Over the past few days, videos of crypto mining companies throwing away bitcoin miners on the street circle around. For some, the videos are a hoax, showing the situation in China after a flood destroyed thousands of mining rigs. But in today’s blockchain news, we will explain why this isn’t the case.
Some of the videos come from China where the low energy rates provided decent profit for the mining firms. However after the price dropped, the companies started to feel the pressure from the long bear market. They realized that the miners can no longer make a profit from using the machines and they also believe that these devices can’t ever be profitable again.
While talking to Asia Crypto Today, Hu Jie of Si Hua Mining which is a local ASIC supplier thinks that the videos that circle around the internet are true but, that the miners are dumping older generation devices and that this is a very common practice with technology:
“Of course old models are out of the game, like the picture shows. But that doesn’t represent the majority. Electronics become outdated easily. For example, smartphones like iPhone 3, 4, of course they can be sold by the pound. It’s normal life cycle.”
Unlike GPU chips that can be repurposed, ASIC chips are programmed only for a single application and they can get obsolete much more quickly.
Bitcoin’s hash rate has dropped in the past several weeks but this isn’t concerning according to eToro’s Senior Market Analyst Mati Greenspan.
Analysts Confirm: The Bomb Threats Aren’t The Reason For The BTC Price Drop
“Please be advised – there is an email being circulated containing a bomb threat asking for bitcoin payment. While this email has been sent to numerous locations, searches have been conducted and NO DEVICES have been found.”Also, it is highly unlikely that the bomb threats cause the price to decline because the closing of the investigation would lead for the value of BTC to rise since there were no devices discovered that were connected to the bomb threats.
Coinbase Adds PayPal Withdrawals To Its Platform (For U.S. Citizens)
“There is new technical work to make this possible, and that was done in conjunction with PayPal.”However, this Friday Osgood wrote that the partnership provides Coinbase customers an alternative to the traditional federal wire or automated clearing house (ACH) network that they were required to use. As he said:
“These traditional finance networks can add up to two business days to a withdrawal. We’re always looking for ways to not only meet the bar set by traditional finance, but raise it. That’s why we rebuilt our integration to ensure that the speed and reliability of PayPal withdrawals does just that.”The service is for now only available to customers in the United States, but could continue to be added to other nations across 2019, as Osgood wrote.
Bitcoin Plunges To A Yearly Low, Market Is ‘Prepared’ To Go Below $100 Billion
“As BTC is approaching the target of the 2014 fractal the targets of most people change from 3k to 1k and even lower. I still think $2,700 is an excellent place to buy if we should go there. ‘History doesn’t repeat itself but it often rhymes.’”Currently, there is a big risk in shorting and longing Bitcoin and other major cryptocurrencies in the market, which is why investors are observing the short-term trend of the crypto market by holding out on their trading activity.
Circle CEO: ‘’Bitcoin Will Be Worth A Great Deal More Than Today’’
“I don’t make significant price predictions. But it’s certainly going to be worth a great deal more than it’s worth today. I am long in the market.”Allaire says that the people who lost a ton of money in the bear market will only get back into the game because of the fundamentals of cryptocurrencies and that they won’t change despite the downturn in prices. He also believes that bitcoin plays a huge role as a non-sovereign store of value. Allaire continued to explain:
“The key thing with bitcoin is that it is unique in its security and its scale. As an idea that we need a scarce, non-sovereign store of value that individuals can hold in a protected fashion — that’s attractive all around the world.”However, he thinks that some of the digital currencies will eventually die off due to overcrowding of the market but this doesn’t mean that if one digital currency succeeds that the rest will cease to exist. When asked about the burning question of regulation, he says that the United States has one of the most transparent regulation since most of the digital currency and banking systems have already been regulated, many of which this year only. Circle is already regulated under the Bank Secrecy Act and money transmission laws and this is a very important element for all the customers and users.
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