Update on the recent China-FUD. China to Cut Preferential Policies for Bitcoin Mining Factories
Conclusion: So there will be 17% tax in China VS 15% in USA. So no more cheap electricity (rise from $0.03 to $0.12). And other things. My prediction: Chinese hashrate marketshare will plunge from 80% to 30% in three months. Short news from https://k.caixinglobal.com/web/detail_22227 Chinese regulators are planning to gradually remove preferential policies for electricity, tax and land use for bitcoin mining companies, a source with knowledge of matter told Caixin. The news comes amid rumors that the central bank is moving to close bitcoin mines after a closed door meeting on Wednesday, which the source denied.
More Comedy GODL in r/Bitcoin: "Finally got my father, a factory owner, into bitcoin mining and guess who’s getting all the money. Me. My idea my money \_😎_/" ... and proceeds to fight with r/Bitcoiners, calls them "bitch niggaz", and claims "Electricity is free in my country" 🤣🤣🤣
Charlie & the Chocolate Factory mining analogy (extract from the Bitcoin Billionaires book)
I've been reading, 'Bitcoin Billionaire: A True Story of Genius, Betrayal and Redemption', and found this little analogy explaining how Bitcoin mining works, attributed in the narrative to Cameron Winklevoss. I don't know how well the analogy holds, but for a non-techy like me, I found it helpful: “The little boy in the movie...is looking for a golden ticket inside candy bars. Charlie is a like a miner. And the golden ticket, which will grant him a tour of Willy Wonka’s factory, is like the block reward. Now suppose that by searching for this golden ticket, Charlie is also simultaneously validating purchases of candy bars and recording them in the factory’s business ledger—the Willy Wonka blockchain. And suppose there are many Charlies all around the world doing the same thing, searching for that golden ticket. As they open Wonka bars, they are auditing the Wonka blockchain and checking one another’s work. Willy Wonka’s contest has miraculously incentivized children around the world to work together to validate and record transactions of Wonka bars, helping Willy keep track of who paid for what, thereby protecting his profits and ensuring that his factory stays in business and can continue to make chocolate for everyone.” Voorhees smiled. “That’s very good. And it perfectly illustrates the magic of Bitcoin. Instead of middlemen, or gatekeepers, you have an open competition of miners, individually incentivized to validate transactions. No bank or government sits in judgment of transactions, or takes a piece of each slice of pie. Middlemen are replaced with math, or in the case of your example, an army of Charlie Buckets.” “And the Willy Wonka of Bitcoin,” Tyler said. “Who set all of this in motion: Satoshi Nakamoto.”
Has you opinion of Kawhi changed this past offseason?
Okay in all actually, he's most likely (barring like an underground forced labor bitcoin mining factory ring he runs) 99.9999% an outstanding citizen to society. With that being said, in the NBA world and salty teams aside...I feel like the narrative changed from him being the quiet humble fun meme guy wearing New Balances to being that silent, cutthroat, killer who gives zero shits about story lines and will do whatever he can to get the bag...be it rub elbows in San Antonio, toy with the Lakers and ask them, "how bad did y'all want me?" allegedly when talking to Magic only to buy time to force LAC and OKC cough up picks for PG13...and these UNSUBSTANTIATED reports of Uncle Dennis wanting dat extra extra under the table...all while forcing NBA teams to rest him 25% of the season with load management at 28 years lol. Btw it's his right to do all this lol- dude is literally a contractor for elite level basketball so....board man gets paid
The intelligent Investors Guide to Cryptocurrency Part 0 - Explaining cryptocurrency to a moderately intelligent noob who knows nothing about it.
Introductions: I'm joskye. A cryptocurrency investor and holder.
So my accountant who doesn't know much about cryptocurrency emailed me recently asking about it. He had the following questions:
Isn’t crypto currency actually more dangerous than fiat in that it has absolutely no intrinsic value and it is tied to electronic systems?
Who are the major players, akin to banks today, the keepers of the money, who can be called upon by Sovereign bodies to provide information on transactions?
Who guarantees the value of the currency?
Are cryptocurrences convertible to sovereign currencies which still form the base of transactions and value exchange?
What could happen when/if cryptocurrencies are the predominant means of exchange?
How many crypto currencies do you think can co-exist?
I realized these were the most common questions mainstream people have of cryptocurrency and decided to answer them. Feel free to read, learn and share with any newcomers asking questions about this space. This article effectively summarizes my thoughts on the future direction of Bitcoin, Ethereum and cryptocurrencies in general and should be understandable to anyone with moderate intelligence in explaining how it works (technologically and economically).
I personally consider certain cryptocurrencies (not Bitcoin) to be a safer mid-long term investment than many stocks.
Bitcoin is a cryptocurrency. Cryptocurrencies are a type of distributed ledger technology. Distributed ledger technology is basically a ledger of transactions and records that is stored on multiple computers worldwide. These computers have identical copies of the ledger and their purpose is to continuously verify the contents of the ledger. They all do this simultaneously and must agree on the same final copy of the ledger for it to exist (otherwise it will split into two different ledgers; a process called forking).
There is an usual incentive mechanism in place to do this (and ensure consistency plus a singular ledger); often the computers process the ledger and are rewarded payouts in the form of that ledgers token.
In Bitcoin's case, Bitcoin is a ledger of send-receive transactions on the Bitcoin network conducted in the currency unit "Bitcoin" (BTC). There are computers which run specific software to verify the Bitcoin network and the probability of any computer processing the Bitcoin ledger receiving a payout in BTC is proportional to the effort that computer puts into verifying the network (relative to all other computers also processing the Bitcoin ledger). This process of generating and rewarding new Bitcoin is referred to as 'mining'.
Any computer globally can be setup to mine Bitcoin provided they download the software to do so and are willing to store a record of the Bitcoin ledger.
As a result Bitcoin has no sovereign entity backing it. It's distribution of mining is global (however there is a large concentration of computing power in China where large Bitcoin mining factories exist). Thus even though it has no sovereign backing, it can still represent a geopolitical interest. Bitcoin in this instance benefits China where it is mostly generated.
Bitcoin is similar to gold in that the vast majority of it's market cap is completely speculative. It is fair to say it has almost no intrinsic value. The appeal to it's proponents is that it can act as a form of digital gold. The valuation of Bitcoin is mostly speculative (I'd say 99%).
Because Bitcoin is a publicly viewable ledger, it is not anonymous or private (in spite of the misinformation out there). There are methods to obscure the transaction but these require third party solutions.
It was these third party solutions which were used by black market services such as the Silk Road (a dark web market) back in 2012 and 2013 which brought fiat currency into Bitcoin's ecosystem and raised it's fiat valuation.
As the value of Bitcoin rose, more companies started seeing the potential for speculative trading and non-speculative use of Bitcoin as a currency and took the plunge opening up websites and services which accepted fiat for conversion to Bitcoin (and increasingly now Ethereum and a handful of other cryptocurrencies). The increase in these fiat-gateways acted as the liquidity and value provider for cryptocurrencies. They do not hold any purchased cryptocurrency unless you store it on them. They are the closest thing to Banks.
You can either store Bitcoin (or other cryptocurrencies) on a cryptocurrency website as described where it is held in their cryptocurrency wallet or you could transfer and store it in a private wallet.
Whilst it is true that Bitcoin and many cryptocurrencies carry no significant intrinsic value, since 2015 we have seen the emergence of distributed ledger technology beyond cryptocurrencies are really platforms with specific purposes that whilst still currently mainly speculative will likely evolve to carry real significant intrinsic value.
I've written two entire series of articles on the subject. Of relevance are these articles:
I'm currently a big believer in Ethereum (ETH) and Particl (PART) which satisfy my criteria for admittedly high risk:high reward investment grade cryptocurrencies. Ethereum has already proved to be profitable.
The broader impact of distributed ledger technology will be increased independence from fiat currency; I believe weaker fiat currencies will give way to strong cryptocurrencies and this will force weaker governments to react; they will either pursue an isolationist agenda to their own longer term detriment or embrace it to improve local governance and thus economy.
Given the nature and ability to built governance and voting mechanisms (including many other things) into the distributed ledger technology itself, I believe the longer term impact of distributed ledger technology will be a blurring of national and international borders, treaties and laws. From a governance and auditing viewpoint, distributed ledger technology if correctly utilized will increase government/corporate transparency and reduce corruption.
There are currently 1300+ cryptocurrencies listed (source coinmarketcap: https://coinmarketcap.com/all/views/all/). I believe approximately 20-50 have long term viability and the majority share will converge on 5 maximum.
Unless Bitcoin (BTC) solves issues with it's geographical mining centralisation (mostly localized to China), governance (no on-ledger voting mechanisms, decisions are governed by a small cartel; an oligarchy) and scaling (the number of transactions per second it handles is very poor and is unlikely to increase), then I do not see it becoming the dominant cryptocurrency in the long run. It will lose out to solutions which implement transaction scalability, on-ledger governance and achieve true geopolitical decentralization.
You should research proof of stake. It is a means of verifying a distributed ledger where likelihood of receiving payouts is proportional to how many of the ledgers tokens you already hold (these tokens act like virtual processing power). Certain distributed ledger technologies e.g. Particl (PART) already utilize this which means anyone holding their PART tokens on a private wallet receives the equivalent of interest (currently 5% PA) for leaving their computer switched on. Ethereum (ETH) is switching to proof of stake in 2018 which means I'll be able to hopefully earn interest on that too.
When the larger public understands proof of stake (and distributed ledger technology is better understood, more mainstream), I think we will see a shift from institutional investors and mainstream savers from traditional savings accounts into the most successful and largest proof of stake currencies since they will provide a safe, reliable, regular return and the earliest adopters will see significant long term appreciation in the token price. Ethereum is currently priming to be the proof of stake solution.
You can always follow my comment history on reddit at https://np.reddit.com/usejoskye/comments/. I have a good reputation in this community and I've made some astute observations and good calls. For reference, as of writing (23rd Nov 2017) I'm overall up 2100% on principle since I started in July 2016. That's not as great as some of the experienced traders (I've admittedly made mistakes along the way) but overall I know what I'm doing and I have a good understanding of this area so if you need any advice or want anyone to talk to on the subject, I'm happy to offer informal advice with the understanding that losses are possible, due diligence is advised and seeking multiple independent reputable sources.
If you develop an interest in trading and investing in cryptocurrencies, gateways websites like coinbase and [Bittrex] (www.bittrex.com). Coinbase allows you to purchase the top cryptocurrencies (Bitcoin and Ethereum) directly with USD, GBP or Euro. Bittrex is a large exchange where the majority of altcoins (a term for any cryptocurrency which isn't Bitcoin) can be bought or sold. You will need both currently to truly trade cryptocurrency. There are many alternative platforms internationally offering similar trading services but I do not have sufficient experience with them to comment and my selection should not be seen as a preferential endorsement in anyway.
I hope this helps. With the exception of my disclosure on profits, I don't mind you sharing this analysis with any interested parties. You should read the guides linked, they pretty much outline the future of commerce for me.
Further articles in this series:
"The intelligent investors guide to cryptocurrency"
Full disclosure/Disclaimer: As of posting I am long Particl (PART), Ethereum (ETH), Wetrust (TRST), Augur (REP), OmiseGo (OMG) Factom (FCT) and Iconomi (ICN). All the opinions expressed are my own. I cannot guarantee gains; losses are sustainable; do your own financial research and make your decisions responsibly. All prices and values given are as of time of writing (November 2017).
the "this box reduces greenhouse gas emissions every month" box in front of Ponderosa is actually UBC's very own bitcoin mining "factory". They have the latest bitcoin miners running (rumour has it that the total hashing power is about 500th/s.) it's a top secret collaboration project between the department of economics and engineering, led by the mastermind gateman. the reason why they claim that it's some green emission reducing box is because so they can trick the government into providing it with free/discounted electricity.
First they announce it and say people with bitcoins will get as many x2 coins, everyone rushes to buy bitcoin increasing the price and perceived value, then 1 week before they turn it down and won’t release x2 anymore. Now the value of a bitcoin is artificially inflated, bitcoin mining factories can comfortably make millions daily by slowly dumping bitcoins at a much higher value. 100% modern world scam controlled by the ones with the money (big bitcoin investors and mining factories)
Factory Setup. Bitcoin mining factories are set up to dissipate as much power as possible. As we mentioned before, mining is basically the conversion of electrical power into heat. For a one BTC / day mining operation, you’ll need to dissipate 4170 kilowatts 24×7 in order to maintain room temperature. Mining Factory was developed by early adopters and innovative thinkers. We sell hand-crafted cryptocurrency mining rigs with competitive hashpower. Mining Factory aims to show the people of South Africa that Bitcoin mining is actually a feasible business and provides an effortless passive income. bitcoin mining factory free download - Bitcoin Mining, Bitcoin Cloud Mining Script , Bitcoin Mining Game Premium, and many more programs As long as the bitcoin network exists we anticipate mining to be profitable. We’ve developed a process to get an edge in the market. Coinmint has already signed an agreement with the New York Power Authority and the New York Independent Systems Operator, for access to 435 MW of clean hydroelectric power from the St. Lawrence River. Bitminer Factory is dedicated to the long-term success of Bitcoin. We strive to turn professional investors into protagonists of the fast-approaching token economy, by offering capital market experience, infrastructure expertise, and a true passion for state-of-the-art mining.
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