Category Archives: mining

Auto Added by WPeMatico

Bitmain IPO Dream Sinks Further After 2018 Q3 Earning Reports

Bitmain IPO Dream Sinks Further After 2018 Q3 Earning Reports

According to Coindesk, cryptocurrency mining rig manufacturer Bitmain lost USD 500 million during its Q3 financials due to a prolonged bear market, citing a recent update on its financial results to the Hong Kong Stock Exchange (HKEx).

According to a source, the company fell short of its quarterly earnings by as much as USD 500 million. In a previous report it submitted to the exchange, it reported earnings for the first half of the year as having USD 1 billion as profits.

The company’s portfolio had reportedly dropped in valuation by as much as USD 100 million at the end of the third quarter compared to the beginning of the quarter. Being a major stakeholder in the Bitcoin Cash fork, it held a lot of stake in the asset, however, the market downturn had severely traumatized the price of the asset to as much as a 70% loss. Its other major assets holdings like Bitcoin, Ether, Litecoin, and Dash had lost 39%, 67%, 42.68%, and 64.31% respectively.

Bitmain had filed for an initial public offering (IPO) with HKEx in August 2018 to allow it list its shares with the exchange which may possibly improve its financials. However, the company has experienced many constraints on all sides. On the part of the exchange, it had claimed that the industry is still immature for such a leap, and the resulting earnings report for Bitmain further buttresses its point.

For months, many crypto-related ventures have been up against an uphill battle of weathering the storm stirred by the bearish market of 2018. For the most part of the year, aspirations to return to the all-time high seasons gradually waned, instead, many companies began to adjust. For Bitmain, it had to deal with the internal restructuring that saw a reshuffling of management staff, office closures of subsidiaries, and layoffs of its staff.

The chances of Bitmain’s IPO to gain approval from HKEX gets slimmer with the numerous challenges besetting the mining hardware giant.

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Bitmain IPO Dream Sinks Further After 2018 Q3 Earning Reports appeared first on BitcoinNews.com.

Miner’s Jackpot! User Pays $560,000 Premium Fee for ETH 0.17

Miner's Jackpot! A User Pays Premium Fees of 3,990 ETH For 0.17 ETH Transaction

Over half a million dollars (ETH 3,990 worth over USD 590,000) was spent as a transaction fee in sending approximately ETH 0.17 ETH – a mere USD 25 worth as at press time.

The transactions did take place in a series of 5 transfers from a currently unknown wallet address to 3 different wallet addresses, each with exorbitant transaction fees considering the amount of Ether that was being transferred.

The first transaction was a transfer of 0.01ETH, with a fee of 210 ETH;

The second transaction was a transfer of 0.02 ETH with a fee of 420 ETH;

The third transaction was a transfer of 0.1 ETH with a fee of 2,100 ETH;

The fourth transaction was a transfer of 0.02 ETH with a fee of 420 ETH;

The fifth transaction was a transfer of 0.02 ETH with a fee of 840 ETH.  

The blockchain space is conversant with transaction fees peaking at different points in time, much more frequent on the Bitcoin network. Besides, a recent report suggested that Bitcoin transactions are healthy over the network as fees touched 2014 lows again.

Nonetheless, this anomaly doesn’t seem to be a general problem on the Ethereum network as only this account was reportedly affected. Besides, so far, the highest network fees recorded to date on the Ethereum network is USD 5.

While so many blanks are yet to be filled, however, the wallet seems to have had over 17,690 transactions logged as at press time and has been running for close to 3 months. More so, this anomaly occurred only today throughout its history. Could it be a network or software glitch or a developer’s error, probably while executing a program on Ethereum’s mainnet?

It remains to be known what may have caused the abnormal fees sent.

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

 

The post Miner’s Jackpot! User Pays $560,000 Premium Fee for ETH 0.17 appeared first on BitcoinNews.com.

Argentina Goes With Bitcoin to Settle Export Deal

Argentina Goes With Bitcoin To Settle Export Deal

Argentina has made history by recently completing an export deal with South American neighbor Paraguay using Bitcoin as payment.

The export of pesticides and fumigation products has set an example for others in the region, showing that cryptocurrency has the potential to act as a credible form of payment at the international trade level as well as between individual users.

Although a small total in terms of export values, still the move is significant, illustrating the simplicity of the process of paying using a cryptocurrency and then converting to local currency. Argentina utilized Bitex – a Latin American financial service provider that supports Bitcoin payments- to facilitate the deal made under the Esporta Simple programme which facilitates small deals of less than USD 15,000.

This was not the first time Bitex crypto project involved the Argentinean Banco Masventas. Last year, the bank had announced the creation of a SWIFT interbank alternative, using Bitex to provide support for BTC transactions.

Paraguay itself has seen some serious activity on the cryptocurrency front since the end of 2018, following a new partnership with local Bitcoin mining equipment manufacturer Bitfury and Commons Foundation, a South Korean peer-to-peer knowledge commons research firm. The project will see the launch of several mining facilities in Paraguay.

Under the project, a remote area of Paraguay close to the borders of Brazil and Argentina is to develop its own crypto mining subculture, thanks to the world’s largest dam, the Itapúa Hydroelectric Dam – the largest operational hydroelectric energy producer in the world.

It appears Itapúa is finally going to create the regeneration many have been calling for as Paraguay’s government has revealed plans to put into action, the “Golden Goose” – a project which will see the construction of five mining centers on 50 square kilometers near the tourist border town of Ciudad del Este.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Argentina Goes With Bitcoin to Settle Export Deal appeared first on BitcoinNews.com.

Miners Concerned Over Russia’s Planned Internet Shutdown Test

There are growing concerns is Russia’s cryptocurrency community that the cyberwar internet shutdown tests scheduled to take place before 1 April could impact Bitcoin mining.

The Digital Economy National Program, a new law recently drafted, will require Russian ISPs to be able to operate if the country is isolated online and as such the government is planning to monitor its effectiveness through the internet shutdown. The law suggests measures including building a Russian version of the net’s address system, DNS (Domain Name System).

Leonard Levin, the chairman of a Russian government technology committee says argues, “The calls to increase pressure on our country being made in the West oblige us to think about additional ways to protect Russian sovereignty in cyberspace.”

How will the shutdown impact Bitcoin miners who are totally reliant on internet connectivity? Bitnodes figures suggest that there are 10,476 Bitcoin nodes of which 291 (2.78%) are located in Russia, compared to 271 nodes (3.02%) on the Ethereum network.

In theory, Bitcoin mining could connect to Blockstream’s satellite network and circumvent disruptions. The Blockstream satellite is a one-way network, but the user still needs a connection to the Bitcoin network to send transactions, which can include SMS gateways. The network comprises four satellites across six coverage zones including the Asia and Pacific region, allowing users to send data over its network.

The Russian government has agreed to cover any costs for the shutdown, which will be backed up by an intranet, to compensate internet provers needing to modify systems by installing servers to redirect and filter web traffic.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: bitcoinnews.com

The post Miners Concerned Over Russia’s Planned Internet Shutdown Test appeared first on BitcoinNews.com.

Depreciating Cost of Mining Machines, Bitcoin Price Hit GMO Group

Its latest company report published this week confirmed that the GMO group suffered losses of JPY 1.3 billion (USD 12 million) in 2018, mainly due to a drop in cryptocurrency mining activity.

A company spokesman for the Japanese company which supports internet infrastructure, internet finance, and cryptocurrency mining business, put the down the losses to the declining price of Bitcoin in 2018 along with a depreciation in the cost of mining machines.

The main outcome of the company’s losses has resulted in a rethink in how GMO adjusts its business policy moving forward. A problem in 2018 had been the purchase of expensive mining machines from other manufacturers, which led to decreased profitability. This was due to a delay in procurement of part of the electronic components, which led to the postponement of development and manufacture of mining machines.

The company has now decided to relocate its mining center elsewhere in Japan in order to obtain a cleaner and more financially viable power supply. In December 2018, GMO had indicated that it would be closing down its mining operations with predicted losses of JPY 35.5 billion due to quitting the development, manufacture, and sales of mining equipment.

GMO said:

“The electricity cost in the new location, which is confidential, is less than half of that in Northern Europe, which is 7-8 cents per kWh including running costs. We believe the relocation will impact our earnings this summer.”

With further losses announced this week, it is unclear exactly how GMO will progress in the cryptocurrency space moving forward into the long term.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: bitcoinnews.com

The post Depreciating Cost of Mining Machines, Bitcoin Price Hit GMO Group appeared first on BitcoinNews.com.

Unpacking Hostile Media Narratives About Bitcoin’s Environmental Impact

Unpacking Hostile Media Narratives About Bitcoin’s Environmental Impact

Rhetoric about Bitcoin’s environmental impact just became too much for one CCN correspondent recently, who wrote an editorial in an attempt to put the record straight; or at least bring some balance to the argument.

A recent Bitcoin News article recently tried to address the same debate after the much-publicized Alex de Vries article last year in Science Direct, forecasting that Bitcoin mining would comprise 0.5% of total global electricity consumption by the end of 2018, and was consuming 2.5 gigawatts (GW). It was the first scientific peer-reviewed paper on Bitcoin mining energy usage and caused much consternation in cryptocurrency circles at the time.

This was combated by a Coin Shares research analysis which claimed that Bitcoin mining consumes 35 TWh annually, 0.14% of global capacity and less than the energy consumption the tiny European nation of Luxembourg. Alex de Vries was then accused of an overly simplistic approach to his calculations.

Too much for CCN’s Wes Messamore, who had to take to task the seemingly “multiple articles castigating Bitcoin as a harbinger of environmental degradation and destruction”. Messamore accused the mainstream media of painting Bitcoin as “one of the four horsemen of the environmental apocalypse”.

He cited one editor’s accusation that mining contributed “20 megatons of CO2 into the atmosphere a year—as much as the whole Republic of Ireland?” as a clear error given that, as Messamore pointed out, “a megaton is not a measure of the mass of a compound like CO2, it’s a unit of explosive energy”. What the writer should have written was a metric ton, not megaton, possibly?

Another interesting comparison to Bitcoin’s atmospheric destruction. Google estimates that it released 1.5 million metric tons of CO2 into the atmosphere in 2010, with Facebook’s annual carbon emissions in the 300,000 range, using its own figures. Banks don’t fair to well either, the CCN writer points out:

“Using all of the publicly available information about the global banking system, a very conservative calculation will yield an estimate that the institutional banking uses 100 terawatt-hours of electricity per year while the Bitcoin network’s annual electricity consumption is less than a third of that amount.”

Back to the drawing board; time to get the facts right regarding Bitcoin’s impact on the environment. There’s bound to be another claim along in the not too distant future.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Unpacking Hostile Media Narratives About Bitcoin’s Environmental Impact appeared first on BitcoinNews.com.

Chip Makers Blame Slow Profits on Mining Slump, Phone Sales Also Down

Chip Manufacturers Blame Mining Slump But Phone Sales Also Down

Taiwanese chip manufacturer United Microelectronics Corporation (UMC) has blamed its 10% drop in revenue for the last quarter of 2018 on a downturn in mining.

Mining hardware sales are always affected when the demand for cryptocurrency is slow, due to reduced levels of mining activity, but there are some who feel mining is too often the scapegoat for a drop in chip sales. TSMC, the manufacturer responsible for supplying chips to Bitmain, were also quick to attribute their losses to a downturn in the crypto market. The company’s co-president Jason Wang commented:

“Looking into the first quarter of 2019, we anticipate further deceleration in customers’ wafer demand, due to a softer than expected outlook in entry-level and mid-end smartphones as well as falling cryptocurrency valuations.”

Some observers have commented that this drop in smartphones sales is more significant than some companies like to indicate as profits from mining hardware have recently outperformed smartphone sales. For example, as mining demand drove up profits significantly in 2017, new smartphone shipments only increased by 2%.

The argument is, given that smartphones are the greatest driver of chip sales, a declining market in mobiles has more impact on chip sales than a decline in the crypto mining sector. Some argue that the makers of cellphones need to address this and develop new markets, particularly in developing areas such as Africa and South America where smartphone ownership is still relatively low.

Companies manufacturing hardware need to diversify, given that cryptocurrency is still in its youth, in order to ride out lean periods. The cryptocurrency market will fluctuate, as clearly illustrated by the last two years. The crypto winter “blame game” will run out of steam very quickly when cryptocurrencies become a fact of life and demand for hardware will be overtaken by demand.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Chip Makers Blame Slow Profits on Mining Slump, Phone Sales Also Down appeared first on BitcoinNews.com.

Bitmain Targets Development in Revamped 2019 Business Model

Bitmain Targets Development in Revamped 2019 Business Model

Bitmain appears to be in the process of repositioning itself towards development to make 2019 a far more successful year after the disappointments and layoffs of 2018 as cryptocurrency mining came under pressure.

The Beijing mining giant recently referred to last year’s negatives and positives in its latest roundup, but now seems more focused on how to turn things around after rationalizing its business model, not only through the already much hinted administrative changes at the head of the company but also by targeting development. A company blog has recently clarified its direction in 2019, suggesting that:

“Our mission is to produce hardware and software, as part of our commitment to contribute towards the security and stability of a multitude of cryptocurrencies. We look forward to continuing this effort this year, and contributing to a distributed, decentralized world that empowers everyone.”

Bitmain’s recent blog post sees the cryptocurrency industry stabilizing this year, echoing many analysts’ suggestions that institutional investors will revitalize the markets, and clearly envisages a role for ASICs, simplifying cryptocurrencies in a way that encourages their adoption as both a useful and a usable asset.

The company is not alone in hoping that sensible regulation will lead to greater adoption of crypto finance, although such moves will clearly have to wait in the US, where the SEC is running a skeleton staff due to the prolonged government shutdown.

According to the blog, now that the company has undergone significant staff cuts, there is a feeling at the top that a new leaner operation will support Bitmain’s aim to build a more sustainable and scalable business, and suggests that “part of that is having to really focus on things that are core to that mission and not things that are auxiliary”.

Time will indeed tell if consolidated focus and renewed energy in a scaled down company does make 2019 Bitmain’s year of development.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Bitmain Targets Development in Revamped 2019 Business Model appeared first on BitcoinNews.com.

Anonymous Bitcoin Miners Fill Void as Bitmain Sizes Down

Anonymous Bitcoin Miners Fill Void as Bitmain Sizes Down

Blockchain research unit Diar has published new data which illustrates the degree to which anonymous Bitcoin miners are now validating more blocks than any other pool.

This research follows recent announcements that Bitmain, the world’s largest maker of cryptocurrency mining chips, is reported to be laying off up to 50% of its staff in 2019 following huge staff cuts in 2018 in its 11 mining farms operating in China. This forced the company to lay off 3,000 of its staff in December having initially grown from 1,000 employees.

With larger producers such as Antpool, BTC.com, and ViaBTC now validating fewer blocks than this time last year and Bitmain pulling back from mining, it appears that “unknown” miners are becoming a dominant factor of the space. Diar reported:

“[Unknown] miners closed December having solved a whopping 22 [percent] of the total blocks, up from 6 [percent] at the start of last year… The Bitcoin network is currently less likely to experience an attack given the fact the BTC.com controlled pools have lost dominance over the network.”

At the beginning of 2018, Bitmain’s mining pools represented 53% of Bitcoin’s hash power, but with the recent reduction of the company’s influence on the crypto mining industry, those wary of 51 percent attacks are now expressing relief that such attacks will now be far less likely in the future. This means that the world’s flagship cryptocurrency is becoming more decentralized due to Bitmain’s diminishing influence along with the return of anonymous miners.

However, Diar has warned that the growth in hash rate observed over January may be unstainable, especially if Bitcoin returns on its 2018 bearish trend. Bitmain will be watching the market and significant changes could see a return to the former giant’s mining dominance.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: BitcoinNews.com

The post Anonymous Bitcoin Miners Fill Void as Bitmain Sizes Down appeared first on BitcoinNews.com.

Report Cites Record Exchange Transaction Volumes in 2018

Report Cites Record Exchange Transaction Volumes in 2018

The latest Diar report shows that 2018 was a record year for cryptocurrency transacting volumes with huge increases across most major exchanges.

The report states that in the US markets, crypto exchanges such as Kraken and Bitfinex led the way in 2018 with increases of 192% and 50% respectively. San Francisco-based giant Coinbase also showed significant trading increases with a rise of 27% over 2017 trading. Coinbase reported a hike in trading from 82.7 million deals over the year to 94.4 million.

However, Diar predicts a drop off in 2019 spot markets to below the 2017 level despite increases of available cryptocurrencies on the market. In terms of mining activity, Bitcoin miner revenues were also on the up, according to the report, earning a huge USD 5.8 billion in 2018. This, despite monthly figures slumping by 83% over the course of the same year.

Diar commented on the changing face of cryptocurrency mining, indicating that many companies have shifted to operating large numbers of small mining pools rather than larger operations, as a protection against attack. The report stated:

“Unknown miners closed December having solved a whopping 22% of the total blocks up from 6% at the start of last year. The Bitcoin network is currently less likely to experience an attack given the fact the BTC.com controlled pools have lost dominance over the network.”

Another significant factor regarding the direction of the market is that high liquidity OTC transactions are finding greater favor among investors compared to physical BTC markets, reflected in Coinbase observing a 20% increase in BTC trade volume during OTC markets hours.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Report Cites Record Exchange Transaction Volumes in 2018 appeared first on BitcoinNews.com.