Please put the bitcoin as a commodity to analyze

Please put the bitcoin as a commodity to analyze


Bitcoin really worth it? Today is like the price of $15000, or the true value of only about $3000? Since last September bitcoin prices continued to surge, perhaps after a number to reflect its value.

General virtual currency fans divided into two camps. One says that these money is a medium of exchange, and another will be regarded as investment. From the current situation of investment camp win temporarily: use bitcoins to buy most of the goods are not realistic, but its price is soaring, has been rising since mid September last year nearly three times.

If bitcoin is a kind of investment, so it is close to the gold. Both are a store of value, have some intrinsic properties against inflation, because the supply is limited, and with the passage of time the new mining reserves will increase the cost of technological breakthroughs, unless.

However, if bitcoin really is a digital gold, investors should be used as a commodity to analysis, evaluation factors of its supply side constraints and drive demand. From this point of view is not optimistic about the results.

The long term the most important factor for the gold price is the cost of production. When demand fell when the production cost will become a natural price support to a certain extent. Of course, when the demand, the price of gold may rise, away from this support, but once inflation or dollar gold fears receded, began to lose its appeal as a store of value, the marginal cost of the price will drop to production.

The last round of gold bull market is a typical example: according to FactSet data, in 2011 the highest price of gold rose to near $1900 an ounce, is the largest listed gold producer BarrickGoldCorp. was more than three times the cost of production. By the end of 2016, the price of gold fell below $1151 per ounce, according to FactSet data, which is slightly higher than the production cost of $844 per ounce of gold Barrick.

Bitcoin same analysis results show that, if the demand is depleted, the price may be facing a sharp decline in the situation. According to the analysis of one of the largest electricity supplier in Louisiana, CrescentElectricSupplyCo., a bitcoin mining cost only $3224. According to the energy information administration of the U.S. Department of energy (EIA) data, as of October, the state has the lowest average residential electricity cost. For bitcoin mining companies, after the purchase of mining equipment for power, cost is the biggest.

On the demand side, some investors seem to bitcoin as a hedge against currency devaluation, which is similar to the function of gold. Deutsche Bank (DeutscheBankAG, DB) estimates that Japanese retail investors are the backbone of bitcoin rose last fall behind, while the yen in the same period last year fell, during early September to mid November by about 6%. According to the Japanese bank Nomura Securities (NomuraSecurities) said that about 40% of bitcoin transactions are denominated in Japanese yen.

Next year if the yen rose sharply, or even investors are beginning to think, compared to gold, bitcoin as a hedging tool for pricing is too high, bitcoin may face a long way to fall.

The e-commerce giant DMM launched bitcoin mining project

The e-commerce giant DMM launched bitcoin mining project


Along with the electronic commerce and digital services company DMM announced the establishment of a new mineral company, Japan’s currency is becoming more and more popular encryption. This attracted another old enterprise.

Last week, the company said on its website that will begin to test the plan next month. Although the specific date has not been announced, but DMM said that if the trial is successful, it will be completed before the end of this year.

In addition to the mining business outside, DMM also launched its own cloud service ore mining pool, through the sale of the service to the buyer is external force. It is unclear what encryption currency will be excavated, but someone explained that bitcoin and etheric fang.

In addition, although it did not provide details about mining hardware source, also did not disclose its plans to produce how much capacity, but DMM did say it “will become the world’s ten largest mining field” in 2018, and plans to eventually enter the top three.

This is Japan’s second announced in the past week the company established a crypto currency. Another technology company GMO in the last century, was founded in 90s, plans to open a bitcoin mine somewhere in northern Europe and run a cloud computing service.

DMM was founded in 1999, founded by billionaire KeishiKameyama, started in the porn industry, and later extended to a series of electronic commerce and digital service. It is worth noting that, according to the data of 2014, the company also owns a subsidiary company, the subsidiary company is the world’s second largest Forex firm.

Bitcoin miners do not oppose isolation isolation against Bitcoin Core but witness testimony

Bitcoin miners do not oppose isolation isolation against Bitcoin Core but witness testimony

Bitcoin core development team Bitcoincore is a defender of the bitcoin protocol, made a great contribution to the development of bitcoin, within the community is high.

But in the direction of the early expansion of bitcoin, bitcoin core development team appeared internal contradictions and struggles, the main contradictions in bitcoin backbone on the issue of expansion.

This contradiction leads directly to the core members of division, or even to the point of personal attacks. Blockstream is the main study of side chain expansion, aimed at expanding the company bitcoin protocol layer functions, control after splitting the bitcoin core team is the commercial company, because the Blockstream core employees from the Bitcoincore team.

Since bitcoin miners are an important participant in the bitcoin industry, the development of maintaining ecological industrial chain.

In the bitcoin circulation and trading links, Chinese occupy the entire bitcoin market half of the country, the same China is bitcoin mining participants in most countries.

Because of the demand for electricity, large bitcoin mine in the domestic layout in Sichuan province and Inner Mongolia in more remote areas, bitcoin miners regarded as the most difficult “for the industry workers”.

In the bitcoin expansion issue is not particularly urgent before bitcoin miners are considered rigid reflected in mining costs, a variety of factors such as force, electricity, maintenance, currency price. While most of the bitcoin miners is not to consider the size of the blocks, which is bitcoin expansion problem, certainly not to consider how bitcoin reasonable are the center of this series of details of the route, return on investment and more focus should be concerned about bitcoin miners.

Whether from the market or technology development theory’s point of view, bitcoin miners naturally should have a strong voice and voting rights.

With the bitcoin industry participants and concerns of the growing bitcoin expansion has evolved into a serious dispute in the community, bitcoin miners gradually aware of their need to participate in the expansion of the dispute to the bitcoin core development team Bitcoincore is trying to turn the marginal rights bitcoin miners, even is the control of bitcoin miners the right to speak.

A Bitcoincore team is in the maintenance of bitcoin agreement has made great efforts, but the team does not represent cash and miners, even ordinary participants, but not the core as a synonym for bitcoin.

As bitcoin miners, the backbone edge represents the reduction of income, the expansion method to Bitcoincore team on behalf of the parties to support block 1M + lightning network (SW), Bitcoincore is determined not to agree to raise the size of the main chain.

As the backbone of block transfer speed is very slow, the direct result of the participants need to transfer transaction in the side chain, the chain to the edge, in the main chain.

The idea is that bitcoin miners in bitcoin expansion decisions must face, choose to increase the size of the blocks in main chain.

On the other hand, bitcoin miners do not oppose the isolation of witness Segwit Bitcoincore team, but against Segwit, the opposition did not increase the size of the main chain expansion route.

From a technical point of view, isolated witness practicability and innovation undoubtedly, otherwise will not sign the Hongkong miners consensus (the Hongkong consensus is a compromise, not only improve the chain block to the 2M, and the lightning network).

The Hongkong consensus after the Bitcoincore team will settle a matter by leaving it unsettled default. So the industry pointed out that why the Bitcoincore team must adhere to no big block line, perhaps because the chain expansion will directly lead to the marginalization of lightning network, affect the core interests of the core team.

In the community of the debate, as long as the miners are support blocks, will be Segwit to pursue their own interests to attack too, interpret out of context. The company is the commercial control of a party, the other party against commercial interests, it makes no sense.

Pay attention to | price volatility thrilling, bitcoin is a haven or Ponzi scheme?

Pay attention to | price volatility thrilling, bitcoin is a haven or Ponzi scheme?

Review since the beginning of 2017, the financial market is the most thrilling non bitcoin price volatility is……
Since the start of 2017, with a series of new formal “throne” of Trump and the quick launch, set off a lot of waves in the financial market, but if you look at this period of time since the beginning of 2017, “bitcoin price volatility”, is awakened by the dynamic soul.

In the second half of 2016, bitcoin prices had soared 43%, and the annual increase of almost two times, and hit a record high in the early morning of January 5, 2017. But bitcoin Carnival momentum on the afternoon of January 5th halted, the same day the largest decline of 20%, and the continuous decline in three trading days later, all the way from the top $1175 dropped back below $900, the price was close to $800. After a month or so after the rebound, especially at the beginning of February than the rash hit, fall back to below $1000. Recently, bitcoin prices rose again in early March, and once reached $1290.
Bitcoin price chart $

Bitcoin “China characteristics”
Behind bitcoin volatility at the beginning of this year, has a close relationship with Chinese capital market and the RMB exchange rate, because bitcoin since the beginning of 2015 rose sharply, driven mainly by China buyers.

According to statistics, in the second half of 2016, bitcoin trading volume Chinese market accounted for more than 98% of the world, and the global 2/3 bitcoin mining are the main Chinese. What is more important, because many bitcoin platform has a dual currency (Renminbi) in foreign exchange trading function, Chinese regulatory tightening, part of the bitcoin buyers in the onshore market through the RMB to buy bitcoin, and sold in the offshore market, funds will be transferred to the bank account to complete the “gray” foreign exchange.

The so-called “into also Xiao He, be defeated also Xiao He”, it is this causing the currency soaring Chinese characteristics, has also become a month early bitcoin plummeted for three days — 25% RMB denominated Chinese territory is the main reason of the plunged nearly 1/3. At that time the central bank China headquarters in Shanghai, Shanghai City Finance Office of the relevant regulatory authorities in January 6th with bitcoin trading platform bitcoin Chinese “is mainly responsible for. After the interview, the central bank also issued a special Chinese official documents, “said bitcoin is a specific virtual goods, does not have the law such as monetary compensation of the mandatory property, does not have legal status and monetary equivalent, can not and should not be used as currency in circulation in the market.”

Interestingly, after a slump, bitcoin again tenacious rise, but the beginning of the February Chinese domestic major bitcoin trading platform jointly announced: to further suppress the bitcoin market speculation, prevention through bitcoin illegal pyramid selling, money laundering and swap behavior, withdrawal of business today will be suspended bitcoin and Wright currency. This makes the currency hit again.

This was quite different from the traditional currency to rely on sovereign credit endorsement as the main selling point of the new currency, but ironically the price is affected by the phenomenon of great China policy.

“Safe havens” or “Ponzi scheme”?
With the ups and downs of bitcoin, on this special “currency” views also support bitcoin Public opinions are divergent., people think that this is against the foreign exchange control, to avoid the devaluation of the renminbi “natural hedge currency”; but after the collapse, bitcoin was many people said to be transnational “the biggest Ponzi scheme of the century”!

Want to solve this mystery, we need to figure out what is bitcoin itself, resulting in what is the essential reason bitcoin change radically?

The nature of bitcoin is a special solution of complex algorithm generated, each solution can solve the equation and is the only. The process of the so-called “mining” is the huge amount of calculation to seek the solution of equations, the equations were designed with only 21 million solutions, so bitcoin limit is 21 million. At the same time, finds bitcoin ownership is accomplished through block chain technology, does not require the central authentication and clearing institutions, so as to ensure the relative safety and less affected by the global electronic trading foreign exchange regulatory restrictions. So whether or not this is money?

I’m afraid not at this stage, although the monetary transaction attributes, but compared with common currency, and government agencies have no authority behind the endorsement — all the money with general government and the central bank security of one country, behind the national tax and money supply control rights guarantee. So, in the absence of any major economy government approval, bitcoin can not guarantee in any country or region can stabilize the lawful use and circulation, after all, the government has the right to ban bitcoin transactions. This is why the government Chinese words, currency immediately plummeted phenomenon.
Further, the reason lies in the core of 2016 and early 17 bitcoin rose sharply: many unique dual currency bitcoin platform (Renminbi) Trading function, let bitcoin transaction alienation as a grey exchange tool. The ownership and the use of bitcoin blockchain technology for storage, and does not rely on a central supervision and clearing system, makes the safety guarantee at the same time, usually less by the governments tax and anti money laundering supervision. Therefore, it has become an excellent choice for underground banks “cross-border money laundering”.

Bitcoin transactions and demand is strong, in addition to investment speculation, mainly depends on how many people need to “change to” swap through this way.

In fact, after bitcoin in many regions in Europe and America are widely used in underground, the gang of drug traffickers trading, while in the control of foreign exchange under the premise Chinese became one of the important means of illegal swap exit. Thus, the driving force behind the price of bitcoin is mainly “money laundering needs”, and directly linked to the economic cycle, there is no political crisis and so on, there is no “hedge” features, and the gold and other precious metals have great difference.

But “bitcoin is a” Ponzi scheme “is also an alarmist, because it does not exist between an institution fraud charge money, eventually snowball getting bigger, leading to insolvency problems. All of the bitcoin price decided by market transaction price, and ownership is relatively transparent, but also by all participants bear their own risk. The majority of the market and the investment goods are very similar, even the currency and the foreign exchange market through the trading decision mechanism of exchange rate quotations are very similar.
Not money, but commodity
It seems that bitcoin is not a “currency”, nor “hedge”.

Chinese central bank recently in the document will bitcoin as a “specific virtual goods” is actually more accurate, because the trend is determined by the supply and demand change, the price determined by the market price trend, the fluctuation of the characteristics, is in line with the characteristics of most of the “commodity”.

We can still be seen as a big fluctuation, special commodity risk. Bitcoin investment will not be fraud, but need to pay special attention to the market risk supervision behind, especially regulatory factors from the Chinese……

The IRS reminded bitcoin holders tax, game player rage against the “logic of god”

The IRS reminded bitcoin holders tax, game player rage against the “logic of god”


According to voice of the economy, the “world” report, is now in the United States once a year the tax season, beginning in January 23rd of this year, as of April 18th, the IRS through the media to remind American citizens, don’t forget to return, if not sent before April 18th tax returns, could face fines. At the same time, the IRS again, if in the past year, please report the bitcoin trading or holding.

The IRS ruled in 2014, bitcoin property is not money, but the property, bitcoin investors will be treated as equivalent stock investors must pay capital gains tax. For a few pay salaries bitcoin employers, they must also declare the remuneration of these, and other assets to pay the same, should be subject to federal income tax and payroll tax bitcoin income. In addition, bitcoin mining must declare they dig to the fair market value of bitcoin, as part of their income to tax. The use of bitcoin payments to independent contractors and other service providers, they must pay taxes.

To prevent people missing, the IRS also found the largest bitcoin trading platform coinbase, requires the platform to provide all the trading information in recent years, the IRS also apply for the approval of the court, but it touched coinbase’s bottom line, at the beginning of this year they will appeal, request the court rejected the summons and withdrawal of tax the authority limit.

An American bitcoin game player said: “the United States to engage in this kind of logic, as long as I established a law, your income should give tax local tax, which is inherited in the industrial era and the information theory, not time to go now. All credit information age is money, in the United States is the concept of pay attention to credit money and credit, but they often explained above bitcoin it misses the point that bitcoin is to solve global credit problems through technical point of view, this is not the United States government to build, it is the users all over the world to work together to build the center of the digital currency, should not be taxed by the americans. Since it was put forward and yelled in a complete mess. Some people have sued the IRS, the IRS requirements coinbase the largest exchange all hand over user data, let them pay an annual tax. Some users have to pay taxes to go, but many people do not pay.”

In the past year, bitcoin prices rose more than 200%, have been gold. The IRS believes that bitcoin transactions and other foreign currencies or gold financial transactions, the need to pay tax. But bitcoin users objected: “a friend has to pay a tax, even after the trouble report is a little bit. Some users do not report, what do I offer? If I lose, why should I pay my taxes? Bitcoin rose so much, some people buy low, now you let him return, how many newspaper? More importantly, he also reported middle duty loss of how to do, this thing would have no legal provisions.”

Bitcoin group is listed on the Australian Stock Exchange

Bitcoin group is listed on the Australian Stock Exchange


The Australian Stock Exchange will usher in the second listed companies – BitcoinGroup (bitcoin bitcoin group).

Bitcoin group hopes to raise 20 million dollars to the public offering of 100 million shares at a price of 20 cents per share ($13868000) of funds. The company is expected to be officially listed on the Australian Stock Exchange in November this year.

The first company listed on the Australian Securities Exchange is DigitalBTC, DigitalBtc is a company engaged in bitcoin mining business of the company, due to decline in the price of bitcoin, the gradual transformation of bitcoin transactions, the development of the retail business and consumers for various applications. DigitalBtc in 2014 June for the first time on the Australian Stock Exchange (ASX) to “DigitalCC” company debut.

Bitcoin Group Chairman Andrew? Plimpton (AndrewPlympton) said, the number of the company bitcoin current daily production accounted for the global production bitcoin number of 1.57%, and a bitcoin mining equipment in 6 places Chinese and Iceland.

To raise funds will have about 18 million Australian dollars ($12524400) into bitcoin mining equipment.

In addition, bitcoin group is highly dependent on the China mining business. Bitcoin Mining Group expects its business is the whole network will reach 13.4%, according to the price of $400 per bitcoin to estimate.

Listed on the road twists and turns of bitcoin group, the launch date has been repeatedly delayed, but CEO SamLee said, regulators also to ensure that investors get more detailed information.

He said:

As the industry’s first bitcoin IPO listed companies, there is no doubt that we have established a model.”

“We understand the Australian Securities and Investments Commission (ASIC)’s duty is to protect the interests of investors in Australia, so they need to understand our unique business model. We are very grateful to ASIC in support of our paid work, help us to ensure that our prospectus can more accurately reflect the bitcoin group’s current and future development.”

DELL has become a bitcoin mining data center providers

DELL has become a bitcoin mining data center providers

In July this year, DELL (DELL) said the company has begun to accept bitcoin payments, show the preliminary change of bitcoin attitude. Now further news, according to foreign media news, DELL has officially become bitcoin mining data center providers.

The company has reached an agreement with the Seattle bitcoin provider to reach an agreement on the server hosting, by DELL to provide hosting space. It is said that DELL will now also part of the host server for bitcoin mining.

Bitcoin founder ASIC said that over the past three years, bitcoin ASIC managed data center has been in Washington, but the facilities is quite small. And DELL cooperation means that the bearing capacity of up to 4 times.

The price is convenient, it was revealed that bitcoin providers compared to past data center out of the 2 times the price in return for DELL high quality data center hosting services.

GMO Internet Tentatively Launches August Cryptocurrency Cloud Mining Services

nRunaway Comment: Recently, Japan’s IT giant GMO Internet announced tentative tentative August launch of cryptocurrency cloud mining services. According to the company, it will launch some promotional activities in March to attract the attention of users. At the same time, the company also said it will put a part of the mined tokens on its GMO cryptocurrency exchange to increase the market Diversification and liquidity.n
nTranslation: Clovern
GMO Internet, a Japanese listed IT company, tentatively plans to launch the previously announced cloud mining service in August.n
The company disclosed in the fall of last year that it would invest tens of millions of dollars in mining operations in an effort to create an energy-intensive Web site that will add new deals to the blockchain and use newly excavated Tokens as rewards. With cloud mining, customers are able to buy and receive hashes and receive rewards, minus any associated costs – but this pattern has long been linked to fraud, including the actual possession of less than the processing power sold the company.n
In a February 9 announcement, the GMO said the company will launch a series of events starting this March to attract users’ attention to the service. This service contract for two years, worth up to 5 million US dollars. Although the GMO mining site has so far not been disclosed, its mining equipment is said to be located in Northern Europe.n
The company said:n
n”There are already a large number of users consulting this cloud mining service, so from March 2018, GMO Internet will hold a public meeting in 9 cities in Japan to meet the intent to participate in this service from all over the world Business needs. “n
nGMO said the service “tentative” was released in August.n
It is noteworthy that the company will put a portion of its mined tokens on its GMO cryptocurrency exchange in order to “increase the diversification and liquidity of trading markets.”n
In recent months, the Tokyo-based company has released a series of announcements related to cryptocurrencies. One of the most prominent is the bitcoin-based payroll system, but only for its employees. In addition, GMO has introduced services that focus on customer knowledge (KYC) and anti-money laundering tools.n

Japan DMM launched a large-scale encryption of mines and showrooms

nRunaway Comment: After the Japanese entertainment giant announced the establishment of a cryptocurrency exchange, it plans to open mines and mines in the country and complete the construction and opening of the exhibition hall in March. According to the market, the company will choose the most profitable currency at that time. There are also two types of miner configurations. In the future, cloud mines will also be developed to open ordinary users to buy mining rights.n
nTranslation: Annie_Xun
Japanese entertainment giant DMM launched “large-scale Japanese quality mines” and plans to deploy more mines overseas. DMM will also launch a showroom to allow the public to visit the mine as well as the mine.n
DMM mine in Japann
DMM Inc, the popular e-commerce website for 27 million members, announced the launch of a mine in Kanazawa, Ishikawa Prefecture.n
n”DMM operates large-scale ‘Japanese-quality’ mines at an incalculable scale compared to other domestic carriers, and we set up mines in cold blocks and we have achieved the goal of generating electricity at a low price and maximizing mining revenue.”n

DMM is located in Kanazawa, Ishikawa, Japan.n
In addition, the company revealed that its mine “has also become an open showroom where our customers can enter.” Showroom will exhibit 1,000 mines. “We plan to open the showroom from March, and we plan to start the general public’s visit from mid-March.”n
After Japan’s announcement, the company plans to deploy more mines overseas. Local media reports, “From the domestic start, DMM engineering team directly involved in the operation, quality assurance, to win the trust of domestic users.”n
DMM mining machinen
According to the press, DMM is equipped with two mine machines, ASICs and GPUs in the mine that allow companies to tap into different kinds of cryptocurrencies. “DMM’s ASIC miner is made in China with a processing speed of 650 MH / s and GPU miner speed of 300 MH / s or below.”n
The news said, “ASIC and GPU power consumption is 750W and 1900 to 2000W respectively.” GPU mine with 12 graphics card to connect the two power supplies.n
DMM said it will dig several cryptocurrencies, including Bitcoin, Ether and Litecoin. Shinichi Takaguchi, a DMM mining lab, told the media that “we are not specific to bitcoin,” but stressed “Of course we also dig bitcoin.” He reiterated that depending on the market, they would dig up all the most profitable currencies at the time.n
n”In the future, we plan to start managing the DMM mine and plan to develop a cloud mining facility that will allow ordinary users to purchase mining rights around the summer.”n
nDMM also recently launched a cryptocurrency exchange that supports seven different cryptocurrencies and fourteen pairs of transactions.n

Russian scientists nuclear laboratory was arrested for mining

nRunaway Comment: News reports that several Russian scientists were arrested for using computers supervised by the nuclear research facility secretly, and were facing criminal charges. The laboratory used to be the site where the former Soviet Union produced the first nuclear bomb, and because of the importance of facility safety, the computers here are often not networked.n
nTranslation: Annie_Xun
Reports show that several scientists working on Russian nuclear weapons research facilities were arrested for mining their work sites.n
Interfax and BBC News show that these unnamed scientists have been referred to the Federal Security Service (FSB).n
The Scientific Research Institute for Experimental Physics states that “unauthorized use of computer facilities for private use, including so-called mining, exists.”n
It is reported that these scientists use a supercomputer in the facility for mining; mining is an energy-intensive process that adds trades to the blockchain (and is rewarded in token tokens). Research Center security department received a warning, the computer network facilities (according to sources pointed out that for security reasons, this computer is usually not online).n
Interfax said these scientists may face criminal charges following their arrest.n
The laboratory, which was founded in 1947, is known for having made the first nuclear bomb here in the former Soviet Union.n