Bitcoin Cash mining difficulty eased

Brand new cryptocurrency mining difficulty eased as blockchain adjusts
08 August 2017   932
Bitcoin Cash

A new cryptocurrency representing a hard-forked version of Bitcoin, different from it in the blocksize limits

Bitcoin Cash, the hard-forked version of Bitcoin, adjusted its mining difficulty after a week of its creation.

At the time of writing, Bitcoin Cash price is about $354 and the new cryptocurrency remains the forth-one in the list of market capitalization:

 Bitcoin Cash price chart on coinmarketcap.com Bitcoin Cash price chart on coinmarketcap.com 

Bitcoin Cash has a very particular rule about when difficulty can adjust downward. Rules for this are as follows:

  • Median Time Past of the current block and the Median Time Past of 6 blocks before has to be greater than 12 hours.
  • If so, it gets 20% easier to create proof of work. In other words, miners can find blocks 20% easier.
Blockchain

Distributed database that is used to maintain a continuously growing list of records, called blocks

*Median Time Past (MTP) is just the median of the last 11 blocks. That is, put the last 11 blocks in time order and pick the middle one. This is used because sometimes blocks mined later have earlier time stamps (some technical reasons related to different clocks).

Thus, according to Coindesk, as a result of both blocks (478,647 and 478,648) having a Median Time Past (MTP) that was 12 hours greater than the six blocks prior, each block adjusted difficulty down by 20%. 

Bitcoin

Is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen

Hence, Bitcoin Cash is now 16.7% as difficult as Bitcoin to mine. However, Bitcoin Cash needs to be worth about 1/6 of Bitcoin's price to be as profitable.

Since the difficulty adjustment, Bitcoin Cash is averaging about 18-minute blocks, implying a hash rate of around 650 PH/s. At this rate, another difficulty adjustment can be expected in about 13 days.

German Financial Regulator Clarifies Stance on ICOs

The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) has clarified its position on ICOs
22 February 2018   32

German financial regulator admitted it was receiving many inquiries about the status of tokens and cryptocurrencies. According to an advisory letter, BaFin provides some basic definitions of ICOs and related terms. It is important because the results of a new survey showed that more than two-thirds of Germans know about bitcoin.

In this letter, BaFin educates the public and explains how tokens are typically generated, how blockchain works and that ICOs are used to raise funds for startup projects. The note states that for regulatory purposes, ICOs, tokens, coins, and cryptocurrencies are subject to the existing provisions in the field of securities supervision and other relevant national and EU laws.

The authority advises participants in ICOs to check and follow rules applicable to regulated financial instruments, such as securities. If businesses or individuals have any doubts about regulations, they should approach BaFin.

According to BaFin, companies should fulfill any obligations under the Banking Act and the Capital Investment Code, the Insurance Supervision Act and the Payment Services Supervision Act. The transactions may be prohibited if relevant regulatory requirements are not met.

The authority also states that legal classification of tokens requires precise examination. It will determine their status on a case-by-case basis after studying their features. The token should be transferable and tradable on cryptocurrency trading platforms in order to be classified as a security.