Bitcoin Mining Industry Contracting: Bitmain Firing More Than Half Its Workforce; GMO Internet Shuts Down Mining Division
https://preview.redd.it/shaxz99r3v621.png?width=690&format=png&auto=webp&s=7b45303f9a9cb5901f9d7cc33b09eddd0525b853 https://cryptoiq.co/bitcoin-mining-industry-contracting-bitmain-firing-more-than-half-its-workforce-gmo-internet-shuts-down-mining-division/ The Bitcoin mining industry is seeing blood in the streets because the Bitcoin mining hash rate has declined from peaks near 60 EH/s to around 40 EH/s today, driven by Bitcoin’s decline from $20,000 to less than $4,000 in a year. This means 20 EH/s of Bitcoin mining equipment has been taken offline due to lack of profitability. Bitcoin mining rig manufacturers have large quantities of rigs they cannot sell, bringing the mining arms race of constantly improving technology to an abrupt halt. Bitmain, the biggest Bitcoin mining rig manufacturer, has gone from planning an initial public offering (IPO) on the Hong Kong Stock Exchange to slashing most of its workforce. GMO Internet, an up and coming manufacturer that developed 7 nm rigs faster than anyone else, has put up the white flag of surrender and left the mining industry. It is clear that the IPO for Bitmain will not be happening. This company is struggling for survival. Essentially, Bitmain is laying off all employees who are not essential and getting rid of auxiliary divisions. Entire departments will be closed. A Bitmain staff member said ““It’s affirmative. The layoff will start next week and involves more than 50 percent of the entire Bitmain’s headcount” while another staff member said, “Some departments have to be let go entirely.” It is likely that the blockchain and artificial intelligence (AI) departments at Bitmain will be most severely impacted since Bitmain’s true business is manufacturing mining rigs, and anything which is not yielding profits will be the first to go. Meanwhile, up and coming mining rig manufacturer GMO Internet is completely getting rid of its mining manufacturing business. It will be reporting an “extraordinary” total loss of JPY 35.5 billion ($319 million) from the mining business. GMO Internet will no longer manufacture, develop, or sell mining rigs. It will continue an in-house mining operation with its remaining rigs, and this might be profitable even in bad market conditions since they have highly efficient 7 nm rigs. The fact that GMO Internet has a surplus of 7 nm rigs and cannot even sell them shows how bad the mining industry has gotten. Miners cannot afford to buy any more rigs, no matter how cutting edge the rigs are, since the entire mining business model has been rekt. The only way for Bitcoin mining to work, even during favorable mining conditions, is to run rigs 24/7 without interruption. Then miners buy more rigs from their slim profit margin. More than 30 percent of all existing rigs being turned off due to lack of profitability indicates most mining businesses are taking big losses rather than profits. Simply, miners will not be buying new rigs until the 20 EH/s of rigs that have been turned off can be turned back on, and Bitcoin’s price will have to double to make that happen.
@Reuters: As #bitcoin world wobbles, mining rig company plans world’s biggest bitcoin-focused initial public offering to date https://t.co/uGTTMhfKRP by Alun John @JennHughes13 More from #ReutersFintech: https://t.co/NdwMyxVGds https://t.co/O24jZooeuA
Ultimate glossary of crypto currency terms, acronyms and abbreviations
Written bySatoshisAngels Published by read.cash On August 5th 2020, Satoshi’s Angels hosted an AMA for CoinEx on “How BCH and Avalanche Are Bringing Financial Freedom to 6 Billion People” on a Chinese platform Bihu. During the 100-minute event, Haipo Yang of ViaBTC and CoinEx, and Emin Gun Sirer of AVA Labs shared their in-depth views on such topics as different consensus mechanisms, community governance, IPFS, Defi. And Haipo explained why he wants to fork BCH. This is the full text. You can check out the full AMA here (mostly in Chinese with some English translation). https://preview.redd.it/x790bw58axf51.png?width=1920&format=png&auto=webp&s=03c8af942f8f14d98d5dd693adf9e2a50448d61d Cindy Wang (Satoshi’s Angels): There are news saying that you are to fork BCH. Is it a marketing makeover? Are you serious about it? Haipo Yang: It’s definitely not a marketing makeover. But the details are not decided yet. Over the past three years, the BCH community has gone through multiple discussions from reducing block time, changing mining algorithms, adding smart contracts, etc. But none of these disputes have been well settled. BCH is a big failure in terms of governance. A lack of good governance has made it fall in disorder. It is too decentralized to make progress. You may know that the first BCH block was mined by ViaBTC. And we gave a lot of support to it indeed. But we didn’t dominate the fork. The Chinese community in particular thought I had a lot of influence, but it was not true. I think the whole community is very dissatisfied with Bitcoin ABC, but it is difficult to replace them or change the status quo. So I am thinking of creating a new branch of BCH. The idea is still in early stage. I welcome anyone interested to participate and discuss it with me. Wang: Professor Emin, what’s your attitude to fork? Do you think it’s a good timing to fork BCH? Emin Gun Sirer: I am a big fan of BCH. It adheres to the original vision of Satoshi Nakamoto. I like the technical roadmap of BCH. But just like what Haipo mentioned, BCH lacks a good governance mechanism. There are always something that can cause BCH community to divide itself. But I think it’s not enough to just have a good governance mechanism. There are many good proposals in the community but failed to be adopted in the end. I think BCH needs social leadership to encourage discussion when there are new proposals. Wang: We are all curious to know How Avalanche got its name? I know that Avalanche doesn’t mean well in Chinese. But in English, it’s a very powerful word. Avalanche represents a series of algorithms piling together like a mountain. When decisions slowly form, the ball (nodes in the network) on top of the mountain starts going down the hill on one side, and it gets bigger and bigger, and like an avalanche and it becomes unstoppable, making the transaction final. Wang: Prof. Emin, I know that you are a big blocker. Have you ever considered implementing Avalanche based on BCH? Why create another chain? Sirer: Of course I considered that. Satoshi Nakamoto consensus is wonderful, but the proof-of-work mechanism and Nakamoto consensus base protocols have some shortcomings, such as network latency, and it is hard to scale. Avalanche, instead, is totally different, and is the new biggest breakthrough in the past 45 years. It is flexible, fast, and scalable. I’d love to implement BCH on top of avalanche in the future, to make BCH even better by making 0-conf transactions much more secure. Wang: As an old miner, why did CoinEx Chain choose to “abandon” POW, and turn to POS mechanism? Haipo: Both POW and POS consensus algorithms have their own advantages. POW is not just a consensus algorithm, but also a more transparent and open distribution method of digital currency. Anyone can participate in it through mining. POW is fairer. For a POS-based network, participants must have coins. For example, you need to invest ICO projects to obtain coins. But developers can get a lot of coins almost for free. In addition, POW is more open. Anyone can participate without holding tokens. For example, as long as you have a computer and mining rigs, you can participate in mining. Openness and fairness are two great features of POW. POS is more advanced, safe and efficient. POS is jointly maintained by the token holders, and there is no problem of 51% attacks. Those who hold tokens are more inclined to protect the network than to destroy the network for their own interests. To disrupt the network, you need to buy at least two-thirds of the token, which is very difficult to achieve. And when you actually hold so many coins, it’s barely possible for you to destroy the network. POW has the problem of 51% attack. For example, ETC just suffered the 51% attack on August 3. And the cost to do that is very low. It can be reorganized with only tens of thousands of dollars. This is also a defect of POW. In addition, in terms of TPS and block speed, POS can achieve second-level speed and higher TPS. Therefore, CoinEx Chain chose POS because it can bring a faster transaction experience. This is very important for decentralized exchanges. Both POW and POS have their own advantages. It’s a matter of personal choice. When choosing a consensus mechanism, the choice must be made according to the characteristics of the specific project. https://preview.redd.it/upbayijaaxf51.jpg?width=1055&format=pjpg&auto=webp&s=703e3b6a493a76f86bc9045e784d174bde9d3c42 Wang: Ethereum is switching to ETH 2.0. If they succeed, do you think it will lead the next bull market? Sirer: If Ethereum 2.0 can be realized, it must be a huge success. But I doubt it can be launched anytime soon considering that it has been constantly delayed. And even if it comes out, I am not so sure if it will address the core scaling problem. And the main technology in Ethereum 2.0 is sharding. Sharding technology divides the Ethereum networks into small parallel groups, but I think what will happen is everyone wants to be in the same “shard” so the sharding advantages might not be realizable in Ethereum 2.0. Avalanche supports Ethereum’s virtual machine, and Avalanche can realize 1 second level confirmation, while with sharding finalizing confirmation takes 5–6 seconds at best. Avalanche approach to make Ethereum scale is superior to Ethereum 2.0. There are many big players behind Ethereum 2.0, and I wish them success. But I believe that Avalanche will be the fastest and best Smart Contract platform in the crypto space, and it is compatible with Ethereum. Wang: Why is Avalanche a real breakthrough？ Sirer: Avalanche is fundamentally different from previous consensus mechanisms. It’s very fast with TPS surpasses 6500, which is three times that of VISA. Six confirmations can be achieved in one second. Compared with the POW mechanism of Bitcoin and Bitcoin Cash, Avalanche’s participation threshold is very low. It allows multiple virtual machines to be built on the Avalanche protocol. Avalanche is not created to compete with Bitcoin or fiat currencies such as the US dollar and RMB. It’s not made to compete with Ethereum, which is defined as the “world’s computer”. Avalanche is positioned to be an asset issuance platform to tokenize assets in the real world. Wang: How do you rank the importance of community, development, governance, and technology to a public chain? Sirer: These four are like the legs of a table. Every foot is very important. The table cannot stand without strong support. A good community needs to be open to welcome developers and people. Good governance is especially important, to figure out what users need and respect their voices. Development needs to be decentralized. Avalanche has developers all over the world. And it has big companies building on top of Avalanche. Yang: From a long-term perspective, I think governance is the most important thing, which is the same as running a company. In the long run, technology is not important. Blockchain technology is developed based on an open source softwares that are free to the community. Community is also not the most important factor. I think the most important thing is governance. Decentralization is more about technical. For example, Bitcoin, through a decentralized network method, ensures the openness and transparency of data assets, and the data on the chain cannot be tampered with, ensuring that the total amount of coins has a fixed upper limit. But at the governance level, all coins are centralized at some degree. For example, BCH developers can decide to modify the protocol. In a sense, it is the same as managing a company. Historically, the reasons for the success and failure of companies all stem from bad governance. For example, Apple succeeded based on Steve Jobs’s charisma, leadership and the pursuit of user experience. When Jobs was kicked out, Apple suffered great losses. After Jobs returned, he made Apple great again. Issues behind Bitmain is also about governance. Simply put, governance requires leaders who have a longer-term vision and are more capable of coordinating and balancing the resources and interests of all parties to lead the community. In the blockchain world, many people focus on technology. In fact, technology is not enough to make great products. User experience is most important. Users don’t care about the blockchain technology itself, but more concerned about whether it is easy to use and whether it can solve my problem. We need to figure out how to deliver a product like Apple. The pursuit of user experience is also governance in nature. And governance itself lies in the soul of key leaders in the community. Realize tokenization of assets in. https://preview.redd.it/14jf1bvcaxf51.jpg?width=1082&format=pjpg&auto=webp&s=c312912142c38de986f42912086e205354162190 Wang: Speaking of asset tokenization, I would like to ask Haipo, do you think the market for assets on the chain is big? Yang: It must be very big. We need to see which assets can be tokenized. Assets that can be tokenized are standardized assets, sush as currencies and securities.
In terms of currency, Tether has issued over 10 billion U.S. dollars. Many people think that’s too much. But I think this market is underestimated. The market for stablecoins in the future must be hundreds of billions or even trillions, especially after the release of Facebook’s Libra. Even US dollar might be issued based on the blockchain in the future.
At present, the settlement of USD currency is through the SWIFT system. But the SWIFT system itself is only a clearing network, a messaging system, not a settlement network. It takes a long time for clearing and settlement, and it is not reliable. But both USDT and USDC can quickly realize cross-border transfers in seconds and realize asset delivery. Even sovereign currencies are likely to be issued on the blockchain. I believe RMB also has such a plan.
Equity and securities markets are the largest market. But they have strict requirements for market access.
Whether a stock is listed on A-shares or in the American markets, it’s hard to obtain them. I believe that the blockchain can completely release the demand through decentralization. It can allow any tiny company or even a project to issue, circulate and finance a token. There may be only tens of thousands of stocks currently traded globally. There are also tens of thousands of tokens in the crypto space. I believe that millions or more of assets will be traded and circulated in the future. This can only be realized through decentralized technology and organization. The market for assets tokenization will be huge. And at present, the entire blockchain technology is still very primitive. Bitcoin and Ethereum only have a few or a dozen TPS, which is far from meeting market demand. This is why CoinEx is committed to building a decentralized Dex public chain. Wang: Avalanche’s paper was first published on IPFS. What do you think of IPFS? Sirer: I personally like IPFS very much. It is a decentralized storage solution. Yang: There is no doubt that IPFS solves the problem of decentralized storage, and can be robust in the blockchain world, and can replace HPPT services. But there are still three problems:
IPFS is not for ordinary users. Everybody needs BCH and BTC, but only developers need IPFS, which is a relatively niche market;
IPFS is more expensive than traditional storage solutions, which further reduces its practicality. In order to achieve decentralization, more copies must be stored, and more hardware devices must be consumed. In the end, these costs will be on to users.
There may be compliance issues. If you use IPFS to store sensitive information, such as info from WikiLeaks, it may end up threatening national security. I doubt that decentralized storage and decentralized public chains can survive under the joint pressure of global governments.
The IPFS project solves certain problems. But from the perspective of application prospects, I am pessimistic. Wang: What do you think of Defi? Yang: I want to talk about the concept first. Broadly speaking, the entire blockchain industry is DeFi in nature. Blockchain is to realize the circulation of currency, equity, and asset value through decentralization. So in a broad sense, blockchain itself is DeFi. In a narrow sense, DeFi is a financial agreement based on smart contracts. DeFi, through smart contracts, can build applications more flexibly. For example, before we could only use Bitcoin to transfer and pay. Now with smart contracts, flexible functions such as lending, exchange, mortgage , etc. are available. The entire blockchain industry is gradually evolving under the conditions of DeFi. DeFi will definitely get greater development in the future. Sirer: I think Defi will definitely have a huge impact. DeFi is not only an innovation in the cryptocurrency field, but also an innovation in the financial field. Wall Street companies have stagnated for years with no innovation. Avalanche fits different DeFi needs, including performance and compliance. In the future, not only will Wall Street simply adopt DeFi, but DeFi will grow into a huge market that will eventually replace the traditional financial system. Questions from the community: 1. How does Avalanche integrate with DeFi? Sirer: At present, all DeFi applications on Avalanche have surpassed Ethereum. What can be achieved on Ethereum can be achieved on Avalanche with better user experience. We are currently connecting with popular DeFi projects such as Compound and MakerDao to add part of or all of their functions. At present, Avalanche is working on decentralized exchange (DEX). The current DEXs are limited by speed and performance but when they are built on top of Avalanche it will be real-time and very fast. 2. How many developers does BCH have? Yang: I think it does not matter how many developers there are. What matters is what should be developed. I watched Jobs’ video the other day, and it inspired me a lot. We are not piecing together technology to see what technology can do. It’s we figure out what we want first and then we use the technology we need. The entire blockchain community worship developers. Such as they call Vitalik “V God”. It’s not necessary to treat developers as wizards. Developers are programmers, and I myself is also a programmer. ViaBTC has a development team of over 100 people, including core members from Copernicus (a dev team formerly belonged to Bitmain). Technically we are very confident to build faster, stabler, and better user experience products.
RX5700 GPU mining rig vs ASIC miner A10 for Ethereum mining !?
https://preview.redd.it/9txedwr1wy251.jpg?width=1920&format=pjpg&auto=webp&s=e91116819600b605ffca6ce830fdd582d3965466 I want to clear out the air about Ethereum mining. The GPU mining vs Asic mining, is Ethereum now Asic mining Algorithm. Can RX5700 most efficient Graphic cards for ETH mining Compete with Asic miner A10. For the last day i have been working on some stats and ROI for 2 types of investment for 12xGPU RX5700 MineBox 12 mining rig and Innosilicon A10 ETH ASIC miner. My goal was to let the data speak about it self and then make a decision what is better investment for ethereum mining GPU or ASIC. Im compering 2 most efficient miners :
ASIC miner Innosilicon A10 , costs 3000usd(specs. 500mh/s at 860w)
Miner price is about the average would it cost to you 12xGPU mining rig might cost you 100-300 cheaper if you would build one yourself. Innosilicon A10 would cost you lot more if you would like to import it out of China. Price would be closer to 3500euro + you would need to buy power-supply for it. I have created google spreadsheet and inserted the GPU data and performance by the current currencies price and mining profitability. Included also my thoughts about advantages and disadvantages using GPU or Asic miner: https://preview.redd.it/mojtvv7yvy251.jpg?width=1234&format=pjpg&auto=webp&s=f3384599287ea15a4b6f92ffb973a4019330bdca Opinion based on mining profit data. We can see that MineBox 12 ROI if electric price is free or very cheap is faster then ASIC miner A10. And even at 0.10c a kw/h at current Ethereum price there is only 80day difference on Equipment payback time. But the biggest thing is for example when your miners are paid back your investment. You still are available to resell your MineBox 12 hardware for other use case or just mine different coins. Where with Innosilicon A10 you can throw it into bin as soon as ETHASH coins are not profitable to mine. This is the biggest downside of Asic miners. So to answer your question is ETH asic mining coin. My answer would be Yes ASIC miners are slightly more profitable , BUT they are not worth the risk you are getting by buying one. Also you can see clearly that GPU miners has lot more advantages then Asic miners. The difference on ETH miners are not so noticeable then like it was Bitcoin GPU vs ASIC mining. There is still profit to be made with GPUs mining ETH. If ETH switches to new POW ProgPOW , again another benefit for GPU rigs as the same GPUs are quite efficient mining ProgPow. Buying and Asic miner there is to much risk, saying from experience. Have lost a lot of money, my last adventure bought 5xAntminer S17 back in November and 4 of them hashing boards stopped working after 1st week. Not counting the previous purchases Antminer D3 etc.. Let me guys know what you think about this, would your rather use ASIC miner for mining ETH of GPU miner? video : https://www.youtube.com/watch?v=YgVl7pDkkwg&feature=youtu.be
CryptoDiffer teamHello, everyone!We are glad to meet here:Max Freeman (@maxfreeman4), Project Lead at Epic CashYoga Dude (@Yogadude), PR&Marketing at Epic CashXenolink (@Xenolink), Advisor at Epic Cash Max Freeman Project Lead at Epic Cash Thanks Max, we are excited to be here! Yoga Dude PR&Marketing at Epic Cash Hello Everyone! Thank you for having us here! Xenolink Advisor at Epic Cash Thank you to the CryptoDiffer team and CryptoDiffer community for hosting us! CryptoDiffer teamLet`s start from the first introduction question:Q1: Can you introduce yourself to the community? What is your background and how did you join Epic Cash? Yoga Dude PR&Marketing at Epic Cash Hello! My background is Marketing and Business Development, I’ve been in crypto since 2011 started with Bitcoin, then Monero in 2014, Ethereum in 2015 and at some point Doge for fun and profit. I joined Epic Cash team in September 2019 handling PR and Marketing. I saw in Epic Cash what was missing in my previous cryptos — things that were missing in Bitcoin and Monero especially. Xenolink Advisor at Epic Cash Hello Cryptodiffer Community, I am not an original co-founder nor am I a developer for the Epic Cash project. I am however a community member that is involved in helping scale this project to higher levels. One of the many beauties of Epic Cash is that every single member in the community has the opportunity to be part of EPIC’s team, it can be from development all the way to content producing. Epic Cash is a community driven project. The true Core Team of Epic Cash is our community. I believe a community that is the Core Team is truly powerful. EPIC Cash has one of the freshest and strongest communities I have seen in quite a while. Which is one of the reasons why I became involved in this project. Epic displayed some of the most self community produced content I have seen in a project. I’m actually a doctor of medicine but in terms of my experience in crypto, I have been involved in the industry since 2012 beginning with mining Litecoin. Since then I have been doing deep dive analysis on different projects, investing, and building a network in crypto that I will utilize to help connect and scale Epic in every way I can. To give some credit to those people in my network that have been a part of helping give Epic exposure, I would like to give a special thanks to u/Tetsugan and u/Saurabhblr. Tetsugan has been doing a lot of work for the Japanese community to penetrate the Japanese market, and Japan has already developed a growing interest in Epic. Daku Sarabh the owner and creator of Crypto Daku Robinhooders, I would like to thank him and his community for giving us one of our first large AMA’s, which he has supported our project early and given us a free AMA. Many more to thank but can’t be disclosed. Also thank you to all the Epic Community leaders, developers, and Content producers! Max Freeman Project Lead at Epic Cash I’m Max Freeman, which stands for “Maximum Freedom for Mankind”. I started working on the ideas that would become Epic in 2018. I fell in love with Bitcoin in 2017 but realized that it needs privacy at the base layer, fungibility, better scalability in order to go to the next level. CryptoDiffer team Really interesting backgrounds I must admit, pleasure to see the team that clearly has one vision of the project by being completely decentralized:) Q2: Can you briefly describe what is Epic Cash in 3–5 sentences? What technology stands behind Epic Cash and why it’s better than the existing one? Max Freeman Project Lead at Epic Cash I’d like to highlight the differences between Epic and the two highest-valued privacy coin projects, Monero and Zcash. XMR has always-on privacy like Epic does, but at a cost: Its blockchain is over 20x more data intensive than Epic, which limits its possibilities for scalability. Epic’s blockchain is small and light enough to run a full node on cell phones, something that is in our product road map. ZEC by comparison can’t run on low end devices because of its zero knowledge based approach, and only 1% of transactions are fully private. Epic is simply newer, more advanced technology than prior networks thanks to Mimblewimble We will also add more algorithms to widen the range of hardware that can participate in mining. For example, cell phones and tablets based around ARM chips. Millions of people can mine Epic that can’t mine Bitcoin, and that will help grow the network rapidly. There are some great short videos on our YouTube channel https://www.youtube.com/channel/UCQBFfksJlM97rgrplLRwNUg/videos that explain why we believe we have created something truly special here. Our core architecture derives from Grin, so we are fortunate to benefit on an ongoing basis from their considerable development efforts. We are focused on making our currency truly usable and widely available, beyond a store of value and becoming a true medium of exchange. Yoga Dude PR&Marketing at Epic Cash Well we all have our views, but in a nutshell, we offer things that were missing in the previous cryptos. We have sound fiscal emission schedule matching Bitcoin, but we are vastly more private and faster. Our blockchain is lighter than Bitcoin or Monero and our tech is more scalable. Also, we are unique in that we are mineable with CPUs and GPUs as well as ASICs, giving the broadest population the ability to mine Epic Cash. Plus, you can’t forget FUNGIBILITY 🙂 we are big on that — since you can’t have true privacy without fungibility. Also, please understand, we have HUGE respect to all the cryptos that came before us, we learned a lot from them, and thanks to their mistakes we evolved. Xenolink Advisor at Epic Cash To add on, what also makes Epic Cash unique is the ability to decentralize the mining using a tri-algo model of Random X (CPU), Progpow (GPU), and Cuckoo (ASIC) for an ability to do hybrid mining. I believe this is an issue we can see today in Bitcoin having centralized mining and the average user has a costly barrier of entry. To follow up on this one in my opinion one of the things we adopted that we have seen success for , in example Bitcoin and Monero, is a strong community driven coin. I believe having a community driven coin will provide a more organic atmosphere especially when starting with No ICO, or Premine with a fair distribution model for everyone. CryptoDiffer team Q3: What are the major milestones Epic Cash has achieved so far? Maybe you can share with us some exciting plans for future weeks/months? Yoga Dude PR&Marketing at Epic Cash Since we went live in September of 2019, we attracted a very large community of users, miners, investors and contributors from across the world. Epic Cash is a very international project with white papers translated into over 30 languages. We are very much a community driven project; this is very evident from our content and the amount of translations in our white papers and in our social media content. We are constantly working on improving our usability, security and privacy, as well as getting our message and philosophy out into the world to achieve mass adoption. We have a lot of exciting plans for our project, the plan is to make Epic Cash into something that is More than Money. You can tell I am the Marketing guy since my message is less about the actual tech and more about the usability and use cases for Epic Cash, I think our Team and Community have a great mix of technical, practical, social and fiscal experiences. Since we opened our YouTube channels content for community submissions, we have seen our content translated into Spanish, French, German, Polish, Chinese, Japanese, Arabic, Russian, and other languages Max Freeman Project Lead at Epic Cash Our future development roadmap will be published soon and includes 4 tracks: Usability Mining Core Protocol Ecosystem Development Core Protocol Epic Server 2.9.0 — this release improves the difficulty adjustment and is aimed at making block emission closer to the target 60 seconds, particularly reducing the incidence of extremely short and long blocks — Status: In Development (Testing) Anticipated Release: June 2020 Epic Server 3.0.0 — this completes the rebase to Grin 3.0.0 and serves as the prerequisite to some important functional building blocks for the future of the ecosystem. Specifically, sending via Tor (which eliminates the need to open ports), proof of payment (useful for certain dex applications e.g. Bisq), and our native mobile app. Status: In Development (Testing) Anticipated Release: Fall 2020 Non-Interactive Transactions — this will enhance usability by enabling “fire and forget” send-to-address functionality that users are accustomed to from most cryptocurrencies. Status: Drawing Board Anticipated Release: n/a Scaling Options — when blocks start becoming full, how will we increase capacity? Two obvious options are increasing the block size, as well as a Lightning Network-style Layer 2 structure. Status: Drawing Board Anticipated Release: n/a Confidential Assets — Similar to Raven, Tari, and Beam, the ability to create independently tradable assets that ride on the Epic Blockchain. Status: Drawing Board Anticipated Release: n/a Usability GUI Wallet 2.0 — Restore from seed words and various usability enhancements — Status: Needs Assessment Anticipated Release: Fall 2020 Mobile App — Native mobile experience for iOS and Android. Status: In Development (Testing) Anticipated Release: Winter 2020 Telegram Integration — Anonymous payments over the Telegram network, bot functionality for groups. Status: Drawing Board Anticipated Release: n/a Mining RandomX on ARM — Our 4th PoW algorithm, this will enable tablets, cell phones, and low power devices such as Raspberry Pi to participate in mining. Status: Needs Assessment Anticipated Release: n/a The economics of mining Epic are extremely compelling for countries that have free or extremely cheap electricity, since anyone with an ordinary PC can mine. Individual people around the world can simply run the miner and earn meaningful money (imagine Venezuela for example), something that has not been possible since the very early days of Bitcoin. Ecosystem Development Atomic Swaps — Connecting Epic to other blockchains in a trustless way, starting with ETH so that Epic can trade on DeFi infrastructure such as Uniswap, Kyber, etc. Status: Drawing Board Anticipated Release: n/a Xenolink Advisor at Epic Cash From the Community aspect, we have been further developing our community international reach. We have been seeing an increase in interest from South America, China, Russia, Japan, Italy, and the Philippines. We are working on targeting more countries. We truly aim to be a decentralized project that is open to everyone worldwide. CryptoDiffer team Great, thank you for your answers, we now can move to community questions part! Cryptodiffer Community You have 3 mining algorithms, the question is: how do they not compete with each other? Is there any benefit of mining on the GPU and CPU if someone is mining on the ASIC? Max Freeman Project Lead at Epic Cash The block selection is deterministic, so that every 100 blocks, 60% are for RandomX (CPU), 38% for ProgPow (GPU), and 2% for Cuckoo (ASIC) — the policy is flexible so that we can have as many algorithms with any percentages we want. The goal is to make the most decentralized and resilient network possible, and with that in mind we are excited to work on enabling tablets and cell phones to mine, since that opens it up to millions of people that otherwise can’t take part. Cryptodiffer Community To Run a project smoothly, Funding is very important, From where does the Funding/revenue come from? Xenolink Advisor at Epic Cash Yes, early on this was realized and in order to scale a project funds are indeed needed. Epic Cash did not start with any funding and no ICO and was organically genesis mined with no pre-mine. Epic cash is also a nonprofit community driven project similar to Monero. There is no profit-driven entity in the picture. To overcome the revenue issue Epic Cash setup a development fund tax that decreases 1% every year until 2028 when Epic Cash reaches singularity with Bitcoin emissions. Currently it is at 7.77%. This will help support the scaling of the project. Cryptodiffer Community Hi! In your experience working also with MONERO can you please clarify which are those identified problems that EPIC CASH aims to develop and resolve? What’s the main advantage that EPIC CASH has over MONERO? Thank you! Yoga Dude PR&Marketing at Epic Cash First, I must admit that I am still a huge fan and HODLer of Monero. That said: ✅ our blockchain is MUCH lighter than Monero’s ✅ our transaction processing speed is much faster ✅ our address-less blockchain is more private ✅ Epic Cash can be mined with CPU (RandomX) GPU (ProgPow) and Cuckoo, whereas Monero migrated to RandomX and currently only mineable with CPU Cryptodiffer Community
the feature ‘Cut Through’ deletes old data, how is it decided which data will be deletes, and what are the consequences of it for the platform and therefore the users?
On your website I see links to download Epic wallet and mining software for Linux,Windows and MacOs, I am a user of android, is there a version for me, or does it have a release date?
Max Freeman Project Lead at Epic Cash
This is one of the most exciting features of Mimblewimble, which is its extraordinary ability to compress blockchain data. In Bitcoin, the entire history of a coin must be replayed every time it is spent, and comprehensive details are permanently stored in the blockchain. Epic discards spent transaction inputs and consolidates outputs, storing neither addresses or amounts, only a tiny kernel to allow sender and receiver to prove their transaction.
The Vitex mobile app is great for today, and we have a native mobile app for iOS and Android in the works as well.
Cryptodiffer Community $EPIC Have total Supply of 21,000,000 EPIC , is there any burning plan? Or Buyback program to maintain $EPIC price in the future? Who is Epic Biggest competitors? And what’s makes epic better than competitors? Xenolink Advisor at Epic Cash We respect the older generation coins like Bitcoin. But we have learned that the supply economics of Bitcoin is very sound. Until today we can witness how the Bitcoin is being adopted institutionally and by retail. We match the 21 million BTC supply economics because it is an inelastic fixed model which makes the long-term economics very sound. To have an elastic model of burning tokens or printing tokens will not have a solid economic future. Take for example the USD which is an inflating supply. In terms of competitors we look at everyone in crypto with respect and also learn from everyone. If we had to compare to other Mimblewimble tech coins, Grin is an inelastic forever inflating supply which in the long term is not sound economics. Beam however is an inelastic model but is formed as a corporation. The fair distribution is not there because of the permanent revenue model setup for them. Epic Cash a non-profit development tax fund model for scaling purposes that will disappear by 2028’s singularity. Cryptodiffer Community What your plans in place for global expansion, are you focusing on only market at this time? Or focus on building and developing or getting customers and users, or partnerships? Yoga Dude PR&Marketing at Epic Cash Since we are a community project, we have many developers, in addition to the core team. Our plans for Global expansion are simple — we have advocates in different regions addressing their audiences in their native languages. We are growing organically, by explaining our ideology and usability. The idea is to grow beyond needing a fiat bridge for crypto use, but to rather replace fiat with our borderless, private and fungible crypto so people can use it to get goods and services without using banks. We are not limiting ourselves to one particular demographic — Epic Cash is a valid solution for the gamers, investors, techie and non techie people, and the unbanked. Cryptodiffer Community EPIC confidential coin! Did you have any problems with the regulators? And there will be no problems with listing on centralized exchanges? Xenolink Advisor at Epic Cash In terms of structure, we are carefully set up to minimize these concerns. Without a company or investors in the picture, and having raised no funds, there is little scope to attack in terms of securities laws. Bitcoin and Ethereum are widely acknowledged as acceptable, and we follow in their well-established footprints in that respect. Centralized exchanges already trade other privacy coins, so we don’t see this as much of an issue either. In general, decentralized p2p exchange options are more interesting than today’s centralized platforms. They are more censorship resistant, secure, and privacy-protecting. As the technology gets better, they should continue to gain market share and that’s why we’re proud to be partnered with Vitex, whose exchange and mobile app work very well. Cryptodiffer Community What are the main utility and real-life usage of the #EPIC As an investor, why should we invest in the #EPIC project as a long-term investment? Max Freeman Project Lead at Epic Cash Because our blockchain is so light (only 1.16gb currently, and grows very slowly) it is naturally well suited to become a decentralized mobile money standard because people can run a full node on their phone, guaranteeing the security of their funds. Scalability in Bitcoin requires complicated and compromised workarounds such as Lightning Network and light clients, and these problems are solved in Epic. With our forthcoming Mobile Mining app, hundreds of millions of cell phones and tablets will be able to easily join the network. People can quickly and cheaply send money to one another, fulfilling the long-envisioned promise of P2P electronic cash. As an investor, it’s important to ask a few key questions. Bitcoin Standard tokenomics of disinflation and a fixed supply are well proven over a decade now. We follow this model exactly, with a permanently synchronized supply from 2028, and 4 emission halvings from now until then, with our first one in about two weeks. Beyond that, we can apply some simple logical tests. What is more valuable, money that can only be used in some cases (censorable Bitcoin based on a lack of fungibility) or money that can be used universally? (fungible Epic based on always-on privacy by default). Epic is also poised to be a more decentralized and therefore resilient network because of wider participation in mining. Epic is designed to be Bitcoin++ Privacy, Fungibility, Scalability Cryptodiffer Community Q1. What are advantages for choosing three mining algorithms RandomX+, ProgPow and CuckAToo31+ ? Q2. Beam and Grin use MimbleWimble protocol, so what are difference for Epic? All of you will be friends for partners or competitors? Max Freeman Project Lead at Epic Cash RandomX and ProgPow are designed to use the entirety of a CPU / GPU’s unique processing capabilities in a way that other types of hardware don’t work as well. You can run RandomX on a GPU but it doesn’t work nearly as well as a much cheaper CPU, for example. Cuckoo is a “memory hard” algorithm that widens the range of companies that can produce the hardware. Grin and Beam are great projects and we’ve learned a lot from them. We inherited our first codebase from Grin’s excellent Rust design, which is a better language for community participation than C++ that Beam currently uses. Functionally, Mimblewimble is similar across the 3 coins, with standard Confidential Transactions, CoinJoin, Dandelion++, Schnorr Signatures and other advanced features. Grin is primarily ASIC-targeted, Beam is GPU-targeted, and Epic is multi-hardware. The biggest differences though are in tokenomics and project structure. Grin has permanent inflation of 60 coins per block with no halvings, which means steady erosion of value over time due to new supply pressure. It also lacks a steady funding model, making future development in jeopardy, particularly as the per coin price falls. Beam has a for-profit model with heavy early inflation and a high developer tax. Epic builds on the strengths of these earlier mimblewimble projects and addresses the parts that could be improved. Cryptodiffer Community Some privacy coin has scalability issues! How Epic cash will solve scalability issues? Why you choose randomX consensus algorithem? Xenolink Advisor at Epic Cash Fungibility means that you can’t distinguish one unit of currency from another, in example Gold. Fungibility has recently become a hot issue as people have been noticing Bitcoins being locked up by exchanges which may of had a nefarious history which are called Tainted Coins. In example coins that have been involved in a hack, darknet market transactions, or even processing coin through a mixer. Today we can already see freshly mined Bitcoins being sold at a premium price to avoid the fungibility problem Bitcoin carries today. Bitcoin can be tracked by chainalysis and is not a fungible cryptocurrency. One of the features that Epic has is privacy with added fungibility, because of Mimblewimble technology, Epic has no addresses recorded and therefore nothing can be tracked by chainalysis. Below I provide a link of an example of what the lack of fungibility is resulting in today with Bitcoin. One of the reasons why we chose the Random X algo. is because of the easy barrier of entry and also to further decentralize the mining. Random X algo can be mined on old computers or laptops. We also have 2 other algos Progpow (GPU), and Cuckoo (ASIC) to create a wider decentralization of mining methods for Epic. Cryptodiffer Community I’m a newbie in crypto and blockchain so how will Epic Cash team target and educate people who don’t know about blockchain and crypto? What is the uniqueness of Epic Cash that cannot be found in other project that´s been released so far ? Yoga Dude Pr&Marketing at Epic Cash Actually, while we have our white paper translated into over 30 languages, we are more focused on explaining our uses and advantages rather than cold specs. Our tech is solid, but we not get hung up on pure tech talk which most casual users do not need to or care to understand. As long as our fundamentals and tech are secure and user friendly our primary goal is to educate about use cases and market potential. The uniqueness of Epic Cash is its amalgamation of “whats good” in other cryptos. We use Mimblewimble for privacy and anonymity. Our blockchain is much lighter than our competitors. We are the only Mimblewimble crypto to use a unique cocktail of mining algorithms allowing to be mined by casual miners with gaming rigs and laptops, while remaining friendly to GPU and CPU farmers. The “uniqueness” is learning from the mistakes of those who came before us, we evolved and learned, which is why our privacy is better, we are faster, we are fungible, we offer diverse mining and so on. We are the best blend — thats powerful and unique Cryptodiffer Community Can you share EPIC’s vision for decentralized finance (DEFI)? What features do EPIC have to support DEFI? Yoga Dude PR&Marketing at Epic Cash We view Epic as ideally suited to be the decentralized digital reserve asset of the new Private Internet of Money that’s emerging. At a technology level, atomic swaps can be created to build liquidity bridges so that wrapped Epic tokens (like WBTC, WETH) can trade on other networks as ERC20, BEP2, NEP5, VIP180, Algorand and so on. There is more Bitcoin value locked on Ethereum than in Lightning Network, so we will similarly integrate Epic so that it can trade on networks such as Uniswap, Kyber, and so on. Longer term, if there is market demand for it, thanks to Scriptless Script functionality our blockchain has, we can build “Confidential Assets” (which Raven, Tari, and Beam are all also working on) that enable people to create tokenized assets in a private way. Cryptodiffer Community If you could choose one celebrity to promote Epic-cash, who that would be? Max Freeman Project Lead at Epic Cash I am a firm believer that the strength of the project lies in allowing community members to become their own celebrities, if their content is good enough the community will propel them to celebrity status. Organic celebrities with small but loyal following are vastly more beneficial than big name professional shills with inflated but non caring audiences. I remember the early days of Apple when an enthusiastic dude named Guy Kawasaki became Apple Evangelist, he was literally going around stores that sold Apple and visited user groups and Evangelized his belief in Apple. This guy became a Legend and helped Apple become what it is today. Epic Cash will have its OWN Celebrities Cryptodiffer Community How does $EPIC solve scalability of transactions? Current blockchains face issues with scalability a lot, how does $EPIC creates a solution to it? Xenolink Advisor at Epic Cash Epic Cash is utilizing Mimblewimble technology. Besides the privacy & fungibility aspect of the tech. There is the scalability features of it. It is implemented into Epic by transaction cut-through. Which means it allows nodes to remove all intermediate transactions, thus significantly reducing the blockchain size without affecting its validation. Mimblewimble also does not use addresses like a BTC address, and amount of transactions are also not recorded. One problem Monero and Bitcoin are facing now is scalability. It is evident today that data is getting more expensive and that will be a problem in the long run for those coins. Epic is 90% lighter and more scalable compared to Monero and Bitcoin. Cryptodiffer Community what are the ways that Epic Cash generates profits/revenue to maintain your project and what is its revenue model ? How can it make benefit win-win to both invester and your project ? Max Freeman Project Lead at Epic Cash There is a block subsidy of 7.77% that declines 1.11% per year until 0, where it stays after that. As a nonprofit community effort, this extremely modest amount goes much further than in other projects, which often take 20, 30, even 50+ % of the coin supply. We believe that this ongoing funding model best aligns the long term incentives for all participants and balances the compromises between the ends of the centralized/decentralized spectrum of choices that any project must make. Cryptodiffer Community Q1 : What are your major goals to archive in the next 3–4 years? Q2 : What are your plans to expand and gain more adoption? Yoga Dude Pr&Marketing at Epic Cash Max already talked about our technical plans and goals in his roadmap. Allow me to talk more about the non technical 😁 We are aiming for broader reach in the non technical more mainstream community — this is a big challenge but we believe it is doable. By offering simpler ways to mine Epic Cash (with smart phones for example), and by doing more education we will achieve the holy grail of crypto — moving past the fiat bridges and getting Epic Cash to be accepted as means of payment for goods and services. We will accomplish this by working with regional advocacy groups, community interaction, off-line promotional activities and diverse social media targeting. Cryptodiffer Community It seems to me that EpicCash will have its first Halving, right? Why a halving so soon? Is a mobile version feasible? Max Freeman Project Lead at Epic Cash Our supply emission catches up to that of Bitcoin’s first 19 years after 8 years in Epic, so that requires more frequent halvings. Today’s block emission is 16, next up are 8, 4, 2, and then finally 0.15625. After that, the supply of Epic and that of BTC stay synchronized until maxing out at 21m coins in 2140. Today we have a mobile wallet through the Vitex app, a native mobile wallet coming, and are working on mobile mining. Cryptodiffer Community What markets will you add after that? Yoga Dude PR&Marketing at Epic Cash Well, we are aiming to have ALL markets Epic Cash in its final iteration will be usable by everyone everywhere regardless of their technical expertise. We are not limiting ourselves to the technocrats, one of our main goals is to help the billions of unbanked. We want everyone to be able to mine, buy, and most of all USE Epic Cash — gamers, farmers, soccer moms, students, retirees, everyone really — even bankers (well once we defeat the banking industry) We will continue building on the multilingual diversity of our global community adding support and advocacy groups in more countries in more languages. Epic Cash is More than Money and its for Everyone. Cryptodiffer Community Almost, all cryptocurrencies are decentralized & no-one knows who owns that cryptocurrencies ! then also, why Privacy is needed? hats the advantages of Private coins? Max Freeman Project Lead at Epic Cash With a public transparent blockchain such as Bitcoin, you are permanently posting a detailed history of your money movements open for anyone to see (not just legitimate authorities, either!) — It would be considered crazy to post your credit card or bank statements to Twitter, but that’s what is happening every time you send a transaction that is not private. This excellent video from community contributor Spencer Lambert https://www.youtube.com/watch?v=0blbfmvCq\_4 explains better than I can. Privacy is not just for criminals, it’s for everyone. Do you want your landlord to increase the rent when he sees that you get a raise? Your insurance company to raise your healthcare costs because they see you buying too much ice cream? If you’re a business, do you want your employees to see how much money their coworkers make? Do you want your competitors to trace your supplier and customer relationships? Of course not. By privacy being default for everyone, cryptocurrency can be used in a much wider range of situations without unacceptable compromises. Cryptodiffer Community What are the main utility and real-life usage of the #EPIC As an investor, why should we invest in the #EPIC project as a long-term investment? Xenolink Advisor at Epic Cash Epic Cash can be used as a Private and Fungible store of value, medium of exchange, and unit of account. As Epic Cash grows and becomes adopted it can be compared to how Bitcoin and Monero is used and adopted as well. As Epic is adopted by the masses, it can be accepted as a medium of exchange for store owners and as fungible payments without the worry of having money that is tainted. Epic Cash as a store of value may be a good long term aspect of investment to consider. Epic Cash carries an inelastic fixed supply economic model of 21 million coins. There will be 5 halvings which this month of June will be our first halving of epic. From a block reward of 16 Epic reduced to 8. If we look at BTC’s price action and history of their halvings it has been proven and show that there has been an increase in value due to the scarcity and from halvings a reduction of # of BTC’s mined per block. An inelastic supply model like Bitcoin provides proof of the circulating supply compared to the total supply by the history of it’s Price action which is evident in long term charts since the birth of Bitcoin. EPIC Plans to have 5 halvings before the year 2028 to match the emissions of Bitcoin which we call the singularity event. Below is a chart displaying our halvings model approaching singularity. Once bitcoin and cryptocurrency becomes adopted mainstream, the fungibility problem will be more noticed by the general public. Privacy coins and the features of fungibility/scalability will most likely be sought over. Right now a majority of people believe that all cryptocurrency is fungible. However, that is not true. We can already see Chainalysis confirming that they can trace and track and even for other well-known privacy coins today such as Z-Cash. Cryptodiffer Community
You aim to reach support from a global community, what are your plans to get spanish speakers involved into Epic Cash? And emerging markets like the african
How am I secure I won’t be affected by receiving tainted money?
Max Freeman Project Lead at Epic Cash Native speakers from our community are working to raise awareness in key markets such as mining in Argentina and Venezuela for Spanish (Roberto Navarro called Epic “the holy grail of cryptocurrency” and Ethiopia and certain North African countries that have the lowest electricity costs in the world. Remittances between USA and Latin American countries are expensive and slow, so Epic is also perfect for people to send money back home as well. Cryptodiffer Community Do EPICs in 2020 focus more on research and coding, or on sales and implementation? Yoga Dude PR&Marketing at Epic Cash We will definitely continue to work on research and coding, with emphasis on improved accessibility (especially via smartphones) usability, security and privacy. In terms of financial infrastructure will continuing to add exchanges both KYC and non KYC. Big part of our plans is in ongoing Marketing and PR outreach. The idea is to make Epic Cash a viral sensation of sorts. If we can get Epic Cash adopters to spread the word and tell their family, coworkers and friends about Epic Cash — there will be no stopping us and to help that happen we have a growing army of content creators, and supporters. Everyone with skin in the game gets the benefit of advancing the cause. Folks also, this isn’t an answer to the question but an example of a real-world Epic Cash content — https://www.youtube.com/watch?v=XtAVEqKGgqY a challenge from one of our content creators to beat his 21 pull ups and get 100 epics! This has not been claimed yet — people need to step up 🙂 and to help that I will match another 100 Epic Cash to the first person to beat this Cryptodiffer Community I was watching some videos explaining how to send and receive transactions in EpicCash, which consists of ports and sending links, my question is why this is so, which, for now, looks complex? Let’s talk about the economic model, can EpicCash comply with the concept of value reserve? Max Freeman Project Lead at Epic Cash In V3, which is coming later this summer, Epic can be sent over Tor, which eliminates this issue of port opening, even though using tools like ngrok.io, it’s not necessarily as painful as directly configuring the router ports. Early Lightning Network had this issue as well and it’s something we have a plan to address via research into non-interactive transactions. “Fire and Forget” payments to an address, as people are used to in Bitcoin, is coming to Epic and we’re excited to develop functionality that other advanced mimblewimble coins don’t yet have. We are committed to constant improvement in usability and utility, to make our money system the ease of use leader. We are involved in the project (anyone can join the Freeman Family) because we believe that simply by choosing to use a form of money that better aligns with our ideals, that we can make a positive change in the world. Some of my thoughts about how I got involved are here: https://medium.com/epic-cash/the-freeman-family-e3b9c3b3f166 Max Freeman Project Lead at Epic Cash Huge thanks to our friends Maks and Vladyslav, we welcome everyone to come say hi at one of our friendly communities. It is extremely early in this journey, our market cap is only 0.5m right now, whereas the 3 other mimblewimble coins are at $20m, $30m and $100m respectively. Epic is a historic opportunity to follow in the footsteps of legends such as Bitcoin and Monero, and we hope to become the first Top 5 privacy coin project. Xenolink Advisor at Epic Cash Would like to Thank the Cryptodiffer Team and the Cryptodiffer community for hosting us and also engaging with us to learn more about Epic. If anyone else has more questions and wants to know more about EPIC , can find us at our telegram channel at https://t.me/EpicCash . Yoga Dude Pr&Marketing at Epic Cash Thank you, CryptoDiffer Team, and this wonderful Community!!! Cryptodiffer TEAM Thank you everyone for taking your time and asking great questions Thank you for your time, it was an insightful session Spread the love
I’ve been losing sleep. I don’t think I’m particularly special in that regard, I think everyone has been losing sleep these days. A global pandemic tends to do that to people. Yet the thing that has been keeping me awake isn’t the virus. I’ve been losing sleep over an old couch I once crossed paths with. It’s been eight years, I want to believe that I’ve put the past behind me, but being locked in a house for a couple of weeks has made it impossible to not dwell on the past. The memory of the couch started off as a fleeting thought over my morning coffee, but as days have turned into weeks that memory has grown into a distinct vision of madness. What I saw during those three drunken nights in December of 2012 has become an unavoidable part of reality. I can’t rest until I process it. So since we have a nice little Internet campfire going here I figured I would tell you guys a story. Hopefully it will let me put this whole part of my past to rest and maybe it will take your mind off of what is happening outside. So kick back and let me tell you a tale of love and loss, of broken teenage hearts, of surviving in a crumbling world. Let me tell you a story about the couch that tried to seduce me. I was nineteen, hung-over and heartbroken. I was also stuck in a foreign country. Well, to call Estonia a foreign country would be a bit of a long shot, I had lived there for a good five years of my life. It was in Estonia that I lived out most of my teenage years. This was where I had smoked my first cigarette, had my first drink, fell in love for the first time. I was dragged in when I was thirteen by my parents; they had business in Tallinn and wherever they went I went. At eighteen, when my parent’s contracts ran out, I was forced back home. Their business with Estonia was done. Mine was not. By nineteen I was back. As soon as I got off the plane I turned my phone on and checked my messages. She didn’t write to me. My soul, positioned somewhere slightly above my abdomen, twitched in discomfort. It was a familiar twitch, I had felt it in the bus to the airport, I had felt it in the security check, I had felt it when I boarded the flight to Tallinn and as soon as I got off the plane the twitch was back with a vengeance. The discomfort I was feeling in my chest was a realization. It was the realization that I had emptied out most of my already slim bank account on a one-way ticket halfway across the continent to see my old high-school sweetheart who wasn’t interested in seeing me. It was the realization that as much as I consciously knew the trip was a bad idea, I couldn’t resist going. I dragged my feet towards the arrivals hall. When it became obvious that Saale was dodging my messages I panicked. There was no place for me to crash, I had no money for a flight, hell, I had no money for food. As I boarded the plane to Estonia I sent off a panicked text message to my old band-mate: ‘Made horrible mistake. Landing in Tallinn in three hours. Can I crash at yours?’ Within two minutes there was a reply: ‘OK. Will come with Maarja. See you soon.’ Karl wasn’t very chatty, but he was always there when needed. The two of them were waiting for me as soon as I walked out into the arrival hall. They barely changed. Karl was still a giant of man. His long hair had gotten longer and the beard he had rocked since seventeen had gotten thicker, the guy looked like Jesus on steroids if Jesus was really into heavy metal and wore glasses. Next to Karl stood Maarja, she wore a garish yellow coat. The pink streak in her hair she’d been so proud of back in middle school was pinker than ever. “JAAMEEES! YOU’RE BACK!” Maarja yelled in her high-pitched faux-English accent before nearly tackling me to the ground. “It’s been too long honey! Too long!” She hadn’t changed a bit since I left the country. Maarja was still a pint-sized bolt of energy. The two of them made for an odd couple. “Welcome back, Friend,” Karl said after Maarja was done squeezing me. He wasn’t one for physical contact, Karl settled on a simple pat on the shoulder that challenged my entire skeletal structure. The three of us made our way outside to catch a bus to the center. Even after living in Estonia for five years I still wasn’t used to the winters. As soon as we walked out into the sub-zero temperature I felt decidedly like a foreigner. We caught up on the small things while we waited for the bus. Karl and Maarja had officially moved in together, the band that Karl and me started up in high-school had broken up, Maarja was in the process of getting a bachelors degree of psychology and Karl was really into some crypto-currency stuff that went completely over my head. I couldn’t get much out of me; the cold was taking a real toll on my system. Whenever I opened my mouth to talk about my miserable little life I simply ended up chattering my teeth. As soon as we got on the bus I threw myself at the nearest heating vent. “So, James,” Maarja said as soon as we got on the bus, “You still talk to Saale?” When I turned away from the heater to face her she froze, “I mean, we don’t have to talk about, forget I asked.” “Do I look that bad?” While Maarja searched for a diplomatic answer Karl stepped in with his special brand of honesty, “You look very tired and unhappy.” “Well, I am happy to see you guys and I am excited to be here, but, yeah,” I decided to get the conversation out of the way, “We tried two months of long-distance, but Skype only gets you so far. Broke up in late July. After we split we agreed to not talk for a couple of months, to give each other some time to clear the system and all that. Keeping radio silence was hard at first but after a couple of weeks I started to get used to it. I was learning to live without her. Things were starting to straighten up, I even took a stab at dating but when the holidays rolled around the loneliness came back. On Christmas I figured I’d throw Saale a holiday message. She wrote back. We started chatting on a daily basis.” The bus bounced through my old neighborhood. Memories of my drunken youth jumped at me from every corner, most of those memories involved Saale. “Last night we got pretty drunk,” I continued, “Things got flirty. We started talking about what we would do if we weren’t half a continent away from each other. She mentioned her parents were out of town until the end of January on some sort of an anniversary trip. I offered to fly in. She told me I should. Now I’m here.” “She changed her mind?” Karl asked. “She didn’t think I was serious about flying over. Didn’t exactly check with her before I bought the ticket. She flipped out when I got it, told me to get a refund and then hung up on me when I insisted on meeting up. She hasn’t answered any of my messages since.” A part of me felt good to get the story out of my system but saying it out loud just added to the absurdity. I could have not bought the ticket, I could have gotten a refund, I could have not gotten on that plane. Everything could have been avoided, but nineteen year old me leaped at the opportunity for a grand romantic gesture like a hungry animal. “Very strange,” Karl finally said after considering my story. He shot a look over to Maarja, as if she was the ambassador to all women-kind, “Very strange, right?” Maarja shrugged. Maarja’s house was the crown jewel of my high-school social life. It was a three-apartment unit that was built at some point before the world wars. This place was old, as you would walk around the little apartment it would creak, but it made for a perfect party place. Maarja had inherited the apartment from her grandma at sixteen; the Estonians saw child rearing as a fairly independent process. If she couldn’t survive on her own at sixteen she probably couldn’t make it at thirty, a bit of responsibility would prepare her for the frigid world outside. Maarja used her newly found independence to throw the biggest house parties that the neighborhood had ever seen. Maarja’s place was perfect for booze filled gatherings. It was spacious enough to hold any drinking game we could dream up, there was a nice terrace for smoking and the neighbors were either deaf, completely apathetic about teenage drinking or both. As soon as the front door opened I was assaulted by memories. Visions of drunken nights on the floor of the living room, of hung-over mornings of the kitchen; the old apartment breathed with the past. For a split second a wave of gratitude for a youth well spent washed over me, but then I remembered that each of those fond memories had an element I wanted to block out. Most of the fun I had in the apartment had been with Saale by my side. Maarja and Karl still slept on an old mattress on the floor, the walls were still covered with cut outs of boy-bands that Maarja had stuck to the wall in her tweens. The only thing that changed about their bedroom was the addition of a massive computer rig on the table. There were strange ventilators and cooling tubes and blinking lights, the machine looked like something straight out of a sci-fi flick. “That’s my mining rig,” Karl said proudly. I nodded as if I understood what he was talking about. “Where are the rats?” I asked, noticing the empty cage on Maarja’s wardrobe. Back in the day Maarja had two rats, Fritz and The Duchess. She would keep them in the cage most of the time, but whenever the night reached a certain point of drunkenness Maarja would sneak over to her bedroom and come out with the two animals. If you saw Maarja with two rats running up and down her body you knew the night was really going to become a rager. “The Duchess died last week,” Maarja said with a glint of sorrow, “Fritz wasn’t taking it well. Think the little guy was depressed being in the cage all alone, so I’m letting him roam around the house for the time being. Hopefully a bit of freedom will cheer him up.” As if he had heard his name, Fritz peeked out from behind the wardrobe. The albino rat raised his snout in the air, sniffed for a bit and then lumbered off to the living room. The years had taken their toll on Fritz, he no longer moved with the youthful energy I was used to, but the one part of him that I remembered had not changed. Fritz still had balls that were disproportionately giant to his body. As he moved away from us he dragged them behind him with Sisyphean effort. “So, which hostel are you crashing at?” Maarja asked. A lump manifested in my throat. I looked around the cramped apartment. Outside of the mattress there was nowhere for me to sleep. I didn’t have any money for a hostel. “Ah, I’m just kidding. You’re crashing here. We owe you anyway,” Maarja said with good cheer. “For what?” I asked, relieved that I wasn’t homeless. “Financing the booze and cigarettes back in the day, might have ended up a nun if it weren’t for you,” she said with a grin. It was true, throughout high school I had been the main financier of our misadventures, my parents had foreign money and that money went pretty far by Estonian standards. More importantly though; when everyone was sixteen I looked twelve. According to the law of teen streets, the late bloomer provides the dough for those who can buy stuff without ID. “You’ll sleep on the couch, we just haven’t had the time to get it out of the garage. How about you and Karl drag it in while I make some tea?” Even though it was a bright winter day outside the garage was in near darkness. The only thing that illuminated the cramped musty room was a single ray of light shining in through a cracked skylight. The garage was covered in flimsy shelves that buckled beneath the weight of greasy machine parts. In the center of the garage lay a couch shaped object covered with a large, stained cloth. Karl grabbed ahold the cloth and was about to pull it away, but a thought struck him. “James, if I tell you something will you not tell Maarja?” He asked, letting the cloth drop back down to the floor. He looked straight at me; his small eyes were probing me for trustworthiness. “Well, depends on what it is,” I said, “Don’t need help burying a body, right?” “No,” Karl’s intensity broke into a smile, “It is nothing illegal. Just a secret.” He strode towards one of the rickety shelves and plunged his hand deep into its depths. After a moment of rustling he pulled out a small box. He opened it. Even though the garage was dark, and even though the diamond was tiny, you could see a little glimmer. Karl’s eyes shone twice as bright. “Wow man,” I said, realizing how quickly the world was moving on, “Congratulations!” Maarja and Karl would get married and I would be at their wedding alone. As I stood in that garage the thought that I would always be alone gushed dread through my veins. We used to joke about how Saale and me would get hitched before the two of them did. Those jokes felt cruel now. Maarja and Karl would get married and one day Saale would get married too. She would get married to someone who wasn’t me. “I’m really happy for you.” “I want to ask her father soon. He does not like me much, but I think I can show him that I can provide for his daughter. This Bitcoin thing will be big soon James, in a couple of years me and Maarja will be rich.” Karl put the box back into its hiding place. “Promise not to tell her, yes?” “Promise,” I said with as much candor as I could muster, but my mind was elsewhere. My mind was floating disembodied in a bright church, watching my would-be-wife get married to someone else. “James,” Karl’s paw on my shoulder brought me back into reality, “You will be okay. I know you are worried about Saale, but you still have us. We will drink this away.” He smiled. I tried to smile back. “Let’s get this couch, shall we?” He pulled away at the cloth that covered the couch. Enough dust flew off into the air to send us both into a coughing fit. The room danced with dirty particles. Yet from behind the veil of powder I could see it. I could see the couch. The thing was ancient, a couch straight out of the early days of the Soviet Union. Its flowery upholstery was covered in stains that just screamed history. It was as if the piece of furniture had been used for barricades in the defense of Stalingrad and lived to talk about it. Filth filled its rumpled cloth, it stood on firm wooden legs that seemed to have survived multiple generations of being clawed at, it was as if the thing was simply biding its time until its true masters came back to retrieve it. The couch was old, but somehow in that dark garage, in that gust of earthly smoke, there was something alluring about it. It looked ratty but comfortable, even inviting. For a split second I was sure that the couch had winked at me with its cushioning. Then the dust settled and it was just a piece of furniture. Karl grabbed one side of the couch, I grabbed the other and we started to haul the thing towards the living room. We had left the garage, but there was still tension in the air. I was still thinking about Saale getting married to someone who wasn’t me. It was still as if Karl and me were meant to have a serious discussion. Neither of us were comfortable. “I lost my virginity on this couch,” I shared, hoping to relax the situation. Karl grinned, accepting the levity, “Gross.” We dragged the couch to the living room and then joined Maarja in the kitchen. Back in the day her kitchen table was the go-to place to gather before drinking and after drinking. We would sit around and shoot the shit and wait for someone to drop off the booze for the evening or the hung-over pizza for the morning. Yet as we sat there, trying to make small talk, one of the chairs was empty and it made all the difference. I couldn’t focus on anything that was being said around me, all I could think about was how Saale used to sit next to me. All I could think about were her long legs on my lap, her long fiery hair, her laughter. “How about we sweeten the evening with a bit of moonshine?” Maarja asked, as she fished a clear bottle out of the kitchen counter, “Karl and me are going to lunch with my parents tomorrow though, so no hangovers.” Karl cheered on the promise of alcohol, but not even drink could lift my spirits. My eyes shifted from Saale’s empty seat to the couch. All I wanted to do was lie down and fall asleep for a thousand years. “Guys, I appreciate the hospitality but I’m really tired. How about we drink tomorrow?” I said. Karl and Maarja looked concerned, this was the first time they had ever seen me refuse booze. “Are you sure you’re okay honey? We can talk about it if you want to,” Maarja suggested. I insisted I was fine; I just needed to get some rest. That didn’t convince her, but she yielded, “Well, we’ll be in my room if you need us.” Her and Karl shuffled off to her bedroom. I laid down on the couch. From the other room I could hear them talk. Maarja talked in concerned whispers whilst Karl spoke at full volume, it didn’t make much of a difference, even after five years of being in the country I still couldn’t understand Estonian. I could hear my name being mentioned though. They were concerned about the emotional wreck that was crashing on their couch. I dragged my friends into my mess. It was all so humiliating; I was far from home, broke and broken. I wanted to die. ‘Easy there Tiger, don’t think like that,’ a faint voice emerged from the back of my head, ‘Things might not seem great right now, but look on the bright side, at least you’re on a comfortable couch.’ The voice was right; the couch was indeed comfortable. ‘All you need is a bit of a distraction to forget about your broken heart. Some booze, some dope, maybe a bit of love and you’ll be good as new.’ It was as if the suave voice turned a switch in my mind. Suddenly the tightness in my chest eased, a burst of joy started to bubble in my abdomen. My fingers started to trace the sides of the upholstery. The voice giggled, ‘That’s the spirit Tiger, just relax, you’re fine as long as you’re here with me.’ The universe felt lighter, my feelings of dread faded away and were replaced with an electric anticipation. I needed a drink to celebrate. I opened the door to Maarja’s bedroom. She was lounging on the mattress reading a psych textbook. Karl was watching bar graphs on the computer. “Hey guys,” I peeked in, “I feel a bit better now, how about those drinks?” They both grinned. We drank. In the moment I didn’t give much thought to the voice in my head, my internal monologue was turned up a notch since the break-up anyway. I was used to hearing thoughts that I consciously didn’t want to consider; the silky voice that was telling me that things would be okay was a welcome distraction. I sunk into the couch and I let the night carry me away. ‘See Tiger? Isn’t it nice to be here? Isn’t life just swell on this little old couch?’ it would say. I nodded along. We drank more. All thoughts of avoiding hangovers were let go; the liquor poured freely. At some point Maarja emerged out of her room with Fritz on her shoulder. We celebrated the tradition of our youth but the rat was sluggish, far too old to crawl around on her body. After a couple of minutes Maarja gave up on playing with the rat. She put him on the ground. Fritz simply walked around the room dragging his testacles behind him like a ball and chain. We drank more. Karl lumbered up to his feet and went to fetch his guitar. Maarja was out having a cigarette. I was far too comfortable on the couch. Having a moment to myself I watched the rat. Fritz had spent the past couple of minutes roaming the living room and sniffing at my backpack. Yet suddenly something caught his attention, he sniffed at the air, his whiskers bouncing in curiosity. Then he looked towards the couch. The old rat sprung to his hind legs and turned towards me. It was as if his beady eyes were locked to the piece of furniture. ‘Oh Tiger, don’t think about the stupid rat. Look, here comes Karl, let’s stop thinking about stupid things and listen to him play.’ Oh and how he could play. To say that Karl lacked warmth would be an understatement, communicating with the guy often felt like having a conversation with a pile of awkwardly stacked encyclopedias, but as soon as he would bring out the guitar he would ooze personality. Somehow, with those hulking fingers of his, Karl had managed to make the strings sing the gentlest of tones. Maarja and me sang along out of key as the night went on. ‘Just like the good old days, Tiger, you’re here and you’re happy. Focus on the positives, focus on the present,’ the voice told me. I followed the advice, until I couldn’t. It was as if a spell had been broken. As soon as I heard those opening chords, as soon as I realized what Karl was playing my stomach sank. It was that Rolling Stones song. Saale and me had danced to it once upon a time. Memories of our first night together came rushing into my mind. The Saale shaped hole in my heart throbbed with pain. I got up to splash some water on my face. Karl shifted his performance into a serenade for Maarja. The tiles in the bathroom were freezing but I was willing to withstand the pain if it meant I could get further away from the song. I stood there, willing to wait it out, but the memories just kept on floating back. I was standing in the same bathroom I stood in the night that I met Saale. I could see traces of a sixteen-year old in my face. The music kept on building. Saale’s lily perfume filled my nostrils. I could remember the fullness of her lips before our first kiss. The images were cascading on top of each other, ripping away at my sanity, ready to plunge me into a panic attack. But then they stopped. The music stopped. I peeked out of the door. Karl had chucked his guitar over to the side. His serenade had given way to a heavy make out session. Him and Maarja were all over each other. “Guys, I’m going to go out for a cigarette,” I announced. The two of them looked up at me dazed and drunk. “Take the keys honey, I think we’re going to bed.” I hoped that the dial tone would block out Maarja’s moans but it didn’t. Not only did I have to listen to a loving couple have sex, I also had to listen to world’s quietest dial tone as I was reminded that Saale did not want to talk to me. I stood out there in the freezing cold smoking one cigarette after another. It was just me, the starless sky and Maarja’s moans. Karl lasted for a quarter a pack before their bedroom quieted down. I tried calling Saale one more time and then went back inside. By the time I stumbled to the couch I could already hear snoring coming from the bedroom. But there was another sound in the apartment, something much quieter, something I almost didn’t notice. Scratching. Luckily I managed to prop myself up against the couch before I sat on him. As I tried to regain my balance I realized just how drunk I was. Fritz was on the couch, furiously scratching into its upholstery. He looked up at the drunken figure hovering over him for a split second and then went back to work. Those little claws scratched with the ferocity of a pup. It was as if Fritz was two years younger. I picked him up by his scruff and tried taking him off the couch. When I lifted him off the ground the rat seemed confused for just a split second before- ‘Aiiieee’ Fritz screamed the world’s tiniest scream and then bit me in the finger. He dropped to the ground and ran beneath a nearby wardrobe. He hid beneath it and watched me. I was too drunk and tired to care. I laid down on the couch and exhaled. ‘Welcome back Tiger, you look tired. Let me keep you company. Yes, life is hard, but if you really appreciate the moment it can be pretty enjoyable. Lie down here, let me keep you hold you. Let’s get to know each other better.’ I could smell floral perfume. I closed my eyes and drifted off to a deep sleep. (Next part)
Antminer T19 May Not Affect Bitcoin Hash Rate but Keeps Bitmain Ahead
The Antminer T19 by Bitmain may not have a big impact on the Bitcoin network, and it comes out amid the firm’s internal and post-halving uncertainty. Earlier this week, Chinese mining-hardware juggernaut Bitmain unveiled its new product, an application-specific integrated circuit called Antminer T19. The Bitcoin (BTC) mining unit is the latest to join the new generation of ASICs — state-of-the-art devices designed to mitigate increased mining difficulty by maximizing the terahashes-per-second output. The Antminer T19 announcement comes amid the post-halving uncertainty and follows the company’s recent problems with its S17 units. So, can this new machine help Bitmain to reinforce its somewhat hobbled position in the mining sector? T19: The cheaper S19 According to the official announcement, the Antminer T19 features a mining speed of 84 TH/s and a power efficiency of 37.5 joules per TH. The chips used in the new device are the same as those equipped in the Antminer S19 and S19 Pro, though it uses the new APW12 version of the power supply system that allows the device to start up faster. Bitmain usually markets its Antminer T devices as the most cost-effective ones, while the S-series models are presented as the top of the line in terms of productivity for their respective generation, Johnson Xu — the head of research and analytics at Tokensight — explained to Cointelegraph. According to data from F2Pool, one of the largest Bitcoin mining pools, Antminer T19s can generate $3.97 of profit each day, while Antminer S19s and Antminer S19 Pros can earn $4.86 and $6.24, respectively, based on an average electricity cost of $0.05 per kilowatt-hour. Antminer T19s, which consume 3,150 watts, are being sold for $1,749 per unit. Antminer S19 machines, on the other hand, cost $1,785 and consume 3,250 watts. Antminer S19 Pro devices, the most efficient of three, are considerably more expensive and go for $2,407. The reason Bitmain is producing another model for the 19 series is due to what is known as "binning" chips, Marc Fresa — the founder of mining firmware company Asic.to — explained to Cointelegraph: “When chips are designed they are meant to achieve specific performance levels. Chips that fail to hit their target numbers, such as not achieving the power standards or their thermal output, are often ‘Binned.’ Instead of throwing these chips in the garbage bin, these chips are resold into another unit with a lower performance level. In the case of Bitmain S19 chips that don’t make the cutoff are then sold in the T19 for cheaper since they do not perform as well as the counterpart.” The rollout of a new model “has nothing to do with the fact that machines are not selling well,” Fresa went on to argue, citing the post-halving uncertainty: “The biggest reason machines probably are not selling as well as manufacturers would like is because we are on a bit of a tipping point; The halving just happened, the price can go anyway and the difficulty is continuing to drop.” Product diversification is a common strategy for mining hardware producers, given that customers tend to aim for different specifications, Kristy-Leigh Minehan, a consultant and the former chief technology officer of Genesis Mining, told Cointelegraph: “ASICs don’t really allow for one model as consumers expect a certain performance level from a machine, and unfortunately silicon is not a perfect process — many times you’ll get a batch that performs better or worse than projected due to the nature of the materials. Thus, you end up with 5–10 different model numbers.” It is not yet clear how efficient the 19-series devices are because they have not shipped at scale, as Leo Zhang, the founder of Anicca Research, summed up in a conversation with Cointelegraph. The first batch of S19 units reportedly shipped out around May 12, while the T19 shipments will start between June 21 and June 30. It is also worth noting that, at this time, Bitmain only sells up to two T19 miners per user “to prevent hoarding.” Hardware problems and competitors The latest generation of Bitmain ASICs follows the release of the S17 units, which have received mostly mixed-to-negative reviews in the community. In early May, Arseniy Grusha, the co-founder of crypto consulting and mining firm Wattum, created a Telegram group for consumers unsatisfied with the S17 units they purchased from Bitmain. As Grusha explained to Cointelegraph at the time, out of the 420 Antminer S17+ devices his company bought, roughly 30%, or around 130 machines, turned out to be bad units. Similarly, Samson Mow, the chief strategy officer of blockchain infrastructure firm Blockstream, tweeted earlier in April that Bitmain customers have a 20%–30% failure rate with Antminer S17 and T17 units. “The Antminer 17 series is generally considered not great,” added Zhang. He additionally noted that Chinese hardware company and competitor Micro BT has been stepping on Bitmain’s toes lately with the release of its highly productive M30 series, which prompted Bitmain to step up its efforts: “Whatsminer gained significant market share in the past two years. According to their COO, in 2019 MicroBT sold ~35% of the network hashrate. Needless to say Bitmain is under a lot of pressure both from competitors and internal politics. They have been working on the 19 series for a while. The specs and price look very attractive.” Minehan confirmed that MicroBT has been gaining traction on the market, but refrained from saying that Bitmain is losing market share as a result: “I think MicroBT is offering option and bringing in new participants, and giving farms a choice. Most farms will have both Bitmain and MicroBT side by side, rather than exclusively host one manufacturer.” “I would say that MicroBT has taken up the existing market share that Canaan has left,” she added, referring to another China-based mining player that recently reported a net loss of $5.6 million in the first quarter of 2020 and cut the price of its mining hardware by up to 50%. Indeed, some large-scale operations seem to be diversifying their equipment with MicroBT units. Earlier this week, United States mining firm Marathon Patent Group announced that it had installed 700 Whatsminer M30S+ ASICs produced by MicroBT. However, it is also reportedly waiting for a delivery of 1,160 Antminer S19 Pro units produced by Bitmain, meaning that it also remains loyal to the current market leader. Will the hash rate be affected? Bitcoin’s hash rate plummeted 30% soon after the halving occurred as much of the older generation equipment became unprofitable due to the increased mining difficulty. That spurred miners to reshuffle, upgrading their current rigs and selling older machines to places where electricity is cheaper — meaning that some of them had to temporarily unplug. The situation has stabilized since, with the hash rate fluctuating around 100 TH/s for the past few days. Some experts attribute that to the start of the wet season in Sichuan, a southwest Chinese province where miners take advantage of low hydroelectricity prices between May and October. The arrival of the new generation of ASICs is expected to drive the hash rate even higher, at least once upgraded units become widely available. So, will the newly revealed T19 model make any impact on the state of the network? Experts agree that it won’t affect the hash rate to a major degree, as it’s a lower output model compared with the S19 series and MicroBT’s M30 series. Minehan said she doesn’t expect the T19 model “to have a huge impact that’s an immediate cause of concern,” as “most likely this is a run of <3500 units of a particular bin quality.” Similarly, Mark D’Aria, the CEO of crypto consulting firm Bitpro, told Cointelegraph: “There isn’t a strong reason to expect the new model to significantly affect the hashrate. It might be a slightly more compelling option to a miner with extraordinarily inexpensive electricity, but otherwise they likely would have just purchased an S19 instead.” Bitmain continues to hold leadership despite internal struggle At the end of the day, manufacturers are always in an arms race, and mining machines are simply commodity products, Zhang argued in a conversation with Cointelegraph: “Besides price, performance, and failure rate, there are not many factors that can help a manufacturer differentiate from the others. The relentless competition led to where we are today.” According to Zhang, as the iteration rate naturally slows down in the future, there will be more facilities using “creative thermal design such as immersion cooling,” hoping to maximize the mining efficiency beyond just using most powerful machines. As for now, Bitmain remains the leader of the mining race, despite having to deal with the largely defunct 17 series and an intensifying power struggle between its two co-founders, Jihan Wu and Micree Zhan, which recently resulted in reports of a street brawl. “Due to its recent internal issues, Bitmain is facing challenges to keep its strong position in the future thus they started to look at other things to expand its industry influences,” Xu told Cointelegraph. He added that Bitmain “will still dominate the industry position in the near future due to its network effect,” although its current problems might allow competitors such as MicroBT to catch up. Earlier this week, the power struggle inside Bitmain intensified even further as Micree Zhan, an ousted executive of the mining titan, reportedly led a group of private guards to overtake the company’s office in Beijing. Meanwhile, Bitmain continues to expand its operations. Last week, the mining company revealed it was extending its “Ant Training Academy” certification program to North America, with the first courses set to launch in the fall. As such, Bitmain seems to be doubling down on the U.S.-based mining sector, which has been growing recently. The Beijing-based company already operates what it classifies as “the world’s largest” mining facility in Rockdale, Texas, which has a planned capacity of 50 megawatts that can later be expanded to 300 megawatts.
Why is the RandomX algorithm being hyped to the moon?
TL;DR: don't assume the average return from mining RandomX will be higher than the current CryptonightR algorithm. Hold back your excitement for now. I think we all need to bring something to our attention. Over the last month, there have been so many topics and comments here on MoneroMining about the new 'RandomX' algorithm. This algorithm is supposed to be launched a couple of months from now. There are many questions like "is this a good hashrate for my CPU"? "What's your power usage on RandomX"? "How can I tune my CPU for RandomX"? "How would the algorithm perform on this hardware"? I think these are great constructive comments that are at the heart of what miners stand for. We miners love optimizing our rigs and educating ourselves on technological trends. But I've noticed many questions such as "what parts should I buy for a RandomX mining rig"? "Is an AMD Ryzen 9 3900x a good investment"? "What parts will give me the most profit when RandomX launches"? Many of these questions are asked with very little research. I think there's a gold fever brewing behind some of these comments. The kind of motives that have bankrupted many miners in the past bubbles. As we have seen in 2014 and 2018, anybody who enters the crypto industry with an 'I want easy profit' attitude almost always goes bankrupt. They buy coins or hardware at the peak of the bubble. Sometimes they get lucky and sell their coins or rigs right before the crash (only to get burned in a future bubble later). But most of the time, these new users lose most of their investment. As a veteran miner, a lot of alarm bells ring in my head when I read these kinds of RandomX hype posts. I have no reason to think CPU mining will be more profitable on RandomX than on the current CryptonightR.
If the new AMD CPUs are very efficient on RandomX, that just means more people will buy them, driving up the difficulty. Your shiny R9 3900x's profit will start falling because it's no longer as competitive against the other hardware on the network.
If the profits on day 1 of the RandomX launch are indeed high, more people will start adding rigs to the network. If the average miner's profit is above the equilibrium of the market, it will start going down. That equilibrium is largely set by botnets, large scale farms in China/Russia/Niagara Falls/Georgia, and datacenters with spare capacity. So if your R9 3900x earns $10/day on day 1, you can count on that golden streak ending soon.
CPU mining as a market is never stable. Your CPU rig is limited tojust 1 or 2 coins: Monero and Veruscoin. Edit: there are a few more CPU coins than these. AMD GPUs can at least mine 3 or 4 coins well, while nVidia GPUs are the best at 5-10 different algorithms. GPU mining is a safer, less risky investment. GPU mining is like playing blackjack. Building a rig specifically for CPU mining is like tossing a coin. You're locked into one coin by building a CPU rig. Yes, it has resale value to gamers, but it's much harder to resell a MOBO combo than a bunch of GPUs at any price. Trust me, I've sold hundreds of GPUs and dozens of MOBOs before!
I don't know what the market share of CPUs vs. GPUs on CryptonightR is right now. But if most of the current nethash is made up of CPUs, these CPUs will have no choice but to switch to RandomX when it is out. There's no other coin for them to mine, unless they have some work to do outside of mining. So almost all of them will get onto the RandomX network, too, along with your expensive new CPU rig. I think this'll be the biggest factor driving up difficulty. Yes, the older CPUs might not be as efficient as the new Ryzens, but many of them are already paid for in terms of capital (like in a datacenter) or have free power (like in a botnet or apartment with free power).
You might say that Monero will always be profitable enough because it has survived so long, or the developers are better, or they're taking action against ASICs. But that doesn't necessarily guarantee profit. Monero might be a successful coin and overtake ETH, but that has nothing to do with profit on the network. Even though Bitcoin's really successful, you're guaranteed to lose money if you buy the latest Antminer and run it at residential power rates. Meanwhile, Dogecoin back in the day had awesome profits even though it was a blatant fork of LTC with few improvements.
Your new RandomX rig might look like it has decent "ROI" to you, but that doesn't mean it was the best investment. You might have been better off building a GPU rig and mining Grincoin or Ravencoin. I.E. if you build a RandomX rig, you're earning less profit for the same amount of capital invested. And even if you earn the same return, you still took a higher risk than if you built a GPU rig (see the point above).
In the GPU mining community, I have the feeling that there's a lot of resentment over the 2018 crypto recession and the whole 'ASIC miner invasion'. I think people here are feeling burned over their losses last year and the evil ASIC takeover, and want an opportunity for the little guy to start mining again. So we're falsely seeing the RandomX ray of hope as a floodlight, and getting overexcited. And in general, the ordinary person cannot make a significant, steady profit in the crypto mining industry. The guy who wrote that thread is very rich and even 100 GTX 1080 Ti's cost nothing to him. The reason he became wealthy is because he avoided get-rich-quick gimmicks back in the day (like the dotcom sites) and focused on learning technology for the future. Mining will not make you rich, and especially not RandomX coin tossing. If you love RandomX, build your rig now, keep benchmarking and undervolting and have fun at it. But if you just want profit, wait until RandomX is up and running. And consider all the risks involved with a new algorithm and commercial mining in general. So I hope we can all reconsider whether we're excited about RandomX for the right reasons. Let's try to avoid jumping to conclusions about profitability and hold off on the Newegg 'checkout' button. Even though 12 cores at 70 watts sounds awesome. Happy mining!
Introduction: Greetings, fellow ethtraders! Happy New Year! In the next few months, taxpayers across the US will be filing their 2017 tax returns. As an Enrolled Agent and a ETH/cryptocurrency investor and enthusiast, I wanted to write up a brief guide on how your investments in ETH and other cryptocurrencies are taxed in the US.
1. Are ETH/cryptocurrency realized gains taxable? Yes. The IRS treats virtual currency (such as cryptocurrency) as property. That means if you sell ETH, BTC, or any other cryptocurrency that has appreciated in value, you have realized a capital gain and must pay taxes on this income. If you held the position for one year or less, it is a short-term capital gain which is taxed at your ordinary income tax rate. If you held the position for more than one year, it is a long-term capital gain which is taxed at your long-term capital gains tax rate. In most cases, this is 15%, but could also be 0% or 20% depending on your specific ordinary income tax bracket.
2. If I sell my ETH for USD on Coinbase but do not transfer the USD from Coinbase to my bank account, am I still taxed? Yes. The only thing that matters is that you sold the ETH, which creates a taxable transaction. Whether you transfer the USD to your bank account or not does not matter.
3. If I use my ETH to buy OMG or another cryptocurrency, is this a taxable transaction? Most likely yes. See #4 below for a more detailed explanation. If assuming crypto to crypto trades are not able to be like-kind exchanged, then continue on to the next paragraph here. This is actually two different transactions. The first transaction is selling your ETH for USD. The second transaction is buying the OMG with your USD. You must manually calculate these amounts. For example, I buy 1 ETH for $600 on Coinbase. Later on, the price of 1 ETH rises to $700. I transfer that 1 ETH to Bittrex and use it to buy 37 OMG. I have to report a capital gain of $100 because of this transaction. My total cost basis for the 37 OMG I purchased is $700.
5. How do I calculate the realized capital gain or loss on the sale of my cryptocurrency? The realized gain or loss is your total proceeds from the sale minus what you purchased those positions for (your cost basis). For example, you bought 1 ETH for $300 in June of 2017. In December of 2017, you sold that 1 ETH for $800. Your realized gain would be $800 - $300 = $500. Since you held it for one year or less, the $500 would be a short-term capital gain taxed at your ordinary income tax rate.
6. Which ETH's cost basis do I use if I have multiple purchases? The cost basis reporting method is up to you. For example, I buy my first ETH at $300, a second ETH at $530, and a third ETH at $400. Later on, I sell one ETH for $800. I can use: FIFO (first in first out) - cost basis would the first ETH, $300, which would result in a gain of $500. LIFO (last in first out) - cost basis would be the third ETH, $400, which would result in a gain of $400. Average cost - cost basis would be the average of the three ETH, $410, which would result in a gain of $390. Specific identification - I can just choose which coin's cost basis to use. For example, I can choose the second ETH's cost basis, $530, which would result in the lowest capital gains possible of $270.
7. If I end up with a net capital loss, can I claim this on my tax return? Capital gains and capital losses are netted on your tax return. If the net result of this is a capital loss, you may offset it against ordinary income on your tax return, but only at a maximum of $3,000 per year. The remaining losses are carried forward until you use them up.
9. If I mine ETH or any other cryptocurrency, is this taxable? Yes. IRS Notice 2014-21 states that mining cryptocurrency is taxable. For example, if you mined $7,000 worth of ETH in 2017, you must report $7,000 of income on your 2017 tax return. For many taxpayers, this will be reported on your Schedule C, and you will most likely owe self-employment taxes on this income as well. The $7,000 becomes the cost basis in your ETH position.
10. How do I calculate income for the cryptocurrency I mined? This is the approach I would take. Say I mined 1 ETH on December 31, 2017. I would look up the daily historical prices for ETH and average the high and low prices for ETH on December 31, 2017, which is ($760.35 + $710.12) / 2 = $735.24. I would report $735.24 of income on my tax return. This would also be the cost basis of the 1 ETH I mined.
11. Can I deduct mining expenses on my tax return? If you are reporting the income from mining on Schedule C, then you can deduct expenses on Schedule C as well. You can deduct the portion of your electricity costs allocated to mining, and then you depreciate the cost of your mining rig over time (probably over five years). Section 179 also allows for the full deduction of the cost of certain equipment in year 1, so you could choose to do that if you wanted to instead.
12. If I receive ETH or other cryptocurrency as a payment for my business, is this taxable? Yes. Similar to mining, your income would be what the value of the coins you received was. This would also be your cost basis in the coins.
13. If I received Bitcoin Cash as a result of the hard fork on August 1, 2017, is this taxable? Most likely yes. For example, if you owned 1 Bitcoin and received 1 Bitcoin Cash on August 1, 2017 as a result of the hard fork, your income would be the value of 1 Bitcoin Cash on that date. Bitcoin.tax uses a value of $277. This value would also be your cost basis in the position. Any other hard forks would probably be treated similarly. Airdrops may be treated similarly as well, in the IRS' view. Here are a couple more good articles about reporting the Bitcoin Cash fork as taxable ordinary income. The second one goes into depth and cites a US Supreme Court decision as precedent: one, two
14. If I use ETH, BTC, or other cryptocurrency to purchase goods or services, is this a taxable transaction? Yes. It would be treated as selling your cryptocurrency for USD, and then using that USD to purchase those goods or services. This is because the IRS treats cryptocurrency as property and not currency.
15. Are cryptocurrencies subject to the wash sale rule? Probably not. Section 1091 only applies to stock or securities. Cryptocurrencies are not classified as stocks or securities. Therefore, you could sell your ETH at a loss, repurchase it immediately, and still realize this loss on your tax return, whereas you cannot do the same with a stock. Please see this link for more information.
16. What if I hold cryptocurrency on an exchange based outside of the US? There are two separate foreign account reporting requirements: FBAR and FATCA. A FBAR must be filed if you held more than $10,000 on an exchange based outside of the US at any point during the tax year. A Form 8938 (FATCA) must be filed if you held more than $75,000 on an exchange based outside of the US at any point during the tax year, or more than $50,000 on the last day of the tax year. The penalties are severe for not filing these two forms if you are required to. Please see the second half of this post for more information on foreign account reporting.
17. What are the tax implications of gifting cryptocurrency? Small gifts of cryptocurrency do not have a tax implication for the gift giver or for the recipient. The recipient would retain the gift giver's old cost basis, so it could be a good idea for the gift giver to provide records of the original cost basis to the recipient as well (or else the recipient would have to assume a cost basis of $0 if the recipient ever sells the cryptocurrency). Large gifts of cryptocurrency could start having gift and estate tax implications on the giver if the value exceeds more than $14,000 (in 2017) or $15,000 (in 2018) per year per recipient. Here's a good article on Investopedia on this issue. An important exception applies if the gift giver gives cryptocurrency that has a cost basis that is higher than the market value at the time of the gift. Please see the middle of this post for more information on that.
19. Are there any websites that you recommend in helping me with all of this? Yes - I have used bitcoin.tax and highly recommend it. You can import directly from an exchange to the website using API, and/or export a .csv/excel file from the exchange and import it into the website. The exchanges I successfully imported from were Coinbase, GDAX, Bittrex, and Binance. The result is a .csv or other file that you can import into your tax software. I have also heard good things about cointracking.info but have not personally used it myself.
20. Taxation is theft! I can't help you there.
That is the summary I have for now. There have been a lot of excellent cryptocurrency tax guides on reddit, such as this one, this one, and this one, but I wanted to post my short summary guide on ethtrader which hopefully answers some of the questions you all may have about US taxation of ETH and other cryptocurrencies. Please let me know if you have any more questions, and I’d be happy to answer them to the best of my ability. Thank you! Regarding edits: I have made many edits to my post since I originally posted it. Please refresh to see the latest edits to my guide. Thank you.
Disclaimer: The information contained within this post is provided for informational purposes only and is not intended to substitute for obtaining tax, accounting, or financial advice from a professional. Any U.S. federal tax advice contained in this post is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law. Presentation of the information via the Internet is not intended to create, and receipt does not constitute, an advisor-client relationship. Internet users are advised not to act upon this information without seeking the service of a tax professional.
Jan 17, 2018 - Explore PIRATEPOPCORNUK's board "bitcoin mining rigs" on Pinterest. See more ideas about Bitcoin mining rigs, Bitcoin mining, Bitcoin. Massive Bitcoin mining rig earns $8 million per month Generating a small town's worth of electricity and a petahash of processing power, a Bitcoin mine in Washington is making its operators ... Best mining rigs and mining PCs for Bitcoin, Ethereum and more By Matt Hanson , Brian Turner 14 September 2020 If you still fancy mining cryptocurrencies, these are the best pre-built rigs and PCs The list below details the biggest Bitcoin mining pools. This is based on info from Blockchain’s pool share chart: We strongly recommend new miners to join Poolin or Slush Pool. 1. Poolin . Poolin is a public pool which mines about 18% of all blocks. They are based in China, but have a website fully available in English. 2. F2pool. F2Pool is based in China. It mines about 17% of all blocks ... While mining was easier for everyone for anyone with a computer when Bitcoin debuted in 2009, enthusiasts now need large-scale networked computers to do the work, and cheap electricity is key.
Best Bitcoin Mining Rigs in 2020 New 110 TH/s Antminer ...
Best Bitcoin Mining Rigs in 2020 New 110 TH/s Antminer S19 Pro BTC Mining Profitability - Duration: 14:47. VoskCoin 27,780 views. 14:47. The virtual goldrush to mine Bitcoin and other cryptocurrencies leads us to Central Washington state where a Bitcoin mine generates roughly $70,000 a day min... Here's the first part in the series on how to build the best RGB-laden (or not, it's a free country) mining rig possible. We got part selection up first toda... SUBSCRIBE FOR MORE HOW MUCH - http://shorturl.at/arBHL Nviddia GTX 1080 Ti - https://amzn.to/2Hiw5xp 6X GPU Mining Rig Case - https://bitcoinmerch.com/produc... I had the opportunity to sit down with one of the partners invested in an $80,000 mining rig pulling in $6,000 -$8,000 per month. Hopefully, these answers wi...