Mining of the Most Promising Altcoin: What Do You Need to Know About Mining Ethereum?

mining cow UFO

The Ethereum project with its technology of “smart contracts” opened up a completely different path for the cryptocurrency industry. The coin quickly occupied the second position in the global rating of Coinmarketcap, so many miners switched from Bitcoin to Ethereum. In this article we will explain how profitable Ethereum mining is, what it takes to start it and how promising the coin is.

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

  1. What do you need to start mining Ethereum?
  2. Cloud Ethereum mining
  3. Forecasts for Ethereum
  4. Conclusion

1. What do you need to start mining Ethereum?

Let’s go over the list of necessary things that are necessary for the miner:

– a powerful video card, but the optimal option will be 4-6 pieces within a single farm;

– a PC or a farm, which already has Windows x64 installed (it is very important that the 64-bit version is installed);

– a monitor or its emulator;

– uninterrupted access to the Internet (not necessarily high-speed, but preferably wired, not WiFi);

– a mining pool, as solo mining is a rather complicated process that requires very powerful equipment;

– a wallet that supports Ethereum.

2. Cloud Ethereum mining

If you are too lazy to get into the technical nuances of mining farms or pay a good commission to people who are engaged in their assembly, then there is a simpler and uncomplicated way for you to mine Ethereum. Cloud mining does not require any extra time from you. Specialized companies that own entire data centers will gladly sell (or lease) you their own computing power. How does it work? You just pay for a certain amount of a hashrate and look at the precious coins that appear on your account.

If we talk about the financial component of the issue, everything is not so unambiguous. On the one hand, buying physical mining equipment for the same money, you will get more power and will be able to get more coins. On the other hand, farms can break down sometimes, they will have to be repaired and serviced. And if you decide to supply a large amount of equipment, you will still need to take care of the electrical wiring and the ventilation system of the room. With cloud-based mining, all these related costs are incurred by the data center.

It would seem that this is an ideal investment solution, but there are pitfalls as well. Firstly, it is rather difficult to find a worthy company that can be trusted. Secondly, long-term earnings will be lower than in physical mining.

3. Forecasts for Ethereum

You need to evaluate the prospects for the most large-scale decentralized platform for creating blockchain-based applications should not be done from the point of view of standard criteria for cryptocurrencies, such as: transaction speed and commission size. The future fate of Ethereum directly depends on the development speed of competitive projects (Cardano, Tezos, etc.)

Ethereum is currently the most demanded coin. This is caused by the ICO boom, more than 95% of which are conducted on the Ethereum platform. Competitors are still very far from the stability that is provided by the “baby” of Vitalik Buterin.

4. Conclusion

Ethereum is currently the most promising altcoin for mining. You can start doing it even with a small farm at home. If you do not want to bother with the installation and maintenance of your own equipment, you can do cloud mining.

Mining such a promising coin as Ethereum should be seen as a long-term investment, since the project has fundamental reasons for growth in the coming years. Therefore, we would not recommend selling mined coins here and now

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The U.S.-China Trading War Influences Cryptocurrency World, Bitmain Suffers Most

Not long ago, we discussed that Bitcoin was in danger, since Chinese authority was able to attack it any time. The US decided to keep up with opponents and stroke the crypto world of China, namely crypto asset industry.

These two countries are currently in a state of trading conflict, introducing tariffs on goods traded with each other. In June the USA changed the classification of ASIC miner, called Antminer S9, in a way that Chinese miners can be at a loss. That month the “electrical machinery apparatus”, the given category to the ASICs, had a 2.6% tariff.

Later in August, the tariff raised by 25 per cent. At the moment, Chinese mining producers deal with the fee of 27.6 per cent on their US shipments.This action has a colossal impact on Bitmain, the company based in Beijing and being the biggest Chinese mining hardware maker.

Bitmain tried to cope with the pressure by filing for a Hong Kong IPO. It could reportedly rise $3 billion. The company’s filing also mentioned the fact that about 62.8% revenue came from overseas in first half of 2018, though there was no comment on how many sales had come from the US.

The crisis came to Bitmain at a very bad time. IPO filing showed the company’s turnover dropped in second quarter of 2018 drastically, losing about $400 million in compare to $1.1 billion net profit in the first quarter.

One of the analysts, Mark Li, reckons the US tariffs aim at making Chinese hardware less competitive than opponent ones produced in other countries. He also added that Bitmain’s boardship is more aware of technology arms race, where the company is falling behind

The cold trading war between China and States can last for a long time, yet no one is sure how much loss or profit it can bring, we are only able to watch and wait. Now we want to remind you

Mining Complexity: What It Is and Where It Will Get

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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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Roubini vs. Buterin: Why Did Their Conflict Reach Live Debates and What Does McAfee Have To Do With It?

The conflict between two titans of the financial world – Nouriel Roubini and Vitalik Buterin is gaining momentum.

Forbes editor Laura Shin invited famous personalities to move from Twitter skirmishes to real live debates. Roubini and Buterin refused to cooperate with Shin, but they did not abandon the idea to talk live.

Where did it start?

As we reported earlier, an American economist Nouriel Roubini expressed a tough view of decentralization and the creator of Ethereum, Vitalik Buterin, on the Twitter account comparing him with a dictator and saying that “Decentralization in crypto is a myth. It is a system more centralized than North Korea ”.

After Buterin replied to Roubini that the above mentioned statement  is not “a fair characterization”, a long verbal skirmish began with personal attacks:

Conflict development

The more time passes, the more disagreements appear. Arthur Hayes, one of the founders of BitMEX crypto exchange, joined this “dialogue”, proposing to hold a discussion and pay all costs. Nouriel Roubini answered to this proposition no less harshly than Buterin, calling BitMEX “a criminal scam”.

Nevertheless, Roubini wrote on Twitter that he would be happy to discuss with Buterin in live mode. To which Vitalik replied: “Yeah sure why not.” For this purpose, they chose their own moderator, Kevin Pham, who is known not to support either of the sides. Laura Shin’s proposal to become a moderator was rejected because Roubini  have no interest to interact with @laurashin as he considers her biased.

What’s next?

Such a prominent event in the crypto world could not be ignored by the well known crypto personalities. John McAfee, who likes to be in the heart of events, has comically commented on this situation on his Twitter page. We think McAfee would be a good moderator, he would definitely give a sting to this debate.

Jokes aside, such “verbal duels” should end sooner or later, and we hope the live debates will help the opponents understand each other and find a common language.

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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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Vitalik Buterin Find the Term “Smart Contracts” Not Quite Appropriate

buterin doesn't like the name of smart contracts

The technology of smart contracts is undoubtedly an essential part of the Ethereum protocol. However, Vitalik Buterin now regrets having chosen such a name for his creation. Buterin believes that his word choice should have been more technical and “boring” in order to display the full potential of the technology.

Such a comment was caused by the statement of a Twitter user which said that the word “contract” sounds way too legal, whereas crypto should stay away from governmental regulation.

Recently, the founder of Ethereum has encountered a lot of criticism regarding the issue of decentralization.

We remind you:

Vitalik Buterin Has Been Attacked By Roubini

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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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