Ep. 16 Bitmain Bites the Dust

bitmain bites the dust

Hello Bitcoiners!

In this episode of the Unhashed Podcast: Will Bitmain continue to founder and close more of its doors internationally, or might they find someone to dump their BCH bags on before its too late? The winklevoss twins have come out of the shadows to let us know more about what they meant when they posted those controversial Gemini signs. But...what this just a giant GUSD pump? And...is bitcoin real or synthetic? And would you ever eat a synthetic filet mignon?

Weekly News Wrap Up:

  1. The airwaves were abuzz when news that Russia would buy $10 billion in Bitcoin surfaced. Allegedly, that work was “underway” to transfer deposits in U.S. Treasuries to BTC. Multiple publications ran the story, Including the British newspaper The Daily Telegraph. Today, CCN raised questions as to whether the story was “fake news.”. The source of these claims, Vladislav Ginko, an economist at the Russian Presidential Academy of National Economy and Public Administration, is nothing new. He made the same claims of Russia moving billions from U.S. Treasuries to Bitcoin as early as August. He also made similar claims in July, saying that Russia would move to a “cryptorouble”

  2. Upcoming change allows Lightning Network to operate without invoices (short) https://bitcoinist.com/lightning-network-without-invoices/

  3. Giga Watt, a Bitcoin mining company that launched an ICO back in September of 2017, is finally going out of business after declaring bankruptcy in November. The business model of Giga Watt was slightly different than other hosted mining solutions. Clients owned the mining hardware and paid for upkeep out of their earnings. Giga Watt offered competitive power rates which turned out to be unsustainable. A representative for the company told clients on their Customer Support Telegram channel that users could pay to have their mining hardware shipped home.

  4. Speaking of mining company failures, Bitmain’s problems continue, as the world’s largest bitcoin mining firm has announced a fresh round of layoffs. Bitmain is rumored to have lost over $700 million in Q4 2018, and late last month reports broke out that the Chinese mining giant is set to fire 50% of its workforce. Later, the company shut down its Israeli branch and fired all of its employees. Meanwhile, Chinese media reported that Bitmain CEOs Jihan Wu and Micree Zhan are set to step down. And as of yesterday it was announced that its texas and amsterdam operations would be shuttered as well.

  5. In an interview with Fortune, the Winklevoss twins clarified what they meant by those controversial Gemini bus stop ads: The idea is that companies that build on top of things like Bitcoin should have a regulation that’s thoughtful and that doesn’t stifle innovation[…] People believe in the dream of crypto. They just don’t know how to engage in it without getting burned. We’re here to say Gemini’s a place you can do that.

    Tyler stressed that dollar-pegged stablecoins such as Gemini’s GUSD, which are supposed to be less volatile than non-fiat collateralized digital assets like Bitcoin, could be used to issue dividends for tokenized securities. Cameron pointed out that 60% of $100 bills are held overseas and that he believes stablecoins can simplify the international flow of reserve currencies like the dollar, by acting as “dollars on the blockchain” which could be used for various functions including payments for crypto services.

  6. With uTreeXOs, MIT researcher Tadge Dryja says the end goal is to have cryptographic proofs that let you scale down the entire UTXO set of Bitcoin to something capable to be run on a  mobile phone. This has always been the dream, and now it's one step closer.

    1. The model is currently able to be implemented on the client side, so it would not require a hard or a soft fork and it already has a working prototype and functioning code.

    2. Quote of the article - “We want bitcoin to work on crummy computers as well.”

ICO My God, They’re Serious:

  1. PembiCoin  (https://www.pembient.com/pembicoin/) - Deliverable Synthetic Rhino Horn Futures Recorded on the ETH blockchain

    1. Promoted by https://www.pembient.com/

    2. According the the site and LinkedIn, they have been working on how to

    3. make this horn since 2015.  

    4. They wanted to use PembiCoin as a crowd funding tool

  2. Plans to make synthetic rhino horn

    1. How are they going to do this “We have modified microorganisms like yeast to express the proteins found in horn. We have also sintered such proteins into small chunks of horn using a 3D-printing process. We are now working to produce larger, more resilient blocks of horn. We will employ a tissue engineering approach based on stem cells to grow this horn.”

  3. What does this coin give you?  

    1. A PembiCoin … allows its holder to take delivery of one gram of biofabricated horn in the year 2022. A PembiCoin does not represent or constitute an ownership interest or share in Pembient.

  4. They raised about 69 ETH in AUG17 @ ETH = ~$350 = $44,000

  5. UPDATE - In FEB-MAR of 2018 , the Washington State version of the SEC came in and was investigating Pembient for an unauthorized sale of securities.  The company had to go to a meeting with investigators where they stated their case:

    1. “In response, I argued that PembiCoins, the blockchain tokens on offer, should not be considered securities. More specifically, they were not designed to fund Pembient's research and development efforts, but to cover the cost of a pilot run of biofabricated horn. A PembiCoin would allow its holder to take delivery of one gram of the pilot batch in 2022, nothing more, nothing less. The ICO, then, was similar to a product crowdfunding campaign, except Pembient recorded customers' pledges on a public blockchain instead of a private database. Alternatively, it was like buying a ticket to a future event, purchasing an unbuilt condominium unit, or even pre-ordering a Tesla. I concluded by noting that such transactions were not uncommon, nor did they require registration with the DFI.”

Shoutouts:

colin : Fyre Fraud on Hulu

Ruben: Liquid presentation by Mario Gibney

ONE FINAL NOTE:

Make sure you are storing your crypto on something secure like a Ledger and backing it up on something sturdy like a Billfodl. If you buy these items through the links above, we do take a cut of the profits but it also helps support the show - a win/win for all involved.

Colin aulds