Cryptocurrency mining industry

Cryptocurrency mining industry is pushing the limits!

Cryptocurrency mining industry is getting ahead in the race of crypto mining. As the mining industry broadens, cryptocurrency mining is becoming harder for small-scale miners. Small-scale miners who use their personal computers for mining are facing a real threat from large-scale businesses.

Cryptocurrency mining industry is composed of big businesses who run giant farms of mining. They design and manufacture their own chips and other equipment for mining, for the most cases. As the industry grows, some businesses are becoming larger and larger. Thus, they turn into crypto tycoons. Small-scale businesses which are mostly run by individuals using their own computers are facing a real threat by the larger players. Since the individuals buy the equipment from manufacturers, they have disadvantages compared to industry-scale mining. On the other hand, large-scale miners can buy equipment in bulk and pay for electricity at a reduced rate. Even some industry-scale miners are having difficulties competing others because of their limited capacity.

The fact that all miners control 20 or 30 percent of the coins can induce the industry to be controlled by few players. In other words, as the miners’ coins get consolidated, the industry would be pushed towards being controlled by a group of large-scale miners. Therefore, this can lead to deterioration of the ecosystem. Because the small-scale miners would not be competitive with the big players, that would harm them so much. Also, this may mean the decentralization of the ecosystem is compromised.

Finally, small-scale players are facing computer component shortages since 2017. This demand was not met by the manufacturers. Eventually, the prices of graphics cards went up. Such fluctuations in the prices of components also harm the small-scale miners. This lead some players to go out of the market empty-handed.

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Competition in crypto mining

Competition in crypto mining: NVIDIA, AMD, and others

Competition in crypto mining in terms of graphics cards increased to a new level. New players coming on stage challenges the graphics cards tycoons to be out of crypto mining sector. Bitmain Technologies, the inventor of Antminer E3, seems to surpass the sales of both NVIDIA and AMD in crypto mining cards. The two big companies are forced to reduce activities in cryptocurrency business.

Competition in crypto mining in terms of graphics cards increased to a new level, with the new companies coming into play. NVIDIA and AMD are the two big companies that produce graphics cards for the gaming industry. They also entered the data centers business recently. Moreover, with the regular crypto miners buying huge chunks of graphics cards, the companies ran out of stock of cards. Thus, that forced the two to invest in cryptocurrency business. However, other companies such as Bitmain challenged them in this area, and now the two big are reducing their crypto mining businesses. Since Bitmain and some other companies are specialized in crypto mining, they can produce cards with a higher cost-efficiency rate. As a result, their sales are better than the big two in the crypto mining business.

However, this situation seems not to be a problem, especially for NVIDIA. Since the company is more active in gaming and data centers industry, they can compensate for the loss in the crypto mining business. In fact, financial analysts are suggesting a buy on NVIDIA’s stocks. This news relieved the stress on NVIDIA investors. On the other hand, AMD may not be as strong as NVIDIA with the loss of crypto markets. Since AMD’s one-fourth of first quarter revenues are based on Ethereum-related chips, they might get hit harder by other crypto mining companies. We look forward to seeing how the competition in crypto mining graphics cards will be in the second quarter of 2018. Our hope is that it will be the best for the cryptocurrency industry.

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Cryptocurrency News April 2018

Cryptocurrency News April 2018

Our latest article, Cryptocurrency News April 2018, is about the recovery of cryptocurrencies after a long-running low price trend and a recent news about Google’s decision on banning the crypto mining extensions. Led by Bitcoin, values of most cryptocurrencies raised with the beginning of the month.

Nearly all cryptocurrencies have gained value with the beginning of April. When we look at last week’s trends in prices, we see that only Bytom and Tether lost a small amount of value. All the other coins were in an increasing trend, according to CoinMarketCap. After hitting the lowest prices in 2018, some coins such as Ripple and Ethereum is in a recovery trend. For example, Ripple rose to $0.54 after hitting an all-time low of $0.49. On the other hand, the value of a few coins has dropped a little. Bytom, for instance, has lost around 2 percent over the last week. However, the overall comeback by the majority of coins has been welcomed by the miners.

Moreover, in a recent news, Google has banned all extensions related to crypto mining from Chrome Web Store. This is done because most of the crypto mining extensions in the store did not comply with Google’s rules. Google has set up some rules about crypto mining programs working on the Chrome, including informing the user about crypto mining activity. Also, the extensions on the store had to show that the script’s only purpose is mining. Since most of the crypto mining scripts on the store did not comply with the regulations, Google decided to ban all the crypto mining extensions until a further notice. Now, some users are turning to other browsers until Chrome Web Store gets the extensions back.

April started with a positive view of prices of most of the coins. We are looking forward to seeing a more confident future for the crypto mining.

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green crypto mining

Green crypto mining: Cryptomatoes

Green crypto mining is changing the notion that “mining is bad for the environment.” Kamil Brejcha, co-founder of NakamotoX, has developed a strategy to grow greenhouse vegetables using the excess heat of mining. The first batch of tomatoes grown with the help of crypto mining is nearly ready to be harvested. Brejcha adds there are more vegetables to come.

As the disputes over whether the crypto mining is cost-effective, Czechia has become the first to grow plants using the excess heat of crypto mining. Meanwhile, Kamil Brejcha is one of the leaders on the green crypto mining business. He owns a digital currency start-up in Czechia, and they are growing vegetables using the crypto mining energy. The company first used tomatoes as the candidate for the process. In fact, Brejcha calls them “cryptomatoes.” The plants will be harvested in the short term, and there will be many others to follow.

The company did not share the details of the heat exchange process apart from this tweet.

Hopefully, they will give more details soon. Also, they said that they are channeling the heat from the mining area to the greenhouse. This can lead to many other applications in the mining businesses. New areas can arise from the use of excess energy of mining activities.

As the crypto mining businesses grow, it brings new ideas with it. There’s no doubt there will be many more soon. We think the green crypto mining is just the beginning.

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crypto mining ban

First crypto mining ban in United States

Plattsburgh decided to implement an 18-month crypto mining ban due to exceeding the electricity quota of the town. The small town has recently caught the attention of miners because of its cheap prices of electricity. But, the ban could end earlier than expected.

Plattsburgh City Council voted for a temporary law that implements a crypto mining ban throughout the town. The small town located in New York owes its cheap electricity prices to the dams used for energy production. Because of its cheap electricity prices, the town also attracted some crypto miners. Miners have been using extensive amounts of electricity since last year. Thus, the town has exceeded its allotted amount of electricity both in December and January. As a result, the city council has decided to pause the mining operations for a limited time.

As we stated in one of our previous posts about cryptocurrency mining, the process of mining has changed a lot since beginning. Now, mining requires a lot of electricity and powerful hardware. This leads to the need for optimization of the tools for mining. Thus, governments and cryptocurrency producers work together to increase the efficiency of the process.

The temporary crypto mining ban is going to last for 18 months, but this duration could end earlier than expected according to local authorities. Councilors who voted for the local moratorium stated that the law could be lifted in a shorter time when the consumption protections are put in place. These protections include zoning laws and regulations in lighting schedules. The authorities work in concert with the miners to reduce the crypto mining ban.

Although the crypto mining ban news looks bothersome at first, the hopes are high among the crypto miners as the ban is not expected to last long.

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Cryptocurrency News March 2018

Cryptocurrency News March 2018

In our latest article Cryptocurrency News March 2018 we discussed the downward price trend for almost all cryptocurrencies and the statement of the SEC on requiring cryptocurrency trades to be registered.

Almost all cryptocurrencies lost value considerably at the beginning of the month. According to CoinMarketCap, the price of the top 100 cryptocurrencies has dropped except for few coins. Waves and SIRIN LABS Token were the only cryptocurrencies that are not impacted by this downward trend. On March, 6th, Wednesday, the price of the Bitcoin dropped by 6 percent and fell below the $10,000 price level once again. Ethereum, the second cryptocurrency in terms of the highest market cap, is dropped 8 percent to $741.59. Also, Ripple was down by 7 percent to $0.85.

One of the reasons for this trend might be the SEC’s (U.S. Securities and Exchange Commission) statement that they will require cryptocurrency trades to register. This statement created an instability on the cryptocurrency market. In fact, countries and financial organizations might empower some regulations on the trade. The main issue about the SEC’s statement is the uncertainty. It is known that they have been attempting to crack down on initial coin offerings (ICOs) for some time, saying that they may technically be unregistered securities. The question is whether the SEC considers major cryptocurrencies like Bitcoin and Ethereum to be securities or not. Experts have different opinions on regulating the cryptocurrencies and transactions. Nevertheless, the uncertainties in the definitions create a volatility and speculation in the market. Here’s the part of the SEC’s statement:

If a platform offers trading of digital assets that are securities and operates as an “exchange,” as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.

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Cryptocurrency mining is changing

Cryptocurrency mining is changing!

All around the world, people discuss the cryptocurrencies. Most of the discussions are focused on the exchange value of these commodities and future of this technology. Whenever we discuss cryptocurrencies, we need to consider the other side of the equation and remember that cryptocurrency mining is changing as well!

Years of 2016 and 2017 were big in terms of the steady rise of the cryptocurrencies. As Bitcoin rose from about $1,000 to $20,000 in the last year, everyone started to discuss and invest in cryptocurrencies. With an ever-growing demand for the big cryptocurrencies like Bitcoin, Ethereum, Litecoin, and DASH, the number of alternative cryptocurrencies increased as well. As a result, trading volume of the cryptocurrencies grew tremendously.

All these changes were possible because of the increasing number of cryptocurrency miners. Back in the days, it was possible to just install a software and leave your laptop on during the night to mine cryptocurrencies. Well, it is still technically possible. However, the rules of the game changed as the competition started. The gains from the cryptocurrency mining are largely determined by the cryptocurrency that you choose to mine and mostly by your hardware.

Over the years, cryptocurrency mining is also evolved and adapted to the new circumstances. Let’s see some of the most important changes briefly:

  • Cost of the hardware: Building a cryptocurrency mining rig is not as affordable as it used to be. This is mainly caused by the huge demand from the miners all around the world. Also, high-performance PCs were always used by gamers.
  • Different methods to do mining: Mining farms stated to emerge over the years. Companies operate as mining farms let users rent their systems to do cryptocurrency mining. This method is appealing especially for people who can’t afford to make a down payment.
  • Security concerns: Even though the whole blockchain technology is about security, increasing popularity of cryptocurrencies brought more complex security-related concerns.

As a result, cryptocurrency mining is changing and miners need to adapt to the changes. As CRYPTOTECH, we offer our expertise to end-users to be successful in this game!

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AMD steps up to solve graphics card shortages

Earlier this month, AMD announced that they are aware of the graphics card shortages and boosted prices in the market and they will try to increase the graphics card manufacturing.

Recently, AMD released their earnings from the last quarter of 2017 an announced of $1.48 billion revenue. This corresponds to an about 33 percent year-on-year increase. In our Cryptocurrency News February 2018 post, we mentioned the price increase in the NVidia and AMD graphics processing units (GPUs). Over the years some of the most popular NVidia graphics cards had dramatic price increase:

  • GeForce GTX 1050 Ti – 27 percent
  • GeForce GTX 1060 3GB – 86 percent
  • GeForce GTX 1060 6GB – 89 percent
  • GeForce GTX 1080 Ti – 59 percent

Similarly, AMD also had to deal with graphics card shortages and price increases. It is known that this high demand was mainly driven by end-users that mines cryptocurrencies like Ethereum. AMD launched two cards from RX Vega series (Vega 56 and Vega 64) in August 2017. It is also reported that two graphics cards in that line have been sold out.

Cryptocurrency mining is becoming extremely complex for the architectures of the graphics cards as their performance rises and approaches its limits. Competition in mining the coins is also impacted by the number of coins available. For instance, it is known that there are 21 million Bitcoins available in total and currently 17 million of them are in circulation. Moreover, as more hashing power is deployed by the network of miners, finding a new block becomes more difficult.

CEO and President of AMD Dr. Su recently stated that their manufacturing is not limited by the silicon materials they are using. Nevertheless, there is a shortage of GDDR5 and HBM2 memory, which is used in the RX 400 and RX 500 series cards. Dr. Su added that they intend to work through this limitation with their memory suppliers. Beyond any doubt, if AMD can increase their production level and solve graphics card shortages, both miners and gamers will benefit from this.

Cryptocurrency News February 2018

In our latest article Cryptocurrency News February 2018 we discussed the success of Ethereum in the beginning of the year, reasons for the recent price increase in GPUs, and governments’ approach for cryptocurrency trades.

The final quarter of 2017 was a huge success for almost all cryptocurrencies. Nevertheless, in the beginning of 2018 Bitcoin had a dramatic drop, causing a stress in the whole market. Several alternative coins, like Ethereum, survived the instability of the market. There are different theories going on about why these alternative coins were not impacted as much as Bitcoin. Beyond any doubt, some portion of the small investors who sold their Bitcoins as soon as the price started to decrease, carried their investments to these alternative coins. It is uncertain whether this trend will carry on but miners can make wise investments to increase their profit.

Cryptocurrency miners are well aware of the price increase in the NVidia and AMD graphics processing units (GPUs) in the last couple months. Looks like this trend also had an influence on cryptocurrency miners to invest in alternative coins. For instance, mining Ethereum is known to be more profitable compared to Bitcoin. In fact, the profitability of the mining Ethereum is still so high despite the small price drops. As a result, GPU choices of these miners had a huge impact on NVidia and AMD prices.

The approach of big countries towards cryptocurrency trade is a hot topic. This does not necessarily mean policies of countries will impact the prices of coins. In the beginning of this month, it was reported that China started to block access to major cryptocurrency trade markets. The reason for this ban was to prevent the “financial risks”. On the other hand, in the last couple months regulations of the United States usually aimed to make cryptocurrency industry safer instead of restricting it. Surely, in 2018 we will see how these different approaches will impact the market.

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Cryptocurrency News January 2018

Read our latest article Cryptocurrency News January 2018 in order to learn about the huge price drop in Bitcoin, its impact on other coins, and how crypto mining industry will be impacted by these changes.

Earlier this month, in our “What will Bitcoin be worth in 2018?” post, we have discussed possible scenarios for Bitcoin in 2018. Some argued that Bitcoin is simply a bubble that people should not trust. Sexo Bank, a Danish Investment Bank that is famous for their Outrageous Predictions lists, predicted that the price of the Bitcoin will fall down to $1,000 in 2018. If the current trend is the beginning of their prediction, it is a little bit early in the year.

On the other hand, some argued that the price of the Bitcoin will rise to $40,000 (and even to $100,000 eventually) after its debut in major exchanges. To be honest, the trend in the first three weeks of 2018 doesn’t look promising for $100,000. Bitcoin had a peak value of $19,343 on December 16, 2017. After a month, it was reported that the price of Bitcoin briefly dropped under $10,000 on January 17, 2018. After the huge drop on January 15th, the price of the Bitcoin seems to be stabilized between $11,000 and $12,000.

Meanwhile, almost all other cryptocurrencies are also suffered from this trend. Indeed, most of them had double-digits price fall on the same day. Etherium, Ripple, IOTA, and DASH are some of the cryptocurrencies in the top 20 based on coin market caps, which impacted by this trend. Just like we didn’t have a clear idea of why the price of the Bitcoin (and other cryptocurrencies) was rising so rapidly in the last quarter of 2017, we are unsure of the driving forces for this drop.

Despite this market slide, many manufacturers and industry leaders foresee that cryptocurrency mining will keep its rise in 2018. Apart from the price of the cryptocurrencies, energy consumption is still one of the biggest factors for mining. Moreover, more companies are investing in blockchain solutions and supporting cryptocurrencies.

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