Bitcoin and cryptocurrency news round-up: 11 January 2018
What you need to know
Bitcoin mining is extremely lucrative in China, Ripple has filed a counter lawsuit against R3, and Warren Buffet isn't a fan of bitcoin and other cryptocurrencies.
1. The Ripple and R3 saga continues
In mid-2016, Ripple Lab’s former CEO Chris Larsen made a deal with bank consortium R3 that included an option for R3 to buy 5 billion units of its currency for next to nothing. At the time, Ripple's XRP was worth next to nothing, but now, that same amount offered to R3 would be worth over US$12 billion.
Ripple has not paid that money to R3, and as a result, R3 has issued a lawsuit. However, this week Ripple has issued a counter lawsuit accusing R3 of signing the deal in bad faith, and using the partnership to steal its expertise to develop a competing product.
The 5 billion XRP currently up for debate is approximately 10% of the entire Ripple XRP circulation.
2. Even if bitcoin's price halved, it would still be profitable to mine in China
Miners can profit from bitcoin as long as it’s worth more than US$6,925 based on the electricity it costs to run the mining rigs versus how much bitcoin those rigs can mine. At the time of writing (January 2018), Bitcoin's price currently sits a little underneath US$14,000.
3. On top of its new KODAKCoin, Kodak also has a bitcoin miner now
Unveiled at CES, you are required to lease the miner off the company. The company says that after you pay back Kodak its 50% cut of your mining, it will currently (January 2018) net a user a bit less than US$400 a day. However, what they don't talk about is the fact that Bitcoin mining difficulty gets around 15% harder every month, which would mean that the money a user could make each month would become 15% less.
4. Warren Buffet doesn't really like bitcoin and crypto
Legendary investor Warren Buffet believes that bitcoin and cryptocurrencies are a bubble and that one day they will crash.
“We don’t own any; we’re not short any,” Buffett said in an interview on CNBC. “We’ll never have a position in them.”
“What’s going on definitely will come to a bad ending,” he said
However, Buffet also added he actually doesn't know much about cryptocurrencies.
"I get into enough trouble with things I think I know something about," he added. "Why in the world should I take a long or short position in something I don't know anything about.”
5. Ripple is continuing to have a bad week
XRP is now below half its peak that it hit a week ago, below the US$2 mark again at US$1.94. This is still likely delayed effects from panic selling after South Korean exchanges were removed from CoinMarketCap's reference, bringing the price down almost 30% on the site.