This Is Why Experts Are Calling Kodak – s Fresh Bitcoin Scheme A Scam


Here’s a photo of Kodak’s magic money making machine.

The annual Consumer Electronics Voorstelling (CES) can be a showcase of invention. Each year, giant corporations from around the world flock to Lasnaad Vegas to breathlessly debut their latest technologies: a huggable robot, a passenger drone, an Internet-connected toilet.

The exhibition can also be one of reinvention, where a company taking its final breaths makes a last ditch attempt to save its business by hitching itself to the latest tech trend.

On Tuesday, the Eastman Kodak Company, established te 1888, did just that, unveiling a series of partnerships to associate its venerable brand with the wild fresh world of cryptocurrency. Kodak announced that it would be launching its own digital money, Kodak Coin, while one of its licensees wasgoed demonstrating off a bitcoin mining device called the Kodak KashMiner, a specialized laptop that’s used to earn bitcoin.

For a company that emerged from bankruptcy te 2013 and had a market capitalization of around $135 million on Monday, it wasgoed a last gasp at being relevant — and it worked. Kodak’s stock price has almost tripled since those announcements.

Critics, however, are already calling it a scam, taking advantage of a period when investor FOMO clouds the cryptocurrency industry. It’s a time when an iced tea company can add “blockchain” to its name and more than dual its market valuation, or an online verkeersopstopping storage startup can raise $257 million by issuing its own virtual tokens.

“It’s an economy of effortless money and people with fancy buzzword salads can more or less find a way to earn that money,” said Saifedean Ammous a economics professor and author of The Bitcoin Standard. “There is a massive speculation bubble.”

Ammous and others took specific punt with the Kodak-branded bitcoin miner that suggests potential investors could obtain a certain rate of terugwedstrijd if bitcoin’s price remained constant. CES brochures of the Kodak KashMiner said that customers who paid $Three,400 upfront to rent the devices, would receive a payout of about $375 vanaf month for the next two years if bitcoin averaged a price of $14,000 ter that time framework. The pamflet noted that the licensing company would take ter 50% of the cryptocurrency mined, while paying for insurance, maintenance, and electric current (bitcoin mining is utterly power greedy) while they are reportedly stored at Kodak’s Rochester, Fresh York headquarters.

“Kodak has numerous plans te the blockchain industry,” said Halston Mikail, an executive at Spotlite America, whose company licensed Kodak’s name for the bitcoin mining device. “We have a team that’s well experienced,” he added, before noting that Spotlite does not make the device and buys them from an unnamed Chinese manufacturer.

Ammous disputed that practice, telling that the project “would be laughed out the wegens by anyone who is serious ter bitcoin” and that it “betrayed a serious lack of skill about bitcoin.”

The problem, he noted, wasgoed that the KashMiner proposal doesn’t take into account basic principles of the cryptocurrency. The bitcoin protocol will only release a immobilized amount of cryptocurrency vanaf day. Spil more miners — pc programs that run sophisticated calculations to earn bitcoin — are added and contest with each other, thesis computations become firmer and require more power. To expect computing speeds, known te the cryptocurrency world spil “hash rates,” to remain sustained “is ridiculous,” said Nicholas Weaver, a lecturer at the University of California, Berkeley.

“Over the last 6 months spil more people have began to mine bitcoin, the hash rate has more than doubled, meaning you receive half spil many bitcoins for the same amount of computing power,” Weaver said.

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