Altcoins

Bitcoin Mining Council official open and Elon Musk to have no formal role

Bitcoin Mining Council made its debut on June 10 and is backed by Micheal Saylor, an American entrepreneur with strong roots in the crypto space. This council will act as an open forum for Bitcoin miners, which couldn’t have come at a better time as miners face backlash for extensive energy use. 

The idea behind the council is to promote transparency, create a global community, deploy best practices and educate the masses about the benefits of Bitcoin. According to BMC’s website, this initiative is backed by nine companies, including Micro Strategy, BlockCap, Galaxy Digital, and Marathon. 

“The Bitcoin Mining Council is a voluntary and open forum of Bitcoin miners committed to the network and its core principles,” MicroStrategy Inc. CEO Michael Saylor, and one of the founders of the council, wrote on Twitter. “Join us.”

This council will help address the claims of several leaders that suggest that the carbon footprint of Bitcoin and other cryptocurrencies mining is extensive and needs to be controlled. Among the leaders, Elon Musk is one name that shines brighter than others because of his controversial tweets.

Musk’s Involvement

Musk tweeted a few weeks back about his plans to stop accepting Bitcoin for his EV company Tesla which sent Bitcoin tumbling down to one of the lowest prices seen in years. Apparently, this decision was made because of the environmental concerns of Bitcoin’s carbon footprint and will start accepting the currency once it transitions to a more sustainable method. 

However, much to the surprise of several experts, Musk tweeted that he had “potentially promising talks” ‘with North American miners on energy conservation, hinting at his involvement in the BMC. However, BMC categorically stated that Musk’s extent of involvement with the council was joining an “educational call”.

While the Bitcoin Mining Council is free to join for anyone that believes in the ideology of Bitcoin, Musk does not have any official position in the council. The founding members will cover the cost of onboarding and operating expenses for the first year. 

“Any excess funding will be given back to Bitcoin core development through established organizations,” The website mentioned.

Zionodes – How Bitcoin Miners Can Experience a Sublime DeFi Experience?

Despite the current global pandemic, Bitcoin miners have dug their way through. The Bitcoin market is witnessing in what can be described as one of the best months in a long time. Things couldn’t have been any brighter for them. 

The network is seeing the best hash rates, and miners are reaching new levels of decentralization. If one looks around, they can see billions of dollars getting invested in the Bitcoin mining segment. 

The segment is looking bright with several phenomenal projects, like Zionodes. A post on yahoo finance highlighted just why Zionodes is one of the best in Bitcoin mining. The main principles that Zionodes works on are user control, DeFi, and optimum transparency. 

History, and little about the founders

Successful organizations are formed by like-minded individuals who want to serve others. Probably, that would be the best way to describe the founders of Zionodes. Matvii Sovoraksha and Olga Kochmar, who are cryptocurrency enthusiasts, began this platform. 

They wanted to show users the power and capabilities of decentralization on DeFi. Matvii Sovoraksha is a Creator of Thanos wallet for Tezos and Olga Kochmar, the founding member of Bitcoin Association of Hong Kong.

The central concept of this platform is to decentralize bitcoin mining using a tokenized ASICs platform. Bitcoin mining can be at risk due to powered centralization that happens from state-level coercion using vertical or horizontal integration. 

Zionodes gives bitcoin miners the ability to know what they are doing. Seldom users in this kind of a platform are aware of what is happening around them. This leads to unwanted problems and confusion. 

Users have their own pools, wallets, and earnings. Hence, nothing is kept hidden. Users get to own the equipment after a 1-year contract is over. Once the contract is over, they can request the machine to be delivered to the location. 

ASICs Tokenized Platform

New users might want to be brought to their knowledge that Bitcoin mining can be an expensive affair. That is because things can become extremely technical, and they need to use heavy infrastructure. 

With the help of the Zionodes tokenized platform, they bring a simpler, easier, cheaper, and flexible mode of getting into mining. It highlights the fact at the ease of which you can purchase a Bitcoin mining machine.

Users can get the Bitcoin mining machine such as the Antminer S15. However, they may want to keep an eye on the gas fees of the Ethereum network. Unlike other platforms, Zionodes recommends users stick on to their rewards instead of withdrawing them immediately. 

This enables them to make better profits. Anybody can make their print in the crypto market provided them are guided in the right manner. Zionodes presents the right pathway just to do that. 

Intense security provided on Zionodes

Besides, users can become part of the Zionodes community as the risks are diversified. The rewards are reinvested flexibly. 

A distinct feature noticed in Zionodes is the security provided. 

The platform uses a secure sockets layer and a 3-layer architecture of data processing. Remarkable security is provided from Zionodes, ensuring that all the information is safe. It comes with two-factor authentication and cryptographic protocol. 

They also enable a seamless payment process where it accepts all forms of cryptocurrency payments. 

U-Turn For Chinese Bitcoin (BTC) Miners

China may be tough on Cryptocurrency trading; however, Bitcoin mining is seen to be a significant operation amongst Chinese cryptocurrency enthusiasts. In the last few months, BTC miners have been slowly fading off in China due to the bear markets, even going to the extreme of selling off their mining equipment by the kilos.

According to 8btc, a Chinese blockchain and crypto news source,  miners in China have been stocking up on Application-Specific Integrated Circuit (ASIC) chips. The main reason cited is the anticipation of the Bitcoin halving which is expected in May 2020.

Current Bitcoin Mining Profitability

As of now, Bitcoin mining may have almost zero profits. However, as the halving gets closer, it is expected to rise dramatically.

Bitcoin’s halving is expected to reduce inflation by 50%, and according to past statistics, Bitcoin will rise in price. Currently, miners receive 12.5 Bitcoins per block mined, and this will further drop to 6.25 Bitcoins in the next halving.

Companies such as Bitmain has faced a severe turn of events due to the bear markets in Cryptocurrency, with significant downsizing and delays in their IPO. However, with things picking up, Bitmain may start to walk.

Chinese Bitcoin Miners Getting Creative

The Chinese Bitcoin miners are doing all they can to reduce the costs of mining. From negotiating the best rates of buying used mining equipment to making deals with hydroelectric plants and mining farms.

Hydroelectric plants are bound to gain excess electricity generated thanks to a heavy rainy season this year.

It’s pretty clear bull season is around the corner, and both Cryptocurrency investors and miners are getting ready.  Mining equipment makers, on the other hand, will not profit as much as second-hand mining equipment are rising in demand.

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Interested in more crypto content? Check out Financial Giant SBI to Launch a New Crypto Exchange and MDW Partners With Bitfury and Longenesis

The Raven’s Dispatch – Bitcoin Mining Crash and Burn – 11 January 2019

The Ruthless Bitcoin Mining Industry

And here we thought 2019 was going to bring us riches and glory. It’s OK, nobody is blaming you for sipping on the hopium, it’s only 11 days into the new year. Plenty of time to recover, get things straight and keep on that resolution list (LOL).

But mining looks like it’s taken a turn for the worse. Remember the days when being a Bitcoin miner was about solidarity? About taking it to the man, the system? About being an outsider trying to find a new, better, and more open way to share assets? Ya fuck that. In this world it’s all about the benjamins….errr yuan….errr euro…errrr Bitcoin. Anywho bitcoin mining is now a cutthroat business that is crashing and burning.

So the new year has brought us some sideways movement, which I think we can all agree is welcome. Whatever you call it, it sure as hell beats 2018. Fuck 2018.

Top 5 Crypto

Throughout the first week of the year, most of the coins in the top twenty category according to market capitalization saw green on price analysis charts as investor confidence continued improving in the post fork period.

For a more detailed analysis check out Dennis’s weekly cryptocurrency analysis here.

WHAT’S NEW AT CRYPTO IS COMING

So much content, where to start. Oh I know:

Crypto 2019 – What to Expect – There’s no denying it – 2018 was a rough year for crypto in many respects. Despite the incredible leaps forward made in the technology, much of the mainstream media coverage focused on the price action of Bitcoin only, detailing the dramatic crash from an ATH of around $20,000 to under $4,000 today.

Crash and Burn: The Ruthless Bitcoin Mining Industry – Put it this way – the Bitcoin mining is not for the faint of heart.

Western Union open to Cryptocurrency adoption – two years ago this news would have excited me. I’m so jaded. Global cash transfer giant Western Union has revealed that it is evaluating options for the integration of blockchain technology and Cryptocurrency services to its platform.

Alipay partners with Malaysian bank to enable cross border Blockchain transactions – Alipay is  abig deal in Asia, right? Right?

How Decentralized is Bitcoin Core? – Bitcoin, Bitcoin Core, whatever. When it comes to talking Bitcoin forks, people tend to get heated. It’s a controversial subject in the cryptocurrency space

Are People Still Flocking to Blockchain Jobs – Even amid the so-called “crypto winter”  blockchain has seen rapid growth as an industry, viewed as exciting and innovative by many onlookers.

South African Finance minister announces push for cryptocurrency regulation – South Africa hopped onto the push for a regulated space for cryptocurrency in her economy.

Abkhazia cuts off power supply to 15 crypto-mining farms – We posted a while back how crypto mining was overwhelming Abkhazia’s electrical network. Well, eff those miners.

Will Bakkt Pump Bitcoin? – Lots has been said about BAKKT, but will it really have a positive effect? Bakkt, the futures market for Bitcoin being rolled out by New York Stock Exchange owner ICE, is close to approval from the US government and could change the cryptocurrency landscape in a major way.

BitMex to take over Exchanger cementing grip on the Crypto-industry – Madison Group Holdings, a Japanese wine-manufacturing giant, has teamed up with BitMex, a Japanese cryptocurrency exchanger to acquire majority shareholding in BitOcean- a leading crypto assets exchanger in Japan.

Zilliqa Denies Facebook Rumors – The cryptocurrency community has been quite enthusiastic about a particular piece of news, as it appears as though Facebook might be developing its own cryptocurrency.

InfoSys Exec Believes In Blockchain – Recently, in an interview, the Senior Vice President (SVP) at Infosys, a world-renowned IT company, praised blockchain, and spoke about how 2019 will be a great year for blockchain adoption.

Thanks for joining us this week! If you have something interesting you would like to submit reach out to us at info@cryptoiscoming.com. And don’t forget, Crypto is Coming!

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Crash and Burn: The Ruthless Bitcoin Mining Industry

Put it this way – the Bitcoin mining is not for the faint of heart.

Mining was once a hobbyist activity for crypto enthusiasts running Bitcoin nodes for fun and a sense of community more than to make money. Sure, there were always believers, but many people were just excited at the prospect of making their own, as Bitcoin godfather Andreas Antonopoulos calls it, “nerd money” without ever really considering the possibility that one day a Bitcoin would be worth even a single cent, let alone thousands of dollars.

How things have changed!

Mining is now a multi-billion dollar industry, with extreme risks and cut-throat competition. pressure of the bear market causing operations to mine at a loss, hoping for the best and in a bizarre but understandeable turn of events, even leading some miners to short the Bitcoin market to hedge against losses.

One of the criticisms of Bitcoin mining is that it favors the wealthy miners more and more as time goes on, with smaller operations being squeezed out in favor of huge, sprawling mining farms worth hundreds of millions of dollars.

The competitive and unforgiving nature of the industry was quite dramatically illustrated by the rise and fall of heavyweight mining hopeful GMO Internet, which proudly announced the production of an ASIC miner with higher performance capabilities than the Bitmain S9.

GMO Internet Takes On The World

GMO Internet probably thought they had it made. They had just released a miner more powerful than that of the most powerful mining company on the planet – what could go wrong?

The company’s downfall is beautifully described in a blow-for-blow tweetstorm written by Yasmine Elmandrja of ARKInvest:

Here’s what happened:

GMO didn’t just announce the launch of their new 7 nm miner, but boldy declared war on Bitmain while they were at it. While stating that they had respect for their top competitor, GMO said they would “top Bitmain” which is worth $12 billion USD at last count and become the number one leader in Bitcoin mining hardware manufacturing.

And Fails

Unfortunately for GMO, Bitmain’s S9 wasn’t the only competition – just the most visible one. Bitmain is large enough to lose and still win, absorbing failed experiments into the gigantic budget they’ve generated through years of success and market dominance. While GMO Internet is actually a larger company, their foray into Bitcoin mining was short lived.

GMO failed to do their homework – they beat the S9 alright, but so did several other mining companies whose products are portrayed in the chart above.

More accurately, the net present value (NPV) or profitability over time of those products is shown in the chart. You’ll find those competitors on the profitable side of the chart – unlike GMO.

Whoops.

Crash And Burn

The least profitable of six different products, GMOs miner launch was a massive failure which gained no traction, took gargantuan losses, and the internet giant ended up having to crash out of the mining industry altogether, selling off its machines wholesale and announcing a staggering loss of $218 million USD.

The whole mess goes to highlight the incredibly high stakes of the industry and the ever-shifting and improving standard of hardware quality. GMO Internet will live, but taking such a huge loss after announcing world domination is bound to have wounded the company’s pride and coffers a little, yet another casualty of the brutal “crypto winter” that continues to impact companies throughout the industry.