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China’s ban forces some bitcoin miners to flee overseas, others sell out

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China‘s sweeping ban on cryptocurrency mining has paralysed an industry that accounts for over half of global bitcoin production, as miners dump machines in despair or seek refuge in places such as Texas or Kazakhstan.

“Many miners are exiting the business to comply with government policies,” said Mike Huang, operator of a cryptomining farm in the southwest province of Sichuan.

“Mining machines are selling like scrap metal.”

The local government of Sichuan, China’s No.2 bitcoin mining centre after Xinjiang, issued a ban on cryptomining a week ago.

China’s State Council, or cabinet, vowed to crack down on bitcoin trading and mining in late May, seeking to fend off financial risks after the global bitcoin mania revived Chinese speculative trading in cryptocurrencies. The clampdown comes as China’s central bank is testing its own digital currency.

Chinese authorities say cryptocurrencies disrupt economic order, and facilitate illegal asset transfers and money laundering. Analysts say Beijing is also worried about potential competition for the digital yuan and that the power-hungry business of bitcoin mining could damage the environment.

Following Beijing’s call, China’s main cryptocurrency mining hubs, including Inner Mongolia, Xinjiang, Yunnan and Sichuan, have unveiled detailed measures to root out the business.

Bitcoin prices plunged below $30,000 this week, less than half their peak levels hit in April, as global investors worried about disruptions in a hitherto large market.

“If the government doesn’t allow it (cryptomining), I just have to quit,” said Liu Hongfei, a mining project operator in China’s southwestern Yunnan province.

“You don’t fight the Communist Party in China, do you?”

China’s ban on bitcoin mining may see up to 90% of all mining in the country go offline, according to an estimate by Adam James, a senior editor at OKEx Insights.

Bitcoin and other cryptocurrencies are created or “mined” by high-powered computers, or rigs, competing to solve complex mathematical puzzles in a process that makes intensive use of electricity.

Most miners in China are “shutting down their machines, and selling them,” said Nishant Sharma, founder of BlocksBridge Consulting, a consultancy focused on the cryptomining industry.

    As a result of China’s shutdown, “every mining operation outside China benefits straight away,” because their mining reward, which is proportional to their share of the global hash rate of the bitcoin network – a measure of miners’ processing power – automatically goes up, Sharma said.

“This is the end of an era for cryptomining in China,” said Winston Ma, NYU Law School adjunct professor.

RELOCATING

Prices of mining rigs have slumped on the mainland after the ban.

One machine which sold around 4,000 yuan ($620) in April and May, could now be bought for as low as 700-800 yuan, said a miner in Sichuan.

Bitmain, China’s biggest maker of cryptocurrency mining machines, said on Friday it had suspended sales of its products and was looking for “quality” power supplies overseas alongside its clients, in places including the United States, Canada, Australia, Russia, Kazakhstan and Indonesia.

Some big Chinese miners are already venturing overseas.

BIT Mining said on Monday that it had successfully delivered its first batch of 320 mining machines to Kazakhstan. A second and third batch, totalling 2,600 machines, will be delivered to the central Asian country by July 1.

“We are accelerating our overseas development for alternative high-quality mining resources,” CEO Xianfeng Yang said in a statement. BIT Mining has also invested in cryptomining data centres in Texas.

Huang Dezhi, who operates a mining farm in Sichuan, said his team is also exploring possible overseas destinations such as Kazakhstan.

“If the government doesn’t reverse the policy, we will have no other choice. You cannot defy central government decisions,” Huang said.

A project manager who identified himself only as Mr. Sun said he has been offering to help local miners move to Russia, but demand for his services had been lukewarm so far.

“Big risks if you move machines offshore, because you’re in effect giving up control over your assets,” said Sun, who is also securing fresh electricity supplies in China’s southern Guangdong province, where restrictions are less tough.

Some miners meanwhile hope the ban will be eventually relaxed.

“Power supply has been cut, but we were not ordered to demolish the project,” said Wang Weifeng, a miner in Sichuan.

“So we’re taking a wait-and-see attitude. There remains a sliver of hope.”

($1 = 6.4663 Chinese yuan)

(Reporting by Samuel Shen and Andrew Galbraith; Editing by Vidya Ranganathan and Raju Gopalakrishnan)

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SoftBank Leads $200 Million Investment In Semiconductor Startup, Boosts Logistics Chip Space – Forbes

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A $200 million funding round led by Japanese billionaire Masayoshi Son’s SoftBank gave a little-known California-based semiconductor startup a boost in the nascent logistics chip space.

SoftBank Group’s Vision Fund 2 led the investment in Wiliot, a four-year-old startup with presence in Australia, Germany, Israel, Taiwan and Ukraine. Previous investors include Amazon Web Services and the venture capital arms of Samsung and Japanese mobile carrier NTT Docomo.

SoftBank’s investment marks a boost for Wiliot, says Mario Morales, group vice president of enabling technologies and semiconductors at market research firm IDC. “Most of these guys have gotten not as much funding as this one,” he notes. “Most of them are running out of money.”

Wiliot, whose stamp-sized chips are designed to allow object identification on a mass scale, could benefit from cross-pollination with the Vision Fund portfolio’s e-commerce and logistics companies, analysts say.

“Vision Fund is spraying billions of dollars on tech firms, and the flow of cash appears almost limitless,” says Neil Mawston, executive director at Strategy Analytics. “Wiliot could potentially work with other Vision Fund investments such as Coupang or Flipkart for leaner e-commerce logistics.”

SoftBank invests in a range of technology companies around the world. Recent deals include investments in the logistics and warehouse robotics sectors. For example, its Vision Fund invested in JD Logistics’ $3.2 billion Hong Kong initial public offerin in May and SoftBank has placed $2.8 billion for a 40% stake in AutoStore, a Norwegian company that specializes in warehouse automation technology for e-commerce.

Wiliot’s encrypted and cloud-enabled chips connect products that move through global supply chains in crates, packaging and on pallets. The startup has raised a total of $270 million in venture capital over time and the latest round was over subscribed, says Stephen Statler, a senior vice president at Wiliot. “We’ve seen a consistent level of interest between financial and strategic investors in what we do,” he says.

Attention to autonomous warehouses, robotics and “smart” retail raise interest in object-finder tech, Statler adds. “One of the basics is to have a real-time view of inventory so when (a customer) does show up, you’re not constantly searching for what you want,” he says.

Wiliot belongs to a small high-tech sub-industry that designs chips for object identification akin to QR coding and RFID (radio-frequency identification) tags, says Morales. The global market for this space spans just 10 startups worth a few tens of millions of dollars, he says.

Over five years, Morales forecasts the space will grow to around $2 billion, but led by half the number of companies that are active now. “The logistics chip industry could eventually be measured in the trillions of units, as every product or thing can potentially be tagged with a battery-less, wireless tracker for real-time inventory management of the demand chain,” he says.

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Camarico Launched Camarico Financial Corporation and Pilot Investment Program – TheNewswire.ca

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July 29, 2021 – TheNewswire – Camarico Investment Group Ltd. (CSE:CIG) (CNSX:CIG.CN) (“Company”) is pleased to announce the restructuring and relaunch of Maverick Northstar Inc as Camarico Financial Corporation (“CFC”). CFC will lead Camarico Investment Groups non-equity-based investment strategies.

 

CFC has received a non-interest-bearing loan from Camarico Investment Group for the sum of $200,000 CAD to initiate CFC’s proprietary Pilot Program, Reserve Capital and G&A. CFC will place Reserve Capital in Collateralized Short Term Demand Notes with qualified third parties.

 

CFC will provide monthly updates on Pilot Program performance and findings.

 

Camarico Financial Corporation is not a licensed financial service provider and WILL NOT sell financial products, such as: mutual funds, insurance, securities or stocks, options, futures, OR have specific duties within a financial services company, such as portfolio management or supervisory responsibilities.

 

ON BEHALF OF THE BOARD OF DIRECTORS OF CAMARICO INVESTMENT GROUP LTD.

“R. Mackenzie Loree”

Chief Executive Officer

Email: mloree@camarico.ca

 

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this press release.

 

Forward-Looking Information: This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information contained in this news release.

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The 5 Worst Investment Tips on TikTok – Entrepreneur

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July
29, 2021

6 min read


This story originally appeared on NerdWallet

This article provides information for educational purposes. NerdWallet does not offer advisory or brokerage services, nor does it recommend specific investments, including stocks, securities or cryptocurrencies.

Do-it-yourself is fine when the stakes are low; everything you need to know about patching drywall is on TikTok. But what about when the stakes are high? Would you rewire your home after watching a few TikTok videos? Probably not, and the same logic goes for financial advice.

Pouring your savings into an investment — or any product — being hawked on social media is generally a bad idea. But how will you know which bits of advice are legitimate, and which are bunk? Below, experts weigh in on the worst investment advice they’ve seen recently on TikTok and other social media.

1. The FIRE movement is for everyone

FIRE stands for “financial independence, retire early,” and given how the movement has spread on social media, the acronym is apt. Chris Woods, a certified financial planner and founder of LifePoint Financial Group in Alexandria, Virginia, says that many of the core tenets of the FIRE movement are great: They focus on lowering your expenses, saving heavily, putting money into diversified index funds and generating multiple streams of income to help you retire early, which may all be sound financial decisions.

The problem is, everyone’s financial situation is different. Financial planners spend a lot of time upfront learning as much as they can about someone’s unique financial standing before making any recommendations. And for some, he says, the FIRE movement may be an appropriate goal. But it’s not for everyone, and sound bites from social media influencers can’t take your personal situation into consideration.

“So many people will do what these influencers are saying, even if it’s not the appropriate thing for them,” Woods says. “That’s one of my big overarching disappointments or gripes with the influencers out there. Because a lot of times, they’re talking about this stuff without context.”

The next time you see someone living their best #vanlife and boasting how they retired at 30, remember you’re seeing a highlight reel, Woods says. Their financial situation may have been completely different from yours, and there’s no guarantee what worked for them is right for you.

2. Forget about 401(k)s and IRAs

There’s a thought out there that boring, long-established wealth-building strategies, such as funding retirement accounts like 401(k)s and IRAs, are outdated.

“This is all so faulty and so bad I don’t know where to start,” says Tiffany Kent, a CFP and portfolio manager at Wealth Engagement LLC in Atlanta.

Kent says that to stand out on social media, someone can’t just talk about typical retirement accounts over and over again, no matter how proven they are. Boring doesn’t inspire viewers to smash that “like” button.

Instead, they talk up new, complicated — and at times confusing — products, simply to stand out from the crowd. Sometimes the ideas are a bit contrarian, other times they’re outright outlandish. But this approach, Kent says, is absolutely the wrong way to get financial advice.

“If it’s boring, it’s good,” Kent says.

3. Precious metals are the best long-term play

Gene McManus, a CFP, certified public accountant and managing partner at AP Wealth Management in Augusta, Georgia, said by email that he’s seen claims that precious metals IRAs (which invest in gold and silver instead of stocks and bonds) are a better choice than typical IRAs.

He said acolytes of the strategy argue that precious metals IRAs better protect your money from things like inflation, global supply shortages or a collapse of the financial markets.

But McManus disagrees.

“The long-term history and performance of gold and silver do not indicate that they are a rewarding asset class,” he said. “There are short-term periods that they might outperform the S&P 500, but over the long term, they don’t make sense to own, especially exclusively or overweight in a portfolio.”

4. Hundreds of thousands of people can’t be wrong

It’s true that there’s power in numbers. However, it’s equally fair to say that mob mentality, echo chambers and hype can get in the way of rational decision making. Anthony Trias, a CFP and principal at Stonebridge Financial Group in San Rafael, California, says he’s worked with clients who are investing in stocks they’ve heard mentioned on social media — no matter how staggering the claims of future potential — because of how many people were talking them up.

“There are going to be 300,000 people on social media saying one thing,” Trias says. “But prudent investors block out the noise, do their due diligence and look at who they’re actually listening to.”

Trias also echoes Woods’ concerns. Validating investment ideas based on social media hype is problematic, he says, because investment decisions should be highly tailored to you and your needs — and that’s just not possible on social media.

5. Your cryptocurrency will absolutely go to the moon

All the rocket emoji in the world couldn’t give a valueless cryptocurrency long-term staying power, no matter who’s pumping it.

Clayton Moore, founder and CEO at crypto-payment system NetCents Technology, said by email that while engaging platforms like TikTok have been instrumental in spreading the word about cryptocurrencies, they’ve also become breeding grounds for fraud.

“You’ve got to watch out for the crypto influencer who’s just in it for a quick buck,” he said. “The classic pump and dump.”

Moore said it’s common for crypto influencers to accept payment in exchange for making wild claims about a coin, only to abandon their support for it once the check clears.

“If it is too good to be true, 99% of the time, it is,” Moore said.

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