Cavirtex was the first bitcoin exchange in Canada. Vault of Satoshi, QuadrigaCX, and Cointrader.net followed. submitted by
At this time, Cavirtex had 10 times the volume compared to the 2nd highest in average trade volume, which was QuadrigaCX.
Cavirtex shut down due to a their database being compromised. They made it public, then clients withdrew their funds. Cavirtex’s database was sold to Coinsetter in NY, which was later acquired by Kraken in SF.
Vault of Satoshi shut down, and its team went on to do different things because trade revenue from bitcoin wasn’t profitable at the time. Cointrader.net was compromised, and clients lost funds.
Quadrigacx, Krakan, Coinbase were serving Canadian clients. Kraken and Coinbase used the Vogogo, a Canadian “payment processor” that is no longer in business. After Vogogo went out of business, Coinbase and Kraken stopped serving funding/withdrawals for Canadian dollars.
Quadrigacx survived the winter before the most recent run-up in price. During the run-up, other exchanges started to emerge. Coinsquare being the most notable one.
What happened with Vogogo was that it was running into problems with being a “payment processor”. A payment processor, as a corporation, is just another corporate bank account. You get a corporate bank account by paying a $200 incorporation fee, then you open a corporate bank account at any Canadian bank or credit union. Once you have this corporate account, you use the account to operate, as a business, serving clients, as a processor of payments — effectively, becoming a small-scale intermediary.
The bank doesn’t want you to do this.
They don’t want you to do this because they operate within a regulatory framework. The bank must obey laws; failure to obey laws result in legal penalities. Penalities from the government are very bad for banks. TD, RBC, CIBC, Scotia, BMO allow operate under the same regulatory framework that they get from the government. It’s not the bank, its the government.
If you go to one of these banks and try to open a bank account for crypto, then will decline you. They don’t know what they should do about crypto as a business operating as a bank because they need the government to say something about what they can and can’t do. The government doesn’t know what to do, so they haven’t done anything yet.
Banks have been shutting down crypto related accounts for years.
Prior to Cavirtex, people would open corporate accounts to trade on localbitcoins. At the time, most people, including banks, had not heard of bitcoin yet.
The whole deal with all these “payment processors”, such as Billerfy, Custodian, Vogogo, etc., is that they all operated as a pseudo-intermediary-bank between the exchange, and the exchanges’ clients, because banks will not offer a bitcoin exchange a corporate account.
Historically, all of these payment processors fail because they get too big.
When you go to a Canadian bank and you are a Canadian citizen, the bank is legally obligated to open a low-cost, personal chequing account. When you go to a Canadian bank and you are a Canadian citizen and you want to open a corporate account, they bank will ask a lot more questions. They want to know about your business because they need to assess its as a liability.
Some of their questions have to do with load. A corporate account, especially a new one, can only “handle” a certain volume of transactions. They’ll ask you about expected transactions. Corporate accounts that have high volumes are monitored with increased scrutiny from the bank.
CIBC is the first A-level Canadian bank that let a weird account get too big. In most cases, what Custodian Inc. was doing would have been flagged and closed off by the bank before it got to this size and magnititude. CIBC “failed” in this regard, but they brought the edge-case to the courts to decide because they don’t know how to proceed. The courts instruction was for the funds to be released in batches to Custodian and Quadrigacx.
Custodian Inc., and other “payment processor” type companies will not exist after this crypto-winter. This is how every Canadian bitcoin company operated, and there was no other way to do it — other than to get a commercial bank account at the bank.
Is CAVIRTEX full scam mode? WTF. I have 16 K on there. I go to do a regular withdraw like I usually do, and it says $0 fee. Nice I think, it used to be $6. I almost click submit like usual until catching some small font writing: submitted by
NOTE: A 4% transfer fee will be manually deducted from your account at a later time. As a temporary measure, the fee is set to zero.
Are you f****ing kidding me? $6 to $640 on my withdraw, how is that even LEGAL.
I am livid right now. What are my options, and no, I can't buy bitcoins and send them to a different company, I lose even more that way. I've had this money sitting on there for a long time and never consented to change in ridiculous fees like this, how can they do that? Why 4 %, why not 40 % since it doesn't even matter what I agree with or not?
FOR GREEN CRYPTOCURRENCY MINING
FUTURE OF CRYPTOCURRENCY
DEPENDS ON ECOLOGICAL MINING
"CRYPTOCURRENCY DEPENDS ON ECOLOGICAL MINING"
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· Green Crypto Mining Will Define The Industry’s $38bn Future
Chones / Shutterstock & CB ANALYSIS
Green Crypto Mining Will Define The Industry’s $38bn Future
Energy usage will drop by design thanks to these critical industry developments.
📷By Nick Hall
On Aug 10, 2018 1,779 1
In March this year, the sky officially fell in for Bitcoin miners. With the slump in prices and the extraordinary energy consumption it takes to mine the coins, Fortune revealed that mining a Bitcoin cost as much as buying one. Green crypto mining wasn’t even on the radar for most people until earlier this year.
That was back in March and they were the good times. Morgan Stanley revealed in April that Bitcoin miners would lose money if Bitcoin slipped below $8,600
, even with low electricity figures factored in.
A recent study by Coinshare
showed that the numbers attributed to the Bitcoin mining industry have been grossly exaggerated and the energy consumption is approximately 50% of the claimed 70TWh. But the numbers are still too high in terms of the financial outlay and the environmental impact of mining cryptocurrency.
Mining doesn’t begin and end with Bitcoin – and although the consensus is (mostly) set in stone, the way we create the energy needed to extract the next part of the puzzle isn’t. Which is why green crypto mining is the ONLY solution to the diminishing returns issue: more cost, for less reward, will eventually lead to an abandonment of the mine, just as it did for gold miners in California in 1848-49.
We’re not looking for one single solution either. We need four separate ones:
- A lighter consensus algorithm
- Cloud-based cryptocurrency mining.
- Renewable, cheaper energy sources to support physical ‘mines’.
- Brutal consolidation in the mining industry.
What is cryptocurrency mining?
The Proof-of-Work (PoW) protocol was popularized by shadowy Bitcoin founder Satoshi Nakamoto, building on earlier work by a variety of computer scientists including Hal Finney, and it’s a two-stage process to validate transactions and keep a flow of Bitcoins entering the market. Blocks of data are parsed off and, with Bitcoin, they contain about 1MB. Each block is then locked and coded.
Miners then compete to solve the puzzle and provide the 64-digit hexadecimal key code that it then has to match with a corresponding ‘nonce’, numbers used only once, to claim the reward for unlocking the block and mine Bitcoins. There’s a small fee for validating the transactions, but the Bitcoin miners are really like the old gold miners and they’re after the big paydays.
Why is Bitcoin mining expensive?
In the old days, Bitcoin mining was easy. Back in 2009, a standard desktop computer could mine up to 200 Bitcoin a day
. But speed is everything and Bitcoin mining turned into an arms race as Bitcoin soared and the well-funded miners went to war.
Companies like Bitmain, Bitfury and Vogogo spotted a gap in the market and brought professionalism to the Bitcoin mining industry. The Wild West days fell by the wayside and suddenly a standard computer chip would take 98 years to mine one coin, as the super fast rigs of the new breed
simply stomped the casual miner into the dust.
The cryptocurrency mining industry even caused the great computer graphics card drought of 2017-2018
as demand for GPUs literally outstripped supply. Used cards were even selling above sticker price and the shelves in-store were stripped bare, but the big guns were already spending tens of millions of dollars to put these home brew operations out of business.
These aren’t computers anymore, they are mission control centers and the power it takes to keep them running is a serious issue for the company’s bottom line and the environmental lobby.
So the industry is looking for a number of different green crypto mining solutions, that will gel together in some haphazard way to form the future of the cryptocurrency market.
The main obstacles are:
1. A greener algorithm
It may be hard to visualize the blockchain itself, but we don’t need to. Technology almost always gets lighter, smaller and slimmer. The same needs to happen to block production.
Blockchain is middleware and it needs to be slimmed down, without sacrificing security or functionality. That’s an ongoing evolutionary process, as it was with smartphones, and the blockchain we’re using in 20 years will likely have little in common with today’s code.
Proof-of-Stake consensus algorithms have been pitched as one way of reducing crypto’s carbon footprint. Instead of competing for block rewards, producers would take turns, weighted by the size of their stake in the network.
Staking is unlikely to catch on in the Bitcoin community, but it has many supporters with Ethereum as well as other cryptocurrencies.. That would make the whole validation process more efficient and cheap.
2. Cloud-based cryptocurrency mining
There are mining firms that are still investing millions of dollars in physical equipment and taking on all the sunk costs, when the Cloud is simply taking over the world of advanced computing.
Cloud-based cryptocurrency mining companies are already selling packages to the general public
and the Cloud offers increased security, speed and essentially a small slice of the world’s computing power, rather than the machines you buy, install and power up. It also potentially offers AI integration that could leave the traditional cryptocurrency miners hopelessly panning for gold in a dead river.
The Cloud has made self-driving cars and robots a reality. It can certainly ramp up the speed of calculations and leave even a multi-million dollar mining rig trailing in its wake.
The switch to Cloud-based mining is good news for the environment, too, as the power demands would move to localities with the cheapest energy. Without these wild spikes in energy consumption and without these concentrated mines, the main complaints about the industry will simply cease to be an issue.
3. Renewable, cheap energy for grand-scale mines
Cloud-based cryptocurrency mining looks like the obvious solution, but it’s the final cost that determines the methodology when it comes to crypto mining and there is more than one way to do this.
Technically, the likes of Elon Musk could turn the arid sub-Saharan scrubland into the biggest and most prosperous cryptocurrency mine in the world with a vast array of solar panels and Tesla PowerPack batteries to keep it running through the night.
Cheap land and free energy means that hardware would be the only major cost to consider in this instance. Alternatively, a State-sponsored mining firm in a smaller nation could easily co-opt hydroelectric or solar providers to work with them to reduce energy costs. Even the ones that use grid power can select the world’s cheapest nations and bulk buy energy in blocks.
Potentially, then, we could still have the grand-scale mines that bring economy of scale and environmentally-friendly energy production to the world of cryptocurrency mining.
4. Brutal consolidation
It does not matter how the industry develops, or if Cloud computing or giant mines are the future, the days of the home cryptocurrency miner are numbered.
Just like the mom and pop mines of the goldrush days gave way to corporate giants with drilling and excavation machinery that made the old pick and shovel look slightly ridiculous, the same will happen in cryptocurrency mining.
Competition will continue to grow, the margins will likely drop even further and the flagrant energy use of today’s cryptocurrency miners simply won’t be an option. Miners that don’t streamline their operations and adopt some form of green crypto mining process will simply run at a loss until they go out of business.
Bil Tai is the Chairman of Hul 8, the North American arm of Bitfury Group and one of the biggest suppliers of cryptocurrency mining equipment of the world. Even he expects just 5-10 giant mining companies to survive the impending cull.
“It’s totally different this year,” he told Bloomberg. “The bitcoin mining industry was this mysterious, dark, cottage industry. It’s about to grow up and scale institutionally.”
There’s a dark side to these tech giants emerging, as they will technically have the power to exert an influence on a coin’s value, not just its creation. That is a problem the industry will have to examine at some point. This simple danger, though, is not enough to turn back the tide of progress.
So, we can expect to see a handful of mining companies dominate the industry as they make the best use of the available technology.
Conclusion: Green Crypto Mining Isn’t An Option: It’s The Only Option
One way or another, the environmental issues that dog the cryptocurrency mining industry are set to disappear.
It will be the free market that drives down that energy usage, rather than regulations and sanctions. The days of the home crypto miner are simply coming to an end, though, as the industry matures and large companies descend and fight for dominance in what could become a $38 billion a year industry by 2025
That comes with its own set of tradeoffs, especially for philosophical hardliners. Like it or not, a leaner, greener cryptocurrency mining process is just around the corner, and big business is going to create it.
FOR GREEN CRYPTOCURRENCY MINING
FUTURE OF CRYPTOCURRENCY
DEPENDS ON ECOLOGICAL MINING
"CRYPTOCURRENCY DEPENDS ON ECOLOGICAL MINING"
Donate BTC to support awareness enquiry:
I requested a Vogogo deposit on the 7th of October, and after 8 days! The money is still no shown in my account! submitted by
The price of bitcoin in CAD was 122 on the 7th! and now its 141!
How are you gonna compensate for my loss, CaVirtEx!
How stupid is this traditional banking system!
Bloomberg the Company & Its Products The Company & its Products Bloomberg Terminal Demo Request Bloomberg Anywhere Remote Login Bloomberg Anywhere Login Bloomberg Customer Support Customer Support Vogogo has recently acquired 14,000 ASIC miners and has increased its operations by 200%, which means that the company now has 0.5% of the total hashrate of the Bitcoin network. It was announced this week that the Canadian company would buy 14,000 Antminer S9s with the required electrical equipment and cooling units from a company that is called 828 LP. Vogogo has also formalized the option agreement whereby the Company has the option to purchase electrical and HVAC equipment to be used for further expansion of its cryptocurrency mining activities, to be installed at a location to be determined. The purchase price for the Option Equipment under the Option is $20 million. The Option Equipment ... “Vogogo is currently well positioned with today’s Bitcoin price of approximately US$8,000 and our current cost per Bitcoin mined of approximately CAD$4,600 (US$3,450). In addition, we are ... Vogogo ist ein börsennotiertes Technologieunternehmen an der TSX. V. ANKÜNDIGUNG Vogogo hat ein spezielles Mitgliedskomitee aus seinem Vorstand gebildet, um strategische Alternativen in Betracht zu ziehen. Diese können unter anderem beinhalten: den Verkauf von Vermögenswerten an ein anderes Unternehmen; eine strategische Verkaufs-, Verschmelzungs-, umgekehrte Verschmelzung oder ähnliche ...
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