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The United States Department of Justice arrested key figures in the BitClub Network ponzi scam. The scam is said to have pulled in over $722 million and remains active in several countries, such as Japan and South Africa. In 2016 our 99 Bitcoins website warned readers of the risks of the BitClub Network.
Popular BitMEX options trading platform and its founder, Arthur Hayes, are involved in a major lawsuit. A seed investor in BitMEX’s early funding, Frank Amato, is seeking $300 million. Amato claims that his initial $30,000 investment was not converted into equity in the exchange as agreed.
According to research, roughly two-thirds of Bitcoin mining is occurring in China. A single province, Sichuan, is estimated to control 54% of the hash rate. The total Chinese hashrate is thus up 6% from June of this year. While this is bad news for Bitcoin’s mining decentralization, the good news is that 73% of mining power is said to be from renewable energy sources; mostly hydropower.
Hydra, a Russian darknet marketplace for trading contraband like drugs and hacking services, is seeking to raise $146 million through an ICO. The ICO will be conducted over the darknet and the tokens will supposedly grant investors shares in the marketplace. This ICO should be considered incredibly risky, as it may prove to be a scam, get participants in legal trouble, or both. However, it’s notable for being perhaps the first instance of public crowdfunding by a criminal enterprise.
Before we conclude, this week’s “Bitcoin quick question” is what will happen to mining when all 21 million Bitcoins are mined?
Today, there are over 18 million Bitcoins in circulation. The mining reward, currently 12.5 Bitcoins, halves every 4 years, with the next halving happening around May 2020. It is presumed that by the time all Bitcoins are mined, transaction fees would be enough to compensate miners for their work. Don’t worry, this won’t happen until around the year 2140. To learn more about this topic visit the link in the description.
Have a question you want us to answer? Just leave it in the comment section below.
That’s what’s happened this week in Bitcoin. See you next week.
I use to have hivewallet which is now shut down.How can you get my leftovers from my wallet?I think I still have my private key words but my wallet provider which hivewallet.com it not working anymore?how do I move my wallet address to other softwares?
Hi Sarty,
Firstly, there’s a website out there purporting to be able to recover your coins for you from hivewallet. I would be very wary of this site. If you send them your seed words, they will be able to steal any bitcoins you had on Hivewallet. It’s much safer to do it yourself because then you don’t have to trust an internet stranger with you coins.
Basically you need to get a new wallet and import your Hivewallet coins using the seed phrase (private key words). I would suggest Electrum as a reliable light wallet which you can get from Electrum.org. Search Electrum’s site for how to import your keywords to a new wallet.
Check out this guide for more on that process: https://bitcoinelectrum.com/importing-your-private-keys-into-electrum/
How is mining crypto currency have anything to do with Bitcoing, etc? This is really an invisible produt.
Hi Karen,
New bitcoins are issued by miners. Check out our beginner’s guides to how Bitcoin works to better understand the system.
I want to invest, how can I make sure the website I’m using is not a ponzi scam?
Hi Bokamoso,
First, you should check out our guide to testing for scams here:
https://99bitcoins.com/bitcoin-scam-test/
Ponzis tend to use techniques like multi-level marketing and lots of flashy / high pressure sales tactics.
Always remember that if something seems too good to be true, it usually is! If someone claims to be able to make great and reliable profits by mining or trading or whatever other technique, always ask yourself why they even need money from the public when they’re sitting on such a gold mine…
I suggest being very skeptical of any site promising easy returns.