Chinese miners contemplate to move abroad

Chinese miners are preparing for the possibility of having to move their businesses overseas due to threat of China's ban on mining
21 November 2017   1989

Recently, flow of news have been suggesting that China has intention to prohibit mining as state-run Sichuan Electric Power Corporation supposedly spreaded a circular ordering grid-connected hydropower stations to cease supplying low-cost electricity to bitcoin mining operations.

Soon after, it appeared that the report has been contradicted as the company admitted it made several mistakes, including using unverified claims, on its circular.

However, bitcoin miners are still suggesting moving their operations abroad to protect their businesses.

Many of us have already paid visit to Vietnam, Laos, Thailand, Russia and the US, negotiating electricity prices with local authorities and buying sites for future use … The business blueprint is bound to go overseas, even if there’s only a 1 per cent possibility that China’s crackdown against bitcoin would extend to mining.

 

Cui

Cryptocurrency miner from China said in an interview with the The South China Morning Post

The Chinese Bitcoin miners began arriving  to Quebec due to inexpensive electricity and cooling there, looking for alternative locations to place their operations. Hydro-Quebec provides 4.55 $ per kWh. It also plans to provide additional 500 kWh per 2.58 $ by April 2018.

Despite the fact that China has become the leader in bitcoin mining a little uncertainty is enough to induce cryptocurrency supporters to take precautions and even prepare for the possibility of moving operations outside the country.

Buterin to Propose to Increase PoS-Validators Reward

According to Vitalik proposal, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%
23 April 2019   91

The creator of Ethereum, Vitalik Buterin, published on GitHub a proposal on changing the reward scheme for validators after the transition of ETH to the Proof-of-Stake consensus mechanism (PoS).

According to the formula proposed by Buterin, if PoS-validators, for example, validate 1,000,000 ETH, then the annual yield will be 18.1%.

Buterin PoS Validators Reward Proposal
Buterin PoS Validators Reward Proposal

The more assets are fixed for validation, the lower the interest rate. So, 134 217 728 ETH will bring cryptoinvestors only 1.56% per annum. At the same time, the maximum annual emission volume will be 2,097,152 ETH.

Considering that the current volume of Ethereum's market offer is 105,777,585 ETH, this offer is focused on the medium and long term. Buterin also clarified that the profitability indicators are shown without taking into account proceeds from transaction fees. Consequently, the actual income of validators can be several percent higher than the values ​​indicated in the table.

According to Justin Drake, a researcher at the Ethereum Foundation, if after implementing PoS 32 million ETH will be allocated for stacking, the income of validators will be 3.2% per annum. At the same time, the annual emission indicator will be 1% (for comparison, the current indicator of Bitcoin inflation is 3.94%).

In this case, Drake notes that after the activation of EIP 1559 of the funds collected in the form of commissions, will be destroyed. Consequently, with an average gas consumption of each shard of 1000 ETH per year, inflation will drop to 0.5%.

Users left generally positive comments on the offer. However, some of them expressed fears that in the new conditions the exchange may receive significant advantages, which will be able to do stacking at the expense of clients.