How to Get More Coins With the Same Farm? Overclock of the Graphics Card

graphic card

Many miners who have already begun to receive the first dividends from their farms are beginning to wonder: “How can you improve efficiency and profitability of your home enterprise?”. It is worth noting that there are several ways to achieve this result:

  1. installation of additional computing equipment;
  2. replacement of existing farms with more productive ones;
  3. installation of equipment in places with cheap electricity;
  4. flashing and overclocking of graphics cards.

Naturally, in order to achieve the maximum profit, you must follow all of the above tips. If the first three items are all clear, then the fourth one raises some questions, especially for beginners. Within the framework of this material, we just talk about overclocking of the graphics cards’ memory. Let’s take a closer look at what it is, what it gives and how to do it at home.

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

  1. What is the overclocking of a graphics card and what is it needed for?
  2. Procedure of overclocking the graphics card, software and settings
  3. Changing the memory frequency settings
  4. Adjustment of power consumption parameters
  5. Coolers and cooling system
  6. Conclusion

1. What is the overclocking of a graphics card and what is it needed for?

So, graphics cards are computing equipment, they respectively differ in power, amount of built-in memory, etc. The speed at which a video card can perform calculations is measured in hashrates. Manufacturers of graphics cards, at the software level, limit their real performance. That is, suppose, out of the box the speed will be 24MH/S, but after the overclocking procedure, this figure can be at the level of 26-27MH/S. It may seem not a significant increase, but suppose, if there are 5 or 6 video cards in a single farm, then in the global perspective, the result will differ materially.

2. Procedure for overclocking the graphics card, software and settings

In the beginning, you need to install special software, the program is called MSI Aftefburner. It will be easy to understand it for any person who knows how to use a computer at the user level. Here is its appearance:

graphic card

The interface, though simple, but it has everything you need:

  • Temperature Limit;
  • Memory Clock;
  • Core Clock;
  • Core Voltage;
  • Fan speed;
  • Power Limit.

3. Changing the memory frequency settings

In the market there are a huge number of different video cards and they are also reflashed in different ways. On some, performance improvement is achieved by adjusting the RAM frequency. Here the big role is played by the manufacturer of operative memory. Ideally, if the RAM in the video card is from the South Korean giant (Samsung). They are quite amenable to overclocking, without loss of stability. There is no single meaning, you need to try and test your equipment in the field. Start the mining process and observe how the adjustments influence it.

4. Adjustment of power consumption parameters

How can anyone achieve increased productivity, while reducing power consumption? Such a scenario is possible, but only under certain conditions. For example, when mining Ethereum, you can turn off the graphics core, then the power consumption will decrease, and the memory frequency, on the contrary, will grow.

5. Coolers and cooling system

After the video card is overclocked, you should take care of the cooling system. In MSI Aftefburner there is a whole section that is responsible for the operation of coolers. In this section you can make adjustments using a special schedule.

It should be understood that the higher the fan speed, the faster it will fail. But we strongly advise not to regret it, as buying a new powerful graphics card for mining will be much more expensive than replacing one cooler. Do not allow the equipment to overheat, this could damage it.

6. Conclusion

The process of overclocking the graphics card 1060 and other miners is not anything complicated. In order to do it yourself, you just need the desire to learn, to experiment. To do this, elementary knowledge in the PC is enough. Increasing the productivity of equipment, you can achieve a significant result.

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Bitcoin Mining: How Are the Most Popular Coins Mined Today?

How to mine BTС today?

Quite a lot of people really managed to make a fortune out of Bitcoin mining. And many still manage to do so today. In this article, The Coin Shark will tell what mining is, how the most popular cryptocurrency is mined today, when the latest Bitcoin will be mined, what are the prospects of the digital currency mining industry and other things that every crypto-enthusiast is interested in.

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

  1. What is mining?
  2. How is Bitcoin mined?
  3. How many Bitcoins can be mined and what’s the time period for that?
  4. Types of Bitcoin mining
  5. Prospects of Bitcoin mining
  6. Conclusion 

1. What is mining?

Today, even those who are not really familiar with cryptocurrencies have definitely heard something about mining. However, it is not always clear what it actually is.

Mining is a computing operation. In fact, this is a kind of an attempt to solve a complex mathematical problem. The particular “X” that must be found as the result of the calculations is called a hash. If it is successfully found a new block is generated in the cryptocurrency blockchain. A block is a structural unit where the information about cryptocurrency transactions is recorded. It is sometimes not that easy to get all those terms, so let`s take a look at a rather simple example: a block is a kind of a banknote. Any banknote is a legal tender only if it looks in a certain way. It has a special design, watermarks, other security features, particular density, etc. Each banknote must meet certain specified parameters, otherwise, you will not manage to buy something for it and it will be just a piece of paper. The same thing with cryptocurrencies! Transactions are confirmed by being recorded into the blocks, and the blocks must be valid, must have a particular form. To meet this form, to generate a valid block, a hash with required parameters should be found as the result of computing operations. And that is exactly what miners are responsible for!

2. How is Bitcoin mined?

Bitcoin is a Proof-of-Work algorithm-based digital currency, that is why BTC is mineable. Proof of work actually means that transactions are confirmed, and the blocks are generated only if a certain work is done – new coins are issued only when one has managed to find the hash and create a new valid block. Every new block is generated approximately once every ten minutes. The Bitcoin code is written in such a way that, depending on the computing power in the network, the difficulty of the hash varies. In other words, the more powerful the miners are, the more difficult it is for them to find the hash. That is how the system maintains the balance between the available computing power and the complexity of the calculations. It does not matter whether only several personal computers are engaged in Bitcoin mining (as it was in 2009) or huge industrial mining farms (as it is happening today) – it will always take approximately ten minutes to generate every new block.

So, when miners do their calculations successfully and manage to find the hash, they are rewarded. This reward used to be as huge as 50 BTC. However, back then the number of coins was not actually a significant fortune. According to the Bitcoin code, this reward decreases by half every 210 thousand blocks. Since each block of Bitcoin is generated in about 10 minutes, it takes about four years to get 210 thousand blocks. So, every four years the reward is reduced by half. In 2012, there was the first reduction from 50 BTC to 25. The next reduction took place in 2016. Today miners get 12.5 Bitcoins for each generated block.

3. How many Bitcoins can be mined and what’s the time period for that?

It is only possible to mine a total of 21 million BTC. This maximum amount of cryptocurrency is provided by its programming code. First of all, this limitation is designed to prevent inflation and preserve the value of Bitcoin. Actually, those things are usually valuable, that have a limited supply, and if Bitcoin had an unlimited emission, like Ethereum and some other virtual currencies, it would have been potentially subject to inflation. As of mid-October 2018, according to coinmarketcap, the number of BTC coins in circulation reached 17,332,325, which means that only a bit more than 3.5 million coins remain to be mined. It would seem not a big deal – almost all Bitcoins have already been mined! But truth is, it will take more than a century to mine the remaining coins!

So, let’s see how long will it take for miners to get all Bitcoins. To calculate this, we should make several mathematical operations. Of course, these operations are not as complicated as those required to find Bitcoin hash. The computing power of your calculator will be enough! So that is what we have:

The reward is reduced by half every 210 thousand blocks (approximately once every four years). Accordingly, the number of coins issued will decrease every four years. So, 10.5 million BTC was issued during the first “four-year cycle”, when the reward for each block was 50 BTC. Then the number of coins is reduced by half with each cycle. According to this formula, the very last BTC will be mined about the year 2140! Interestingly, in the first seven “four-year cycles”, miners will extract 99% of the coins, and it will take more than a century to get the remaining 1%.

4. Types of Bitcoin mining

About ten years ago, when the first peer-to-peer decentralized payment system with a cryptographically protected digital cash (yep, it’s all about Bitcoin) was launched, there was only one, or perhaps several miners, in the network. Probably it was an ordinary PC or laptop owned by Satoshi Nakamoto – the mysterious Bitcoin developer – and maybe some other PCs owned by those involved in the development of Bitcoin. So initially users were able to mine Bitcoin using their own devices. The computing power of their processors was enough to perform necessary calculations and find Bitcoin hash. This type of mining was called CPU-mining. However, with the growing popularity of Bitcoin, more and more people joined the system, the load and difficulty increased, and eventually, it became clear that even the most powerful PC had not enough power to mine Bitcoin effectively. A casual user with his laptop was left behind. And the reason is that a probability of getting a reward is equal to the ratio of your individual computing power to the power of the entire network. So a new solution was found – users started mining Bitcoins using the computing power of video cards. That new type of mining was called GPU-mining. Several video cards were connected to a computer and the entire powerful device used special software to mine BTC. Today, a number of cryptocurrencies can still be mined using processors or video cards, but this is not working out with Bitcoin. To be able to find Bitcoin has users should make really complex calculations and special high-performance devices are required. These are ASIC-miners – a special equipment with high computing power and price.

Today users who have special equipment for BTC mining combine their computing power in special mining pools. Pools are groups of miners who use their computing power together and jointly perform the operations necessary to obtain Bitcoin hash. The probability of getting a reward is much higher than if users mine the cryptocurrency solely. This reward is then distributed in proportion to the computing power “invested” by each individual miner.

Moreover, cloud mining is also relatively popular. This, in fact, means that a user simply rents computing power from owners of large mining farms, who are often the manufacturers of mining equipment. Despite the fact that today this type of mining is gradually becoming less attractive, it still has its advantages – users do not need to buy equipment, place it, set up, maintain its operation, update hardware, pay for electricity, etc.

5. Prospects of Bitcoin mining

Many believe that the mining era is almost over and there are some reasons for this. After all, as we have already figured out, even the cryptocurrency code itself provides a reduction of the reward. If Bitcoin rate does not increase significantly, nobody will be interested in running expensive mining equipment and earning a couple of thousand satoshi (1 satoshi is 0.00000001 BTC).

Today mining is a fairly centralized industry with and it is rather difficult for beginners to join it. Especially for those who do not have a lot of money. Even owners of huge industrial mining farms experience some problems. For example, some of them realize that the equipment they used in 2017 cannot provide the same profitability in 2018. Today BTC mining is largely controlled by mining pools one hand and owners of huge industrial mining farms on the other and this tendency for mining to become more centralized is likely here to stay.

6. Conclusion

So, Bitcoin mining is not a “gold rush” anymore. The increased difficulty made it way more centralized and way less available for casual users. Today, mining still provides big profit for those who own huge mining farms or at least some high-performance equipment. The Bitcoin rate is far from the historical maximum, but nevertheless, it remains quite significant, and most importantly, according to many experts, has prospects for an even greater increase. However, today it is practically impossible to make money on mining without big preliminary investments. Mining prospects depend on the rate of cryptocurrency, and on the other hand, are also predetermined by the Bitcoin programming code itself. However, this predetermination can be defined differently. Yes, the reward is reduced every four years, so mining can become less appealing in the future. But this reduction can be compensated if Bitcoin price increases. Anyway, today many crypto enthusiasts consider other mining options. Sometimes it is easier to mine other coins, and then, if desired, exchange them for Bitcoin. One thing is clear – the mining industry has been changing, and the time will tell,  what will happen to it in the medium term.

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A Church in Russia Was Mining Crypto Illegally

A protestant church in Siberia was accused of illegitimate cryptocurrency mining which resulted in the huge volume of electricity consumption. The church was fined by the court and forced to pay over 1 million roubles (around 16.5 thousand dollars).

The church “Grace” received electricity at a subsidized price and used the excess power for mining. The illegal activities continued from May to August of 2018.

Despite all the evidence that the police have, the church representatives deny all the accusations and claim that such an amount of electricity was required to heat the building of the church and print out religious hand-out materials.

We remind you:

Google Chrome Will Launch Extensions for Protection from Illegitimate Mining and Cryptocurrency Theft

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What is Ethereum Address (ETH address)?

This information will be useful for those readers who are the beginning of their way in the cryptocurrency world. In this article we will talk about such concept as Ethereum address, find out what it is necessary for, where you can find it and see it. So let’s get started.

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

  1. What is Ethereum address and what is it for?
  2. Difference between online and offline addresses
  3. Conclusion

1. What is Ethereum address and what is it necessary for?

To begin with, it should be noted that Ethereum is the second most popular and capitalized coin. It has significant differences from the flagship of the industry with a good sense of the word. Ethereum has a more advanced technological base. For example, Bitcoin, in fact, is only a payment system, and on the basis of Ethereum you can create your own coins and smart contracts. Ethereum is a platform from which, potentially, a great number of companies and individuals can operate.

So, we are over with the introductory part, now let’s get to the essence of today’s question. ETH address is a certain unique set of letters and numbers, with a help of which a specific wallet can be identified. It is necessary to transfer coins from one wallet to another. It can be easily shared, since knowing it doesn’t reveal any important information about the owner and the state of balance.

Only the owner can receive the address. To get it you have to run the wallet application on a computer or mobile device. Without any doubt, in the interface of any crypto wallet program (there is a large number of services for storing Ethereum) you will find a special button that will automatically generate the wallet address.

2. The difference between online and offline addresses

If you are just starting your crypto journey, then you probably do not know that there are different types of digital wallets. We will dig into this topic too deeply, but just describe the main points. More information about the classification of wallets can be found on our website. So, the wallets can be:

  • Online. These include web-wallets and personal accounts that are on the exchanges. This is the most insecure, but the most convenient way to store and exchange coins.
  • Desktop and mobile apps. These are so-called hot wallets. They are more secure than online solutions, but with their help it is no longer possible to make transfers so quickly.
  • Hardware wallets. They are the safest way to store coins, since it is virtually impossible to hack them and get access to assets. But they are very inconvenient for every day use. This type of wallet is ideal for long-term storage.

So, you can get an Ethereum address both online and conditionally offline, on a desktop or mobile wallet application. Сonditionally offline, because even if the wallet is physically located on the computer, you need access to the Internet to work correctly. There is no principal difference between online and offline addresses, the only thing is that coins will arrive either on an online wallet, or on a desktop or mobile application.

It is very important to use only official wallets for storing ETH or any other coin. Since they are best optimized for work with this or that blockchain, and also have more advanced level of security than a service that was developed by third-party developers.

3. Conclusion

Everything about cryptocurrency topic seems so complicated, but this is only at first glance. Of course, the wilds of cryptography and the operation of algorithms are not easy, but for ordinary users such information is absolutely useless. The knowledge that is necessary in order to use cryptocurrencies can be obtained by any average person in the shortest time possible .

So, in this article, we discussed what Ethereum address is and found out that this is only the identifier of a certain wallet and is needed to transfer coins from one account to another.

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Bitcoin Investment: Should I Invest in Bitcoins?

Bitcoin currency has already been used as a kind of a fiat money alternative for about 9 years. It is relatively popular all around the world. The first digital currency has made many people go nuts following the impressive ups and dramatic downs of its exchange rate.

Today, in October 2018, the whole cryptocurrency industry is looking forward to observing a new crypto-“miracle”. Search engines are overflowed with all those “How to invest in cryptocurrency?”. And this is not particularly surprising. Traders and different investors who own a significant capital expect cryptocurrency to be a promising investment tool in the long term. And if we talk about cryptocurrency, that basically means Bitcoin. Well, of course, there is a number of altcoins that can be worth making investments, but the first digital currency is definitely the most popular one.  

People still talk about investing in Bitcoin and this topic is interesting for many traders, investors and casual users. So, let’s take a closer look at this issue.

How to invest in Bitcoin

Before making an investment, one should obviously choose the way he or she wants to get some BTC. First of all, it depends on financial capacities. There are indeed many different options to invest in Bitcoin, but we will focus on two main ways that are currently the most popular and probably also the most effective.

Option №1: Taking advantage of the rate differences as a way of BTC investing

You might have already come up with the question, why people are still interested in making investments in Bitcoin when it costs less than $7 thousand per a coin? Well, influencers, opinion leaders, independent experts, and different analysists are confident that we will soon observe another sustainable increase of Bitcoin rate. And that is why many people start thinking about investing in cryptocurrency to make money out of the rate differences.

But what is the way to do that? It is actually pretty simple. All you need is some basics of math. In fact, investors are not really sad about the fall of Bitcoin. Many of them are even happy, especially those who believe that the cryptocurrency has a great future ahead. Today, if a trader purchases a BTC for $6,5 thousand, he or she will manage to make a good profit, in case BTC rate increases. Some really expect it to rise up to $30 thousand, and in this case, it will really be a good bargain. The key point here is whether the rate increases or not, of course.

Option №2: BTC mining

Besides, users can invest the special equipment that is used to mine Bitcoin. You may already know, that each BTC is actually a kind of a reward, given for the performance of certain calculations, necessary to issue new coins. Today these calculations are rather complex and require special high-performance equipment called ASIC-miners. The more users are there in the system, the more difficult are these calculations. This is called Bitcoin difficulty and it ensures that it always takes around 10 minutes to create a new Bitcoin block.

Investing Bitcoin this way means that you can get a certain number of BTC and store it till the rates grow or exchange it for another digital currency like Ethereum.

However, you’d better do not think that these two investment options will bring you fast and easy profit. This is possible only if the cryptocurrency rate increases significantly and in the case of mining, if your equipment has enough performance.

By the way, here is one more option of BTC investing. It`s actually difficult to say that it is a comprehensive way to invest in the cryptocurrency, but, anyway, many people use it today.

Bitcoin faucets

These are special websites, where users can get a reward for making certain easy tasks, usually related to online advertising. These rewards are paid in satoshi. The thing is, that one BTC includes as many as 100 000 000 satoshi, so one satoshi is only 0,00000001 BTC. So it`s actually a tiny piece of the market`s largest cryptocurrency. Investing BTC using Bitcoin faucets is not really effective, as you may never manage to collect at least one single coin.

Is Bitcoin a good investment

Well, if you have already decided to invest in digital currencies then Bitcoin will probably be the best option. Not only this cryptocurrency is a market leader and the most popular digital coin, but also it has relatively good liquidity as compared to other virtual assets. Many cryptocurrency followers believe that Bitcoin has a potential to become the main means of payment in the future. However, there are also those who bet on other digital currencies, as well as those who do not consider virtual coins as an investment option at all.

By far it seems that the question is it worth investing in Bitcoin remains undetermined, so let’s make it a little bit more clear. Bitcoin is relatively anonymous, decentralized and has a limited number of coins available for mining. This is, in fact, why hundreds of thousands of cryptocurrency followers made their decision in favor of BTC.

Anonymity

Investors do not have to disclose their personal data. The information about each transaction is public and everyone can see the address of the cryptocurrency wallets of a sender and a receiver, as well as how many BTC were transferred. However, the information related to owners of cryptocurrency wallets is not disclosed, so the whole system is relatively anonymous.

Decentralization

Bitcoin worth investing, as it has a decentralized management, which means there is no single administrative center. Transactions are carried out directly between users in a peer-to-peer network. However, Bitcoin users still have to pay certain commission fees for transfers of their virtual assets, because every transaction is confirmed and recorded in the blockchain by miners who receive rewards for this. Today small transactions are often not effective at all, as the commission fee is rather big. However, if a transaction is large, the commission fee will be relatively low.

Limited number of coins

Is Bitcoin a safe investment –  “yes” is the answer of many people, who believe that a limited number of Bitcoins to be mined is a strong advantage of the digital currency. It will prevent BTC from inflation.

“Why should i invest in bitcoin?– you may ask. The answer will probably contain both pros and cons. And that`s because Bitcoin has some special features, which are:

  • 24/7 trades, that allow making investments at any time;
  • most indicators have a rather good quality;
  • high volatility;
  • possible positive prospects of cryptocurrencies and, as follows, positive expectations related to Bitcoin investments.

Bitcoin investment trust

The risk remains here almost all the time and no one can guarantee that your money is 100% safe. Here are several examples why it can be rather risky to make investments in the largest cryptocurrency by market capitalization. Yes, Bitcoin still has a decentralized management, however, in a certain way the system is getting more and more centralized. This risk of investing in cryptocurrency is related to the fact that BTC rate starts depending on cryptocurrency exchanges.

Moreover, the significant part of all Bitcoins is owned by those who are engaged in mining or lease out high-performance mining equipment. Making new Bitcoins requires really a lot of computing power and gets more and more expensive. The competition within the system increases and it is almost impossible for casual users to join Bitcoin mining. That is why many people have already switched for other digital currencies that are easier to mine and can be later exchanged for BTC.

In some cases, Bitcoin`s anonymity is also a risk. Anonymous deals can be used for money laundering, as there is no effective state regulation of cryptocurrency transactions.

How to invest in Bitcoin stock

There are special cryptocurrency funds, similar to mutual funds that exist in the world of bonds and stocks. These funds are managed by private parties and it influences the interest rate. For instance, some cryptocurrency funds provide 1-2% per day.

Bitcoin investment strategy

There are two main types of cryptocurrency investment strategy.

The first one: investors buy BTC and sell the cryptocurrency when its rate increases.

The second one: Bitcoin holders trade their digital assets on cryptocurrency exchanges. This strategy is very similar to Forex trading.

Minimum Bitcoin investment

Many people decide to invest in Bitcoin because they hope to get huge profits in the long term. So, even a small investment is considered to be rather promising by many cryptocurrency followers. Eventually, the smaller is an investment – the lower is the risk. But, on the other hand, a really small investment can just be useless. Anyway, how much to invest in Bitcoin remains an open question and everyone has their own opinion.

Who said users can only invest their money? It is also possible to get BTC for free by investing one`s intellectual work. Well, just a bit of BTC, to be honest. Special websites offer users the opportunity to earn satoshi – the smallest fraction of Bitcoin – for the performance of different easy tasks, usually related to advertising. These websites are called Bitcoin faucets.

The main advantage of such an option is that users do not have to invest a single penny to get a piece of BTC, however, the drawback is also rather significant – it will take a really long time to get at least one BTC.

Invest in Bitcoin mining

Mining is actually how new digital currency is issued. Making investments in Bitcoin mining means buying special mining equipment or renting it from different providers. Cloud cryptocurrency mining is also possible. These services lease out their mining equipment for users to rent a particular amount of processing power.

There are some experts who think that cloud mining is actually the best way to invest in Bitcoin, as users don`t have to purchase, set, maintain and update expensive mining equipment.  

Anyway, both traditional and cloud mining still require preliminary investments.

Bitcoin investment sites

Before making investments in Bitcoin, basically, before purchasing it, you should have a cryptocurrency wallet to store your digital assets. Today Bitcoin holders and those who want to join them are lucky to have a large variety of different cryptocurrency wallets. These are, for example, mobile, hardware, online, desktop, cold, and even paper wallets.

If you are planning regular digital currency investment, we recommend having a local hardware wallet. However, it actually depends on what is more convenient for you and what meets all your requirements and there is really a number of options you can choose from. Do not forget to activate your cryptocurrency wallet.  

Usually, Bitcoin is purchased on cryptocurrency exchanges. It is really important to choose the right one, so we recommend taking the following criteria into account:

  • a region, where the exchange is registered;
  • input and output, exchange, transfer options, etc. – basically, what you can do with your funds in a digital wallet;
  • commission fee level;
  • reputation;
  • security level.

This will help you figure out whether is it safe to invest in Bitcoin.

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Hashrate BTC and Its Influence on the Profit of Miners

Hashrate Bitcoin

Due to the possibility of mining, cryptocurrencies are often compared with precious metals or minerals. Mining of digital coins, especially Bitcoin, is a multi-billion dollar industry. In this article we will analyze what the complexity of mining depends on, find out what a hashrate is, and, of course, answer the main question: is it profitable to be engaged in mining in 2018? So, first things first.

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

  1. Why is the complexity of cryptocurrency mining growing?

  2. What is a hashrate and what does it depend on?

  3. How profitable is mining in 2018?

  4. Conclusion

1. Why is the complexity of cryptocurrency mining growing?

Blockchain consists of a chain of blocks found by miners. This is basically the process of mining new coins. To open a new block, miners have to solve a complex mathematical problem, after which they receive an award in the form of an unlimited number of coins. Each coin has a different reward.

The suppressing number of cryptocurrencies has a limited number of coins, for example, Bitcoin has 21 million coins. Initially, in the Bitcoin algorithm it was put that each new block is generated every 10 minutes, that is, the last coin will be mined not earlier than the year 2140.

At the very beginning the network of the participants was very small, so the complexity was minimal. But with the increasing popularity of the coin, the number of miners increased, and in order to keep to the schedule, it became necessary to take control of the pace of mining. The Bitcoin network reconsiders the complexity at intervals of 2016 blocks. If miners open them in less than 2 weeks, then the difficulty increases, if longer, then it decreases.

2. What is a hashrate and what does it depend on?

For a regular user, such words may seem like rocket science, but everything is not as difficult as it seems at first glance.

The network hashrate is the total computing power of all active miners. The more equipment is engaged in mining, the faster the problem will be solved, and the network, accordingly, will respond with an increase in complexity.

Each processor, video card, asic-miner, etc. has its hashrate (hash / second). Depending on the power of the equipment, this speed may differ, for example, an average video card can provide as little as 15-20 MH/s, and a specialized asic-miner 14-16 TH/s.

To know the complexity of mining, you need to know the hashrate of the network. In order to obtain this data, it is better to go to the official sites of coins or use third-party services that track these indicators online. But it is important to remember that such Bitcoin mining calculators are not always accurate, since the hashrate is a very dynamic indicator. In order to have a more accurate picture, it is better to collect data from different sources and determine the average value. Here are a couple of popular services:

  • https://www.coinwarz.com/charts/difficulty-charts;
  • https://bitinfocharts.com/ru/.

3. How profitable is mining in 2018?

As you can see on this graph, the hashrate of Bitcoin network is steadily growing.

As of September 2018, it is 53 exahash per second. This is a pretty large value, which, unfortunately, makes mining of Bitcoin absolutely unprofitable for most people.

Industry experts have calculated that the complexity of networks of popular coins is growing every month by about 7-8%. For this reason, starting to mine cryptocurrencies with high complexity in 2018 is not really profitable.

There are several options:

  • Invest a large amount of cash in equipment. This will increase the share of reward, but it’s not a fact that it will pay the money invested, as due to the constant increase in complexity, calculating machines can become almost useless. In case of increased complexity even the acceleration of the video card for mining will not help, as it gives insignificant increase.
  • Expand mining of unknown coins, which does not require large capacity. This option is also quite risky, since there is a possibility that this cryptocurrency will not increase in price.
  • Mine the coins that are already widely known, but their complexity has not yet grown to enormous values. For example, Dash, BTC Cash, Monero, Litecoin, etc. In terms of risk/profit ratio, this is the most optimal and balanced solution.

4. Conclusion

The constant increase in the complexity of networks of popular coins, unfortunately, makes their mining an absolutely unprofitable business for the majority of people. In order to succeed in mining, you must always keep an eye on the hash rate and be able to move the focus on the extraction of another coin in time.

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What is Fiat Money?

fiat money

Fiat money. What is that? Why people often use this term talking about digital currencies? Does it have something to do with well-known brand of Italian cars? We are here to provide you with answers! Today, The Coin Shark will tell what are those colored papers that we use to buy things, how fiat money appeared, what is the logic behind our current economy and money and how all these things deal with virtual currencies.

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

  1. What is fiat money?
  2. A brief history of fiat money
  3. Fiat and virtual currency
  4. Conclusion

1. What is fiat money?

We all deal with fiat money nearly everyday. Well, yep, today a huge number of financial transactions is cashless, whether we buy coffee, top up our phone, pay bills or trade currency on the exchange. This is especially true for the developed countries where cash seems to fade away over the medium term. However, we still use cash. Our pockets still make coin sound and we still have some colored papers in our wallets. And these are fiat money.

Money can be cash or cashless. Cash money include coins and banknotes. While coins are made of metals (or their alloys) – mostly gold, silver, copper, but also brass, zinc, platinum, palladium, etc., banknotes are in fact just colored pieces of paper. Yes, they have protective elements, watermarks and so on, but, nevertheless, banknotes have no physical value. “Fiat” is a Latin word for “decree”, “instruction”. So fiat money is a means of payment, that has a value established by the state. In other words, the value of fiat money is not based on the value of the material that they are made of. The paper used to print 100 dollars banknote certainly is not worth 100 dollars. However, the state determines the face value of this paper, and tells everyone that this piece of  paper should be worth 100, another one – 50, another one – 20 and another one – ten. So fiat is actually a symbolic money with no physical value that we are obliged to use as means of payment.

Fiat money is not only paper banknotes. There is also so-called token money or token coins. Their metal value is less than a legal value determined by the state. These are, for example, American coins with a nominal less than one dollar – daim (10 cents), quarter (25 cents) and half (50 cents).

2. A Brief History of Fiat Money

Monetary systems of ancient states and communities were often based on coins that had the same value that the amount of metal they were made from. However, there are also many examples of token coins. Those were often silver coins that were minted with the use of some other metals, thereby actually reducing the physical value of the coin, while its face value retained. Scientists agree that the first known paper money appeared in China in the 8th century. Later, their use developed under the rule of the Song dynasty in the 11th century, and they became widely spread during the Yuan dynasty (13-14 centuries), when the Mongols led by Genghis Khan’s grandson Kublai  conquered the Middle Kingdom.

Long after that fiat money close to those we have today started appearing in England. Bank of England started issuing paper banknotes. By that time banknotes already existed, however, they were not used as means of payment. In fact, they were bank bills that banks gave to depositors, taking a certain amount of money in gold coins. If that was not a nominal note, then it could pass from hand to hand and had no connected with its original owner. Later they became means of payment backed by an equivalent amount of gold. In such a system, the amount of money that was in circulation was equal to the amount of gold deposited in banks. But, as capitalist relations developed, England’s economy required bigger amount of money in circulation, so the central bank started issuing paper banknotes that were not backed by a supply of gold anymore. Nevertheless, in the middle of the 19th century, the government legislatively established the framework of such an issue. It was a certain ratio to the state’s gold reserve. Before World War I, there was a so-called gold coin standard – the amount of fiat money in circulation was provided by a certain number of gold coins stored in banks. Every banknote holder (every owner of fiat money) could potentially exchange their papers for an equivalent amount of gold. After World War I, most of the countries set a gold bullion standard, which meant that banknotes could be exchanged for gold bars weighing 12.5 kg. Everyone who had less money than the price of these amount of gold, had no opportunity to exchange their banknotes for the precious metal. However, banknotes were already backed by goods and circulated in the economy as a means of payment. In the new economic conditions that emerged after World War II, the gold bullion  standard was replaced by gold exchange standard. The United States played a key role there. The country pledged to back the US dollar with a particular amount of gold, given that hundreds of tons of it were accumulated in American vaults. According to that standard only financial regulators of other states had the right to demand the exchange, while the US dollar became a reserve currency. The era of the gold standard ended in the early 70’s, when the US government refused to provide gold at the request of other states. Since then, the international monetary system “was let float freely”. Today, currencies are no longer pegged against gold, they can be freely converted, and the market (supply and demand for a particular currency) plays a significant role in the establishment of exchange rates.

3. Fiat and virtual currency

Today the term “fiat money” is often used in the cryptocurrency community, and often opposed to digital coins. The state i s responsible for the issue of fiat money, it is carried out in a centralized manner by central banks and controlled by state bodies. The rate of fiat money is also set by the state. Cryptocurrency has been considered as an alternative to such centralized and regulated systems. Fiat transactions are managed by financial, tax, banking structures, while cryptocurrency transfers are carried out peer-to-peer without any regulators and intermediaries.

Fiat money and cryptocurrencies have one important common feature – both are not backed by anything. However, in fact, fiat is still backed by goods that can be bought for it. And here is the point where virtual coins have some problems. Even such major cryptocurrencies as Bitcoin or Ethereum still have low liquidity, while other digital coins cannot be used to purchase at least something at all.  Anyway, the cryptocurrency community is confident that this problem lies in the absence of mechanisms, while the demand for digital currencies is and will be rather high, so and their full fledged liquidity is a matter of time.

Today, cryptocurrencies still amount to a relatively small percentage of global assets and cannot compete with fiat money.


Source:https://howmuch.net/

4. Conclusion

So, fiat money is a currency that government agencies declare to be a legitimate means of payment and prescribe to use it at a fixed face value, despite the fact that it has no physical value. Almost all paper money, as well as many coins, are currently fiat money. Fiat is not backed by gold, and today the world economy is actually built on this principle. Cryptocurrency offers an alternative to fiat – decentralized and unregulated payment facilities. However the logic that cryptocurrency is based on is in a way similar to the one that fiat is based on. Unlike the old system, where payment means were pegged against gold, modern fiat money exists in the relatively free market paradigm. Cryptocurrencies went even further, eliminating those elements of strict regulation that remained in fiat money.

Anyway, there are different forecasts related to the future of digital currencies. The cryptocurrency financial system is only developing and can not yet compete with traditional economy and fiat money, of course. Will it be able to do so in the future? Well, the answer is “no” in the short term and “time will tell” in the long term.

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