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Three Countries Where It’s Cheapest To Mine Cryptocurrencies

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The crypto winter which lasted for pretty much the whole duration of 2018 and then some in 2019 is finally over. The survivors are now licking their wounds and preparing for yet another crypto market consolidation, hoping that the next time such a recession occurs they will be ready.

However, there are some companies out there, that didn’t lose pretty much anything during the crypto winter. Sure, they weren’t profiting as much from mining Bitcoin anymore, but they were somehow still staying afloat without having to lay off staff or cut costs.

Which countries managed to provide such an environment for these companies? What type of laws did they have and how much did it cost to run a Bitcoin mining right there?

There are exactly three countries that provided such opportunities for large mining groups. Let’s see their crypto mining policies just to get a feel as to how they managed to survive.

Iran

Although the government of Iran is starting to be a bit sketchy towards cryptocurrencies, their previous national policies of not touching crypto miners but banning crypto trading were working out more or less alright.

It was extremely profitable for the crypto miners themselves as they didn’t disturb the authorities and the authorities stayed away from them as well.

During 2018, mining one Bitcoin was around $3,700 including all of the costs on electricity and staff in Iran.

Therefore, crypto mining companies there managed to stay afloat without having to cut too many costs or seize their operations completely. But how?

Well, there used to be (and still are) very nifty subsidies on energy consumption in Iran. The country’s Ministry of Energy would pay more than half of the actual payment for the amount consumed so that the population would have at least some kind of benefits in terms of finances.

The crypto mining companies were inadvertently included in the “population” and they used these subsidies to their fullest potential.

Now though, it seems that the government is starting to face some financial issues after renewed tensions with the United States and therefore will have to cut back on too many subsidies. This means making the crypto miners either pay for their operations and energy consumed, or simply leave the country.

Unfortunately, Iran is leaning towards the latter option.

Georgia

Georgia sometimes gets lost in the background of the crypto noise as it doesn’t really get featured a lot on the mainstream blockchain media.

However, the country is a leading cryptocurrency producer right behind the United States.

According to 2017 measurements, Georgia was mining around 15% of available Bitcoins at the time and was on third place behind the United States and China.

Since China is already very shaky towards crypto mining operations, there’s a high chance that Georgia could move to the second position and potentially become a crypto hub in the future.

According to a Georgian website about capital investments, many local businessmen have devoted a large chunk of their net worth towards establishing personal crypto mining farms. Some go for Ethereum, while others are contempt with Bitcoin.

However, none can match the computing power that Bitfury is able to field in this day and age. It’s the largest crypto miner in Georgia, and one of the largest crypto mining companies in the world.

There are multiple others as well such as birtvi which mostly does cloud mining.

In a sense, you get the point, the mining business is booming in Georgia and there are exactly three reasons as to why.

The first reason is that electricity is dirt cheap in the country. For example, mining one Bitcoin cost around $3,500 in Georgia when cryptos were at their lowest. There were some losses but not nearly as high as companies like Bitmain had to face.

The local labor force is also very cheap due to the small economy and inflation of the local currency. For example, paying a senior database engineer around $50,000 a year would be considered the 1% of the country’s population, not talking about junior positions.

The third reason is the revenue tax which is only 20% and the VAT of around 18%. Compared to major European states and the US it’s pretty much nothing. Furthermore, there are no taxes on crypto capital gain, therefore the miners can easily become institutional investors alongside large private traders.

Contrary to Iran, Georgia is planning to increase their blockchain space to a point where they can entice large crypto companies to come to the country and establish offices there, and many are starting to see the region as a profitable decision, especially those willing to do some mining in the future.

Venezuela

Although Venezuela is by far not the largest crypto mining country in the world, it has definitely been classified as the cheapest option one can find pretty much anywhere across the globe.

According to studies, the miners would have to pay around $550 for every mined Bitcoin and that was when BTC was worth around $12,000.

Even compared to a crypto friendly country like Georgia that is an extremely low cost.

This could be due to the country’s capabilities of maintaining very cheap prices on energy due to oil reserves and multiple other sources, but the numbers are varied.

When it comes to the salaries for the workers, they’re practically non-existent compared to the profits that the miners can manage.

One terrible flaw of Venezuela though is its government which has started to impose serious restrictions on local mining operations as well as trading different currencies. They did this in order to promote their own national cryptocurrency the Petro, which is backed by oil.

Needless to say, nobody was interested in using a cryptocurrency which is maintained by the government, who has already caused hyperinflation with the country’s fiat currency the Bolivar.

Regardless though, we’re here to discuss whether it’s cheap or not to mine Bitcoin in a specific country and Venezuela ranks the highest above them all.

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Cryptocurrencies price prediction: Bitcoin, Ethereum & TRON – European Wrap – 17 October

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Bitcoin price prediction: BTC/USD recovery stalled on approach to $8,100 – Confluence Detector

Bitcoin (BTC) is changing hands marginally below $8,100. The first digital coin managed to regain some ground, having gained about 1% of its value in a matter of hours ahead of the European opening. Despite the recovery, BTC is vulnerable to further losses as the upside momentum is weak so far.

Bitcoin confluence levels

During early European hours BTC/USD  tested area above $8,100. Despite the recovery from the intraday lows, the upside momentum remains weak, which poses risks for Bitcoin. There are a few barriers both below and above the current price, though the move to the South looks like a path of least resistance. 

Bitcoin price prediction: BTC/USD recovery stalled on approach to $8,100 – Confluence Detector

Bitcoin (BTC) is changing hands marginally below $8,100. The first digital coin managed to regain some ground, having gained about 1% of its value in a matter of hours ahead of the European opening. Despite the recovery, BTC is vulnerable to further losses as the upside momentum is weak so far.

Bitcoin confluence levels

During early European hours BTC/USD  tested area above $8,100. Despite the recovery from the intraday lows, the upside momentum remains weak, which poses risks for Bitcoin. There are a few barriers both below and above the current price, though the move to the South looks like a path of least resistance. 

Ethereum market update: ETH/USD recovery capped by $178.00

ETH bottomed at $171.90 on Wednesday. By the time of writing, the second largest coin recovered to $176.78, however, the upside momentum is too weak to allow for an extended recovery towards critical $180.00. ETH/USD has gained 1.2% since the beginning of the day amid global recovery on the cryptocurrency market led by Ripple’s XRP.

Ethereum

TRON price analysis: TRX/USD crashes to 14th place on CoinMarketCap

At the time of writing, TRX/USD is changing hands at $0.0148. The coin has lost over 6.5% in recent 24 hours, and the downside momentum is still growing. Currently, TRON takes 14th place in the global cryptocurrency market rating, losing three positions to Monero (XMR), Cardano (ADA) and LEO. The total market value of Tron reduced to $983 million; an average daily trading volume registered at $626 million.

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China is Even “Closer” to Launching its Own Cryptocurrency

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While Libra is fighting obstacles, China is on the track to release its own crypto.

While Libra is fighting obstacles, China is on track to launch its own cryptocurrency. 

Cryptocurrency and China: closer and even closer. In August, the country said that its own token is just around the corner. The recent reports reiterate this “closeneness.” 

To be fair, China’s efforts are remarkable. Why? Because the country has banned and re-banned crypto. As a result, 88 Chinese cryptocurrency-exchanges closed. 85 projects for the initial placement of tokens seized to exist.

At the same time, in March 2019, the People’s Bank of China refused to recognize cryptocurrency as a means of payment, referring to its unreliability. However, it seems like it is a matter of who actually owns the cryptocurrency — the Chinese government or someone else. Thus, in August China’s central bank announced it is going to launch CBDC very soon.

It seems that the continuously worsening trade war between the U.S. and China only encourages this project.

What will be the main features of China’s crypto?

The CBDC coin will have a 2 level structure due to the country’s complicated economy. Mu Changchun, Deputy Chief of the People’s Bank of China (PBOC) explained, “The People’s Bank of China is the upper level and the commercial banks are the second level. This dual delivery system is suitable for our national conditions. It can use existing resources to mobilize the enthusiasm of commercial banks and smoothly improve the acceptance of the digital currency.”

He also mentioned that CBDC’s design will to some extent replicate Libra. And it will handle 30.000 transactions per second.

CBDC will be supported by Alipay and accessible through WeChat. Curiously, Alipay officially advised a few days ago they will ban any crypto payments.

The soon-to-be launch has generated a lot of opinions. In particular, Ripple’s CEO, Brad Carlinghouse believes it should be “a call for action for the US” if they want to remain a leader in the cryptocurrency industry.

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Which Cryptocurrency Should I Invest in 2019?

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What is the best cryptocurrency to invest in 2019? Lots of new and existing crypto investors ask this question. There are so many cryptos to invest in, but many analysts recommend investing in the oldest cryptocurrency in existence. If you have heard of digital currency, then Bitcoin must be the first you would come across. Its dominance is the highest in the market. If the coin continues to rise, it may just be the best cryptocurrency to invest in 2019.

Why you should invest in Bitcoin

Bitcoin price changes every day and it has seen several lows and highs in the last couple of years. BTC price went from $76 to $20,000 in a massive bull run in December 2017. After reaching this point, the coin dropped again to $6,000 and picked up again in April 2019. Since this time, it has fluctuated up and down.

With such a volatile market, how can you pick an excellent time to invest in Bitcoin? Here are some ways to find out:

One event was when BTC was split into 2 cryptos – Bitcoin and Bitcoin Cash. The investors who took advantage of this opportunity made huge profits while doubling their investments.

BTC price dropped a while later and investors panicked and sold off their Bitcoin which pushed the price below $10k. Bitcoin is the best long-term crypto investment you can make in 2019. Now is the best time to buy since there are only a few BTC left to be purchased. Also, BTC is the most secure investment of crypto and it also controls the market to a large extent.

In addition, the technical competence of bitcoin with Schnorr signatures, Segwit, MAST, Bulletproofs, MimbleWimble, Confidential Transactions, Drivechains, Sidechains, and Lightning Network is on the rise. All these factors come together to make it hard for other cryptos to catch up.

How to invest in bitcoin

You can buy Bitcoin from popular crypto exchanges such as Binance and Coinbase. The process is easy and you can easily store it in so many wallets on the web or even hardware wallets. It is an excellent time to have Bitcoin in your portfolio and it can take up 40-50% of the crypto portfolio.

However, if you want to venture into a Bitcoin investment, you need to remain updated with the latest trends and news around BTC. Most times, when there is new information about technical improvement in BTC, it may be a good time to buy. Another good time to buy is when the price of Bitcoin crashes because it is a good opportunity to buy at a low price.

If you haven’t invested in cryptos at all, then starting with BTC is the best option. Despite missing the first opportunity to buy bitcoin when it was cheap, investing now is still an excellent idea.

Investing in cryptos generally can be profiting. However, it means that you must also be ready to lose money. All the expert predictions in the world can not be correct all the time. No one in the space truly knows what will happen to the price of a cryptocurrency.

The best advice to heed when it comes to investing is only investing money that you aren’t afraid to lose. Keep this in mind before investing in any cryptocurrency.

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