Venezuelan Bitcoin miners switch to Ethereum

An increasing number of Venezuelans are switching to mining cryptocurrencies like Bitcoin
28 August 2017   960

Nowadays, Venezuela is experiencing the worst hyperinflation since the Weimar Republic. Thus, the annual inflation rate is expected to hit 1,600%. 

In order to survive, thousands of Venezuelans have shifted mining the cryptocurrency.

As ever, whether a mining operation is profitable depends on two main factors: the cryptocurrency’s market value—and the price of electricity, needed to run the powerful hardware.

Bitcoin

Bitcoin charts on coinmarketcap.com Bitcoin charts on coinmarketcap.com

As reported by theatlantic.com, a Bitcoin miner who runs several Bitcoin mining devices in Venezuela can earn around $500 per month. This amount can feed a family of four and buy basic goods like baby diapers or insulin from abroad.

Ethereum

Ethereum charts on coinmarketcap.com Ethereum charts on coinmarketcap.com

However, the government authorities have started to crack down on mining operations because it is considered illegal in the country. Thus, Venezuelan police arrest the miners on “made-up” charges due to the absence of cryptocurrency laws that regulate mining.

The crackdown forced many miners to operate very discreetly, while others are reportedly turning to Bitcoin’s rival Ethereum and Zcash for bigger and much more sustainable profits.

Wyoming Passed Bill Exempting Utility Tokens from Securities Laws

The Wyoming House of Representatives has unanimously approved a bill exempting utility tokens from securities laws  
20 February 2018   71

On Monday, House Bill (HB) 70 passed the House 60 to 0 and will now head to the Senate. The bill exempts utility tokens from securities laws. This will attracts ICO’s launches to the state and will make the state a favorable environment for blockchain startups.

According to the bill, the utility token must meet three conditions:

  1. The token’s issuer must not market it as an investment;

  2. The token must be exchangeable for goods and services, for example, startups must have a working product or service at the time the tokens are issued;

  3. The token’s issuer must not actively make efforts to create a secondary market for the token by entering into a repurchase agreement or agreeing to locate buyers for the token.

It is important to note that there are four more cryptocurrency and blockchain-related bills currently moving through the Wyoming legislature.

HB 19 passed the House of Representatives on Monday and is now awaiting introduction in the Senate. The bill exempts cryptocurrency from the state’s money transmitter act.

HB 101 has passed its second reading in the House and, if it passes its final hearing, will then go to the Senate. This bill will allow companies to create and use blockchains for the purpose of storing records and conducting inter-office communication.

HB 126 has just passed its second reading in the House. It will allow the creation of series LLCs.

Senate File (SF) 111 passed a vote to introduce on Friday and is now headed to a committee hearing. This bill will exempt cryptocurrency assets from state property taxes.