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How Bitcoin Halving Will Affect BTC Price

Bitcoin Halving 2020

In every 210K mined blocks a planned (programmed) event takes place. This event is called halving. It is a regular reduction of miners’ fee (reward) for a produced block. Bitcoin creator put these halvings in software to keep inflation in check. Most commonly one block is being mined in 9 minutes and 20 seconds. According to this, halving occurs every four years. The Bitcoin network had two halvings: first in 2012 and then in 2016. If we look back and remember how much coins miners could earn in the early history of Bitcoin, it was 50 BTC for one block. Later on, after the first halving, the fee was equal to 25 BTC and the same happened four years after, then the reward was cut down to 12.5 BTC. The next (third) halving may be expected in May 2020. The payoff then will be reduced to 6.25 BTC. This will actually continue till there’s no award left (this will approximately happen in 2140).
So why is there a need for halving? If coins are produced very fast or the amount of emitted BTC is not limited, there will be so many Bitcoins in circulation that they will have limited value. Vitalik Buterin once said in his interview with Bitcoin Magazine: «The main reason why this is done is to keep inflation under control.»

What will happen with BTC price after Bitcoin halving?

Like any other cryptocurrency price prediction, the Bitcoin price prediction is always hard to make, so we can just guess looking at a combination of factors. Opinions are divided as follows: some think that the BTC price will go up and others think nothing will generally change and the price will stay the same. There are also skeptics that see the halving as bad luck. They believe that if even 10 percent of miners quit, it might scare away the investors and make them move out their assets. As a result, the Bitcoin price will go down. After the first Bitcoin halving the BTC price grew almost two hundredfold, the second time it grew sevenfold. Both times BTC had increased volatility. But no one can guarantee the same events nowadays. As far as we can see from the previous halvings, they had the same dynamics: the Bitcoin price grew up. This gives some people hope that it will repeat after the next BTC halving in May 2020.
What are people’s opinions and predictions regarding the next Bitcoin halving? Let’s have a look.

The CEO of Pantera Capital Dan Morehead predicts the rise of BTC after the coming halving:
“It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that, and then if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and in one more year $356,000.”

Tom Lee from Fundstrat Global Advisors posted a part of the report regarding crypto outlook 2020. Here what is said regarding the BTC price in that report:
“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin – thus, we believe Bitcoin and crypto total return should exceed that of 2019. In other words, we see strong probability that Bitcoin gains >100% in 2020.”

Bobby Lee (co-founder and CEO of BTC China) also expressed his opinion via twit saying:
“After next #BlockRewardHalving in Spring of 2020, new #Bitcoin output will drop again, to just 900 BTC/day. I predict #HashPower will continue to grow, with ever higher amounts of investment in mining (electricity costs). If that amount reaches $54m/day, we‘ll have $BTC at $60k.”

Jason A. Williams had an “unpopular opinion”:
“Unpopular Opinion – Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.”

John McAfee is insanely positive as usual when speaking about the Bitcoin price prediction:
“When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020. I will still eat my d\ck if wrong.”*

Paolo Ardoino (Bitfinex & Tether Chief Technology Officer) said the following in his interview to U.Today:
“The halving is expected to occur next year, and I think it’s reasonable to expect an increase in the price of Bitcoin. I won’t do any price predictions myself and this is not financial or other advice from me or from Bitfinex or Tether, but I don’t see any reason for Bitcoin not hitting $100,000 within the next few years. That would already be an amazing goal for such technology.”

Tone Vays (Financial analyst) is less ambitious. That’s what he thinks:
“Technically, everything is in play until end of 2020, after that sub $5,000 is not likely. Worst Case Scenario: prices drop to $5k into the halving, then after halving 70% of miners shut down due to negative revenue, #Bitcoin spirals down in price but then rises from the dead!”

Petros Anagnostou, the founder of Crypto Solutions declares:
“My prediction: Bitcoin will reach $12,000 before the end of this year. And will reach a price of $50,000 – $100,000 by the end of 2020.”

To summarize, the forthcoming BTC halving 2020 will be a kind of guarantee that there will be no inflation, and investments will be profitable. At the same time, it is being one of the key factors responsible for the growth of the Bitcoin price. When it comes to miners, they usually feel stressed about it as to keep their income at the same level they will need to invest in new technical equipment. As for those who don’t mine but just buy Bitcoin to keep BTC as a cryptocurrency investment, the BTC halving will barely have any effect on them.
No one can predict what exactly will happen after the upcoming BTC halving. It is always up to you either be on the optimistic side or be one of the doubters.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk. You are the only one responsible for making investment decisions.
submitted by SimpleSwapExchange to BitcoinMarkets [link] [comments]

SODL. It's been swell, but the swelling's gone down.

Those familiar with this username already know that I've been involved with Bitcoin since 2012. I purchased my first satoshi before $1k/BTC had ever been seen. I spent years creating developer solutions and electronic products designed to leverage Bitcoin's capability to facilitate frictionless Internet payments and that same time explaining Bitcoin to family, friends, internet buddies, fellow gamers, and anyone else that would listen.
Over time, that capability for frictionless payment dried up. First lack of space in blocks rendered the primary consumer solution I'd been developing as totally useless. There is no point in developing a risk assessment system when the thing being assessed is too risky to justify instant commerce. I feared Bitcoin had met an untimely end at the hands of self-important developers and lazy entitled miners, but was relieved to know that the BTCFORK project was alive and ready to continue the Bitcoin experiment in the form of what would later be called Bitcoin Cash (BCH).
When the fork hit, I was all in from day one. I traded out everything, forked my coins and recovered every satoshi of BCH I could muster. At one lofty point in my life, I had the rare claim to have actually possessed 21 BCH in the same wallet at the same time. I continued developing and introducing people to BCH. I explained to my family and friends the schism and the thought processes that lead me to use BCH instead of BTC. I spent countless hours justifying its existence to a general public that is uninterested in technical details or freedom from potential government seizures and simply want money that works.
Unfortunately, no crypto has never seemed to hold this goal in high esteem. As time has marched onward and progress has continued to be stymied by drama between more self-important developers and lazy entitled miners, I have finally realized why the Bitcoin experiment failed, and how we got here.
Bitcoin's design relies on one very important aspect: that miners behave as rational, long-term-invested economic actors. This would infer that over time, mining organizations will dedicate resources to developing in-house mining solutions and manage them with the same level of interest as a big box store manages their inventory. In short, it would make sense for miners to invest in their own closed-source development, based on the open-source reference client. This would create competition between compatible implementations maintained by groups that are self-invested in their interoperability and suitability for consumer use.
This did not happen, of course. Miners took the lazy, short-term-interested approach of "just run the software, don't care how it works or how well" and left the actual work of looking out for and maintaining the security of the chain to the unpaid open-source developers. This was a recipe for failure years ago and is the same recipe BCH has chosen to follow today. The IFP is simply a physical manifestation of this problem: since devs are not miners, Amaury et. al. are now expecting pay for their work in keeping those miners afloat, and rightly so. But they never should have been doing it in the first place; that was the miners' responsibility the whole time. If you're in an emergent industry running emergent software, you kind of have a responsibility to maintain that software out of pocket. This applies double for high-security software such as financial software. Lazy miners that can't even invest in their own software infrastructure are not trustworthy enough to be relied upon for the security of my funds.
Bitcoin has already failed; and with that clearly observable failure I have sold the remainder of my cryptocurrency, unsubscribed from this and other subreddits, removed various forum accounts, and ceased usage of any remaining services built to work with Bitcoin-style digital signatures. It's been a wild ride. I even made a nice chunk of money along the way. It was fun and fascinating and eye-opening and educational and profitable; but for me, it's over. The success of global peer-to-peer digital cash has already been thwarted, and that's all I ever came for.
Greg Maxwell didn't do this. Amaury Sechet didn't do this. Jihan Wu didn't do this. Roger Ver didn't do this. Theymos didn't do this. All those miners, all those mining pools, all those people that have been actively profiting off the system by running freely provided software and giving back only blocks in return: they are at fault for this failure. It is too late to turn back; the IFP is effectively a cork in a crumbling dam, a half-assed solution to a double-donkey problem. The dream is over, at least for me, and so I'll be moving on now.
The transition to crypto was troublesome and full of problems. I was on a 100% crypto budget for years and even found myself paying a premium for the "convenience". Funnily enough, the transition back to fiat was amazingly smooth and I actually made money on the way back. Sorry, guys - at the end of the day, fiat does what crypto doesn't.
I see the writing on the wall - and now I add my final scrawl. Goodbye, everyone.
submitted by chernobyl169 to btc [link] [comments]

Hey. Whats the current deal with all this cryptocurrency stuff yo?

I remember when I first heard about cryptocurrency, reading about it as a concept on a couple of forums. The first time I heard it mentioned in RL was in hushed tones by some guys at a rave in about 2012. Soon after it seemed to become common talk among hippies, cypher nerds, libertarian idealists and drug dealers.
A couple of years pass and everyone is talking about bitcoin. Every news outlet and blog is raving about cryptocurrency. Bitcoin moons and suddenly allot of early investors are crazy rich. Bitcoin becomes pretty much a speculative commodity.
Now there is thousands of alternative cryptocurrencies, However the people I know who use/“trade” them now are no longer weirdos and geeks but seem to trade them much more in the same kind of compulsive way that people addicted to pokie machines or online gambling are.
I remember hearing about giant mining farms that burn tons of energy to mine minuscule fractions of crypto, the idea being that so long as crypto is perceived as being worth more than the energy being burned to mine it it’s profitable. There have been countless scandals with crypto startups.
Basically my question is, as someone only passively paying attention to this stuff, what is the current deal with cryptocurrency? Is it still going to destabilize global markets?(not that they really seem to need any help). Is it still Worth buying a few dollars worth of bitcoin every now and then as an investment or has it pretty much leveled out? What are your thoughts about current popular feeling about blockchain and cryptocurrency?
submitted by cyber__pagan to CryptoCurrency [link] [comments]

The deepest report: Bitmain's self-help history

The deepest report: Bitmain's self-help history
The original intention of this article is to let readers understand the causes and consequences of Bitmain internal fighting, but after writing it, I found that it is not so much internal fighting as it is a long history of self-help.
The story is very long. Let's adjust the timeline to the eve of December 17, 2018. That was one of Bitmain's most critical moments and the beginning of a series of subsequent stories.
1. Self-immolation In September 2018, Bitmain's financial department warned management that the company's cash flow has become very tight and operating costs must be reduced to allow the company to continue. The blockchain unicorn, which is valued at more than 15 billion U.S. dollars, is crippled in the run and struggling to break the corner.
In 2017, Bitmain made a profit of 1 billion US dollars In the first half of 2018, Bitmain made a profit of 1 billion US dollars Three rounds of financing, a total of 800 million US dollars Net assets should exceed 3 billion U.S. dollars In September 2018, Bitmain had tight cash flow and was on the verge of bankruptcy
A simple comparison, it is not difficult to see that Bitmain's ability to make money is incredible, and its ability to burn money is even more extreme.
How does Bitmain burn money? Do you pour cash into gasoline and burn it, or hire a lot of employees to stuff the banknotes one by one into the shredder? The actual situation is closer to the latter.
The following data can help readers quickly learn Bitmain's money burning skills.
At the beginning of 2018, the entire cryptocurrency market has entered a bear market, but Bitmain's monthly operating costs have been rising wildly. Operating costs have risen from 10 million US dollars at the beginning of the year to 50 million US dollars at the end of the year.
Large-scale expansion of the R&D team is one of the main reasons. The HR who once worked at Bitmain revealed that the company once hired more than 50 employees a day and nearly 500 employees a month. Even so, it was criticized for its slow recruitment speed. The cash consumption in this area is approximately $250 million.
Operating costs are just the tip of the iceberg. Excessive chip trial production can become a classic case of project management courses. Readers who pay attention to Cryptocurrency mining can easily find that Bitmain is still working hard to clear the inventory of Antminer S9 in 2019. As the co-CEO, Ketuan Zhan did not listen to the advice or even warnings of the Finance Department, insisting on the implementation of Excessive chip trial production, resulting in a large accumulation of inventory and tight capital turnover. Another CEO, Jihan Wu, once revealed that the loss of Excessive chip trial production to the company was approximately US$1.5 billion.
Large-scale expansion of the R&D team is one of the main reasons. The HR who once worked at Bitmain revealed that the company once hired more than 50 employees a day and nearly 500 employees a month. Even so, it was criticized for its slow recruitment speed. The cash consumption in this area is approximately $250 million.
The BM1393 chip incident is even more incredible. Chip expert Ketuan Zhan invested a lot of money on a failed chip, and finally failed again. From 2017 to 2018, Bitmain has failed Trial production of mining machine chips at least 4 times, including 16nm, 12nm and 10nm chips, of which 16nm Trial production failed twice, thus losing at least US$1.2 billion.
It is rumored that Bitmain still holds a billion U.S. dollars worth of cryptocurrency in a state of floating loss. In view of the rebound in the market in 2020, we will not comment temporarily, waiting for the correct answer from the cryptocurrency market. But the losses pointed out in the previous article are all irreversible.
2. Sole power
In September 2018, Bitmain's management realized the seriousness of the problem. It turned out that the company's money could be squandered. As a result, the management began to discuss self-help plans, and the most reasonable and effective way was obviously to lay off employees.
The probation period for newly hired employees at Bitmain is half a year, and the probationary salary is 100% of the official salary, there is no difference. Once layoffs are made, new employees who have not passed the probationary period will be the main layoff targets. The department managed by Ketuan Zhan will face large-scale layoffs. The layoff plan is strongly opposed by Ketuan Zhan. Bitmain can only temporarily abandon the layoffs and replace it with continuous reductions. For marketing and travel expenses, a budget committee was established to strictly approve every expenditure. At the same time, employee benefits, such as reimbursement of taxi expenses, breakfast supply, snacks and drinks, etc., have also been abolished, and even the tradition of giving employees 400 yuan worth of BTC/BCH every month has been stopped.
In the face of huge cash flow pressure, trivial savings is obviously of no avail. Soon, the management again discussed the layoff plan, and it has reached the point where it has to be laid off.
In December 2018, Jihan Wu began to organize all entrepreneurial veterans and business backbones to persuade Ketuan Zhan to agree to layoffs, but Ketuan Zhan still insisted not to layoffs. The persuasion process was very unsuccessful. After many meetings and intense debates, Bitmain executives were caught in a dilemma of wasting time with Ketuan Zhan.
In this process, the shortcomings of the dual CEO system began to appear, and the relationship between the two CEOs gradually deteriorated.
On the night of December 16th, Ketuan Zhan reconvened the management meeting, and more than 30 managements who were present were asked to hand over their mobile phones. At this time, Jihan Wu was on a business trip in Hong Kong and was busy with listing related work.
In the meeting, Ketuan Zhan's core content was three items:
(1) Bitmain cannot have two CEOs, only one CEO and must be Ketuan Zhan. Ketuan Zhan said that he met an old leader during a business trip. He hadn't seen each other for many years. The old leader suggested that the company can only have one CEO, and it must be him. Ketuan Zhan feels that this is a kind of fate, an opportunity given by God.
(2) Ketuan Zhan believes that the company's cash flow problems, the biggest responsibility is the inability of the financial department. To prove his point, Ketuan Zhan announced Bitmain's financial data at the meeting. In the evening, employees in Taiwan began to post messages on social media, saying that the company's capital chain was broken and the top management was split.
(3) If Ketuan Zhan is not supported, the option will be cancelled and the equity will be voided.
Hearing about this, Jihan Wu, who lives in Hong Kong, sent a WeChat message to the management who are attending the meeting.

https://preview.redd.it/zkj2d44tqid51.jpg?width=1080&format=pjpg&auto=webp&s=9251c1f7308e155d7911d5969e71091a5ad5e14a
On the afternoon of December 17, 2018, Jihan Wu returned to Beijing to negotiate with Ketuan Zhan all night, and finally reached a consensus in the early morning. Bitmain co-founder Yuesheng Ge announced the results of the negotiations. Jihan Wu and Ketuan Zhan ceased to serve as CEOs, and Haichao Wang served as CEO. Jihan Wu voluntarily backed down and Ketuan Zhan served as chairman.
The "12.17 Incident" had a very bad impact on Bitmain, especially the disclosure of Bitmain's financial status, which caused vendors to start dunning. The loan that had just been negotiated with the Bank of Beijing was cancelled the next day. Jihan Wu's resignation as CEO caused an uproar in the industry, and it became a hot topic among Cryptocurrency mining, blockchain practitioners, and investor communities. The media focused their interpretation on Bitmain's series of incidents, and generally looked down upon its ongoing Hong Kong IPO, believing that the high-level changes had already signaled the failure of the IPO in advance.
On Christmas December 24, 2018, Bitmain finally began to implement the layoff plan. This long-delayed “correct decision” was achieved after a stalemate for nearly three months. The AI ​​teams in Beijing, Singapore, Taiwan, and Shanghai have laid off more than 50% of their employees. The Israeli R&D center was closed and Shenzhen New Species Technology Co., Ltd., which had been acquired for only ten months, was dissolved, and all employees were laid off. Copernicus, Bitmain's top blockchain development team, was not spared and was wiped out in this layoff. Copernicus and some of the laid-off employees joined the new company Matrixport co-founded by Jihan Wu and Yuesheng Ge, headquartered in Singapore.
3. Past events when starting a business
After the "12.17 Incident", Jihan Wu gradually faded out of Bitmain's management affairs and turned his attention to the IPO and new company. And this is one of Jihan Wu's major mistakes, he began to let Ketuan Zhan manage Bitmain alone.
In fact, as early as 2013, Jihan Wu planted hidden dangers.
Jihan Wu, an investment banker, was the earliest translator of the Bitcoin white paper. He began to get involved in the cryptocurrency mining industry in 2012. The disappearance of Kaomao and Nangua Zhang's ticket skipping led Jihan Wu to decide to develop his own chip.
In 2013, Jihan Wu established his own mining machine company. Together with Yuesheng Ge, who was only 20 years old, he found Ketuan Zhan, an integrated circuit designer of the Chinese Academy of Sciences, to create the protagonist of this article, and later the digital Cryptocurrency mining giant, Bitmain.
Jihan Wu promised Ketuan Zhan that every time a mining machine chip was successfully developed, he would give some shares to the Ketuan Zhan team. At that time, the company founded by Ketuan Zhan was on the eve of falling apart. In order to regroup the team, Ketuan Zhan promised to share half of his shares with the team members. Unfortunately, this is just a bad check. With the rapid development of Bitmain and higher and higher valuations, the expanding Ketuan Zhan almost monopolized all the shares.
Like many startups, Bitmain encountered many difficulties in its early days, and many jobs had to be done by the boss. For example, in the chip design and production process in the second half of 2013, Bitmain was caught in a dilemma of insufficient funds. Jihan Wu personally raised funds and met with TSMC’s sales to persuade TSMC to accept the production needs of a start-up company. Jihan Wu also participated in the selection of the thermodynamic parameters of the heat sink in the Antminer S1.
In 2014, Jihan Wu discovered that this company was independently operated by Ketuan Zhan, which had huge problems. Forcing Jihan Wu to continue to participate in company management.
At that time, Bitmain's mining machine chips had just achieved a certain lead in the standard design process. Jihan Wu believes that the next step must be to develop full customization technology, but Ketuan Zhan plans to invest resources in the research of mobile payment chips.
Ketuan Zhan met a mysterious person from the Party Central Security Bureau who claimed to be able to manipulate the Party Central Committee’s decision-making process for the next generation of mobile payment cryptography standards, but this direction is likely to lead to the fact that Bitmain has just gained the lead in the mining machine market. Regained.
Jihan Wu said that as a graduate of the School of Economics, with a little memory of his high school stage and the knowledge reserve of a computer technology amateur, he retrieves various materials and papers every day, learns theories related to full customization, and goes to Ketuan Zhan conducts persuasion work there.
Fortunately, in the direction of full customization technology, Ketuan Zhan finally listened to Jihan Wu's opinion. Bitmain quickly integrated the technical experts from the United States and Russia introduced by Jihan Wu, which greatly improved the design level of chips and complete machines.
In 2015, Jihan Wu suggested that Ketuan Zhan consider the direction of artificial intelligence. But Ketuan Zhan is not here, he prefers the CPU direction. After staying asleep at night, coupled with in-depth analysis by the Bitmain investment team, Ketuan Zhan finally agreed with this direction. It is a pity that after the Tianshi Chen brothers made major breakthroughs in theory and practice, Bitmain officially invested in the relevant direction, and it was still a step behind.
In the two years from 2016 to 2017, Bitmain's business performance has achieved rapid development, becoming a unique super unicorn in the blockchain industry. According to Froth & Sullivan, in 2017, Bitmain Technology Holdings was the second largest fabless chip design company in China and the tenth largest fabless chip design company in the world, and the fourth largest fabless ASIC chip design company in the world, accounting for 74.5% of global cryptocurrency market share.
However, the huge crisis has long been buried in the early days of entrepreneurship.
Ketuan Zhan's decision on major directions revealed his weakness of extremely lack of business understanding. But every mistake he made was blocked by the company's core employees. His overconfidence in his management ability led to the gradual intensification of conflicts, and the management differences between the two founders became more serious.
4.The giant gets lost
The contradiction between the two broke out on December 17, 2018. Ketuan Zhan used extreme means to force the management to compromise with him by canceling the option, so as to achieve the goal of sole control of the company. Jihan Wu returned to Beijing from Hong Kong overnight and negotiated with Ketuan Zhan all night. In the end, the two resigned as CEO. Jihan Wu retired. Ketuan Zhan has the exclusive rights of chairman in exchange for the implementation of the layoff plan.
Jihan Wu's voluntary retreat has intensified Ketuan Zhan's management to do whatever he wants.
A Bitmain employee commented on Ketuan Zhan's management skills, summed up in two letters-SM.
After becoming the sole helm of the company, Ketuan Zhan quickly "rectified" the department in charge of Jihan Wu as the chairman of the board. He guided the sales of mining machines at the dinner, and pointed out that the sales performance is not due to the sales staff. Ability is strong, but the company provides opportunities. Take two sales leaders as examples, saying that if the company hadn't given the opportunity, they would still be losers. In addition, Ketuan Zhan also instructed the sales staff on how to toast and imparted the wine table culture and experience.
After the meal, Ketuan Zhan came to the conclusion that the quality of Bitmain sales staff was too poor, and Huawei’s blood needs to be injected to drive the company’s progress. Soon, the marketing and sales director from Huawei officially took over Bitmain, opening the era of brand premium for Antminer.
In order to further understand and guide the sales work, Ketuan Zhan asked to meet the customers with the sales staff. During the negotiation process, Ketuan Zhan had a heated discussion with customers on the issue of Chinese and Western medicine, and had also forced the sales staff to be able to ship 10,000 machines due to insufficient production capacity.
Although the requirements for sales personnel are strict, Ketuan Zhan has provided a lot of convenience for "Mainland Ark". In addition to selling mining machines at a more favorable price, Bitmain's mining machines are also hosted in Ming Wang at a higher price than the market price. Mine. It is reported that both Ketuan Zhan and Ming Wang are shareholders of Ark.
The new sales strategy of Huawei's executives has also brought very obvious changes to Bitmain. The self-righteous brand premium reduces the price-performance ratio of Antminer, causing competing products to eat away at Bitmain's market share. Later, Bitmain found that the strategy was wrong and started to cut prices, and found that the mining machine market was saturated and the purchase demand of miners had decreased.
More dangerous than the sales strategy is that the technical advantages of Antminer are being chased by competing products, and even overtaken. At the same time, the two mining pools under Bitmain also lost their first and second positions. The AI ​​business, which Jihan Wu placed high hopes and Ketuan Zhan personally supervised, became a laughing stock in the industry. Not only did it fail to make a profit, it almost brought down Bitmain.
Blindly introducing senior executives from Huawei to occupy important positions completely destroys the company's internal cultural foundation. The bureaucracy within Bitmain began to corrode from high-level employees to ordinary employees. Ketuan Zhan is not aware of this. He is still keen on recruiting Huawei employees, imitating Huawei's organizational structure and strategy, letting HR do sales and R&D personnel to do HR.
The organizational structure adjustment in October 2019 was the fuse for Ketuan Zhan to completely anger Bitmain management. This time, Ketuan Zhan completely marginalized Bitmain’s veteran employees, and suddenly promoted some of the “airborne soldiers” who had just joined the company to the position of person in charge, which caused the former person in charge to report to the new employees. The two managers who were originally equal The hierarchy becomes the subordinate relationship, the operation and development of different business lines are merged into a large department, the upward reporting process becomes more cumbersome, and the relationship between employees becomes delicate.
5. Headwind
On October 29, 2019, Jihan Wu urgently held a staff meeting. Prior to this, the legal representative of Beijing Bitmain has been changed to Jihan Wu, including the parent companies Hong Kong Bitmain and Cayman Bitmain. Jihan Wu stood in the lobby of Building 25, B1, announcing that Ketuan Zhan has been relieved of all duties. Any employee in the Bitmain Group shall no longer execute Ketuan Zhan’s instructions and participate in any meetings convened by Ketuan Zhan. If there is any violation, the company will demotion and expel the company based on the severity of the circumstances. If losses are caused to the company, the company will be held accountable.
Jihan Wu's speech is very long, which can be summarized as follows:
(1) Ketuan Zhan has been relieved of all duties. Also expelled from the original Huawei company HR Zhi Wang introduced by Ketuan Zhan at the end of 2018. Zhi Wang’s reputation on Bitmain was extremely poor and was ridiculed by employees as "nine thousand years" (In ancient China, the emperor was called "ten thousand years old", and the prince was "eight thousand years old." However, in the Ming Dynasty, there was an eunuch who caused harm to the country and the people. He called himself "nine thousand years old", meaning that he was only A little lower than the emperor's level).
(2) Ketuan Zhan's ability to control the company's option incentive plan has disappeared, and it is no longer possible to cancel employees' options at will.
(3) The organizational structure adjustment plan led by Ketuan Zhan was suspended.
(4) We are optimistic about the future of AI business, but the premise is that the main business can continue to make profits in order to support the company's continued investment in AI business.
In the speech, Jihan Wu also told employees the whole story of the "12.17 Incident" and bluntly said that the company is not in good condition. If no measures are taken, Bitmain is likely to go bankrupt in three quarters and he must come back to save the company.
At this time, Ketuan Zhan, who was on a business trip in Shenzhen, finally experienced the situation of Jihan Wu in the "12.17 Incident".
After the official return, Jihan Wu began to clearly point out the company's various problems in operation and management, and went deep into each business line to understand the situation. In the mining machine sales department meeting, employees spoke enthusiastically, reflecting on the difficulties and opinions encountered in the work, the marketing and sales director from Huawei asked with a surprised look, "Why didn't these issues be reported to me before?", and soon , The director was interviewed and "voluntarily resigned."
On November 2, 2019, Jihan Wu announced a salary increase for all employees. Bitmain’s last salary increase dates back to 2018. In principle, Bitmain has two salary increases every year.
On November 7, 2019, Ketuan Zhan spoke on social media for the first time, describing his hardship in starting a business, and condemning Jihan Wu for “stabbing a knife in the back”. At the end of the article, he also set himself a KPI for 2020, that is, the mining machine market share will reach 90%, and the AI ​​business will earn 1 billion.
But Ketuan Zhan's majestic plan did not make Bitmain employees feel emotional, but ridiculed him instead. Employees exposed that he insulted employees, advocated Chinese medicine, believed in Buddhism, drank in meetings, practiced Qigong...
However, there is less than half a year before the halving of Bitcoin production, and the cryptocurrency market shows no signs of recovery, which makes Bitmain management very anxious.
On January 6, 2020, Bitmain ushered in another round of layoffs, with a layoff ratio of about 1/3. This time the layoffs have caused many employees who have just increased their salaries to feel very grieved. On the one hand, they were looking forward to Jihan Wu's return. On the other hand, the compensation for this layoff was less than 18 years.
Ketuan Zhan, who has been unable to enter the Bitmain office area, once again spoke on social media and firmly opposed to layoffs. We do not need to lay off staff and we cannot commit suicide.
During the Spring Festival, Covid-19 broke out. Mainland China has begun to extend the Spring Festival holiday and advocate working from home. Under the chain reaction caused by Covid-19, most companies have chosen to cut salaries or even lay off employees. In the first two months of 2020, China's exports fell by 17%, U.S. stocks were broken four times in a row, Bitcoin plunged 40% in 24 hours on March 12, 2020, and crude oil futures fell by 300% on April 20, 2020...
Obviously, Jihan Wu can't predict, but this layoff seems to be the right decision again. In addition, from January to April 2020, Bitmain's revenue exceeded US$400 million amid the spread of Covid-19 and the collapse of the financial market.
6. Fight to the death
When Jihan Wu tried to get the company back on track, Ketuan Zhan was not helpless. On April 28, 2020, Ketuan Zhan finally rolled back the legal representative of Beijing Bitmain to before October 28, 2019 by repeatedly submitting administrative reconsiderations, and restored his status as a legal representative.
On the morning of May 8, 2020, a piece of news about Bitmain quickly appeared on the real-time hot search rankings, and even dominated the headlines of the day. At window 52 on the second floor of the Haidian District Government Affairs Center, when Ketuan Zhan, the legal person of Beijing Bitmain Company, was receiving the business license, a group of unidentified people snatched the business license from the industrial and commercial administrative staff. A source at the scene said that the number of unidentified people in the group was about 60 people, of which Luyao Liu was directing at the scene.
This is a skillful piece of news. It first leads readers to think that Ketuan Zhan is a victim, using 60 people to grab business licenses as the focus. The masses accused Jihan Wu of lawlessness, but ignored whether the government affairs center could have 60 personnel. As for Hong Kong Bitmain to have the right to appoint a representative to obtain a business license, this is a deeper level of thinking.
The follow-up report restored the real situation at the scene. Only more than ten people were present, and both sides were equipped with security personnel. Bitmain employees also broke the news in the circle of friends, claiming that Ketuan Zhan's bodyguard had injured Bitmain's authorized person, and said in a threatening tone, "Be careful!"
However, the subsequent plot reversal did not have much effect. Jihan Wu's reputation has been greatly affected. From a bloody soldier who rescued the company in trouble to a lawless criminal, it can be said to be a world of war. do not.
Ketuan Zhan, who succeeded in the first battle, began to counterattack Bitmain continuously. On the afternoon of June 3, 2020, Ketuan Zhan led a team to pry open the back door of the Beijing Bitmain office and formally occupied the deserted Beijing headquarters.
On June 4, 2020, Ketuan Zhan called on Bitmain employees to resume work and promised to expand the company's market value to more than US$50 billion within three to five years. After that, Ketuan Zhan began to contact employees by phone, trying to acquire the options in the hands of employees at a valuation of 4 billion US dollars.
Subsequently, Ketuan Zhan recalled Huawei's executives and issued a series of personnel appointments and removals. As of June 9, 2020, Ketuan Zhan has successively eliminated CFO Luyao Liu, and Wenguang Wang, the head of the mining center. Luyao Liu is responsible for controlling Bitmain's IPO plan. He also appointed Yanwu Ma as the HR director, Gang Ren as the head of the mining center, Yonggang Sun as the head of the supply chain, Ling Gu as the financial director, and Bin Zhu as the head of the mining machine business department. Bin Zhu is the senior executive of Huawei who was interviewed and left as mentioned in the previous article. During his tenure, he reduced Antminer’s 90% market share to 50%, and received a large number of complaints from miners. Internal employees once speculated that he might be Compete against the spies sent by the company.
In addition to recalling senior executives of Huawei, Ketuan Zhan also urged employees to return to work. They can receive a bonus of 10,000 yuan when they return to work on the same day, which is only half the next day. Ketuan Zhan showed a very kind side. Every time the elevator door is opened, Ketuan Zhan's hot gaze can be met, shaking hands, taking photos, and receiving money. As there is no personnel information, Ketuan Zhan does not know whether the person receiving the money is a Bitmain employee, and these people did not resume work the next day.
The effect of gentleness was not good, Ketuan Zhan began to force employees to return to work. Seeing that there are still very few respondents, Ketuan Zhan threatened employees through SMS, phone calls, EMS, emails and other harassment, issued multiple threats such as termination of contract, suspension of payment of social insurance, suspension of wages, and even used personal information saved by employees to form a group of employees. Domicile threats, requiring employees to perform "work handover", trying to force employees to return work computers, etc.
On June 10, 2020, the media revealed that Ketuan Zhan had controlled Bitmain's Shenzhen factory and prohibited employees from delivering normal shipments to paid customers, which caused difficulties in the operation of the Bitmain mining machine department.
On June 13, 2020, Hong Kong Bitmain, the parent company of Beijing Bitmain, issued a statement accusing Ketuan Zhan of signing a "Sales Agency Agreement" with the Ark Data Technology Co., Ltd. in which it holds shares, in an attempt to embezzle Beijing Bit's assets.
On June 17, 2020, the media revealed that Ketuan Zhan started selling 14,000 T17+ series mining machines at low prices.
On June 20, 2020, Hong Kong Bitmain officially suspended the supply of chips to the Shenzhen factory.
On July 13, 2020, in the "A Letter to All My colleagues in the Shenzhen Factory" released by Bitmain in Hong Kong, more details were added on the series of Ketuan Zhan's actions in June.
The legal person Feng Zhou of the Shenzhen plant is related to Ketuan Zhan. After being relieved of Ketuan Zhan's post, Jihan Wu flew to Shenzhen to have a long talk with Feng Zhou. Jihan Wu believes that Feng Zhou is the right person to manage the factory and help the company overcome difficulties, and decides to leave Feng Zhou to continue to manage the factory.
This wrong decision staged a story of a farmer and a snake. When Ketuan Zhan began to counterattack Bitmain, Feng Zhou was also quickly instigated and began to assist Ketuan Zhan in seizing customer machines and transferring 17,000 T17 mining machines in the warehouse. Hainan Continental Ark Data Technology Co., Ltd., which is held by Ketuan Zhan, sold them at a low price.
In order to protect the interests of customers, Jihan Wu had to make a compromise and paid the payment for some goods to a bank account controlled by Ketuan Zhan in exchange for delivery. However, after the other party received a payment of 109 million, the delivery stopped. On July 8, 2020, 5600 mining machines have been overdue.
At the same time, the factory defaulted on suppliers’ accounts payable as much as 200 million yuan. Bank acceptance bills issued by the factory, exceeding 36 million yuan, will expire on July 17, and more than 34 million yuan will expire on July 23. It is understood that Ketuan Zhan, after receiving the bank's dunning call, made it clear that he would not repay the loan, which would destroy the company and the entire group's credit in financial institutions.
7、 This is not the end
So far, the power struggle between the founders of Bitmain has been more than half a year. The office building already occupied by Ketuan Zhan is still empty, and most employees choose to work from home. Some chip developers returned to the office with the acquiescence of Jihan Wu and continued to maintain research and development to reduce the impact of infighting on technological iteration and competitiveness.
This giant ship that once stood on top of the supercomputer chip is crashing into the iceberg due to the madness of the former helm. Ketuan Zhan's madness and Jihan Wu's compromise made mistakes again and again. Bitmain tried to save himself many times, but was unable to get out of the black hole.
If the time goes back to that day in 2013, would Jihan Wu and Yuesheng Ge still choose to dial Ketuan Zhan?
submitted by paulcheung1990 to Bitcoincash [link] [comments]

The deepest report: Bitmain's self-help history

The deepest report: Bitmain's self-help history
The original intention of this article is to let readers understand the causes and consequences of Bitmain internal fighting, but after writing it, I found that it is not so much internal fighting as it is a long history of self-help.
The story is very long. Let's adjust the timeline to the eve of December 17, 2018. That was one of Bitmain's most critical moments and the beginning of a series of subsequent stories.
1. Self-immolation In September 2018, Bitmain's financial department warned management that the company's cash flow has become very tight and operating costs must be reduced to allow the company to continue. The blockchain unicorn, which is valued at more than 15 billion U.S. dollars, is crippled in the run and struggling to break the corner.
In 2017, Bitmain made a profit of 1 billion US dollars In the first half of 2018, Bitmain made a profit of 1 billion US dollars Three rounds of financing, a total of 800 million US dollars Net assets should exceed 3 billion U.S. dollars In September 2018, Bitmain had tight cash flow and was on the verge of bankruptcy
A simple comparison, it is not difficult to see that Bitmain's ability to make money is incredible, and its ability to burn money is even more extreme.
How does Bitmain burn money? Do you pour cash into gasoline and burn it, or hire a lot of employees to stuff the banknotes one by one into the shredder? The actual situation is closer to the latter.
The following data can help readers quickly learn Bitmain's money burning skills.
At the beginning of 2018, the entire cryptocurrency market has entered a bear market, but Bitmain's monthly operating costs have been rising wildly. Operating costs have risen from 10 million US dollars at the beginning of the year to 50 million US dollars at the end of the year.
Large-scale expansion of the R&D team is one of the main reasons. The HR who once worked at Bitmain revealed that the company once hired more than 50 employees a day and nearly 500 employees a month. Even so, it was criticized for its slow recruitment speed. The cash consumption in this area is approximately $250 million.
Operating costs are just the tip of the iceberg. Excessive chip trial production can become a classic case of project management courses. Readers who pay attention to Cryptocurrency mining can easily find that Bitmain is still working hard to clear the inventory of Antminer S9 in 2019. As the co-CEO, Ketuan Zhan did not listen to the advice or even warnings of the Finance Department, insisting on the implementation of Excessive chip trial production, resulting in a large accumulation of inventory and tight capital turnover. Another CEO, Jihan Wu, once revealed that the loss of Excessive chip trial production to the company was approximately US$1.5 billion.
Large-scale expansion of the R&D team is one of the main reasons. The HR who once worked at Bitmain revealed that the company once hired more than 50 employees a day and nearly 500 employees a month. Even so, it was criticized for its slow recruitment speed. The cash consumption in this area is approximately $250 million.
The BM1393 chip incident is even more incredible. Chip expert Ketuan Zhan invested a lot of money on a failed chip, and finally failed again. From 2017 to 2018, Bitmain has failed Trial production of mining machine chips at least 4 times, including 16nm, 12nm and 10nm chips, of which 16nm Trial production failed twice, thus losing at least US$1.2 billion.
It is rumored that Bitmain still holds a billion U.S. dollars worth of cryptocurrency in a state of floating loss. In view of the rebound in the market in 2020, we will not comment temporarily, waiting for the correct answer from the cryptocurrency market. But the losses pointed out in the previous article are all irreversible.
2. Sole power
In September 2018, Bitmain's management realized the seriousness of the problem. It turned out that the company's money could be squandered. As a result, the management began to discuss self-help plans, and the most reasonable and effective way was obviously to lay off employees.
The probation period for newly hired employees at Bitmain is half a year, and the probationary salary is 100% of the official salary, there is no difference. Once layoffs are made, new employees who have not passed the probationary period will be the main layoff targets. The department managed by Ketuan Zhan will face large-scale layoffs. The layoff plan is strongly opposed by Ketuan Zhan. Bitmain can only temporarily abandon the layoffs and replace it with continuous reductions. For marketing and travel expenses, a budget committee was established to strictly approve every expenditure. At the same time, employee benefits, such as reimbursement of taxi expenses, breakfast supply, snacks and drinks, etc., have also been abolished, and even the tradition of giving employees 400 yuan worth of BTC/BCH every month has been stopped.
In the face of huge cash flow pressure, trivial savings is obviously of no avail. Soon, the management again discussed the layoff plan, and it has reached the point where it has to be laid off.
In December 2018, Jihan Wu began to organize all entrepreneurial veterans and business backbones to persuade Ketuan Zhan to agree to layoffs, but Ketuan Zhan still insisted not to layoffs. The persuasion process was very unsuccessful. After many meetings and intense debates, Bitmain executives were caught in a dilemma of wasting time with Ketuan Zhan.
In this process, the shortcomings of the dual CEO system began to appear, and the relationship between the two CEOs gradually deteriorated.
On the night of December 16th, Ketuan Zhan reconvened the management meeting, and more than 30 managements who were present were asked to hand over their mobile phones. At this time, Jihan Wu was on a business trip in Hong Kong and was busy with listing related work.
In the meeting, Ketuan Zhan's core content was three items:
(1) Bitmain cannot have two CEOs, only one CEO and must be Ketuan Zhan. Ketuan Zhan said that he met an old leader during a business trip. He hadn't seen each other for many years. The old leader suggested that the company can only have one CEO, and it must be him. Ketuan Zhan feels that this is a kind of fate, an opportunity given by God.
(2) Ketuan Zhan believes that the company's cash flow problems, the biggest responsibility is the inability of the financial department. To prove his point, Ketuan Zhan announced Bitmain's financial data at the meeting. In the evening, employees in Taiwan began to post messages on social media, saying that the company's capital chain was broken and the top management was split.
(3) If Ketuan Zhan is not supported, the option will be cancelled and the equity will be voided.
Hearing about this, Jihan Wu, who lives in Hong Kong, sent a WeChat message to the management who are attending the meeting.

https://preview.redd.it/c5cxea2lqid51.jpg?width=1080&format=pjpg&auto=webp&s=3d6a0388408f6b8abe10648e5e4b7a3a5434c821
On the afternoon of December 17, 2018, Jihan Wu returned to Beijing to negotiate with Ketuan Zhan all night, and finally reached a consensus in the early morning. Bitmain co-founder Yuesheng Ge announced the results of the negotiations. Jihan Wu and Ketuan Zhan ceased to serve as CEOs, and Haichao Wang served as CEO. Jihan Wu voluntarily backed down and Ketuan Zhan served as chairman.
The "12.17 Incident" had a very bad impact on Bitmain, especially the disclosure of Bitmain's financial status, which caused vendors to start dunning. The loan that had just been negotiated with the Bank of Beijing was cancelled the next day. Jihan Wu's resignation as CEO caused an uproar in the industry, and it became a hot topic among Cryptocurrency mining, blockchain practitioners, and investor communities. The media focused their interpretation on Bitmain's series of incidents, and generally looked down upon its ongoing Hong Kong IPO, believing that the high-level changes had already signaled the failure of the IPO in advance.
On Christmas December 24, 2018, Bitmain finally began to implement the layoff plan. This long-delayed “correct decision” was achieved after a stalemate for nearly three months. The AI ​​teams in Beijing, Singapore, Taiwan, and Shanghai have laid off more than 50% of their employees. The Israeli R&D center was closed and Shenzhen New Species Technology Co., Ltd., which had been acquired for only ten months, was dissolved, and all employees were laid off. Copernicus, Bitmain's top blockchain development team, was not spared and was wiped out in this layoff. Copernicus and some of the laid-off employees joined the new company Matrixport co-founded by Jihan Wu and Yuesheng Ge, headquartered in Singapore.
3. Past events when starting a business
After the "12.17 Incident", Jihan Wu gradually faded out of Bitmain's management affairs and turned his attention to the IPO and new company. And this is one of Jihan Wu's major mistakes, he began to let Ketuan Zhan manage Bitmain alone.
In fact, as early as 2013, Jihan Wu planted hidden dangers.
Jihan Wu, an investment banker, was the earliest translator of the Bitcoin white paper. He began to get involved in the cryptocurrency mining industry in 2012. The disappearance of Kaomao and Nangua Zhang's ticket skipping led Jihan Wu to decide to develop his own chip.
In 2013, Jihan Wu established his own mining machine company. Together with Yuesheng Ge, who was only 20 years old, he found Ketuan Zhan, an integrated circuit designer of the Chinese Academy of Sciences, to create the protagonist of this article, and later the digital Cryptocurrency mining giant, Bitmain.
Jihan Wu promised Ketuan Zhan that every time a mining machine chip was successfully developed, he would give some shares to the Ketuan Zhan team. At that time, the company founded by Ketuan Zhan was on the eve of falling apart. In order to regroup the team, Ketuan Zhan promised to share half of his shares with the team members. Unfortunately, this is just a bad check. With the rapid development of Bitmain and higher and higher valuations, the expanding Ketuan Zhan almost monopolized all the shares.
Like many startups, Bitmain encountered many difficulties in its early days, and many jobs had to be done by the boss. For example, in the chip design and production process in the second half of 2013, Bitmain was caught in a dilemma of insufficient funds. Jihan Wu personally raised funds and met with TSMC’s sales to persuade TSMC to accept the production needs of a start-up company. Jihan Wu also participated in the selection of the thermodynamic parameters of the heat sink in the Antminer S1.
In 2014, Jihan Wu discovered that this company was independently operated by Ketuan Zhan, which had huge problems. Forcing Jihan Wu to continue to participate in company management.
At that time, Bitmain's mining machine chips had just achieved a certain lead in the standard design process. Jihan Wu believes that the next step must be to develop full customization technology, but Ketuan Zhan plans to invest resources in the research of mobile payment chips.
Ketuan Zhan met a mysterious person from the Party Central Security Bureau who claimed to be able to manipulate the Party Central Committee’s decision-making process for the next generation of mobile payment cryptography standards, but this direction is likely to lead to the fact that Bitmain has just gained the lead in the mining machine market. Regained.
Jihan Wu said that as a graduate of the School of Economics, with a little memory of his high school stage and the knowledge reserve of a computer technology amateur, he retrieves various materials and papers every day, learns theories related to full customization, and goes to Ketuan Zhan conducts persuasion work there.
Fortunately, in the direction of full customization technology, Ketuan Zhan finally listened to Jihan Wu's opinion. Bitmain quickly integrated the technical experts from the United States and Russia introduced by Jihan Wu, which greatly improved the design level of chips and complete machines.
In 2015, Jihan Wu suggested that Ketuan Zhan consider the direction of artificial intelligence. But Ketuan Zhan is not here, he prefers the CPU direction. After staying asleep at night, coupled with in-depth analysis by the Bitmain investment team, Ketuan Zhan finally agreed with this direction. It is a pity that after the Tianshi Chen brothers made major breakthroughs in theory and practice, Bitmain officially invested in the relevant direction, and it was still a step behind.
In the two years from 2016 to 2017, Bitmain's business performance has achieved rapid development, becoming a unique super unicorn in the blockchain industry. According to Froth & Sullivan, in 2017, Bitmain Technology Holdings was the second largest fabless chip design company in China and the tenth largest fabless chip design company in the world, and the fourth largest fabless ASIC chip design company in the world, accounting for 74.5% of global cryptocurrency market share.
However, the huge crisis has long been buried in the early days of entrepreneurship.
Ketuan Zhan's decision on major directions revealed his weakness of extremely lack of business understanding. But every mistake he made was blocked by the company's core employees. His overconfidence in his management ability led to the gradual intensification of conflicts, and the management differences between the two founders became more serious.
4.The giant gets lost
The contradiction between the two broke out on December 17, 2018. Ketuan Zhan used extreme means to force the management to compromise with him by canceling the option, so as to achieve the goal of sole control of the company. Jihan Wu returned to Beijing from Hong Kong overnight and negotiated with Ketuan Zhan all night. In the end, the two resigned as CEO. Jihan Wu retired. Ketuan Zhan has the exclusive rights of chairman in exchange for the implementation of the layoff plan.
Jihan Wu's voluntary retreat has intensified Ketuan Zhan's management to do whatever he wants.
A Bitmain employee commented on Ketuan Zhan's management skills, summed up in two letters-SM.
After becoming the sole helm of the company, Ketuan Zhan quickly "rectified" the department in charge of Jihan Wu as the chairman of the board. He guided the sales of mining machines at the dinner, and pointed out that the sales performance is not due to the sales staff. Ability is strong, but the company provides opportunities. Take two sales leaders as examples, saying that if the company hadn't given the opportunity, they would still be losers. In addition, Ketuan Zhan also instructed the sales staff on how to toast and imparted the wine table culture and experience.
After the meal, Ketuan Zhan came to the conclusion that the quality of Bitmain sales staff was too poor, and Huawei’s blood needs to be injected to drive the company’s progress. Soon, the marketing and sales director from Huawei officially took over Bitmain, opening the era of brand premium for Antminer.
In order to further understand and guide the sales work, Ketuan Zhan asked to meet the customers with the sales staff. During the negotiation process, Ketuan Zhan had a heated discussion with customers on the issue of Chinese and Western medicine, and had also forced the sales staff to be able to ship 10,000 machines due to insufficient production capacity.
Although the requirements for sales personnel are strict, Ketuan Zhan has provided a lot of convenience for "Mainland Ark". In addition to selling mining machines at a more favorable price, Bitmain's mining machines are also hosted in Ming Wang at a higher price than the market price. Mine. It is reported that both Ketuan Zhan and Ming Wang are shareholders of Ark.
The new sales strategy of Huawei's executives has also brought very obvious changes to Bitmain. The self-righteous brand premium reduces the price-performance ratio of Antminer, causing competing products to eat away at Bitmain's market share. Later, Bitmain found that the strategy was wrong and started to cut prices, and found that the mining machine market was saturated and the purchase demand of miners had decreased.
More dangerous than the sales strategy is that the technical advantages of Antminer are being chased by competing products, and even overtaken. At the same time, the two mining pools under Bitmain also lost their first and second positions. The AI ​​business, which Jihan Wu placed high hopes and Ketuan Zhan personally supervised, became a laughing stock in the industry. Not only did it fail to make a profit, it almost brought down Bitmain.
Blindly introducing senior executives from Huawei to occupy important positions completely destroys the company's internal cultural foundation. The bureaucracy within Bitmain began to corrode from high-level employees to ordinary employees. Ketuan Zhan is not aware of this. He is still keen on recruiting Huawei employees, imitating Huawei's organizational structure and strategy, letting HR do sales and R&D personnel to do HR.
The organizational structure adjustment in October 2019 was the fuse for Ketuan Zhan to completely anger Bitmain management. This time, Ketuan Zhan completely marginalized Bitmain’s veteran employees, and suddenly promoted some of the “airborne soldiers” who had just joined the company to the position of person in charge, which caused the former person in charge to report to the new employees. The two managers who were originally equal The hierarchy becomes the subordinate relationship, the operation and development of different business lines are merged into a large department, the upward reporting process becomes more cumbersome, and the relationship between employees becomes delicate.
5. Headwind
On October 29, 2019, Jihan Wu urgently held a staff meeting. Prior to this, the legal representative of Beijing Bitmain has been changed to Jihan Wu, including the parent companies Hong Kong Bitmain and Cayman Bitmain. Jihan Wu stood in the lobby of Building 25, B1, announcing that Ketuan Zhan has been relieved of all duties. Any employee in the Bitmain Group shall no longer execute Ketuan Zhan’s instructions and participate in any meetings convened by Ketuan Zhan. If there is any violation, the company will demotion and expel the company based on the severity of the circumstances. If losses are caused to the company, the company will be held accountable.
Jihan Wu's speech is very long, which can be summarized as follows:
(1) Ketuan Zhan has been relieved of all duties. Also expelled from the original Huawei company HR Zhi Wang introduced by Ketuan Zhan at the end of 2018. Zhi Wang’s reputation on Bitmain was extremely poor and was ridiculed by employees as "nine thousand years" (In ancient China, the emperor was called "ten thousand years old", and the prince was "eight thousand years old." However, in the Ming Dynasty, there was an eunuch who caused harm to the country and the people. He called himself "nine thousand years old", meaning that he was only A little lower than the emperor's level).
(2) Ketuan Zhan's ability to control the company's option incentive plan has disappeared, and it is no longer possible to cancel employees' options at will.
(3) The organizational structure adjustment plan led by Ketuan Zhan was suspended.
(4) We are optimistic about the future of AI business, but the premise is that the main business can continue to make profits in order to support the company's continued investment in AI business.
In the speech, Jihan Wu also told employees the whole story of the "12.17 Incident" and bluntly said that the company is not in good condition. If no measures are taken, Bitmain is likely to go bankrupt in three quarters and he must come back to save the company.
At this time, Ketuan Zhan, who was on a business trip in Shenzhen, finally experienced the situation of Jihan Wu in the "12.17 Incident".
After the official return, Jihan Wu began to clearly point out the company's various problems in operation and management, and went deep into each business line to understand the situation. In the mining machine sales department meeting, employees spoke enthusiastically, reflecting on the difficulties and opinions encountered in the work, the marketing and sales director from Huawei asked with a surprised look, "Why didn't these issues be reported to me before?", and soon , The director was interviewed and "voluntarily resigned."
On November 2, 2019, Jihan Wu announced a salary increase for all employees. Bitmain’s last salary increase dates back to 2018. In principle, Bitmain has two salary increases every year.
On November 7, 2019, Ketuan Zhan spoke on social media for the first time, describing his hardship in starting a business, and condemning Jihan Wu for “stabbing a knife in the back”. At the end of the article, he also set himself a KPI for 2020, that is, the mining machine market share will reach 90%, and the AI ​​business will earn 1 billion.
But Ketuan Zhan's majestic plan did not make Bitmain employees feel emotional, but ridiculed him instead. Employees exposed that he insulted employees, advocated Chinese medicine, believed in Buddhism, drank in meetings, practiced Qigong...
However, there is less than half a year before the halving of Bitcoin production, and the cryptocurrency market shows no signs of recovery, which makes Bitmain management very anxious.
On January 6, 2020, Bitmain ushered in another round of layoffs, with a layoff ratio of about 1/3. This time the layoffs have caused many employees who have just increased their salaries to feel very grieved. On the one hand, they were looking forward to Jihan Wu's return. On the other hand, the compensation for this layoff was less than 18 years.
Ketuan Zhan, who has been unable to enter the Bitmain office area, once again spoke on social media and firmly opposed to layoffs. We do not need to lay off staff and we cannot commit suicide.
During the Spring Festival, Covid-19 broke out. Mainland China has begun to extend the Spring Festival holiday and advocate working from home. Under the chain reaction caused by Covid-19, most companies have chosen to cut salaries or even lay off employees. In the first two months of 2020, China's exports fell by 17%, U.S. stocks were broken four times in a row, Bitcoin plunged 40% in 24 hours on March 12, 2020, and crude oil futures fell by 300% on April 20, 2020...
Obviously, Jihan Wu can't predict, but this layoff seems to be the right decision again. In addition, from January to April 2020, Bitmain's revenue exceeded US$400 million amid the spread of Covid-19 and the collapse of the financial market.
6. Fight to the death
When Jihan Wu tried to get the company back on track, Ketuan Zhan was not helpless. On April 28, 2020, Ketuan Zhan finally rolled back the legal representative of Beijing Bitmain to before October 28, 2019 by repeatedly submitting administrative reconsiderations, and restored his status as a legal representative.
On the morning of May 8, 2020, a piece of news about Bitmain quickly appeared on the real-time hot search rankings, and even dominated the headlines of the day. At window 52 on the second floor of the Haidian District Government Affairs Center, when Ketuan Zhan, the legal person of Beijing Bitmain Company, was receiving the business license, a group of unidentified people snatched the business license from the industrial and commercial administrative staff. A source at the scene said that the number of unidentified people in the group was about 60 people, of which Luyao Liu was directing at the scene.
This is a skillful piece of news. It first leads readers to think that Ketuan Zhan is a victim, using 60 people to grab business licenses as the focus. The masses accused Jihan Wu of lawlessness, but ignored whether the government affairs center could have 60 personnel. As for Hong Kong Bitmain to have the right to appoint a representative to obtain a business license, this is a deeper level of thinking.
The follow-up report restored the real situation at the scene. Only more than ten people were present, and both sides were equipped with security personnel. Bitmain employees also broke the news in the circle of friends, claiming that Ketuan Zhan's bodyguard had injured Bitmain's authorized person, and said in a threatening tone, "Be careful!"
However, the subsequent plot reversal did not have much effect. Jihan Wu's reputation has been greatly affected. From a bloody soldier who rescued the company in trouble to a lawless criminal, it can be said to be a world of war. do not.
Ketuan Zhan, who succeeded in the first battle, began to counterattack Bitmain continuously. On the afternoon of June 3, 2020, Ketuan Zhan led a team to pry open the back door of the Beijing Bitmain office and formally occupied the deserted Beijing headquarters.
On June 4, 2020, Ketuan Zhan called on Bitmain employees to resume work and promised to expand the company's market value to more than US$50 billion within three to five years. After that, Ketuan Zhan began to contact employees by phone, trying to acquire the options in the hands of employees at a valuation of 4 billion US dollars.
Subsequently, Ketuan Zhan recalled Huawei's executives and issued a series of personnel appointments and removals. As of June 9, 2020, Ketuan Zhan has successively eliminated CFO Luyao Liu, and Wenguang Wang, the head of the mining center. Luyao Liu is responsible for controlling Bitmain's IPO plan. He also appointed Yanwu Ma as the HR director, Gang Ren as the head of the mining center, Yonggang Sun as the head of the supply chain, Ling Gu as the financial director, and Bin Zhu as the head of the mining machine business department. Bin Zhu is the senior executive of Huawei who was interviewed and left as mentioned in the previous article. During his tenure, he reduced Antminer’s 90% market share to 50%, and received a large number of complaints from miners. Internal employees once speculated that he might be Compete against the spies sent by the company.
In addition to recalling senior executives of Huawei, Ketuan Zhan also urged employees to return to work. They can receive a bonus of 10,000 yuan when they return to work on the same day, which is only half the next day. Ketuan Zhan showed a very kind side. Every time the elevator door is opened, Ketuan Zhan's hot gaze can be met, shaking hands, taking photos, and receiving money. As there is no personnel information, Ketuan Zhan does not know whether the person receiving the money is a Bitmain employee, and these people did not resume work the next day.
The effect of gentleness was not good, Ketuan Zhan began to force employees to return to work. Seeing that there are still very few respondents, Ketuan Zhan threatened employees through SMS, phone calls, EMS, emails and other harassment, issued multiple threats such as termination of contract, suspension of payment of social insurance, suspension of wages, and even used personal information saved by employees to form a group of employees. Domicile threats, requiring employees to perform "work handover", trying to force employees to return work computers, etc.
On June 10, 2020, the media revealed that Ketuan Zhan had controlled Bitmain's Shenzhen factory and prohibited employees from delivering normal shipments to paid customers, which caused difficulties in the operation of the Bitmain mining machine department.
On June 13, 2020, Hong Kong Bitmain, the parent company of Beijing Bitmain, issued a statement accusing Ketuan Zhan of signing a "Sales Agency Agreement" with the Ark Data Technology Co., Ltd. in which it holds shares, in an attempt to embezzle Beijing Bit's assets.
On June 17, 2020, the media revealed that Ketuan Zhan started selling 14,000 T17+ series mining machines at low prices.
On June 20, 2020, Hong Kong Bitmain officially suspended the supply of chips to the Shenzhen factory.
On July 13, 2020, in the "A Letter to All My colleagues in the Shenzhen Factory" released by Bitmain in Hong Kong, more details were added on the series of Ketuan Zhan's actions in June.
The legal person Feng Zhou of the Shenzhen plant is related to Ketuan Zhan. After being relieved of Ketuan Zhan's post, Jihan Wu flew to Shenzhen to have a long talk with Feng Zhou. Jihan Wu believes that Feng Zhou is the right person to manage the factory and help the company overcome difficulties, and decides to leave Feng Zhou to continue to manage the factory.
This wrong decision staged a story of a farmer and a snake. When Ketuan Zhan began to counterattack Bitmain, Feng Zhou was also quickly instigated and began to assist Ketuan Zhan in seizing customer machines and transferring 17,000 T17 mining machines in the warehouse. Hainan Continental Ark Data Technology Co., Ltd., which is held by Ketuan Zhan, sold them at a low price.
In order to protect the interests of customers, Jihan Wu had to make a compromise and paid the payment for some goods to a bank account controlled by Ketuan Zhan in exchange for delivery. However, after the other party received a payment of 109 million, the delivery stopped. On July 8, 2020, 5600 mining machines have been overdue.
At the same time, the factory defaulted on suppliers’ accounts payable as much as 200 million yuan. Bank acceptance bills issued by the factory, exceeding 36 million yuan, will expire on July 17, and more than 34 million yuan will expire on July 23. It is understood that Ketuan Zhan, after receiving the bank's dunning call, made it clear that he would not repay the loan, which would destroy the company and the entire group's credit in financial institutions.
7、 This is not the end
So far, the power struggle between the founders of Bitmain has been more than half a year. The office building already occupied by Ketuan Zhan is still empty, and most employees choose to work from home. Some chip developers returned to the office with the acquiescence of Jihan Wu and continued to maintain research and development to reduce the impact of infighting on technological iteration and competitiveness.
This giant ship that once stood on top of the supercomputer chip is crashing into the iceberg due to the madness of the former helm. Ketuan Zhan's madness and Jihan Wu's compromise made mistakes again and again. Bitmain tried to save himself many times, but was unable to get out of the black hole.
If the time goes back to that day in 2013, would Jihan Wu and Yuesheng Ge still choose to dial Ketuan Zhan?
submitted by paulcheung1990 to Bitcoin [link] [comments]

The so-called proposed “infrastructure fund” is a hostile takeover of Bitcoin Cash development. This change is a trojan horse. It is NOT free.

As many of you know, I’m an original Bitcoin’er from 2012 and a Bitcoin Cash’er since the upgrade. I converted all of my BTC to BCH and continue to use, buy and hold Bitcoin Cash. I’ve been to conferences around the world and have donated time, money and development skills to the project. Most importantly, I’m a true believer that decentralized peer-to-peer electronic cash can free us from the centralized banking plague that keeps humanity in shackles.
 
First things first: Amaury Sechet’s actions have continually pushed for complete control over the Bitcoin Cash protocol. His attacks have shown that he doesn't care about keeping Bitcoin Cash development decentralized - a measure of health for any cryptocurrency project. I've distrusted him ever since he started attacking other wallet implementations, mainly Bitcoin Unlimited. He comes across as greedy when you compare his actions with that of Gavin Andresen, who gave countless hours to the project freely and made Bitcoin Cash what it is today.
 
Second: the miners who want this change are planning a 51% attack to force it through. This attack will guarantee them control over ALL protocol development FOREVER. Whoever controls these funds controls the protocol. These so called “concerned” miners can donate to ABC or any other implementation any time they want right now and on a continual basis if they really think Bitcoin Cash development is in trouble. It’s not. This isn’t about funding, this is about them having control.
 
The proposed 12.5% coinbase theft amount is based on the current (low) price. What about when Bitcoin Cash hits $20,000/BCH or $1,000,000/BCH in a few years? This theft fund will remain in place. BCH developers don’t need that much money - and they probably won’t even get it. This Hong Kong based entity will get it.
 
This plan isn’t about supporting developers, this plan is about stealing from from other future miners, wrapped in a fake cloak of concern. Whoever controls these development funds will be all powerful. This entity will be able to force changes they want and exclude those they don’t want from protocol development. Remind you of anyone? Blockstream.
 
This will also ensure their future control when they might not have 51%+ of the hashrate. They are future-proofing mining profits.
 
Back to Amaury and Bitcoin ABC. Bitcoin Unlimited, and other wallet implementations provide decentralization of development so that when Bitcoin ABC crashes (it has in the past) the protocol continues without issue.
 
My friends, this change is poison. Amaury Sechet is a good developer, and sure, he should be paid for his time if he gets donations by listening to what the community actually wants. But donations are opt-in and should never be forced by some centralized entity. It’s also odd that Amaury's writing that "everything's fine, nothing to see here" while he makes these changes himself, to enrich himself.
 
If this hostile attack/takeover goes through, Bitcoin Cash will no longer have decentralized development. It will be forever tainted with the disease of centralized corruption and control. BCH will be a dead coin.
 
A message directly to Amaury: Your greed and quest for power doesn’t outweigh the need to keep Bitcoin Cash's development decentralized. This community would be better off without power-seeking individuals like you. Any intelligence you've provided is vastly offset by the harm you will cause by introducing this centralization.
 
Addition: It's really simple, Bitcoin Cash, peer-to-peer electronic cash is supposed to be trust-less.
 
This "fund" would force us to:
submitted by Annapurna317 to btc [link] [comments]

What will happen with BTC price after Bitcoin halving?

Bitcoin Halving 2020

In every 210K mined blocks a planned (programmed) event takes place. This event is called halving. It is a regular reduction of miners’ fee (reward) for a produced block. Bitcoin creator put these halvings in software to keep inflation in check. Most commonly one block is being mined in 9 minutes and 20 seconds. According to this, halving occurs every four years. The Bitcoin network had two halvings: first in 2012 and then in 2016. If we look back and remember how much coins miners could earn in the early history of Bitcoin, it was 50 BTC for one block. Later on, after the first halving, the fee was equal to 25 BTC and the same happened four years after, then the reward was cut down to 12.5 BTC. The next (third) halving may be expected in May 2020. The payoff then will be reduced to 6.25 BTC. This will actually continue till there’s no award left (this will approximately happen in 2140).
So why is there a need for halving? If coins are produced very fast or the amount of emitted BTC is not limited, there will be so many Bitcoins in circulation that they will have limited value. Vitalik Buterin once said in his interview with Bitcoin Magazine: «The main reason why this is done is to keep inflation under control.»

What will happen with BTC price after Bitcoin halving?

Like any other cryptocurrency price prediction, the Bitcoin price prediction is always hard to make, so we can just guess looking at a combination of factors. Opinions are divided as follows: some think that the BTC price will go up and others think nothing will generally change and the price will stay the same. There are also skeptics that see the halving as bad luck. They believe that if even 10 percent of miners quit, it might scare away the investors and make them move out their assets. As a result, the Bitcoin price will go down. After the first Bitcoin halving the BTC price grew almost two hundredfold, the second time it grew sevenfold. Both times BTC had increased volatility. But no one can guarantee the same events nowadays. As far as we can see from the previous halvings, they had the same dynamics: the Bitcoin price grew up. This gives some people hope that it will repeat after the next BTC halving in May 2020.
What are people’s opinions and predictions regarding the next Bitcoin halving? Let’s have a look.

The CEO of Pantera Capital Dan Morehead predicts the rise of BTC after the coming halving:
“It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that, and then if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and in one more year $356,000.”

Tom Lee from Fundstrat Global Advisors posted a part of the report regarding crypto outlook 2020. Here what is said regarding the BTC price in that report:
“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin – thus, we believe Bitcoin and crypto total return should exceed that of 2019. In other words, we see strong probability that Bitcoin gains >100% in 2020.”

Bobby Lee (co-founder and CEO of BTC China) also expressed his opinion via twit saying:
“After next #BlockRewardHalving in Spring of 2020, new #Bitcoin output will drop again, to just 900 BTC/day. I predict #HashPower will continue to grow, with ever higher amounts of investment in mining (electricity costs). If that amount reaches $54m/day, we‘ll have $BTC at $60k.”

Jason A. Williams had an “unpopular opinion”:
“Unpopular Opinion – Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.”

John McAfee is insanely positive as usual when speaking about the Bitcoin price prediction:
“When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020. I will still eat my d\ck if wrong.”*

Paolo Ardoino (Bitfinex & Tether Chief Technology Officer) said the following in his interview to U.Today:
“The halving is expected to occur next year, and I think it’s reasonable to expect an increase in the price of Bitcoin. I won’t do any price predictions myself and this is not financial or other advice from me or from Bitfinex or Tether, but I don’t see any reason for Bitcoin not hitting $100,000 within the next few years. That would already be an amazing goal for such technology.”

Tone Vays (Financial analyst) is less ambitious. That’s what he thinks:
“Technically, everything is in play until end of 2020, after that sub $5,000 is not likely. Worst Case Scenario: prices drop to $5k into the halving, then after halving 70% of miners shut down due to negative revenue, #Bitcoin spirals down in price but then rises from the dead!”

Petros Anagnostou, the founder of Crypto Solutions declares:
“My prediction: Bitcoin will reach $12,000 before the end of this year. And will reach a price of $50,000 – $100,000 by the end of 2020.”

To summarize, the forthcoming BTC halving 2020 will be a kind of guarantee that there will be no inflation, and investments will be profitable. At the same time, it is being one of the key factors responsible for the growth of the Bitcoin price. When it comes to miners, they usually feel stressed about it as to keep their income at the same level they will need to invest in new technical equipment. As for those who don’t mine but just buy Bitcoin to keep BTC as a cryptocurrency investment, the BTC halving will barely have any effect on them.
No one can predict what exactly will happen after the upcoming BTC halving. It is always up to you either be on the optimistic side or be one of the doubters.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk. You are the only one responsible for making investment decisions.
submitted by SimpleSwapExchange to Crypto_General [link] [comments]

What will happen with BTC price after Bitcoin halving?

Bitcoin Halving 2020

In every 210K mined blocks a planned (programmed) event takes place. This event is called halving. It is a regular reduction of miners’ fee (reward) for a produced block. Bitcoin creator put these halvings in software to keep inflation in check. Most commonly one block is being mined in 9 minutes and 20 seconds. According to this, halving occurs every four years. The Bitcoin network had two halvings: first in 2012 and then in 2016. If we look back and remember how much coins miners could earn in the early history of Bitcoin, it was 50 BTC for one block. Later on, after the first halving, the fee was equal to 25 BTC and the same happened four years after, then the reward was cut down to 12.5 BTC. The next (third) halving may be expected in May 2020. The payoff then will be reduced to 6.25 BTC. This will actually continue till there’s no award left (this will approximately happen in 2140).
So why is there a need for halving? If coins are produced very fast or the amount of emitted BTC is not limited, there will be so many Bitcoins in circulation that they will have limited value. Vitalik Buterin once said in his interview with Bitcoin Magazine: «The main reason why this is done is to keep inflation under control.»

What will happen with BTC price after Bitcoin halving?

Like any other cryptocurrency price prediction, the Bitcoin price prediction is always hard to make, so we can just guess looking at a combination of factors. Opinions are divided as follows: some think that the BTC price will go up and others think nothing will generally change and the price will stay the same. There are also skeptics that see the halving as bad luck. They believe that if even 10 percent of miners quit, it might scare away the investors and make them move out their assets. As a result, the Bitcoin price will go down. After the first Bitcoin halving the BTC price grew almost two hundredfold, the second time it grew sevenfold. Both times BTC had increased volatility. But no one can guarantee the same events nowadays. As far as we can see from the previous halvings, they had the same dynamics: the Bitcoin price grew up. This gives some people hope that it will repeat after the next BTC halving in May 2020.
What are people’s opinions and predictions regarding the next Bitcoin halving? Let’s have a look.

The CEO of Pantera Capital Dan Morehead predicts the rise of BTC after the coming halving:
“It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that, and then if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and in one more year $356,000.”

Tom Lee from Fundstrat Global Advisors posted a part of the report regarding crypto outlook 2020. Here what is said regarding the BTC price in that report:
“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin – thus, we believe Bitcoin and crypto total return should exceed that of 2019. In other words, we see strong probability that Bitcoin gains >100% in 2020.”

Bobby Lee (co-founder and CEO of BTC China) also expressed his opinion via twit saying:
“After next #BlockRewardHalving in Spring of 2020, new #Bitcoin output will drop again, to just 900 BTC/day. I predict #HashPower will continue to grow, with ever higher amounts of investment in mining (electricity costs). If that amount reaches $54m/day, we‘ll have $BTC at $60k.”

Jason A. Williams had an “unpopular opinion”:
“Unpopular Opinion – Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.”

John McAfee is insanely positive as usual when speaking about the Bitcoin price prediction:
“When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020. I will still eat my d\ck if wrong.”*

Paolo Ardoino (Bitfinex & Tether Chief Technology Officer) said the following in his interview to U.Today:
“The halving is expected to occur next year, and I think it’s reasonable to expect an increase in the price of Bitcoin. I won’t do any price predictions myself and this is not financial or other advice from me or from Bitfinex or Tether, but I don’t see any reason for Bitcoin not hitting $100,000 within the next few years. That would already be an amazing goal for such technology.”

Tone Vays (Financial analyst) is less ambitious. That’s what he thinks:
“Technically, everything is in play until end of 2020, after that sub $5,000 is not likely. Worst Case Scenario: prices drop to $5k into the halving, then after halving 70% of miners shut down due to negative revenue, #Bitcoin spirals down in price but then rises from the dead!”

Petros Anagnostou, the founder of Crypto Solutions declares:
“My prediction: Bitcoin will reach $12,000 before the end of this year. And will reach a price of $50,000 – $100,000 by the end of 2020.”

To summarize, the forthcoming BTC halving 2020 will be a kind of guarantee that there will be no inflation, and investments will be profitable. At the same time, it is being one of the key factors responsible for the growth of the Bitcoin price. When it comes to miners, they usually feel stressed about it as to keep their income at the same level they will need to invest in new technical equipment. As for those who don’t mine but just buy Bitcoin to keep BTC as a cryptocurrency investment, the BTC halving will barely have any effect on them.
No one can predict what exactly will happen after the upcoming BTC halving. It is always up to you either be on the optimistic side or be one of the doubters.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk. You are the only one responsible for making investment decisions.
submitted by SimpleSwapExchange to CryptoCurrencyTrading [link] [comments]

How Bitcoin Halving Will Affect BTC Price

Bitcoin Halving 2020

In every 210K mined blocks a planned (programmed) event takes place. This event is called halving. It is a regular reduction of miners’ fee (reward) for a produced block. Bitcoin creator put these halvings in software to keep inflation in check. Most commonly one block is being mined in 9 minutes and 20 seconds. According to this, halving occurs every four years. The Bitcoin network had two halvings: first in 2012 and then in 2016. If we look back and remember how much coins miners could earn in the early history of Bitcoin, it was 50 BTC for one block. Later on, after the first halving, the fee was equal to 25 BTC and the same happened four years after, then the reward was cut down to 12.5 BTC. The next (third) halving may be expected in May 2020. The payoff then will be reduced to 6.25 BTC. This will actually continue till there’s no award left (this will approximately happen in 2140).
So why is there a need for halving? If coins are produced very fast or the amount of emitted BTC is not limited, there will be so many Bitcoins in circulation that they will have limited value. Vitalik Buterin once said in his interview with Bitcoin Magazine: «The main reason why this is done is to keep inflation under control.»

What will happen with BTC price after Bitcoin halving?

Like any other cryptocurrency price prediction, the Bitcoin price prediction is always hard to make, so we can just guess looking at a combination of factors. Opinions are divided as follows: some think that the BTC price will go up and others think nothing will generally change and the price will stay the same. There are also skeptics that see the halving as bad luck. They believe that if even 10 percent of miners quit, it might scare away the investors and make them move out their assets. As a result, the Bitcoin price will go down. After the first Bitcoin halving the BTC price grew almost two hundredfold, the second time it grew sevenfold. Both times BTC had increased volatility. But no one can guarantee the same events nowadays. As far as we can see from the previous halvings, they had the same dynamics: the Bitcoin price grew up. This gives some people hope that it will repeat after the next BTC halving in May 2020.
What are people’s opinions and predictions regarding the next Bitcoin halving? Let’s have a look.

The CEO of Pantera Capital Dan Morehead predicts the rise of BTC after the coming halving:
“It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that, and then if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and in one more year $356,000.”

Tom Lee from Fundstrat Global Advisors posted a part of the report regarding crypto outlook 2020. Here what is said regarding the BTC price in that report:
“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin – thus, we believe Bitcoin and crypto total return should exceed that of 2019. In other words, we see strong probability that Bitcoin gains >100% in 2020.”

Bobby Lee (co-founder and CEO of BTC China) also expressed his opinion via twit saying:
“After next #BlockRewardHalving in Spring of 2020, new #Bitcoin output will drop again, to just 900 BTC/day. I predict #HashPower will continue to grow, with ever higher amounts of investment in mining (electricity costs). If that amount reaches $54m/day, we‘ll have $BTC at $60k.”

Jason A. Williams had an “unpopular opinion”:
“Unpopular Opinion – Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.”

John McAfee is insanely positive as usual when speaking about the Bitcoin price prediction:
“When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020. I will still eat my d\ck if wrong.”*

Paolo Ardoino (Bitfinex & Tether Chief Technology Officer) said the following in his interview to U.Today:
“The halving is expected to occur next year, and I think it’s reasonable to expect an increase in the price of Bitcoin. I won’t do any price predictions myself and this is not financial or other advice from me or from Bitfinex or Tether, but I don’t see any reason for Bitcoin not hitting $100,000 within the next few years. That would already be an amazing goal for such technology.”

Tone Vays (Financial analyst) is less ambitious. That’s what he thinks:
“Technically, everything is in play until end of 2020, after that sub $5,000 is not likely. Worst Case Scenario: prices drop to $5k into the halving, then after halving 70% of miners shut down due to negative revenue, #Bitcoin spirals down in price but then rises from the dead!”

Petros Anagnostou, the founder of Crypto Solutions declares:
“My prediction: Bitcoin will reach $12,000 before the end of this year. And will reach a price of $50,000 – $100,000 by the end of 2020.”

To summarize, the forthcoming BTC halving 2020 will be a kind of guarantee that there will be no inflation, and investments will be profitable. At the same time, it is being one of the key factors responsible for the growth of the Bitcoin price. When it comes to miners, they usually feel stressed about it as to keep their income at the same level they will need to invest in new technical equipment. As for those who don’t mine but just buy Bitcoin to keep BTC as a cryptocurrency investment, the BTC halving will barely have any effect on them.
No one can predict what exactly will happen after the upcoming BTC halving. It is always up to you either be on the optimistic side or be one of the doubters.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk. You are the only one responsible for making investment decisions.
submitted by SimpleSwapExchange to BitcoinMining [link] [comments]

What will happen with BTC price after Bitcoin halving?

Bitcoin Halving 2020

In every 210K mined blocks a planned (programmed) event takes place. This event is called halving. It is a regular reduction of miners’ fee (reward) for a produced block. Bitcoin creator put these halvings in software to keep inflation in check. Most commonly one block is being mined in 9 minutes and 20 seconds. According to this, halving occurs every four years. The Bitcoin network had two halvings: first in 2012 and then in 2016. If we look back and remember how much coins miners could earn in the early history of Bitcoin, it was 50 BTC for one block. Later on, after the first halving, the fee was equal to 25 BTC and the same happened four years after, then the reward was cut down to 12.5 BTC. The next (third) halving may be expected in May 2020. The payoff then will be reduced to 6.25 BTC. This will actually continue till there’s no award left (this will approximately happen in 2140).
So why is there a need for halving? If coins are produced very fast or the amount of emitted BTC is not limited, there will be so many Bitcoins in circulation that they will have limited value. Vitalik Buterin once said in his interview with Bitcoin Magazine: «The main reason why this is done is to keep inflation under control.»

What will happen with BTC price after Bitcoin halving?

Like any other cryptocurrency price prediction, the Bitcoin price prediction is always hard to make, so we can just guess looking at a combination of factors. Opinions are divided as follows: some think that the BTC price will go up and others think nothing will generally change and the price will stay the same. There are also skeptics that see the halving as bad luck. They believe that if even 10 percent of miners quit, it might scare away the investors and make them move out their assets. As a result, the Bitcoin price will go down. After the first Bitcoin halving the BTC price grew almost two hundredfold, the second time it grew sevenfold. Both times BTC had increased volatility. But no one can guarantee the same events nowadays. As far as we can see from the previous halvings, they had the same dynamics: the Bitcoin price grew up. This gives some people hope that it will repeat after the next BTC halving in May 2020.
What are people’s opinions and predictions regarding the next Bitcoin halving? Let’s have a look.

The CEO of Pantera Capital Dan Morehead predicts the rise of BTC after the coming halving:
“It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that, and then if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and in one more year $356,000.”

Tom Lee from Fundstrat Global Advisors posted a part of the report regarding crypto outlook 2020. Here what is said regarding the BTC price in that report:
“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin – thus, we believe Bitcoin and crypto total return should exceed that of 2019. In other words, we see strong probability that Bitcoin gains >100% in 2020.”

Bobby Lee (co-founder and CEO of BTC China) also expressed his opinion via twit saying:
“After next #BlockRewardHalving in Spring of 2020, new #Bitcoin output will drop again, to just 900 BTC/day. I predict #HashPower will continue to grow, with ever higher amounts of investment in mining (electricity costs). If that amount reaches $54m/day, we‘ll have $BTC at $60k.”

Jason A. Williams had an “unpopular opinion”:
“Unpopular Opinion – Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.”

John McAfee is insanely positive as usual when speaking about the Bitcoin price prediction:
“When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020. I will still eat my d\ck if wrong.”*

Paolo Ardoino (Bitfinex & Tether Chief Technology Officer) said the following in his interview to U.Today:
“The halving is expected to occur next year, and I think it’s reasonable to expect an increase in the price of Bitcoin. I won’t do any price predictions myself and this is not financial or other advice from me or from Bitfinex or Tether, but I don’t see any reason for Bitcoin not hitting $100,000 within the next few years. That would already be an amazing goal for such technology.”

Tone Vays (Financial analyst) is less ambitious. That’s what he thinks:
“Technically, everything is in play until end of 2020, after that sub $5,000 is not likely. Worst Case Scenario: prices drop to $5k into the halving, then after halving 70% of miners shut down due to negative revenue, #Bitcoin spirals down in price but then rises from the dead!”

Petros Anagnostou, the founder of Crypto Solutions declares:
“My prediction: Bitcoin will reach $12,000 before the end of this year. And will reach a price of $50,000 – $100,000 by the end of 2020.”

To summarize, the forthcoming BTC halving 2020 will be a kind of guarantee that there will be no inflation, and investments will be profitable. At the same time, it is being one of the key factors responsible for the growth of the Bitcoin price. When it comes to miners, they usually feel stressed about it as to keep their income at the same level they will need to invest in new technical equipment. As for those who don’t mine but just buy Bitcoin to keep BTC as a cryptocurrency investment, the BTC halving will barely have any effect on them.
No one can predict what exactly will happen after the upcoming BTC halving. It is always up to you either be on the optimistic side or be one of the doubters.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk. You are the only one responsible for making investment decisions.
submitted by SimpleSwapExchange to CryptoCurrencies [link] [comments]

What will happen with BTC price after Bitcoin halving?

Bitcoin Halving 2020

In every 210K mined blocks a planned (programmed) event takes place. This event is called halving. It is a regular reduction of miners’ fee (reward) for a produced block. Bitcoin creator put these halvings in software to keep inflation in check. Most commonly one block is being mined in 9 minutes and 20 seconds. According to this, halving occurs every four years. The Bitcoin network had two halvings: first in 2012 and then in 2016. If we look back and remember how much coins miners could earn in the early history of Bitcoin, it was 50 BTC for one block. Later on, after the first halving, the fee was equal to 25 BTC and the same happened four years after, then the reward was cut down to 12.5 BTC. The next (third) halving may be expected in May 2020. The payoff then will be reduced to 6.25 BTC. This will actually continue till there’s no award left (this will approximately happen in 2140).
So why is there a need for halving? If coins are produced very fast or the amount of emitted BTC is not limited, there will be so many Bitcoins in circulation that they will have limited value. Vitalik Buterin once said in his interview with Bitcoin Magazine: «The main reason why this is done is to keep inflation under control.»

What will happen with BTC price after Bitcoin halving?

Like any other cryptocurrency price prediction, the Bitcoin price prediction is always hard to make, so we can just guess looking at a combination of factors. Opinions are divided as follows: some think that the BTC price will go up and others think nothing will generally change and the price will stay the same. There are also skeptics that see the halving as bad luck. They believe that if even 10 percent of miners quit, it might scare away the investors and make them move out their assets. As a result, the Bitcoin price will go down. After the first Bitcoin halving the BTC price grew almost two hundredfold, the second time it grew sevenfold. Both times BTC had increased volatility. But no one can guarantee the same events nowadays. As far as we can see from the previous halvings, they had the same dynamics: the Bitcoin price grew up. This gives some people hope that it will repeat after the next BTC halving in May 2020.
What are people’s opinions and predictions regarding the next Bitcoin halving? Let’s have a look.

The CEO of Pantera Capital Dan Morehead predicts the rise of BTC after the coming halving:
“It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that, and then if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and in one more year $356,000.”

Tom Lee from Fundstrat Global Advisors posted a part of the report regarding crypto outlook 2020. Here what is said regarding the BTC price in that report:
“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin – thus, we believe Bitcoin and crypto total return should exceed that of 2019. In other words, we see strong probability that Bitcoin gains >100% in 2020.”

Bobby Lee (co-founder and CEO of BTC China) also expressed his opinion via twit saying:
“After next #BlockRewardHalving in Spring of 2020, new #Bitcoin output will drop again, to just 900 BTC/day. I predict #HashPower will continue to grow, with ever higher amounts of investment in mining (electricity costs). If that amount reaches $54m/day, we‘ll have $BTC at $60k.”

Jason A. Williams had an “unpopular opinion”:
“Unpopular Opinion – Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.”

John McAfee is insanely positive as usual when speaking about the Bitcoin price prediction:
“When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020. I will still eat my d\ck if wrong.”*

Paolo Ardoino (Bitfinex & Tether Chief Technology Officer) said the following in his interview to U.Today:
“The halving is expected to occur next year, and I think it’s reasonable to expect an increase in the price of Bitcoin. I won’t do any price predictions myself and this is not financial or other advice from me or from Bitfinex or Tether, but I don’t see any reason for Bitcoin not hitting $100,000 within the next few years. That would already be an amazing goal for such technology.”

Tone Vays (Financial analyst) is less ambitious. That’s what he thinks:
“Technically, everything is in play until end of 2020, after that sub $5,000 is not likely. Worst Case Scenario: prices drop to $5k into the halving, then after halving 70% of miners shut down due to negative revenue, #Bitcoin spirals down in price but then rises from the dead!”

Petros Anagnostou, the founder of Crypto Solutions declares:
“My prediction: Bitcoin will reach $12,000 before the end of this year. And will reach a price of $50,000 – $100,000 by the end of 2020.”

To summarize, the forthcoming BTC halving 2020 will be a kind of guarantee that there will be no inflation, and investments will be profitable. At the same time, it is being one of the key factors responsible for the growth of the Bitcoin price. When it comes to miners, they usually feel stressed about it as to keep their income at the same level they will need to invest in new technical equipment. As for those who don’t mine but just buy Bitcoin to keep BTC as a cryptocurrency investment, the BTC halving will barely have any effect on them.
No one can predict what exactly will happen after the upcoming BTC halving. It is always up to you either be on the optimistic side or be one of the doubters.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk. You are the only one responsible for making investment decisions.
submitted by SimpleSwapExchange to CryptoNews [link] [comments]

How Bitcoin Halving Will Affect BTC Price

Bitcoin Halving 2020

In every 210K mined blocks a planned (programmed) event takes place. This event is called halving. It is a regular reduction of miners’ fee (reward) for a produced block. Bitcoin creator put these halvings in software to keep inflation in check. Most commonly one block is being mined in 9 minutes and 20 seconds. According to this, halving occurs every four years. The Bitcoin network had two halvings: first in 2012 and then in 2016. If we look back and remember how much coins miners could earn in the early history of Bitcoin, it was 50 BTC for one block. Later on, after the first halving, the fee was equal to 25 BTC and the same happened four years after, then the reward was cut down to 12.5 BTC. The next (third) halving may be expected in May 2020. The payoff then will be reduced to 6.25 BTC. This will actually continue till there’s no award left (this will approximately happen in 2140).
So why is there a need for halving? If coins are produced very fast or the amount of emitted BTC is not limited, there will be so many Bitcoins in circulation that they will have limited value. Vitalik Buterin once said in his interview with Bitcoin Magazine: «The main reason why this is done is to keep inflation under control.»

What will happen with BTC price after Bitcoin halving?

Like any other cryptocurrency price prediction, the Bitcoin price prediction is always hard to make, so we can just guess looking at a combination of factors. Opinions are divided as follows: some think that the BTC price will go up and others think nothing will generally change and the price will stay the same. There are also skeptics that see the halving as bad luck. They believe that if even 10 percent of miners quit, it might scare away the investors and make them move out their assets. As a result, the Bitcoin price will go down. After the first Bitcoin halving the BTC price grew almost two hundredfold, the second time it grew sevenfold. Both times BTC had increased volatility. But no one can guarantee the same events nowadays. As far as we can see from the previous halvings, they had the same dynamics: the Bitcoin price grew up. This gives some people hope that it will repeat after the next BTC halving in May 2020.
What are people’s opinions and predictions regarding the next Bitcoin halving? Let’s have a look.

The CEO of Pantera Capital Dan Morehead predicts the rise of BTC after the coming halving:
“It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that, and then if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and in one more year $356,000.”

Tom Lee from Fundstrat Global Advisors posted a part of the report regarding crypto outlook 2020. Here what is said regarding the BTC price in that report:
“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin – thus, we believe Bitcoin and crypto total return should exceed that of 2019. In other words, we see strong probability that Bitcoin gains >100% in 2020.”

Bobby Lee (co-founder and CEO of BTC China) also expressed his opinion via twit saying:
“After next #BlockRewardHalving in Spring of 2020, new #Bitcoin output will drop again, to just 900 BTC/day. I predict #HashPower will continue to grow, with ever higher amounts of investment in mining (electricity costs). If that amount reaches $54m/day, we‘ll have $BTC at $60k.”

Jason A. Williams had an “unpopular opinion”:
“Unpopular Opinion – Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.”

John McAfee is insanely positive as usual when speaking about the Bitcoin price prediction:
“When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020. I will still eat my d\ck if wrong.”*

Paolo Ardoino (Bitfinex & Tether Chief Technology Officer) said the following in his interview to U.Today:
“The halving is expected to occur next year, and I think it’s reasonable to expect an increase in the price of Bitcoin. I won’t do any price predictions myself and this is not financial or other advice from me or from Bitfinex or Tether, but I don’t see any reason for Bitcoin not hitting $100,000 within the next few years. That would already be an amazing goal for such technology.”

Tone Vays (Financial analyst) is less ambitious. That’s what he thinks:
“Technically, everything is in play until end of 2020, after that sub $5,000 is not likely. Worst Case Scenario: prices drop to $5k into the halving, then after halving 70% of miners shut down due to negative revenue, #Bitcoin spirals down in price but then rises from the dead!”

Petros Anagnostou, the founder of Crypto Solutions declares:
“My prediction: Bitcoin will reach $12,000 before the end of this year. And will reach a price of $50,000 – $100,000 by the end of 2020.”

To summarize, the forthcoming BTC halving 2020 will be a kind of guarantee that there will be no inflation, and investments will be profitable. At the same time, it is being one of the key factors responsible for the growth of the Bitcoin price. When it comes to miners, they usually feel stressed about it as to keep their income at the same level they will need to invest in new technical equipment. As for those who don’t mine but just buy Bitcoin to keep BTC as a cryptocurrency investment, the BTC halving will barely have any effect on them.
No one can predict what exactly will happen after the upcoming BTC halving. It is always up to you either be on the optimistic side or be one of the doubters.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk. You are the only one responsible for making investment decisions.
submitted by SimpleSwapExchange to btc [link] [comments]

Top Proof Of Stake Networks and Staking Coin List

Proof of stake consensus algorithm was launched as an alternative to the proof of work algorithm and since its discovery in 2012, it has been used by a number of crypto platforms seeking to become more scalable than the Bitcoin network. With one of the main objectives of the proof of work model, allowing for a decentralized network to confirm transaction instead of a third party, the proof of stake model achieves this in a different manner. Before we dive into some of the top proof of stake cryptocurrency networks right now, it is best that we get an idea of what proof of stake is.
What Is Proof Of Stake?
Proof of Stake otherwise referred to as PoS is a consensus algorithm that makes use of the coin staking format. To explain better, for users on the network to be able to mine, they need to be able to stake a certain amount of coin on the network if they are to start mining. In addition to staking a certain amount, these individuals will only mine the total amount of coins that have been staked on the network. This simply means that if a manages to stake or lock up a huge amount of coins, let’s say about 10% of the total coins on the network, they will be able to validate about 10% of the total transactions that are carried out on the network. So if a network processes about 10,000 transactions each day, these miners will validate and receive rewards for validating 10% of the total blocks. Aside from the rewards they stand to gain, these miners are also paid transaction fees of users on the network each time they validate a transaction.
There are a couple of benefits that come from making use of PoS based blockchain networks and they include;
  1. They are less expensive; unlike the PoW mechanism that requires users to invest their hard-earned funds in the purchase of expensive hardware or mining rigs, these PoS networks do not require you to pay for mining rigs. All you have to do is buy or own a certain amount of coin on the network and you can begin validating transactions and earning rewards.
  2. It is eco-friendly; unlike PoW based networks, PoS networks offer users guaranteed returns. The value of these PoS based coins does not fall like the PoW based coins unless there is a slight change in the market.
  3. On this network, stakers can decide to delegate their responsibilities to third-party agents to help them carry out.
Top Proof Of Stake Networks And Staking Coins
1. Dash (DASH)
Otherwise referred to as “Digital Cash”, DASH happens to be one of the very advanced crypto networks to adopt the PoS algorithm. DASH simply acts like liquid cash or P2P platform that is used to make payments for goods and services that are purchased daily. Currently, in most countries, DASH has been integrated as a means of payment for goods and services bought daily. In the last couple of years, DASH has implemented the InstantSend and PrivateSend features which will facilitate a fast and secure transaction for all on the network. Holders of the DASH coin can run master nodes on the network or receive rewards in DASH coins.
On the DASH network, users will have to stake about 1000 DASH coins when the price of one (1) DASH is equal to $300. While this network was built on Bitcoin’s main core it happens to focus on the privacy and quick transfer of funds aspect.
Early adopters of DASH that have a large number of DASH coins in their possession will do well to become master nodes on the network. Individuals with about $300,000 worth of DASH coins will make approximately 7.5% annual profit from becoming master nodes on the network. Those seeking to stake DASH coins will do well to ensure that they have the DASH staking wallets in their possession.
2. NEO (NEO)
Previously referred to as Antshares, NEO happens to be the first Chinese open-source blockchain project in existence. The developers of this network have referred to it as the distributed network for the smart economy. Being a PoS powered network, users on the NEO blockchain can stake their coins if they want to become miners on the network. Aside from the fact that there is a crypto platform, NEO has a token which is referred to as GAS which can be staked on any of the NEO staking wallets available. Unlike some of the other PoS based crypto networks, NEO does not require users to keep their staking wallets open.
Stakers on the NEO network can expect a 4.5% annual profit when they stake on this network. There are a couple of benefits that are associated with making use of this PoS based network and they include; it is a smart network that affords you the opportunity to send and receive coins in less than no time. The certificates, as well as the identities, are digital. Also, there is a wide range of decentralized applications (DApps).
3. Vechain (VET)
This happens to be another top PoS based network and since its launch has been able to gather attention from members of the crypto community. This network has been said to be similar to the NEO network and it offers users the opportunity to carry out fast transactions at a reduced cost. Unlike some of the other PoS based networks, Vechain focus primarily on the supply chain industry. It has allied with the Amazon web service and Walmart China. When you stake VET on the Vechain network, you are given VTHO for staking VET coins on the network. It is used in transactions and it has a return of investment of about 2% or more. Users on the network get extra with the nodes and it is easy to make use of.
One of the main benefits of this network is that it is incredibly easy to make use of and it has a long-range of partnerships. In addition to this, it has a fair ROI rate as well as other amazing bonuses that users will have to enjoy as well.
As always, the team here at Affil Coin is happy to help where we can. So, if you ever have any questions, stop by the AffilCoin Telegram chat and talk to a member of our team! Furthermore, if you want to learn more about Delegated Proof of Stake, click here and visit the AffilCoin site!
submitted by affilcoin to affilcoin [link] [comments]

How Bitcoin Halving Will Affect BTC Price

Bitcoin Halving 2020

In every 210K mined blocks a planned (programmed) event takes place. This event is called halving. It is a regular reduction of miners’ fee (reward) for a produced block. Bitcoin creator put these halvings in software to keep inflation in check. Most commonly one block is being mined in 9 minutes and 20 seconds. According to this, halving occurs every four years. The Bitcoin network had two halvings: first in 2012 and then in 2016. If we look back and remember how much coins miners could earn in the early history of Bitcoin, it was 50 BTC for one block. Later on, after the first halving, the fee was equal to 25 BTC and the same happened four years after, then the reward was cut down to 12.5 BTC. The next (third) halving may be expected in May 2020. The payoff then will be reduced to 6.25 BTC. This will actually continue till there’s no award left (this will approximately happen in 2140).
So why is there a need for halving? If coins are produced very fast or the amount of emitted BTC is not limited, there will be so many Bitcoins in circulation that they will have limited value. Vitalik Buterin once said in his interview with Bitcoin Magazine: «The main reason why this is done is to keep inflation under control.»

What will happen with BTC price after Bitcoin halving?

Like any other cryptocurrency price prediction, the Bitcoin price prediction is always hard to make, so we can just guess looking at a combination of factors. Opinions are divided as follows: some think that the BTC price will go up and others think nothing will generally change and the price will stay the same. There are also skeptics that see the halving as bad luck. They believe that if even 10 percent of miners quit, it might scare away the investors and make them move out their assets. As a result, the Bitcoin price will go down. After the first Bitcoin halving the BTC price grew almost two hundredfold, the second time it grew sevenfold. Both times BTC had increased volatility. But no one can guarantee the same events nowadays. As far as we can see from the previous halvings, they had the same dynamics: the Bitcoin price grew up. This gives some people hope that it will repeat after the next BTC halving in May 2020.
What are people’s opinions and predictions regarding the next Bitcoin halving? Let’s have a look.

The CEO of Pantera Capital Dan Morehead predicts the rise of BTC after the coming halving:
“It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that, and then if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and in one more year $356,000.”

Tom Lee from Fundstrat Global Advisors posted a part of the report regarding crypto outlook 2020. Here what is said regarding the BTC price in that report:
“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin – thus, we believe Bitcoin and crypto total return should exceed that of 2019. In other words, we see strong probability that Bitcoin gains >100% in 2020.”

Bobby Lee (co-founder and CEO of BTC China) also expressed his opinion via twit saying:
“After next #BlockRewardHalving in Spring of 2020, new #Bitcoin output will drop again, to just 900 BTC/day. I predict #HashPower will continue to grow, with ever higher amounts of investment in mining (electricity costs). If that amount reaches $54m/day, we‘ll have $BTC at $60k.”

Jason A. Williams had an “unpopular opinion”:
“Unpopular Opinion – Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.”

John McAfee is insanely positive as usual when speaking about the Bitcoin price prediction:
“When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020. I will still eat my d\ck if wrong.”*

Paolo Ardoino (Bitfinex & Tether Chief Technology Officer) said the following in his interview to U.Today:
“The halving is expected to occur next year, and I think it’s reasonable to expect an increase in the price of Bitcoin. I won’t do any price predictions myself and this is not financial or other advice from me or from Bitfinex or Tether, but I don’t see any reason for Bitcoin not hitting $100,000 within the next few years. That would already be an amazing goal for such technology.”

Tone Vays (Financial analyst) is less ambitious. That’s what he thinks:
“Technically, everything is in play until end of 2020, after that sub $5,000 is not likely. Worst Case Scenario: prices drop to $5k into the halving, then after halving 70% of miners shut down due to negative revenue, #Bitcoin spirals down in price but then rises from the dead!”

Petros Anagnostou, the founder of Crypto Solutions declares:
“My prediction: Bitcoin will reach $12,000 before the end of this year. And will reach a price of $50,000 – $100,000 by the end of 2020.”

To summarize, the forthcoming BTC halving 2020 will be a kind of guarantee that there will be no inflation, and investments will be profitable. At the same time, it is being one of the key factors responsible for the growth of the Bitcoin price. When it comes to miners, they usually feel stressed about it as to keep their income at the same level they will need to invest in new technical equipment. As for those who don’t mine but just buy Bitcoin to keep BTC as a cryptocurrency investment, the BTC halving will barely have any effect on them.
No one can predict what exactly will happen after the upcoming BTC halving. It is always up to you either be on the optimistic side or be one of the doubters.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk. You are the only one responsible for making investment decisions.
submitted by SimpleSwapExchange to bitcoin_uncensored [link] [comments]

How the Bitcoin price was changing

Nowadays, the Bitcoin currency rate perhaps is the most unpredictable thing. All predictions about how BTC price will increase or drop are in some way similar to the weather forecasts. No one can tell what will happen to the coin tomorrow. One of the most important factors that experts rely on is the history of the currency rate over the whole period of BTC existence with its dynamics. It is essential to know what was happening to the coin as this allows you to understand what can happen to it in the future.

2009

The first digital currency – Bitcoin – came to the world on January 9, 2009. In the same month, the creator of Bitcoin mined the first block and he also made the first financial operation in the BTC system.

At the beginning of its history, the Bitcoin price was ridiculously low. The first exchange of BTC to US dollars was made in the summer of 2009 when Martti Malmi received 5.02 USD for his 5050 Bitcoins.

The first official Bitcoin exchange rate to the fiat dollar was established on October 9, 2009. At that time, for 1 dollar you could buy 1 309.03 BTC. Many people now regret that they missed the opportunity to buy Bitcoin for pennies.

2010

In 2010, events in the cryptocurrency market began to develop more intensively. The Bitcoin Market exchange was opened in February 2010, where it was possible to sell the digital coin. In May of this year, the most well-known deal with Bitcoin had happened. The programmer Laszlo Hanyecz bought 2 pizzas for 10,000 BTC. It was the first purchase using cryptocurrency in the real world. He posted a request on the crypto forum saying that he wanted to buy two pizzas. In exchange for that, he offered 10K Bitcoins that back then cost about 40 dollars. And there was a person who agreed to have this deal – it was the 19 years old Jeremy Sturdivant. Jeremy didn’t become a millionaire since then as he spent his coins to travel across the USA.

As for Laszlo, he doesn’t regret about the lost millions. He was mining coins for his pleasure at that time and spent them to different non-significant things.

In July of 2010, BTC price raised to 0.08 dollars. Then in November, the price went up for 50 percent. In general, 2010 was an excellent period for strengthening the position of Bitcoin. The digital currency was almost able to reach the point of one dollar.

2011

BTC overcame the point of 1 dollar only in February of 2011. By early June, the price had grown to 10 dollars. This was a small victory for Bitcoin. Another maximum was set at the point of $31.91. In the middle of June 2011, there was a sharp drop in price: from 31.91 again to 10 dollars.

The year 2011 was full of negative events. One of them happened on June 13, when a user’s electronic wallet was first hacked and 25 thousand coins were stolen from there. In a few days, some geeks hacked MtFox exchange where they got data of sixty thousand users. These events negatively affected the Bitcoin rate. It became clear that in the future the price of digital currency will be determined taking into consideration any events that occur in the market.

2012

In 2012, the exchange rate was ranging from 8 to 12 dollars per 1 BTC. This period was also rich in significant events. One of them is that Bitcoin Central bank began its work. This bank received a license and was even recognised by European regulators.

2013

February 22, 2013, was the day when Bitcoin began to grow again. The price reached the mark of $30. Another increase occurred at the end of January – $31.9. The upward trend continued. March 22 rate was 74.9 dollars per BTC.

On the first day of April, the price went up to $100 and within another nine days, the BTC price grew to 266 dollars. But the growth did not last long. By October it was $109. The possible reason for that is the arrest of an anonymous trading platform Silk Road.

Since November 2013, the price of Bitcoin began to grow anew. By the end of the month, the price exceeded all expectations and raised up to $1,200 per coin. The reason for overcoming the $1,000 point was the BTC support by Zynga game creator. Experts also noted another event that could affect the growth: one of the higher education institutions in Cyprus started accepting the Bitcoin as payment for tuition.

But by the end of the first week of December, the price was 1,000 dollars. In the middle of December 2013, the BTC price dropped to 600 dollars because the China Central Bank prohibited the country’s financial institutions to maintain operations with cryptocurrency.

2014

During the year 2014, there happened rather a significant amount of events that had an impact on the Bitcoin volatility. In the first days of January, 1 BTC was equal to 770 dollars. In February it was 700 dollars. Summer 2014 slightly strengthened the reputation of the cryptocurrency.

Many experts think that it was 2014 when BTC strengthened its position in the market, in spite of the fact that Bitcoin price was low – by the end of the year it settled in at around 310 dollars. In 2014 investors began to consider Bitcoin as a potential investment as Bitcoin price predictions seemed quite attractive.

2015

At the beginning of 2015, the BTC price started rising: with 177 dollars in January to 281 dollars to March. The number of people who were trading Bitcoin increased – there were about 160,000 people was buying and selling BTC on exchanges by August 2015. In one period of 2015 the Bitcoin price grew up to 500 dollars, but to the end of 2015, it dropped to about 350 USD.

2016

In 2016, Japan declared Bitcoin as a currency and allowed to use it to pay for goods and services. South Africa was the next who did the same. In April 2016, BTC rate went up and reached $454 per coin. By the end of May, 1 BTC was already worth $600. The reason for the price increase might be the growth of the number of transactions in the Chinese market. The highest price in 2016 was in December – $950 for one Bitcoin.

2017

The year of 2017 was an incredible period in respect of BTC price. It started with $1,000 for 1 coin. Already in June, it was $2,600. By the beginning of September, the price jumped to $5,000 per 1 BTC. On December 17, the Bitcoin price achieved a record and was over 20,000 US dollars.

How did this happen? Here are some reasons that experts point due to the growth of Bitcoin price:


However, later in December, the price plummeted from 20 000 dollars to 12 000 dollars. Experts had different reasons including that one of the first cryptocurrency creators sold out all his digital savings and called such investments too risky.

2018

During the first 4 months of 2018, the price of BTC dropped below 7,000 USD. These negative dynamics were quite logical because the rise is always followed by the fall. For the first time since October 2017, the Bitcoin price fell below 6,000 dollars. On November 25, the price of Bitcoin fell even lower – $3,676 per 1 BTC. By mid-December, the bitcoin rate fell by almost 80% to its yearly rate, the price was $3,200.

Nowadays

What can we expect in 2019? What Bitcoin price predictions do crypto experts have? People hope that 2019 will bring new opportunities for Bitcoin and also other cryptocurrencies. Some investors and crypto enthusiasts predict that the BTC price will grow to 40 – 50,000 USD by the end of 2019. One of them, John McAfee, is assured that the price will rise to 1 million dollars by the end of 2020. He even had a bet that he posted in his Twitter saying that he would eat his “love muscle” if his BTC price prediction will not come true.

There may be a number of factors that can influence the BTC price in 2019. They are:

As it was said before, Bitcoin price predictions are almost like the weather forecast – you never know what price it will have tomorrow. If you think about investing in BTC or any other cryptocurrency you should follow its rate at present time but never forget to compare it to the past. But please, don’t bet to eat any of your body parts 🙂

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submitted by SimpleSwapExchange to BitcoinMarkets [link] [comments]

How Craig Wright is attempting to dishonestly take over the Bitcoin network

With the upcoming Bitcoin Cash hard fork in just a couple days, everyone is at odds with what is going to happen. In this post, I argue that Nakamoto Consensus is working as designed for honest network participants.
When the Bitcoin whitepaper was published, Satoshi made it very clear what Bitcoin is: A Peer-to-Peer Electronic Cash System. Bitcoin according to Satoshi is a trustless network, where anyone can can send payments to each other with out having to trust a third-party. Nodes (miners) use proof of work to form a block chain so payments cannot be reversed or altered later.
What is the Bitcoin network?
Again referring to the Bitcoin whitepaper in section 5, the network or system rules work like this:
  1. New transactions are broadcast to all nodes.
  2. Each node collects new transactions into a block.
  3. Each node works on finding a difficult proof-of-work for its block.
  4. When a node finds a proof-of-work, it broadcasts the block to all nodes.
  5. Nodes accept the block only if all transactions in it are valid and not already spent.
  6. Nodes express their acceptance of the block by working on creating the next block in the chain, using the hash of the accepted block as the previous hash.
Note: in the first step, it is also covered in section 2 saying "To accomplish this without a trusted party, transactions must be publicly announced [1], and we need a system for participants to agree on a single history of the order in which they were received."
"The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes." - Satoshi Nakamoto
So what is an attack?
In the whitepaper an attacker would be someone trying to "defraud people by stealing back his payments." It is also explained that an attacker could try to "generate an alternate chain faster than the honest chain" for the purpose of "creating value out of thin air or taking money that never belonged to the attacker."
There are two key points to identifying an attacker:
  1. the attacker is not working within the defined rules of the network and
  2. the attacker is trying to defraud users while generating a longer chain
Identifying the attacker
In the upcoming hard fork, an attacker has been identified who is not working within the defined ruleset of the network with the intent of defrauding users by generating the longest chain.
Courtesy of redditor fromaratom, he helped to outline how the attacker is trying to change the protocal to defraud users by doing the following:
How is the attacker going to create a longer chain to try to take over the network? Here's how, as I explained in this comment:
You can see in these three 32mb blocks mined by Craig Wright's "Big Mining Group" that he was doing a Poison Attack.
In the whitepaper, Satoshi also wrote: "If a greedy attacker is able to assemble more CPU power than all the honest nodes, he would have to choose between using it to defraud people by stealing back his payments, or using it to generate new coins. He ought to find it more profitable to play by the rules, such rules that favour him with more new coins than everyone else combined, than to undermine the system and the validity of his own wealth."
With this scenario, we have a greedy attacker who will "play by the rules" to "generate new coins." Unfortunately, because this attacker is trying to take over the network with the goal of 100% hashing control, the attacker is breaking the trustless nature of the system and will then later attempt to defraud users of their money by having full control.
Conclusion
We have identified a dishonest miner (attacker) that plans to take over the network using a Poison Attack. The next one is planned right after the hard fork on November 17 using what is called the "Satoshi Shotgun" where millions of expensive to validate transactions will be sent to the network to DDoS it. As it's perfected, they will continue this attack with sustained hashing to try to overtake the network.
At this time it's unclear how the network will defend itself against this prior to the attack, but Gavin Andresen came up with a novel solution to a 51% attack back in 2012 that could help stop it. Post-attack, as Satoshi said, the attacker will end up losing by undermining the system and therefor destroying his own wealth.
This post is my personal opinion authored by myself based on observations of recent information and events.
submitted by BitcoinXio to btc [link] [comments]

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Bitcoin-Mining ist der Prozess, der sicherstellt, dass Bitcoin wie geplant funktioniert, und es ist der einzige Weg, um neues Angebot auf den Markt zu bringen. Miner sind Individuen oder Unternehmen, die Rechenleistung beitragen, um bei der Aufrechterhaltung und dem Betrieb des Blockchain-Netzwerks zu helfen, das Bitcoin als digitaler Währung zugrunde liegt. Diese Rechner sind dafür ... Is Bitcoin Mining Profitable Today - Bitcoin 2012 Is Bitcoin Mining Profitable Today Bitcoin Guild Bitcoin Charts Trading View When Bitcoin occurred on the market for the first time, and several years after that, you could mine it with a basic home PC, and it was highly profitable during that period. However, after several updated in security and quality of codes and systems, mining requires high-quality equipment, especially graphics cards, for an effective process. That is the reason why most of the Bitcoins are ... Bitcoin Mining Calculator. For the purpose of answering the question: is Bitcoin mining profitable, we will give you two scenarios as shared by BuyBitcoinWorldWide. This should explain how much Bitcoin mining cost. You can use a Bitcoin mining calculator like CoinWarz to make this part easier for you. Scenario 1 Launched in 2012, Bytecoin leverages ring signatures to create unlinkable transactions between stealth addresses, fostering an ecosystem of anonymity within their blockchain. The majority of Bytecoin use cases overlap with Bitcoin and other payment processing cryptocurrencies. However, Bytecoin’s differentiating factor is shared between its full anonymizing blockchain and its first-to-market ...

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Bitcoin hack. Blockchain hack. Live proof +38$ for 2 ...

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