The U.S.-China Trading War Influences Cryptocurrency World, Bitmain Suffers Most

Not long ago, we discussed that Bitcoin was in danger, since Chinese authority was able to attack it any time. The US decided to keep up with opponents and stroke the crypto world of China, namely crypto asset industry.

These two countries are currently in a state of trading conflict, introducing tariffs on goods traded with each other. In June the USA changed the classification of ASIC miner, called Antminer S9, in a way that Chinese miners can be at a loss. That month the “electrical machinery apparatus”, the given category to the ASICs, had a 2.6% tariff.

Later in August, the tariff raised by 25 per cent. At the moment, Chinese mining producers deal with the fee of 27.6 per cent on their US shipments.This action has a colossal impact on Bitmain, the company based in Beijing and being the biggest Chinese mining hardware maker.

Bitmain tried to cope with the pressure by filing for a Hong Kong IPO. It could reportedly rise $3 billion. The company’s filing also mentioned the fact that about 62.8% revenue came from overseas in first half of 2018, though there was no comment on how many sales had come from the US.

The crisis came to Bitmain at a very bad time. IPO filing showed the company’s turnover dropped in second quarter of 2018 drastically, losing about $400 million in compare to $1.1 billion net profit in the first quarter.

One of the analysts, Mark Li, reckons the US tariffs aim at making Chinese hardware less competitive than opponent ones produced in other countries. He also added that Bitmain’s boardship is more aware of technology arms race, where the company is falling behind

The cold trading war between China and States can last for a long time, yet no one is sure how much loss or profit it can bring, we are only able to watch and wait. Now we want to remind you

Mining Complexity: What It Is and Where It Will Get

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The Owner of the Electric Car Tesla Decided to Test the Autopilot on His Wife

The reliability of the autopilot from the luxury electric Tesla cars manufacturer often becomes a subject for discussion in the media recently.

We want tо remind you:

A New Model 3 Tesla Was Involved in a Deadly Crash in Florida

One of Tesla car owners posted a video on Youtube (now it’s already removed) of his own testing of the autonomous emergency braking system. Though there is something not quite ordinary in this test – the car owner used his wife as an obstacle. She had to go out on the road directly in front of the car. At this time, her husband was driving a Tesla at a speed of about 40 kilometers per hour and kept his foot on the brake.

Source: https://www.autocentre.ua/

It is worth noting that the experimenter received a lot of angry comments. Many users criticized the actions of the young man, some even advised him to switch places with his wife.

In his defense, the owner of Tesla said that, firstly, his wife volunteered to be a pedestrian and did not want to drive, and secondly, this test took place at ridiculous speed and on a closed part of the road. For this reason, he had complete control over the situation and there was no danger to the health or life of his wife.

Well, talking about the results of this test, the autopilot system did not recognize the woman when she was walking or running along the road. She only became visible for Tesla software, when she stood on its way or near the car.

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Bitcoin Miners Are Fooling Around While Earning Tens of Millions of Dollars

According to the recent research made by Diar: Bitcoin, Ethereum, Litecoin, and Dash miners made more than $18 billion without any transaction.

Let us start with the two most famous cryptocurrency – Bitcoin and Ethereum. These two coins were the most popular proof-of-work blockchains, however, they processed the fewest amount of empty blocks, the report shows that Ethereum paid out $65 million in rewards for such blocks in 2017.

Bitcoin Cash, in his turn, has created more than 3300 empty blocks since the end of summer of 2017. It means that monthly about $5 million was gained across all networks. Moreover, Bitcoin Cash miners have earned more than $1 billion since its for on November 15, 2018.

Litecoin is a fast cryptocurrency, and due to its network underutilization, the coin has the most empty blocks. Litecoin miners are mostly hunting for lite blocks, thus its block time is considered to be about 2 minutes. Indeed, the time varies from the difficulty of mining, but in overall every 2 mins, the block is created.

The report suggests miners “fooling around”, because a lack of transactions rises up their reward by far less than gaining the block reward. Let us look on the example.

Block 1586699 which was processed on Tuesday has only transaction less than 1 LTC, nonetheless, the block paid out the mining reward of 25 LTC. It means that the miner has made over $1000 to process less than $50. There is another example, block 1586709, the miner has earned more than $1000 for processing $0 in transactions. Unfortunately, there is no such a thing in the fiat world.

We remind you

How to Get Bitcoin And How Profitable is Mining in 2019

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Bitmain Launches A New Chip For Miners While Jihan Wu Is Leaving His Post: What Is Real Here?

Bitmain is a Chinese-based mining giant which produces equipment for all types of mining activity. There have recently been rumours that Jihan Wu, the CEO of Bitmain, leaves the company to create its own a BCH-focused crypto mining firm while the company is launching a new updated product. So what is true here?

A new efficient crypto mining chip

According to the official press release, Bitmain launches the BM1397. This chip is supposed to be much more powerful than its predecessor, the efficiency difference accounts for 38%. This is a breakthrough in mining industry, the product uses just 30 joules per terrahash. It means that this chip replace the existing hashpower as 33 terrahash can be powered by just 1 kilowatt of power.

Source: blog.bitmain.com

In terms of terrahash capability, the model will be more powerful than existing ones, as a result, a user will have to pay more for electricity. A new generation of mining chips is already real.

Jihan Wu and rumours of his quitting

The person who started the rumours is Dovey Wan, founding partner of Primitive Ventures. She wrote in his Twitter that Jihan Wu will probably leave his position to build a new company which is a spin of Bitmain focusing on BCH.

https://twitter.com/DoveyWan/status/1100002158261428225

The company has not released any statements yet. Though we understand that Bitmain has been suffering a lot since the beginning of bearish market, not to mention U.S.-China trading war which has a great influence on the company. The company has also closed its two offices in Israel and the Netherlands.

We remind you

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

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CryptoMining.Farm Scam: 30 Victims Lost $1.34 Million

Thirty people have filed complaints to Thailand’s Technology Crime Suppression Division stating that they were victims of crypto mining scam, they allegedly lost 42 million baht ($1.34 million). The police thinks that the amount of victims can be bigger.

According to the victims’ words, the leaders of the scam convinced them to invest money into CryptoMining.Farm, a blockchain-mining website. One anonymous victim said to the Bangkok Post that one of the leaders promised investor an impossibly high return – 70% a year.

The victims signed contracts when they entered the website, the documents said that a customer may withdraw money at any time he/she wanted without any additional condition. However, the situation has changed since August. The victim stated that:

“From August the owner began imposing conditions for withdrawing the money. Then at the start of this month, the site announced it would start paying back investors in 84 installments which would take over seven years to complete. The payments were supposed to be made in foreign currencies [which] is not permitted by Thai laws.”

After a preliminary investigation, the police is sure that not 30, but 140 people became victims of the scam. Moreover, it can be related to a big scandal which happened in August 2018, when a popular Thai actor and his siblings stole about 797 million baht ($25.5 million).

According to the Bangkok Post, the company has two official offices in Bangkok and Chiang Mai, which may make the victims think that the company’s operations are legal.

Thailand treats digital money with caution and tries to regulate it. The Thai Ministry of Finance even issued a document last year where all the country’s cryptocurrency activities were regulated, including the taxation of participants of crypto market.

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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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