Tag Archives: cryptocurrency

Crypto ‘Is Now Finally Being Taken Seriously’ By Taxman

Crypto 'Is Now Finally Being Taken Seriously' By Taxman

The major consulting company, PwC said that the increased interest in cryptoassets from tax authorities and other regulators shows that this asset class is now finally being taken seriously.

(Updated at 14:59 UTC: the new last paragraph has been added). "What our research shows is that the guidance issued by many tax authorities is already getting dated. Yes – it is important that people know how to account for tax on the trading of bitcoin and other cryptocurrencies but that is really crypto tax 101," Peter Brewin, Tax Partner, PwC Hong Kong, was quoted as saying in a press release. However, he stressed that in nearly all jurisdictions the crypto industry is still lacking principles-based guidance that is fit for the new decentralized economy.

Today, PwC released its first annual Global Crypto Tax Report that shows that few or none jurisdictions have issued guidance on crypto borrowing and lending, decentralized finance, non-fungible tokens, tokenized assets, and staking income. "The PwC survey reveals that the most common treatment is to view cryptoassets as a type of property. Often this means that spending these for acquiring goods and services leads to a tax charge on disposal. This will continue to act as a major impediment to mass adoption of many crypto assets as a means of payment, unless technology solutions can be found to ease the administrative burden for users," the company said.

It also published the annual PwC Crypto Tax Index which ranks jurisdictions based on how comprehensive their crypto tax guidance is. Liechtenstein tops this year’s rankings. "Having specific crypto tax guidance is an essential building block of the continuous institutionalization of the crypto ecosystem," Henri Arslanian, PwC Global Crypto Leader, concluded. Meanwhile, as recently reported by The Wall Street Journal, the US Internal Revenue Service is making it a lot harder to pretend you don’t have bitcoin or other cryptoassets hidden away somewhere. They plan to alter the standard 1040 form by putting this question on the front page: At any time during 2020, did you sell, receive, send, exchange or otherwise acquire any financial interest in any virtual currency? The taxpayer must check the box "Yes" or "No."

At the same time, there was mixed news for the Japanese crypto industry as the regulatory Financial Services Agency (FCA), the body that polices the nation’s crypto companies, made no mention of the industry in its latest tax reform request submission. The FCA periodically passes tax reform requests on to the Ministry of Finance, which then has the power to recommend to parliament and the cabinet that these become enshrined in law. But per media outlet Coin Post, the FCA has made no mention of crypto tax reform – meaning that campaigners for more lenient crypto tax requirements could face frustration. However, on the plus side, the FCA’s silence on the matter could also indicate that crypto tax hikes are not on the horizon in the foreseeable future.

Article Produced By
Tim Alper

Tim Alper is a British, South Korea-based journalist, a regular contributor to Cryptonews.com, who covers cryptocurrency and blockchain related news daily, writes in depth analysis pieces about the latest trends in the cryptocurrency and blockchain space. Tim has over 12 years of media experience. He has written for the BBC, the Guardian, the Jewish Chronicle, Chosun Ilbo and many other media outlets, covered cryptocurrency and blockchain related news. He has also collaborated on media projects with the likes of Samsung, Sony, LG, Hyundai, Korean Air, TÜV SÜD and Shell.


Thomas ClaimCo.in

Top 4 Risks DeFi Investors Face

Top 4 Risks DeFi Investors Face

Impressive growth in the DeFi (decentralized finance) market since the start of the year has shown us that there is a high demand for yield-generating protocols, despite the risky nature of these new financial products.

DeFi’s value proposition is easily apparent: borderless access to a host of financial services provides the user with a significant upside while simultaneously increasing their financial sovereignty. Financial inclusion, cost efficiency, composability, and readily available liquidity are among the opportunities created by various DeFi projects. Even if – for now – it’s mostly about yield generation and high risks.

These risks are typically grouped into four major categories:

  • Coding risk
  • Oracle/centralization risk
  • Financial risk
  • Regulatory risk

Coding risk

Coding risks refer to the attack vectors that can be exploited due to the underlying code that supports the protocol or platform. DeFi is simply a suite of software, created by lines of code, that supports a host of financial services. Given the complex nature of DeFi protocols, it is not uncommon for there to be errors in the code that can provide malicious parties with an attack vector through which they can steal funds (and they do). However, outside of the obvious risk of losing funds through a hack, coding risks also pose a significant risk to the greater DeFi ecosystem. Due to the composability in DeFi, if one protocol is unstable, there may very well be a risk for the entire connected ecosystem.

In its most recent report, The 3rd Global Cryptoasset Benchmarking Study, the Cambridge Centre for Alternative Finance explained this risk stating: “Stacking and composability of smart-contracts also pose a risk. Should an underlying smart-contract break then the stack may fall like a house of cards.”

Oracle/centralization risk

Many of the protocols within the DeFi space are dependent or make use of a centralized tool. Due to the very nascent nature of the DeFi sector, the developing teams have systems in place that confer certain power to a centralized party to reduce inefficiencies or reduce attack vectors. Ironically, while these centralized systems provide the developing platform with some advantages, they are also a significant risk for the functioning of the ecosystem. (Learn more: Why DeFi Isn’t Always As Decentralized As You Might Think) Take, for instance, Oracles, which are leveraged by a number of Automated Market Makers (AMMs) and decentralized exchanges (DEXs), typically receive data from a single source. This can pose a risk as it is trivial for a malicious party to take control of the singular source of data and manipulate the market to their profit.

While it is important to note that most developer teams are focused on phasing out the centralized aspects of their ecosystems over time, these tools still pose risks while they are in place. According to the Cryptoasset Benchmarking Study, “Oracles, either hardware or software, funnel real-world data to the smart contract. As several attacks targeted at decentralized protocols have shown, oracles are a possible source of systemic risk and their data feeding role is prone to manipulation.”

Financial risk

DeFi protocols are based on public blockchains. These blockchains typically have a native digital asset. The price performance of the asset of the supporting blockchain is likely to affect the value of the holdings locked in a DeFi protocol. While this may lead to profit, it is also possible that there are losses. Additionally, there is a risk of Impermanent loss (IL). Impermanent loss refers to the phenomenon where tokens held in an AMM are seen to have a different value than they would if they were being held in a wallet. Due to the synergistic events that occur in an AMM to keep the ecosystem functioning, one may find that his holdings are of less value in the AMM than if they had just kept the holdings in a wallet.

The Balancer Protocol defines IL as “the percentage by which a pool is worth less than what one would have if they had instead just held the tokens outside of the pool.” It is important to note that IL is seen to balance itself out the longer a user participates in an AMM. However, it still remains a risk.

Regulatory risk

Just like the greater cryptoasset sector, the DeFi industry is subject to an uncertain regulatory environment. Due to its nascence, the blockchain industry is under intense scrutiny from regulators who are tasked with protecting the greater public. Unfortunately, due to a combination of factors, such as a lack of understanding and the complexities in technology, some regulators and jurisdictions are not in favor of the DeFi space. Fortunately, this issue is likely to be alleviated with time. “As the space grows, the response of regulators to decentralized financial applications is a regulatory risk that needs greater study and understanding,” the researchers the Cambridge Centre for Alternative Finance concluded.

Article Produced By
Alex Lielacher

Alex is a former bond trader who now works in blockchain media. He is a regular contributor to Cryptonews.com, among several blockchain news publications where he shares his insights on cryptocurrency investing and blockchain innovation. He has been following bitcoin since 2011.


Thomas ClaimCo.in

Where is Blockchain Not Needed?

Where is Blockchain Not Needed?

A consensus has built in the last few years that blockchain is going to continue to broaden its impact in modern society. Once tied exclusively to bitcoin, the technology has already become more widely useful, and most seem to expect that this trend will continue.


For our part, our take on ‘The Next Industries Blockchain Will Transform’ included talking about gaming, healthcare, and real estate. All of these are industries in which the rapid, affordable, and secure transfer of data is increasingly essential, making them natural fits for blockchain technology. Some will take the idea further than even these major aspects of modern life, however. For instance, Newsweek covered the “new internet” potential that some see with blockchain, essentially suggesting that the technology can re-democratize online information, and help to bring about a more decentralized online experience. Given ideas and industries like these that come up in these discussions, it’s becoming easy to assume that blockchain is gradually going to change our lives in virtually every area in which the transfer of information and/or value occurs. It’s almost more sensible at this point to ask where blockchain won’t be needed than where it will be. So we thought we’d do just that, and look at a few tech-related parts of life in 2020 that probably won’t be jumping on the blockchain bandwagon.

Internal Financial Management

There’s a temptation, particularly among those who are only just coming to understand the blockchain, to think that it can and should be used for any and all financial dealings. However, the truth right now is that most businesses don’t really need a tool like the blockchain — particularly where management of internal finances is concerned. A look at whether companies need blockchain by Hackernoon presented a helpful infographic on this topic, suggesting questions company owners should ask themselves to determine whether or not blockchain implementation is necessary. And most of these questions concern needs for exceptionally rapid transactions, contracts about value transactions, and work with digital assets. There’s virtually no consideration of in-house finances, indicating that while it may sound like an interesting idea for a business to record financial data via blockchain, it’s not entirely necessary.

Content Management

In a sense, many people think of the blockchain as something of a content management system. That is to say, with all of the data and funds changing hands — and the fact that the blockchain is usually described as a ledger for recording those exchanges — it can in a sense seem like one giant filing mechanism. It may well be that content management on such mechanisms will become a more popular blockchain function. But here again, it’s not exactly necessary. Today, the cloud content management systems listed by Box showcase how businesses and individuals with significant content management needs already involve highly capable cloud systems. Even a large business can reliably manage all of its content on the cloud, enabling seamless workflow and providing employees with easy and efficient access to all content relative to their work. There simply isn’t much of a need to organize blockchain-based content organization, even if it might sound logical at first thought.

Remote Communication

Finally, there’s remote communication, which has become a particularly significant topic in 2020. Here too though we have a trendy, tech-forward aspect of modern society for which blockchain just doesn’t seem to be much of a fit. Already, there are encrypted services designed to facilitate chats and messages all around the world. And for more business-oriented needs, a flurry of workplace communication systems such as the ones listed by WSJ have emerged to create their own competitive market, packed with solutions for everything from messaging to video conferencing. So, while the blockchain could conceivably be used to package communications quickly and securely over distance, this sort of use isn’t likely to be a priority for developers.

None of this is meant to suggest that blockchain technology isn’t useful, nor that it won’t continue to spread. But with so many lofty ideas about its potential beginning to take root, it’s worth keeping in mind that it’s not necessarily needed everywhere.

Article Produced By
Carolyn Coley


Thomas ClaimCo.in

This data metric suggests the crypto market could soon see another altseason

This data metric suggests the crypto market could soon see another “altseason”

The crypto market has taken a beating throughout the past few days and weeks,

with sellers taking full control over altcoins as Bitcoin oscillates within a relatively wide trading range between $10,200 and $11,200. This has created an air of uncertainty amongst investors, who are now fleeing what are referred to as “beta assets” in order to preserve their capital in case further downside is imminent.

The crypto market has been dealt multiple blows throughout the past week, starting with the $150m KuCoin hack, followed by news surrounding the CFTC’s pursuit of the BitMEX co-founders on charges of violating multiple regulations. Turbulence in the traditional market as a result of President Donald Trump’s Coronavirus diagnosis added to the crypto market’s weakness and may continue creating fear amongst investors. Until Bitcoin is able to stabilize around its current price region or begin pushing higher, there’s a possibility that altcoins will continue seeing intense selling pressure. That being said, one fundamental metric does seem to indicate that upside could be imminent for altcoins, and particularly those residing within the DeFi sector.

DeFi crypto tokens hit hard by market-wide turbulence

The digital assets within the decentralized finance sector have been particularly struck by the recent crypto market downturn. This is partially due to the highly accelerated bubble cycle that these tokens underwent throughout July and August, as many of them saw returns of 100 percent or more throughout the span of just a few months. According to CryptoSlate’s proprietary data, the DeFi coin sector has shed 11 percent of its value throughout the past seven days. Over the past 24-hours alone, this sector has declined by 4 percent. As long as there is turbulence throughout the broader market, these crypto assets will likely continue seeing a pattern of underperformance.

This indicator suggests the DeFi sector may soon kick off another uptrend 

Analytics platform Santiment explained in a recent post that trading volume on decentralized exchanges like Uniswap provides insight into future trends within the DeFi sector. They note that there is an obvious downtrend in volume that, once broken, could be a sign that a leg higher is imminent for this fragment of the

crypto market.

“We believe there is fundamental metric that could possibly confirm the altcoin season quite early… DEX volumes are kind of a proxy of people gambling. More people trading means the crowd gets excited. In the middle of the cycle people will be talking about it everywhere again.”

Article Produced By
Cole Petersen



Thomas ClaimCo.in

RG coins Bulgarian crypto Exchange owner charged over auction fraud scheme

RG coins Bulgarian crypto Exchange owner charged over auction fraud scheme

RG coins Bulgarian crypto Exchange owner charged over auction fraud scheme

  • Rossen Iossifov has just recently been convicted of operating a multi-million dollar money-laundering operation in a transactional auction fraud scheme.

  • Following a two week trial, the man behind the scheme was found guilty by a federal jury in Frankfort Kentucky as well as being part of a conspiracy to commit money laundering and even a conspiracy to commit racketeering.

A Bulgarian national and the owner of RG coins cryptocurrency platform, Rossen Iossifov has just recently been convicted of operating a multi-million dollar money-laundering operation in a transactional auction fraud scheme. Following a two week trial, the man behind the scheme was found guilty by a federal jury in Frankfort Kentucky as well as being part of a conspiracy to commit money laundering and even a conspiracy to commit racketeering. However, he will not be facing any sentencing until January next year.

Around 900 people from the United States have been conned in this scheme that saw the company post advertisements on popular auction platforms such as craigslist and eBay for high-value goods such as vehicles that just simply did not exist. The scammers would provide their victims with fraudulent documents and invoices which would feature the logos of reliable and branded companies to make it look like it was a legitimate business opportunity. Once they receive payment, the people working for the scheme would convert the funds into cryptocurrency and transfer the proceeds to offshore money launderers. It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

Article Produced By
Robert Johnson

Robert is a keen investor with a particular interest in cryptocurrencies. He has been involved in the industry for many years, and because of this, has gathered a lot of knowledge surrounding this area. He studied English at university level and has a passion for writing. He loves being able to combine his two mains interests on a daily basis.


Thomas ClaimCo.in

Former Goldman Sachs VP: There Is No Government Printing More Bitcoin’

Former Goldman Sachs VP: There Is ‘No Government Printing More Bitcoin’

On Thursday (October 1), Jason Urban, the CEO of DrawBridge Lending and a former trader at Goldman Sachs, explained during an interview how both gold and Bitcoin can protect investors against increases in volatility.

According to his bio, Urban holds a BS/BA Finance and Marketing from Georgetown University and an MBA from University of Chicago Booth School of Business. Between 2000 and 2009, he “ran the Goldman Sachs equity volatility market making business.”  On Thursday, David Lin of Kitco News, spoke with the former Goldman Sachs trader about gold, Bitcoin, and stocks. Lin started the interview by asking Urban if he had at any time during his career seen so much volatility.

Urban replied:

“No, never, and I [was] trading through the 9/11 era, 2007-2008, MF global imploding… there were stresses but nothing like this, and this is why I take the defensive stance because what we’re currently seeing is really truly unprecedented and we haven’t gotten completely through the snake so to speak yet… we don’t know what the knock-on effects are, when rent moratoriums are or eviction moratoriums are lifted, if they’re ever lifted, how is all that going to play out and what we’re going to be the knock-on effects.” Lin then asked Urban why is this time even worse than the Great Recession. Urban replied: “Well, I think, because in 2008, it was a banking crisis. It was concentrated in a handful of people.

“Now, you’re seeing a broader crisis. When unemployment levels are where they’re at, when large segments of the population are out of work with no hope of going back to work, that’s going to change spending habits, that’s going to be change consumption habits, you know, all of those things are going to be different. “In 2008, people were worried about losing their homes or their second homes or the third homes or things of that nature. Now, you have people who don’t know necessarily if the stimulus check doesn’t come, where their next meal is coming from, and I think that kind of fear changes behaviors across, you know, everything. So what are the defensive assets that Urban likes at this time? Urban likes traditional hedges such as silver and gold, but he also likes Bitcoin and other cryptoassets that can serve a similar purpose. According to him, gold and Bitcoin are quite similar:

“I think the the biggest thing to look at it as a fixed finite supply similar to gold. It’s scarcity is similar and so because of that there there isn’t a party or a government actively working to devalue it and so from that standpoint I look at that and say that they’re very similar…“With the dollar, if you just held cash in your bank account, there’s always the inflationary spectre that the government starts to print more money, but there’s there is no government printing more gold and there definitely is no government printing more Bitcoin.” As for Bitcoin’s price volatility, Urban says that although Bitcoin’s historic volatility is much higher than that of gold, it is worth remembering that the “store of wealth factor works kind of in both ways,” meaning that Bitcoin’s higher volatility could also help it go up a lot more than gold:

“And so if you normalize that and look at just the traditional characteristics of that asset in terms of a fixed finite supply, it certainly has a lot of the same characteristics as gold. Being more volatile is one of the areas where it deviates but if it was exactly like gold, there would be no need to hold both gold and Bitcoin. Urban believes that Bitcoin, just like gold, can be used to hedge against both inflation and the U.S. dollar: “As someone dealing in the institutional space, the same people that I see buying gold and other precious metals are also buying Bitcoin, and they’re doing it simultaneously, and they’re doing it in equal amounts currently. So from that standpoint, the people who are transacting and kind of driving price and dictating levels are looking at in a very similar way as well.”

Urban then explained what’s makinghim be more defensive than cyclical these days: “I look at the defensive in terms of we have an election coming up. Obviously, that will impact where money is spent, not necessarily the amount of money that’s spent. “I think it’s become pretty clear that regardless of which party is in power, there will be spending, and so from that standpoint, not really knowing where to place your bets tells me to be defensive in that in terms of what’s happening on a global stand, on a global basis, it’s a very similar concept… So given that volatility, given that uncertainty, I think it’s better to preserve wealth before you end up losing well.” Finally, Urban said that as far as asset allocation is concerned, he would put 5-7.5% in physical gold and gold mining stocks, and 5% in Bitcoin and/or other digital assets.

Article Produced By
Siamak Masnavi

Siamak received his PhD in Computer Science from University of London in 1992. He has worked part-time as a freelance journalist since 1986.


Thomas ClaimCo.in

This Digital Wallet Gateway that Removes Boundaries Between Crypto and Fiat

This Digital Wallet Gateway that Removes Boundaries Between Crypto and Fiat

Digital ecosystems are gradually shaping the world into a global community where trade and services can be settled in a matter of minutes.

One particular niche that has advanced this agenda is the payment network infrastructure, especially with the rise of cryptocurrencies led by Bitcoin. Today, transacting parties can agree to settle in crypto through payment solutions such as the DAOWallet. This is one the many crypto-to-fiat gateways that has so far proven to be a game changer in removing the barrier between crypto and fiat.With more businesses moving to accept crypto as a means of payment, the B2B ecosystems whose fundamentals are blockchain and crypto tokens are slowly filling their operational niche. DAOWallet for instance, focuses on the burgeoning online gambling market. Interestingly, this is one of the sectors that appears to be highly crypto compatible and has seen a significant integration with digital currency liquidity. Stats indicate that close to half of all Bitcoin transactions are attributed to betting initiatives with an estimated 3 BTC wagered every minute.

DAOWallet’s B2B Crypto-Fiat Ecosystem 

While it was online gambling that pushed DAOWallet to provide digital wallet services, the project stakeholders are well in tune with the growing demand in other B2B ecosystems as well. This crypto-fiat gateway offers an API interface where 3rd parties can integrate crypto as payment option and increase their customer base at the same time. Basically, service providers ranging from casinos to convenience stores can be able to accept Bitcoin and Ripple amongst other digital assets featured within the DAOWallet ecosystem.

Other than facilitating crypto payments, DAOWallet provides an option for its clientele to accommodate or eliminate the crypto market liquidity while running their operations. This digital wallet provider allows the B2B participants to choose between a floating or fixed conversion of their crypto assets. The former approach is more suitable to crypto HODLers since the conversion of one’s crypto asset to fiat takes place upon a withdrawal request. As for the fixed approach which also the most common, DAOWallet converts each incoming transaction into fiat (EUR, USD) which means that the users are always aware of their current account balance based on the prevailing market rates. This approach is also part of DAOWallet’s Invoicing system: it’s all about supporting crypto assets as payment options, but without being exposed to any market volatility. Invoices can be issued in fiat currency, whereas the backend ensures users will only pay the necessary amount in crypto assets.

Scaling Businesses with Crypto-Fiat Gateways

The COVID-19 pandemic has forced most businesses to move their operations into digital ecosystems as part of the prevention measures. Given its unprecedented nature, businesses took a hit with quite a number winding up their operations. While this is the case, crypto ecosystems are flexing fundamentals as more stakeholders’ consider cashless and seamless cross-border payments. A platform like DAOWallet is not only suited to boost interaction between crypto savvy business owners and their clients but also provide competitive analytics for business prospects.

The DAOWallet user analytics allows its B2B contributors such as casinos to access insightful data including players’ behavior within internal and external environments. With such information, the service providers leveraging DAOWallet for crypto payments are able to scale their businesses or tailor services in line with the market demand as per the presented stats. In addition to this, DAOWallet features an anonymous security analytics tool that can be run from a simple user interface. The tool allows DAOWallet to implement KYC and AML given its fraud detection capabilities. Ideally, this digital wallet provider conducts due diligence on any deposit made by prospects which include players whose Casinos’ have integrated the DAOWallet as a crypto-fiat gateway.

Though businesses stand to benefit the most from DAOWallet, individuals looking to optimize crypto wallet services for gaming and other activities have also been considered within this crypto-fiat payment solution. Some gaming functions that can be complemented by the DAOWallet niche include transferring playable keys to the games using RSA public encrypt. Players can also store or get paid their digital currencies in real-time based on the ease of exchanging crypto to fiat. Notably, DAOWallet secures both the casino’s and player’s private keys on a hardware wallet which means the latter can delegate bets from their digital wallets.


The rise of cryptocurrencies has been pretty interesting given skeptics are more than those who believe in the course. Nonetheless, innovators looking to integrate the crypto world with existing networks have continued to work on native solutions that are likely to on board a bigger population to the digital currency market. This school of thought has given birth to P2P crypto platforms which mostly feature trading services as the core activity. That said, the market is now demanding for more tangible solutions especially in the payments sector where Bitcoin pivoted its cutting edge over fiat currencies. DAOWallet and its peer competitors appear to have based their strategy on this niche. While success is not guaranteed, the increasing use of crypto as means of payment favors the dynamics of such services.

Article Produced By
James Woods

Cryptophile, Tech Geek, and an avid developer.


Thomas ClaimCo.in

Bitcoin Whale Issues Big Warning to Traders Here’s Why He Believes Group of Crypto Assets Are at Risk From Regulators

Thomas ClaimCo.in

GET Protocol announces new user for its blockchain-based ticketing solution


GET Protocol, the leading blockchain-based ticketing solution, is expanding in usage and adoption with the integration of a second ticketing company:

ITIX. Smart tickets issued by ticketing companies who make use of GET Protocol are digitally programmable and registered on the blockchain, bringing transparency and accountability to the ticketing industry. The protocol has issued over 200.000 tickets to date, none of which have been re-sold by scalpers.

For each issued ticket, the GET crypto token is needed as a fuel within the protocol. This GET is then bought up from the open market. To read more about GET Protocol or the GET token, read up on the GET Medium blog. Currently, ITIX handles ticketing for 23 theaters throughout the Netherlands and sells more than 2 million tickets per year. Their ambition is to continuously grow and offer innovative services to their clients, of which honest tickets are a notable example.

From GET Protocol CEO, Maarten Bloemers:

Our partnership with Dutch ticketing company ITIX is very exciting in various ways. Not only will we learn how to make the technical onboarding for ticketing companies as easy as possible with a committed local partner, also the opportunity costs for choosing not to service theaters directly but through an established brand are virtually non-existent. GET Protocol is extremely committed in helping ITIX grow in market share with our unique features, to both our benefit.

The integration of these honest tickets issue by GET Protocol for the clients of ITIX will be done in phases. Starting later this quarter, ITIX will offer their clients the possibility to provide consumers the comfort and benefits of GET Protocol’s digital tickets.

Article Produced By
The Editorial Staff


Thomas ClaimCo.in

2019 China Mining Industry Summit – Recap And Summary


Recap And Summary

BEIJING, June 5, 2019 – BitDeer.com’s premier industry event wrapped up successfully in Beijing. 2019 China Mining Industry Summit has brought together the biggest names of the Chinese mining ecosystem. Prominent Chinese blockchain and tech media attended the event and reported on the significant industry announcements. With the leaders of the Chinese blockchain mining group in one conference, they began to discuss the potential of computing power sharing platforms such as Bitdeer.com, and new trends and emerging patterns in the mining industry.

The conference saw the likes of the following crypto mining industry leaders:

  • Celine Lu – Founder & CEO, BitDeer.com
  • Zhuoer Jiang – CEO, BTC.TOP
  • Xiaojun Fan – Head of APAC Sales, Bitmain
  • Zhong Zhuang – CEO, BTC.com
  • Xin Tian – Co-Founder, AntPool
  • Fa Zhu – COO, Poolin.com
  • Jiazhi Jiang – Senior Blockchain Developer
  • Baoqing Liang – CTO, Bitmain Data Center
  • Yao Li – Vice President, Cobo Wallet
  • Qingfei Li – CMO, F2Pool
  • Xiao Su – Chief Representative for China, Bitcoin.com
  • Yang Tong – Partner, Jinse
  • Qiuwei Gao – CMO, RiskHash
  • Feifan Li – Co-Founder, ChainDD
  • Lei Chen – Founder & CEO, BitWhale

As the world’s leading computing power sharing platform, BitDeer.com has achieved great success with 80% repurchase rate contributed by over one million monthly active users in 223 regions since entering the market six months ago. The platform also witnessed a 300% revenue growth within three months. Its market share ranks among the top 3 in the computing power sharing industry, and will continue to be the fastest growing platform.

Empowering Win-Win Relationships

In retrospect, cryptocurrencies had lost 80% of market value from the highs of 2017 to lows of 2018. Coming into 2019, the market is giving positive signals: Hashrates have hit historic highs; and the numbers of active Bitcoin addresses is rebounding rapidly with the number of Bitcoin wallet users beginning to surge.

As an innovative creation in fintech, Bitcoin is becoming increasingly accepted by users and merchants worldwide. In addition, traditional finance and internet giants such as JP Morgan, Goldman Sachs, Microsoft, Google and Facebook are beginning to enter the nascent cryptocurrency industry. Celine Lu, CEO of BitDeer.com, sees this as a must-take opportunity. In her keynote speech “Computing Power Sharing: Ecological Synergy Accelerator”, Lu mentioned since 2018, computing power sharing no longer relied on bubble prices in the bear market. Instead, it focuses on providing the best service to users by leveraging global resources in the areas of technology, operations, and management. At present, the computing power sharing industry is at a new starting point where BitDeer stands in the core of resource aggregation. Teamed with respectable industry business partners, BitDeer.com will bring higher value to its global users and build a well-developed ecosystem to fuel the whole industry.

Lu shared valuable statistics from BitDeer for the first time at the conference. The net profit of BTC mining for BitDeer’s users exceeds RMBï¿¥6 million (USD $0.87 million) per day, with 4 orders placed monthly on average. The platform’s biggest spender who invested a total of RMBï¿¥50 million (USD $7.24 million) is expecting a profit of the same amount. Eight of BitDeer’s partner mining pools have achieved a hash rate of over 3,000P and ten of BitDeer’s partner mining facilities have achieved a total sales revenue of over RMBï¿¥300 million (USD $43.39 million). More than 20 of BitDeer’s global sales partners have received tens of millions in profit sharing. As the competition in the market turns white-hot, building a diversified, healthy and stable business ecosystem is an irresistible trend. “BitDeer has initially established a partnership mechanism,” said Celine, while presenting BitDeer’s latest partnership plans to attendees.

Lu also introduced BitDeer’s computing power partnership models with various industry members:

  • Mining pools can join BitDeer’s global users to obtain computing power, and receive additional services to promote their brands and share user traffic.
  • A lower entry barrier is now available for mining facilities and rigs, who can now start mining with only hundreds of mining machines. BitDeer will sell their computing power on consignment to achieve a better cash flow and thus maximize the value of their assets.
  • For sales partners, BitDeer provides three different collaboration models: traffic, affiliate sales and agent. With BitDeer.com, sales partners are able to share millions of active traffic and profits.
  • Partnering with third parties, BitDeer.com is working on building cryptocurrency payment and “coin to coin” exchange system.

Standing at year one of BitDeer.com, Lu believes an open mind is essential to connect partners from mining facilities, mining pools, sales, technology, traffic and service providers. BitDeer is building a computing power ecosystem community by leveraging its resources and utilizing its competitive advantages. In his speech, Bitmain’s Head of APAC Sales Xiaojun Fan shared his thoughts and experience of working together with BitDeer.com. He was impressed with the computing power possessed by BitDeer and its strategic vision. In addition, the latest firmware for Antminer S9 miners made its debut at the summit. Alongside representatives from eight strategic partners, BitDeer.com’s founder & CEO Celine Lu kicked off the mining ecosystem launching ceremony, signaling a new era for China’s crypto mining industry.

Computing Power Sharing Industry Standard

Since its 2014 birth, the Computing Power Sharing industry has been chaotic. As the leading platform, BitDeer will guide the industry in compliance with business development and environment. To begin the second half of the conference, Celine Lu read out content of the first ever ‘Computing Power Sharing Industry Standard Draft’ issued by BitDeer. She stated that she would love to invite all partners to join a discussion of the Draft and the formation of an effective mechanism to help users and practitioners. The Draft regulated three key indexes: transparent computing-power; open and fair modes; and reasonable fluctuations. It also unified the access standard of mining pools, facilities and rigs.

On the one hand, from the three dimensions of traceable, controllable and hash-rate mining pool, we can determine whether the hash rate is true and transparent, which is very crucial, according to Celine. On the other hand, the model needs to be open and transparent. Users can independently choose the mining pool, switch the mining pool, check the hash rate of their orders in the mining pool. While mining pools can regularly remit to users directly, which can be inquired from the information chain of the payment transaction. In addition, the fluctuating value should be up to the standard. In terms of fluctuating standard-reaching rate for hash rate of POW currency, the fluctuation of hash rate within 3% should account for more than 98%, and the fluctuation of hash rate within 1% should account for more than 85%. Based on the research and calculation of BitDeer, should the hash rare be not within the standard range, users will suffer from the loss of the mining earnings.

Last but not least, the criteria for access to mines are mainly reflected in three dimensions: it is a must to ensure that there is sufficient power to maintain 98% mining machinery and equipment under normal operation and normal network communication at least 98% of the time. There are strict network firewall settings, perfect fire prevention and disaster prevention facilities and the positive response from operation and maintenance personnel. And in terms of the access criteria of mining machine, the fluctuation of its hash rate is not more than or less than 5%. The equipment can operate normally under severe environmental conditions, such as high temperature, low temperature, humidity, dryness and sand. At least two spare mining pools should be set up to actively support the exploration of mining pools. Should there be something wrong with the current connected mining pools, they can be switched quickly. The life cycle of mining pools can be maintained for more than six months.

According to Celine Lu, data in the draft were extracted from key indicators in the operation and maintenance process of BitDeer.com, which has teamed up with four of the major mining pools in the world: ViaBTC, BTC.com, AntPool and F2PooL. The partnered mining pools account for more than half the worldwide the computing power which provides up-to-date accurate data for BitDeer. Not only does it provide valuable reference in standardizing industry data, improving the operation systems, regulating market, and establishing industry benchmarks, but also it proposes a perfect direction guiding the crypto industry to develop in a healthy and orderly way.

New Challenges and Opportunities

It is agreed by all panelists that, in the age of Blockchain 2.0, members of the mining ecosystem are expected to strengthen the capabilities to integrate resources in order to better serve and bring more value to the users. As a pioneer of the industry, BitDeer is believed to have provided a white-glove service to global individual miners, significantly reduced mining costs and thus lowered the barrier to entry. BitDeer.com has enlisted an army of talents and professionals, and leveraged global resources so that constrained parties could be better prepared and contribute to the mining ecosystem in the next bull market.

Miners, the most essential party in the mining ecosystem, are driven by profitability. In order to maximize mining profits and solve the operations management problems faced by mining facilities, Bitmain is soon launching a cloud monitor platform with joint efforts from BitDeer.com. Baoqing Liang, CTO of Bitmain Data Center, believes that the intelligent connectivity of cloud will ensure a stable output of computing power. The new cloud monitor platform will connect mining pools, profits and the management and operations. According to Qiuwei Gao, CMO of RiskHash, mining profitability is directly affected by the price and mining difficulty, and sense of risk control cannot be overemphasized in

the mining process.

“By partnering with BitDeer.com, the platform connecting computing power providers and individual miners, costs beared by mining pools are relatively more stable. Individuals miners are able to increase their risk resistance capabilities as well.”

Cobo Wallet VP Yao Li stated that as one of the top three wallet service providers, Cobo Wallet is looking forward to collaborating with BitDeer.com to connect the underlying payment system and support instant transfers. He believes the partnership will speech up the growth of crypto mining economy. In terms of the influence brought to the mining ecosystem by the halved Bitcoin price, panelists believe mining will continue to be a sound investment strategy. However, individual miners are still faced w th costs to run professional facilities. BitDeer’s computing power sharing model will provide an easier solution. The 2019 China Mining Industry Summit has shed light on the new mining ecosystem led by BitDeer and brought the leading computing power sharing platform’s competitive advantages as well as its potentialities to the crypto mining community.

Article Produced By
The Editorial Staff


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