Crypto miner Canaan will be listed in the US in November

In July, Chinese crypto-mining service giant Canaan Creative filed for an IPO in the U.S., seeking to raise $200 million from investors. Now it is reported that the company will be listed by the middle of November.

According to a source, Canaan is expected to issue 1.26 billion shares which have been available for subscription starting on October 6, and will close on October 20.

The Chinese cryptocurrency mining giant set a valuation of between $2 billion and $3 billion after issuing the 1.26 billion shares. Should the company follow through with plans to be listed in November, they would become the first of the three Chinese crypto mining giants to go public within the country, jumping ahead of Bitmain and Ebang. All three have filed for an IPO application to go public in Hong Kong, but Canaan recently let their application lapse without continuing the process.

In a statement, Kong Jianping, the co-lead director of Canaan, explained that the United States Securities and Exchange Commission (SEC) has a very good understanding of both blockchain and cryptocurrency. This makes it easy for the company to remain compliant with regulations once they go public in the country.

While it looks like a done deal and the U.S., Canaan has not had a lot of success with IPOs. In 2016, they tried to list on the Shenzhen Stock Exchange using a backdoor listing. This effort was thwarted when they were unable to meet the regulatory requirements.

A year later, they submitted an IPO listing application to the NEEQ but would abandon their efforts in less than a year after finding the policy environment impossible to work with. Undeterred, they filed an application with the Hong Kong exchange in May 2018, but the company allowed it to lapse six months later.

It appears that their efforts now have been solely dedicated to getting up and running in the U.S. before attempting to file for an IPO in other countries.

Canaan was founded in 2013 and is known for producing the first crypto mining hardware in China, the Avalon miner. This miner is customized with superfast ASIC chips which has nearly removed computer mining from the process.

In 2017, the company reported that they shipped nearly 300,000 of these bitcoin mining machines across the globe. That gives them 20.9% of the entire global market share and they are currently the second-largest producer of all cryptocurrency miners.

Massive fire disrupts Chinese BTC mining operation

The BTC blockchain experienced some anomalies on September 30, and a massive disruption to a Chinese mining farm might have played a role. Early reports indicate an Innosilicon mining farm burst into flame, causing them to lose millions in hardware and possibly throwing the whole BTC network into disarray.

The fire was first reported on Twitter by user @OGTBC, and later picked up by Dovey Won who found a video of the fire:

As Wan notes, $10 million worth of hardware may have been lost in the blaze, which occurred at an undisclosed location in China. That would be a huge blow to the mining firm if true, as they had also announced the same day a delay to their next shipment of mining hardware to external customers.

Although not confirmed to be related, at roughly the same time, strange things were happening on the BTC chain. Normally, an average time in between new blocks is 10 minutes. But as this fire was ranging, the next new block didn’t appear for approximately two hours, a remarkable event that would land solidly in the top dozen longest gaps between blocks.

Ethereum World News noted that this caused a drop from 91 exahashes to 90, but could have been significant enough to have a factor on the block time. At the same time though, the difficulty of mining a new block continues to increase.

CoinGeek reached out to Ilya Bruman, CEO of Minery, to ask for comment on the fire. “We offer sincere condolences and sympathy to our Chinese colleagues. It can happen to anyone,” Bruman began. “I don’t think there is any connection between this fire and drop of hashrate.”

Bruman went on to explain the current trend in BTC hashrates:

Hashrate started to drop from 108 EH immediately after the price of BTC dropped down to 8000 USD. If the measures of fire are correct, then I assume that burnt equipment produced the hashrate between 0,5 EH and 1 EH. Which is not affecting the network dramatically.

When asked how a mining operation typically guards against this type of calamity, Bruman noted, “First of all we have fire extinguishing systems on all of our sites. Second, we secure our sites and our client’s equipment.”

Editor’s note: This article has been updated with quotes from Ilya Bruman, CEO of Minery

BTC on a collision course with disaster

As SegWitCoin (BTC) continues to hover around the $10,000 mark and investors demand more utility from the cryptocurrency, miners are piling on hash rate to meet demand. What many are choosing to ignore though is that a crisis point for miners is coming, one that could crash the entire BTC market.

As Cointelegraph recently reported, BTC hash rates have topped 94 quintillion hashes per second, and will quickly approaching a milestone figure of 100 quintillion. This means that more mining power is being applied to the BTC blockchain, and the climb in hash rate has coincided nicely with the steady climb of BTC in 2019. A higher price in BTC is attracting miners, seeking profits from block rewards.

If you believe the promoters of BTC, this is all good news, and signifies a shift from fiat to BTC.

This celebration of the “good times” in BTC is blind to a fairly obvious dead-end that is coming in just a few months: Because BTC can’t scale, the expected May 2020 halving of block rewards will destroy miner incentives.

Currently, 12.5 BTC is the reward for successfully mining a block. After the halving, that reduces to 6.25 BTC. Although many people could hype you into believing different, halving has nothing to do with the price of the coin. This has been proven repeatedly in the past; the halving is simply baked into the price.

Even at the current reward rate, miners found it difficult to make a profit until BTC prices recovered to near where it’s currently at. When that price is halved, their rewards won’t cover their costs.

Of course, scaling solves this problem, as Bitcoin SV (BSV) is proving. With massive blocks, more transactions can fit in each block, and transaction fees are supplanting block rewards as the economic incentive of miners. Even with the next halving, transaction fees will make it worthwhile for miners to continue working on the BSV chain.

Making things worse, the BTC community will be caught in a terrible choice. If mining power drops off and hash rate declines, the network will remain congested, expensive and slow, providing no utility at all to its users. The price will decline as users find even basic use of BTC futile.

But if mining power continues at its current rate and difficulty continues to increase, the existing mining hardware of many operations will be incapable of mining new blocks, forcing them to pay for costly upgrades to continue mining a reduced reward. Then they can potentially continue mining at a loss after a costly upgrade.

This is all a consequence of BTC development continuing without a thought for mining incentives. As block rewards have been seen as enough, the entire network has been dependent on market prices, rather than any real utility.

BSV has already solved this problem by keeping miners at the top of mind. Increasing block sizes will mean more transaction fees, which will continue to incentivize miners for long to come.

Squire agrees to purchase companies with cloud computing assets totaling approx. 2,982 petahash to become one of the world’s largest public blockchain computing companies

VANCOUVER, British Columbia (GLOBE NEWSWIRE) — Squire Mining Ltd. (CSE:SQR | FWB:9SQ | OTCQB:SQRMF) (“Squire”) is pleased to announce that, further to its press release dated May 30, 2019, on August 29, 2019, Squire entered into a definitive share purchase agreement (the “Agreement“) with Mr. Calvin Ayre, Cunning Hams Limited (“Cunning Hams”), Tansley Equipment Limited (“Tansley”) and Woodland Technology Group Inc. (“Woodland”, and together with Cunning Hams and Tansley, the “Companies”) to purchase all of the issued and outstanding shares of the Companies (the “Transaction”). The Companies own and operate a fleet of cloud computing assets in Canada, the United States and China, representing approximately 2,892 petahash per second of computing power.

As consideration for the Transaction, Squire has agreed to: (i) issue to Mr. Ayre 80,000,000 common shares (the “Common Shares”) in the capital of Squire; (ii) issue to Mr. Ayre 827,000,000 non‐voting participating shares (“NVPS”, and together with the Common Shares, the “Shares”), a new class of shares to be created in the capital of Squire, subject to shareholder approval; and (iii) enter into a profit sharing agreement with respect to the assets of Cunning Hams (the “Cunning Hams Operations Agreement”). The aggregate consideration payable to Mr. Ayre in respect of the Transaction will be subject to adjustment for operational pre‐payments made by the Companies for future use of electricity as at the closing of the Transaction (“Closing”).

The board of directors of Squire has obtained a fairness opinion from Canaccord Genuity Corp., the financial advisor of Squire, that, as of the date of their opinion, and subject to the assumptions, limitations, and qualifications on which such opinion was based, the consideration to be paid by Squire pursuant to the Transaction is fair, from a financial point of view, to Squire.

Closing is subject to customary conditions, including: (i) approval of the Canadian Securities Exchange (the “CSE”) pursuant to CSE Policy 8 – Fundamental Changes & Changes of Business in connection with the transactions contemplated by the Agreement; (ii) CSE acceptance of a revised CSE Form 2A Listing Statement of Squire for the relisting of the Common Shares subsequent to the completion of the Transaction (the “Listing Statement”); and (iii) approval by a simple majority of the votes cast by the shareholders of Squire in respect of (a) an amendment to the articles of Squire to create NVPS; and (b) the Fundamental Change (as defined below) (the “Shareholder Approvals”), in each case at a shareholders’ meeting to be called by Squire (the “Shareholders’ Meeting”). Additional information on the status of filing the Listing Statement and the timing of the Shareholders’ Meeting is set out below.

The Companies and the Assets

The Companies, each of which is incorporated under the laws of Antigua and Barbuda, except for Woodland, which is incorporated under the laws of the Province of British Columbia, own and operate 198,621 ASIC blockchain cloud computers (the “units”), representing approximately 2,892 petahash of computing power, which, upon Closing, would make Squire one of the largest publicly traded blockchain computing companies globally, as measured by computing power. The units are all operated by leading hosting providers and are allocated across the United States, Canada, and China.

As part of the Transaction, Squire will also be welcoming to its team certain employees and consultants of CoinGeek Mining & Hardware, an affiliate of Mr. Ayre, involved with the management and operation of the assets.

The Consideration

At Closing, Mr. Ayre will receive 80,000,000 Common Shares and 827,000,000 NVPS of Squire, subject to adjustment. The NVPS, the creation of which is subject to the Shareholder Approvals, will be identical in all respects to the Common Shares other than that they will not be entitled to a vote at meetings of the shareholders of Squire unless required by law. Squire and Mr. Ayre will enter into a comprehensive share exchange agreement (the “Exchange Agreement”) and coattail agreement on or prior to Closing to provide for the Common Shares and NVPS to be treated equally in an event of a take‐over bid and other fundamental transaction.

The Transaction would result in Mr. Ayre having approx. 45% of the voting control of Squire. Under the terms of the Exchange Agreement, if at any time the percentage of Common Shares held by Mr. Ayre falls below 40% of the issued and outstanding Common Shares at that time, a number of NVPS shall be exchanged into an equal number of Common Shares until Mr. Ayre’s percentage ownership is 45% or there are no further NVPS outstanding. The parties have further agreed to amend the unsecured convertible debenture note issued in connection with Squire’s acquisition of Freschette Limited on Closing to provide for the shares issuable upon conversion of the debenture to be NVPS.

The Common Shares and NVPS issued to Mr. Ayre pursuant to the Transaction will be subject to the escrow policies of CSE. Additionally, Mr. Ayre has agreed not to dispose through the facilities of the CSE of any Common Shares or NVPS acquired by him pursuant to the Transaction for three (3) months subsequent to the Closing. Upon any sale of the NVPS, such NVPS shall be exchanged into an equal number of Common Shares of Squire on the closing of such transfer.

Following Closing, pursuant to the Cunning Hams Operations Agreement, Mr. Ayre and Taal Technologies SEZC (“Taal Tech”), the wholly owned operating subsidiary of Squire, will split the profits generated through the use of over 100,000 units owned by Cunning Hams that are located in China on the basis of approximately 65% for Taal Tech and 35% for Mr. Ayre.

Pursuant to the Agreement, Squire will enter into a prepayment agreement note for the repayment of prepaid expenses of the Companies with their hosting providers with respect to future electricity usage (the “PrincipalAmount”), payable in Bitcoin SV (BSV) to Mr. Ayre. Repayment commences one month after Closing and is recurring monthly for 5 months until paid in full. The Principal Amount outstanding from time to time will not bear interest.

Additional Details about the Transaction

The parties expect Closing to occur as soon as possible after the Shareholders’ Meeting. Following Closing, Squire expects to change its name to “Taal Distributed Information Technologies Inc.” and its ticker symbol on the CSE to “TAAL”.

Under the terms of the Agreement, either party may terminate the Agreement if (i) Closing does not occur by October 31, 2019, other than by reason of a material breach by the party terminating the agreement of his/its obligations under the Agreement; (ii) the Shareholder Approvals have not been obtained or if the Meeting in respect of the Shareholder Approvals has not been held by October 31, 2019 or it becomes reasonably apparent that the Shareholder Approval will not be obtained by October 31, 2019; or (iii) if approval of CSE in respect of the Transaction has not been obtained by October 31, 2019 or it becomes reasonably apparent that such approval will not be obtained by October 31, 2019. In such circumstances, Squire would be obligated to pay to Mr. Ayre liquidated damages equal to USD$1,000,000 and shall have no obligation thereafter.

Prior to Closing, at Squire’s request and subject to certain expense sharing between the parties and indemnification from Squire in respect of any extended period of non‐operation of such units, the Companies will cause certain of the units to be relocated from their current location for strategic reasons. Further information regarding the Transaction will be included in the information circular that Squire will mail in due course to its shareholders in connection with the Shareholders’ Meeting. The Agreement will be filed on the SEDAR profile of Squire on the SEDAR website at www.sedar.com.

CSE Stock Halt

As the Transaction would constitute a “fundamental change” (“Fundamental Change”) of Squire, as defined in CSE Policies, and, pursuant to CSE Policies, Squire’s stock has been halted and will remain halted at least until the meeting materials have been accepted by CSE, sent to shareholders of Squire for approval of the Fundamental Change and posted to CSE website. The halt is considered a Regulatory Halt as defined in National Instrument 23‐101‐Trading Rules.

Update regarding Shareholders’ Meeting

Further to the press release of Squire dated June 30, 2019, since the announcement of the Transaction, Squire has been working towards the completion of the Listing Statement as required pursuant to CSE Policies, a revised draft of which has been re-submitted by Squire to CSE for further review and approval. Squire will announce the new date for the Shareholders’ Meeting in due course.

“We are in the final stages of this long, anticipated transaction and the entire team is solely focused on closing this Transaction. We are working intensely with the regulator and third-party professional services to respond immediately requested revisions to continue to progress towards the finish line. We want to move past this, for us and our shareholders, as we are eager to operate at scale and take on new and exciting challenges that await us,” Angela Holowaychuk, Chief Executive Officer.

Advisors to the Parties

Canaccord Genuity Corp. is acting as exclusive financial advisor to Squire in respect of the Transaction.

Norton Rose Fulbright Canada LLP is acting as legal counsel to Squire. Fasken Martineau DuMoulin LLP is acting as legal counsel to Mr. Ayre, Cunning Hams, Tansley and Woodland.

Canaccord Genuity Corp. will be paid a success fee in connection with the Transaction, further details of which will be disclosed in the information circular in respect of the Shareholder Meeting.

Corporate Update

New Director Appointment

Squire is pleased to announce Michael Cella has joined the board of directors of Squire (the “Board”) as an independent director as of August 23, 2019. Mr. Cella has been appointed to the Board of Squire. Mr. Cella has over 30 years of corporate executive experience and has raised over $4 billion through private and public offerings for progressively larger and more complex companies. Currently Mr. Cella acts as President WCF Holding, LLC a business, financial and project development advisory services firm. Prior to this he was a director, Chief Financial Officer and Secretary of Global Alumina Corporation, a TSX listed company formed to pursue a $5 billion dollar integrated bauxite mine and alumina refinery in the Republic of Guinea. Mr. Cella received his Master of Management degree in Finance and Management Policy, 1980 from J. L. Kellogg Graduate School, Northwestern University. Mr. Cella has been named to the audit committee of the Board, effective immediately.

“I am delighted to join Stefan, Angela and the other members of Squire Mining’s board of directors, and look forward to serving Squire’s shareholders as an independent member of the board as we position Squire to take full advantage of the growing opportunities in blockchain computing.”

Appointment of CEO and President and Corporate Secretary

The Board has resolved on August 13, 2019, that Angela Holowaychuk has been appointed President and Chief Executive Officer, in a permanent capacity, effective immediately. The Board has also resolved, effective August 23, 2019, to appoint Joseph Chin, the Chief Operating Officer of Squire, to the additional position of Corporate Secretary.

About Squire Mining Ltd.

Squire is a Canadian based technology company engaged, through its subsidiaries, in the business of developing and operating cloud computing data infrastructure and system technology to support global blockchain applications related to Bitcoin SV, Bitcoin Core and other associated SHA‐256 derived digital assets.

About CoinGeek Mining & Hardware

CoinGeek Mining & Hardware operates a global fleet of ASIC cloud computers that provide their hash power to secure and scale the Bitcoin SV enterprise‐grade blockchain. CoinGeek’s professional team has developed industry leading practices to ensure its mining fleet operates at peak performance whilst optimizing its cost profile to maximize profitability.

For further information contact:
Angela Holowaychuk
Chief Executive Officer
(Office Telephone: +1 800‐371‐2809)

CSE accepts no responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT REGARDING FORWARD‐LOOKING INFORMATION:

This news release includes “forward‐looking information” as defined under applicable Canadian securities legislation. Forward‐looking information and statements include, but are not limited to, disclosure regarding possible events, that are based on assumptions about future economic conditions and courses of action, and, in certain cases, can be identified by the use of words such as “potential”, “propose”, “aim”, “depend”, “seeks”, “plans”, “expects”, “is expected”, “intends”, “anticipates”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “can”, “could”, “should”, “shall”, “would”, “might” or “will”, or the negative forms of any of these words and other similar expressions. Forward‐looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward‐looking information. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, future demand for Bitcoin SV, Bitcoin Core and other digital assets and risks related to the mining thereof, when and if halving of Bitcoin will take place and the impact such halving will have on profitability, the ability to increase block size and the effects of such increases, integration issues, the timing for release of the halt of trading of the Common Shares on the CSE, personnel and staffing requirements and technological change and obsolescence and risks that the Transaction will not be completed or will not be completed on the same terms or in the time provided or that conditions to closing in respect of the Transaction will not be satisfied including without limitation: required Shareholder Approvals; the timing of when the information circular in respect of the Shareholders’ Meeting will be made available to the shareholders of Squire; the timing of the Shareholders’ Meeting; certain termination rights available to the parties under the Agreement; Squire obtaining the necessary approvals from CSE for the listing of the Common Shares in connection with the Transaction and acceptance of the Listing Statement by CSE, as well as the timing thereof; the timing and completion of the change of name and ticker symbol of Squire; the timing of the completion of the Transaction, and other closing conditions, including compliance by the parties with various covenants contained in the Agreement, statements with respect to the effect of the Transaction on Squire and its strategy going forward, statements with respect to the anticipated benefits associated with the Transaction, the timing and completion of the acquisition of the transaction (on the terms presently contemplated or otherwise), or the negotiation, entering into and completion of any definitive agreements (on the terms presently contemplated or at otherwise). Actual results and future events could differ materially from those anticipated in such forward looking information. Accordingly, readers should not place undue reliance on forward‐looking information. All forward looking information in this news release is made as of the date hereof and qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. Squire disclaims any intention or obligation to update or revise such forward‐looking information, whether as a result of new information, future events or otherwise, except as required by law.

Bigger blocks will make the whole mining network raise its game

It’s an exciting time in the most techy part of the Bitcoin SV ecosystem: as a result of increases in block size, “bubbles are starting to form in the great mining broth,” says mining expert Kristy-Leigh Minehan.

Now CTO of the technology infrastructure company Core Scientific, Kristy-Leigh has been working in crypto mining since the early days of Bitcoin. And she says that the buzz around Bitcoin SV now reminds her of those pioneering times, with the same potential for the future. Back in 2010, she says, “it wasn’t profitable, no-one really did it at scale, and it was also an incredibly exciting time. Bitcoin SV feels like that.” 

In a few years, she expects those involved today will be grateful to have committed to BSV when they did. “Think about how excited miners were in 2017/8, when all of those coins they’d mined in 2012 were suddenly worth a ton. Just imagine you could go back in time and ride that hype wave. You have that opportunity with Bitcoin SV — even though a lot of people don’t realise it.”

The increase in the block size will force changes on the whole mining network, Kristy-Leigh says. For instance, it will require new investment in node infrastructure to increase network propagation because “an insane amount of data” needs to be pushed through the network with big blocks. 

The new investment is “a really good thing” and “is going to end up changing mining as a whole, allowing all chains to end up transacting faster — and hit Visa-like transactions per second.”

Nodes and miners that don’t invest will end up “being left behind with a ton of orphan blocks.” But “that will be a great measure of the network health — telling people you need to step up and specialise.” New miners coming into the ecosystem will invest in the infrastructure first off, to be ready to scale up as the network needs it. 

As for negative stories about the climate-changing impact of crypto mining, Kristy-Leigh insists that they’re completed wrong: Bitcoin mining “is inherently green — the greenest form of energy consumption known to date.” 78% of Bitcoin mining is powered by renewable energy: “that’s really impressive.”

By making use of renewable energy that couldn’t otherwise be sold, the mining business makes sustainable energy economically viable. “Right now mining serves a very powerful purpose of consuming the world’s unused energy. With solar, wind and gas, there is so much unused energy that they cannot sell because the world’s not consuming it.”

In Kristy-Leigh’s view, mining also delivers a range of other benefits, both economic and social. “Mining ends up creating jobs, ends up changing how we consume renewable energy, changing how we build data centres and it’s going to change how we think about distributed computing. And this is just the infrastructure.”

So mining makes a critical contribution to creating the world we’ll soon be living in: “and that’s why I get so passionate about mining because we’re literally building the backbone to a new financial future.”

Watch Kristy-Leigh Minehan’s presentation at the CoinGeek Conference in Toronto last May.

Dr. Craig Wright: Understanding the message of Bitcoin halvings

The reward model of mining Bitcoin was designed not just for a purpose, but to also send a message. That’s the lesson from Dr. Craig Wright’s latest article, Zeno’s Paradoxes and Bitcoin, where he not only explains what that message is, but clarifies what it means for Bitcoin’s future, now being found in Bitcoin SV (BSV).

The Zeno Paradox Wright specifically refers to is the Dichotemy paradox, which states:

That which is in locomotion must arrive at the half-way stage before it arrives at the goal.

– Aristotle, Physics VI:9

In the context of Bitcoin, this refers to the halving of mining rewards over time. In Zeno’s context, the paradox was that an infinite number of halvings sets up an infinite number of tasks, preventing the goal from ever being achieved.

“If we take 100 as an arbitrary amount because percentages are linked to 100, we can now transform the values in a way that has meaning,” Wright notes. “You will notice the block reward in the first four years to have been at 50 bitcoin per block for the subsidy. It then drops to 25, then 12.5; and so on. And I have written them as 50/100, 25/100, et cetera for a reason.”

Wright comments that he set up halving to work this way to specifically signal exactly how much Bitcoin was already mined, and how much remained. “When the block subsidy halved to 25 bitcoin, miners knew at a glance that 50% of the bitcoin that would ever exist had been put out to market and that 25% would be remaining after the current block-subsidy period,” he writes.

What is the message meant to say? Not that halvings should create bumps in value, but rather than they won’t. It’s a signal that mining for block rewards has a lifespan, and that another motivation should take over in the long run.

Unfortunately, those who seek to keep Bitcoin as nothing more than a store of value, specifically the SegWitCoin (BTC) promoters, have flipped the meaning of halvings. “Instead of a Zeno’s paradox, some promoting bitcoin in a Ponzi-like manner arguing that the price will double every halving are subject to the Persian chessboard or the rice and chessboard problem,” he notes.

Specifically, BTC halvings have been pushed as a reason for the price to jump. On the surface, that sounds great for investors and miners alike, as a higher price would mean rewards would be worth more, assuming the price kept climbing with adoption. In practice though, as rewards will eventually halve to the point of worthlessness, without a better business model, miners will drop off, making the blockchain worthless.

The solution to this, as Wright has always envisioned, is in transaction fees. In a massively scaling model, now pursued by BSV, countless transactions take over as a new profit motive for miners, replacing block rewards entirely in the future. “Luckily, we have managed to demonstrate blocks the size of 2 GB on the Scaling Test Network (STN) and will be increasing the capacity further at a level that applications and other development teams can keep up with,” he writes. “In the coming years, we will be running blocks that are in the order of tens of terabytes in size. We will do so at a rate and cost that allow us to subsume all other transactions on the globe. We will do it more securely and inexpensively than PayPal, than Visa, than Mastercard, or than cash.”

As a final note to those who continue to push BTC as the government-averse option, Wright notes that they are totally missing the point. “Bitcoin’s value did not ever lie in subverting government or banks, it lies in Bitcoin’s efficiency,” he concludes.

Media spins Bitcoin mining story to suit their own agenda

Cryptocurrency mining is under attack once again by the media, this time thanks to a scandalous comparison. The University of Cambridge has developed a tool that shows the annual energy used by SegWitCoin (BTC) mining, and it reveals a lot of interesting insights into how the mining industry works, and how wasteful the world is with energy in many ways.

The media response has universally focused on one comparison though: BTC mining consumes more power than Switzerland. That’s certainly the angle the BBC took, and they used a lot of ink to spin this fact into a tirade against the mining industry.

While the tool’s co-creator, Michael Rauchs, clearly told the BBC that they were simply providing data for the world to take its own conclusions from, the media giant specifically chose to go to an expert that would spin this information to make crypto mining look wasteful. Alex de Vries, an accountant from PwC, was quoted by the BBC to show exactly how impotent BTC is.

In their summary of de Vries comments, BTC is shown to process fewer than 100 million transactions per year, insignificant against the world’s 500 billion and growing transactions through traditional financial institutions. He states that BTC uses more energy per transaction thank banks do.

Finally, the article also cites CO2 usage from BTC equaling that of Kansas City, the 38th largest city in the United States.

Now many of these facts can be true about BTC, which has now real use and is used as a store of value by those who are OK with the fact that it’s no longer the real Bitcoin. However, the basic facts about the mining industry, and the potential of the real Bitcoin, now represented by Bitcoin SV (BSV), are very misleading.

For starters, while BTC is incapable of the scaling necessary to make it a useful asset, BSV scales massively, with 128MB blocks already mined on the mainnet, 1.4GB blocks on the scaling test network (STN) and plans for unlimited scaling in the future.

With that scalability, BSV is not only prepared to scale to handle all the transactions of the world, it’s also capable of supporting the Metanet, the data carrier network of the future. By allowing enterprises to use the Bitcoin blockchain as a data tool, and not just a transaction ledger, BSV is providing a utility that will far outweigh its energy costs.

Even then, the energy consumption of mining is easy to exaggerate if you don’t compare it to the comparative consumption of traditional fiat financial industries. A 2017 Bloomberg article titled “No, Bitcoin Won’t Boil The Oceans” covers this well. At the time, crypto mining was estimated to consume 8.27TW per year, much less than the 59.19TW Cambridge says it does now. Elaine Ou wrote:

“That might sound like a lot, but it’s actually less than an eighth of what U.S. data centers use, 1 and only about 0.21 percent of total U.S. consumption. It also compares favorably to the currencies and commodities that bitcoin could help replace: Global production of cash and coins consumes an estimated 11 terawatt-hours per year, while gold mining burns the equivalent of 132 terawatt-hours.”

While that’s already a compelling argument that mining is relatively innocent when compared against the power consumption of fiat and gold, it doesn’t even take into account that of the 59.19TW Cambridge estimates is consumed now, the majority of that is spent on mining useless BTC and criminal dark coins. Take that consumption out, and it’s sure to look much more innocent.

Add to that several facts that BBC flat out ignores. While the world struggles with how to fight climate change, Bitcoin mining companies like Squire have helped push the growth of the renewable energy sector.

Even by Cambridge’s data, the first number on the page is mining energy production versus consumption against the world’s total figures. Mining represents 0.24% of the total production versus 0.27% of the consumption, and that’s a gap that’s likely to shrink and flip over time.

It also shows that Americans absolutely waste four times more energy than the total consumption of mining on a yearly basis, indicating that there are bigger fish to fry.

Mainstream media outlets could be forgiven for not being waist-deep in mining knowledge, and not having the knowledge to know how BSV will change the world, or how Bitcoin mining is actually making a positive difference to the world. However, when they willfully ignore data from their own sources to spin the story they want to tell, and bring in experts to back up that story, they shameful misrepresent the truth, and that’s not OK.

ViaBTC launches BSV mining pool, offers 70% fee discount

ViaBTC launches BSV mining pool, offers 70% fee discount

Crypto mining pool ViaBTC has launched a Bitcoin SV (BSV) mining pool, providing users with the opportunity to mine BSV on the platform for the first time.

In an announcement posted Tuesday, ViaBTC said new miners would qualify for a discount of 70% off fees, with bigger discounts for those with higher hashrates. The deal is part of a launch promotion period which will run until July 23.

The notice, published on the ViaBTC website, said both main and sub-accounts could benefit from the promotional discounts.

“During the promotion, all BSV miners, as long as you’re mining on ViaBTC, are qualified to enjoy a fee discount up to 70% off. Higher discounts come with higher hashrates. Discount is applicable to both main & sub accounts for PPS method. The fees will be resumed as usual after the promotion,” according to ViaBTC. “ONLY main accounts are qualified for the promotion. All the hashrates of sub-accounts will be counted into main account. Please refer to Rules of ‘ViaBTC 3rd Anniversary Toast.’”

From June 13, ViaBTC users will be able to switch mining pools with a single click, with a number expected to convert resources to mining BSV this week. Earnings are paid out according to the user’s choice of cryptocurrency, with support for BSV allowing low-cost, instant transactions to external wallets.

It comes at a time of growing demand for BSV, after posting growth of over 250% in May. With merchants and consumers alike increasingly using BSV for its convenience, cost and massive on-chain scalability, the mining pool launches at a time of aggressive growth in the cryptocurrency.

The news has been warmly welcomed on social media, with Twitter users approving of the ability to withdraw funds in BSV to an external wallet, as well as expressing keen interest in participating in the BSV mining pool.

Founded in 2016, Chinese-based ViaBTC has shifted focus increasingly towards BSV, in the run up to the launch of the mining pool.

ViaBTC changes course on BSV

ViaBTC changes course on BSV

The recent improvement in Bitcoin SV (BSV) is causing many entities to reconsider their position on the cryptocurrency. BSV was the biggest gainer in May, jumping more than 250%, and the crypto community is taking notice. A recent announcement by the ViaBTC mining pool demonstrates a return to reality by many organizations, as they come to grips with the fact that BSV has been more solid than the naysayers tried to make everyone believe with their uneducated guesses.

According to a tweet by ViaBTC’s Haipo Yang from yesterday,” We [received] some demand on mining BSV. We will list BSV on ViaBTC mining pool soon.” And, just like that, BSV increases its foundation.

His comments were met with a lot of support. “Satoshi’s Disciple” responded, “Exactly, if you ignore your customers you will end up losing them to another competitor.” Another Twitter user, Jon Lim, added, “Glad to see you talk with sense. Unlike other BCH proponents.”

CoinGeek founder Calvin Ayre already saw the imminent return of entities like ViaBTC to the real Bitcoin. He previously stated, “I said it publicly when the delist attack happened… [T]hey will all be forced to come back to real Bitcoin as it will be the last platform standing.”

Yang has set the wheels in motion and Bitcoin will continue to thrive. As of this writing, according to CoinMarketCap, BSV is still the only top-15 coin to register gains. Bitcoin Core (BTC) is down 6.79% and Bitcoin Cash (BCH) is down 6.92%. However, BSV is up 3.81%, and has been on an upward climb continuously over the past week.

Major BSV supporter and development group nChain sees Yang’s comments as proof positive of how the Bitcoin ecosystem is evolving and recognizing things for how they truly are. The chairman of the board for nChain, Stefan Matthews, asserts, “Haipo Yang believes Craig Wright is Satoshi Nakamoto. Haipo told me so explicitly on August 22, 2017 when I had a meeting at his office in Shenzhen, China; this was just a few weeks after the BCH hard fork split from BTC. That’s why, during last year’s Bitcoin Cash hash war, it was dumbfounding to see Haipo oppose the man who birthed Bitcoin and the entire industry from which Haipo and so many others make their livelihood. I suppose monetary incentives always win out, and it’s ironic to now see Haipo and ViaBTC ready to add BSV support because of demand from miners in their pool.”

The Bitcoin Vision: Episode 9

The Bitcoin Vision: Episode 9

Founding President of the Bitcoin Association Jimmy Nguyen is back on the road again, and this week, he’s updating us on the latest developments in the Bitcoin SV (BSV) ecosystem from Jamaica. The Caribbean island nation was an appropriate place to talk about the Bitcoin Vision, given that Nguyen was in the area for an event called the Visionary Summit, in which he shared the story of BSV, and how it is truly restoring the Satoshi Vision for Bitcoin, with leaders in private enterprise, government and academia.

The BSV ecosystem remains abuzz with the business of scaling. After all, it was only recently that the network saw its record-breaking blocks: On March 28, 113MB block were mined on BSV, followed by the first 128MB block mined by nChain’s BMG Pool two days later on March 30. More big blocks followed, and yet another 128MB block was mined by CoinGeek Mining on March 31.

Ryan X. Charles and the Money Button team get a lot of credit for these record-breaking blocks. The BitPaste app and Money Button allowed Ryan to fill three of these record-setting blocks with high-resolution pictures of San Francisco, uploading transactions using tools already available to the public.

The large block sizes are already big news for the network, but even more so for the miners. The 128MB blocks delivered transaction fees for the successful miner of 1.279 BSV, which is another 10+% of miner revenue on top of the normal 12.5 BSV block reward. Nguyen explains:

“The greater transaction fees that were earned on this big blocks is demonstrating the economics of Satoshi Vision at work. Satoshi always envisioned that as the block reward continually cut in half, miners have to earn more in transaction fees with greater transaction fee volumes to make up for the lost block reward and to continue to have mining state profitable. This is why we need blocks to continually get bigger and bigger to massive sizes so that the blocks can fit larger amounts of data, varied types of transactions such as the file uploads you’ve been seeing, payment transactions of course, smart contracts, tokens, internet of things, device communications management, and a whole array of other types of transactions you can do on BSV.”

Still on the mining news, the BSV network has also welcomed a new mining group—Kpool. The mining pool has quickly contributed significant hash to the network, quickly becoming one of the top three mining groups on BSV. The network is always happy to welcome more mining pools and groups, so if you believe in the Satoshi Vision, come mine on BSV today.

On the applications and services front, a new BSV protocol—D://Protocol—has been added to the BSV/DEVS directory. This dynamic Bitcoin protocol allows users to update content on the BSV chain by using D:// instead of B://. Check it out here.

Another win for Bitcoin SV is the launch of The White Wallet by The White Company. This is the first wallet that lets customers pay for their Amazon, Uber, Steam, and iTunes purchases with BSV. The White Wallet also allows cash withdrawals and use of prepaid Visa and Mastercard in 10 fiat currencies. Learn more about The White Wallet here.

This week’s Satoshi shoutout goes to the Centbee team, which has set a precedent for real BSV adoption in South Africa. Using a digital voucher program and Centbee wallet, users in South Africa can now easily buy Bitcoin SV at many major retailers with fiat, cash or credit card. Currently, there are already 50,000 locations participating, including Pick N Pay, gas stations, malls, liquor stores, and even Absa Bank.

Watch The Bitcoin Vision: Episode 9.

While you’re at it, also check out the previous episodes of The Bitcoin Vision here.

bitcoin-sv-bsv-mines-world-record-128mb-blocks

比特币SV(BSV)挖出128MB区块,开创全新世界纪录

近期,比特币SV(BSV)接连见证了两个128MB区块从其网络中成功挖出,这是从公链上挖出的目前世界上最大的区块。首个巨型区块于2019年3月30日由nChain旗下的BMG Pool挖出;仅一天后,在3月31日,第二个128MB区块便由企业家卡尔文·艾尔(Calvin Ayre)创办的CoinGeek Mining挖出。这些创记录的区块证明了大规模链上扩容对于比特币的适用性,而比特币SV是继比特币原始设计和协议之后唯一成功推进的项目。

去年11月,比特币SV从全球首场比特币“算力大战”中脱颖而出。最初,比特币SV在比特币现金(BCH)实现方面作为比特币ABC的竞争对手崭露头角,而如今,比特币SV已拥有了自己的区块链并创制了BSV代币。比特币SV取名“Satoshi Vision(中本聪愿景)”,是源于比特币创造者中本聪之名,旨在恢复比特币原始协议,保持其稳定性,并允许其大规模扩容,成为一个可供数十亿人使用的全球网络。 

比特币SV当前的默认最大区块规模为128MB,也就是说最近挖出的巨大区块中所包含的来自BSV用户的数据已足以填满当前上限。在这两个128MB区块出现之前,比特币SV已见证了多天的成功行动,其中包括3月28日由CoinGeek Mining挖出的113MB区块以及众多50MB、60MB甚至80MB以上区块——远远超出任何其他竞争区块链所挖出的区块。

这些大型区块都是来自于有机增长,因为用户利用了BSV 中为OP_RETURN字段(是比特币交易中元数据的嵌入位置)提供的更大数据容量。比较而言,比特币核心和比特币现金ABC网络仍选择将OP_RETURN数据限于相当小的规模,但BSV正尝试取消这种限制,以释放并发挥比特币区块链作为全球商品分类账和数据网络的实力。BSV近期挖出的大型区块包含使用多次刷卡应用程序BitPaste上传的大型数据文件(高分辨率图片),允许用户使用MoneyButton快速刷卡轻松上传大型文件。还有一些其他用户已将音乐甚至视频文件上传至BSV网络中。 

随着大型区块的出现越来越成为常态,比特币SV揭示了比特币核心(BTC)(目前称其为“隔离见证币”更为准确)的错误概念。比特币核心反对链上扩容,将其区块大小限制在1MB的狭小范围内,并追求隔离见证及闪电网络上的第2层支付解决方案。同时,BSV 还有力反驳了比特币现金ABC开发人员所声称的将区块大小维持在32MB以上(比特币现金ABC的默认区块限制)尚不可行的言论。

128MB区块值得关注的另一大原因在于:每名矿工每笔成功交易可获得1.279BSV的交易费,这便在正常的12.5BSV区块奖励之上为矿工带来了10%以上的额外收入。这证明了大规模链上扩容如何在一个区块中实现更多(具有不同数据类型和不同费用水平)的交易,从而为矿工带来更多的收入。比特币区块奖励每4年减半,明年将再次出现减半,届时,区块奖励将从12.5减至6.25个币。为了保持挖矿的盈利性并维持网络稳定,比特币经济模式要求矿工逐步赚取更多交易费以弥补持续减少的区块奖励值。正如BSV现在所证明的,这样的经济模式只有通过较大区块才能实现,以确保比特币的长期成功。相比之下,其他网络通过拒绝大规模链上扩容破坏了比特币的经济激励模式—— BTC网络最大的区块仅为2019年3月11日挖出的2.3MB,而 BCH ABC链也仅在2018年12月18日出现过一个4.6MB的区块。(原始的比特币现金(BCH)链曾出现过一些较大的32MB区块,但是自2018年11月硬分叉事件后该链已不复存在;不论怎样,在以前的BCH链上挖出的32MB区块是使用比特币SV实现完成的。 )

提倡全球比特币SV生态系统的比特币协会创始会长吉米·阮(Jimmy Nguyen)观察到:

自比特币出现至今的10年间,比特币在大部分时间受到人为限制。BSV用户现在正以切身实践证明了原始比特币的大规模扩性及中本聪愿景(Satoshi Vision)的正确性。我们很高兴地看到,用户正以各种全新数据形式对大型区块进行有机填补,而这种创新目前呈现出激增状态同时,为矿工带来了更多的交易费。随着BSV网络处理大型区块能力的提升,我们希望在今年可以进一步放宽区块限。


BSV的下一步将是进一步扩容。3月份,比特币SV节点团队公布了自其BSV扩容测试网络得出的结果,显示了128MB区块成功维持了连续36小时。今年晚些时候,BSV节点团队预计会将默认区块上限提升至512MB,路径提升至1千兆字节(1000兆字节)或更高区块上限。终极目标是取消默认区块限制,允许矿工自行决定其想要接受的区块大小,并创建全新竞争性采矿市场。

阮先生补充道:

虽然其他比特币和加密货币项目支持者均关注价格和市场上限,但比特币SV正致力于构建一个可通过大规模扩提供业务支持,并具有实际长期价值支持功能的区块链。我们还在着手构建一个具有良性监管机制的生态系统,这会对比特币应用的推广和普及起到至关重要的作用。对于任何希望构建区块链应用程序的大型企业,我们邀请您一同构建全球企业区块链,并使用全球新型货币——比特币SV


近期活动:COINGEEK多伦多会议——5月29日至30日,加拿大多伦多

欢迎您参加529日至30举行的 CoinGeek 多伦多会议,了解 不设限的比特币可发挥哪些功能,以及比特币SV的最新链上扩容发展状况。比特币协会CoinGeek活动提供荣誉支持。注册简便快捷。如您通过 Coingate 使用 BSV这个全新的全球货币进行支付,您获得优惠


比特币协会简介

比特币协会是比特币业务的全球领先组织。其汇集了比特币生态系统中的商家、交易所、应用程序开发者、企业、矿工和其他参与者,齐心协力共同推动比特币商务的发展。比特币协会支持比特币SV(BSV)作为原始比特币,以稳定协议和扩容路线图成为全新的全球货币及全球企业区块链。作为一个具有包容性的组织,比特币协会欢迎支持或希望了解BSV和Satoshi Vision(中本聪愿景)的公司和组织踊跃加入,即使您同时还支持其他加密货币或区块链项目,比特币协会也欢迎您的加入。目前,您可免费申请会员资格。点击此处,注册成为会员

bitcoin-sv-bsv-mines-world-record-128mb-blocks

Bitcoin SV (BSV) mines world record 128MB blocks

Bitcoin SV [BSV] recently witnessed not one, but two, 128MB blocks mined on its network – the world’s largest ever on a public blockchain. The first huge block was mined on March 30, 2019 by nChain’s BMG Pool; just a day later on March 31, the second 128MB block was mined by entrepreneur Calvin Ayre’s CoinGeek Mining operation. These record-setting blocks prove that massive on-chain scaling works on Bitcoin, and Bitcoin SV is succeeding as the only project following Bitcoin’s original design and protocol.

Bitcoin SV emerged from the world’s first Bitcoin “hash war” last November, initially as a competitor to the Bitcoin ABC implementation of Bitcoin Cash (BCH) and now as its own chain and BSV token. Named for the “Satoshi Vision” of Bitcoin’s creator Satoshi Nakamoto, Bitcoin SV restores the original Bitcoin protocol, will keep it stable, and allow it to massively scale to a global network used by billions of people. 

Bitcoin SV currently has a default maximum block size of 128MB, meaning the recent huge blocks contained sufficient data from BSV users to fill the current cap. The two 128MB blocks come as Bitcoin SV witnessed multiple days of big action, including a 113MB block mined on March 28 by CoinGeek Mining and numerous blocks above 50, 60 and even 80MB – all far larger than blocks on any other competing blockchain.

The big blocks come from organic growth as users take advantage of BSV’s larger data capacity for the OP_RETURN field, a place in Bitcoin transactions to embed metadata. Whereas the Bitcoin Core and Bitcoin Cash ABC networks still restrict OP_RETURN data to much smaller sizes, BSV is lifting such limits to unleash the Bitcoin blockchain’s power to act as a global commodity ledger and data network. BSV’s recent big blocks contain large data files (high-resolution pictures) uploaded using the BitPaste multi-swipe application, which makes it easy for users to upload large files with quick swipes of MoneyButton. Other users have uploaded music and even video files to BSV. 

As its big blocks are more routine, Bitcoin SV debunks incorrect notions of Bitcoin Core (BTC) (now more accurately called SegWit coin) which opposed on-chain scaling, capped its block size at a tiny 1MB, and instead pursued Segregated Witness and a Layer 2 payment solution in Lightning Network. BSV also disproves Bitcoin Cash ABC developer claims that it is not yet practically feasible to sustain blocks above 32MB (the default limit on BCH ABC). 

The 128MB blocks are notable for another reason: each generated transaction fees for the successful miner of 1.279 BSV, adding another 10+% of miner revenue on top of the normal 12.5 BSV block reward. This demonstrates how massive on-chain scaling allows more transactions (of differing data types and differing fee levels) in a block, which in turn results in more revenue for miners. Bitcoin block rewards halve every 4 years, happening again next year as the block reward reduces from 12.5 to 6.25 coins. For mining to remain profitable to sustain the network, Bitcoin’s economic model requires miners to progressively earn more transaction fees to make up for the continually-reducing block reward value. That only happens with bigger blocks – as now demonstrated by BSV – to ensure Bitcoin’s long-term success. In contrast, other networks undermine Bitcoin’s economic incentive model by refusing to massively scale on-chain – with the BTC network’s biggest block to date only 2.3MB on March 11, 2019 and the BCH ABC chain only having a 4.6MB block on December 18, 2018. (The original Bitcoin Cash (BCH) chain had bigger 32MB blocks but that chain no longer exists after the November 2018 hard fork event; in any event, the 32MB blocks mined on the prior BCH chain were done using the Bitcoin SV implementation.) 

Jimmy Nguyen, Founding President of Bitcoin Association which advances the global Bitcoin SV ecosystem, observes:

“For too much of its 10-year life, Bitcoin has been artificially restricted. BSV users are now proving the original Bitcoin can massively scale and that Satoshi Vision is correct. We are thrilled to see the explosion of user creativity organically fill big blocks with new forms of data and generate more transaction fees for miners. With the BSV network handling big blocks quite well, we look forward to lifting the block cap even higher this year.”

Scaling even bigger is the next step for BSV. In March, the Bitcoin SV Node team announced results from its BSV Scaling Test Network showing 128MB blocks were successfully sustained for 36 continuous hours. Later this year, the BSV Node team expects to lift the default block cap to 512MB, en route to 1 gigabyte (1000 megabytes) or higher block caps. The ultimate goal is to have no default block limit, and allow miners to fully decide for themselves what block sizes to accept and create new competitive marketplaces for mining.

Nguyen adds:

Whereas other Bitcoin and cryptocurrency project supporters focus on price and market cap, Bitcoin SV is building a blockchain that is ready for business with massive scaling, with real utility to support real long term price value. We are also building an ecosystem that is regulation-friendly, which is essential for Bitcoin usage to become widespread. For any big business looking to build blockchain applications, we invite you to build on the global enterprise blockchain and to use the world’s new money – Bitcoin SV.”

UPCOMING: COINGEEK TORONTO CONFERENCE – May 29-30, Toronto, Canada

Come learn more about what Bitcoin can do with “No Limits” and the latest on-chain scaling developments with Bitcoin SV at the CoinGeek Toronto conference May 29-30. Bitcoin Association is a proud supporter of CoinGeek events. It’s easy to register. And pay with the world’s new money and you’ll receive a discount by using BSV via Coingate.

ABOUT BITCOIN ASSOCIATION

Bitcoin Association is the leading global organization for Bitcoin business. It brings together merchants, exchanges, application developers, enterprises, miners and others in the Bitcoin ecosystem to advance the growth of Bitcoin commerce. Bitcoin Association supports Bitcoin SV (BSV) as the original Bitcoin, with a stable protocol and scaling roadmap to become the world’s new money and global enterprise blockchain. As an inclusive organization, it welcomes companies and organizations who support or wish to learn about BSV and Satoshi Vision, even if you also support other cryptocurrency or blockchain projects. Membership is currently free. Register here to become a member.