Mining of the Most Promising Altcoin: What Do You Need to Know About Mining Ethereum?

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The Ethereum project with its technology of “smart contracts” opened up a completely different path for the cryptocurrency industry. The coin quickly occupied the second position in the global rating of Coinmarketcap, so many miners switched from Bitcoin to Ethereum. In this article we will explain how profitable Ethereum mining is, what it takes to start it and how promising the coin is.

Contents:
(please, click the topic to scroll down to it)

  1. What do you need to start mining Ethereum?
  2. Cloud Ethereum mining
  3. Forecasts for Ethereum
  4. Conclusion

1. What do you need to start mining Ethereum?

Let’s go over the list of necessary things that are necessary for the miner:

– a powerful video card, but the optimal option will be 4-6 pieces within a single farm;

– a PC or a farm, which already has Windows x64 installed (it is very important that the 64-bit version is installed);

– a monitor or its emulator;

– uninterrupted access to the Internet (not necessarily high-speed, but preferably wired, not WiFi);

– a mining pool, as solo mining is a rather complicated process that requires very powerful equipment;

– a wallet that supports Ethereum.

2. Cloud Ethereum mining

If you are too lazy to get into the technical nuances of mining farms or pay a good commission to people who are engaged in their assembly, then there is a simpler and uncomplicated way for you to mine Ethereum. Cloud mining does not require any extra time from you. Specialized companies that own entire data centers will gladly sell (or lease) you their own computing power. How does it work? You just pay for a certain amount of a hashrate and look at the precious coins that appear on your account.

If we talk about the financial component of the issue, everything is not so unambiguous. On the one hand, buying physical mining equipment for the same money, you will get more power and will be able to get more coins. On the other hand, farms can break down sometimes, they will have to be repaired and serviced. And if you decide to supply a large amount of equipment, you will still need to take care of the electrical wiring and the ventilation system of the room. With cloud-based mining, all these related costs are incurred by the data center.

It would seem that this is an ideal investment solution, but there are pitfalls as well. Firstly, it is rather difficult to find a worthy company that can be trusted. Secondly, long-term earnings will be lower than in physical mining.

3. Forecasts for Ethereum

You need to evaluate the prospects for the most large-scale decentralized platform for creating blockchain-based applications should not be done from the point of view of standard criteria for cryptocurrencies, such as: transaction speed and commission size. The future fate of Ethereum directly depends on the development speed of competitive projects (Cardano, Tezos, etc.)

Ethereum is currently the most demanded coin. This is caused by the ICO boom, more than 95% of which are conducted on the Ethereum platform. Competitors are still very far from the stability that is provided by the “baby” of Vitalik Buterin.

4. Conclusion

Ethereum is currently the most promising altcoin for mining. You can start doing it even with a small farm at home. If you do not want to bother with the installation and maintenance of your own equipment, you can do cloud mining.

Mining such a promising coin as Ethereum should be seen as a long-term investment, since the project has fundamental reasons for growth in the coming years. Therefore, we would not recommend selling mined coins here and now

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Bitmain Closed Its Branch In Israel Due To Crypto Market Situation

Chinese mining giant, Bitmain, has closed its branch Bitmaintech Israel in Ra’anana. It was set up two years ago as a company which specialized in developing blockchain technology, AI technology and controlled one of the mining pools Connect BTC in Israel.

The branch was headed by Gadi Glikberg, who held the title of VP International Sales and Marketing. He and his 23 employees will be laid off.  The reason of closing the branch is that Bitcoin trading price fell down by more than 80% since its all-time high, while Ripple’s XRP and Ethereum decreased by more than 90% since the peak of their prices.

Glikberg commented on the situation: “The crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation.”

We remind you:

Is Bitmain Really Dying, or How Much Money Was Lost in 2018?

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Andreas Antonopoulos Does Not Think Bitcoin Is in a “Death Spiral”

With the current downtrend of Bitcoin and the crypto market in general, a lot of crypto experts and enthusiasts do not see any bright future for #1 digital coin. The infamous prediction of John McAfee now seems even more far-fetched than before.

However, some people still have faith in BTC. A famous author of books about cryptocurrency and blockchain Andreas Antonopoulos made a video where he explained what a death spiral is and why it does not relate to Bitcoin so far.

According to Antonopoulos, a death spiral arises when the hashrate of the network drops.

Since it is directly connected with the mining complexity, the complexity also reduces together with profitability, causing miners to leave.

However, the author believes this is not the case with Bitcoin, since BTC miners do not react to such price jumps immediately. Their plans are usually calculated for the long-terms results. Only if Bitcoin keep dropping for a significant period of time, the danger of a death spiral may appear.

Part of the reason that’s unlikely to happen is that miners have a much more long-term perspective, meaning that they have existing investments in equipment and they usually purchase electricity on long-term plans, they don’t pay it by the week,” says Antonopoulos.

Hopefully, the crypto author is right, because if miners start leaving the ecosystem of Bitcoin, the coin is doomed.

We remind you:

Books About Bitcoin: Top Editions by Andreas Antonopoulos

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What is Common Between Ripple Technology and XRP Token?

In this article, we will focus on the project, which has recently taken the second place in the cryptocurrency rating. Today we will talk about how XRP token is connected with the famous Ripple technology, which should make a revolution in banking sector in the future.

1. Briefly about Ripple cryptocurrency

The Ripple project is in no way just another copy or an improved Bitcoin`s version. The only thing that unites these two coins is the blockchain technology. Let’s clearly define what the Ripple is:

  • There is a system of gateways at the heart of the Ripple network, the performance of which is provided by hundreds of servers. Ripple works through distributed registry technology, but its architecture is completely different from the standard blockchain. The project does not have decentralization, since only those servers that have been approved by the company, are involved in transaction validation.
  • The main task of the project is to ensure a free and fast exchange of assets with minimum fees (0.00001 XRP).
  • The target audience of the project is banking institutions, which can save about $3 for each transaction with the help of Ripple technology. If we consider, that large banks spend millions of transfers per year, this leads to significant savings.

2. What positions does Ripple take now?

In mid-November 2018, the entire cryptocurrency market collapsed sharply. Many coins lost 40-50% of their value in a week. In this situation, XRP token showed relative stability and fell by about 20%. At the same time, Ethereum fell substantially in price. Because of this disbalance, Ripple took the second place in the cryptocurrency rating. For the moment of writing this article, the project`s capitalization is equal to 12.5 billion dollars. The gap from ETH is almost 3 billion dollars.

3. Future forecasts

Let’s talk briefly about prospects for this project, and what XRP hodlers can expect. For a start, it is worth noting that Ripple is a legal entity officially registered in the United States. This is an undeniable advantage for investors. But it should be understood that the Ripple technology used by banks has nothing to do with XRP token. The fact is, that Ripple has three different products (xCurrent, xRapid and xVia). Banking institutions are interested in the first one, and XRP token is directly related to the second one. Therefore, there is no direct correlation between XRP token rate growth and the introduction of Ripple technology into the banking sector.

Some experts say that banks can start using xRapid technology. If this happens, then XRP token will be really useful and needed. But if you go a little deeper into this question, it becomes clear that such a scenario is highly unlikely. In this case, banks will have to buy an intermediate XRP token additionally, which will increase the cost of transactions. Therefore, the vast majority of analysts believe that banks will not take such a step.

But there are still some reasons for token`s price increase:

  • The possibility that banks will shift to xRapid technology. It is unlikely, but still possible.
  • Increasing of customer base.
  • Regular burning of tokens (deflation).
  • Expanded applications (using Ripple technology, you can exchange absolutely any assets).
  • A general trend change on the market, may lead to another sharp rise in the token price.

4. Conclusion

The Ripple Company is a legal entity registered in the United States. It actively cooperates with the leading banks in America, but this does not concern the XRP token.

The coin definitely has a future, so it is better to keep it in cryptocurrency portfolio in a small amount (no more than 5% – 10%). Recently, XRP cryptocurrency firmly entrenched on second place in the global ranking CoinMarketCap.

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Bitcoin’s Price in 2019: Forecasts and Opinion of Experts

Attention of many people around the world is focused on the Bitcoin price. No one can say for sure, where it will go next year, or moreover in a few years. Some people believe, that the cryptocurrency industry has already reached its maximum, and all that we are waiting is a continuous decline of value. But there are experts who are sure that the maximum marks of BTC is only beginning and we are expecting for the new heights in the future. Well, let’s try to look into the matter and analyze the words of leading financial experts of the world.

1. Analysis of the current situation

As we all remember, the capitalization of the cryptocurrency market reached its historic maximum 831 billion dollars in January 2018. After this, a deep and prolonged correction has started, which partially continues until now. At the time of writing, the market capitalization is 107 billion dollars, the Bitcoin price has fallen in 6 times, and many coins have become cheaper in 10-20 times.

Source: CoinMarketCap

At first glance, everything seems to be bad and prospects are rather vague. But what if we tell you that everything is absolutely opposite and now it is the best time to invest in cryptocurrency? We are ready to back up our words with concrete facts about which very few people talk. 

  • Continuous growth of network`s hashrate. Despite the fact that the price of first cryptocurrency shows negative profitability throughout 2018, the total computing power of Bitcoin network is constantly growing. It means that miners are increasing their production capacity. And it is not about small or medium farms, since their share is negligible on the general background.

Source: https://bitinfocharts.com/

After analyzing this graph, it appears that big miners continue to invest hundreds of millions dollars in equipment. This means that major players continue to believe in further development of the industry, and therefore in future growth of the BTC rate.

  • Infrastructure development. In 2018, investor`s interest in cryptocurrency faded a little, but this did not affect infrastructure development. Every day, the number of places where you can pay with cryptocurrency is growing (paying taxes in the USA, real estate, online shopping, transport tickets, physical points of sale and more). It is a very good trend, because the more places you can pay with BTC, the more people will be involved in the digital economy.
  • The acceptance of cryptocurrency at the government level. In 2018, for the first time in 10 years of Bitcoin’s existence, they started talking about it at the international level. If earlier none of the world leaders paid enough attention to this topic, then this year at the G20 summit this issue was put on the agenda. World leaders agreed that it would be pointless to forbid cryptocurrencies and no one would do that. On the contrary, there was decided to develop an international legislative framework.
  • It’s still possible to become a “pioneer”. If you go to the website bitinfocharts.com and take a look how many Bitcoin wallets are registered currently, it is possible to see the number that does not exceed 23 million. Taking into account that more than 15 million of them are wallets, which balance does not exceed $100. The population of our planet now is about 7.6 billion people. Let’s take 40% of insolvent people (children, pensioners, people who live in a third world, etc.) – it comes out near 4.5 billion people. After comparing these numbers, it appears that there are still very few people who are really involved in the cryptocurrency industry. That means, a global large-scale acceptance of technology does not exist yet. This gives us a chance to become pioneers. After cryptocurrency becomes a commonplace for any person (like, for example, a credit card in our days), we will reap the benefits. Most likely you will hear such expression in future: “Why didn’t I buy Bitcoin in 2018?”.

2. Expert forecasts for 2019-2020

Now let’s see what famous experts say about the near future of Bitcoin, namely about its price.

Mike Novogratz, CEO of Galaxy Digital, believes that the start of Bakkt and Fidelity Digital Assets platforms will affect on entry of new investors into the cryptocurrency market. According to Mike`s opinion, now the most important point of resistance is the mark of $ 3,880. If we overcome it, then the rate may reach $ 9,000 till the new year. The next important mark is $10,000. After overcoming it, the price of BTC 2019 will go up sharply. Novogratz has no doubt that the next year rate of Bitcoin will overcome its historical maximum of 20,000 dollars.

Tom Lee, is one of the leading analysts of Wall Street. Previously, he stated that until the end of 2018, the rate of Bitcoin will overcome the mark of 25 thousand dollars. But after a few months, namely in July 2018, he slightly revised his views and named the new price of Bitcoin 2019 – 22 thousand dollars.

The forecast of John Mcafee is the most bravest of all existing on the market. He believed that by December 2020, the price of one bitcoin will be $1,000,000. Moreover, John is confident in his forecast like no one other. In his view, in the upcoming future, Bitcoin will replace dollar, which will cause huge demand.

3. Conclusion

After analyzing the current situation and the words of industry experts, we can conclude that Bitcoin and cryptocurrency in particular have a great future. Now we are only at the beginning and in the next decade, cryptocurrency will change our life. It should be noted that this article is not a call for investing in cryptocurrency. These are just our subjective thoughts about the future development of the industry. Remember, any investment entails a certain risks.

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Vinny Lingham is Clear About Bitcoin: “I don’t think we see $20k for a while”

Significant part of crypto community, still cannot recover from the fall of the cryptocurrency, the rate of which is still in a red zone. According to the CoinMarketCap, Bitcoin, at the moment of writing the article, is set on at $3 747 per coin and still falling.

But some representatives of crypto community have their own view about the situation on the market and predict their own price of Bitcoin.

Vinny Lingham, an Internet entrepreneur, Co-founder and CEO of Civic, has answered to a few question of The Coin Shark, to clarify the situation on the market:

Hello, Vinny. What do you think, will Bitcoin be able to overcome the $20 thousand mark next year?

I took a $20k bet with Ronnie Moas in Vegas, last month. He predicted $28k by EOY 2019. I disagreed. I don’t think we see $20k for a while, at the very least 2020, but possibly even 2021.

In your opinion, what is the problem with cryptocurrency at the moment?

There is too much hype, and not enough substance, as well as too much focus on the technology and not enough focus on the business or consumer value add.

Can Ethereum become the leader in 2019?

It is possible, but unlikely unless they can fix the scaling issues and deal with the lack of consensus within their community.

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Is Bitmain Really Dying, or How Much Money Was Lost in 2018?

The year 2018, especially its second part, has not been particularly simple for the crypto giant Bitmain. After the unsuccessful IPO, there came Bitcoin Cash hash wars which also negatively influenced the earnings of Bitmain.

According to the data provided by a crypto enthusiast on Twitter, the company might have suffered around $740 million losses in Q3 of 2018, making it the worst quarter in the history of Bitmain.

Other specialists are quite sure that the numbers could be even higher. The epic with Bitcoin Cash, low amount of customers, the crypto market price collapse exhausted Bitmain. Will it be able to recover? We’ll have to wait and see.

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