A documentary that aired recently on China’s SNTV channel gives a rare inside look at how bitcoin mining works. bitcoin mining has been increasing in popularity worldwide along with rapid growth in bitcoin wallets, trading volumes, transaction values, and venture capital investment. SNTV reporter Terry Zhao visited a bitcoin mining operation in east China’s Zhejiang province and interviewed the owner.
The owner, who chose to remain anonymous, was one of the first bitcoin miners. He explained that only 25 bitcoins can be mined every 10 minutes, and that he was one of the first people who Satoshi Nakamoto introduced to bitcoin mining.
The most shocking revelation in the documentary is that bitcoins are actually mined from the ground. The owner of the mine takes Zhao on a tour of his mining operation, which is an actual mine, like with dirt and rocks. The miners dig up the bitcoins from the ground, clean them, and sell them to bitcoin exchanges, which then sell virtual representations of the bitcoins online.
With bitcoin mining revealed to be a hoax, we should expect to see companies in the bitcoin industry severely affected, and market volatility increasing a great deal. Previously it was believed that bitcoins were generated by solving cryptographic problems, and involved an immutable public ledger known as the the blockchain. On the bright side though, bitcoins actually look very nice and may attract coin collectors and hobbyists.
The SegWit2x hard fork has been very contentious, to say the very least. Initial support started dwindling pretty quickly. Moreover, the developers informed the world this plan was canceled not too long ago. It seems that situation has come to change as well. A few community members will still attempt to go ahead with this fork in a few hours. As a result, GDAX will disable bitcoin transactions and make funds available to users. An interesting development, to say the very least.
It is uncanny how the debacle is still not over. A lot of people were relieved when the developers scrapped their initial plans. A few hours later, someone mentioned the community would still go ahead with this fork. There are still a few miners supporting it. How all of this will play out over the next 48 hours, remains to be determined. There is a lot of confusion regarding this development, which is only understandable.
GDAX Doubts SegWit2x Will Survive
GDAX has their stance regarding this fork. First of all, bitcoin deposits and withdrawals will be disabled 6 hours before the fork. This event is scheduled to take place later today at around 2 AM. Preventing users from sending funds to the wrong chain is the company’s main priority. It is unknown what type of replay protection SegWit2x will offer in its current iteration. Trading on GDAX will not be affected by this change, though.
Assuming the chain is valid, the company will support the tokens as well. There is no reason to believe this will become the majority chain later today, but one never knows. A lot of strange things have happened in the bitcoin world as of late. This new fork will create even more tension among bitcoin supporters. Do keep in mind trading of B2X will not be supported by the company right away, if ever. It certainly creates an incentive for people to buy bitcoin right now.
Should the chain be unusable, there is no plan for B2X support whatsoever. GDAX won’t even allow withdrawals of the currency either in that case. It is still possible they would allow trading later on, depending on whether or not the chain survives. Rest assured a lot of people will keep an eye on the SegWit2x chain in the coming hours. It is good to see companies clarify their position regarding sensitive matters. Three competing bitcoin forks will certainly shake things up quite a bit.