Category: Bitcoin

When the famous cryptocurrency bitcoin emerged in 2009, no one guessed that it would reach today. The craze of cryptocurrency today is unparalleled. Recent trends from past years are proof of that. If you haven’t heard of bitcoin, you might be living under a rock. Let’s take a look at bitcoin mining for now. 

What is bitcoin mining, you may ask? It is normal if you don’t have enough information about it. It is a way to earn bitcoins in exchange for operating the process of verification to validate transactions involving bitcoin. Such transactions provide security to the cryptocurrency’s network, and in turn, give bitcoins to the miners for compensation. 

How do miners get profit?

Miners can profit if the price exceeds the cost involved in mining bitcoins. There have been recent changes in technology and mining devices. Professional mining centers with enormous computing power and the shifting price of cryptocurrency have been emerging. All of this has changed the mining scenario. 

Whether the bitcoin venture is profitable or not is decided by many factors. Let’s not dwell anymore on that. According to recent reports, the mining profitability levels of the bitcoin are on the decline after a sky-rocketed peak. 

China’s breakdown on the mining of BTC and altcoin – began in early summer and intensified in late September. It took a toll on the global hash rate. 

The rise in the profitability appeared till November, but then it declined according to the reports of ANKR price prediction. 

The declining trends

• Bitcoin hash rate almost halved. With less competition from the BTC miners in China, growth was seen at the beginning of November.
• But, from November 9 to December 22, the cash flows of bitcoin mining have reduced by 36%. There was a decline of 28% in bitcoin prices along with an increase in the mining difficulty. 
• The mining profitability fell to the levels last seen in July. 
• Since the end of July, the mining difficulty has been rising because the Chinese miners set up new locations for their operation. With this development came new online investments, especially in North America. 
• The difficulty in mining a bitcoin block adjusts automatically based on the hash rate for keeping the block stable. 

• The biggest miners have many application-specific integrated circuits (ASICs) scheduled for the year 2022. Seeing the fact that the Chinese miners are getting back where they were, the hash rate is likely to be rise again next year, according to the miners. 
• The point discussed above means that there “super profits” witnessed in 2021 will continue to rise in the initial months of the coming year. 
• The world’s biggest mining firms have supported the above points in many interviews, with most of them believing that the hash rate will double next year with more machines at work. 

But at last, profitability depends on the bitcoin’s price. If everything goes well in 2022, you might see the wonders of bitcoin as you have seen in the current year. 

ForexMinute.com – Albert Einstein once said, “We cannot solve our problems with the same thinking we used to create them.” We can indeed guarantee the moralistic contribution of this quote to our lives, but can we ever accept it as a universal truth? The debate is about one innovation, and different mindsets that judges it on different scales.

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Innovation might be nuclear technology, which can be used to generate fear as well as electricity, or it might be a simple gun, which can kill as well as protect. But the question in the end is, were these innovations were considered to be problems when we created them, or did we simply turn them into one, with our unforgivable inputs of ravenousness and greed?

I now would like to shift your mind to a rather meeker creation, known as cryptocurrency. In times of impromptu recessions and inflation, a pseudonymous developer dubbed as Satoshi Nakamoto developed a currency called Bitcoin to introduce an idea to eliminate middlemen from our day-to-day money transactions. The aim here was very simple, your money is yours and no one can take a slack of it from you. That was 2009 – the year of innovation and good intentions.

Initially, Bitcoin was just a phenomenon of good and healthy business transactions. Given a certain belief, the currency got a following. In the interim, it was marketed by emerging businesses and mere speculation increased its value, from $25 to a whopping $1000, within the span of five years.

Cut to the present, 2014! We now see the same currency getting drilled from every corner. Its villainous traits are getting revealed by 1 million satirical tweets, finance blogs and Facebook posts. Countries are accepting it, regulating it, banning it, all at the same time. It is being hacked, it is being misused for money laundering, and it is being doing everything that can complement the synonyms of the word ‘illegal’.

Bitcoin’s value has dropped 40% within the mere span of a month or more. One of Itsexchanges has lost millions of dollars’ worth investments to a cyber-attack. And its investors can be currently found outside the same Bitcoin exchange, wearing a sign-board around their neck, which says “Where is our money?”

Where is investors’ money, and none the least, where is the innovation in all this? It is like people invested their hard-earned money in thin-air, wondering to multiply it and later realized that the thin-air has been stolen, from right under their nose. Hard to breathe isn’t it?

If you ask me, I call it “murder of innovation, executed by greed”. The well-intentioned Bitcoin is now a Bitecoin – a money-making machine for half a year, and a money eating bug for the rest.

What still can be done… in an ideal world?

The time is to again bring the innumerable advantages of Bitcoins to light, as it has been kept in the dark for an extensive period. These currencies can be of valuable assets in times of inflation, depressions and likewise events. The idea is to keep it away from greed and corruption, which our existing finance system has been indulged heavily into. Know that there are only a few financial regulatory authorities that decide the future of the markets, and steal your jobs and homes in the name of recession.