Should I Buy Bitcoin Today?

bitcoin investment

The market of cryptocurrency is not having the time of its life now. Many people, who made investments in November-December of 2017 because of hype, have suffered severe losses, and nobody knows when the situation changes for the better. Thus, a large number of people are interested in the global perspective of Bitcoin and other coins, whether is it worth investing in digital currency and what to wait for in the nearest future. In this article we will try to analyze the situation and share our thoughts on this matter with you.

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

  1. What is happening to the market?
  2. Advantages and disadvantages of the leading cryptocurrencies
  3. Should you invest in cryptocurrency now?
  4. Conclusion

1. What is happening to the market?

Earning on investments in coins with a large capitalization in 2018 is, unfortunately, not really possible. The market lost about 75-80% of its capitalization in 6 months. In such a situation, only traders who speculate for fall (do shorting) or ICO-investors can earn on cryptocurrencies.

Now let’s take a look at the situation from a different angle and evaluate the growth rate of the cryptocurrency market over a longer period of time. As many experts say: “Investments need time, just like good wine.” And if you look at the 12-month graph of the cryptocurrency market capitalization, you can clearly see that the growth is about 280% per annum, and this is at the lowest point of correction. 

market cap1

According to https://coinmarketcap.com

Two years ago we could see an increase of investments by about 2200%. You can go deeper into the history of cryptocurrency, but these figures make it obvious that the market is still liquid and growing if you look at it in the long term.

market cap2

According to https://coinmarketcap.com

2. Advantages and disadvantages of the leading cryptocurrencies

Each coin is a separate company, with its employees (a team of developers), an idea, a technological base, etc. Each cryptocurrency has its own strengths and weaknesses. But if we are talking about the largest projects, we should single out two unconditional leaders: Bitcoin and Ethereum.

The most popular and the oldest cryptocurrency is Bitcoin, which has the most reliable and large blockchain. This coin can claim the title of digital gold, since it has some common characteristics with this precious metal (increase in the complexity of extraction, limited emission over time). The main disadvantages of the system are slow transactions (block generation takes about 10 minutes) and low bandwidth.

Ethereum has a much more advanced technological base than a cryptocurrency flagship. It is a huge platform, where you can run third-party decentralized applications. The main feature of the project is the technology of smart contracts, which can remove any intermediaries from the chain of interaction between the parties. Among the problems that Ethereum has, we can name inflation of the coin. The development team plans to switch to a new PoS algorithm in the future, which will help to reduce the inflation rate by about 20 times. However, nobody knows when it is going to happen.

3. Should you invest in cryptocurrency now?

There is no clear answer to this question, as no one knows what will happen to the industry in the future. However, if you analyze the news background more carefully, you can notice the global infusion of money into infrastructure development by the major market players (Goldman Sachs and other investment funds, as well as whole governments of individual countries, for example, India). It would seem that Bitcoin has fallen, the bubble has burst, but no, rich people are investing billions of dollars in new exchanges, farming farms, etc. Considering all this, we can conclude that the world’s major figures are betting on the cryptocurrency market and nothing bad will happen to the industry in the global sense at least in 3-5 more years.

4. Conclusion

The cryptocurrency market is not having the time of its life now, but if you look at it at a slightly different angle, it becomes clear that this is just another phase that will not last forever. What will happen to Bitcoin in the future is not 100% known to anyone, but the big players come to this field and, thus, we can conclude that we can be waiting for new historical highs in the coming years.

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BitPay Transactions Surpasses $1B in 2018, B2B Payments Records 225% Increase

BitPay is a US-based bitcoin payment provider which has recently announced its financial results of the past year. The company has processed over $1 billion in transactions alone. Moreover, its B2B payments record 225% increase in compare to 2017.

The main reason of such a lift-off is that Bitpay added a lot of new clients, like Dish Networks, HackerOne, and the State of Ohio, as well as many other law firms, data center providers, and IT vendors.

The CEO of BitPay, Stephen Pair, commented on this development:

“BitPay’s B2B business continues to grow rapidly as our solution is cheaper and quicker than a bank wire from most regions of the world. To process over a $1 Billion for the second year in a row despite Bitcoin’s large price drop shows that Bitcoin is being used to solve real pain points around the world.”

BitPay mostly supports Bitcoin transactions, however, it also supports payments with Bitcoin Cash, Gemini, and Paxos. During that year a lot of companies had to lay off their employees due to the market situation, yet, Bitpay conversely increased its manpower by 78 percent in the past year.

In addition, BitPay is attractive to the investors, in 2018, it raised $40 million in Series B funding round taking the total raised capital to $70 million.

We remind you

Two European Finance Regulators Urge the EU To Adopt Crypto and ICO Rules

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A Video Gamer Received a 20-Bitcoin Donation on Twitch

A video game player under the nickname Sick Nerd received a donation from an anonym in the amount of 20 Bitcoins when playing the game RuneScape and streaming it on the platform Twitch.

Sick Nerd mentioned this on his Twitter:

At first, the streamer received only 4 BTC. He didn’t take it seriously right away, but kept receiving new donations in cryptocurrency. Overall, Sick Nerd became richer by over 20 BTC during his streaming session.

This is the largest crypto donation sent to a video game player ever, and, of course, the largest donation ever received by Sick Nerd (more than 70 thousand dollars).

Cryptocurrency keeps making its way into every sphere of human activity, and video games are no exception. We remind you:

Cryptocurrency Games: Bitcoin Game Review

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“51% Attack” Hit Ethereum Classic: A Full Analysis Of The Process

As we have reported earlier, Ethereum Classic was hit by 51% attack, it means that hackers obtained more than 50% of network’s mining hashrate.

A Malicious “51% Attack” Hit Ethereum Classic, The Loss Allegedly Accounts For $460 000

Slowmist, Chinese-based blockchain journal, has released a full report on the attack. The earliest hit occured on January 5, the culprit hacked some exchanges, like Bitrue, Coinbase, Gate.io, however, this was noticed only two days later.

The first action was a transfer of more than 5000 ETC from Binance to the criminal’s address 0x24fdd25367e4a7ae25eef779652d5f1b336e31da. This amount of coins moved to a mining node, that created block 7254355. After that, the hacker deposited 4000 ETC to Bitrue exchange in block 7254430, yet, this transaction vanished from the Ethereum Classic chain. Another 9000 ETC was stolen in the same way. The Bitrue address 0x2c9a81a120d11a4c2db041d4ec377a4c6c401e69 no longer exists, and the official history is clear. Though, Bitrue managed to save some records:

The scheme of the hacker attack is simple:

  • make a deposit;
  • withdraw to a safe address;
  • to double coins – just move the coins to other addresses.

One of the biggests victims is Coinbase exchange. It was estimated that the loss from the attack accounts for $1 million. The above-mentioned report also provides the information about two attacker addresses which were blackmailed by Coinbase later. They are:

– 0x090a4a238db45d9348cb89a356ca5aba89c75256
0x07ebd5b21636f089311b1ae720e3c7df026dfd72

In Twitter, one of users (nickname: @OGBTC) claimed that he knew the culprit personally.

https://twitter.com/OGBTC/status/1082559086070136832

Another user (nickname: @sebseb7) indicated that it was he who knew the hacker.

The “51% Attack” is over for now. All we can do is to estimate the losses and to take measures so that it will not happen again.

The report also stated:

“[W]e recommend that all digital asset services platform block transfers from the above malicious wallet addresses. And strengthen the risk control, maintain a high degree of attention, and be alert to double spend attacks that may erupt at any time.”

We remind you:

The Dark Overlord Threatens To Reveal The Truth of 9/11 Attacks Unless Ransom in Bitcoin is Paid

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How to Get Bitcoin And How Profitable is Mining in 2019

Appearance of Bitcoin has marked the beginning of a new era in development and dissemination of money. 2018 became a crucial point for cryptocurrencies. In this article we will talk more about Bitcoin mining, find out what is needed and how to earn from it.

1. What is Bitcoin mining?

BTC mining is carried out with the help of specialized computer equipment, so-called Bitcoin farms. In order to open a new block, the miners resolve complex mathematical problems, for which the network rewards them with X number of coins.

Bitcoin algorithm is designed in such way, that every 210 thousand blocks the reward decreases exactly by twice. At the very beginning, miners received 50 coins for each new block, then this number was reduced to 25, and now this value is 12.5 BTC.

2. What are the ways to get Bitcoins?

Bitcoin is the most popular cryptocurrency in the world, many people would like to become its lucky owner. Here are some ways to do it:

– Bitcoin faucets. This is an absolutely free method to get coins. It lies in performing various simple tasks, such as decoding and entering captchas, clicks on advertising links, browsing advertisers` websites, etc. This work is absolutely simple, but it requires  patience. We want to remind you, that reward for such work is purely tokenistic and it is not possible to earn decent money from Bitcoin faucets.

– Mining. This method means investment into equipment. It can be completely different: you can organize home mining on graphics cards spending 2-3 thousand US dollars on it, or you can build a huge data center by investing hundreds of millions of US dollars into this enterprise. Thus the income should be directly proportional to the initial investment. Unfortunately, today cryptocurrency is so volatile that it is impossible to calculate how much profit Bitcoin mining will bring in 2019.

– Salary in crypto. Nowadays, the fact of getting salary in cryptocurrency is no longer supernatural. Yes, it is still uncommon, but it is far from single instance.

– Purchase. The most obvious way to get cryptocurrency is to purchase it. Nowadays, you can buy Bitcoin using a large number of services (exchanges, currency exchange offices, individuals, etc.).

3. What is needed in order to start BTC home mining ?

In general, this is rather a broad theme, but in this article we will only briefly run through the main points, without which home mining is impossible. So you need to:

  1. Buy equipment for mining (graphic cards or ASIC miners).
  2. Create a Bitcoin wallet. Without this it will be impossible to get coins.
  3. Select a mining pool. Nowadays the hash rate (total computing power of all the miners) of Bitcoin network is really huge, that is why the algorithm constantly increases its overall complexity. This is why it will be very difficult for one miner to open a new block even with sufficiently powerful equipment.
  4. Install a special software for mining.
  5. Follow the process and, if necessary, repair or replace the components.

You should also remember that mining equipment (especially ASIC-miners) make a noise and heat up while working, therefore installment of farms in a residential house is not a good idea.

4. What is cloud mining?

There is another way to start mining Bitcoins. This is a cloud mining. It does not involve physical contact of person with equipment. A user buys a certain amount of computing power at a large data center and immediately starts to get income from it. So, how is it better to mine Bitcoin, on your own or using cloud? Everyone will find his own answer. Definitely, profit of home mining will be higher, but cloud mining will ease your pain associated with farm maintenance. Someone is willing to pay for his or her comfort, but another one would prefer to do everything by independently, therefore, everyone decides on one’s own.

5. Which video adapters work best for Bitcoin mining?

Each particular video adapter has its own payback period, which directly depends on what is happening on the cryptocurrency market. 2019 has just started, so here is the list of the most cost-effective video adapters for BTC mining in 2018:

  • NVIDIA GTX 1080 TI.
  • NVIDIA GTX 1070 TI.
  • NVIDIA GTX 1070.
  • RADEON VEGA FRONTIER EDITION.
  • RADEON RX VEGA 56.
  • RADEON MINING RX 470.
  • NVIDIA P106-100 (GEFORCE GTX 1060).

6. How to calculate Bitcoin mining correctly?

Bitcoin rate is very volatile, network hash rate is also unstable, so, it is almost impossible to calculate exactly the mining profit. But there are convenient calculators which will help you to find out at least approximate numbers.

7. What does BTC rate depend on and what will happen next?

Bitcoin price varies in the trading range of USD 4000.00. Bitcoin emission is limited and it amounts to 21 million coins. Over 17 million ones have already been mined. But it is necessary to recall a double decrease in the remuneration for a found block, which occurs every 4 years. It is easy to calculate that over the next 30 years, more than 99% of all coins will be mined, and the remaining 1% will be mined over the next 100 years.

According to the laws of economics, this feature makes Bitcoin a very valuable and, most importantly, a limited resource. Now Bitcoin capitalization is about 70 billion US dollars, and it is absolutely a wasted number from the world scale perspective. Many market experts predict a great future for this coin, for example, John McAfee believes that 1 Bitcoin by December 2020 will be USD 1,000,000.00.

If to take a look at Bitcoin chart for the entire history, one can see approximately the same picture of what is happening: rapid growth, prolonged correction, stagnation after which the cycle repeats. Moreover, every time during the correction, the media “buries” Bitcoin, and the coin after some time again renews its previous records.

8. Conclusion

Bitcoin mining, as of the beginning of 2019, is not a very profit-making enterprise without major initial investment. Bitcoin mining should be considered more like an investment for the future, when BTC becomes a very scarce asset and its value can literally skyrocket. Well, we cannot do anything but wait and actively monitor the developments.

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GMO Will Keep On Mining Bitcoins at a Different Location

One of the world’s largest IT companies, Japan-based GMO has published its monthly report regarding its mining activities and the profits coming from them.

We remind you:

Japanese GMO Releases a Monthly Update: What Has Changed As For Mining?

Based on the December’s document, the revenue from mining cryptocurrency has dropped down  significantly which implies that immediate measures must be taken.

One of the biggest pitfalls of mining is the amount of electricity consumed and its high price. Thus, GMO made a decision to relocate its main mining center into a different area, where electricity will cost way less.

We will relocate the mining center to a region that will allow us to secure less expensive power supply,” reads the report.

Moreover, the company refuted all the rumors regarding its alleged plans of giving up mining completely. Since 2017, when GMO first engaged into mining, it has earned massive profits and still sees potential in crypto.

As we may see in the statistical data, the mining reward for Bitcoin increased a lot in the last month of December, whereas Bitcoin Cash suffered a hard fall. But the crash of the crypto market and Bitcoin in particular could not be controlled by GMO and affected its business quite badly, making it “move houses”.

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80% of Galaxy Digital’s Shares: Mike Novogratz Has Faith In Happy Future Of Crypto

The CEO and founder of Galaxy Digital Capital Management, Mike Novogratz, announced that he had purchased more than 7 million shares of his company for CAD 7.42 million, that is nearly 5.5 million dollars. This acquisition made Novogratz the owner of 80% of the stocks of the Galaxy Digital Holdings Ltd.

This action suggests that Novogratz is absolutely confident in happy future of crypto and will not give up on it, even though the second part of 2018 was a heinous period for digital coins.

Let us remind you that Novogratz’s company suffered heavy losses in Q1 of 2018, when crypto started to fall down slowly. However, billionaire investor stated that he was “proud” of the company, as it had overcome many difficulties. His positive way of thinking brought mixed financial results of Q2 and Q3 against the downfall of the cryptocurrencies value.

We also need to recall the predictions of Bitcoin price made by Mike Novogratz. In September, he assured everyone that Bitcoin had reached the “bottom” ($6400)  and there would be no way down later. Later, in November, he stated that the price of the world’s first cryptocurrency would exceed $10 thousand by the end of the year.

Unfortunately, most of his predictions did not come true, but this fact does not kill his hope in bright future of the cryptocurrency.

We remind you

Cryptocurrency Rate Dynamics 2018

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