Quantum technology: how the EU wants to catch up with the competition – Market Research Telecast

The first quantum-cryptographically secured connection between two federal authorities was presented to the public on Monday. The project is part of a whole series of research initiatives with which the German government wants to secure the technological sovereignty of Europe. She identified quantum technology as one of the key technologies.

The fact that quantum physics is considered incomprehensible and puzzling is not only due to the rather abstract mathematics on which the theory is based. What is particularly irritating is the permanent violation of common sense by quantum systems: The mostly microscopic quantum objects move through barriers like ghosts, are apparently in two different places at the same time and can instantly influence each other in a puzzling way, even over great distances. Quantum technology makes targeted use of these phenomena by specifically preparing and manipulating the states of individual quantum systems.

In this way one can at least theoretically carry out calculations with quantum computers that cannot be carried out with classical computers. Quantum cryptography makes it possible to encrypt data so that it cannot be cracked, and quantum sensors can be used to measure things that were previously considered impossible to measure. Although it sounds like an empty phrase, the potential of this technology is actually revolutionary. However, it is still largely theoretical much is still at an early stage of research.

This article is from issue 5/2021 of the Technology Review. The magazine will be available from July 8th, 2021 in stores and directly in the heise shop. Highlights from the magazine:

For some time now, however, there have been rapid technical advances in the field of quantum technology. Quantum cryptography, for example, the mathematically verifiable unbreakable encryption of data, was still considered an exciting theoretical concept in the 1980s and was first implemented in practice in the early 2000s albeit only in the laboratory. The same applies to quantum computing: in 1994, the mathematician Peter Shor devised a method to use quantum computers to break down numbers into their prime factors a core component of classic encryption algorithms. In 2001, IBM ran the algorithm for the first time on a quantum computer, which, however, was very small and could only break down the number 15 into its components 5 and 3.

In many such research projects, European researchers came out on top. However, they have been made technically usable for around 20 years mainly by large US corporations such as Google and IBM, which primarily want to use the potential of quantum computers for themselves. Quantum computers can be used, for example, to simulate the design of new molecules for drugs, predict traffic flows in megacities in real time, or take machine learning to a new level.

The physicist Tommaso Calarco from Forschungszentrum Jlich, together with colleagues, therefore initiated a kind of roadmap, a plan for a Europe-wide, coordinated research program that should make it possible to use the second quantum revolution also technically. The Quantum Manifesto was signed by over 900 researchers when it was published in 2016. In 2018, the EU decided to actually support the development of quantum technology with one billion euros albeit over a ten-year period. In addition to the EU package, individual EU states such as Germany decided on further national funding programs. In Germany, the government recently provided almost two billion euros in funding for the development of quantum technology.

The funding focuses on three technical areas with very different degrees of technical maturity and application potential: quantum computers, quantum communication and quantum sensors. From a technical point of view, the development is furthest in quantum communication: as early as the early 2000s, the first commercially available systems were available with which tap-proof quantum communication can be implemented. However, these systems could not prevail for three main reasons:

First, they solved a very theoretical problem: strong, well-implemented, classic cryptography is theoretically vulnerable. In practice, however, it requires attackers with considerable resources to break this encryption.

Second, the technology is the only one that is theoretically mathematically provable not open to attack. In practical installation, however, there are also gaps in quantum encryption that hackers can exploit. The Russian physicist Vadim Makarov, for example, was able to show in 2008 with its Quantum Hacking Lab how photon detectors can be blinded in order to outsmart quantum cryptographic systems.

Thirdly, there are annoying technical restrictions: Until now, quantum cryptographic connections can only be established between two points further networking is only possible at the expense of security. In addition, the range of such connections is limited to a few hundred kilometers. Researchers in the Netherlands are working on a quantum repeater that allows more than two points to be genuinely networked, but the work is still at a very early stage.

For all three points, however, the situation has changed significantly over the past ten years. State or at least state-supported cyber attacks with considerable resources are now the order of the day. In addition, potential attackers but also competitors invest considerable resources in the development of quantum computers, with the help of which conventional encryption can easily be cracked. At the same time, China is massively expanding its own quantum cryptographic network and even if it may be technically imperfect is gaining valuable practical experience with it. This has led to a re-evaluation of quantum technology.

There is now a great deal of interest, especially on the corporate side, in examining the potential of quantum computing and quantum communication specifically for its suitability for practical use. While computing is primarily about exploring how optimization problems can be practically transferred to quantum computers and what can actually be extracted from the currently still very limited quantum hardware, the focus in quantum communication is on the stability and practicality of the components.

In the area of quantum computers, Europe is also relying on the independent development of its own hardware in order not to fall into a one-sided technical dependency. The Europeans chances are not as bad as they look at first glance. Because Google and IBM are currently the most advanced in building quantum computers both rely on superconducting loops in their quantum processors. In the OpenSuperQ project, European researchers want to catch up within the next five years and build their own superconducting quantum chip with 50 qubits. In any case, the researchers see the main task in developing a functioning error correction for the quantum computer a problem that all research groups around the world are still working on.

In addition, superconducting chips are not the only hardware to build a quantum computer and the question of which hardware is best has not yet been decided. In the AQTION project, for example, European researchers are developing a quantum computer based on so-called ion traps. Ions, which are held in place by electrical fields and excited with laser pulses, serve as qubits. Within two years, they were able to accommodate the prototype of such a quantum computer in a server module. In other working groups, scientists are researching spin qubits in silicon or ion traps that are controlled with microwaves.

The entire field of quantum technology is very research-intensive technically highly specialized developments such as extremely low-noise electronics for controlling the quantum systems are closely interlinked with experimental and theoretical basic research. In order to get ahead at this point, the quantum community has so far relied on strong international cooperation.

In August 2016, for example, a rocket was launched from the Chinese spaceport Jiuquan and carried a communications satellite into near-Earth orbit, from which a quantum connection between two continents was realized for the first time. This experiment was made possible by the collaboration between Jian-Wei Pan, the Chinese University of Science and Technology and the quantum pioneer Anton Zeilinger from Vienna. Pan had written his doctoral thesis at Zeilinger.

Such a carefree cooperation is likely to become more difficult in the future. Not only with researchers in China: The rules for projects in the research framework program Horizon Europe could prove to be groundbreaking. For months, however, the EU Commission and the governments of the member states discussed the participation of researchers from third countries in sensitive research projects, including in the field of quantum technology. An original draft that would have excluded researchers from Switzerland, Israel or Great Britain from participating in such projects in the future was deleted at the initiative of the German government, among other things. According to the compromise, which the EU Commission still has to agree to, the applicants only have to prove credibly that their participation would not harm European interests, security and autonomy.

How to turn it around: International cooperation remains a sticking point in the development of quantum technology. So whether a purely European quantum technology can ever be realized can at least be viewed as very unlikely. But that is commonplace for quantum researchers.

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Quantum technology: how the EU wants to catch up with the competition - Market Research Telecast

AWS leverages Singapore scientists to overcome the hurdles facing quantum computing The Register – Illinoisnewstoday.com

Amazon Web Services has partnered with the National University of Singapore (NUS) in hopes of improving quantum technology and its applications. The duo announced this week that it has signed a memorandum of understanding.

The collaboration is a quantum engineering program hosted by NUS (QEP), Five-year SG $ 25m ($ 18.5m, 13.3m, 15.6m) initiative launched in 2018 by Singapores National Research Foundation to become a technology that can commercialize the abstract science of quantum physics. Focus on converting.

So far, QEP has eight major research projects that could ultimately outperform todays supercomputers, such as hardware and software, to simulate chemicals and help design drugs. I have supported it. reality.

QEP is currently working with companies to identify the problems they are facing that quantum technology may or may not be able to address soon or soon. QEP director Alexander Lynn said. Register..

For example, we help quantum computing software researchers explore algorithms and simulation techniques that can be applied to real-world data. They aim to address supply chain management, finance, trade, chemistry, and materials challenges. The proposal is currently being considered for financing.

Quantum computing may require a leap of science and engineering to create a working system, but one day it will be able to provide powerful computing tools that go beyond the boundaries of traditional computers. maybe. And if the quantum computer takes off (if it is still in the scientific experiment stage), the communication needs to be quantum protected. These computers may be able to computeally decipher unquantum-protected data.

Some forms of encryption used today can be broken by large quantum computers in the future, which also facilitates the search for alternatives, says Ling.

and Canned statement, NUS said AWS will be able to access the universitys National Quantum-Safe Network. It is a vendor-neutral platform for developing technology and integrating some of it into local fiber networks.

The understanding that we are using quantum communication technology to support experiments with existing fibers is correct, said Tan Lee Chew, managing director of AWS ASEAN. Register.

According to Tan, AWS has the opportunity to support Singapores SmartNation initiatives such as traffic optimization, financial planning, shipping and port operations, and material design applications within commercial organizations.

The goal is to train Singaporean scholars, students, and commercial organizations to develop quantum computing skills.

Quantum technology could help Singapore accelerate the smart nation agenda, Tan added. own products.

Inevitably, there are also some joint public relations activities.

Last August, AWS debuted a cloud-based quantum computing-like service. bracket.. Products that pay only what they need provide access to quantum annealers. A gate-based system built on superconducting cubits and trapped ions. Hybrid quantum and classical algorithm tools. Users work in a Jupyter notebook environment.

The quantum cloud initiative is nothing new. IBM and Microsoft are already doing that.In fact, IBM is already 3 years collaboration Big Blue uses QEP to provide NUS researchers with cloud access to 15 of IBMs current generation quantum computing systems.

How about A huge machine that is AWS, Ling said, an existing relationship already exists. Singapore researchers already had connections with companies working with AWS to provide cloud access to quantum hardware.

AWS leverages Singapore scientists to overcome the hurdles facing quantum computing The Register

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Quantum Computing Market 2021 with Top Countries Data Analysis by Industry Trends, Size, Share and Company Overview – Digital Journal

Global Quantum Computing Market Size, Status And Forecast 2021-2025

MarketInsightsReports, a leading global market research firm, is pleased to announce its new report on Quantum Computing market, forecast for 2021-2025, covering all aspects of the market and providing up-to-date data on current trends.

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis. The report also includes a detailed study of key companies to provide insights into business strategies adopted by various players in order to sustain competition in this highly competitive environment.

Get a Sample Copy of the Report:https://www.marketinsightsreports.com/reports/05202915819/global-quantum-computing-market-analysis-by-solution-type-hardware-software-full-stack-application-optimization-simulation-sampling-machine-learning-end-user-by-region-by-country-2020-edition-market-insight-competition-and-forecast-2020-2025/inquiry?mode=54

With our Quantum Computing market research reports, we offer a comprehensive overview of this sector such as sales analysis, impact of domestic and global market players, value chain optimization, trade regulations, recent developments, opportunities analysis, strategic market growth analysis, product launches, area marketplace explaining, and technological innovations

Top Companies in the Global Quantum Computing Market: The Quantum Computing market was dominated by International Business Machines (US), D-Wave Systems (Canada), Microsoft (US), Amazon (US), Rigetti Computing (US), Google (US), Intel (US), Honeywell International (US), Quantum Circuits (US),and QC Ware (US).

Recent Developments

In January 2020, IBM partnered with Daimler AG, the parent company of Mercedes-Benz, to enhance the capacity and increase the charging speed of batteries of electric vehicles. These companies used a quantum computer to model the dipole moment of three lithium-containing molecules that paves the way for the development of the next-generation lithium sulfur (Li-S) batteries that will be more powerful, long-lasting, and cost-effective than lithium-ion batteries. The Quantum Computing market is expected to grow from USD 472 million in 2021 to USD 1,765 million by 2026, at a CAGR of 30.2%.

In November 2019, IBM partnered with the Unitary Fund to provide grants and priority access to certain IBM Q systems. Similar to the quantum computing mission of IBM, the Unitary Fund aims to create a quantum technology industry that benefits most of the people.

For comprehensive understanding of market dynamics, the global Quantum Computing market is analyzed across key geographies namely: United States, China, Europe, Japan, South-east Asia, India and others. Each of these regions is analyzed on basis of market findings across major countries in these regions for a macro-level understanding of the market.

Key Takeaways from Quantum Computing Report

Evaluate the supply-demand gaps, import-export statistics and regulatory landscape for more than top 20countries globally for the Quantum Computing market.

Browse the report description and TOC: https://www.marketinsightsreports.com/reports/05202915819/global-quantum-computing-market-analysis-by-solution-type-hardware-software-full-stack-application-optimization-simulation-sampling-machine-learning-end-user-by-region-by-country-2020-edition-market-insight-competition-and-forecast-2020-2025?mode=54

-Key Strategic Developments: The study also includes the key strategic developments of the market, comprising R&D, new product launch, M&A, agreements, collaborations, partnerships, joint ventures, and regional growth of the leading competitors operating in the market on a global and regional scale.

-Key Market Features: The report evaluates key market features, including revenue, price, capacity, capacity utilization rate, gross, production, production rate, consumption, import/export, supply/demand, cost, market share, CAGR, and gross margin. In addition, the study offers a comprehensive study of the key market dynamics and their latest trends, along with pertinent market segments and sub-segments.

-Analytical Tools: The Global Quantum Computing Market report includes the accurately studied and assessed data of the key industry players and their scope in the market by means of a number of analytical tools. The analytical tools such as Porters five forces analysis, SWOT analysis, feasibility study, and investment return analysis have been used to analyze the growth of the key players operating in the market.

Customization of the Report: This report can be customized as per your needs for additional data up to 3 companies or countries or 40 analyst hours.

MarketInsightsReports provides syndicated market research on industry verticals including Healthcare, Information and Communication Technology (ICT), Technology and Media, Chemicals, Materials, Energy, Heavy Industry, etc.MarketInsightsReports provides global and regional market intelligence coverage, a 360-degree market view which includes statistical forecasts, competitive landscape, detailed segmentation, key trends, and strategic recommendations.

How we have factored the effect of Covid-19 in our report:

All the reports that we list have been tracking the impact of COVID-19. Both upstream and downstream of the entire supply chain has been accounted for while doing this. Also, where possible, we will provide an additional COVID-19 update supplement/report to the report in Q3, please check for with the sales team.

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This Press Release has been written with the intention of providing accurate market information which will enable our readers to make informed strategic investment decisions. If you notice any problem with this content, please feel free to reach us on [emailprotected]

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Quantum Computing Market 2021 with Top Countries Data Analysis by Industry Trends, Size, Share and Company Overview - Digital Journal

Why it’s time to wake up to the quantum threat – Finextra – Finextra – Finextra

Quantum computing is proving to be enormously exciting for financial institutions. Already,Goldman Sachs and Deutsche Brse are exploring quantum algorithms to calculate risk model simulations 1,000 times faster than currently possible, whileBBVA is looking to quantum to optimise investment portfolio management.

But a more sinister aspect to the technology also lurks just around the corner. Because of their computing power, quantum machines will be able to smash through the mathematical algorithms underpinning all modern encryption - posing an unparalleled cybersecurity risk.

It would take a traditional computer years to break the public-key encryption relied on today by just about every financial services company, but a fully-scalable quantum computer could achieve the same in a matter of hours.

According to roadmaps laid out by major players in the field, we will have a quantum computer capable of doing this within the next decade.

Mapping the vulnerabilities

Banks and financial institutions use a range of cryptographic algorithms to ensure the security of transactions, including symmetric key cryptography (e.g. 3DES) and public key cryptography. Although public key cryptography is most exposed to the quantum threat, some types of symmetric key cryptography are also vulnerable to attack.

Core to these operations are hardware security modules (HSMs). These form a key part of the physical infrastructure that stores and generates secure keys using cryptographic asymmetric algorithms to authenticate and validate transaction information.

A chain is only as strong as its weakest link, so unless up-to-date, quantum-secure HSMs are in place, theres a risk of quantum attackers exploiting a single vulnerability to expose all data within the payments ecosystem.

What complicates the issue is that quantum decryption can be applied retrospectively.

Bad actors could begin collecting encrypted data from institutions today, with the intent to harvest now, decrypt later. Financial services companies could unknowingly be victim to an attack today, and only suffer the consequences in the future when quantum computers become available.

Thankfully, some institutions are already paying attention, with early movers likeScotiabank,JP Morgan and Visaall taking the threat seriously.

Beginning the fight back

The world began to take note of the quantum threat when, in 2016, the US National Security Agency issued an officialwarning to industry. Shortly thereafter, the US National Institute of Standards and Technology (NIST) launched a post-quantum cryptography standardisation project to lay out the path to a quantum-secure future.

NIST is running the process as a competition. The project is now in its final stages, with seven finalist algorithms left after 80 submissions from six continents. The final algorithms will be chosen in 2021, with draft standards to be published thereafter.

Its anticipated that the US government will require contractors to incorporate the new NIST standards in order to conduct business with its agencies. As critical infrastructure, financial institutions are also likely to find that quantum-secure cryptography soon becomes a technical necessity.

The path to quantum security

The migration to new cryptography standards will be a massive undertaking - one of the biggest cybersecurity shifts in decades.

The transition will be complicated for banks, too. Each institution will be starting from its own unique position, with its own legacy systems and infrastructure, and each will be vulnerable to the quantum threat in a different way.

Financial institutions can save time in the long-run by taking steps to plan their own transition before NISTs new standards are even announced.

The first step is to conduct an audit, pinpointing each and every place where encryption is being used within the organisation. This will help to identify weak spots, find areas in need of rationalisation, and so on.

NISTagrees that companies should start preparing for the transition today: 'Itis critical to begin planning for the replacement of hardware, software, and services that use public-key algorithmsnow, so the information is protected from future attacks'.

Looking ahead

Institutions have invested huge amounts of time and effort building customer trust in digital banking, and cryptography was the main mathematical tool that allowed this to happen.

Now that quantum computers threaten to break it, its time for the sector to fight back.

The security of all sensitive data, past and present, relies on it.

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Why it's time to wake up to the quantum threat - Finextra - Finextra - Finextra

U.S. Presses Effort to Secure Julian Assanges Extradition From U.K. – The Wall Street Journal

LONDONThe U.S. government resumed its yearslong effort to put Julian Assange on trial on spying charges, challenging a British judges decision to refuse the WikiLeaks founders extradition because he posed a suicide risk.

In a preliminary hearing in London ahead of a full appeal in October, lawyers acting for the U.S. sought to broaden the grounds for appealing a January decision against Mr. Assanges extradition, arguing the evidence around Mr. Assanges mental health needed revisiting.

Judge Timothy Holroyde agreed, saying the judge in the lower court that refused the extradition gave too much weight to the evidence of a defense witness who misled the court by omitting in a report to the court that he knew Mr. Assange started a new family while holed up in the Ecuadorian Embassy in London.

The decision means the U.S. can challenge the extradition refusal on multiple fronts, relating both to points of law and the lower courts central judgment around Mr. Assanges mental state. The U.S. has already offered assurances around Mr. Assanges treatment if extradited to ease concerns that harsh prison conditions could heighten his risk of suicide.

The full appeal is slated for Oct. 27 and 28. Further appeals are possible, meaning Mr. Assanges fate might not be clear for many months.

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U.S. Presses Effort to Secure Julian Assanges Extradition From U.K. - The Wall Street Journal

Julian Assange’s partner seeks end to ‘nightmare’ of ‘threats and intimidation’ – Northern Times

Julian Assanges partner has made a plea for this nightmare to come to an end once and for all as the US Government won the latest round in its High Court bid to extradite the WikiLeaks founder on espionage charges.

Stella Moris, who has two children with Assange, spoke outside the Royal Courts of Justice after a preliminary hearing as part of the US Governments challenge to a decision by a British judge in January not to extradite him.

At Wednesdays hearing, Lord Justice Holroyde ruled in favour of the US authorities and allowed them to expand their arguments for the main appeal, which will take place over two days in October.

After the ruling, Ms Moris said the court had not discussed why she fears for my safety and the safety of our children and Julians life.

She said: The constant threats and intimidation that we have endured for years which has been terrorising us and has been terrorising Julian for over 10 years.

Threats against me, threats against our children, death threats against Julians eldest son.

Threats on Julians life, threats of 175-year prison sentence and the actual ongoing imprisonment for a journalist for doing his job.

These are sustained threats to his life for the past 10 years. These are not just items of law, this is our lives.

We have the right to exist. We have a right to live. We have a right for this nightmare to come to an end once and for all.

Ahead of the hearing, Ms Moris accused the US Government of exploiting the inherently unfair extradition arrangements with this country in order to arbitrarily prolong his imprisonment.

She added: The imprisonment of an innocent man accused of practising journalism.

Former Labour leader Jeremy Corbyn also joined protesters in front of the High Court ahead of the preliminary hearing.

He said: The United States seems to have a sort of obsession with people who uncover the truths about US military presence around the world.

I think they should wind their necks in and let Julian Assange go.

I hope the court today gives a very clear signal that they will not allow the appeal by the United States and that Julian Assange will be allowed to go free.

He was applauded by protesters who later shouted free Julian Assange and jail the war criminals to the sound of a beating drum as uniformed police looked on.

The US Governments full appeal against the decision not to extradite Assange will now be heard at the High Court in October.

In these testing times, your support is more important than ever. Thank you.

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Julian Assange's partner seeks end to 'nightmare' of 'threats and intimidation' - Northern Times

US government wins first appeal battle in fight to extradite Julian Assange – The Age

The US government is arguing that Assange is capable of resisting suicide and, in the High Court, repeated its offer for the Australian to serve out any sentence in his home country rather than the US.

The full appeal will be heard on October 27 and 28.

Edward Fitzgerald, QC, representing Assange, sought to comfort the Australian, whom he spoke to from the courtroom via a video link, after the decision.

Its only a preliminary ruling, its not the end of the line at all, just saying its arguable and weve at least got a clear idea of the case weve got to meet for the full hearing, Fitzgerald told Assange.

Supporters gathered outside as the High Court heard a US appeal in the extradition case of WikiLeaks founder Julian Assange.Credit:Getty Images

The conversation was streamed to journalists reporting remotely and was supposed to have been private, but Fitzgerald repeatedly warned Assange that it was likely their discussion was being broadcast.

I wont say any more, Julian, or invite you to say too much because people might be listening in, he said.

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But Assange said he could not comprehend the reasoning behind the decision. I just dont understand how ... an expert has a legal obligation to protect people from harm, my children in particular, he said, an apparent reference to Kopelmans decision to omit referring to Moris and their two children.

The 50-year-old had been expected to appear in person at the Royal Courts of Justice but instead appeared via a video link, seated on a sofa in a room at Belmarsh Prison where he has been imprisoned for almost two years.

He appeared dishevelled, his white hair straggly and grown out to the base of his neck. He wore a white shirt with the collar unbuttoned and a burgundy tie undone and hanging around his neck. His face mask covered only his mouth, leaving his nose exposed.

The US government is pursuing Assange for espionage, arguing he conspired with Chelsea Manning, then an army intelligence officer, to hack into government systems to steal three-quarters of a million secret and classified cables that WikiLeaks dumped, unredacted, online.

Assange says he is a whistleblower and journalist, but this was rejected by the judge overseeing his extradition hearing who said his actions went beyond that of a whistleblower.

If you or anyone you know needs support call Lifeline on 131 114.

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US government wins first appeal battle in fight to extradite Julian Assange - The Age

In depth: the fall of China’s last bitcoin mining haven – Nikkei Asia

For the past year and a half, the loud whirring of tens of thousands of high-power computers filled a cavernous warehouse round-the-clock, contrasting sharply with the quiet forests of the Ngawa Tibetan and Qiang Autonomous Prefecture in southwest China's Sichuan Province.

This computational arsenal belonged to a crypto mining farm, a facility crammed with specialized computers dedicated to solving complex math problems that keep the network running, and earning new bitcoin along the way.

"That's the sound of cash coming in," said the pseudonymous Ye Lang, the 40-year-old manager of the two-floor facility in the prefecture's Heishui County.

At the peak of the facility's bitcoin mining, Ye was in charge of 80 employees and 80,000 mining machines, with the entire project estimated to be earning more than 90 million yuan ($14 million) during the peak six months when Sichuan's rivers are glutted and electricity is especially cheap.

But all this ended at 9 p.m. on June 19, after a cleanup notice issued a day before by the Sichuan government demanded the closure of Ye's facility, along with 25 other cryptocurrency mining projects in the province.

The shutdown notice followed a May 21 meeting of the State Council's Financial Stability and Development Committee -- a high-level economic and financial policymaking body chaired by Vice Premier Liu He -- that specifically stated the country will "crack-down on bitcoin mining and trading," citing the financial risks involved.

Ye had to terminate all operations: One by one, the facility's 2,000 giant fans stopped rumbling and the computers stopped whirring.

"It's over, it's all over," he mumbled.

Ye decided to jump on the bitcoin mining bandwagon in 2018 when he closed down most of his internet cafe business, mortgaged his apartment in Anqing, Anhui Province, borrowed money from relatives, and left his wife and daughters to move to Sichuan. The province was until recently China's second-largest bitcoin mining region after Xinjiang, thanks to its abundant and cheap hydropower.

He got a lucky break in November 2019 when he was introduced to Liu Weimin (not his real name) a well-connected Sichuan businessman who had just negotiated a deal with a state-owned hydropower plant to build a crypto farm in Heishui County, around 300 km from the provincial capital Chengdu. Ye was appointed manager of the facility.

"I watched this center being built brick by brick," Ye said.

The fact that electricity for crypto mining in Sichuan came from hydropower meant that many thought the province would be a safe haven for bitcoin miners. As pressure on local governments to cut carbon emissions began to mount, projects were shuttered in other provincial-level regions such as Xinjiang and Inner Mongolia, where mining was chiefly fueled by coal.

Also, the Sichuan government appeared positive about the business. In July 2019, it decided to set up demonstration zones that welcomed energy-intensive industries to consume hydropower during the summer and autumn months that would otherwise be wasted.

As of April, China was still home to 46% of the world's bitcoin mining activity with the U.S. coming in second at 16.8%, according to data gathered by the Cambridge Center for Alternative Finance.

But everything has changed since the May government meeting, which came after global speculation boosted the bitcoin price to an all-time high of nearly $65,000 per token in mid-April.

According to blockchain information website QKL123, the global average hash rate of bitcoin -- the total combined power used to mine the cryptocurrency and process transactions -- dropped 48% by June 21 from its historic peak on May 13, the day after Sichuan ordered closures.

Despite the government's hard-line approach, Ye is determined to carry on: "This industry is extremely volatile. High emotions and stress are involved, but that's also its appeal."

"Companies are banned from mining bitcoin, but individuals aren't," Ye said, adding that he plans to turn his operation around by purchasing old equipment and downsizing.

Liu, the owner of the shuttered farm that Ye managed, is also devising a plan B, unfazed by the dent the government put in his wallet.

The 40-year-old became a yuan billionaire due to his early investments in bitcoin. In Sichuan alone, Liu owned more than 10 bitcoin mining farms, which industry insiders estimated accounted for one-eighth of the total electricity consumed by all bitcoin mines in the province.

During peak seasons, Liu said his farms could mine 70 to 80 bitcoins every day. About 900 bitcoins are issued each day globally, according to an industry information platform. The price of bitcoin is highly volatile, and was sitting at just over $38,500 per token on July 26, up more than 250% from a year earlier but down over 40% from its April peak.

Liu got a first taste of the potential of crypto mining in 2016 when his friend from college showed him a bitcoin mining machine. Already more than 2 million yuan in debt from a failed farming business, he bought 10 mining machines with 10,000 yuan and installed them at a facility run by a startup incubator in Mianyang, Sichuan.

With the electricity fee fully subsidized by the incubator, Liu was able to earn nearly 200 yuan in profit every day running the computers. He added another 50 computers shortly, only to get kicked out by the incubator on New Year's Day in 2017 because it could no longer stand the bills the operation had racked up.

Liu then decided he would go big or go home. In early 2017, he started with just over 200 mining machines before accumulating around 10,000 machines in September that year.

Shortly after repaying all his debts, Liu decided to adjust his business model and not mine his own bitcoin. Instead, he set up large-scale mining farms for others and helped them manage their machines.

"Mining farms are somewhat like conventional crop farms. No matter how the bitcoin market changes, the mining process remains. Opening such facilities is a relatively stable investment, and I can generally break even in a year," Liu told Caixin.

Thanks to the Sichuan government's mining-friendly policies back then, Liu's business continued to flourish for the past three years. He quickly made a name for himself and was a frequent guest at government events and meetings, where he was recognized as one of many model energy consumers who had helped lift locals out of poverty.

But everything went as fast as it came. The first explicit warning surfaced in late February when authorities in Inner Mongolia proposed banning new crypto mining projects and shut down the entire industry by the end of April as part of a plan to meet the central government's greenhouse gas emission reduction targets. Soon enough, Qinghai, Xinjiang and Yunnan followed suit.

The clampdown eventually reached Sichuan, with authorities ordering the shutdown of all crypto mines -- including all those under Liu's management -- before June 20.

Thankfully, Liu had the foresight to diversify his investments early on in 2019, putting money in various health care, real estate, gaming and entertainment businesses. Following the government's May 21 crackdown announcement, he arranged teams of employees to scout for new venues in North America and Kazakhstan. In mid-June, his company bought an oil field in Canada that could potentially provide fuel for his bitcoin mining business.

In fact, some fossil fuel-rich states in the U.S. are welcoming crypto operations that can consume stranded natural gas produced by oil companies. In May, Shenzhen-based company Bit Mining signed a $26 million deal to build a crypto mining center in Texas, which is quickly becoming the new cryptocurrency capital thanks to its relatively cheap energy and favorable laws backed by its pro-crypto governor, Greg Abbot.

Right now to Liu, an ideal overseas location for his crypto mining business would have to check two boxes: cheap energy and COVID-safe.

"This is going to be a brand new adventure," he said.

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Read also the original story.

Caixinglobal.com is the English-language online news portal of Chinese financial and business news media group Caixin. Nikkei recently agreed with the company to exchange articles in English.

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In depth: the fall of China's last bitcoin mining haven - Nikkei Asia

Bitcoin Price Prediction Avoiding a Return to sub-$40,000 Would Bring $41,500 into Play – Yahoo Finance

After a bullish day for the crypto majors on Wednesday, it has been a mixed morning for Bitcoin and the broader crypto market this morning.

At the time of writing, Bitcoin, BTC to USD, was up by 0.21%to $40,100.0.

A mixed start to the day saw Bitcoin fall to an early morning low $39,272.0 before making a move.

Steering clear of the first major support level at $38,913, Bitcoin rose to a late morning current day high $40,623.0.

Bitcoin fell short of Wednesdays high $40,900.0 and the first major resistance level at $41,010.

It has been yet another mixed morning for the broader crypto market.

At the time of writing, Ripples XRP was down by 3.47%, giving up some of Wednesdays 13.8% rally.

Bitcoin Cash SV (-0.10%), Cardanos ADA (-0.66%), Chainlink (-0.36%), Litecoin (-0.51%) also struggled.

It has been a relatively bullish morning for the rest of the majors, however.

Through the morning, Polkadot was up by 1.46% to lead the way, with Crypto.com Coin gaining 1.33%.

Binance Coin (+0.16%) and Ethereum (+0.48%) also found support.

Through the early hours, the crypto total market fell to an early morning low $1,507bn before rising to a high $1,552bn. At the time of writing, the total market cap stood at $1,538bn.

Bitcoins dominance fell to an early low 48.90% before rising to a high 49.15%. At the time of writing, Bitcoins dominance stood at 48.95%.

Bitcoin would need to avoid a fall back through the $39,907 pivot to bring the first major resistance level at $41,010 back into play.

Support from the broader market would be needed, however, for Bitcoin to break out from the morning high $40,623.0.

Barring an extended crypto rally through the afternoon, expect resistance at $40,500 to pin Bitcoin back.

In the event of a breakout, however, Bitcoin should target $42,500 levels before any pullback. The second major resistance level sits at $42,004. Bitcoin would need plenty of support, however, to breakout from the 38.2% FIB of $41,592.

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A fall back through the $39,907 pivot would bring the first major support level at $38,913 into play.

Barring an extended sell-off on the day, Bitcoin should steer clear of sub-$38,000 levels, however. The second major support level sits at $37,810.

Looking beyond the support and resistance levels, we saw the 50 EMA hold its ground against the 100 and 200 EMAs this morning. This supported the modest upside through the morning.

A widening of the 50 from 100 and 200 EMAs this afternoon would bring the 38.2% FIB of $41,592 into play.

Key going into the afternoon will be for Bitcoin to avoid a fall back through the pivot to sub-$39,500 levels.

This article was originally posted on FX Empire

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Bitcoin Price Prediction Avoiding a Return to sub-$40,000 Would Bring $41,500 into Play - Yahoo Finance

Will Bitcoin Ever Run Out? – Yahoo Finance

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Bitcoin has been around since 2009, but its only been the last few years where its been on the map of the average investor. Thats likely due to the fact that the price of Bitcoin has absolutely exploded. Even after dropping over 50% from its high in 2021, Bitcoin is still up over 250% over the last year, and over 32,500% since 2014. Whereas lots of investors have gotten excited over the prospect of becoming rich by investing in Bitcoin, not many people fully understand exactly what Bitcoin is or how it works. For example, you may have heard that the total number of Bitcoin allowed to exist is limited. But, how is that possible, and what does it mean? Will Bitcoin ever run out?

Check Out: What Is the Next Big Cryptocurrency To Explode in 2021?Consider: Is the Shiba Inu Coin the Cryptocurrency You Should Be Watching?

Heres a quick overview of how Bitcoin is produced, how it can be limited and what it all means for the future of the cryptocurrency.

While the mechanics of the operations can get a bit confusing, Bitcoin is produced by miners, but electronic miners rather than physical miners. The way it works is that Bitcoin miners record transactions on the blockchain, which is a decentralized ledger. To record a transaction, miners must solve complex algorithms using massive computer power. Once a transaction is recorded, which occurs about every 10 minutes on average, the miner is rewarded with Bitcoin. Currently, the reward for miners is 6.25 Bitcoin, but this amount is halved every four years. In 2009, when Bitcoin was first developed, the reward was 50 Bitcoin. Its estimated that the next halving will be in 2024, when the reward will drop to 3.125 Bitcoin.

Learn More: Where Does Cryptocurrency Come From?

Under the mining system, it might seem like there would be no limit to the amount of Bitcoin that could be produced. However, the way its source code is written, there can be no more Bitcoin produced once 21 million coins are in the system. The way the mining system is set up means that the final Bitcoin wont be mined until about 2140, however. So, although the production rate will slow, there will still be new Bitcoin coming online for over 100 years.

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See: If You Invested $1,000 in These Cryptocurrencies a Year Ago, Heres How Much Youd Have Now

Bitcoin will never run out, as there have already been over 18 million Bitcoin mined and there will ultimately be 21 million in the system. However, the introduction of new supply will eventually stop. This is one of the reasons Bitcoin bulls aggressively tout the cryptocurrency. In their opinion, increasing demand for Bitcoin will eventually overcome the limited supply, thereby driving up prices exponentially.

This could prove true, as more and more businesses and even countries are beginning to accept Bitcoin as a valid form of currency. El Salvador, for example, became the first country to accept Bitcoin as legal tender on June 9. However, the future demand for Bitcoin is still far from certain, which is part of the reason there are such wild swings in its price.

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Last updated: July 29, 2021

This article originally appeared on GOBankingRates.com: Will Bitcoin Ever Run Out?

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Will Bitcoin Ever Run Out? - Yahoo Finance