PALM BEACH, Florida, September 6, 2018 /PRNewswire/ --
MarketNewsUpdates.com News Commentary
Cryptocurrency miners lately have been taking proactive measures to drastically reduce the costs of cryptocurrency mining, as hashrates reach historic highs and prices struggle to move beyond market resistance. Bitcoin's price was above $8,000 at the end of July. By the middle of August, the cryptocurrency was down to around $6,500. With the slump in prices and the extraordinary energy consumption it takes to mine the coins, Fortune revealed that mining a Bitcoin cost as much as buying one. While crypto markets have yet to attain wider adoption, its underlying blockchain technology continues to attain more traction as companies, large or small, public and private alike, are continually able to see it as a viable application for a variety of uses in a multitude of sectors. As such, optimism is riding high on blockchain technology becoming more and more prevalent. Active companies today include: Block One Capital Inc. (TSX-V:BLOK) (OTC:BKPPF), Riot Blockchain Inc. (NASDAQ:RIOT), Seven Stars Cloud Group Inc. (NASDAQ:SSC), HIVE Blockchain Technologies Ltd. (TSX-V:HIVE) (OTC:HVBTF), Global Blockchain Technologies Corp. (CSE:BLOC) (OTC:BLKCF).
Block One Capital Inc. (TSXV:BLOK.V) (OTCQB:BKPPF) BREAKING NEWS: Block One Capital, an investment company focused on high growth opportunities in the blockchain sector, is pleased to announce that its Chief Technology Officer, Dr. Pratheev Sreetharan (PhD Harvard University), and Director of Research, Dr. Sivakumar Arumugam (PhD Columbia University), have published a revealing analysis of the bitcoin mining sector utilizing publicly available global hash rate information.
Their research paper highlights the following realities of Bitcoin mining (The research paper can be found on Block One Capital's website at http://www.blockonecap.com):
1) As more and more new Bitcoin miners come on line, the rapid rise in global hash rate rates is leading to a rapid fall in the number of expected Bitcoins to mined by mining hardware.
2) Profitability of mining machines is falling quickly over time.
3) At an exchange rate of $10,000 per Bitcoin, a miner operating with an average cost structure will be unable to achieve profitably within a few months.
4) Mining hardware is most profitable in its first days of operations.
5) Delays in the deployment of mining equipment has a huge impact on revenue generation.
6) Investing in new mining equipment currently will likely not produce very good future returns.
Dr. Sivakumar Arumugam concluded, "The striking divergence between the global hash rate and Bitcoin prices suggests that mining is becoming increasingly unprofitable."
The review of publicly available data reveals that the global hash rate has been increasing at a steady exponential rate in recent months. As adjustments to the hash rate may take several more months to work themselves out, Dr. Arumugam added that "Purchasing new equipment now is unlikely to give a positive rate of return."
"I am grateful to have had the guidance of a strong research team in our decision-making process over the last couple of months," said Sothi Thillairajah, CEO of Block One Capital. "The conclusions of the study support our early decision to exit the Bitcoin mining business." Read this and more news for Block One Capital at: http://www.marketnewsupdates.com/news/blok.html
In other industry news and developments:
Riot Blockchain Inc. (NASDAQ:RIOT) recently announced that its subsidiary RiotX Holdings Inc ("RiotX") has entered into a Software License and Services Agreement (the "Agreement") with goNumerical Ltd. (dba "Coinsquare") to provide a RiotX branded version of the Coinsquare platform with customized functional integrations and associated transaction processing services for use by RiotX. RiotX has obtained an exclusive license for the U.S. market through this partnership with Coinsquare. The Company intends to provide this offering for select customers at RiotX.com. RiotX has been investigating and pursuing the regulatory pathway for the launch of a cryptocurrency exchange in the United States since the start of the year. The Agreement with Coinsquare finalizes a key component in the ability to offer certain customers in the United States a proven platform that prides itself on security and customer experience. Coinsquare has built itself into a market leader in Canada since launching in 2015, and has successfully raised over CAD $50 million in the past twelve months with prominent investor participation.
Seven Stars Cloud Group Inc. (NASDAQ:SSC) earlier this week announced its acquisition of Grapevine Logic Inc., a world leading end-to-end influencer marketing platform. Grapevine will play a pivotal role in SSC's consumer asset digitization strategy. This acquisition is integrally linked with SSC's 4+2+1 Strategy to drive growth across its core product areas which are-1) Fixed Income-based Financial Digital Assets, 2) Consumer Tech Digital Assets, 3) Commodity and Energy Digital Assets, and 4) TradeTech Digital Assets. Targeting the Social Media Influencer market, estimated to have reached a market size of $2 billion in 2017, Grapevine has become a world leader in facilitating the collaboration between advertisers/brands and video-based social influencers/content creators. Through the Grapevine platform, more than 4,700 brands -- including many of today's leading Fortune 500 consumer brands in Beauty, Fashion, Women's Lifestyle, Gaming, Consumer Electronics, Cooking, Nutrition, Men's Lifestyle, Sports, Exercise and several other secondary verticals -- have been able to engage with over 177,000 social influencers, reaching more than 3.2 billion followers, ultimately helping these companies promote their products and strengthen their brands.
HIVE Blockchain Technologies Ltd. (TSX-V:HIVE.V) (OTCPK:HVBTF) recently announced it will launch 200 Petahashes ("PH") of cloud based SHA-256 mining power ("Cloud Mining") in September 2018 . The Cloud Mining is an amendment to the terms of HIVE's previous December 2017 agreement with Genesis Mining Ltd. ("Genesis") to add 200 PHs of SHA-256 capacity in Sweden. Under the revised agreement, 200 PHs will be provided pursuant to a cloud hosting arrangement until delivery of the mining rigs occurs within the next twelve months. The amendment allows for lower operating costs than was previously expected of taking delivery of the miners in Sweden and gives HIVE flexibility to install the future delivery of the mining rigs in an advantageous region, which is anticipated to be in a facility in North America. As previously announced, production is expected to commence on September 30, 2018.
Global Blockchain Technologies Corp. (CNQ:BLOC.CN) (OTCPK:BLKCF) recently announced two major developments in its exchange division. First, Hyperion Crypto Exchange Inc.'s ("Hyperion") investment into the Delaware Board of Trade ("DBOT"), which will enable BLOC to leverage DBOT's SEC-registered Alternative Trading System ("ATS") for trading tokenized securities. Second, the Laser network's whitelist has been made public as of August 21st, with its crowdsale's launched on September 3rd, 2018. Hyperion is a security token exchange which performs the same functions as a stock exchange, but with the use of blockchain technology to automate processes otherwise performed by third parties such as clearinghouses, thus improving speeds and lowering costs. BLOC owns 12.82% of Hyperion's total issued and outstanding share capital. Aside from offering investors the benefit of trading securities in the form of tokens on a blockchain, Hyperion's strategic investment into DBOT will enable it to become part of DBOT's SEC-registered ATS, providing investors with the protections of federal securities law and regulatory oversight. The SEC has emphasized the importance of this in a public message released this past March about potentially unlawful online digital asset trading platforms, all of which lack SEC registration.
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