Bitcoin News Round Up May 29 2016

This week’s overview of cryptocurrency news and developments throughout the world.

NEW DEVELOPMENTS:

Bitcoin Halving Imminent

Coming up in about 42 days, the ever-popular cryptocurrency will be cutting its yield from mining by 50%. As part of the bitcoin procedure, the reward for mining the digital halves after each time exactly 210,000 blocks are mined. Because of this, miners will be losing profits greatly, possibly damaging the current amount of miners. Because the incentive for blockchain computing is decreasing, many miners may throw in the towel if the price of the bitcoin does not improve considerably to cover the rewards being cut from them. Furthermore, because of this coming amendment to the bitcoin production yield, the price of bitcoin may rise quickly and possibly exponentially due to the decreasing creation of the digital currency. With the growing demand and consideration of bitcoin in businesses worldwide, the decrement in production could benefit miners and traders alike. You can watch the countdown to the Halving here.

Rootstock Labs Re-energizing Bitcoin for Smart Contracts

The main appeal for the rising altcoin Ethereum is the concept of using “smart contracts” to make companies and agreements more fluid and simple, making it the first of its kind. Apparently not for long, as Rootstock Labs(RSK) is attempting to trump Ethereum’s main idea by researching the development and availability of smart contract technology for the blockchain. The reason behind this? The Ethereum network does not have the security and reputation as the bitcoin blockchain, and Rootstock’s endgame is to build a “smarter” type of contract than Ethereuem provides. The company plans to utilize the security of the bitcoin network while allowing Ethereum developers an alternative method to run their projects. Along with this, Rootstock plans to allow bitcoin miners to take advantage of the concept and acquire a new revenue stream from it.

MOBILE UPDATE:

Jaxx iOS app offers first mobile Ethereum Wallet on Apple Devices

Published by KryptoKit, the new iOS application Jaxx is the first of its kind on Apple devices, offering users to access and utilize Ethereum on their iOS devices. After being DDoS attacked, the development team was able to successfully get back on track and publish the app to Apple’s App Store. The application developers claim that the app will serve as a “test case for Apple’s stance on Ethereum apps down the road,” despite rumors of Apple’s negative view of the Ethereum currency. The multi-platform wallet app stores keys locally and never sends them to any servers, and allows users to back up their wallets using a 12-word mnemonic. The developers plan to implement full DAO integration soon and include more altcoin variations with future updates. The app is available to download on their website or through the respective mobile store it is published on.

WORLD AFFAIRS:

Swedish Bitcoin Mining Firm Declares Banckruptcy

Founded in 2013, the previously successful company KnCMiner filed for bankruptcy this week, in preparation for the bitcoin halving to happen in early July. While the company currently makes about 25 new bitcoins per block processed, the looming decrease in cost proved to be too much for the company to be able to power through. KnCMiner CEO Sam Cole stated that the bankruptcy claim was a pre-emptive one recommended by the board of directors, so the company can avoid running out of funds before the income is cut in half. In addition to the eventual profit drop, the company based in Sweden soon will be unable to keep up with their competitors due to increase in the competition pool and Sweden’s high energy tax – currently at 19.2 cents kW/h

Russia to Ban Bitcoin in Favor of New Cryptocurrency

Following up from last week’s Bitcoin Roundup, The country of Russia is arranging the ban of Bitcoin and all altcoins in lieu of a national cryptocurrency that will be developed for the Russian population. With the objective to be bought with Rubles, the new digital currency is being developed so the activity and fluctuation in price can be monitored by official “financial institutions.” Proposed last fall, the ban of all other digital currencies will allow the new Russian cryptocurrency to be the sole legal digital currency for citizens. Plans include “minimizing anonymous transfers”, a “non-computer-generated algorithm” for the creation of the coin, as well as provide an official Russian cryptocurrency.

FINANCIAL:

Bitcoin price explodes

Over the past few days, the bitcoin price has exponentially risen from around $440 USD to over $500 USD, while Ethereum Price continues fluctuation in price. After the devaluation of the Yuan(CNY), the main Chinese currency, the bitcoin trades from CNY to BTC reached over $580 in a huge surge of individuals switching from the dropping currency to the digital one. Because of this quick change, Chinese Hedgers were also quick to jump onto the trade hype and keep the price hovering over $500 USD. With the halving event in July coming up, the price of Bitcoin could grow even larger and quicker, because of the sudden cut in yield. Because of this possible price hike, internet media is attempting to predict any future prospects for the cryptocurrency.

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