Mining Overview: Litecoin’s 1 Th/s Milestone, BitFury’s Board Boost and Lab Rat’s Lawsuit

During last week, litecoin’s network hash rate surpassed 1 Th/s, BitFury formed its strategic board and Lab Rat Data Processing faced investor suit.

In spite of the recent bitcoin price decrease, the bitcoin difficulty is rising. Still, what influence will have the recent price decline on bitcoin?

There was recently a discussion on Bitcoin Talk that focused on the bitcoin mining network difficulty. Forum members assumed that the network might decline due to the drop of the bitcoin value. Some argued that the price could fall to $150 per coin until the large number of miners unplug and the difficulty decrease.

According to one of the members, the investments will provide the growth of difficulty in the near future. They expect it will continue escalating till 2015.

Although bitcoin price is on a downward trend now, it is possible that the difficulty will further increase.

Litecoin Breaches 1 Terahash per Second in Mining Power

Litecoin’s network hash rate passed 1 Th/s on September 15th, following days of significant boost. At the same time, the litecoin difficulty surpassed 30,000.

Some expected this increase, as more scrypt ASICs appeared on the market. Earlier this month, KnCMiner started supplies of its Titan ASIC, while other options were still available.

The surge may also be a result of dogecoin and litecoin merge. The decision could provoke dogecoin miners to shift hashing power to the litecoin network, while continuing mining DOGE.

Some Reddit users admitted that jump will have a good impact on the network. Meantime, others said that more ASICs will lead to the consolidation of power among larger miners, producers that may also mine using their equipment.

BitFury Forms Strategic Advisory Board

Besides a number of strategic investments, BitFury has recently formed its strategic board, which includes representatives from venture capital industries and bitcoin sector.

The company made two key appointments: Binary Capital founder and former Google R&D executive, Jonathan Teo, and CEO of Taiwanese semiconductor producer UMC, Dr Jackson Hu.

Moreover, BitFury announced that Tanjarine founder and former VeriFone CEO, Bob Dykes, has also joined its board of directors. He will serve on the budget and audit committee.

BitFury CEO Valery Vavilov hailed noted: “These new members of our board of directors and advisory board will provide valuable input to ensure that BitFury is well positioned to retain its leadership role in silicon design and technology in the fast-paced and constantly evolving virtual currency marketplace.”

Lab Rat Data Processing Faces Investor Lawsuit

On August 26th, a number of investors and bitcoin community members filed a document in the US Distrcit Court of Tampa, suing Lab Rat Data Processing, a New Jersey-based mining operation. Its founder Zachary Dailey was accused by 12 plaintiffs of fraud, misrepresentation and breach of contract.

Suitors are represented by Akerman LLP, Florida-based law company. The filing alleged that Lab Rat Data Processing wanted to “coerce the Plaintiffs to relinquish their contractual and other legal rights” by changing the conditions of the contracts. The company lied that it will be able to pay dividends to shareholders, equaling to 2,430.35 bitcoins ($1.5 million).

Dailey didn’t provide any comments, but noted further clarifications will come soon. He said: “There will likely be multiple responses before one of true importance is even worth sharing. I’ll ask my lawyers if I should share or just let you guys pull from public records…”

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