Рубрика: News

Novice miners are faced with the problem of choosing in 2020. On the one hand, they prefer to purchase hardware, create a farm, and install every device on their own. On the other hand, the difficulty of entering the cryptocurrency mining area pushes them to participate in cloud mining projects. Which option is preferable and where to begin your participation in blockchain projects in 2020?

Cloud mining

This is a relatively new thing in the blockchain world. It arose when it became lucrative to lease hardware for short-term rent and receive guaranteed money. The leasing provider was liable for the technological hardware, equipment software, availability of access to the Internet and electric energy sources at the same time. Capacity increased later, and miners who mined digital coins at home were forced to pay attention to third-party users. It was at this time that the owners of big mining hardware productions entered the market. They were ready to lease equipment to small and novice miners for the purpose of earnings.

A cloud mining service supplier often has numerous benefits over regular users. Read about them below:

1. Location of suppliers in areas with free or low-tariff electric energy.
2. They have all the conditions for buying mining equipment at a bulk price.
3. Often providers are manufacturers’ daughter enterprises.
4. Absence of troubles related to renting space and organizing airing system.
5. They have huge capacities and powers.

Cloud mining is the use of means and sources of a huge corporation that is a manufacturer or proprietor of calculating systems. The resource provider relieves the consumer of all troubles (aside from the market oscillations).

Cloud Mining and Mining Pools: Key Distinctions

Users also increase their computing power by combining the available resources when they unite in the pools. However, they bear all the costs of maintaining infrastructure, paying for electricity, renting premises, repairing and replacing broken parts on their own in proportional shares. This leads to significant costs, which usually exceed the similar costs of cloud mining.

Cloud mining provides a certain set of guarantees for consumers. More detailed information about this is provided below.

Cloud Mining Benefits

Using third-party capacities has numerous advantages:

1. The ability to mine any or several selected cryptocurrencies, including bitcoin.
2. You get rid of all the mining troubles: the need to care for installations, settings, cooling organization, premises noise isolation, and space rent.
3. The profitableness of leased devices is usually higher than of purchased equipment. This is due to the lack of a huge amount of costs.
4. Fast scaling (capacity increase) depending on the budget.
5. Lack of equipment downtime, which leads to an income missing.
6. The legislative regime selected by the supplier ensures the security of financial means and excludes troubles related to the import of cryptographic equipment into the country.
7. Demand promotion programs assume a small reward for the involvement of new users.

Cloud Mining Shortcomings

A number of disadvantages are typical of cloud mining. These are both common to the entire field, and peculiar only to it:

1. There is a danger of giving financial means to unknown scammers who offer unreal computing devices or those who cease to exist immediately after getting paid for rent. All those who give promises about a return of more than 200% of investment during each year are likely to be fraudsters. It is better to cooperate with proven services that have existed for several years.
2. The usage fee will be deducted from your account. It will reduce the sum of reward. This will decrease the equipment profitableness compared to home mining.
3. Cloud services can provide the least amount that can be withdrawn. You will need some time to mine the right coins number.
4. Hackers can attack an online source with a wallet attached to it. They withdraw funds to their resources. A method of protection against this is to refuse cloud storage with a prolonged withdrawal period or terms that prevent rapid money transactions.
5. A rising difficulty of mining the chosen crypt will decrease the remuneration for the leased capacity in any case.
6. You should follow the market tendency and respond to events taking place in the world of cryptocurrencies.
7. The impossibility of the sale of the hardware if necessary.

Home Mining Concept

Despite all cloud mining benefits, its own hardware possession also attracts a lot of novice miners and experienced investors who aim to get rich. The origin of the crypto industry began with home mining. It still remains demanded despite the computing power increases. Home mining does not require large investments but refers to investments with a long payback period. So, you have to be patient in any case.

Home Mining Benefits

Everyone has the opportunity to begin mining digital coins with home mining, and after considering the option of pooling or increasing computing power. The main arguments in favor of this theory are given below:

1. The ability to select the size of the start investment and the devices kit.
2. Each miner can move to mine profitable altcoins (if you mine on the GPU).
3. The shortage of video cards is gradually disappearing. You can buy them freely available at an acceptable price.
4. ASICs do not require specific skills. It does not cause difficulties to set up and configure them on your own.
5. The ability to receive a quick payback compared to cloud mining, in case you have access to inexpensive electric energy, hardware acceleration, and own premises that do not need to pay rent. A stable and favorable atmosphere in the world of e-currency also allows for reducing the payback period.
6. There is an opportunity to sell the computing devices if you get tired of mining.

Home Mining Shortcomings

Home mining has disadvantages that scare off most potential users. Some of them deserve special attention:

1. Inability to run large computing power and increase rewards.
2. The owner bears all the costs of setting up, repairs, electrical energy, rent of spaces, the creation of optimal temperature conditions.
3. Building your own farm on the GPU and ASIC requires minimal computer knowledge.
4. Dust, overheating, and noise can damage any equipment. You should think about how to cope with these inevitable satellites of any working electronics.
5. Keep in mind that moving to another blockchain project takes time. The hardware is often unoccupied in this case.
6. ASICs become outdated and useless because of the impossibility of migrating to the mining of another cryptocurrency.
7. Protracted payback and return on profit period.

Defeat Hindrances and Begin Mining

Anyone who is ready to accept the unpleasant market surprises can overcome all the troubles related to mining. The fact is that BiXBiT is professionally engaged in solving mining problems and offers both ready-made solutions and a foundation for subsequent renovation in the open-source framework.

The infrastructure software and hardware complex is designed for these purposes. Its main advantage is the use of immersion cooling. This method was tested for cooling servers. Today, it is also available for miners. This method involves completely submerging the equipment in a liquid, where it is cooled to the temperature set in the device.

The use of immersion cooling excludes numerous difficulties:

1. Reducing the noise level produced by running equipment.
2. Pervasive dust.
3. Reducing costs associated with maintenance and replacement of the cooling system.
4. Installation of ventilation systems and thermal corridors.
5. Difficulties in constantly overclocking of equipment.

Another advantage of the installation is the possibility to use the heat generated. Heat is usually seen as an unavoidable by-product. However, a solution was found that allowed it to be used as a useful resource for miners. The solutions included in the installation allow using the heat generated by the equipment for heating, water heating, growing heat-loving plants, and other needs. Thus, the user has an additional source of savings on resources and even additional income. While the unit is running, it generates heat that can be used in everyday life.

Miners will have to put a lot of effort for the implementation of successful activities in the mining world this year. Perhaps only those miners who are most committed to blockchain technologies do not stop working on creating chains of calculations. The special device is its main tool — ASICS. What do novice miners need to know about it?

What is ASIC?

ASIC is an abbreviation that can be deciphered as follows: a specific integrated circuit. This literally means an integrated circuit designed to solve certain problems. Each ASIC performs only one task — the mining of cryptocurrency built on a specific algorithm, for example, bitcoin, litecoin, dash.

ASICs appeared with the development of blockchains, when the networks complexity grew, and a greater amount of video cards were required for its maintenance. Miners incurred high costs for electricity, and the mining of electronic coins could hardly be called profitable. The spring of 2013 was the time when ASICs appeared on the market. ASICminer was their manufacturer. Miners who mined cryptocurrency at the time used Blade Block Erupter boards. It is interesting, that the outdated consumer electronics process 130 nm was used for creation.

What were the new devices interesting for miners? Their productivity was several times higher than the productivity of video cards. ASICs appeared in the mining world immediately became very popular among network users. They were guaranteed to get rewarded, ahead of the pools of video cards. In addition, the case humming like a helicopter consumed not so much electricity. However, it should be kept in mind that ASICs worked around the clock. One and a half years of payback period, space savings, and simple setup were also important components.

High noise levels, impossibility to use devices for other calculations, complex repairs, and high cost is considered the drawbacks of the device.

ASIC composite components and elements

The combination of several elements packed in a parallelepiped aluminum case are the main part of ASIC. Their names and detailed descriptions are given below:

1. Board consisting of chips set.
2. Power unit.
3. Memory block.
4. Ventilators.
5. Connector for connecting to a personal computer.

The modern market offers devices of various sizes and with different «fillings», which differ from each other depending on the work performed.

Mining algorithms are known today

It is the algorithm for mining different electronic currency that deserves miner attention after he makes a choice in favor of a specific altcoin. ASIC will be purchased depending on this. There are three algorithms that are known today:

1. X11 was launched during the growing Dash popularity. Eleven hashing functions are used by this algorithm for proof of work.
2. Scrypt is a reliable key generation function basing on a passcode. Its hacking is almost impossible since a huge RAM volume is needed for this.
3. SHA-256 is a widespread and common algorithm. Production of ASICs was started just for it.

The choice of algorithm plays a major role in Proof-of-Work protocols that are the basis for building the majority of modern blockchains. They assume the engagement of users in performing computing and receiving an award in proportion to the contribution made.

Nuances that everyone has to study before purchasing ASIC

ASIC’s power (or hashrate) is the main aspect that the miner has to take into consideration first of all. The speed of performing calculations, the probability of completing a block, and receiving a reward are directly dependent on this indicator. ASICs can be overclocked by rising the hashrate. However, electricity consumption increases at the same time. Thus, unstable equipment operation is possible with a standard cooler.

By the way, one more significant aspect is the energy consumption. Don’t forget to take this aspect into account. It is especially necessary to examine the ASIC capacity when installing numerous equipment units.

Energy effectiveness is a more complex feature. Suppliers specify it as the ratio of the amount of energy consumed to hashrate. Thus, a device is considered energy efficient and has a higher efficiency if its energy consumption coefficient is low. The absolute majority of modern manufacturers produce energy-efficient ASICs.

The device cost is another element that constantly attracts attention. It is embedded in the investment model for the payback calculation. Thus, every miner has to keep in mind that the cost of the device should be paid off first, and only then the earnings will start, minus the current costs of repair, operation support, and electricity consumed.

ASIC kinds

ASICs are divided into three kinds depending on the purpose:

1. Compact (or flas)miners. These devices are used exclusively for mining coins without leaving home. The simplicity of the process of connecting to a computer through USB, along with the small overall dimensions, are the advantages of this ASIC type. However, they have the appropriate simple characteristics. This device is perfect as a gift. It is used for familiarization with the mining. The price of this device is about 90 dollars.
2. Home mining ASIC. Average characteristics and parameters are features of this kind. They usually consume 700 watts on average. Materials that manufacturers apply for the production of this ASIC kind are characterized by lower quality than those used for the production of professional equipment. This type’s hashrate also demonstrates average productivity level.
3. Professional ASICs are the most traditional. Effective high-quality cooling systems, as well as built-in PSU with a capacity of more than a kilowatt, are elements of professional ASICs. The productivity and energy effectiveness of such devices is maximum. However, it is necessary to keep in the mind the payback time. Indicators such as the cost of the equipment and its energy consumption are the basis for the payback period determination.

Which ASIC to buy in 2020?

Today, each manufacturer has a solid ASICs’ kit for any calculations. Information about the most popular ones is provided below:

1. Bitmain Antminer S9 is widely distributed and the most traditional miner. Mining various digital coins, including bitcoins, using the SHA-256 algorithm is its main task. It became available in retail in the summer of 2016. It continues to bring real money to miners today.
2. GMO B3. The release of one of the most powerful ASICs on the crypto mining market was announced by a Japanese vendor. It is created for the SHA-256 algorithm
3. Innosilicon Terminator 2-Turbo. According to the statements that the manufacturers made, digital coins miners have access to receiving the instrument that issues 24TH/s. Chips with low energy consumption are used as an element of this ASIC. This device helped many miners to mine a huge amount of electronic coins and made them rich.
4. PinIdea DR-100. This equipment was manufactured in China as a substitute for the BitMain Antminer D3. It was issued in the Dash increasing stage. The device payback took place within half of the year.

How to set up and maintain an ASIC miner?

The process of configuring a specific ASIC requires a personal approach. The chosen altcoin and the manufacturer’s instructions are its basis. There is a universal actions combination that must be done to start mining:

1. Plug the power supply unit. PSU connectors are attached to the couplers. The click of the fixator specifies that the action has been completed successfully. One socket is attached to the installation control panel.
2. Plug the network cable to the router.
3. Conduct a test launch. The sensors will light up, and the ventilators will begin rotating at low speeds.
4. Define the ASIC IP address. Miner can do this in the browser or using the utility.
5. Go to the web interface of the IP-address and conduct specific actions: prescribe the mining pool address, configure the frequency and capability, change the firmware.
6. ASIC restarts after storage of all settings and starts operating with the new settings.

It is worth noting that the use of ASICs allows guaranteeing passive income in the long term despite the constantly changing situation in the world of cryptocurrency mining. In addition, the payback period is not long on average.

The coronavirus, which has been spreading since the end of last year, causes irreparable damage not only to social life but also has a very negative impact on the economy in general and the cryptocurrency sector in particular.

Canaan’s specialists are confident that the cost of ASIC miners, designed for Bitcoin and other altcoins mining, may increase in February-March. This is due to the violation of the operating mode of equipment manufacturers because of the coronavirus risk.

All leading and rich manufacturers have already announced the postponement of delivery dates. Bitmain, Canaan, Innosilicon, and MicroBT are among them. Canaan sales Director CH. Feng is confident that the quarantine will move the shipment dates.

It is not yet clear whether cheap logistics will be provided since a major transport hub in Wuhan is also blocked. The demand for ASICs remains high at the same time.

Founder of a large mining pool BTC.top C. Jouer announced the closure of one farm earlier. The company was located in a remote rural area of Xinjiang. He believed that the farm would be able to function and bring earnings even with a few employees, letting some staff members stay at home but then the police intervened and tightened the quarantine. Returning workers were not allowed to return to their working places. This undoubtedly had a negative impact on both ordinary employees and the level of income of the company, which lost a large amount of the money that it could earn.

Jouer claims that the workers have not left the building since the Chinese New Year, and no one has come to them from Wuhan and other cities. However, the police extended the quarantine for two weeks.

In case you take the decision to mine a variety of alcohols in order earning money and in the hope of becoming rich, first of all, you must decide on the blockchain that you prefer to support. Today there are more than 1.5 thousand of them. There are numerous promising projects, as well as completely unpromising projects among them. How not to get lost among the ocean of alternative digital assets and correctly manage your investments?

Nuances that should be thoroughly examined before mining any cryptocurrency

You will need a kit of mandatory elements before mining any cryptocurrency but not just altcoins:

1. A repository of private digital information, better known as a crypto wallet. It is protected by a password known only to its owner. An electronic wallet is designed for storing coins. It contains a detailed transaction history.
2. Software designed for altcoin mining and provided free of charge.
3. Connecting to the mining pool – an association of miners who have combined their power to increase profitableness and regular payments of received rewards. If you mine outside the pool, the risk that the reward will pass you by is high.
4. Placing the units in a ventilated area or using an immersion cooling system.
5. Hardware: a graphics processing unit (GPU) from ATI or Nvidia or ASIC for mining. Currently, mining equipment costs from $100 to $3,000 per video card or ASIC.

What risks accompany mining?

Any profitable activity, including cryptocurrency mining, is associated with some risks:

1. Loss of access to the digital wallet. You can forget your password, damage your drive or get locked out.
2. Dishonest organizers of the mining pool. A pool managed by rogue administrators risks becoming your last resort. Admins will steal rewards, reduce percentages of total rewards, and so on.
3. The electricity cost. The cost of 1 kW/h of electricity is important at the lowest rates in the cryptocurrency market. Bitcoin, Litecoin, Ethereum, Peercoin, or Feathercoin — any of them is profitable at a cost of 0 to 0.05 cents per kW.
4. Hackers. Unfortunately, exchanges and wallet hacking is not uncommon in recent years. So, the threat of a hacker attack remains.
5. Cryptocurrency may fall sharply in price (but it can also grow).

However, if you perform the following actions you can bypass all these vulnerabilities:

1. Store funds on a digital wallet that is not connected to the network.
2. Choose reputable pools. The most popular among numerous miners are Genesis, NiceHash, Hashing24, MinEx, hashcoins datacenter, MinerGate.
3. Look for sources of cheap electricity.
4. Perform operations only with small amounts of cryptocurrencies on the exchange.
5. Track course changes and learns the financial part.

Best altcoins for mining at the beginning of 2020

It is difficult to choose the most profitable and non-Scam option among more than 1,500 projects. However, there are quite promising projects.

Monero

This electronic currency is consistently acknowledged as a progressive confidential coin. The cryptonight hash algorithm is its core. It is created with exceptions that make it hard to mine Monero using ASIC. However, there are no problems with getting a coin on a non-productive PC.

First of all, you will need a processor and utilities for it. You must buy a video card to increase revenue. It will create all the necessary conditions for increasing computing power. GPU is better suited for Monero mining. However, there is also the opportunity to use Nvidia cards quite successfully. Experienced users recommend the MultiMiner and GUIminer programs for digital coins mining. Important addition: each user of this electronic platform has the opportunity to save the digital funds on the official Monero wallet.

Ravecoin

The x16r algorithm has had a huge impact on the rising popularity of Ravencoin. This is the tool that the community uses for mining and confirming blocks.

The x16r algorithm is practically a collection of sixteen different algorithms. They are used arbitrarily in the mining process. The hash of the preceding block is an important aspect of determining the sequence of algorithms used. It is not easy to program the ASIC to process the algorithm due to a random combination. If any person makes an attempt to create an ASIC for X16R, developers can replace the algorithms that are used in it.

The zealot/enemy-1.08 miner is ideal for Nvidia cards. However, this source is not opened and takes 1% off as a bonus for developers.

Grin

This is the newest project in the field of cryptocurrencies, focused on privacy and with an unlimited offer. It unexpectedly found support among both traditionally experienced miners and newcomers.

The perfect tools for Grin mining are listed below:

1. AMD cards: 570, 580, Vega56, Vega64.
2. Nvidia cards: 1070, 1070ti, 1080, 1080ti, 2070, 2080, 2080ti.

If profitable mining is your main goal, then you should definitely accede one of the pools listed below, which make up 97% of the current Grin hashrate:

• F2Pool (40%);
• grinmint (16%);
• sparkpool (25%);
• Pool.BTC (16%).

ZENCash

ZenCash is more like an ecosystem with an anonymous money network, a messaging service, a content exchange platform, and a decentralized organization. This is a promising resource for maximum privacy.

The system includes three subsystems: ZenChat, ZenPub, and ZenHide. ZenCash makes it possible to exchange encrypted messages using the blockchain. The AES-256 algorithm is used for this. The text window is limited to 512 characters.

ZenPub allows posting content, primarily documents, using IPFS via a text field or z-address. ZenHide hides communication points and anonymizes users from the actions of regulators and other authorities.

AEON

This platform actively uses CPU resources using Cryptonite-light PoW. This significantly reduces the CPU-GPU productivity gap: users get a three-fold enhancement in CPU hashing speed instead of a two-fold improvement for the GPU compared to the standard (Monero-style) Cryptonite PoW. In addition, there are no ASICs in the network yet.

ETN

ETN was built on the Monero blockchain using the CryptoNight algorithm. It aims to conquer the games market. Currently, ETN does not need a computer. It is enough to use mobile devices for making transactions and convenient payments. You don’t actually do mining but rather get coins transferred to keep the app running — this is the proof-of-elapsed-time version.

Feathercoin

This kind of electronic fund was released to the market as an alternative option to well-known and widely distributed digital currency bitcoin. It appeared in 2013 against the background of a small trading volume. Feathercoin uses NeoScrypt. It is better to mine it with the help of the GPU.

Dogecoin

At first, it seemed that the programmer Billy Marcus was just joking. Many traders did not take his Dogecoin project seriously. Moreover, they did not consider it a full-scale cryptocurrency. A funny dog of the Shiba Inu breed from a famous meme has become its symbol. The Internet community liked the concept. Dogecoin ranks 34th in the token rating coinmarketcap.com. It has the largest market capitalization to date. It executes the Scrypt algorithm. The issue is projected to reach one hundred billion coins. The power of a standard computer is sufficient for mining coin.

You should definitely download the desktop wallet from the official website to get digital funds.

Vertcoin

This altcoin appeared in the world of cryptocurrencies not so long ago. It is created on the Lyra2RE algorithm for processing exchange operations. Vertcoin was created with the condition that it was impossible to develop specific mining equipment for it. Specialists recommend 2 pools that can be selected depending on the power of the devices involved. If we are talking about 1-2 video cards, then you should give preference to Network 2. If your farm is much larger, it is better to choose network 1. This platform works equally well with both video card manufacturers.

Almost every modern person wants to know how the situation on the cryptocurrency market will develop in order to become rich. It’s quite difficult to make predictions in the cryptocurrency world. However, leading experts have made an attempt to define a dozen cryptocurrencies that will be distributed on the e-currency market and will be in demand by bidders in 2020. Information about this is provided below.

Bitcoin

It is deservedly considered the main electronic payment means. It is expected to decrease the reward by 50% for every verified block until July 2020. However, expertssuggest that the prevailing coefficient will belong to bitcoin out of the total altcoins quantity. Bitcoin may well become a cryptocurrency that has the highest cost in the modern e-currency market. This will have an impact on the increase of its exchange rate.

Lightning Network constant use will ensure bitcoin ecosystem changes, that will open access for implementations in decentralized apps, micro-payment systems, and online shops. These conversions will help to change the opinion that BTC does not have a development prospect.

Bitcoin will save a “haven” status for large Fiat assets holders if the PRC – USA trade war does not stop. The financial crisis in such countries as Argentina, Venezuela, and Iran can bring some funs that will be transferred to bitcoins.

NEO

The name of this project was regularly mentioned in the various lists and ratings of the past year. NEO dispels numerous crypto world stereotypes. This is the first Chinese open-source creation. It is designed to modify the standard monetary system by uniting real and electronic money.

The unique trading mechanism Superconduct makes it possible to conduct confidence funds exchange via a decentralized system. Thus, there is no reason for experts to doubt its practical application and the fast increase of trader interest in this project.

The creators expect to communicate with the PRC authorities, who have a negative attitude towards the electronic currency. This cryptocurrency is sold evenly at ten dollars per unit at the moment.

EOS

The cryptocurrency which is the favorite among the rating compilers from China Center for Information and Industry Development frequently often appears in the forecasts of various experts regarding the development of the situation on the e-currency market.

If the various internet communities and platforms creators will take the decision to go to the blockchain, EOS will certainly become their operation center. A rapid EOS jump up to one hundred dollars per coin is waiting for traders if Ether fails. The Delegated Proof-of-Stake consensus algorithm and a hypothetically endless parallel blockchains amount guaranteed an EOS breakthrough.

Litecoin

This cryptocurrency does not yet claim an honorable place in the top three of the leading electronic settlement funds. However, it should also be mentioned as a fairly prospective cryptocurrency which can take a leading position in the e-currency market currently. Litecoin code that is shared with bitcoin makes LTC a tempting asset. LTC will be fungible with BTC thanks to the Lightning Network.

LTC is sold at the price of eighty-five dollars per unit. But there are all the prerequisites for it to reach the two hundred dollars-level by the middle of 2020. Mining of more than three-quarters of coins is planned for the current year. This makes the asset scarce and creates conditions for the rise in its exchange value.

Ripple

The prosperous signing of contracts with the most significant figures of the financial market gave rights talking about the Ripple ecosystem as the greatest breakout in the field of digital settlement trading. Joining with Western Union and the possible SWIFT substitution to accelerate and decrease the cost of remittance huge money amounts between trading operations participants was the success pinnacle.

Analytics don’t wait for extra earnings from the community. They suggest that its exchange rate will not grow more than $0.7 during the coming years. People started signing a petition charging the management of transferring a huge tokens amount and holding the exchange value at $0.3-0.4 level. The community part doesn’t appreciate Ripple. However, this is the platform that actually works.

Ethereum

The project has lost its former popularity in the last months but experts still wait for the increase in the asset value to one thousand dollars. A famous crypto trader took a poll among his followers. Thus, 54% of the 5,410 people surveyed said that they believe in increasing Ethereum cost.

Smart contracts that are applicable in practice, are used by Ethereum. They are the foundation of numerous elaborations and financial operations digitalization and document flow. Its cost may grow under the influence of the rising demand for the service. The forthcoming forks-updates and the Proof-of-Stake algorithm rapid implementation have a huge influence on the Ether progress or setback. The recognition by supervisory authorities and the community’s resolution to eliminate Ether from the altcoins list may also influence this cryptocurrency value rise.

Monero

This is the perfect decision for the Darknet and all persons who prefer to remain anonymous on the Network, and also don’t satisfied with ASIC. Monero isn’t favored by a public authority but it is a great asset for participants in electronic trading. Only the digital wallet owner has all information about the e-wallet thanks to the cryptonote 2.0 Protocol used. This factor has caused a constant high demand for this cryptocurrency among both honest and dishonest users.

Hackers don’t have access to personal information. This makes hacking and withdrawing financial means much more difficult. Despite the undeniable advantages, a large amount of data in transactions and a deficit issue lack are disadvantages that are typical for the project. However, Monero is still a coin with small volatility that is least dependent on bitcoin and other market fluctuations.

Nextcoin

The Proof-of-Stake algorithm is the main factor that directly affects nextcoin mining. Nextcoin electronic platform has its own system for exchanging electronic funds using a special blockchain. The creators wrote the unique code, avoiding errors and shortcomings made in the previous system version. It doesn’t have well-known analogs.

Built-in chats, energy effectiveness, and trading areas are the platform distinguishing characteristics. It is secured from double-spending attacks.

QASH

This electronic resource can become a great project for retail and institutional investors. To date, Qash isn’t popular with tenderers. However, it is sold at a rate of $0.1 per unit on exchanges. Many analysts suppose its fast increase even in this year.

The Liquid System is a unique project offer. It will produce market balance conversion, which is moving towards the next digital currency exchange generation. Easy altcoin trading, availability of stances in the banking and financial segments give hope for the great Qash achievements.

Lybra

The project that Facebook developers were working on, has not entered the market yet. However, it has already become the subject of heated discussions. This project can be called the huge attempt of corporation to develop the own payment tool which can become a direct competitor to the national currency of the United States. Perhaps, this is what local authorities, who have a negative opinion about Lybra, fear. D. Marcus from PayPal is participated in the creation of Lybra.

Lybra will be a stablecoin, provided by the Facebook monetary support. It was scheduled to draw a huge number of all Facebook resources users. They could be grouped into a single messenger – a payment system with protected encryption conditions. The Lybra Association was created for this purpose. Large companies concerned had entered into it. It is obvious that deliberations with the government bodies will be deferred and the project will not be launched until July of the current year. Only the permission received from the United States of America legislative bodies will serve as a signal for the Lybra launch.

What is Bitcoin? Simply put, Bitcoin is a cryptocurrency that operates on a blockchain. Of course, that doesn’t seem to make the answer any simpler. To understand what Bitcoin is, you must possess a basic understanding of economic theories, governmental regulations, and computational science. Let us start with the simplest one first.

Currency

A currency is a medium that allows for the sale of goods and services. Before the use of currency, all commerce would have been conducted by way of bargaining. Suffice it to say, currency is a more convenient way to trade for all parties. But have you ever wondered if that quarter in your hand is worth 25 cents? Before the abandonment of the gold standard, all cash was required in the US to be redeemable in gold. This meant that if you went to a bank with $100 cash, the bank teller was required by law to exchange it for $100 in gold. The rationale for this was strong financial stability because gold as a stock does not tend to suffer financially. However, new wealth creation was slower because the Federal Reserve was only printing money in relation to its gold reserves. Ultimately, cryptocurrencies became a theoretical possibility in 1933 when America abandoned the gold standard because the American dollar no longer required a physical asset.

Cryptocurrency

Most countries of the world maintain a strangle hold on what organizations are allowed to print money. This is to prevent international fraud, as well as to protect national resources. But most currency now is in fact digital, with banks acting as middlemen to verify that a company does in fact «have» money. Unless you are working under the table, all your paychecks are exactly that, a check or a direct deposit, a digital currency. Bitcoin is exclusively digital, with the only «minted» bitcoins are for promotional use. But Bitcoin is neither printed or minted, it is mined. Mining Bitcoin only requires a computer that can solve complex mathematical equations. So in theory, anyone with a computer could mine Bitcoin. This means that Bitcoin is a decentralized currency with no governing authority to decide who gets what, or how much can be mined at any given time. This is the defining feature of all cryptocurrencies, that it is decentralized, digital, public.

Value

As of this writing, one Bitcoin (XBT) is worth 9760.37 American dollars (USD). What gives Bitcoin so much value in comparison to what it physically is? The rules of supply and demand strongly apply here. The demand is incredibly high, while the supply is incredibly small, but more importantly will always be small. Supply and demand also applies to the value of national currencies. The USD isn’t just strong because of American industry and business, but also because many merchants around the world want and prefer to business in American dollars. This increases the value of the USD as a commodity. The value of XBT peaked on December 17 2017 when on XBT was worth 20,089 USD. It should be noted that on October 12 2009, the first time Bitcoin had financial value, one XBT was worth 0.0009 USD, making it worth less than dirt. It’s rise in value is attributed to it’s popularity as a useful digital currency as well as due to ongoing mining operations.

Bitcoin Mining & Blockchains

The surge in value of Bitcoin led to a number of young and tech savvy individuals becoming millionaires overnight. But who is to say how many Bitcoins an individual possesses in their digital wallets? Bitcoin operates on a blockchain, which is a public ledger of all Bitcoin transactions and mining operations. This ledger determines who owns units of Bitcoins, which accounts Bitcoin are coming and going into, and who is currently mining for new Bitcoin. A new block is created every ten minutes that is linked to the previous block on the chain. This keeps financial information both consistent and incredibly secure from criminal hackers and government cyber warfare experts. Once 2016 blocks have been added to the chain, the Bitcoin network will adjust the difficulty of mining new bitcoin.

What this means in practicality is that the more mining operations that are going on make it harder for the network to recognize new Bitcoin. So the more Bitcoin that exists, the harder it is to mine for it. This ensures that no one person, company, organization, or country can control the majority of Bitcoin out there. Conversely, if Bitcoin were to lose all public interest and most mining operations halted, those who continued mining would have a much easier time and would create new Bitcoin much quicker.

The Usage Of Bitcoin

So what is the use of decentralized cryptocurrencies like Bitcoin? Unfortunately for the average person there is little use for Bitcoin. The initial reason is that supporting the Bitcoin blockchain, as well as mining new Bitcoin is an extremely computationally labor intensive task. Big Bitcoin mining operations literally have thousands of computers dedicated to mining and adding to the blockchain. That means you would be lucky to mine enough Bitcoin to afford a cup of coffee every two weeks if you used your home pc. But the bigger problem for your average Joe is that there is hardly anywhere online you can spend Bitcoin. You cannot go to most major online merchants and purchase a product with Bitcoin. Typically, but not exclusively, the only «merchants» that allow the purchase of their products with Bitcoin are gangsters.

This will always remain in the dark history of Bitcoin that it’s rise in popularity started from the support of criminal elements that were selling narcotics, soliciting prostitution, and distributing child pornography. However, in the defense of Bitcoin, printed American dollars have all been used for the same thing. The American dollar did not suffer because it was the currency of choice for Colombia cartels.

If someone is interested in investing in Bitcoin, and using it for legal purposes, they should think of it as a commodity or stock, and not as a currency. Since mining is an unrealistic prospect for most, Bitcoin is mostly received by trades and exchanges. You buy when its value is low and sell when its value is high. But despite that Bitcoin is publicly traded at a number of stock exchanges around the world, there is completely no governmental oversight. This is off course by design, and viewed by some as a benefit and not a problem. However, 23 countries have banned the ownership and transactions of Bitcoin.

Who Is Bitcoin For?

Given all this information, who is Bitcoin intended for? You can be the judge of whether it is a worthwhile investment, but the creation of Bitcoin will always be rooted in anti-authoritarian ideology. Cryptocurrencies are a form of pure free market capitalism with anarchists on the left and libertarians on the right all crying out, «we do not need your nation’s money! We will make our own!» Even if you are not one of these young ideologues, when you use Bitcoin, you are always acting outside the law, but not necessarily against the law. Bitcoin is for those who wish to remain on the outside.

Written by: DLBrulotte

Bitcoin is the «mother of all cryptocurrencies», being born in 2009 and having first introduced the blockchain technology that underlies the whole crypto phenomenon.

It is a decentralized digital currency, as it does not belong to any government, bank or credit institution, and is programmed in an open source language.

Bitcoins are stored in a special electronic wallet (the so-called Wallet) or physical (bitcoin keys) and are accepted as a payment method now in many countries of the world.

Transactions (such as purchases and sales) take place via a peer-to-peer network and are completely traceable and secure. To trade with this digital currency, just use your bitcoin address.

Since the birth of Bitcoin, today we can count 62 cryptocurrencies; their purchase, their sale and their traceability is almost all done on the internet.

On the internet you can easily find dozens if not hundreds of websites offering the possibility to buy bitcoins and other cryptocurrencies by credit card, postepay top-ups, bank transfers, etc …

Doing business with cryptocurrencies is becoming easier and easier for everyone. Virtual coins are an increasingly widespread and appreciated phenomenon by those who have money to invest in the most disparate ways. There are many solutions available.

For those who work in the virtual currency sector, it is now clear that buying gold or other financial assets is not as convenient as they have always wanted us to believe. Trading is actually much better especially in expanding markets such as virtual currencies.

The first thing to do if you intend to buy crypto coins is to pay close attention to how, where and when you choose to take them. In this sector too, attention and experience are required to do business that is really convenient and to avoid being sidetracked at the first opportunity, you would risk leaving the business even before you have understood how things work and start making real money. If you want instead you could decide to invest in dozens of «altcoins» (alternatives to bitcoins) and get to increase, if not double your starting capital in a short time.

In fact, as in any investment activity, buying, or rather, trading virtual currencies requires two main variables that must meet and get along, that is, the variable of time and then above all the variable of the capital available.

There are two main solutions to buy and sell cryptocurrencies among the best known such as Bitcoin, Monero, Dash, Ethereum. Exchanges for direct sales and with low commission costs and online trading brokers through the use of specific tools such as contracts for difference. In this regard, we will observe the main characteristics and differences.

On exchanges it is possible to buy cryptocurrencies directly by contacting high liquidity platforms of digital coins and with low costs on the purchase commission. Among the best solutions, Poloniex, Bitstamp, Coinbase, Kraken, Bittrex, The Rock Trading and Sprectrocoin. They are also alternatives to the classic trading systems in CFD and with solutions that also have good online reputations.

To begin a phase of purchase of cryptocurrencies on the Exchanges platforms, a first online registration must be made, including, among other things, information on identity card, telephone number, email, residence and choice of the Wallet on which to make a payment.

These data will be used to confirm the identity of the new user and to proceed with the opening of a new account for the direct purchase of cryptocurrencies.

For a purchase of virtual coins on the Exchange, this platform must be chosen in the first place. Solutions such as Kraken, in fact, allow you to buy cryptocurrencies in exchange for real currencies such as the Euro, Dollar and Yen and accept traditional systems such as wire transfers and credit cards as payment methods.

There are also other solutions such as Bittrex and Poloniex, where it is possible to buy cryptocurrencies with other cryptocurrencies and where the purchase order must be made in a short time, since the conditions applied by the Exchange also vary based on the liquidity and volumes of cryptocurrencies. available.

This is the order in order for those who want to buy cryptocurrencies:

• # 1. Choice of the Exchange platform in which to buy cryptocurrencies.
• # 2. Registration on the Exchange indicating the main data required for the verification of the new user.
• # 3. Choice of payment system for account management and to finance the purchase of cryptocurrencies.
• # 4. Access to the Exchange and direct purchase of the desired cryptocurrency.
• The purchase transactions on the Exchanges are supported by high liquidity and low purchase commission costs.

Do not forget that before starting to buy Bitcoin you must also create your digital purse (technically called wallet), i.e. the file inside which the coins will be saved. It is not difficult: all you have to do is choose a client, that is a software, among those available on the Internet and follow the instructions contained in it. Many of the sites I mentioned allow you to create both the wallet and the purchase of cryptocurrencies.

In addition to being able to buy Bitcoins as seen above, you can also fill your digital purse in another way. Like? By making mathematical calculations to the computer processor or its GPU, that is to the processor of the graphics card. This activity is called mining and its complexity increases with the passage of time.

The creation of digital coins, however, requires a high computing power and what follows is a great energy expenditure, due to these problems that make the practice of unsuccessful, even for those who use rely on a specific video card. At this point, the mining pool, affiliations and the use of ASICs came into play.

The last thing to know for the purchase of Bitcoins is the right evaluation of the exchanges that we would consult:

• # 1. Payment method — Find a bitcoin exchange that accepts your preferred payment method, SEPA transfer or card. Each payment method carries different fees.
• # 2. Speed ​​- Buying bitcoins quickly can be difficult, especially in large quantities. You may have found the best Bitcoin exchange, but if the verification takes a week and you need bitcoin right away, then you will have to look elsewhere. Initial verification can often take several weeks.
• # 3. Commissions — Each Bitcoin exchange applies different rates for its services. Exchanges that work on orders have a high trading volume and often offer commissions of 0.25-0.50% per trade.

Written by: zalkeo1

Nowadays, there is a lot of investment platforms you can invest in. There are stocks, property, and the most recent investment platform is the cryptocurrencies. Cryptocurrencies are known as digital assets that can be used to purchase goods or to invest in. It is still potentially great since the years passed by. However, too much of cryptocurrencies actually decreased the value of the cryptocurrencies itself. 3 years ago, most people invest in a lot of cryptocurrencies and in the end, it lost value. However, there are still some of the cryptocurrencies that are still relevant and potentially profitable in 2020.

The business world is willing to invest in cryptocurrency although they know that they need to be careful and take a lot of time to do research. It is no easy task even for the big boys. If you are just starting or just an individual that is trying to invest in new things, cryptocurrency might be your option. Just like any other investment, cryptocurrencies investment does have its own risk. These are some of the cryptocurrencies that you can look into if you want to get started. 5 cryptocurrencies that I listed below are known to be potentially profitable in 2020 and this is not a definitive analysis for the investment.

BITCOIN

Up to this day, Bitcoin is still relevant and is considered to be potentially profitable in 2020. Created in 2008, this cryptocurrency surged into one of the most profitable cryptocurrencies of all time. There are times when the value surged high upward in a short time and going down just after that. Most people would just sell their Bitcoin and forget about it but this is the best moment to invest in it again. in the middle of this year, probably May, there is a 50% off reduced rewards by this first and major cryptocurrency developer. This will like to bring dominance over other cryptocurrencies. There will be half of every bitcoin generated in 10 minutes and most likely the demand will be higher against the supply.

Significantly, it may affect the growth of its price in 2020. Just like in 2016, the price might skyrocket to another new high but there are also speculations that it will not break the previous highs. Currently, it is regarded as the most dominant cryptocurrency with 60% of the total cryptocurrency market share. It is a proven cryptocurrency with a lot of platforms that support it such as decentralized applications, micro-payments, and e-commerce.

ETHEREUM

Ethereum is slightly different from Bitcoin as it is based on practical smart contracts. The fact that Ethereum is an open-source blockchain-based distributed computing platform makes it as a promising cryptocurrency in 2020. It was proposed in 2013 and launched in 2015 starting with 72 million coins minted. Ethereum is mainly used by many projects for the digitization of transactions. In 2020, the value keeps increasing as there are higher demands due to its blockchain and functions. After Bitcoin, it is the second largest cryptocurrency in the world.

Speculators believe that the value is unlikely to go down in 2020 because it has one of the most active developer communities in crypto space. This week, the trend is still rallying and there is are no signs of people suddenly dumping it. However, the fate of this cryptocurrency will depend on the Proof-of-Stake algorithm. Ethereum is still relevant because of its solid reputation in the community and clear regulatory stance.

RIPPLE

Ripple is a Switzerland based financial service company. Ripple value is closely related to its product and services. The value for Ripple (XRP) will continue to surge upwards as Ripple expands its banking services to institutions worldwide. Ripple (XRP) is still relevant in 2020 because it enables banks to settle cross-border payments in real-time. With no transparency and low-cost, there is a high demand for this cryptocurrency.

Currently, it is ranked third just after Bitcoin and Ethereum. According to Tim Draper, the value for XRP is set to skyrocket in the next few months. Ripple (XRP) is considered good for the long-run so do not expect huge profits in 2020. This is to be expected as recently Ripple(XRP) has announced that it will be buying $30 million of MoneyGram shares at $4.10 along with buying $20 million shares in the coming 2 years. This might be the indicator to look forward to the progress of this cryptocurrency.

ENJIN COIN

For investors that still does not know about this cryptocurrency, Enjin Coin(ENJ) is considered as the largest online gaming community. It has more than 20 million users ad 250,000 gaming communities. Founded in 2009 and based in Singapore, this foreign cryptocurrency is known as one of the potentially profitable cryptocurrencies in 2020. The recent partnership with Samsung and Microsoft has set some eyes onto it. Enjin Coin(ENJ) is also expected to to enter the top 50 most capitalized cryptocurrencies. This is due to rising demand for gaming and virtual items. Enjin Coin(ENJ) has earned over $150 billion per year revenue. This is a good indication that this cryptocurrency is not slowing down and might be expected to gain more revenue in 2021.

Binance

Binance coin is a cryptocurrency that facilitates trades on the Binance platform. It was launched in 2017 ICO in order to fund-raise the development of the Binance Exchange platform. Binance offers competitive rates and receives positive reviews from the community. Binance coin is expected to strengthen as it had just added crypto lending services in 2019. It gained astounding growth since the launch and showing no signs of slowing down in early 2020. Even in 2019, the price for this coin rose since February and broke a new historic high record against Bitcoin. According to Trainingbeasts, the rate will grow up to $19.55.

These are 5 of the cryptocurrencies that are considered potentially profitable in 2020. However, keep in mind that this is just an opinion and you should do extensive research before investing. Keep in mind that anything could happen in investment and trading. There is no guaranteed success without consistency.

Written by: silencerz111