Hi, I’m Nate Martin from 99Bitcoins.com and here’s what happened this week in Bitcoin. The United States Department of Justice arrested
key figures in the BitClub Network ponzi scam. The scam is said to have pulled in over $722
million and remains active in several countries, such as Japan and South Africa. In 2016 our 99 Bitcoins website warned
readers of the risks of the BitClub Network. Popular BitMEX options trading platform
and its founder, Arthur Hayes, are involved in a major lawsuit. A seed investor in BitMEX’s early funding,
Frank Amato, is seeking $300 million. Amato claims that his initial $30,000 investment was not converted into equity
in the exchange as agreed. According to research, roughly two-thirds
of Bitcoin mining is occurring in China. A single province, Sichuan,
is estimated to control 54% of the hash rate. The total Chinese hashrate is thus up
6% from June of this year. While this is bad news for
Bitcoin’s mining decentralization, the good news is that 73% of mining power
is said to be from renewable energy sources; mostly hydropower. Hydra, a Russian darknet marketplace for trading
contraband like drugs and hacking services, is seeking to raise $146 million through an ICO. The ICO will be conducted over the darknet
and the tokens will supposedly grant investors shares in the marketplace. This ICO should be considered incredibly risky,
as it may prove to be a scam, get participants in legal trouble, or both. However, it’s notable for being perhaps the first instance of public crowdfunding
by a criminal enterprise. Before we conclude,
this week’s “Bitcoin quick question” is: What will happen to mining
when all 21 million Bitcoins are mined? Today, there are over 18 million
Bitcoins in circulation. The mining reward, currently 12.5 Bitcoins,
halves every 4 years, with the next halving happening
around May 2020. It is presumed that by the time
all Bitcoins are mined, transaction fees would be enough
to compensate miners for their work. Don’t worry, this won’t happen
until around the year 2140. To learn more about this topic
visit the link in the description. Have a question you want us to answer? Just leave it in the comment section below. That’s what happened this week in Bitcoin.
See you next week.