MtGox investors are going to save the exchange

Investors are going to prevent former CEO of MtGox to gain several billion dollars
13 December 2017   890

The group of creditors of the now defunct bitcoin-exchange MtGox filed a new court petition, which, if satisfied, will withdraw Mark Karpeles from bankruptcy and launch the process of its civil rehabilitation. The Financial Times writes about this.

The petition is filed in the hope of preventing former CEO of MtGox Mark Karpels from gaining several billion dollars in potential, which may remain at the disposal of the company after the funds are returned to investors.

The current Japanese legislation suggests that if MtGox retains its current bankruptcy status, the exchange will return users money in dollar terms as of 2014. However, due to the fact that the price of bitcoin has grown tens of times since then, Karpeles and MtGox, even having returned the funds to investors, can get a significant enough bonus.

According to the Financial Times, more than 173,000 BTC can be left to Karpeles from the 202,195 BTC that the stock exchange owned at the time of bankruptcy. At the current rate of bitcoin this is about $ 3 billion.

As the newspaper notes, now everything will be reduced to the "battle of experts" - representatives of the bankruptcy property manager who believe that the current liquidation plan will be more reliable, and representatives of investors who insist that their offer will not only be quicker but also more fair, because in the potential will allow them to return not the dollar equivalent of deposits, but actual amounts in bitcoins.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   75

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.