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August 2014

Bitcoin Mining Equipment Demand is Exceeding Supply

Bitcoin Mining

Bitcoin Mining

As the world’s largest crypto by market cap hurtles past 11k, the demand for new Bitcoin mining equipment is exceeding supply. Now, manufacturers are feeling the pressure to produce enough machines to meet this demand.

Are we revisiting the same issue that occurred at the end of 2017, where demand was three times that of supply? It looks like it.

Bitcoin Mining is in Demand

Bitcoin price surged past $10,000 USD over the weekend and is already looking comfortable at $11,368 per coin.

Though not quite at its all-time high of $20,000, Bitcoin’s current price is still a 200% jump since February. While this is great for investors, miners are feeling the pressure, as according to Steven Mosher of Canaan Creative, the maker of the Avalon Miner:

“The surge in bitcoin resulted in increased demand and supplies were already short […] the current state of the industry is that inventories are down and demand is high.”

To deal with the surge, Bitcoin mining companies such as Canaan Creative are developing newer mining models that aim to mine faster using less wattage.

New Miners

Canaan’s latest is an updated version of its Avalon 851 machine, called the AvalonMiner 1041. This model is expected to compute 37 tera hashes per second (TH/s) with electricity consumption at 2,361 watts per hour.

By comparison, the older 851 model computes 14.5Th/s, consuming 1450 watts an hour.

As stated, demand for this equipment is exploding with Mosher detailing that pre-orders for such models are already backlogged to October.

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Other Bitcoin mining companies are also feeling the burn. Only last week, Bitmain rolled out updated versions of its Antminer S9 model called the AntMiner S9 SE and S9k.

There is good news too, of course, for miners. With Bitcoin price rising and business booming, the time it takes for new mining equipment to pay for itself has decreased significantly. Data from TokenInsight estimates that in Q2, the average payback period for most mining equipment was between 60–150 days. Prior to this, the payback period ranged between 120–280 days.

What are your thoughts on Bitcoin above 11k? Will it keep going? Will Bitcoin mining meet the demand?

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France Pushes to Block Development of Libra in Europe



France’s Minister of the Economy and Finance has said the country will block the development of Libra in Europe as it threatens “monetary sovereignty.”

Bruno Le Maire stated that he had serious concerns about the disruption the planned Facebook-led cryptocurrency could have on governments’ economic power at a meeting of the Organisation for Economic Co-operation and Development in Paris. “This eventual privatization of money contains risks of abuse of dominant position, risks to sovereignty and risks for consumers and for companies,” said Le Maire on the subject of Libra.

Libra would be decentralized like all other cryptocurrencies; however, control of the heavily scrutinized coin would be in the hands of a Swiss-based non-profit organization. “Any breakdown in the functioning of this currency, in the management of its reserves, could create considerable financial disruption. All these concerns about Libra are serious. I therefore want to say with plenty of clarity: in these conditions, we cannot authorise the development of Libra on European soil,” continued the French minister, stopping short of offering a plan on how to do so.

In a further setback to Libra in its attempts to launch in Europe, German parliamentarian Thomas Heilmann, who is responsible for blockchain policy within his CDU party, reaffirmed the apprehensions of his French counterpart by saying “no private entity can claim monetary power, which is inherent to the sovereignty of nations.” The European Commission responded by saying it would assess all aspects of Libra to further understand the potential issues raised by Le Maire.

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Today’s news continues to add to Libra’s regulatory misery, following a warning from the US Treasury that the cryptocurrency must comply with the highest regulatory compliance standards before it is launched. With this intense series of regulatory setbacks, coupled with news that some investors were getting cold feet and considering withdrawing their stake, one could begin to wonder if Libra will ever see the light of day.

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Kraken Futures Trading Nears $1 Billion in First Month



Crypto is nowhere close to being dead. Kraken’s newly acquired Crypto Facilities has seen around $1 billion traded in crypto futures already in February, according to an article released today by CoinDesk. Sui Chung, Crypto Facilities’ head of pricing products and indices, told CoinDesk that futures trades have grown more than 500% since Kraken acquired the futures exchange.

Kraken Acquires Crypto Facilities

On February 4th, US-based cryptocurrency exchange Kraken announced the acquisition of Crypto Facilities. At the time, the cryptocurrency exchange didn’t release the exact figures for the transaction and just called it a ‘nine-figure’ deal. Later, it was released that Kraken bought the index trading platform for $100 million. Crypto Facilities provides Bitcoin (BTC) and Ether (ETH) reference rates to the CME Group—one of the first groups to list Bitcoin Futures contracts in the US.

Since the acquisition, it seems that Crypto Facilities traffic has increased four times. Chung told CoinDesk that the company’s daily users have “gone up by a factor of four” and the traffic growth has been seen across all its platforms.

Currently, Crypto Facilities offers cryptocurrency future trades for Bitcoin (BTC), Ether (ETH), XRP, Litecoin (LTC), and Bitcoin Cash (BCH). Chung says that the nearly $1 billion in futures trades last month was spread out between all the coins offered and thinks Kraken’s acquisition helped.

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Crypto Facilities did not say what the pre-acquisition numbers were, but from the five days after the acquisition was announced, the volume of trades jumped up on-average 565%.

Cheung told CoinDesk:

“On average [looking at] the five days before the announcement and five days after, the liquidity for our contracts increased by over 200 percent and some of the minor [coin] contracts increased by over 1,000 percent.”

In February, Crypto Facilities saw its user base grow over 400% last month as well. The total cryptocurrency market saw a spike last month and accompanied by the latest Kraken news it just goes to show that interest in digital currencies is still alive and well.

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Bitcoin Soars 50% So Far in 2020



Back in early 2019, Bitcoin went on a remarkable rally, and many believed that the cryptocurrency could eventually reach the dizzying highs it had hit in 2017. However, after the first half of the year, the rally fizzled out.

The world’s biggest cryptocurrency has again gone on a remarkable rally over the past few days, and while BTC investors must be happy, some must be wondering whether this is another flash in the pan. Many traders may be wondering whether this is the start of another rally due to definite factors or whether it is just another case of market volatility.

Bitcoin Crosses $10K Mark

2020 has been an impressive year for BTC so far, and it has gained as much as 50% to storm past the psychologically important $10,000 mark recently. This past Tuesday, it hit its highest level in five months, and it is hardly a surprise that there is a lot of optimism among investors. The cryptocurrency has had many fast ascents and equally crushing plunges over the course of the last 11 years.

However, this time around, it could really be different, and some experts believe that there are new factors at play that triggered the recent rally. The widespread belief that BTC could soon be accepted by mainstream entities and the situation with the global economy has been cited as some factors.

>> CME Sees Second-Best Month for Bitcoin Futures Trading

For instance, many experts have stated over the past few days that BTC is fast emerging as one of the more reliable safe-haven investments for many investors. As the global economy grows even more uncertain due to a range of factors, it could result in Bitcoin becoming the store of value for investors all over the world. That being said, investors need to keep their eyes open and stay abreast of the latest developments in the crypto world.

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