Boxmining

Tag: Bitcoin

  • Bitcoin Mining will make a HUGE comeback in 2020

    Bitcoin Mining will make a HUGE comeback in 2020

    2020 is a huge year for Bitcoin mining. Huge changes to the mining ecosystem – changes that will spark another “gold rush” for mining. This will be spearheaded by two factors – the release of new more efficient mining hardware known as ASICs and Bitcoin halvening. The release of new hardware will give new players a bigger advantage in mining due to the efficiency factor – new ASICs generate more hashpower with less power. (https://www.sliderrevolution.com) We’re already seeing large funds like Fidelity Investments building large mega-watt mining facilities in North America and other continents. You can hare about the North America mining explosion in this podcast. This marks the return of mining as a major investment opportunity this year.

    Cryptocurrency Mining is a $6 Billion+ USD per year industry

    Sizes of Exchange, Mining, DeFi and ICO industries respectively

    One well-kept secret of the mining industry is the huge profits being generated by cryptocurrency miners (Bitcoin, Ethereum, DASH and Monero mining). Let’s start off with an industry Fact – every day $19,000,000+ USD dollars worth of cryptocurrencies are being produced by miners across the world. This means a total of $6.8 Billion dollars will be mined in 2020 alone. The biggest currency being mined is Bitcoin – with a 1,800 bitcoin being produced per day totalling to a value of $15,833,340 USD. To put everything into perspective, the ICOs only raised a total of $371 Million in 2019 according to icodata.io. Mining is currently the second largest industry behind exchanges (source: Bloomberg).

    Miners upgrading and replacing older hardware (often confused with “miner capitulation”)

    Ironically the miners have perpetuated myths such
    as “mining is not profitable” or “the bitcoin mining death spiral” to deter
    new players coming into this profitable space    . Many reports in 2019 have
    featured erroneous calculations that Bitcoin mining is not profitable. This is
    because researchers have incorrectly assumed that miners are getting
    expensive commercial electricity costs     of $0.07-12 cents per kilo-watt
    hour. This is far from the truth – mining operations receive considerable
    discounts as they purchase low priority power (meaning they will get cut off
    grid in the event of a surge in power usage). The actual figure is in the range
    of $0.01 – $0.03 per kw/h. This means miners are generating large amounts of
    profit. It is the biggest industry in the blockchain space, and yet it is
    surrounded by both mystery and false information.

    New
    Hardware (ASICs) is game changing

    New high efficiency Bitcoin mining hardware is coming in 2020 will be a huge game changer. Bitmain will be releasing the new Antminer s19 based on the 7nm manufacturing process. Competing ASIC manufactures are also making new chips, with Innosilicon and Canaan hot on the heels. This die shrink increase the hashpower of chips whilst reducing power consumption at the same time. These two factors mean these new units will be more efficient – the biggest factor contributing to Bitcoin mining profitability.

    Hashr8 – New MiningOS

    New Hashr8 OS

    New operating systems dedicated for mining cryptocurrencies such as Hashr8 are also being launched this year. These OSes will make it easier for commercial, enthusiast and retail miners to improve mining efficiency and management. This is a huge positive trend for the industry as a whole as it makes professional tools mainstream and accessible to the general public. This will level the playing field and reduce the gap between large-scale miners.

    Sources

    Size of Defi Industry: https://defirate.com/defi-growth/
    Cryptocurrency Exchanges: https://hackernoon.com/where-the-multi-billion-dollar-cryptocurrency-exchange-industry-is-headed-f697af6fd7c0
    MinerUpdate: https://minerupdate.com

  • Why the PUMP? Reasons for why Bitcoin prices always move in short bursts and how can we benefit from it?

    Why the PUMP? Reasons for why Bitcoin prices always move in short bursts and how can we benefit from it?

    Why does Bitcoin always “pump” in short periods of time? Can we benefit on this type of price action. Are OTC Bitcoin trading volume flows responsible for this type of price action and how do we learn about Over-the-Counter trading.

    In this article, we’ll tackle one of the greatest mysteries in the Bitcoin and cryptocurrency investing space – namely why does Bitcoin prices have drastic price movements in short bursts of time. This type of movement is almost commonplace in Cryptocurrency investing, for example just today Bitcoin prices moved from $8150 to $8450, then to $8800 in the space of 4 hours, with two big green candles leading the charge. What’s also surprising is that there is no fundamental reason to cause these movements – they are not triggered by a single world or political event. In this article we’ll look at the must possible reason behind what’s happening.

    Let’s get one thing out of the way – sudden Bitcoin pumps are not executed by a large group of people with small amounts of money. If this was the case, this group of people would have to be well organised, and information about such pumps are bound to leak out. We would know well in advance of the event happening. It would be common knowledge – especially considering how fast information spreads.

    This leads to the next conclusion – Bitcoin pumps are executed by small groups of people with access to the OTC market. We already know the world has high wealth concentration – 1% of the world has 99% of the wealth. The 1% can easily transact enough fiat to cause these sudden shifts in the price intentionally or otherwise.

    This theory is validated by reports of strong OTC volume flow in the past few weeks. This is across all trading desks around the world, especially with strong volume coming out of China and Southeast Asia. Recently reports have surfaced that OTC desks such as Genesis Block are expanding and opening new offices in Thailand to deal with the extra volume.