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The relevance of mining cryptocurrency in 2019 and yield prospects

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The relevance of mining cryptocurrency in 2019 and profitability prospects

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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
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TRON (TRX) cryptocurrency review – forecasts and prospects, current rate

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Cryptocurrency TRON (TRX) is a decentralized protocol based on blockchain technology designed to create a global entertainment network with free content.

In simple terms, TRON is a service similar to all well-known social networks and platforms where users have the opportunity to publish, view and use any available content for entertainment, for example, online games.

The TRON project is currently developing the idea of joint consumption, which is that on a single global platform, users will be able to share entertainment content.

Official TRON cryptocurrency website: https://tron.network

Analysts call this platform the broadcast of the modern entertainment industry. In general, the functioning of this system is as follows:

  1. The author or copyright holder publishes the result of his intellectual work on the official website. You can download anything from literary novels to an author’s song or art on a specific topic. Next, the participant uploads information about how his creation can be used (as an accompaniment to another work or as an independent product). Nearby, he indicates the price of his work.
  2. Another user who is interested in this work acquires it for the local currency Tron (TRX). However, users should remember that it is impossible to purchase this or that product on this resource using fiat money (dollar, euro, rubles, etc.). The system has its own cryptocurrency , which must be purchased at exchangers or exchanges in order to complete a transaction.
  3. As soon as the interested user has acquired the result of intellectual work, the amount indicated by him is transferred to the author’s account. The author can use the tokens at his discretion – purchase a work from another author, simply save money in his account, or exchange it for another cryptocurrency or fiat funds.

About what TRX is, initially interested in all users who are just starting their activities on the site. This resource uses several types of tokens for different purposes:

  • Tron (TRX) . This is the main currency of the system. For this currency you can buy or sell the results of your intellectual work. If necessary, the owner of a certain amount in this currency can exchange it for fiat money or other cryptocurrency.
  • Tron Power It is impossible to purchase or exchange other money for a given currency. The only way to get them is to secure the TRX currency on the site platform. In this case, they are converted to TR. The presence of such tokens gives advantages to their owner. For example, the holder of a TR has the right to vote for one or another change in the system, or to oppose them.
  • TRON 20 . Coins owned by developers. With the help of them, they create new full-fledged blockchains with new tokens.

The TRON cryptocurrency issue is limited, 100 billion coins have been issued at present. However, it is worth considering another point – starting in 2018, tokens begin to be burned (they are meant to be forwarded to an address known only to developers). The last major burn was in June last year, but how often such procedures will be carried out is currently unknown.

project team

The team of this project has on its side professionals working in various fields. The founder of the platform and the creator of TRX Coin is Justin Sun , who also created a social network with an audience of 10 million people. In 2017, Forbes magazine included Justin on his list as one of the most successful entrepreneurs, who was not yet 30 years old.

The technical director of the project is Lucien Chen , who has extensive experience in working for large Internet companies. He is perfectly versed in blockchains and the principles of functioning of cryptocurrencies.

Deus Yu , responsible for quality control, has been working in the computer games industry for a long time. According to Justin Sun, the experience of Deus will come in handy a little later, when the platform gains even greater popularity.

Charles Zhang , an adviser who is well versed in a business not related to cryptocurrencies and blockchains. He has repeatedly lectured on the basics of entrepreneurship, with which he was invited to many universities. Charles made a huge contribution to the promotion of the platform at the initial stage.

Blockchain Browser

Block Explorer is a search tool that allows you to view the addresses of wallets involved in the system, blocks, as well as data of transactions completed or committed. It can be compared with standard browsers, with the help of which an ordinary user searches for the information he needs on the Internet.

For each cryptocurrency, a personal Block Explorer is created that shows the network status for a given period of time. For the Tron cryptocurrency, such a Block Explorer is called TRONSCAN , where users can get all the information they need ( https://tronscan.org ).

How to mine Tron?

The developers of the platform did not provide for mining the Tron cryptocurrency , since they had already created all the necessary coins. In addition, the creators talked about the scheme according to which their cryptocurrency will work:

  1. 40% of the total number of coins will go on sale to enable the project to develop further.
  2. 15% of the remaining amount is allocated for acquisition by investors. Investors are players who, after the main sale of coins, will be ready to purchase tokens further.
  3. The remaining funds are “frozen” and remain in the accounts of the company owners.

Justin Sun explained that perhaps mining will be provided in the future when the company gains the necessary popularity.

TRX Token Wallets

The user can choose one of two options for storing Tron coins (TRX):

  • Storage of tokens on the exchange;
  • Creating your own crypto wallet.

With proper use, wallets provide a higher level of security. All types of wallets for Tron (TRX) are described in detail in this review .

Buying and selling TRX coins

You can buy a Tron on popular crypto exchanges , we recommend that you use the first 15 exchanges, and do not forget to install additional account protection. On the selected exchange, you must go through the registration procedure, after which you will be given a personal wallet, as well as its address.

The most popular and safe exchangers where you can buy and sell Tron:

The exchange rate of the Tron cryptocurrency against the ruble as of October 28, 2019 is 1.29 rubles per 1 coin. For a detailed analysis of the course and chart of coins, we recommend that you look at the Coinmarketcap website.

Development Perspectives and Company Roadmap

A distinctive feature of the project is its roadmap, which is scheduled until 2027. It is divided into several stages:

  1. Exodus It lasts from 2017 to 2018 and is considered officially completed. During this period, information about the project was actively disseminated, as well as developers were engaged in improving tools for using the site.
  2. Odyssey . Accounted for 2019-2020. During this time, developers will pay special attention to the economic development of the platform.
  3. Great Voyage . Captures July 2020 and ends in July 2021. Implementation of a personal ICO system, and third-party developers will have the opportunity to launch their own ICOs.
  4. Apollo It lasts from March 2021 to March 2023. Creating a decentralized exchange platform.
  5. Star Trek . It begins in April 2023 and ends in September 2025. Creation of a decentralized platform for the development of any computer games.
  6. Eternity . It starts in September 2025 and ends in September 2027. Platform users will have the opportunity to create their own playgrounds.

The developers mentioned that if these plans are implemented, a new roadmap will be created in the future, which will begin in 2028.

When analyzing the active nodes of the Tron cryptocurrency, you can notice the scale of the development of the project, where the majority of servers are located in the USA, China and Germany.

The forecast for Tron cryptocurrency from leading analysts suggests that, taking into account the current features of the crypto asset, in the future the project can absorb the entertainment market. And this means that in 2020 the value of one coin is able to stand on one level with the dollar.

Main competitors Tron

The project has two main competitors – Qtum and Ethereum . Each competing company has its own advantages, for example, the first has a more advanced platform in terms of technology, and the second wins due to smart contracts and fame.

Analysts are confident that the Tron platform will still have to fight for its users, since the developers are aimed at a specific audience. However, the Throne does not have special advantages that would distinguish the project from its competitors, which could become a serious problem in the future.

Conclusion

Tronix cryptocurrency has good prospects for further development, since the project itself is one of the most ambitious among others. However, at present it is not in demand. Investing in such a project will bring quite large risks, however, long-term investments can bring the investor good profit.

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The largest exchange Binance has the opportunity to deposit / withdraw deposits in rubles

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The Binance cryptocurrency exchange this Wednesday activated the possibility of making deposits in Russian rubles.

According to the instructions provided on the website, deposit / withdrawal of funds is carried out through the AdvCash payment system , including using bank cards. The commission for the deposit in this case is 3%, for the withdrawal – 2.5% plus 50 rubles.

To deposit / withdraw assets in rubles, you need to go to the “Buy cryptocurrencies” tab in the upper control panel or select the “RUB” currency in the user's wallet, then indicate the desired direction of payment and other necessary data.

Trading pairs for exchanging the ruble for cryptocurrencies on the Binance platform have not yet been presented.

Earlier today, CoinDesk published excerpts from a conversation with Binance CEO Changpen Zhao during his visit to Moscow last week.

“We are always looking for partners in any community, especially in Russia. Russia is a key market for us, it is one of the most active markets in the global blockchain space, ” he said then.

Zhao also confirmed that Russia is included in the Venus project, in which Binance intends to launch several regional stablecoins.

“We are working with potential issuers of stablecoin tied to fiat currency. We do this in all jurisdictions, in Russia in particular, we are looking for partners, ” he added.

Last week, Binance listed its first cryptocurrency pairs on its main platform, starting with Nigerian naira. The exchange also supports fiat trading at selected sites in Uganda, Singapore, the United States and Jersey.

Publication date 10/30/2019
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Technical analysis: the cryptocurrency market is ready for a new growth wave

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RoboForex lead analyst Dmitry Gurkovsky talks about further possible scenarios of the price movement of bitcoin and several popular altcoins .

Buyers managed to show a good bounce up. At the moment, assets such as Bitcoin and Bitcoin Cash look very interesting in the context of continued growth. Moreover, if the BCH / USD chart shows the formation of a reversal pattern of the inverted “Head and Shoulders” in favor of growth, then BTC is just getting ready to leave the channel and continue a confident upward movement.

Unfortunately, the assets of Ethereum, Litecoin and EOS are still under pressure. There are several signals from daily charts in favor of moving down. However, if the bulls manage to break through the next resistance levels, then these assets will be ready to move to the phase of sustainable growth.

In general, the cryptocurrency market looks ready for the start of a new wave of recovery. The bulls can only hold the current levels and rise a little higher to deprive the bears of all chances to continue the downward correction.

Bitcoin (BTC)

Quotes showed an aggressive rebound from the support level. However, the price tested resistance in the form of a downtrend near the $ 9800 area. To continue the rise by the buyer, it is important to “push” prices even higher.

A good signal in favor of a likely continuation of growth is the breakdown of a downward trend line on the RSI indicator. In most cases, a return to the broken line occurs, after which we should expect continued growth. As the main trading idea, you can take a slight correction to the level of $ 7700, after which you can talk about a rebound and upward movement.

Cancellation of this option will be a fall in the quotes of the digital asset below the level of $ 6875, which will indicate a breakdown of the lower boundary of the channel and continued decline.

On the 4-hour chart, cryptocurrency quotes were able to leave the limits of the short-term downward channel. Such a signal is the first sign of a potential reversal of the current downward correction. However, confirmation of the completion of the fall will be a strong growth with consolidation above the level of $ 10,995, which will indicate a way out of the downward channel. In this case, the target of the movement will be the area of $ 12,405.

The values of the RSI indicator again pushed off the resistance level, so we should expect a decrease and a test of the broken channel boundary. After this movement, we can talk about the beginning of growth towards the goal at the level of $ 10,995.

Ethereum (ETH)

Ethereum buyers also managed to keep quotes in the support area, which is located at $ 147. At the moment, the price has once again returned to the area between the moving averages, which may provoke an attempt to further decline.

In favor of this option is a rebound from the downward resistance line on the RSI indicator. As the main idea, we should expect a rebound from the lower border of the rising channel and the continuation of the fall to the first target at $ 147. Its breakdown will open the way for the movement of quotations to the level of $ 100. Cancellation of the negative option will be a breakdown of the Moving Averages and the consolidation of ETH / USD above the level of $ 239. In this case, we can talk about continuing the rise to the goal at the level of $ 280.

On a 4-hour chart, quotes are clamped in a downward channel. The values of the RSI indicator are testing the resistance line again, so we can expect a rebound and fall in the quotes of the digital asset to the level of $ 150.

In favor of this option, a test of the upper boundary of the downward channel will also come forward. Cancellation of the proposed forecast will be a breakdown of the resistance level and consolidation above $ 202, which will indicate the exit of quotes beyond the rising channel. In this case, the target of the rise will be the level of $ 239.

Attention!

Forecasts of financial markets are the private opinion of their authors. Current analysis is not a guide to trade. RoboForex is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.

Publication date 10/30/2019
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Name Price24H (%)
Bitcoin (BTC)
$8,632.26
-1.39%
Ethereum (ETH)
$185.44
-0.51%
XRP (XRP)
$0.266078
-2.64%
Bitcoin Cash (BCH)
$276.03
-3.95%
EOS (EOS)
$3.41
-1.33%
Stellar (XLM)
$0.073297
-4.51%
Litecoin (LTC)
$58.93
-3.70%
Cardano (ADA)
$0.042366
-2.00%
Tether (USDT)
$1.00
-0.06%
Monero (XMR)
$64.28
1.14%
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