cities in the U.S. have introduced similar measures. In March, commissioners of a power district in Washington State’s Chelan County launched “an emergency moratorium on new high-density load hookups to give staff time to develop a plan for dealing with the demand for electricity from digital currency miners.” In the same month, the City Council of Plattsburgh, New York, adopted a local law prohibiting mining operations in the city, as news.Bitcoin.com reported.

Another small town in upstate New York, Massena, had a similar concern in July. The city’s regulators decided to charge crypto miners a higher rate for energy instead of imposing a moratorium.

What do you think of cities imposing moratoriums on crypto mining? Let us know in the comments section below.


Images courtesy of Shutterstock.


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Bitmain Releases New Crypto Mining Internet Routers for Dash and Siacoin

Bitmain has announced the launch of two internet routers that can mine Dash and Siacoin. In a tweet shared online, the company said the new miners, known as the Antrouter R3-DASH and Antrouter R3-SIA, will function as internet routers that can mine cryptocurrencies at the same time using the devices’ idle processing power. The routers

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