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| October 22, 2018

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The Chinese app taking the social media world by storm

October 20, 2018 |

Chinese social media apps have struggled to win over users beyond their home turf. TikTok is changing that. – RSS Channel – World

Trump Tariffs to Impact Chinese Mining Hardware Manufacturers

October 19, 2018 |

Trump Tariffs to Impact Chinese Mining Hardware Manufacturers

The escalating U.S. – China trade war threatens to have an adverse impact on the operations of Chinese mining equipment manufacturers, with imports of mining hardware now facing stateside tariffs of more than 25 percent.

Also Read: Former CFTC Chair Advocates ‘Tech Neutral’ Cryptocurrency Regulations 

Harsh Hardware Duties

Trump Tariffs to Impact Chinese Mining Hardware ManufacturersIn June, the Office of the United States Trade Representative reclassified Bitmain’s Antminer S9 as an “electrical machinery apparatus,” rather than a “data processing machine,” subjecting it to a 2.6 percent tariff. But in late August, the administration of U.S. President Donald Trump followed up on that decision by imposing an additional 25 percent tariff on Chinese mining hardware, bringing total tariffs on the Antminer S9 to 27.6 percent.

“All manufacturers of mining rigs based in China will likely be affected by the tariff code change and, in turn, captured by the US trade tariff,” said Ben Gagnon, the co-founder of Hong Kong-based mining hardware developer Lutech.

IPO Prospects of Mining Manufacturers
to be Impacted

Trump Tariffs to Impact Chinese Mining Hardware ManufacturersAnalysts believe the new tariffs could have a negative impact on the planned initial public offerings (IPOs) of Chinese manufacturers Canaan Creative and Ebang International in Hong Kong. In 2017, 8.5 percent of Canaan’s total revenue originated from international markets, while non-Chinese demand accounted for only 3.8 percent of Ebang’s revenue.

Bitmain, however, is believed to be the most exposed of China’s mining hardware manufacturers to the new tariffs. According to its IPO prospectus, approximately 51 percent of its sales came from outside of China in the 2016-17 period. It also said its financials could be impacted by changes to tax rates driven by “economic and political conditions.”

However, Mark Li, senior analyst at Sanford C. Bernstein, said that the company is probably more concerned about rising competition in the mining hardware market. “The U.S. tariff is probably not something on the top of the [Bitmain] management’s minds now,” Li argued.

Do you think that the new tariffs will have a detrimental impact on the operations of China’s leading manufacturers of mining hardware? Share your thoughts in the comments section below!

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The post Trump Tariffs to Impact Chinese Mining Hardware Manufacturers appeared first on Bitcoin News.

Bitcoin News

Chinese City Wants to Launch Artificial Moon

October 18, 2018 |

One moon apparently isn’t enough for the Chinese city of Chengdu, according to a report in the People’s Daily. Wu Chunfeng, the chairman of the southwestern city’s Aerospace Science and Technology Microelectronics System Research Institute, told a recent conference that an “artificial moon,” also known as an illumination satellite, will…

Study Argues Chinese Mining Centralization Poses Threat to Bitcoin Network

October 14, 2018 |

Study Argues Chinese Mining Centralization Poses Threat to Bitcoin Network

A joint study conducted by Princeton University and Florida International University has found three-quarters of Bitcoin mining is based in China and warned of the potential risks that could result from the significant geographical centralization of the mining network.

Also Read: Worst Cryptocurrencies of 2018 Have Left Some Heavy Bagholders 

Researchers Argue China is the “Most Powerful Adversary to Bitcoin”

Study Argues Chinese Mining Centralization Poses Threat to Bitcoin NetworkThe study, titled “The Looming Threat of China: An Analysis of Chinese Influence on Bitcoin,” seeks to “explore how China threatens the security, stability, and viability of Bitcoin through its dominant position in the Bitcoin ecosystem, political and economic control over domestic activity, and control over its domestic Internet infrastructure.”

The study opens by describing China as comprising “One of the most powerful potential adversaries” to bitcoin, adding that the country “has expressed adversarial positions regarding the cryptocurrency and demonstrated powerful capabilities to influence it.”

The researchers estimate that “74% of the hash power on the Bitcoin network is in Chinese-managed mining pools,” and seek to explore the ways in which this centralization of mining power can be leveraged by the Chinese government to attack the Bitcoin network.

Mining Pool Owners Beholden to Will of Chinese Government

Study Argues Chinese Mining Centralization Poses Threat to Bitcoin NetworkThe paper asserts that “Mining pools managed by individuals in China have constituted over half of the total network hash power since 2015,” adding that “As of June 2018, over 80% of Bitcoin mining is performed by six mining pools” – with “five of those six pools are managed by individuals or organizations located in China.”

Although “Pool miners cannot be directly controlled by China,” the study emphasizes that the operators of said pools “are subject to Chinese authorities” through being located in China. As such, the report argues that “because managers are responsible for assigning mining jobs and propagating completed blocks, they control the inputs and outputs of their miners, allowing Chinese authorities indirect control over that hash power.”

Study Argues Geographical Centralization of Mining Risks 51% Attack

Study Argues Chinese Mining Centralization Poses Threat to Bitcoin NetworkThe paper argues that the heavy centralization of mining activities within China may pose a threat of a 51% attack, stating that “the Chinese government exerts strong, centralized control over economic and financial activity and also operates extensive surveillance and censorship regimes over the domestic Internet.”

While said “capabilities do not grant them direct command of all of the hash power in Chinese-managed pools,” the paper asserts that the Chinese government possesses “a variety of tools at their disposal to influence those pools and Bitcoin in general. They have deployed multiple rounds of restrictive regulations that have upended global and domestic Bitcoin markets.”

The report concludes that “China has mature capabilities and strong motives for performing a variety of attacks against Bitcoin,” arguing that ideological opposition of cryptocurrency to the centralization of the Chinese could provide the motivation for an attack against the network, as could the growing integration of Bitcoin into the global economy and resulting possibility of “exert[ing] influence in a foreign country where Bitcoin is in use.”

What is your response to the study’s assertions that the centralization of mining within China could allow the Chinese government to attack the Bitcoin network? Share your thoughts in the comments section below!

Images courtesy of Shutterstock

The Bitcoin universe is vast. So is Check our Wiki, where you can learn everything you were afraid to ask. Or read our news coverage to stay up to date on the latest. Or delve into statistics on our helpful tools page.

The post Study Argues Chinese Mining Centralization Poses Threat to Bitcoin Network appeared first on Bitcoin News.

Bitcoin News

Asian stock markets rebound on Chinese export data and a report of a Trump-Xi meeting next month

October 14, 2018 |

Share prices in Asia rebounded Friday on a report that President Trump and his Chinese counterpart, Xi Jinping, may meet at the Group of 20 summit in Argentina in late November.

In the U.S., Wall Street was set for an optimistic open. S&P 500 futures rebounded 1.3% to 2,781.50. Dow futures were…

L.A. Times – Business


Four people killed after massive sinkhole opens in Chinese city

October 9, 2018 |

Four people have died after they were swallowed up by a massive sinkhole in a Chinese city, despite desperate rescue efforts to save them. – RSS Channel – World

Chinese Exporters Find18,927 Ways to Avoid U.S. Trade Tariffs

October 9, 2018 |

There are 18,927 individual codes to identify goods the U.S. imports, and switching them around is an increasingly popular way some Chinese exporters are ducking proliferating American tariffs, say trade professionals. The plywood industry is a case in point. What’s News Asia


Head of Interpol Meng Hongwei accused of corruption, Chinese government says

October 8, 2018 |

The head of Interpol, who vanished after taking a flight to Beijing, is being held and investigated for corruption, the Chinese Ministry of Public Security said in a statement Monday. – RSS Channel – World

Interpol’s Chinese President Reported Missing in China

October 7, 2018 |

The head of the international police organization was reported by his wife to have gone missing in China, according to French authorities, who are investigating his disappearance. What’s News Asia