Is Bitmain Really Dying, or How Much Money Was Lost in 2018?

The year 2018, especially its second part, has not been particularly simple for the crypto giant Bitmain. After the unsuccessful IPO, there came Bitcoin Cash hash wars which also negatively influenced the earnings of Bitmain.

According to the data provided by a crypto enthusiast on Twitter, the company might have suffered around $740 million losses in Q3 of 2018, making it the worst quarter in the history of Bitmain.

Other specialists are quite sure that the numbers could be even higher. The epic with Bitcoin Cash, low amount of customers, the crypto market price collapse exhausted Bitmain. Will it be able to recover? We’ll have to wait and see.

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Japanese Giant GMO Internet Lost ¥1.3 Billion in 2018: Report

One of the biggest Internet companies in the world, Japan-based GMO Internet Inc., posted a report on its financial performance. An operating loss accounts for ¥1.3 billion (~$11.75 million) in 2018.

GMO’s mining business

According to the report, mining business fared very poorly in 2018 which resulted in great losses. The company explained that the business did not increase as expected due to the collapse of cryptocurrency market in Q4. The report provides  the table where we can see the real revenue and real loss of the company. The data provided below does not include “extraordinary losses” of approximately $319.2 million.

Source: GMO Fiscal Report 2018

Alongside, Internet giant announced that it would implement a policy change regarding to their mining business model. The company will sell its bitcoin mining assets at cheaper rates to compensate for a portion of its annual losses.

Moreover, GMO plans to relocate mining centers to the regions where power supply is cheaper. The centers allegedly will be somewhere in Northern Europe.

GMO’s Bitcoin exchange

Source: GMO Fiscal Report 2018

According to the report, the company’s quarter-revenue has fallen by 66.7%, even though the company annually posts about its 7% profit from its crypto exchange GMOCoin.

In 2018, GMOCoin recorded a net sales of ¥4.02 billion (~$36.33 million). In Q1, crypto exchange has lost about ¥76 million, yet, high sales of next quarters compensated them. The fall of cryptocurrency market has also played a significant role in GMO’s revenues. Each phase ended on a lower note than a previous one in terms of sales, while the profits remained marginal.

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Mozilla Firefox Is Working On Security To Adopt Crypto Mining and Fingerprinting Blockers

Mozilla Firefox has become the fastest and safest web browser in the world after a major upgrade in 2018. The browser has always been known for its flexibility and support for extensions, yet, it does not stop here. According to the report of Techdows, Firefox decided to pursue implementation of strong privacy tools, creating blockers for crypto mining and fingerprints.  

How did it all start?

At the end of August, 2018, Mozilla Firefox made a post in its blog stating that they would change the approach to the anti-tracking. To be more specific, they made a decision to improve load page performance.

In accordance with the study made by Ghostery, more than half of time required to open a page is spent to load third-party trackers. On this reason, Mozilla ran a test version of a feature that blocked trackers and other “harmful practices”, including cryptocurrency mining malware scripts, in Firefox Nightly with the possibility to make it automatically in Firefox 63.  

Keeping in mind that cross-site tracking protection may break all the websites in the browser, Mozilla decided to add features one by one and they go even further in Firefox 67.

What does Mozilla offer now?

First is the ability to block cryptocurrency miners. As we all know, operating systems are often affected by different mining malwares, like it happened with Linux system back in November, 2018. That is why, Mozilla takes measures to prevent it.

Second is blocking of fingerprinting. Identifying your unique device may not be as harmful as mining malwares, yet still it is better to use it as a privacy matter. Only generic information will be sent to the websites that you visit, and your hardware configuration will be harder to distinguish from others on the web.

The way these extensions will look in the browser is shown below:


Source: https://techdows.com/

In fact, Mozilla continues to do what other browsers have already started long ago.

Opera thought about how to protect users from miners in December, 2017, showing the world its beta version of a browser extension NoCoin that had an embedded anti-mining mode to protect users from hidden miners. Later, it turned to mobile version of the browser.

Google Chrome also launched extensions for protection from illegitimate mining and cryptocurrency theft in October, 2018.

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Ethereum Mining: Features, Pools and Prospects in 2019

Ethereum has became a real sensation in the cryptocurrency world, the launch of this platform has served as a catalyst in the development of the entire industry. In this article we will talk in detail about the mining of this cryptocurrency, as well as discuss its prospects in 2019.

1. General information about the Ethereum project

Ethereum is a platform where you can create other decentralized projects. ETH is a coin of the same name which is needed for working with the platform.

The well-known programmer, Vitalik Buterin, has been at the origins of the Ethereum, he still takes an active part in the life of the project, but most of the tasks are performed by a large staff. The total capitalization of the project, as of beginning of 2019, is just over $11 billion. Ethereum firmly consolidated on the third place in the global Coinmarketcap rating.

2. ETH mining algorithm

The growing popularity of the coin have forced many miners to transfer their computing power into Ethereum blockchain. The unlimited emission is one of the features of Ether. This is a both plus and minus of the project: on the one hand, miners, potentially, can endlessly mine new coins, but on the other hand, such an approach can lead to inflation and devaluation of coins.

Now, the confirmation in the network is made by using PoW algorithm (Proof of Work), which allows you to mine coins in the usual way, by providing the network with your computing power. But the development team has worked quite a while on transferring the network to the PoS (Proof of Stake). According to Buterin, this innovation will reduce the inflation of the coin by several times. But all the people who are now engaged in the ETH mining will be forced to reconfigure their equipment for mining other coins.

3. What do you need for ETH mining?

  • Computing equipment, you can use the power of the CPU on a PC, but it is better to have several video cards (ideally, DDR 5 memory).
  • Uninterrupted access to the Internet, whereby high speed is not needed, a good ping is more important.
  • A good and reliable pool for mining, as the mining of ETH cryptocurrency in solo mode is absolutely unpromising for the vast majority of people. Only real giants who are engaged in mining on an industrial scale can afford their own mining, but even they often prefer to work in a pool.
  • A wallet that supports ETH, fortunately, there are so many of them.
  • Proper equipment maintenance and overheating protection. For that, you need to carefully consider the system of ventilation and space cooling.

4. Pools for mining

Choosing the right pool is very important. Below you find a list of the most popular and relevant pools of the second half of 2018:

  • Minergate works not only with Ethereum. It is one of the most popular pools in the world. Best of all it works with nvidia graphics cards. The resource has a simple and intuitive interface, which is clear for any average person.
  • NiceHash is also a multi-currency pool. Mining software is very easy to set up. The software automatically selects the best algorithm, based on the features of the video card or CPU.
  • Ethereumpool. From the name it is already clear that this pool is focused exclusively on Ethereum. It works relatively recently, but its computing power already reaches almost 2% of the total power.
  • WeiPool. Another young pool that can impress with small commissions (1.5%) and a user-friendly interface.
  • ETH Supernova. This pool is quite famous for many users, but recently it has begun to operate with Ethereum. The issue of reliability and safety comes first. The pool has been operating for more than one year and during this time has managed to gain the confidence of the miners.

5. Conclusion

Now, Ether is not having its finest hour, the coin rate has fallen to the psychological mark of $108. The profitability of Ethereum mining significantly decreased in 2018, but by and large, it can be said about almost any cryptocurrency.

It is important to remember that fundamentally nothing has changed and Ethereum is still the most technologically advanced platform. ETH mining should not be considered as a short-term opportunity to earn money, this should be treated as an investment in the future. Now the development team is actively working on elimination of the system shortcomings. Taking into account this information, we can make a conclusion that the project’s chances of a bright future are quite high.

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Bitfury Launches Open-Source Music Platform Based on Blockchain

A UK-based mining firm, The Bitfury Group, has announced that it will launch a music platform which operates on the blockchain technology. This idea is not new, as  many other tech companies also tried to do such a platform.

The platform, named SurroundTM, will become a helpful tool for every musician, as it plans to create a new environment where it is much easier to manage the musicians’ affairs. In particular, the platform will simplify the process of transfer of copyright assets, the user will be able to see his/her output. Bitfury believes that SurroundTM will implement blockchain into music industry much further than anything ever before.

The CEO of the Bitfury, Stefan Schulz, commented:

“There is a very strong momentum for an open entertainment-related blockchain where market participants themselves would be participating in the market venue, not only from a transactional point of view.”

The company has offices in Europe, yet, it plans to expand the service and  establish offices in Tokyo, LA, Moscow, and Seoul. It also seeks the possibilities of providing a digital system for both monetizing and sharing intellectual property.

We remind you:

WordPress Launches Beta Version of Publishing Blockchain Platform

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A Video Gamer Received a 20-Bitcoin Donation on Twitch

A video game player under the nickname Sick Nerd received a donation from an anonym in the amount of 20 Bitcoins when playing the game RuneScape and streaming it on the platform Twitch.

Sick Nerd mentioned this on his Twitter:

At first, the streamer received only 4 BTC. He didn’t take it seriously right away, but kept receiving new donations in cryptocurrency. Overall, Sick Nerd became richer by over 20 BTC during his streaming session.

This is the largest crypto donation sent to a video game player ever, and, of course, the largest donation ever received by Sick Nerd (more than 70 thousand dollars).

Cryptocurrency keeps making its way into every sphere of human activity, and video games are no exception. We remind you:

Cryptocurrency Games: Bitcoin Game Review

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How to Get Bitcoin And How Profitable is Mining in 2019

Appearance of Bitcoin has marked the beginning of a new era in development and dissemination of money. 2018 became a crucial point for cryptocurrencies. In this article we will talk more about Bitcoin mining, find out what is needed and how to earn from it.

1. What is Bitcoin mining?

BTC mining is carried out with the help of specialized computer equipment, so-called Bitcoin farms. In order to open a new block, the miners resolve complex mathematical problems, for which the network rewards them with X number of coins.

Bitcoin algorithm is designed in such way, that every 210 thousand blocks the reward decreases exactly by twice. At the very beginning, miners received 50 coins for each new block, then this number was reduced to 25, and now this value is 12.5 BTC.

2. What are the ways to get Bitcoins?

Bitcoin is the most popular cryptocurrency in the world, many people would like to become its lucky owner. Here are some ways to do it:

– Bitcoin faucets. This is an absolutely free method to get coins. It lies in performing various simple tasks, such as decoding and entering captchas, clicks on advertising links, browsing advertisers` websites, etc. This work is absolutely simple, but it requires  patience. We want to remind you, that reward for such work is purely tokenistic and it is not possible to earn decent money from Bitcoin faucets.

– Mining. This method means investment into equipment. It can be completely different: you can organize home mining on graphics cards spending 2-3 thousand US dollars on it, or you can build a huge data center by investing hundreds of millions of US dollars into this enterprise. Thus the income should be directly proportional to the initial investment. Unfortunately, today cryptocurrency is so volatile that it is impossible to calculate how much profit Bitcoin mining will bring in 2019.

– Salary in crypto. Nowadays, the fact of getting salary in cryptocurrency is no longer supernatural. Yes, it is still uncommon, but it is far from single instance.

– Purchase. The most obvious way to get cryptocurrency is to purchase it. Nowadays, you can buy Bitcoin using a large number of services (exchanges, currency exchange offices, individuals, etc.).

3. What is needed in order to start BTC home mining ?

In general, this is rather a broad theme, but in this article we will only briefly run through the main points, without which home mining is impossible. So you need to:

  1. Buy equipment for mining (graphic cards or ASIC miners).
  2. Create a Bitcoin wallet. Without this it will be impossible to get coins.
  3. Select a mining pool. Nowadays the hash rate (total computing power of all the miners) of Bitcoin network is really huge, that is why the algorithm constantly increases its overall complexity. This is why it will be very difficult for one miner to open a new block even with sufficiently powerful equipment.
  4. Install a special software for mining.
  5. Follow the process and, if necessary, repair or replace the components.

You should also remember that mining equipment (especially ASIC-miners) make a noise and heat up while working, therefore installment of farms in a residential house is not a good idea.

4. What is cloud mining?

There is another way to start mining Bitcoins. This is a cloud mining. It does not involve physical contact of person with equipment. A user buys a certain amount of computing power at a large data center and immediately starts to get income from it. So, how is it better to mine Bitcoin, on your own or using cloud? Everyone will find his own answer. Definitely, profit of home mining will be higher, but cloud mining will ease your pain associated with farm maintenance. Someone is willing to pay for his or her comfort, but another one would prefer to do everything by independently, therefore, everyone decides on one’s own.

5. Which video adapters work best for Bitcoin mining?

Each particular video adapter has its own payback period, which directly depends on what is happening on the cryptocurrency market. 2019 has just started, so here is the list of the most cost-effective video adapters for BTC mining in 2018:

  • NVIDIA GTX 1080 TI.
  • NVIDIA GTX 1070 TI.
  • NVIDIA GTX 1070.
  • RADEON VEGA FRONTIER EDITION.
  • RADEON RX VEGA 56.
  • RADEON MINING RX 470.
  • NVIDIA P106-100 (GEFORCE GTX 1060).

6. How to calculate Bitcoin mining correctly?

Bitcoin rate is very volatile, network hash rate is also unstable, so, it is almost impossible to calculate exactly the mining profit. But there are convenient calculators which will help you to find out at least approximate numbers.

7. What does BTC rate depend on and what will happen next?

Bitcoin price varies in the trading range of USD 4000.00. Bitcoin emission is limited and it amounts to 21 million coins. Over 17 million ones have already been mined. But it is necessary to recall a double decrease in the remuneration for a found block, which occurs every 4 years. It is easy to calculate that over the next 30 years, more than 99% of all coins will be mined, and the remaining 1% will be mined over the next 100 years.

According to the laws of economics, this feature makes Bitcoin a very valuable and, most importantly, a limited resource. Now Bitcoin capitalization is about 70 billion US dollars, and it is absolutely a wasted number from the world scale perspective. Many market experts predict a great future for this coin, for example, John McAfee believes that 1 Bitcoin by December 2020 will be USD 1,000,000.00.

If to take a look at Bitcoin chart for the entire history, one can see approximately the same picture of what is happening: rapid growth, prolonged correction, stagnation after which the cycle repeats. Moreover, every time during the correction, the media “buries” Bitcoin, and the coin after some time again renews its previous records.

8. Conclusion

Bitcoin mining, as of the beginning of 2019, is not a very profit-making enterprise without major initial investment. Bitcoin mining should be considered more like an investment for the future, when BTC becomes a very scarce asset and its value can literally skyrocket. Well, we cannot do anything but wait and actively monitor the developments.

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