With only 40 days to go until the halving of Bitcoin creation, We discuss the current Bull market, the upcoming blockchain halving and the demise of Swedish miner, KnC Miner.
AND – The Bitcoin Cloud Mining Chickens will come home to roost.
As reported on Coindesk:
Sweden-based bitcoin mining firm KnCMiner, a startup that has raised $32m in venture funding from investors including Accel and Creandum, has declared bankruptcy.
CEO Sam claimed that the primary factor was the upcoming drop in the bitcoin transaction block reward subsidy, set to take place sometime in the middle of July.
Currently, when a miner successfully processes a block, they receive a reward of 25 freshly minted bitcoins. Once the halving takes place, the subsidy will drop to 12.5 BTC – an event that effectively cuts a miner’s bitcoin income by half.
Cole told CoinDesk:
“Effectively our cost of coin – how much we produce the coins for – will be over the market price. The price is now [roughly] $480. With all of our overhead, after July, the cost will be over $480. All of the liabilities we’ll have after that time will be too high.”
Thus we believe that the The Bitcoin Cloud Mining Chickens will come home to roost.
We ask the question: “If a well capitalized firm cannot eek out a Bitcoin mining profit, How can cloud mining companies offer monthly returns to investors?” It is come to our attention that certain “Cloud miners” are promising the buyers of mining contracts up to 10% a month in earnings..
All we can say is : Caveat Emptor – Let the Buyer Beware.
Here is what our friend Uncle Scam has to say about this: – Watch: http://chat-ezy.com/bitcoin-mining/how-to-start-a-fake-cloud-mining-business-easy-and-risk-free-uncle-scam/
Personally I would rather try my luck in a casino, at least I know that I am going to lose…
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