Mining Complexity: What It Is and Where It Will Get

mining complexity

Not long ago there was a real gold rush around cryptocurrency mining – thousands of people started digging digital rock to get the precious digital gold, while its rate was beating all records and surpassing all expectations. It all started from simple mining on users devices – laptops, personal computers, tablets, etc. – and turned into a complicated industry with a developed infrastructure. Mining pools appeared, specialized equipment (ASIC-miners) was produced, huge mining farms were set up, where mining was conducted on an industrial scale. Mining even partially switched to the cloud – services appeared that offered cloud cryptocurrency mining without any investments, except for financial ones. Although mining has not changed the structure of the world economy, it is nevertheless not an ordinary phenomenon. The fact that currently cryptocurrency mining consumes more electricity than many countries is a case in point.

Today we will talk about what mining complexity, its function, how it changes, what it depends on and how can it set the tone for the entire cryptocurrency mining industry.

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

  1. Brief review of mining
  2. Complexity: how it changes and what it depends on
  3. What will happen to mining in the future
  4. Conclusion

 1. Brief review of mining

Mining actually means making computational operations to decode a certain algorithm and find its hash. Every mineable cryptocurrency is based on a particular hashing algorithm. When the algorithm is successfully decoded, a new block is added into blockchain, a new coin is issued and miners get their rewards. Many popular digital currencies can be issued only through mining, these are Bitcoin and its forks, Ethereum, Monero, Litecoin, Dash, Zcash, etc. Some, however, are pre-mined and do not provide mining opportunities, like Ripple, NEO, NEM, EOS, Tether, etc.

Depending on hash features, different equipment can be used to mine different digital currencies. Initially all mineable coins, including BTC, were mined on users devices (PCs or laptops) using CPU. Today it is not that common and there are a few popular coins that still provide such type of mining. Soon CPUs became not enough to profitably mine digital coins and miners started using graphic cards to cope with more resource-intensive calculations and growing complexity.

Later the specialized equipment appeared on the market – ASIC-miners that are used today to mine Bitcoin, as well as other coins, such as Litecoin, Ethereum, Dogecoin, Zcash, Bitcoin Cash, Litecoin, etc. ASIC is a specialized microchip that performs calculations much faster than graphic cards. Although ASIC today is mostly associated with mining, the technology itself was developed in early 1980s to advance graphic performance of PCs. Besides, miners create pools where they combine their processing power to make mining more efficient for the whole group. The reward for the created block is then distributed depending on the processing power provided by each pool member.

There is also another mining solution – cloud mining. Graphic cards and ASIC-miners are rather expensive, more and more of them are required to mine profitably. The equipment needs space to be placed, has to be connected to the power grid, cooled, cleaned, repaired, set up, monitored, etc. Cloud mining implies leasing of computing power from companies that manage large mining farms and data centers. In addition, cryptocurrency is mined in other sometimes even illegal ways. For example, your computer can be infected with a hidden virus-miner that uses its resources to mine a particular coin.

2. Complexity: how it changes and what it depends on

Complexity indicates how difficult it is to find hash. The specified hash parameters determine how difficult calculations should be to find it. The more users are there in the network and the more cryptocurrency is mined – the higher complexity is. Bitcoin complexity is reviewed every 2016 blocks (about 2 weeks) and depends on how much time was spent to mine previous 2016 blocks.

What is the function of complexity? Bitcoin is designed to add every new block in  10 minutes on average. This can differ from one cryptocurrency to another (2.5 minutes for Litecoin and up to 20 seconds for Ethereum). The amount of processing power in the network can drastically change over time – when Satoshi Nakamoto mined the first BTC, there was only one device in the network, probably a laptop or a PC. Today we have huge industrial farms with thousands of special mining devices.

To ensure the stability of the generation of new blocks, cryptocurrency software automatically makes it more or less difficult for miners to find hash. So if there are more miners and the computing power of the network increases, it is more difficult to find hash. If the power decreases – it becomes easier to make all necessary calculations. This is the way the system remains sustainable – no matter how much processing power is their in the network it will still take around 10 minutes to generate new Bitcoin block. In early 2010, Bitcoin complexity was just a little bit above 1, while in 2013 it was already 3 million. Today it has already exceeded 7 trillion.


Source: BitcoinEnergyConsumption.com

So, every 2016 blocks (about every two weeks), Bitcoin corrects its complexity, so that each block is generated in approximately 10 minutes, regardless of the number of miners in the system. Other mineable cryptocurrencies has the same role for complexity and it is implemented in a similar way.

3. What will happen to the mining in the future

Mining is no longer the same as it used to be – says… everyone. While some digital currencies can still be mined using PCs, it is rather difficult to join the “extraction” of most of the leading coins. To start mining Bitcoin today you should have… started mining Bitcoin a few years ago. The same thing is happening to other digital currencies, and ASIC-miners are to blame in fact. They are able to make calculations way faster and more efficient and wherever they enter the mining market, the total complexity increases and CPU/GPU-mining retires. However, some still manage to make money out of mining. There are still those coins that are not mined using ASIC-miners, which means one can still mine them on average laptops or PCs.

Anyway, one thing is clear – today, mining is no longer stands for easy money, and the market is being taken over by large, “professional” miners, who mine digital coins on an industrial scale. Industrial mining is associated with a whole range of logistics, legal and resource issues. Until recently, most of Bitcoin miners were located in China, but last year the government banned ICOs, cryptocurrency trade and mining. Another thing is energy consumption. Calculations require a lot of electricity, so the miners are looking for countries with lower power prices.

 

Source: BitcoinEnergyConsumption.com

Another problem is obsolescence of equipment. Many industrial miners have found out, that the hardware they used to mine BTC 2017 cannot ensure the same profit in 2018.

So, mining becomes less profitable and new members have no chance to join the market easily. This lead to the fact that mining of top coins becomes way less popular. Not mineable coins, as well as those who still provide available mining can take advantage of that. For example, in 2017 there was a boom for mining browser extensions (like Coinhive). Of course, browser-mining of Bitcoin or Ethereum sounds rather weird, but there is another relatively popular coin – Monero – that still provides such an opportunity.

4. Conclusion

So, complexity is one of the key categories that form a technical structure of mineable cryptocurrencies. Written in the protocol, it helps blockchain to remain sustainable in terms of the time necessary for the generation of new blocks. Complexity directly depends on the number of miners in the network and, accordingly, on the total processing power. Most of the leading cryptocurrencies have already became much more difficult to mine and this is obviously an ongoing process. There are more users, more special equipment and more professional industrial-scale miners which make mining unavailable for average users.  

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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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Top Bitcoin Movies Worth Watching

We bet there is not a person in your circle who has never heard of Bitcoin.  Nowadays, cryptocurrency #1 has become a TV star. Horror films, travel films, and Hollywood thrillers about it are produced. However, few people are aware of the existence of documentaries that illustrate “digital gold” as it is and exhibit its positive and negative sides.

The Coin Shark has collected its own TOP real-life stories about creation of the characteristics of Bitcoin.

1. The Bitcoin Gospel (2015)

The film is dedicated to both technical side of the cryptocurrency and its value in society. It also covers payments with cryptocurrency issue. The film starts with a performance of a Bitcoin evangelist Roger Ver and is basically dedicated to his way in crypto industry. In this film, you will learn how cryptocurrency works, why it is being promoted so much and who else, besides Ver, firmly believes in digital future.

2. Bitcoin: The End Of Money As We Know It (2014)

The documentary shows how much the new cryptocurrency has already influenced and is still influencing the traditional financial systems. Having watched it, you will understand how Bitcoin differs from other currencies and why so many people around the world want to own it.

3. The Rise And Rise Of Bitcoin (2014)

“The Rise and Rise of Bitcoin” is a film-history of the world #1 cryptocurrency. It covers all the events that have ever hit the headlines. Those who are closely connected with BTC will tell why Bitcoin volatility is associated with a rollercoaster ride.

4. Magic Money (2017)

This film is created as an answer to the popular questions about Bitcoin. There you will learn about what cryptocurrency is. The idea that the authors convey- Bitcoin is not controlled by financial institutions, but only by the people who use it. The creators in details investigate the origin of BTC and try to predict its future.

5. The Bitcoin Story (2015)

The Bitcoin Story is a collection of myths and rumors about the creation of Bitcoin, the basics of technology, political influence and its impact on the financial system. Also, the authors have created a collection of opinions of venture capitalists on cryptocurrency.

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Research Shows Interest in ICO Dropped Over 90% Since January 2018

Recently, we have written that Bitcoin and Ethereum are not in trends anymore as the search requests dropped drastically over the year. Unfortunately, ICO is also following the same tendency of decreasing its popularity. Let’s look deeper at the statistic data and reason why this phenomena is happening.

Autonomous Research, a company that provides global investment research in finance, has compared the raised funds by ICOs, token sales over the year.


Source:
https://next.autonomous.com/

Research shows that funds raised by token sales in January 2018 overcame the psychological mark of $2.4 billion, while September investments were less than $300 million, according to the data. It means that the activity has fallen over 90% since the beginning of the year.

Autonomous Research highlights three main reasons that are able to explain the decrease in interest.

The first one is that investors are losing faith in ICOs, recent scams, big hackers attacks, intransparency fuel to the fire. Moreover, they mostly choose equity in companies that offer ICOs.

The second reason is STOs (security token offerings) that highly likely replace real ICOs. This hypothesis was announced by a blockchain mark consultant Michael Spencer:

“In the latter half of 2018 and in 2019 we are therefore going to see a huge rise in STOs, and they may eventually out-duel ICOs.”

Even though STOs provide with bigger security and less possibility of fraud, Autonomous Research still thinks they will not hit the market in the nearest future.

The third reason is the collapse of Chinese P2P lending servicesThe Chinese authorities blocked access to ICO platforms in April this year, though token sale activity remains high in the Asian country. Autonomous Research is still in the process of checking data about China.

We remind you

ICO And Crowdfunding: Who’s Who

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Cryptocurrency Games: Bitcoin Game Review

Bitcoin Games

Today digital currencies are still rather popular, despite the fact that holders of virtual coins are not really happy with the rates of their crypto assets. Some make forecasts that the market is going to increase again, while others assure that it will not take long for digital currencies to fade away. Anyway, many people are still interested in cryptocurrency and are willing to own some coins. That is why there are a number of services that offer to get digital coins without big investments. And some of them even provide users with the opportunity to make some profit while playing.

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

  1. What are Bitcoin games?
  2. Different kinds of cryptocurrency games
  3. Conclusion

1. What are Bitcoin games?

Today bitcoin games, as well as games with other digital currencies, have been becoming quite popular. Well, the opportunity to get some cryptocurrency while playing games actually sounds pretty tempting. There are not really a lot of cryptocurrency games available today, or it is probably better to say that this market is not yet floated. Anyway, online gamblers are likely to find the one they need. Cryptocurrency games basically include two large industries – online gambling and digital currencies – and these two combined may be rather promising. Statistics show the online gambling market is developing rather fast. It is difficult to say whether it is good in terms of moral aspects, but that is our today’s reality. Eventually, not every game is a bad thing of course.

Source – iGaming Business 

Usually, cryptocurrency games do not ensure super high profits. So, if your aim is to earn some good money, you`d probably better try another option. However, as it often happens, some games and some gamers manage to get certain gains.  

Cryptocurrency games are actually similar to fiat online gaming and gambling. Gamers do particular actions and if they are successful, they win and receive a reward. However, gambling is gambling, so it is really better not to forget that having decided to play a little bit just for fun, one can end up spending all their digital coins.

2. Different kinds of cryptocurrency games

Today one can find a quite large number of different cryptocurrency games. These are, for example, lotteries, where participants make bets, and then some of them win. Here are a few popular Bitcoin lotteries. Let’s start with Lottoland. This lottery is officially registered in Ireland. There are certain restrictions in terms of jurisdictions and users from some countries, including for example the USA, are not allowed to take part. In addition, participants must be over 18. This online service provides also fiat money lottery throughout Europe and in fact, does not specialize only in cryptocurrency. The lottery website states that the service even has the Guinness record for the largest online gambling payouts. The service offers a jackpot of as much as 1000 BTC and even gives the winner an opportunity to choose between receiving this amount of virtual currency on the Bitcoin wallet or getting the equivalent amount of euro. There are also other lotteries – the multi-cryptocurrency game Crypto-Games, FaucetHub micropayment platform that also provides the online lottery, YABTCL.com with its free lottery, etc.

Also, cryptocurrency online casinos are relatively popular. Such services usually offer to play classic roulette, slot machine, blackjack, etc. Spin games like FreeBitco.in offer to win up to several hundred US dollars in BTC equivalent. 16.5 thousand users of this service altogether won almost 160 bitcoins. Yes, the winnings here are relatively small, but still, many crypto enthusiasts will be glad to get even some satoshi without any investments.

There are also arcade cryptocurrency games, for example, the Spells of Genesis. This arcade-strategy is one of the first online games based on the blockchain technology. The gameplay includes battles and economics in a fantasy world. The main asset of the game is BitCrystals coins (BCY). Currently (as of early October 2018) this cryptocurrency costs around $0.08 and is traded mainly on Bittrex, where users exchange it for Bitcoin.

There are even games that involve cryptocurrency trading. For example, Spark Profit players receive rewards for guessing the rate of digital assets and market fluctuations. The service offers the opportunity to receive rewards without investment and without the risk of losing money.

It is interesting that even some existing online games have decided to add popular digital coins to their list of assets. This is how BitQuest appeared – the public server of the popular game Minecraft, where you can find and use real BTC.

3. Conclusion

So, today cryptocurrency games are rather popular among crypto enthusiasts. A wide variety of projects have already been developed – from classic online gambling (casino, roulette, lotteries, spin games) to arcades and financial strategy games. Many traditional online gambling platforms have added cryptocurrencies to the list of their gaming assets.

It is important to make sure that this or that game is really reliable and makes the necessary payments. If the market of digital currencies grows and their popularity increases, then, accordingly, we will observe the development of a cryptocurrency online gambling segment. Though games provide an opportunity to make easy cryptocurrency profits, one should never forget that a game should remain a game, and to go all-in may not work out as it was initially planned.

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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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Bitcoin Core Developers Introduced Update 0.17.0: Review of Innovations

Bitcoin Core 0.17.0

The creators of Bitcoin Core announced the release of a large-scale update for the most famous client Bitcoin. The updated version of the client had been developing for more than six months, headed by Wladimir van der Laan. The upgrade is based on almost 700 users’ suggestions.

The new version contains the “branches and borders” algorithm, which was created by BitGo developer Mark Ehrhardt. It is he who provides two important improvements:

1) The commission for each fragment is calculated before it becomes a part of the transaction.

2) The algorithm tries to compare different fragments in such a way as to obtain an amount as close to the one requested by the sender as possible.

Bitcoin Core 0.17.0 contains a lot of new features. All of the weak spots of the previous version have been fixed. The choice of coins in the new version is optimized: now they are stored in wallets as separate parts, the process of creating and using wallets is also significantly simplified. Users can create them through a graphical interface at any time. The developers ensured compatibility of HD and non-HD wallets, provided an opportunity to create unique wallets intended only for viewing, and also implemented partially signed transactions and reduced the blockchain volume.

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