Research says Bitcoin Power Consumption May Account for 0.5% of the World’s Energy

bitcoin power consumption

As Bitcoin grows, the level of power consumption needed to mine grows too.  This is an area which is also receiving increasing attention. A new study published in the American Journal of Energy Academics Joule claims that by the end of 2018, Bitcoin network’s power consumption may account for 0.5% of the global total.

Currently, on average, every 10 minutes a new block on the Bitcoin network is created or “mined”, and the user who obtained the newly generated block is rewarded with 12.5 Bitcoin. This is the process known as “mining” and is the root ...

Get latest cryptocurrency news on bitcoin, ethereum, initial coin offerings, ICOs, ethereum and all other cryptocurrencies. Learn How to trade on cryptocurrency exchanges.

All content provided by Crypto Currency News is subject to our Terms Of Use and Disclaimer.

Bitcoin Mining Giant Bitmain Is Making a Major Pivot to AI

Bitmain is the world’s undisputed leader in cryptocurrency mining hardware manufacturing. Now, it wants to fill a similar role in the artificial intelligence (AI) field as well. Speaking in a rare interview, enigmatic Bitmain CEO Jihan Wu told Bloomberg that the company is channeling its expertise in developing application-specific integrated circuit (ASIC) chips toward a … Continued

The post Bitcoin Mining Giant Bitmain Is Making a Major Pivot to AI appeared first on CCN

Bitcoin Mining Manufacturer Canaan Files for Hong Kong Stock Exchange IPO

Bitcoin Mining Manufacturer Canaan Files for Hong Kong Stock Exchange IPO

Canaan Creative Co. Ltd, the Chinese company behind the Avalon lineup of hardware equipment which produces ASIC mining chips and rigs, has officially submitted a listing application to Asia’s third-largest equities market – the Hong Kong stock exchange.

Also Read: HTC to Launch Its Own Cryptocurrency-Focused Smartphone, Exodus

$1 Billion IPO

Bitcoin Mining Manufacturer Canaan Files for Hong Kong Stock Exchange IPO

Canaan posted a preliminary prospectus on Tuesday revealing it brought in a revenue of 1.3 billion yuan in 2017 and that its net income jumped over 600% to 361 million yuan. Morgan Stanley, Deutsche Bank AG, Credit Suisse Group AG and CMB International Capital Ltd. are named as joint sponsors of the proposed offering in the preliminary prospectus. The filing did not specify the amount Canaan will try to raise in the public offering but it is widely expected to be around $1 billion.

The Chinese ASIC cryptocurrency hardware market grew to 7.3 billion yuan in 2017 from just 50 million yuan in 2013, Canaan revealed in the filing, and consultant Frost & Sullivan extrapolates, that it will reach 28.6 billion yuan by 2020. The exact target date for the stock listing Canaan has in mind was not made public, and might change along with other details as the matter is evolving, but a person with knowledge of the situation told Bloomberg the company aims to start trading as soon as July 2018, just about two months from now.

Canaan to HK

Bitcoin Mining Manufacturer Canaan Files for Hong Kong Stock Exchange IPOThe Hong Kong market wasn’t the company’s only possible avenue for listing. Last year Canaan was known to be looking to list on China’s National Equities Exchange and Quotations, an over-the-counter market, and earlier this year it was reportedly examining its options for a US-based IPO. The company didn’t explain why it eventually picked Hong Kong but it is safe to assume that the less hostile regulatory approach on the island, compared to both mainland China and the US, played a part in the decision.

Back in April, we reported that the company employs around 200 people in Beijing and Hangzhou, mostly in R&D, and is looking to hire more. Canaan might use its chip development know-how and capabilities to create an unexpected new lineup of products. These can include home appliances such as television sets that mine cryptocurrencies “while you sleep.” Other developments include chips to power artificial intelligence (AI) applications and of course new hardware for mining additional cryptocurrencies.

Should all stock investors add an ASIC producer to their portfolio to get exposure to the bitcoin market? Share your thoughts in the comments section below. 


Images courtesy of Shutterstock.


Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics.

The post Bitcoin Mining Manufacturer Canaan Files for Hong Kong Stock Exchange IPO appeared first on Bitcoin News.

Japan’s GMO Gets Ready to Start Selling 7nm Bitcoin Mining Chips

Japan's GMO Gets Ready to Start Selling 7nm Bitcoin Mining Chips

Japanese internet giant GMO has updated its plans to manufacture and sell its 7nm bitcoin mining chips as well as for its own mining operations. Interested customers will soon be able to reserve some of these chips.

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

GMO Readies 7nm Mining Chips

Japanese conglomerate GMO Internet Group published its first quarter results for the fiscal year 2018 last week. During the earnings results presentation, the company outlined its plans for the sale of its long-awaited 7nm bitcoin mining chips.

Japan's GMO Gets Ready to Start Selling 7nm Bitcoin Mining ChipsGMO is building two versions of the chip, dubbed V1 and V2. The former is the initial prototype of the 7nm mining chip. The latter is for mass production of the 7nm mining chips, which the company plans to use in-house for its own mining operations, sell to the public, and use in cloud mining.

V2 is now being designed and will enter the mass production phase in the fourth quarter of this year.

Sale of 7nm Chips Starting Soon

In its presentation, GMO has revised its mining business plans from the fourth quarter of last year. The company now indicates that its mining operations are initially “based on store-bought mining computers,” and in roughly June the “7nm (V1) operation” will commence and in approximately October the “7nm (V2) operation” will be underway.

As for the sale of its 7nm bitcoin mining chips, the company spokesperson told news.Bitcoin.com:

We can disclose that accepting reservation will start from Q2 onwards and launch will be Q4 onwards only at this moment.

The actual sale dates are not specified. Furthermore, the company says its cloud mining operation will be launched in June.

Japan's GMO Gets Ready to Start Selling 7nm Bitcoin Mining Chips

GMO’s Mining Business

The mining business was launched on December 20 through GMO’s European legal entity. It comprises three areas: “[1] In-house mining; [2] Develop, manufacture, and sell mining machines; [and 3] Cloud mining.”

GMO says “Hash rate is increasing as planned. Amount of mined bitcoin is increasing as expected.” The company added that it has “new businesses at multiple locations in 2 countries,” noting that its hashrate in April was 241 PH/s but is confident that it will reach the target hashrate of 3,000 PH/s by the year’s end.

Japan's GMO Gets Ready to Start Selling 7nm Bitcoin Mining Chips

In addition to its mining business, GMO also operates a crypto exchange called GMO Coin and plans to launch a crypto payment service. The company aims “to become No. 1 in the field of cryptocurrency.”

Do you want to buy GMO’s 7nm chips? Let us know in the comments section below.


Images courtesy of Shutterstock and GMO Internet.


Need to calculate your bitcoin holdings? Check our tools section.

The post Japan’s GMO Gets Ready to Start Selling 7nm Bitcoin Mining Chips appeared first on Bitcoin News.

Bitmain Hits Back at “Dirty Tricks” Accusations

Bitmain Hits Back at “Dirty Tricks” Accusations

Chinese mining behemoth Bitmain has strongly refuted allegations that it pressurized an ASIC manufacturer into shutting out a foreign competitor. In a widely shared blog post, Siacoin’s lead developer David Vorick lifted the lid on the cutthroat ASIC mining business. In a response, Bitmain praised Vorick’s input to the industry – but took exception to one particular section of his writeup.

Also read: Siacoin Developer: ASICS Are “Money Printing Machines” for Manufacturers

Bitmain Breaks Its Silence

Bitmain Hits Back at “Dirty Tricks” AccusationsBitmain is a company of few words, preferring to let its ruthlessly efficient ASIC miners do the talking. It was stirred into breaking its silence, however, after an explosive blog post by David Vorick was published three days ago. The lengthy article contained a number of revelations and allegations about the cryptocurrency mining business, and Bitmain’s role in particular.

As we reported: “Siacoin’s lead developer repeats claims he has heard that “Bitmain plays dirty”. Vorick was allegedly told that Bitmain would use its power to stop other ASIC companies from manufacturing in China. Despite going to great pains to conceal Obelisk’s involvement in such a deal, the Chinese manufacturer backed out suddenly in a move that reportedly cost Obelisk $2 million. There is no proof that the manufacturer was leaned on by Bitmain, but David Vorick leaves no doubt as to where his suspicions lie.”

Not content to take this accusation lying down, Bitmain has hit back, retorting: “Considering the truly vast number and diversity of suppliers in China, it’s difficult to consider that Bitmain could possibly exert such powerful control over a competitor’s supply chain to the degree the article suggests.” Interestingly, Bitmain doesn’t outright deny the allegation, focusing instead on the fact that “six percent of [Vorick’s] total article” is taken up with exploring these supposed dirty tricks.

A Few Words From One of the Industry’s Most Furtive Organizations

Siacoin Developer: ASICS Are “Money Printing Machines” for Manufacturers
The new Obelisk ASIC miner

David Vorick’s blog post was a 5,300-word tour de force. Bitmain’s riposte, in comparison, runs to just 380 words, which provide just enough space in which to refute allegations of “dirty tricks” and the notion that “Bitmain floods the market with its mining rigs”. It’s curious that the mining company should choose to address this latter point, because nowhere in Vorick’s article does he accuse the company of flooding the market with rigs per se. He does though accuse the company of various other underhand tactics, such as mining with its own units and then shipping them once they’re no longer profitable, but Bitmain makes no mention of this.

As David Vorick acknowledged in his blog, it is extremely difficult to prove his audacious claims. If a large ASIC manufacturer was to conspire with a domestic supplier to thwart a rival, there would be no paper trail to go on. As a result, readers can only speculate as to who they believe is telling the truth: Siacoin and Obelisk developer David Vorick or Bitmain.

Do you believe Bitmain? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Bitmain Hits Back at “Dirty Tricks” Accusations appeared first on Bitcoin News.

Chinese Miners Are Finding Relocation Difficult in Southeast Asia

Chinese Miners Are Finding Relocation Difficult in Southeast Asia

According to a recent report, cryptocurrency miners from China have been flocking to regions in Southeast Asia like Vietnam, Myanmar, and Cambodia. However, a relocated Chinese miner based in Cambodia says miners trying to find safe havens in other Southeast Asian countries are having difficulties, and losing money every month due to residents complaining and unreliable power.

Also read: Zimbabwe Bans All Cryptocurrency Activity, Businesses Have 2 Month Grace Period

Chinese Miners Who Relocate Are Finding Other Regions Located in Southeast Asia More Difficult

Mining in China is still allowed but there have been rumors of government crackdowns, and because of this speculation many mining operations based in the country have begun to relocate. Some operations who still seek out cheaper Chinese electricity tariffs moved to the border towns in Yunnan, but lots of Chinese miners have relocated to other areas in Southeast Asia like South Korea, Vietnam, Cambodia, and Myanmar. Although government officials and residents living in these regions have been giving miners a hard time according to a relocated miner named Zhang Han.

Chinese Miners Are Finding Relocation Difficult in Southeast Asia
Zhang relocated to Cambodia from China and found that local rent is quite cheap, a 500 square-meter large shack only charges 500,000 riel ($100) per month, and you can hire two local young labors at the cost of only $100. But Cambodian mining operations have posed other problems for Chinese miners.

Zhang says that he had miner friends that already “occupied” the suburbs of Cambodia and Myanmar. He did the math and found areas in Southeast Asia still offer much cheaper electricity than other countries worldwide. However, the miner explains he is not too happy with the move and states “I really regret it.” At first, Zhang found that Cambodia was expensive in some areas of operations, but less expensive in other areas when compared to other regions.   

“Compared with other miners who choose Vietnam and Myanmar, the electricity in Cambodia is slightly more expensive, but it costs less in other expenses,” Zhang explains in his recent interview.

It costs almost the same in Cambodia as industrial electricity price in China, 1.3 yuan ($20 cents) per kilowatt-hour (kWh), but you can take advantage of electricity theft from streetlamp facility with the help of some insiders.

Chinese Miners Are Finding Relocation Difficult in Southeast Asia
Accessory costs and maintenance is much more expensive than China. Some things can be 3X the price says Zhang.

Accessories Costs and Operations Maintenance is More Expensive Abroad for Relocated Chinese Miners

The accessories costs and operations maintenance is what gave his mining operation headaches, Zhang explains. “Maintenance and accessories are very big problems, and it can also be said that the cost of supplies is very high,” Zhang details. “But hardware maintenance is a challenge, it would cost you a great sum – at least 3 times higher than the cost back in China, especially in hot days when entering March. Buying parts here is really a big headache, we have no choice but to purchase them from China, which would take days or even weeks to have it available in operation here.”

At times we turn to local miners for help, while they would seize the opportunity to ask for unfairly high price for a tiny fitting. 

Chinese Miners Are Finding Relocation Difficult in Southeast Asia
Many areas in Southeast Asia experience lots of power outages and Zhang’s operation deals with electrical outages frequently. However, Zhang says you can take advantage of electricity theft from streetlamp facility with the help of some “insiders.”

Chinese Miners Also Face Unfriendly Local Competitors and Residents Who Might Report Electrical Theft

Zhang further realized that Cambodia suffered from significant power outages where there is no electricity for a whole day or even longer. The miner says in order to mitigate the problem, if an operation happens to have a connection with a power company “insider,” they can steal power from a nearby streetlight. However, local residents may report this method to the authorities, and Zhang says residents are not too friendly towards Chinese miners right now. Additionally, local miners and financial institutions backed by Western countries are also not pleased with Chinese miners relocating to these countries.

“Apart from the local residents and miners, institutions funded by western countries are also unfriendly to us — They are all trying to squeeze us out of here — And I’m considering that,” Zhang concludes.

What do you think about relocated Chinese miners having issues in other areas of Southeast Asia? Let us know your thoughts on this subject in the comments below. 


Images via Shutterstock, and SOHO.com


Now live, Satoshi Pulse. A comprehensive, real-time listing of the cryptocurrency market. View prices, charts, transaction volumes, and more for the top 500 cryptocurrencies trading today.

The post Chinese Miners Are Finding Relocation Difficult in Southeast Asia appeared first on Bitcoin News.

Nvidia GPUs Used For Crypto Mining, Nvidia Reports $289 Million Revenue

Nvidia GPUs

Nvidia has shown incredibly bullish behavior that is undoubtedly linked to the rise of cryptocurrencies. The high demand for Nvidia GPUs in the marketplace has helped Nvidia have a successful year. It is also a sign of the growing interest in crypto mining and how much interest has been growing in the general public:

“GPU business revenue was $2.77 billion, up 77 percent from a year earlier and up 12 percent sequentially, led by Gaming and Datacenter. Gaming revenue was up 68 percent from a year ago and down 1 percent sequentially. Gaming GPU growth was ...

Get latest cryptocurrency news on bitcoin, ethereum, initial coin offerings, ICOs, ethereum and all other cryptocurrencies. Learn How to trade on cryptocurrency exchanges.

All content provided by Crypto Currency News is subject to our Terms Of Use and Disclaimer.

Secret ASICs, Hidden Farms, and Manufacturers Playing Dirty: the New State of Cryptocurrecy Mining

Proof of Work cryptocurrencies like bitcoin are facing struggles with the wave of ASIC mining hardware. Nakamoto envisioned a decentralized cryptocurrency mining consensus spread across a large pool. But of late it’s turned into a environment where two or three major players reap a large portion of mining profits. As a result, developers and communities are … Continued

The post Secret ASICs, Hidden Farms, and Manufacturers Playing Dirty: the New State of Cryptocurrecy Mining appeared first on CCN

Siacoin Developer: ASICS Are “Money Printing Machines” for Manufacturers

Siacoin Developer: ASICS Are “Money Printing Machines” for Manufacturers

ASIC miners are hugely profitable machines – provided you’re the manufacturer. That’s the view of Siacoin lead developer David Vorick, who’s published his thoughts on the monopoly enjoyed by manufacturers such as Bitmain and Halong Mining. In “The State of Cryptocurrency Mining”, Vorick also accuses manufacturers of using the machines themselves, before passing them on to the public once they’re no longer profitable.

Also read: Cryptocurrency Projects Aiming to be ‘ASIC Resistant’ Have Little Success

The Absolute State of Cryptocurrency Mining

Siacoin’s David Vorick knows more than most when it comes to cryptocurrency mining. In addition to overseeing the development of decentralized file storage coin SIA, which uses a Proof of Work algorithm, Vorlick operates his own ASIC manufacturing firm. Obelisk was founded around 18 months ago, and with their first ASICs scheduled to ship in eight weeks, Vorick has decided to lay bare his thoughts on the industry. “The State of Cryptocurrency Mining” is a revelatory blog post that pulls no punches.

In it, Siacoin’s lead developer repeats claims he has heard that “Bitmain plays dirty”. Vorick was allegedly told that Bitmain would use its power to stop other ASIC companies from manufacturing in China. Despite going to great pains to conceal Obelisk’s involvement in such a deal, the Chinese manufacturer backed out suddenly in a move that reportedly cost Obelisk $2 million. There is no proof that the manufacturer was leaned on by Bitmain, but David Vorick leaves no doubt as to where his suspicions lie.

Siacoin Developer: ASICS Are “Money Printing Machines” for Manufacturers
The new Obelisk SC1/DCR1 ASIC miner.

ASICS Are Money Printing Machines

The most explosive part of Vorick’s blog concerns allegations of ASIC manufacturers secretly mining with new units before selling these to the public once they’re no longer profitable. These claims aren’t new, and can be traced as far back as Butterfly Labs and its ill-fated ASIC miner. David Vorick is the most senior and well-connected figure within the mining industry to go public with these allegations, however, writing:

In the case of Halong’s Decred miner, we saw them “sell out” of an unknown batch size of $10,000 miners. After that, it was observed that more than 50% of the mining rewards were collecting into a single address that was known to be associated with Halong, meaning that they did keep the majority of the hashrate and profits to themselves.

He continues: “Our investigation into the mining equipment strongly suggests to us that the total manufacturing cost of the equipment is less than $1,000, meaning that anyone who paid $10,000 for it was paying a massive profit premium to the manufacturer, giving them the ability to make 9 more units for themselves.” It has been alleged that prior to Bitmain shipping its Monero Cryptonight miners this year, an unknown entity had been mining with them for months. Vorick concurs:

My sources say that they had been mining on these secret ASICs since early 2017, and got almost a full year of secret mining in before discovery. The ROI on those secret ASICs was massive, and gave the group more than enough money to try again with other ASIC resistant coins.

Siacoin Developer: ASICS Are “Money Printing Machines” for ManufacturersAt the time of the Cryptonight ASICs becoming public knowledge, a war of words erupted between Bitmain and senior Monero figures. Monero’s Fluffypony wrote that the huge leap in Monero’s hashrate in 2017 had originally been attributed to botnets using hijacked computers to mine XMR. This assertion had been revised in the wake of Bitmain unveiling its Monero-specific X3s. David Vorick adds fuel to the fire, writing: “It’s estimated that Monero’s secret ASICs made up more than 50% of the hashrate for almost a full year before discovery, and during that time, nobody noticed. During that time, a huge fraction of the Monero issuance was centralizing into the hands of a small group, and a 51% attack could have been executed at any time.”

 

Secret ASICS Are Rumored to Exist

Bitmain Made a Profit of Up To $4 Billion Last YearSecret ASICs that have the power to attack existing hashing algorithms far more effectively than anything on the market are rumored to exist. David Vorick is convinced of this, and if he is correct, these units are the mining equivalent of a zero-day exploit – highly lucrative and highly protected. He speaks of “mining farms that are willing to pay millions of dollars for exclusive access to designs for specific cryptocurrencies” and “an informal underground industry” that has sprung up around secret mining.

Because no entity, be it a mining pool or hardware manufacturer, is going to put their name to such activity, it is very hard to provide concrete proof of these allegations. What is beyond dispute is that ASICs are money printing machines for those who make them at scale. Vorick finishes: “At the end of the day, cryptocurrency miner manufacturers are selling money printing machines. A well-funded profit maximizing entity is only going to sell a money printing machine for more money than they expect they could get it to print themselves. The buyer needs to understand why the manufacturer is selling the units instead of keeping them for themselves.”

Do you think some ASIC manufacturers engage in dirty tricks and underhand practices? Let us know in the comments section below.


Images courtesy of Shutterstock, and Obelisk.


Need to calculate your bitcoin holdings? Check our tools section.

The post Siacoin Developer: ASICS Are “Money Printing Machines” for Manufacturers appeared first on Bitcoin News.

47% of South Africans Plan to Invest in Cryptocurrencies

South Africa has the most sophisticated economy and financial sector on the continent, and its citizens are increasingly warming up to the idea of investing and trading in cryptocurrencies — despite regulatory concerns over such decentralised digital financial assets across the world. The MyBroadband 2018 Cryptocurrency Survey — completed in April — shows that more South

The post 47% of South Africans Plan to Invest in Cryptocurrencies appeared first on CCN

Nvidia Reports $289 Million Revenue from the Crypto Sector in Q1

Nvidia Reports $289 Million Revenue from the Crypto Sector in Q1

Graphics card manufacturer Nvidia has announced its revenues for the first quarter, mentioning separately the amount generated from sales to the crypto market. The total includes $289 million related to GPUs for cryptocurrency mining, according to a corporate report. Demand from crypto miners was stronger than expected, the company noted.  

Also read: New Player Asrock Said to Enter the GPU Mining Market

Crypto Miners Bought a Lot of GPUs, Nvidia CEO

Reporting its financial results from a strong first quarter, Nvidia Corp. has revealed, in a separate box, the amount it generated from sales to the crypto sector – $289 million. According to the company’s CFO Commentary on Q1 Fiscal Results, the total revenue increased 66 percent year-over-year, and 10 percent sequentially, to a record $3.21 billion. All platforms – Gaming, Professional Visualization, Datacenter, and Automotive – have produced growth, the company said.

Nvidia Reports $289 Million Revenue from the Crypto Sector in Q1“GPU business revenue was $2.77 billion, up 77 percent from a year earlier and up 12 percent sequentially, led by Gaming and Datacenter,” the leading video card manufacturer announced. Gaming revenue was up 68 percent from a year ago and down 1 percent sequentially. Datacenter revenue exceeded $700 million, up 71 percent from a year ago and up 16 percent sequentially, Nvidia detailed.

“OEM [original equipment manufacturer] sales included $289 million related to GPUs for cryptocurrency mining,” the company pointed out, revealing reportedly for the first time the revenues from its sales to the crypto market.

Demand from cryptocurrency miners in the first quarter was stronger than expected, Nvidia admitted Thursday on its earnings conference call, according to Bloomberg. Nvidia CEO Jensen Huang said:

Crypto miners bought a lot of our GPUs in the quarter and it drove prices up. I think that a lot of gamers weren’t able to buy into the new Geforce as a result.

However, the company expects sales in the sector to fall by about two-thirds in the current quarter.

GPU Manufacturers Benefit from the “New Form of Computing”

Earlier this year Jensen Huang predicted that despite regulatory pressures, the popularity of cryptocurrencies will grow in the next few years. The chief executive of Nvidia said that cryptocurrency, or the “ability for the world to have a very low-friction, low-cost way of exchanging value, is going to be here for a long time”.

In March, Huang told CNBC that cryptos and blockchain, “a fundamental new form of computing,” will be important drivers for the GPU market. He was also quoted as saying that Nvidia needs to increase its GPU production, admitting that the surging demand may be coming from the decentralized nature of cryptos. “There are supercomputers in the hands of almost everybody. No singular force or entity can control the currency,” he added.

Nvidia Reports $289 Million Revenue from the Crypto Sector in Q1

Advanced Micro Devices, Nvidia’s main competitor, has also benefited from increased sales to crypto miners. According to a report by the analytical firm Jon Peddie Research, demand from the sector helped AMD reduce the gap between its results and those of Nvidia. In the last quarter of 2017, AMD’s share of the GPU market rose from 27.2% to 33.7%. The authors noted that its products remain cheaper, while offering practically the same productivity, when it comes to crypto mining.

In April, Advanced Micro Devices announced that its revenue for the first quarter amounted to $1.65 billion, with net income reaching $81 million. Again, the positive results were helped by continued demand for cryptocurrency mining hardware. “The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth,” said AMD president and CEO Dr. Lisa Su.

What are your expectations for the market of crypto mining hardware this year? Tell us in the comments section below.


Images courtesy of Shutterstock.


Bitcoin News is growing fast. To reach our global audience, send us a news tip or submit a press release. Let’s work together to help inform the citizens of Earth (and beyond) about this new, important and amazing information network that is Bitcoin.

The post Nvidia Reports $289 Million Revenue from the Crypto Sector in Q1 appeared first on Bitcoin News.

Bitcoin Moons to $36,000 by End of 2019 According to Fundstrat

Bitcoin Moons to $36,000 by End of 2019, According to Fundstrat

Fundstrat Global, a favorite research firm in the cryptosphere with Wall Street-street cred, is once again providing eye-popping bitcoin (BTC) predictions. This time analysis depends largely on what’s known as the mining economy. Hash power and hardware advancement all combine to show a possible $36,000 BTC price by the end of next year, they claim.

Also read: JP Morgan Chase Eats Humble Pie, Applies for Blockchain Patent

Fundstrat Continues Moon Price Predictions

Fundstrat’s head of data research, Sam Doctor, explained, “The release of the next generation of rig hardware should trigger a new round of capex as well as hash power growth, which could accelerate if BTC price appreciates.”

Capex is short for capital expenditure, and refers here to upgrades in technology such as mining rigs. Hash power growth can be thought of as cryptocurrencies such as bitcoin using proof of work, relying on a unit of measure basically recording power consumed by the network to keep it humming along, in this case, roughly every ten minutes a block is found or generated.

Bitcoin Moons to $36,000 by End of 2019, According to Fundstrat
Internal Fundstrat research document

“We believe the current path of hash power growth supports a BTC price of about $36,000 by 2019 year end, with a $20,000-$64,000 range,” Mr. Doctor continued. “The primary net sellers, in our view, are bitcoin miners, and the rest are transactions between investors.”

If a multiple of four from its current price seems ambitious, the actual range from Fundstrat pushes the high to nearly twice even that number. Mr. Doctor uses mining economics to establish a floor support level due to its supposed relative growth going forward. Through next year, researchers believe mining hash power will indeed boom by 350 percent.

A Rosy Immediate Future

Most of the price moon prediction depends upon miners Fundstrat assumes will hold their position through the crypto winter, and then sell once it recovers (and better). Moving variables in the mining economy include rig innovation, electricity cost, and the ability to lower hardware temperatures.

Mr. Doctor further elaborated how “miners verify and process transactions, supporting the network in exchange for mining rewards and transaction fees. We argue that the Price/Miner’s Breakeven Cost multiple has proven a reliable long-term support level, and further, that the likely trajectory of future mining infrastructure growth should underpin Bitcoin price appreciation into year-end 2019.” And harder numbers Fundstrat asserts to be $6K per BTC for Bitmain’s Antminer S7, and just over $2K for its S9 model.

Bitcoin Moons to $36,000 by End of 2019, According to Fundstrat

Such rosey price predictions are nothing new for Fundstrat Global. Its very public face, and really only prominent Wall Street analyst to take cryptocurrencies seriously as an asset class, Tom Lee, famously last Summer forecast BTC becoming a store of value on par with gold, reaching a high of as much as $55K by 2022. As more information has come in, Mr. Lee has also said he expects the digital asset could moon to $25K by the end of this year alone.

Still other analysts believe the causal connection between mining activity and speculative price is not well established, leading to perhaps more outlandish price calls as a result. And with other cryptocurrencies battling it out for market share, offering varieties of features not currently found in bitcoin, the BTC price explosion might not be such a given. At press time, BTC price hovered around $8,500, down almost ten percent.

What are your crypto price predictions? Let us know in the comments section below.


Images courtesy of Shutterstock, Fundstrat.


Need to calculate your bitcoin holdings? Check our tools section. 

The post Bitcoin Moons to $36,000 by End of 2019 According to Fundstrat appeared first on Bitcoin News.

Bitcoin in Brief Friday: China Mulls Blockchain Standard, Zcash Fights Chinese ASICs

Bitcoin in Brief Friday: China Mulls Blockchain Standard, Zcash Fights Chinese ASIC-Miner

In today’s Bitcoin in Brief we are covering a number of stories related to China. According to statements by Chinese officials, the People’s Republic is developing a national standard for blockchain technologies, which should be introduced next year. Also, the Zcash Foundation is taking steps to protect the network of the privacy coin from ASIC-based mining. Chinese giant Bitmain has recently launched its Antminer Z9 Mini designed to process transactions for cryptos like Zcash, which use the Equihash algorithm.

Also read: Bitcoin in Brief Thursday: Bitcoin Supporter Might Be Next NY Attorney General

China Preparing National Blockchain Standard

Chinese authorities are working to develop a national standard for blockchain technologies and applications. The new system should be completed and introduced by the end of 2019, according to reports by state-controlled media in the People’s Republic.

Bitcoin in Brief Friday: China Mulls Blockchain Standard, Zcash Fights Chinese ASIC-MinerA national standard plan for blockchain is under preparation and respective departments will set up a national blockchain and distributed Accounting Technology Standardization Committee said Li Ming, director of the Blockchain Research Office at the Electronic Industry Standards Research Institute of the Ministry of Industry and Information Technology. Li Ming told the Economic Information Daily that the national blockchain standard will include basic standards, business and application standards, process and method standards, credible and interoperable standards, and information security standards. He also added that the scope of its applicability will be expanded in the future.

According to a recent statement by Yu Kequn, director of the National Center for Information Technology Security Research, “The development of blockchain technology may become an important step for China to grasp the global technological competition.” Yu Kequn also noted that blockchain technology is a new integrated application of distributed data storage, peer-to-peer transmission, consensus mechanisms, and encryption algorithms. “It has the characteristics of decentralization, openness, tamper resistance, and anonymity,” the official pointed out and added: “It can be applied in the production, management, and transaction chains, and it will bring the entire life cycle of restructuring to different areas, so that it can be managed and traceable.”

Iceland’s Missing Mining Rigs May Have Been Found in China

The mining equipment which was stolen from data centers in Iceland several months ago might have reached China, according to media reports from the Nordic nation, which has attracted crypto miners with cheap energy and favorable conditions. At least 600 computers, graphics cards, motherboards, processors, and other hardware, worth an estimated $2 million, disappeared in a series of burglaries in December and January. Last month, Chinese authorities conducted a raid on a crypto mining farm in the city of Tianjin. According to local media, police have confiscated 600 computers used to mine cryptocurrency in the illegal facility.

Bitcoin in Brief Friday: China Mulls Blockchain Standard, Zcash Fights Chinese ASIC-Miner

The suspected organizer of the heist in Iceland, Sindri Thor Stefansson, fled to Sweden after escaping from a low security prison in his country. He was recently arrested in Amsterdam and is now awaiting extradition to Iceland, where he is going to face trial. The ongoing investigation and the court proceedings are expected to establish the facts and circumstances surrounding one of the biggest burglaries in Iceland’s history. Tracing the stolen mining equipment is a priority for authorities trying to get to the bottom of this case. Their findings should prove or dismiss the media speculation around the possible connection between the two incidents.

Zcash Opposes ASIC-Based Mining after Chinese Giant Launches Equihash Miner

Developers of Zcash have stated that the struggle against ASIC-supported mining is a priority. They have indicated their opposition after the launch of a new application specific circuit designed to process transactions for the privacy coin. Zencash, a Zcash fork, has also announced plans to potentially change its algorithm for the same reason. Earlier in May, the Chinese mining giant Bitmain revealed the upcoming release of a new device that will be capable of working with the Equihash algorithm, which was itself introduced to prevent ASIC mining and is used by Zcash and other cryptos. ASICs were initially developed to mine mainly bitcoin. The highly specialized hardware is capable of handling the enormous number of calculations involved in the processing of its transactions.

Bitmain has a track record of successfully overcoming ASIC-resistant algorithms. The mining equipment producer has already developed powerful miners for many cryptocurrencies whose developers have tried to stop the centralization of hashing power. These include miners for the algorithms Ethash, used by the Ethereum network, and Cryptonight, used by Monero. The new Antminer Z9 Mini, developed to mine Zcash, Zencash, and others, offers a hashrate of 10k Sol/s. It was expected to hit the market in June, but according to the manufacturer, it can be ordered now. “To prevent hoarding and to let more individuals worldwide get one, we’ve set a limit of one miner per user,” Bitmain said in a tweet.

Bitcoin in Brief Friday: China Mulls Blockchain Standard, Zcash Fights Chinese ASIC-Miner

The management of the Zcash Foundation has decided to allocate resources to study the influence of ASIC mining on the network. An advisory council will be convened to provide a “scientifically grounded answer” to the problem. The team behind Zcash, however, may be forced to fight a war on two fronts, after researchers from the University College London recently found a vulnerability in the crypto’s algorithms. They believe that certain patterns in Zcash transactions significantly weaken its anonymity. The claim is that when the cryptocurrency is transferred from unprotected to protected addresses and then back again, the overall level of anonymity decreases significantly.

Student Leaves China after Losing on Crypto Investments

A Chinese college student has reportedly lost a small fortune by local standards due to unwise crypto investments and has already left the country in search of better opportunities to compensate the losses. Liu Ke, a sophomore in his twenties, used all his money to buy cryptocurrency, mostly aircoins, when markets were going up towards the end of last year. When cryptos were hitting their all-time highs, he spent a total of 140,000 yuan (~$23,000), including amounts he borrowed from online micro loan platforms like Alipay and Baidu. He even “invested” the money for his tuition fees. Liu Ke told the local outlet 8btc that he now lives and works in the Cambodian coastal resort Sihanoukville, where he hopes to earn more money to cover his debts.

What are your thoughts on today’s stories in Bitcoin in Brief? Let us know in the comments section below.


Images courtesy of Shutterstock, Yarcube, Wikipedia.


Bitcoin News is growing fast. To reach our global audience, send us a news tip or submit a press release. Let’s work together to help inform the citizens of Earth (and beyond) about this new, important and amazing information network that is Bitcoin.

The post Bitcoin in Brief Friday: China Mulls Blockchain Standard, Zcash Fights Chinese ASICs appeared first on Bitcoin News.