Largest Drop in Mining Difficulty Makes BTC Mining More Profitable than BCH/BSV
In a simple formular you can put it that way. When the price of Bitcoin sinks so does, of course, the profitability of mining Bitcoin. As a consequence, the hash rate will decline which makes the network less performant. To counter this effect, the difficulty of Bitcoin adjusts to lower the expenses for Bitcoin. An adjustment of the difficulty in Bitcoin happens every time 2016 blocks have been mined. The current drop from 7.455T from early October to 6.194T early December is the largest difficulty drop that has ever occurred in Bitcoin. However, in relative numbers, it is only the second largest drop with a 15% decline. In 2011, the mining difficulty dropped by around 18%.
South Korea Plans Imposing Taxes on Cryptocurrency ICOs
South Korea has one of the most vibrant cryptocurrency markets in the world. The government is planning to come up with a framework for taxing cryptocurrency ICOs. The Finance Minister nominee, Hong Nam-Ki revealed that the government is in the process of creating a taxation policy that will enable it tax initial coin offerings. Nam-Ki revealed this when responding to a question about taxation of cryptocurrencies in one of his written answers to South Korean National Assembly.
Beijing’s Financial Chief Gives Negative Signal to STOs
Beijing’s Municipal Bureau of Finance chief, Huo Xuewen gave a signal that STOs (Security Token Offerings) will not be allowed in China. STO’s are an alternative to a traditional IPO. However, they are regulated by an official financial authority. For example, the SEC in the USA. They cost much less than an IPO and clients can exchange their shares much faster than before. An STO potentially provides more liquidity than an IPO. Beijing’s Municipal Bureau of Finance chief, Huo Xuewen, has signaled that companies that are interested in conducting STOs. The People’s Bank of China banned ICOs already in 2017.
Department of Homeland Security Researches Tracking Privacy Coin Transactions
According to a document by the Department of Homeland Security (DHS), the governmental institution is interested in the possibility of tracking transactions of privacy coins. The document explicitly names Zcash and Monero. But it also notes that other coins with similar features can be with relatively low effort. The DHS says that such privacy coins are likely to be used to process criminal activities. According to the document, there are several ways to approach the analysis of a blockchain and it can also include the analysis of available off-chain data.
Midex Will Launch First Euro-Crypto Exchange
Midex has announced that it will launch the first EU regulated Fiat-Crypto Exchange. While other exchanges like Bitstamp that has its headquarters in Luxembourg have traded in Dollar for several years now. There has never been an exchange that offered directly to trade cryptocurrencies in EUR-pairs. Midex is headquartered in Estonia and has partners in China. The exchange will offer many common ways to deposit and withdraw Fiat-money.