Singapore Mining Rig Manufacturer Reports Massive Surge in Sales

A small mining rig manufacturer in Singapore has reported a huge surge in sales in recent months. Dexter Ng of Mining.sg estimates that the company has gone from selling around 15 rigs each month in July to now selling over 100. He told Channel News Asia:

Customers come in and order 50 rigs on their own. Compared to last time, probably one person only buys one or two. Now we get customers who buy 10, 20 or even 50.

In a few short months the company has expanded from a couple of friends selling specialised graphics processing units online to a fully-equipped office space in Geyland Lorong, Singapore. There, they have facilities in which to build up to 45 rigs at once. Each one can sell for between S$5,500 and S$6,500. In USD, that’s $3,670 to $4,770. Ng went on to talk about his company’s early days:

“We posted photos online, on Facebook, and people started asking how much is this and they wanted buy it off… So I sold it to people who queried on Facebook, and after a while, we started selling many on Facebook, so we decided to incorporate this company.”

The explosive growth of many different cryptocurrencies in 2017 is driving the interest in mining hardware both in Singapore and elsewhere. The price of a single Bitcoin is currently up around 6.5x in this year alone. During the last eleven months, one BTC has gone from costing around $1,000 to between $6,000 and $7,000 at the time of writing. This has encouraged many to turn to mining as a way of generating a passive income and getting involved in the space.

Likewise, the soaring market cap of the entire industry has caused a huge uptake of interest in crypto exchanges. Singapore’s Coinhako reported that the numbers of users on their books had doubled since the start of the year.

Meanwhile, the Singapore regulators are reluctant to approach the space with too heavy a hand. The Monetary Authority of Singapore told Bloomberg in October that there were no plans to regulate cryptocurrencies at present. However, they did confirm that were monitoring the space for risk.

Image: ShutterStock

 


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The market capitalisation of Bitcoin’s August 2017 hard fork, Bitcoin Cash, briefly exceeded that of the native cryptocurrency on the Ethereum blockchain, Ether, in the early hours of Sunday morning. The Bitcoin offshoot’s price surged to an all-time high of $2,577 at around 1:49am. It has since settled back into third position at a total market cap of $23.35 billion or $1389.62 which is still more than double the currency’s previous all-time high. It sits behind Ether at $30.22 billion and the original Bitcoin chain at $106.62 billion.

The most likely cause of such an extreme upswing was the calling off of another planned hard fork to the original chain. The Segwit2x proposal aimed to increase the size of the blocks that make up the blockchain from 1MB to 2MB. This would allow more data in each block and thus more transactions could take place more quickly. It was the result of a compromise between groups of developers who had long fought over how to best scale the network. However, the nature of the agreement that took place in New York in Summer was controversial for many and a highly divisive issue.

The Segwit2x fork was due to take place later this month on block number 481,824. However, it was announced last Wednesday that no attempt to fork the network would take place for now. The reason cited was lack of support.

Following the news, a brief surge in the price of Bitcoin (BTC) occurred, taking it to new highs of $7,879. This quickly reversed and the price crashed to a monthly low of $5,507. Interestingly, whilst many altcoins gained from the selloff, Bitcoin Cash favoured particularly well. This prompted more selling. This time it was the alts and additional money flooded into Bitcoin Cash. A large portion of this volume was in South Korean won. However, the majority was exchanged for BTC.

Trevi Digital Assets Fund manager Jacob Eliosoff told Forbes that he felt it understandable that the proponents of Segwit2x have turned to Bitcoin Cash. For him, they’ve:

… nowhere to turn but BCH. It’s not surprising that SegWit2x’s loss has been Bitcoin Cash’s gain.

Ethereum founder and general god-father, Vitalik Buterin, quickly congratulated some of the largest name’s on the “big block” side of the scaling debate. He Tweeted:

“Congrats on this. Seriously.

The brains behind the briefly displaced blockchain also posted this picture of industry market analyst website Coinmarketcap confirming that BCH has become the second most dominant name in the cryptocurrency space.

 

 

Image: Wiktionary

So that’s another day done in our bitcoin price trading efforts and we’ve had a pretty strong day as far as entry points are concerned. For anyone that missed this morning’s coverage, we were on the lookout for some breakout entries to help us draw a profit from the market as and when we saw any volatility.

These breakout entries come when price closes above or below a key level (that we have predefined as part of our intraday strategy) and, once entered, they mature to completion automatically – be that for a take profit hit or for a stop loss takeout.

During the session today, we got more of the latter than of the former, which, when taken into consideration in line with the fact that we employ a positive risk reward strategy, means we are closing out the session net-positive.

That’s great, but it doesn’t mean we can get cocky.

We’ve got the late US session ahead of us and we’re hoping to replicate our intraday success moving forward.

So, with all this said, let’s get some levels in place that we can use to try and do just that. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand. It’s a one-minute candlestick chart and it’s got our range overlaid in green.

As the chart shows, our target range for the session tonight comes in as defined by support to the downside at 6425 and resistance to the upside at 6594. We are looking to jump in long on a close above resistance towards a target of 6640. Conversely, if we get a close below support, we will jump in short towards a downside target of 6375. Stops on both positions will help us to exit the trades quickly if things turn against us.

Charts courtesy of Trading View

After a week of scheduling and rescheduling, NewsBTC finally sat across with Vladimir Smerkis, the co-founder of Tokenbox, and discussed the future of tokenized funds in the new age markets. As the conversation matured, Vladimir opened up about the practicality, as well as the legal structure around the tokenized fund market. He also elaborated Tokenbox in a nutshell. Here are some of the key excerpts from our interview:

Yashu Gola: Before we begin, could you tell us a bit about your professional background?

Vladimir Smerkis: I was deeply into the digital marketing when I worked as a VP of international development at MailRu Group. Mail.ru is a large company, albeit innovative. Nonetheless, I felt that my own potential goes way beyond a corporate structure. After launching MyCom, I left to become an entrepreneur. I couldn’t help but notice the way blockchain and bitcoin were affecting the digital scene. I observed it for a while, but it was surely the next logical step to try and enter that market. That is how I and my partner got to the idea of The Token Fund. Later it raised even further into the Tokenbox.io platform.

What prompted you to launch Tokenbox, exactly?

In March 2017, we launched The Token Fund, one of the first coin-traded funds on the market. The model proved successful, fast. Hedge funds and investors worldwide,from Switzerland to Kazakhstan began reaching out, asking to white-label the system for use on their local markets.

The feedback got us thinking. As opposed to licensing the software out to foreign investors and institutions, why not just build a turnkey platform for international users? That is exactly what we are doing.

But you’re not exactly the first one to propose a tokenized fund. How is your platform different from others?

There are certain projects that already exist. What we need to work on is the legal functionality, like creating entities that will enable issuing sub-licenses to traders and funds that want to use the platform, this is what people’s been asking quite a lot for. And in the end, tarting up the UI of it all. We’re aimed to become a cross-platform solution that works on all operating systems and all phones.

TBX advantage is a combination of those 4 put together:

  • Legal transparency and KYC

  • New trading terminal for a perfectly balanced portfolio

  • Market liquidity solution

  • Fund’s tokenization

Could you give us a quick overview of the tools Tokenbox offers?

Tokenbox is an ecosystem aiming to solve all these current crypto market issues and insecurities at one place.

Traders and funds will be tokenized through the system’s web interface and  be legalized through the system’s umbrella license. They will then gain access to a large community of already Know-Your-Customer, or  KYC,  authorized investors. Meanwhile, for their part, investors will get access to a wide range of funds and traders, which have already gone through all the Tokenbox’s strict due-diligence procedures. Some of the key features of our platform include: Access to umbrella fund; KYC/AML Compliance; Mutual Settlements; Greater Liquidity; Software for investment management;  Access to the market of ICO-campaigns; Marketing support; Rating System; Secure, integrated gateway to the fiat banking system; Multi-currency wallet; Multi-level security; Client protection; Advisory service; amongst many others.

How do you propose to tackle the regulatory challenges, as you expand? How do you ensure that the funds you are working with are legally-compliant?

There is of course the issue of legality: it’s hard to legalize them completely. We’re planning to solve this problem by registering an umbrella fund that will sublicense to other funds and individual traders. Traders and other funds that want in will have to pass KYC verifications etc., so it’s not going to be like eToro where anyone can start their own fund or become a trader on the system. Our approach solves this issue.

Now, on the tech side of things. It’s obvious that terminals like MetaTrader that are used in classic trading aren’t suitable for crypto-trading. There’s also the issue of liquidity. Crypto exchanges set rather tight input/output limits, even after KYC checks — can be as low as $25,000. When we’re talking about large players that want to be in this business, this amount is laughably tiny, and this is a real problem that we solve. Of course, there’s a global issue of fiat money input and banking transactions within the economy. We’re planning to solve that, too. So, we’re talking tech, legal issues, market liquidity, and tokenization.

In your opinion what is the current health of the global cryptocurrency system? Are there hidden stress points which have not been priced in by the markets?

Right now, the market is still is in its infancy. Some great minds have made great strides and people are making enormous returns on modest investments. But we need to look beyond individuals and build a system that the wider world can buy into. We can make new products and perfect the process, turning blockchain into a secure system that can adapt to property deals, banking and more. Blockchain has the potential to change the world on so many levels, and now it’s the time for big business to embrace it. We have to make that easy.

How does one join Tokenbox?

Now, prior to out TGE event to join the crowdsale go to tokenbox.io and click on “Join” button to subscribe.

Once the Alpha version is ready (Q2 2018) for investors it would be 4 easy steps: 1) KYC procedure; 2) Сreate a wallet on the platform; 3) Top-up; and 4) Choose the funds from our rating that matches your strategy and start investing.

Tim Draper has never been shy about his bullishness for Bitcoin. Last month, he expressed in no uncertain terms his believe that BTC was better than fiat currency and back in 2014, he made a then outlandish price prediction for a $10,000 Bitcoin in the next three years.  At a tech conference last week, he reaffirmed his stance on cryptocurrency, reiterating how important a technology he deems it.

Draper spoke to a reporter from Bloomberg at WebSummit – a technology conference taking place in Lisbon, Portugal. There he was harangued by representatives of eager startups planning to launch ICOs. Between endless pitches, he found time to chat about the history of his involvement in the space and where he sees it heading.

Draper was a big loser in the 2014 Mt. Gox bankruptcy. His stash of 40,000 Bitcoins were embezzled like those of many others. However, seeing that the incident didn’t completely destroy the cryptocurrency encouraged him:

The price fell 10 to 20 percent on the news but I thought, ‘That’s nothing, it should have gone to zero.

Rather than exiting the space and licking his wounds, the venture capitalist felt compelled to take out another position. He managed to secure an additional 30,000 BTC during the auction conducted by the US Marshals Service following the Silk Road closure and the subsequent seizure of the darknet marketplace’s Bitcoin. The purchase cost him $18 million back in 2014. Today, their value is over $200 million – not a bad investment by any means. Since then, Draper has been a firm believer in the technology. He goes as far as to say:

This is the greatest technology since the internet.

For the head of the venture capital firm, Draper Associates, there’s still a lot of upside potential for Bitcoin. He believes that the division we see in the financial industry is to be expected with a technology capable of such a revolutionary paradigm shift. The likes of Jamie Dimon and the rest of the old guard are yet to embrace “progress” which will always be the eventual winner:

People are always going to say there’s a problem, and that usually means there’s a lot more upside… There will be a few who embrace it and jump out front and say, ‘This is important’ and then there are going to be those who jump back and say, ‘I’m going to cling to the past and I’m going to hold onto everything I’ve got.’ And you know who wins then. It’s always progress, it’s always technology.

 

Bitcoin Gold has been a very controversial project from day one. There have been many proponents of this solution, even though everyone wants their free coins. Claiming this money is still very difficult at best, to say the very least. The launch of BTG has been very problematic, so far, as miners and users experienced a lot of issues already. It is evident things will remain pretty tense for this altcoin in the coming days and weeks.

Everyone knew from day one Bitcoin Gold would be a problem child. Not just because of the concept itself, but also the borked launch. Considering how this is not an actual fork but more of an airdrop, it doesn’t have the most appeal whatsoever. Bitcoin holders still want their free coins, though, which is perfectly understandable. Claiming those coins will not be easy by any means. Nor is connecting to the network right now, as some users still experience issues.

Bitcoin Gold Launch saw Many Problems

The launch of the mainnet took place last night. Bitcoin Gold developers released the GUI client to connect to this new blockchain. Sadly, this “official” launch was not without any issues whatsoever. In fact, the distribution of the necessary wasn’t easy either. Getting people to download the software from semi-untrusted sources wasn’t a smart decision. Then again, those who did download it noticed no issues with the client at first. That is until they tried to connect to the network for the first time.

In a lot of cases, making this connection to other nodes was erratic. Some users even received fake links to software clients. This project will be marred by misinformation and malicious software download links for some time to come. For those interested in Bitcoin Gold, the best option is to check out the project’s Slack channel. The team should be able to aid with most problems relatively quickly. At the same time, there may still be some minor bugs and issues over the coming days and weeks.

Since no exchange allows Bitcoin Gold trading, it is difficult to put a price on this altcoin. Very few platforms have expressed any interest in supporting this airdrop. The number of supported wallets is also very small, for the time being. Rest assured there will be plenty of Bitcoin Gold price volatility in the coming weeks. If the Bitcoin Cash launch is any indication, flipping BTG will become very profitable in the future. An interesting development to keep an eye on, that much is evident.

For anybody with cryptocurrency holdings, the last few days have been pretty tough.  Subsequent to the cancellation of the planned hard fork, sentiment turned decidedly negative (counterintuitively) in the space and the bitcoin price took a real hit as a result.

Action over the weekend broke through the spate of broken resistance levels that we had highlighted throughout the majority of the last couple of weeks as being key levels to watch and, as each level fell, more and more sellers entered the market pushing price down further.

We are about to kick off the session out of Europe today and the hope is that price can stage something of a recovery as we move forward.

We are going to try and take advantage of any such recovery but, at the same time, we intend to be ready to jump in short if the downside action returns. So, with this noted, let’s get some levels in place that we can use to try and draw a profit from the market as we move forward into today’s session. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand and where we intend to jump in and out of the markets if we get any of the sort of volatility we are looking for.

The chart is a one-minute candlestick chart and it has our range overlaid in green.

As the chart shows, the range we are looking at for the session today is defined by support to the downside at 6456 and resistance to the upside at 6541.

We will enter long on a close above resistance towards an upside target of 6575. Conversely, if we see a close below support, we will enter short towards a target of 6410. Stop losses on both trades will ensure we are taken out of the positions in the event of a bias reversal.

Charts courtesy of Trading View

Things have been rather uneasy in the world of cryptocurrency this weekend. Bitcoin Cash had a good run, but things are slowly coming to an end. Most of the mining power is also coming back to Bitcoin as we speak. With BCH being more difficult and less profitable to mine, a crisis is seemingly averted. This doesn’t mean Bitcoin it out of the woods entirely, though. This tense situation will firmly remain in place for quite some time to come.

The big story this weekend how Bitcoin Cash successfully had more hashpower than Bitcoin. As a result, the Bitcoin network came to a proverbial standstill. Fees were skyrocketing and transaction delays were painful to watch. A lot of miners moved to BCH due to sheer profitability. An understandable decision, to say the least, but also a very dangerous one. So far, it seems the situation is reversing once again.

Bitcoin Cash Hashrate Drops Like a Brick

With Bitcoin successfully reclaiming the majority of hashpower, an inverted situation is created. It is now Bitcoin Cash which struggles to get transactions confirmed. Additionally, users are forced to include slightly higher transaction fees. Some transactions take several hours to successfully confirm, which is pretty problematic, to say the least. It is evident this “attack” against Bitcoin has failed in its mission. It is now the BCH crowd claiming how Core supporters are attacking their network.

None of this means the Bitcoin price will go up again by definition, though. In fact, it may continue to go down for some time to come. A lot of people have sent coins to exchange for trading days ago. Those transfers are only now getting confirmed one by one. With still over 124,000 unconfirmed transactions to go through, things will not improve all that much in the coming hours. It is a very tense situation that is well worth keeping an eye on.

The bigger question is what will happen to Bitcoin Cash in the future. The value per BCH is still inflated even while the network is struggling. It is evident something will need to give in this regard. It is all part of a very tense situation which still haunts the Bitcoin ecosystem as a whole to this very day. This “battle’ is far from over, that much is rather evident. For now, Bitcoin still reigns supreme, whereas Bitcoin Cash remains an altcoin. Whether or not this situation can change, remains to be seen. Just make sure to have popcorn on hand when the fireworks begin again.

Key Points

  • Bitcoin gold price after trading above $450 against the US Dollar corrected lower.
  • There is a connecting bearish trend line forming with resistance at $300 on the hourly chart of BTG/USD (data feed from Bitfinex).
  • The price is correcting higher from $180, but it is facing a major hurdle on the upside.

Bitcoin gold price declined sharply from $480 against the US Dollar. BTG/USD is recovering, but might struggle to break the $300 level.

Bitcoin Gold Price Resistance

During the past few sessions, there was a lot of action in bitcoin gold price (just like bitcoin cash) as it moved above the $400 level against the US Dollar. The price climbed higher and formed a new all-time high near $480. Later, it faced a lot of offers and started a downside move below $400. It broke the 50% Fib retracement level of the last wave from the $120 low to $480 high. The recent low was at $183 from where the price started a new upside wave.

It has moved above the $250 level and the 100 hourly simple moving average. Buyers also succeeded in breaking the 23.6% Fib retracement level of the last drop from the $480 high to $183 low. On the upside, there is a connecting bearish trend line forming with resistance at $300 on the hourly chart of BTG/USD. The trend line resistance is near the 38.2% Fib retracement level of the last drop from the $480 high to $183 low. Therefore, the $300 level is an important resistance for more gains in BTG.

Bitcoin Gold Price Technical Analysis BTG USD

On the downside, the $250 level and the 100 hourly SMA are decent supports and buy zones in the near term.

Looking at the technical indicators:

Hourly MACD – The MACD for BTG/USD is attempting to move back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTG/USD is now back above the 50 level.

Major Support Level – $250

Major Resistance Level – $300

 

Charts courtesy – Trading View, Bitfinex

Tom Lee has made no secret of his bullishness for Bitcoin. Back in October, which admittedly seems like forever ago in the crypto space, he explained to Business Insider a technique which his company had been using to predict price changes over time. Based on Metcalfe’s law, Lee claims that he can use his equation to explain 94% of the price movement in Bitcoin:

If you build a very simple model valuing bitcoin as the square function number of users times the average transaction value. 94% of the bitcoin moves over the past four years is explained by that equation.

Metcalfe’s law was originally penned to account for the value of a telecommunications network. It states that the value of a network is proportional to its number of users squared. The theory is that a network gains value exponentially in accordance with new participants. Imagine a telephone. It’s not very useful on its own. However, add a second to the network and suddenly it’s no longer a pointless piece of hardware. Add a third network participant and the combination of interactions grows by more than double. Naturally, this increases the value of the network.

According to Lee, the same can be said about Bitcoin. This is because it’s essentially a communication network itself. However, the only information communicable is value. Fundstrat analysed the number of new wallet addresses as a rough estimate of Bitcoin users. Over time, they found that the square of the figure explained some 63% of price shifts in the period 2013-17. This was taken further by including a second variable – the transaction volume per user. By using the second value with the existing equation, they found that they could explain an additional 20% of swings. Finally, Lee and company were able to find a formula by “regressing the price of Bitcoin against both unique addresses squared and transaction volume per user.” This particular formula explained a massive 94% of the variation in the price of cryptos in the period they studied.

But, what does all this mean and why is it relevant right now? Well, according to Lee, Bitcoin’s price is currently over-extended in relation to his calculations. This helps to explain why we’re seeing a pullback today. For him there isn’t a lot of room to grow whilst the network remains at it current size. For the next boom, we’ll need to see another huge influx of users. This will provide the required value to the network and thus necessitate a higher price point. This is something that Lee and Fundstrat are confident in:

Bitcoin’s longer-term technical trend remains positive but short-term upside appears limited and the risk of a correction is growing.

For those interested, you can listen to Lee’s analysis on Business Insider’s “the bit” here. He explains his theory in greater detail as well as reaffirms his bullish outlook for the longer term.