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Bitcoin [BTC] mining by Bitmain called out as fraud in a class action lawsuit

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In a recent turn of events, Bitmain, the world’s largest cryptocurrency mining device manufacturers, was sued in the state of California for allegedly mining without the customers’ consent.

According to Crowdfund Insider, a class action lawsuit was filed by Gor Gevorkyan from Los Angeles against the mining giant Bitmain. The lawsuit claims that Bitmain’s machines start at full-power high-energy consumption mode right from the start, even before the user’s account is linked.

The lawsuit further claims that the mined cryptocurrencies during the setup are directed to Bitmain’s account on Antpool servers.

The plaintiff Gor Gevorkyan mentioned that until two years ago, the machines by Bitmain started in a low-power mode with no default account. He added:“Recently, Bitmain modified the startup procedure for its ASIC devices such that the devices immediately start in full-power high-energy consumption mode before the customer’s account is linked to the device and stay in that mode until the setup process is complete. Moreover, the default account setting on the Bitmain ASIC devices is set to contribute to Bitmain’s own account on its own Antpool server.”

He continued:“As a result of this new practice, Bitmain ASIC devices cost more to operate during the setup phase and transfer virtual currency to Defendant rather than the customers.”

Gevorkyan claims that the time required to set up the rig takes a couple hours or sometimes days and during the time, the mined cryptocurrencies, as per their new ASIC miner configurations, are directed to Antpool’s servers owned by Bitmain.

The lawsuit also provides background data suggesting that the mining costs have increased “tenfold” in a span of one year, between 2016-17. Gevorkyan also said that he had purchased Bitmain’s ASIC devices, including the Antminer 9, in January 2018. Furthermore, he added:“Bitmain is the largest single miner of cryptocurrency in the world…and largest single competitor to each of its ASIC device customers because it maintains its own virtual currency mining accounts…(and runs) virtual currency mining “farms” in locations where electricity costs are extremely low, including Russia and inner Mongolia.”

As reported by Bitcoin Magazine in June 2018, Bitmain controls 51% of the overall hash rate in the crypto-verse. Referring to the above, the lawsuit claims that “Bitmain made $3-4 billion in profits in 2017.”

A Twitter user Reina Nakamoto commented:“Naw man they steal the hash while it’s plugged into YOUR electricity for the initiation period at the start. And the guy in the lawsuit alleged this takes from a day to a week, so that’s alot of loss :0. Ack, and they could have used ur “new” miner too :((. Shady biz.”

In a recent turn of events, Bitmain, the world’s largest

cryptocurrency mining device manufacturers, was sued in the state of California for allegedly mining without the customers’ consent.

According to Crowdfund Insider, a class action lawsuit was filed by Gor Gevorkyan from Los Angeles against the mining giant Bitmain. The lawsuit claims that Bitmain’s machines start at full-power high-energy consumption mode right from the start, even before the user’s account is linked.

The lawsuit further claims that the mined cryptocurrencies during the setup are directed to Bitmain’s account on Antpool servers.

The plaintiff Gor Gevorkyan mentioned that until two years ago, the machines by Bitmain started in a low-power mode with no default account. He added:“Recently, Bitmain modified the startup procedure for its ASIC devices such that the devices immediately start in full-power high-energy consumption mode before the customer’s account is linked to the device and stay in that mode until the setup process is complete. Moreover, the default account setting on the Bitmain ASIC devices is set to contribute to Bitmain’s own account on its own Antpool server.”

He continued:“As a result of this new practice, Bitmain ASIC devices cost more to operate during the setup phase and transfer virtual currency to Defendant rather than the customers.”

Gevorkyan claims that the time required to set up the rig takes a couple hours or sometimes days and during the time, the mined cryptocurrencies, as per their new ASIC miner configurations, are directed to Antpool’s servers owned by Bitmain.

The lawsuit also provides background data suggesting that the mining costs have increased “tenfold” in a span of one year, between 2016-17. Gevorkyan also said that he had purchased Bitmain’s ASIC devices, including the Antminer 9, in January 2018. Furthermore, he added:itmain is the largest single miner of cryptocurrency in the world…and largest single competitor to each of its ASIC device customers because it maintains its own virtual currency mining accounts…(and runs) virtual currency mining “farms” in locations where electricity costs are extremely low, including Russia and inner Mongolia.”

As reported by Bitcoin Magazine in June 2018, Bitmain controls 51% of the overall hash rate in the crypto-verse. Referring to the above, the lawsuit claims that “Bitmain made $3-4 billion in profits in 2017.”

A Twitter user Reina Nakamoto commented:“Naw man they steal the hash while it’s plugged into YOUR electricity for the initiation period at the start. And the guy in the lawsuit alleged this takes from a day to a week, so that’s alot of loss :0. Ack, and they could have used ur “new” miner too :((. Shady biz.”

Source.ambcrypto

Bitcoin

Bitcoin (BTC) Bulls Are Not Safe After Recent Price Bounce: Josh Rager

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Bitcoin (BTC), as well as most of the top coins, remains located within the descending channel. Bitcoin Cash (BCH) is the biggest loser – its rate has dropped by almost 5% over the last day.

Top 10 coins by Coinstats

Top 10 coins by Coinstats

Meanwhile, the relevant strength of the altcoin market has decreased the dominance rate of Bitcoin (BTC). Currently, the market share of the leading crypto is 66%.

Bitcoin dominance rate

Bitcoin dominance rate

The relevant information below for Bitcoin points to the next direction.

  • Name: Bitcoin
  • Ticker: BTC
  • Market Cap: $153 207 521 074
  • Price: $8 427,68
  • Volume (24h): $24 759 664 505
  • Change (7d): 0.44%

The data is relevant at press time.

BTC/USD: Do Bulls Have Power For One Move to $9,000?

The price of the first cryptocurrency left the side range on the way to the $8,000-$8,200 region.

BTC/USD chart by TradingView

BTC/USD chart by TradingView

The chart shows a breakdown of the $8,460 level which, for a long

time, held back the bears. Immediate support is $8,200, and if it does not stand up, the next goal will be the psychological level of $8,000.

To resume growth, the price needs to rise above the $8,750 level, which corresponds to the upper limit of the recent side. Such a maneuver will improve market sentiment and increase the likelihood of retesting marks near $9,200 in the short term. However, a breakthrough of the $8,750 level still seems unlikely, given the picture in other timeframes.

BTC/USD chart by TradingView

BTC/USD chart by TradingView

On a larger time frame, the MACD indicator histogram has crossed the zero mark. The intersection of moving averages (MA) with periods 5 and 10 also hints at bearish sentiment. In general, the situation is clearly not in favor of buyers. Respectively, traders might see Bitcoin (BTC) below $8,000 in February.

Bitcoin is trading at $8,412 at press time.

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Bitcoin (BTC) Bulls Are Not Safe After Recent Price Bounce: Josh Rager

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Trader Josh Rager has shared his take on Bitcoin’s recent price uptick that revived the hopes of the bulls to once again test the $9,000. 

Rager tweeted that BTC is not safe unless it gets back to the upper-$8,000 level that will open the door for yet another leg up. Until then, bears and bulls continue to play tug-of-war without any clear winner. 

At this point, he doesn’t rule out

that the bounce from the $8,200 support might simply be a sucker’s rally that will be followed by a break to the $8,000 level, which is why impatient traders should exercise caution.   

Bitcoin Price

image by @Josh_Rager

Earlier today, trading legend Peter Brandt predicted that current correction could hold despite the fact that the bears expect this rally to be short-lived.

At press time, BTC is changing hands at $8,490, struggling to break above the nearest resistance level.  

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Top 3 Price Prediction Bitcoin, Ethereum, XRP: Bears take over and draw a bloody moon

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  • Despite appearances, Bitcoin is the asset with the best risk/benefit ratio.
  • The current falls are adjusted to the ranges of the previous rise.
  • Downward momentum expires in the first half of February.

Cryptographer and computer scientist Nick Szabo, has presented in his Twitter account a study on the “risk-benefit” ratio of different assets. The study used a Sharpe Ratio over four years Hodl period.

According to this study, Bitcoin is the best positioned, maintaining an average ratio of 3 in the last four years. Behind them are the US stocks, with an average ratio of 2, and gold, which has gone from the last positions in 2016 to the third in the 2020 ratio.

The worst placed asset category is emerging currencies, which with an average ratio of -2 lags far behind the others.

The crypto board reaches the end of the week with the bears securing the market control they gained yesterday in mid-session.

The structure of the moving averages already indicated that the upward turning process that began on January 10th was going to be quite time-consuming. The magnitude of the downward movements in the second half of 2019 had separated the moving averages a lot. 

ETH/BTC 4-Hours Chart

ETH/BTC is trading at the price level of 0.01895 and is down by -1.65%. On the 4-hour chart, the spot price is piercing the EMA50. If Ethereum loses this support, the drop will accelerate to the 0.0185 level.

Above the current price, the first resistance level is at 0.0197, then the second at 0.0200 and the third one at 0.0205.

Below the current price, the first support level is at 0.0185, then the second at 0.0185 and the third one at 0.0182.

The MACD on the 4-hour chart is supported directly by the indicator’s zero levels. The moving averages are sloping downward and are moving away from it, suggesting an acceleration of the trend. 

The DMI on the 4-hour chart shows the bearish-bought pair in equilibrium. Both sides of the market are above the ADX line, a setup that facilitates violent resolutions.


BTC/USD 4-Hours Chart

BTC/USD is currently trading at $8243 and confirms the loss of support at $8400. The EMA50 and SMA100 averages continue to fall and forecast that the end of the downtrend could be on the first week of February.

Above the current price, the first resistance level is at $8400, then the second at $8500 and the third one at $8800.

Below the current price, the first support level is at $8200, then the second at $8000 and the third one at $7900.

The MACD on the 4-hour chart is losing its downward slope, indicating the end of the impulse phase of the

movement. The terminal phase can easily take the price below $8000.

The DMI on the 4-hour chart confirms the end of the bearish momentum phase. Bears are preparing to drill down the ADX line. The bulls are very reactive to any upward movement and break the downward trend.


ETH/USD 4-Hours Chart

ETH/USD is currently trading at $156.09 after finding support at the SMA100. The support point coincides with the 38.2% level of the Fibonacci retracement system and the same system indicates that the 50% level at $150 is very likely to be visited.

Above the current price, the first resistance level is at $161, then the second at $165 and the third at $170.

Below the current price, the first support level is at $155, then the second at $150 and the third one at $143 (61.8% level of the Fibonacci retracement system).

The MACD on the 4-hour chart is increasing its openness and is tilting further down, so we can expect an acceleration of the price’s decline.

The DMI on the 4-hour chart shows that the bearish trend is increasing. The bulls are not reacting and continue to lose strength.

XRP/USD 4-Hours Chart

XRP/USD is currently trading at $0.215 and accelerating the downward movement that began this week. The current price coincides with the 50% level of the Fibonacci retracement system. The next support, according to this tool, is at the 0.205 price level, 61.8% of the Fibonacci retracement system.

Above the current price, the first resistance level is at $0.218, then the second at $0.223 and the third one at $0.235.

Below the current price, the first support level is at $0.205, then the second at $0.20 and the third one at $0.19.

The MACD on the 4-hour chart shows an acceleration of the downward movement. The MACD on the 4-hour chart shows an acceleration of the downward movement.

The DMI on the 4-hour chart shows that the bearish trend is increasing and the bearish momentum is strong. The bulls are not reacting and continue to lose momentum.


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