Connect with us

News

The relevance of mining cryptocurrency in 2019 and yield prospects

Published

on

The relevance of mining cryptocurrency in 2019 and profitability prospects

5 (100%) 1

The cryptocurrency market is one of the most discussed topics of recent years. Many investors are dreaming to make money on cryptocurrency, but does mining always bring the desired profit?

Every year, miners around the world are faced with the same question – is it profitable to mine this year, what are the prospects for this industry. In this article we will look at mining prospects in 2019.

What determines the profitability of mining cryptocurrency?

If you are new to cryptocurrency issues, then first you need to understand that mining means cryptocurrency mining. Through the use of computing power, the miners find new blocks in the network and receive a reward for this in the form of a certain amount of cryptocurrency.

Most likely you have already heard that mining is a costly business, so if your goal is to generate income, then the first thing you need to determine from which will depend the very income.

Mining profitability is influenced by 5 fundamental factors :

  1. Cryptocurrency rate . The pattern is simple – the higher the value of the coins, the higher the profitability of mining. But this is more relevant for those who mine in order to output cryptocurrency in the short term. If you are set to long-term mining, the fall in the course is not a reason for panic. All you need is to continue mining and do not rush to merge coins. If you focus on Bitcoin , then after reducing the price and period of instability, usually the rate returns to the previous indicator.
  2. The amount of remuneration . The reward for the found block is set individually for each cryptocurrency. On the one hand, this is a fixed value, and on the other hand, it tends to decrease continuously. Most cryptocurrencies use the so-called halving – this is a mechanism for reducing the miner remuneration rate by half. Usually halving is a planned event that the miners will know in advance. Thus, the last bitching of bitcoin was held in 2016, while the award for the found block was reduced from 25 BTC to 12.5 BTC. The next decrease is planned for 2020.
  3. Block generation time . The more blocks you can generate a network, the higher the income of miners. For example, in the Bitcoin network, blocks are generated on average every 10 minutes, which allows you to get about 144 blocks per day. For comparison, Ethereum allows you to generate 270 blocks per hour.
  4. Network complexity . This figure directly depends on the hashrate , that is, the total number of miners in the network. The more miner rivals have, the harder it is to find a block and, accordingly, less chance of getting a reward. In practice, this pattern looks like this: every 10 minutes, the Bitcoin network miners have the opportunity to extract 12.5 BTC, then this amount is distributed among all the miners of the network. The income of each individual miner will of course differ significantly if there are 100 miners or 50,000 miners active in the network.
  5. Power equipment . An important factor, but not fundamental. Yes, the power of the equipment provides you with competitiveness among the other miners of coins, but paying attention to the factors described above, you should understand that the presence of even the most powerful and modern equipment does not guarantee remuneration, but only increases the likelihood of effective mining. Moreover, taking into account periodic halvings, miners can receive a smaller reward using the same powers. In theory, in order to keep your share of income at the same level in the context of a constant increase in the number of miners, you need to regularly increase the number of used capacities. It is difficult, costly and unrealistic.

Thus, the profitability of mining depends not only on the used capacity, as many mistakenly believe, but on the totality of a number of fundamental factors and the global market situation. In this case, do not forget about the costs of mining, which will affect the level of your income. This will be discussed further.

The cost of mining Bitcoin

The main component of the cost of mining – the cost of electricity and the cost of equipment. In this case, the price of electricity often plays a crucial role in the profitability of mining in 2019. Energy costs account for about 85% of all mining costs. Knowing these nuances, mining companies try to locate their equipment in the countries with the cheapest electricity prices.

Not so long ago, Elite Fixtures company conducted a bitcoin mining cost analysis in different parts of the world. The basis for electricity prices in 114 countries and the technical characteristics of Antman S9, which is most often used for mining Bitcoin.

The study revealed that the most expensive mining in South Korea. Here, mining one Bitcoin coin will cost you $ 26,000. But the cheapest mining in Venezuela, where Bitcoin can be mined for only $ 531. It is also worth noting that according to the results of the study, in most of the countries analyzed, to mine bitcoin turned out to be inappropriate due to high electricity prices.

Much to our surprise, the main capacities of large mining companies are located not in Venezuela, but in China, where the cost per 1 kWh averages $ 0.03. Here are the largest pools AntPool , F2Pool and BTCC , which account for about 60% of the total computing power of the Bitcoin network.

The famous cryptanalyst Alex Kruger also published his version of the cost of mining Bitcoin . According to him, the average cost of mining Bitcoin in 2019 vary in the range of $ 3,550. He based his calculations on an average electricity price of $ 0.055 and an Antminer S9 price of $ 200. With the current rate of about $ 8,000, miners can earn from $ 3,000 for each mined coin, which is not so bad.

It is worth noting that the price of equipment is also changeable. Every time when the price of Bitcoin rises and miners are activated, the suppliers of mining devices do not miss their chance to earn extra money. In moments of hype, users are ready to pay any money for the equipment. So, in 2017, the price of Antminer S9 reached $ 5000 and above. Therefore, for the purchase of equipment it is also worth picking the right moment.

The expediency of mining can be calculated independently. To do this, there are many services that in just a few seconds will show you the mining profitability in 2019. To do this, you will need to enter several parameters (the price of Bitcoin, the cost of equipment, the price of electricity, hashrate, power consumption of equipment, etc.). Among the most popular services for calculating the profitability of mining should be noted Cryptocompare, BitcoinWisdom, My Crypto Buddy, Nicehash, WhatToMine, etc.

You should not lose heart if you see negative indicators when calculating profitability. As mentioned earlier, mining is increasingly difficult to make profitable, so sometimes it's easier to just buy coins with the same money, but in the long run it is more profitable to invest in cloud mining services .

Statistics 2018

Before making a decision on any investments, and mining is in any case investments, among other things, it is necessary to take into account the experience of previous periods. This data will always help you to see the pitfalls of mining in 2019 and prepare you for possible unexpected turns.

It should be noted that the profitability of miners in 2018 was a failure as never before. Despite the positive trend of increasing profitability, the collapse of the course and the increase in electricity prices significantly affected the profitability of mining.

According to the research company Diar , which specializes in cryptocurrency market research, Bitcoin miner revenues in 2018 were $ 4.7 billion. This is $ 1.4 billion more than in 2017.

But despite such a beautiful picture, the net profit of miners during 2018 for the first time in all years approached the zero mark. According to Diar, almost all of the miner's profits went to cost.

Among other things, the rate of Bitcoin fell by more than 70%, which also put tremendous pressure on the miners. In such conditions, many small pools for mining were forced to cease their activities and leave the market. In view of the decrease in profitability, the major players began to reduce their capacities in order to at least somehow hold above the break-even point.

The collapse of the market also did not bypass the manufacturers of equipment for mining. One of the leaders of the market, the company Bitmain, suffered a difficult last year. At first they had to postpone their plans for the initial public offering on the Hong Kong Stock Exchange. Thus, Bitmain deprived itself of the expected profit of about $ 3 billion, which is expected to attract through the IPO .

In addition, Bitmain, postponed the opening of a data center in Texas, which involved the creation of more than 400 jobs. And closer to the end of the year, due to the fall of the market, company representatives reported a forced reduction in staff. Optimization touched all areas of Bitmain's business, and this is not only the production of mining equipment, but also the management of Antpool's largest Bitcoin pool.

The largest manufacturer of video cards and chips for miners, Nvidia, also announced a decrease in demand for graphics processors from the miners. As a result, by reducing revenues, the company's shares by the end of the year fell by about 19%.

Thus, the total drop in profit of miners since the beginning of 2018 was 83%. Such a situation caused a great panic in the crypto community and made me seriously think that the mining era is coming to its logical conclusion.

Mining prospects in 2019

In 2019, the situation on the crypto market drastically changed – the Bitcoin rate has more than doubled since the beginning of the year, and the demand for miners has returned to previous levels.

At the same time, the overall profitability of mining has also grown since the beginning of the year and reached a semi-annual maximum in April.

According to the analytical portal Messari.io , this year the commission income of miners Bitcoin is 8 times higher than that of miners of other cryptocurrencies. On May 10, in just one day, Bitcoin miners earned more than $ 580,000, while Ethereum miners earned only $ 68,000, and Litecoin earned $ 1,100.

In the opinion of Nikita Korovin, the head of the MINE Lab service center, bitcoin mining again returned its former glory and became a profitable investment. Buying equipment for mining has acquired a new meaning, as in the current conditions it will pay off in a matter of months. Although, as you remember, last year their payback was not at all comforting.

Now the payback of the Antminer S9 will be about 5 months, and if you use the Canaan Avalon 851, then the break-even point will be reached in about 7 months. The expert also advised to use the used models S9i and S9j, which will require less depreciation costs and will break less in comparison with the base model.

The founder of the Bitcluster mining hotel, Sergey Arestov, advises buying a new generation of devices on 7-nm chips, which are capable of delivering more hashrate at much lower power costs. According to him, in the next few years, such miners will be the most relevant.

He also noted that the net profit from mining on Antminer S9 is now more than $ 90 per month. And this figure may be higher if you have time to purchase equipment during the crisis period for the market. For example, at the end of 2018, when the mining profitability set antirecords, the used S9 could be purchased no more than $ 200.

In addition, in 2019 it continues to be in trend mining with minimal investment. Due to market volatility, many investors are afraid to invest in mining large sums. Due to this, cloud mining was developed (the best option for mining cryptocurrency for 2019). This method of mining coins is suitable for those who are not ready to invest large sums in the purchase of equipment, bother with its settings and incur additional costs associated with maintenance, rental of premises and so on.

In addition, as an alternative to traditional mining, mobile mining was developed.   This innovation has recently entered the market. Mobile mining implies cryptocurrency mining through a mobile device using applications. Of course, for mining Bitcoin, this development will not work, but practicing on other altcoins will be very useful. For mining, you only need to download the application in accordance with the OS of your smartphone and start earning.

In general, the main cryptocurrency mining foresees a bright future for 2019, but there are a number of factors that can affect the profitability of mining both positively and negatively. If you are going to seriously engage in mining, you just have to know about them:

  • Bitching bitcoin in 2020   According to   Bitcoinist editions, previous cryptocurrency halvings have always caused sharp exchange rate fluctuations. And as you remember, the increase in the price of cryptocurrencies usually has a positive effect on the profitability of mining. The closer the next halving, the stronger the hopes of the holders. Although it is not known until today, it is a coincidence or a pattern, but the main pampas of cryptocurrency just accounted for the period after the halving. Recall that in 2020 the reward for the extracted bitcoin block will be reduced from 12.5 BTC to 6.25 BTC.
  • Ban mining in China . As mentioned earlier, most of the mining facilities are located in China, despite the fact that trade in cryptocurrency in the country is prohibited. Back in early 2018, the Chinese authorities expressed their concern that the activities of miners pollute the environment and contradict tax laws. The ban may be imposed in accordance with the instructions of the National Development and Reform Commission (NDRC) of the Chinese government. The draft law is still under discussion, but has already managed to cause a considerable resonance. On the one hand, the introduction of the ban will open new opportunities for miners from other countries – India, Iceland and other countries with cheap electricity will be able to take advantage of the situation and take a leading position in mining. At the same time, on the other hand, the withdrawal from the market of a larger share of capacity may adversely affect the complexity of the Bitcoin network and, therefore, the cryptocurrency rate. The complexity of the network will decrease, and after it the course of Bitcoin. So far this is only a guess, so you need to independently monitor market news and the complexity of mining in 2019.

Despite such a challenging year 2018, mining in 2019 continues to be relevant. New miner models appear on the market, investors' opportunities are expanding thanks to companies offering cloud mining , due to which mining cryptocurrency covers all levels of contributors and continues to evolve.

In addition, each investor must understand that investment is always a risk. The cryptocurrency industry continues to be an unpredictable industry, but at the same time very profitable.

Publication date 25.06.2019
Share this material on social networks and leave your opinion in the comments below.


News

Huobi Token overview: HT cryptocurrency features, where to buy and how to store tokens?

Published

on

Recently, the issue of own coins has become a very fashionable trend among cryptocurrency exchange exchanges . The exchanges use this method in order to expand the user base and attract more investments.

One of the largest marketplaces in the cryptocurrency market, the Huobi exchange , was no exception and also actively promotes its internal coin Huobi Token (HT). What advantages are the owners of cryptocurrency Huobi Token, we consider later in the article.

What is the cryptocurrency Huobi Token? History of creation

Prerequisites for the creation of cryptocurrency Huobi Token served as a ban on cryptoindustry in China in 2017. It was then that the management of the Huobi corporation had to take urgent measures to rehabilitate the business.

Due to the introduction of regulatory changes, the largest cryptocurrency exchange at that time, Huobi, whose main office was in Beijing, was discontinued. But after only a few months, the Huobi team moved its business to Singapore and launched a new project – Huobi Pro.

If the initial version of the Huobi Exchange was mostly aimed at users of China, then Huobi Pro headed for the international market. Huobi Pro uses the over-the-counter trading model (OTC) and has concentrated in itself all the necessary options for global traders. Despite this, the new project of Huobi Corporation did not show the volumes that the management expected. Trading volumes on Huobi Pro accounted for only 4-5% of the volume of the exchange before closing the business in China.

The “lifeline” in this situation was the decision of the leadership to launch its own cryptocurrency . This initiative was not aimed at creating a new asset for investment, but for the internal needs of the exchange — attracting new traders, increasing the loyalty of existing users, and also returning the exchange's leading positions in the ratings .

The launch of a new cryptocurrency did not follow the standard ICO scheme, which most projects use for the initial launch of coins. At the beginning of 2018, the exchange began to spread the internal cryptocurrency Huobi Token among the VIP users of the exchange. Traders were offered to buy a premium package of services that included a certain number of HT tokens. Becoming an HT holder, traders could use coins to pay commissions and other internal payments. This method of distributing coins was called the initial exchange offer (IEO).

In the first 2 weeks after launch, 60% of the total supply of coins, which amounted to 300 million tokens, shattered among the users of the exchange. The remaining 40% (200 million coins) were reserved by the company for life support of the platform.

The Huobi team also announced the parallel creation of the Huobi Investor Protection Fund (HIPF). In order to contain token inflation, Huobi Pro conducts quarterly repurchase of coins using 20% of its net profit. All collected funds are accumulated on a separate Ethereum wallet and are stored to compensate for any losses that may arise from users in the process of working with the platform.

To ensure the transparency of its activities, the company has opened access to viewing the balance of the HIPF wallet for everyone. Thus, Huobi tried to suppress the cryptocurrency volatility and create the most stable token.

The release of its own cryptocurrency helped to increase the capitalization of the platform and increase the level of customer retention by providing them with exclusive working conditions on the exchange. According to the company's management, the internal token of the exchange was to become a single link between the users of the exchange branches in South Korea, the USA, Australia, Canada and other countries.

The initiatives undertaken have really borne fruit and now the Huobi Exchange is ranked second in the rating of cryptocurrency exchanges according to CoinMarketCap.

By the way, for Huobi there is a large team of very competent developers and marketing specialists. Led by Leon Lee, a former Oracle programmer, the Huobi team has raised the project for the second time and raised it to the top.

Key features of HT tokens

The cryptocurrency Huobi Token is released on the Ethereum blockchain and complies with the ERC-20 standard. To a greater extent, the internal cryptocurrency of the exchange is a loyalty program for traders, so consider what advantages its holders receive.

Reduced transaction fees

The exchange system provides for discounts, which apply exclusively to customers with VIP-status. VIP client status is offered to Exchange users to purchase for the Huobi Token cryptocurrency. The discount depends on the level of your VIP-package, while the owner of the package with the highest VIP-level receives a 50% discount on all transactions that are made during the period of the service package.

The service package has no expiration date. All privileges you receive as long as you pay for a package subscription. This advantage is widely used by large investors and traders with large trading volumes, who through the use of VIP-status can save huge amounts of money on commissions.

Convenient exchange tool

HT makes a trading pair with the most popular cryptocurrencies, so this token is very convenient to use as a medium of exchange for the main cryptocurrencies. The most popular among traders are HT trading pairs with cryptocurrency Tether, Bitcoin and Ethereum.

Promotion of new tokens

HT owners always receive bonus coins from each listing of new cryptoactive assets on Huobi Pro.

Investor Protection Program

Due to the existence of the HIPF fund, all HT holders are insured against financial losses related to the instability of the cryptocurrency market, fraudulent activities or other losses related to the activities of the exchange.

Decision making

HT owners have a preferential right to participate in various surveys and polls related to the life and development of the Huobi Pro exchange. Voting may relate to the inclusion of a new cryptocurrency in the listing of the exchange or other issues related to the development of the ecosystem of the project.

Where to buy and how to store Huobi Token?

The easiest way to get HT coins is to buy them on the Huobi native exchange. You can buy Huobi Token for BTC, BTH, ETH, ETC, LTC and USDT. In addition, the coins are presented on the trading platforms of HitBTC, Bibox, BitMax, Gate.io, Yobit, LBank, etc.

For storage of HT, Huobi Corporation offers users the own development of Huobi Wallet. This is a multi-currency cryptocell , which can be used to store more than 1000 digital coins, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash and other cryptocurrencies.

Huobi Wallet has mobile versions for Android and IOS devices. This is a convenient and secure wallet, where users have full control over their assets through personal security key management.

The application has a simple and stylish design. At the same time, users can manage their own account by adding new digital assets as needed.

In addition to a separate application, Huobi Wallet, you can also use the coin storage function on the Huobi exchange. The exchange offers “cold” wallets and protects the assets of its users with the help of two-factor authentication and an anti-DDoS complex.

From third-party applications for storing HT coins, you can use any wallet that supports ERC20 tokens. Among them are Jaxx, Exodus, MetaMask and others. And, of course, the well-known hardware wallets Ledger and Trezor can always help.

It is important to note that by choosing third-party wallets for storing their coins, users are automatically deprived of the right to receive privileges from using the Huobi Token cryptocurrency. Therefore, it is still preferable to use official Huobi applications for storing coins.

Course and Capitalization HT Token

Cryptocurrency Huobi Token started trading on exchanges with a rate of $ 1.49 at the beginning of February 2018. At first, the price of Huobi Token kept at about the same level and did not exceed $ 2.

The most noticeable jump in the HT price was at the beginning of the summer of 2018. After just 4 months, the level of popularity of the coins took off, which in turn affected the rate. At the beginning of June 2018, the HT rate reached its maximum and amounted to $ 6.10 for 1 token.

The dynamics of the course Huobi Token :

As of July 2019, the price of Huobi Token cryptocurrency is $ 4.18, and the project's market capitalization exceeds $ 208 million. Huobi Token's cryptocurrency is ranked 36th in the rating of cryptocurrency by the level of capitalization according to Coinmarketcap.com . At the same time, the average daily trading volume is close to $ 110 million, and this is still a pretty good indicator for cryptocurrency, which is just over a year on the market.

As can be seen from the graph above, at the current moment, the HT rate starts to rise slowly, so from the point of view of investing, the token becomes relevant again. The recent launch of a new product from the developers of Huobi Corporation – a platform for IEO called Huobi Prime, as well as parallel tokenale coins of the Top Network (TOP) – has sparked interest in cryptocurrency.

Despite the fact that the main purpose of HT – the use of traders for intramarket payments, the investment attractiveness of the cryptocurrency Huobi Token is also at a sufficient level. Most often, coins become an object for short-term investments, in particular, the activity of investors increases during the periods before the redemption of coins for the HIPF Fund.

Huobi Corporation does not stand still and regularly launches new products for its customers, thereby keeping users' interest in HT coins. In fact, HT is the embodiment of the success of the exchange, so while we are seeing a growth in capitalization and the development of Huobi, HT will also grow steadily.

Publication date 07/20/2019
Share this material on social networks and leave your opinion in the comments below.


Continue Reading

News

How is the Bitcoin rate and capitalization associated with Tether (USDT) steblcoin emissions?

Published

on

Rumors about the relationship between the price of Bitcoin and Tether (USDT) have been around for a long time, but how true they are, you can only speculate. The total number of tokens in Tether’s turnover at the moment is about $ 200 million, in preparation for reaching $ 4 billion.

When Tether’s market capitalization reached a new high of $ 4 billion, Bitcoin stopped falling and began to grow again. Conjuncture? Maybe, maybe not.

However, it is obvious that Tether released 50 million just at the moment when Bitcoin finished making its way out of the rising wedge model.

Guess what happened next? Hint: Bitcoin unfolds and adds 12% per hour.

Bitcoin has always grown in value with the new issue of USDT. On July 8, the price of BTC increased significantly after 100 million tokens were issued. The July 9 reversal was eliminated when Tether printed another 100 million USDT.

The same effect was observed on July 14th. However, an even more interesting observation could be made when Tether “mistakenly” released 5 billion USDT.

On this occasion, Bitfinex technical director Paolo Ardoino tweeted:

“When preparing a swap from Omni to Tron, there was a problem with the decimal numbers of the token. Token burning operations can be viewed below. ”

The resulting 5 billion USDT errors were burned in two stages: first 4.5 billion and another 500 million. Poloniex confirmed this information.

Nevertheless, the effect of this event affected the price of Bitcoin, since in less than 3 hours it fell by 8%, and over the next day it continued to drop by an additional 11%, which contributed to a decrease in the BTC price from $ 10,600 to $ 9 100.

This finally brings us to yesterday's 50 million USDT, as a result of the emission of which the price of bitcoin made a 180 ° turn and began to rise.

In addition, Tether is the main platform for bitcoins and other major cryptocurrencies . As can be seen from the graph below, approximately 3.56 billion of all USDT are directly sent to bitcoins, which is more than enough to control the price of the king of cryptocurrencies.

Thus, the observation of the influence of Tether on Bitcoin from July 8 to July 19 showed a direct relationship.

Publication date 07/20/2019
Share this material on social networks and leave your opinion in the comments below.


Continue Reading

News

Apple co-founder Steve Wozniak invested in the Maltese blockchain company

Stephen Wozniak acted as an investor in the Maltese blockchain-company EFFORCE, which is creating solutions aimed at the efficient use of energy resources. At the same time, he joined the EFFORCE co-founders, reports Malta Independent. Wozniak made a statement at the Delta Summit conference, which will be held in Malta for the second time in October. According to the source […]

Published

on

Stephen Wozniak acted as an investor in the Maltese blockchain-company EFFORCE, which is creating solutions aimed at the efficient use of energy resources. At the same time, he joined the EFFORCE co-founders, reports Malta Independent .

Wozniak made a statement at the Delta Summit conference, which will be held in Malta for the second time in October.

According to the entrepreneur who stood at the origins of Apple, energy efficiency has always been of great importance to him and that the blockchain will help reduce the consumption of energy resources without forcing people to abandon their usual ways of life.

Speaking about the EFFORCE company itself, Wozniak said that it offers a unique business model, part of which is an investment methodology offering new opportunities for entrepreneurs.

He also added that he had long wanted to invest in Malta, noting a positive environment for the development of new technologies, which was created by local authorities.

As stated on LinkedIn's EFFORCE page, the company offers a blockchain platform for investment in energy-efficient solutions, stating its intention to become “the world's first and foremost platform for tokenized energy-saving sources”.

Recall that last year it was reported that Steve Wozniak was related to the investment platform EQUI Capital, founded by the Scottish baroness Michelle Mont and businessman Doug Barrowmen. The company was going to raise $ 80 million through ICO, but failed to realize its plans.

Subscribe to BlockchainJournal news on Facebook !

<< aside id = "unisender_subscribe_form-10" class = "widget unisender_form">

BlockchainJournal.news

BlockchainJournal.news

Continue Reading
Advertisement

Name Price24H (%)
Bitcoin (BTC)
$10,654.00
0.93%
Ethereum (ETH)
$225.65
-0.50%
XRP (XRP)
$0.329888
0.43%
Bitcoin Cash (BCH)
$324.44
3.36%
EOS (EOS)
$4.26
0.03%
Stellar (XLM)
$0.092576
0.08%
Litecoin (LTC)
$98.80
-0.73%
Cardano (ADA)
$0.062426
0.72%
Tether (USDT)
$1.00
-0.25%
Monero (XMR)
$84.86
2.75%
Advertisement

Trending

Copyright © 2018 blockchainjournal.news