The Downfall Of Bitcoin: Part 2

This is part 2 of The Downfall of Bitcoin: The Need For Responsible Mining, if you have not read part one yet, do so here before proceeding to read this part of the story.

The following is a work of fiction, the events below have never happened. This article serves as a means to stress the importance of mining responsibility on both the miner’s end and the pool owners end and offers a possible situation that could be the downfall of bitcoin. Any companies in the following article are fictional and this story does not pertain to any companies in existence today. The story will be told as a collection of events from several different perspectives on the events leading up to November 17th, 2014.

Disclaimer: All characters appearing in this work are fictitious. Any resemblance to real persons, living or dead, is purely coincidental. Names have been generated with a random Generator.

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9:00 AM, November 8th 2014

Josh unlocked his phone and checked the hashrate of his miner; it had been going steady, and he had been mining without a single problem. Oakmine was still running their -5% network fees, and many miners had flocked to the mining pool to get a ride on the temporary gold rush. A writer on Cryptocoins News by the name of Cody Dennis had written an article about Oakmine cautioning miners to watch the hashrate and keep it far below 50%. Oakmine was currently hashing at 37% of the total network. Cody had done research on Oakmine’s mining operation and had come to the conclusion that the pool was properly displaying their hashrate, and there was currently nothing to worry about. Cody Dennis had suggested “taking turns” with the mining pool and mining on Oakmine one day then mining on a different pool the next day to give everyone the opportunity of mining on the pool without a risk of endangering the network. Three of the largest mining pools were cloud based mining services which constantly mined without users pointing their rigs towards the pool. Oakmine was still in a great place as a business. Their mining program had attracted headlines across major news sources in the United States.

Josh and Alan had been mining non-stop on Oakmine since the 5th and both of them were mining more than they could anywhere else. Cody Dennis’s article was incredibly popular, and further increased the reputation of Oakmine. The only thing that concerned Josh was the fact that CEO Hector Stephens had not appeared in any of Oakmine’s numerous videos showing off the mining equipment or features about the company, perhaps he was just camera shy. A picture of Hector Stephens was located on the front page of the site and a quick Google search came up with more results on Hector than just the Oakmine company. Josh was happy to be mining on Oakmine. When he logged into the site to check the hashrate, he was completely stunned. Without notice, Oakmine had added their own exchange on the mining pool which had several amazing features such as automatically converting Bitcoin mining earnings into other cryptocurrencies and the ability to enter raffles with Oak Points, which were distributed to miner’s based on their hash rate.

Josh pulled out his phone and dialed up Alan. “Hey man, check out Oakmine, they added an exchange to the main site!” exclaimed Josh. Alan quickly pulled up the site and was amazed; he had already earned five Oak Points and could enter into one of many drawings for cool prizes. Josh and Alan were amazed at the new features and quickly tweeted it out. The hash rate of Oakmine was holding steadily at 37% nothing to worry about as long as the growth slowed down.

3:45 PM, November 11th 2014

Cody Dennis sat at his computer typing up Bitcoin news as he always did. Cody had been trying to get in contact with Hector Stephens to get an interview for an article, however, he was having a hard time getting a hold of him. This was not unexpected as the big purchase of four exchanges was coming up rapidly. Every major cryptocurrency news outlet had been covering the purchase. The four exchanges were owned by the same individual, and the websites were to be transferred to Oakmine instantly once the transaction was complete as the owner was receiving a bonus of 50 Bitcoin for the instant transfer. Hector Stephens had told the owner that he had big plans for the exchanges and couldn’t wait to integrate the Oak points features to them. Having 5 exchanges would make Oakmine a leader in both mining and exchanges.

Cody talked to a chat support member by the name of Stan. He had talked to several different chat support members on Oakmine trying to get in touch with Hector. Several times he had been told that Mr. Stephens would be given a note about the conversation, yet he had not heard back from him. Cody had been trying to get a hold of him since the launch of the company. Oakmine was making national headlines across the country from newspapers that normally didn’t concern themselves with Bitcoin. The start-up of such a large business and the immediate success they were having was astonishing. Cody had talked to the Director of Mining: Simon Barnes and Barnes had told Cody that Oakmine had already paid out over 300 Bitcoin in negative fees for the launch. Cody’s article was huge and brought it a massive surge of traffic to Cryptocoins News. His article had been referenced by CNN, Money magazine, and every other cryptocurrency news site in existence. Since his big break in journalism, Cody had been working harder than ever to stay on top of the events as they happened. If he could get an interview with Hector Stephens about Oakmine, it would be huge. Not even CNN had been able to get an interview, and if Cody could do it he would make it big time. This could be his big break where he could land a job in journalism at any paper in the country.

2:32 PM, November 14th 2014

The Big day was coming, in just three days Oakmine would become the largest Bitcoin company in existence. Cody had continued to contact Oakmine support but had not been able to get in touch with Hector Stephens. He had talked to what seemed like the entire tech support staff about getting in touch with Mr. Stephens but today he talked to someone new. “hello this is Sam from tech support, how may I help you?” asked a friendly woman over the phone. “Hello, my name is Cody Dennis, and I am a reporter at Cryptocoins News, I have been trying to get in touch with Hector Stephens for quite some time now,” said Cody. “I am afraid Mr. Stephens is in china at the moment sir,” said the woman politely. China? Cody had not heard anything about Hector Stephens travelling to China, and it was not on the news anywhere. “May I ask what his business there is?” Asked Cody without much hope. ” I am afraid we can not disclose that information” Said Sam. “All right, well thank you for your time” replied Cody. “Will there be anything else today sir?” she asked. “Hector Stephen’s post says that he is currently in Sweden, can you comment on that?” asked Cody. “I’m afraid that I can’t” Sam said in a worried voice. The line clicked in the familiar tone that meant the call had ended. He quickly pulled up his twitter, Cryptocoins News, and pulled out his notebook that he always kept by his desk.

Cody’s notebook was filled with notes that he used for articles. When doing research he would always hand write his notes as he could draw lines to create a flow chart and make utilizing the information that much easier. On twitter, Hector Stephens had made a post three hours earlier which said:

Even by private Jet, there was no way that Hector Stephens could have gotten from Sweden to China in under three hours. The flight was at least seven hours. Either the tech support member was wrong, or Stephens was lying. Cody had no way to confirm where Hector Stephens was, and he knew that another call to Oakmine’s tech support would be completely useless. Cody Decided to call Mr. Barnes as he was higher up Oakmine’s ladder. Simon Barnes had told Cody that Hector Stephens was in Sweden still. “If you look on twitter it appears he is enjoying himself in Sweden,” said Simon. “It isn’t uncommon for him not to come to the office one day, he has been very busy with the merger and has been doing a lot of his work from home,” said Simon over the phone. The two of them finished the phone call, but Cody was not satisfied. He decided to call tech support and ask to talk to Sam again. After reaching tech support, he talked to a tech support member by the name of Jessica. Jessica asked Cody for his name and email address. After providing it, he asked to speak to Sam from tech support. “I am afraid that Sam no longer works here,” said Jessica impartially. “May I ask why?” asked Cody a little bit shocked. “She decided the job wasn’t for her, is there anything I can help you with sir?” Asked Jessica. “It appears that she was dropped do to disclosing information she wasn’t supposed to. Can I speak to your manager?” asked cody. The line once again dropped. Oakmine was blatantly avoiding his questions. Something wasn’t right here; Cody would keep digging for information. Suddenly the brand new and highly reputable company appeared as a ticking time bomb of disaster. The Shadiness of the business was masked by a team of professional con artists. No, he couldn’t allow himself to make those assumptions. Cody knew it was no good without evidence to back it up. Perhaps Sam was just terrible at her job and decided that she didn’t like it, perhaps Sam had been terribly misinformed by a co-worker and Hector Stephens was still in Sweden. What business would he have in China anyways? The exchanges being purchased were not located in China. Cody would keep digging, he had to because he could be on to something big.

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[dropcap size=small]T[/dropcap]his concludes part two of this story, the story will be broken up to make reading easier as it is a long essay. Once again, the events, characters, and companies (aside from Cryptocoins News, CNN, Money Magazine, and UPS) are all fictitious. This series of articles is not written to slam Bitcoin, I as the author am fully invested in Bitcoin. The purpose of the article will become apparent once you as the reader have finished reading all three parts.

Featured image by Shutterstock.

This post was last modified on 08/06/2014 00:27

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Drew Cordell (@DrewjCordell) @DrewjCordell

Drew is an undergraduate student at the University of Texas at Dallas, majoring in Business. He is an active member of the Cryptocurrency community, and enjoys collecting, trading, and writing about various coins. Outside of the digital currency world, Drew tends to spend his time with friends, playing video games, or studying.

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