bithumb

On June 7, 2018, South Korean Cryptocurrency Exchange Bithumb released the results of a user survey called, “Cryptographic Investment Trends.” It captured the perspective of 2,507 virtual currency investors over the age of 20. The survey included questions on investment plans and government regulations. A notable finding was that 42.8 percent of those surveyed plan to “hodl” or keep their crypto-investments over the long term. A Bithumb press release authored by “Bitsumm manager” states:

As cipher money continues to be recognized as an asset in major industrialized countries, the perception of cipher money investment is gradually matured by domestic investors.

Bithumb Survey Findings

The Bithumb survey discovered that the older the cryptocurrency buyer, the more likely they are to plan to hodl and make longstanding investments. Here are the percentages of each age range that plan to preserve their holdings:

  • Investors in their 20s: 30.8 percent
  • 30s: 40.3 percent
  • 40s: 45.3 percent
  • 50s and older: 49.1 percent

Bithumb also shares that 39.5 percent of those surveyed plan to keep their investments, even if the government requires them to pay capital gains taxes, or taxes levied on profits from the sale of assets, on cryptocurrency. This is an 11 percent increase over Bithumb survey data from a year ago. About 13.1 percent responded that they would completely stop investing in digital money if this tax is imposed. The exchange concludes, “more and more investors are looking at cryptographic money as assets and looking for stable investments.”

Bithumb was founded in 2015 and is one of one of the largest exchanges in South Korea. The survey was conducted between April 30 and May 6, 2018, through Bithumb Cafe, Bithumb’s official communication channel.

Other South Korean- and Bithumb-related News

South Korea continues its tumultuous journey to establish crypto-trading regulations, which included discussion of a total ban in January 2018.

Bithumb recently made regulatory headlines when it announced it would ban users from 11 countries in late May 2018 as part of its anti-money laundering or AML policies. Specifically, citizens of countries labelled as Non-Cooperative Countries and Territories, or NCCT, were banned as of May 28. NCCT countries are noncompliant with the standards set out by the Financial Action Task Force on Money Laundering, or FATF, an intergovernmental organization established by the G-7 in 1989. This group of countries includes North Korea, Iran, Iraq and Sri Lanka.

Bithumb stated in a related press release:

We will strictly enforce our own rules and protect our investors, and we will actively cooperate with the authorities. We will lead the standards of the Worldwide Codex Exchange with autonomous regulation ahead of schedule.

Earlier in 2018, South Korean exchanges including Bithumb banned anonymous cryptocurrency trading.

As of May 2018, Yoon Suk-heun, the new governor of the country’s Financial Supervisory Service, is reportedly considering relaxing cryptocurrency regulations.

The featured image is a collage featuring the Bithumb logo (credit: Bithumb) and a public domain survey image.

Reddit and GitHub user iminehard noticed their cellphone experienced interference while near their impressive GPU mining farm. Following this, iminehard investigated the issue and found that there was a definite increase in noise around a specific LTE range. iminehard’s testing methodology and results are covered in more detail below.

“TL;DR – Large number of GPUs in open air crypto currency mining “rigs” emit substantial spurious emissions/noise on portions of the LTE spectrum used in the United States.”-GitHub and Reddit user iminehard

Testing for interference

iminehard documented their testing methodology along with their results. Testing made use of a Laptop, an RTL-SDL tuner, and an omnidirectional antenna for said tuner. SDL, or Software Defined Radio, allows you to use a computer to capture and produce RF signals, using its CPU to process the signals. This is different from regular radio, which uses specialized hardware to process the signal. Iminehard used this to capture the frequencies on which LTE operates.

Chart comparing parts of the RF spectrum between tests
Mining in blue, idle in green

The first pair of tests iminehard performed was a single GPU inside a case, first at idle, but overclocked and with fans on, and the second with the mining software bminer running. No perceptible difference can be seen on the charts comparing the LTE spectrum between the two tests. The lack of difference between the charts could mean a few things. Namely, it could mean that the case used blocked or grounded out the interference. Otherwise, it could mean that the interference generated by a single GPU is undetectably negligible.

Moving forward, iminehard tested their mining farm, with interesting results:

 

iminehard's GPU mining farm
iminehard’s GPU mining farm

iminehard used the same testing method that was used above on their farm. And unlike the previous test, there was a significant change in what iminehard called “range 1” of the LTE spectrum used by the United States (617-746 MHz).

Chart of RF spectrum showing the difference between tests
Mining in blue, idle in green. Sourced from iminehard’s investigation on GitHub

Results of interference

As shown above, there is some definite interference caused by large-scale GPU farms. This interference may cause service disruptions for those trying to use cell phones within the field. Due to the fact that this may cause service interruption, the farms may break federal laws regarding intentional interference. Or may cause the FCC to come knocking on your door asking you to knock it off.

Shielding to prevent interference

The above tests were performed on ‘open’ GPUs. ‘Open’ referring to the fact that the GPUs were not mounted in a metal case. A metal case may provide some shielding for the interference that the GPUs release, either due to grounding or construction. Aside from being sure to mount all GPUs in a real case, one could build a Faraday cage around the entire farm. A correctly built faraday cage should contain all the interference within the cage. One major downside to using a Faraday cage is that Faraday cages are conductive. If it collapses, it could damage equipment.

coin renders

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Image courtesy of Carty Sewill, http://cartyisme.com/

Photo by Pok Rie from Pexels

In a highly-attended public hearing held on May 14, 2018, the Chelan County public utility district (PUD) approved a three-month extension of a moratorium on the approval of electric service for new cryptocurrency mining operations.  The low energy costs in the Mid-Columbia Basin have attracted cryptocurrency miners from as early as 2013.  However, when Bitcoin soared in value in late 2017, the region saw a large increase in inquiries and applications from cryptocurrency miners.   

The current moratorium in Chelan County was unanimously approved in March, with officials requesting time to review and assess the potential impacts of increased cryptocurrency mining and electricity demands within their communities.  Citing similar energy concerns, the City of Plattsburgh in New York became the first municipality to ban cryptocurrency mining in early March, enacting an 18-month moratorium on all cryptocurrency mining operations.

Chelan County is one of three rural Washington counties (Chelan, Douglas, and Grant) served by five hydroelectric dams operating in the Mid-Columbia Basin.  The dams generate approximately six times the amount of energy required by residents and businesses, allowing the PUDs to subsidize local energy cost by exporting the surplus energy at premium rates.  While cryptocurrency mining operations may bring economic value to the rural region of Chelan County and surrounding areas, residents are also concerned that the increased local demand for electricity will result in an increase in household energy costs.  

The availability of low-cost electricity has also attracted unauthorized mining operations to Chelan County and the Mid-Columbia Basin.  These operations are sometimes established in residential areas, where the infrastructure and equipment are not designed to support heavy loads of electricity.  Chelan County PUD cited the risks posed by these unauthorized operations in its initial announcement of the moratorium, emphasizing the health and safety risk to its staff and county residents.  Shortly after implementing the moratorium, the Chelan County PUD directed its staff to enforce compliance with the moratorium by imposing fees and fines, disconnecting service, and reporting the unauthorized use of energy to law enforcement as theft.  

While restrictions on cryptocurrency mining activity have primarily been implemented at a local level, governments could take steps to regulate mining activity at a larger scale.  In January, Bloomberg reported that China was discussing taking steps to regulate energy usage by cryptocurrency mining operations, a move that could have a large impact on the global mining industry.  Given the increased attention to the energy demands of proof-of-work cryptocurrencies like Bitcoin, it seems likely that energy regulation will play an important role in the increasingly complex regulatory environment for cryptocurrencies.