Crypto Ponzi Scheme; China Dominates Bitcoin Mining

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CHINA’S MINING DOMINANCE

A new report has found that nearly 65% of the bitcoin hashrate originates from China, meaning that China has dominated bitcoin mining more than any other country this year.

2019 has been a relatively good year for miners in general, generating $5.4 billion in total revenue, and China has consistently been a major market for bitcoin miners due to its cheap electricity and affordable resources. Companies like BitmainF2Pool and Canaan, which account for a large portion of the Bitcoin network’s hashrate, are all based in China.

Following Chinese President Xi Jinping’s call for increased efforts in blockchain development, China essentially unbanned bitcoin mining in the last quarter of this year.

CRYPTO MARKETS

Bitcoin, which started the year at around $3,500, soared to well above $10,000 this summer before crashing back to trade around $7,000 amid fears that Facebook’s planned cryptocurrency project could cause central banks and regulators to take action against crypto.

The digital currency suffered a notable decline last month—bottoming out at a monthly low of $6,524—after surging nearly 40% in a matter of hours after China’s head of state made optimistic comments about blockchain technology in October.

TAGOMI SLASHES FEES

Tagomi, a New Jersey startup whose software helps institutional investors trade cryptocurrencies, has cut its fees nearly in half, now charging 0.1% or less per trade. Its new rates are about 70% lower than what you’d pay on digital asset exchanges Coinbase and Gemini if you wanted to buy $10,000 worth of bitcoin. On a trade that size, you’d save $25 using Tagomi.

Tagomi’s goal is to attract customers with low trading fees and then upsell them on “prime brokerage” features, including letting users…

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