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Bitcoin News - Bitcoin Remains in China’s Crosshairs, and It Poses Huge Threat For Community

  • Alex Morris
    📰 News

    While everyone is playing checkers, China is playing four-dimensional chess, actively trying to destroy Bitcoin

Bitcoin Remains in China’s Crosshairs, and It Poses Huge Threat For Community
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A recently published study shows that China still has too much leverage over Bitcoin despite previously distancing itself from cryptocurrencies with an infamous ban on trading and ICOs. Now, China is actually trying to crush the world’s biggest currency.

👉MUST READ People’s Bank of China Confirms its Opposition to Bitcoin, ICOs

The bigger coin, the bigger target

China, the second biggest economy in the world, might be busy waging a full-scale trade war against the US, but it still has another major enemy – Bitcoin. Despite the crackdown on cryptocurrencies, Chinese traders are circumventing the ban en masse, resorting to using peer-to-peer exchanges with VPN. Hence, the country is not done with cryptocurrencies.

However, it gets much worse – the report states that China has the potential to undermine the security and stability of the world’s flagship currency, and it is actively exerting this power right now with a double whammy of technical and regulatory capabilities.       

Monopolizing mining

The aforementioned report states that China still has an unprecedented control over cryptocurrency mining. Bitmain, a Beijing-based ASIC chip manufacturer, has a competitive edge that still allows this Chinese behemoth to represent the lion’s share of the mining equipment market. Other mining giants (Canaan, Ebang), which collectively target nearly $1.4 bln during their respective IPOs, also come from China. On top of that, only six mining pools are responsible for 80 per cent of Bitcoin mining (five of these pools are Chinese).

Given that China’s mining pools control over 70 per cent of Bitcoin’s hashrate, the possibility of the ominous “51-percent attack” doesn’t seem to be too far-fetched. It is very likely that Chinese authorities can directly influence with that amount of hashing power concentrated in one country, and that could eventually lead to censorship or even blatant attacks on the Bitcoin network.

Deliberately hindering Bitcoin’s efficiency

 The study also points out that these pools are often mining empty blocks, which bring miners the same reward as ordinary blocks. According to their estimations, the number of empty blocks reached more than 7 per cent on Chinese mining pools in sharp contrast to other pools where they normally don’t surpass 2 per cent. Mining empty blocks puts a damper on the efficiency of the entire Bitcoin network.

👉MUST READ Can China Fully Crush Cryptocurrency?

 

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Bitcoin News - The 2018 ICO/STO Market Generated $20 Bln — What Can 2019 Bring in Terms of Fundraising?

  • Jack Thomas
    🤷 Opinions

    🙄💫Many felt that ICOs and similar fundraising methods died in 2017⚰️, but 2018 saw $20 bln being raised, so what can 2019 hold?🤔

The 2018 ICO/STO Market Generated $20 Bln — What Can 2019 Bring in Terms of Fundraising?
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The ICO model and ecosystem has been a unique fundraising tool for cryptocurrency and blockchain endeavours, but it is also a tool that has come under massive scrutiny. This in itself has given rise to the STO fundraising market, which is yet to prove itself.

However, even though 2017 was the pinnacle of this style of fundraising, and many saw 2018 as the end of it, it has been revealed that as much as $20 bln was raised in ICO and STO offerings through the whole of last year.

There is a lot that can be read into that as the fundraising models continue to evolve, especially with the addition of STOs, but the real question is whether 2019 will be the same, raise even more, or raise a lot less.

STOs and securities concerns

Part of the reason why STOs have come more to the fore in recent times is because of the concerns around securities offerings when it came to the ICO boom. Many projects that raised millions of dollars were curtailed by securities regulators such as the SEC in the US.

The key difference between ICOs and STOs is that the things with the latter one are clearer: they deal with securities. With ICOs, quite often everything is not so obvious. While many of them claim that they are offering to buy utility tokens, in reality, they are selling securities as well.

In total, in 2018, over $19.7 billion was raised by 1,132 ICOs and STOs. Over $5.8 billion of the volume was raised by two projects. They are the EOS Foundation, which is known to have conducted the largest ICO in history with over $4 billion raised in June 2018, and Telegram messenger, which managed to raise $1.7 billion.

These two projects thus have a big role to play in the lifeblood of this market through 2018, and are almost outliers in determining if this ecosystem is healthy or able to continue growing.

The need for clarity

STOs are certainly becoming more popular as ICOs fall away, and the reason has to do with regulation, but there is also still a need for more clarity.

Analysts at PwC’s subsidiary Strategy& said STOs are considered to be a more regulated and mature way of raising funds but if we classify tokens as securities, both these approaches to funding are practically the same.

Because of scams and bad projects, though, many investors have shied away from the blockchain group venture capitalist funding methods. Thus, even with regulation, it could be determined that going forward there will be a drop in the money raised as people approach with caution.

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