Miners Gonna Mine: Why Bitcoin Miners Refuse to Shutdown Their Rigs 2990

In the face of a price slump, Bitcoin Miners keep defying expectations and continue to run their operations. Many have predicted that the effect on the economic value of Bitcoin mining would be so severe that there would be a precipitous drop in the number of miners on the network. However, in defiance of this prediction, the hashrate on the Bitcoin network, which measures the amount of total computing power available for Bitcoin mining, has continued to increase.

Mining Efficiency

rising hash rate
Image: bloomberg.com

Part of the reason for the resilience of Bitcoin’s miners is continuing improvements to the efficiency of the hardware needed to mine. The Bitcoin network is dependent upon the work of miners to maintain it. Miners are responsible for processing and verifying the transactions that take place on the Bitcoin network, packaging them up into cryptographically secure blocks and adding them to the Bitcoin blockchain.

As a reward for their work, miners receive a cut of the transaction fees paid by each user when they send Bitcoin, but their main incentive to mine lies in the block reward, which is currently worth 12.5 BTC to the successful miner. Even when this reward is divided amongst the pools of miners who claim the majority of the rewards, it can still represent a decent payout.

The Bitcoin network is designed so that, as more hashpower is added to the network, the difficulty of mining work is scale up accordingly. In theory, this means that as more power is added, the cost of mining, and therefore the price of each Bitcoin, should rise in a linear and predictable fashion. However, what this equation doesn’t take into consideration is the rapidly increasing efficiency of Bitcoin mining hardware.

Running at a Loss

With the price of Bitcoin currently hovering around the $6,700 mark, the cryptocurrency is no longer profitable to mine according to the predictions of most analysts. The actual figure has been predicted as high as $8,000, and as low as $6,400, meaning that, most large-scale Bitcoin mining operations are running at a loss.

The increased hash rate means people are here for the long-term because they’re happy to just accumulate what they have, potentially even run at a loss,” said David Sapper, chief operating officer at cryptocurrency exchange Blockbid Pty Ltd. in Melbourne.

However, the picture is further complicated by the potential for the largest mining operations to dump Bitcoin onto the market as a means of shoring their financial position up against potential losses. At the same time, “they do sometimes have to clear house and dump.

asic ant miner

Some of the crypto mining operations also manufacture proprietary ASIC hardware, the same hardware that many other hobbyists and professional mining operations use. By enabling themselves cheaper access to this hardware, they are securing an advantage that is unavailable to their competitors.

Other factors beyond efficiency that are believed to be shoring up the miner’s position include the falling costs of hardware and the increasing availability of ultra-cheap electricity to large mining operations.

While most agree that the heyday of Bitcoin mining is over, it is likely that a handful of the largest mining operations will hold-out and remain in operation until Bitcoin mining becomes completely uneconomical.

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ICON (ICX) – Whatever Happened to The Korean Ethereum? 6734

icon icx

Bitcoiner since $59BittBurger, gives us his take on the current status of the South Korean ICON project. This post is primarily about a solid uptick in community involvement, decentralized marketing, and the token side of things. For the last year and a half we had a pretty uninvolved community, while the company continued to work under the hood to build something huge.

A lot is happening right now. I feel like nobody knows about it.

It’s Happening

A lot is happening right now. I feel like nobody knows about it. It just started. Most of it. So your patience will be appreciated. But I’ve never seen so much proactivity in this project on the token-side of things before.

new larger office

  • AMBASSADOR PROGRAM: Over the last handful of weeks, the Ambassador program has begun. This program incentivizes the creation of content to promote ICON across social media and the internet. Several Ambassadors have already put out multiple articles that are getting ranked across Google and Medium, bringing attention to the project.

  • ICONSENSUS P-REPS: The number of ICONSENSUS P-REP candidates has surpassed 40 (there will only be 22 voted in) and ICON is beginning a strong marketing push to attract more teams this month, with the goal of reaching 100. Check out the candidate interviews here.

  • EXPOSURE: Some of these P-REP teams which including RHIZOMEICONation, and Ubik have already begun cranking out content, started YouTube video channels, and scrambling to get ICON on podcasts.

  • PODCASTS: Speaking of Podcasts, several investors have begun reaching out to their contacts at several different podcast and YouTube influencers. The goal is to get ICON team members on for an interview, to talk about the project and get the ICON name in front of tens of thousands of faces (or ears). Ricky and others at ICON have been excited to make themselves available for this, which makes all of us extremely grateful. I will be working to get someone on my friend Chico Crypto‘s YouTube channel soon, and a handful of podcasts are already underway for scheduling.

  • EXCHANGES: This past week, a group formed within the Telegram channel to focus entirely on reaching out to as many new exchanges as possible, and getting ICON listed on them. A Trello has been set up, and we’ve already begun making headway on this incredibly important goal.

  • BINANCE USA LISTING: With the advent of Binance USA, both the ICON team and everyone involved are aggressively pursuing assurance that ICX will be listed on the new exchange for US investors.

  • COINBASE LISTING: The same is being done for ICX being in the next couple rounds of newly added coins on Coinbase. I’ve spoken to team members at ICON who have assured me they’ve been following up on this regularly. Please download their app > Sign in > Click “View all Assets” > Then scroll down and click “Follow” on ICON. This is an important metric for Coinbase to decide what gets added next.

  • HIRING PR COMPANY: Two days ago I managed to connect Ricky Dodds (ICONS Head of Institutional Markets in their San Francisco office) to a close friend of mine who runs the PR company which took Genesis mining from nothing to a $2 Billion valuation, and got them on that 60 minutes episode a few weeks ago about Bitcoin. The mining segment in Iceland was thanks to him. Intro email was sent and the two of them have been connected to see if they’re a good fit.

  • HIRING PR COMPANY: Today, I connected Ricky to another company who runs a significantly larger Crypto-focused PR and marketing company. These guys were responsible for some of the biggest successes in Crypto, including Ethereum, NEO, Maidsafe, Qtum, Bancor, Lisk, and Augur. They also managed scaling campaigns for DASH, Ripple, Bittrex, and Kraken. They were excited as they personally know 4 of the 8 advisors listed on the ICON website, and they have an office in Seoul, South Korea in addition to Santa Monica, NYC, Las Vegas, Toronto, and San Francisco. To say I am excited to see the emails flying around today between Ricky and their team would be an understatement.

  • STAKING! 15% Staking is coming in 43 days. The ramifications of this can not be overstated. Aside from the completely speculative “claim” from some that their whale groups will stop suppressing the price at that time (which would be great, if it’s true), I expect nearly everyone to be staking their coins, completely drying up the order book and causing massive upward price pressure come September.

  • INCENTIVE PROGRAMS: I was happy to hear from a team member that several very specific plans are being put in place, after observing countless incentive programs by other projects that have resulted in price gains. The ICON team has realized the importance of creating incentive, interest, anticipation, and excitement for this token, and they’re taking steps to make it a reality for ICX.

icon partnerships

My point in writing this: A LOT is coming in the next 8 to 12 weeks. All of this is centered around recovering and catapulting the price as high as it can possibly go. ICON is seeking out the all-stars in this industry with incredibly resumes, and asking the experts for direction and input.

All of the marketing and promotion has just barely begun. Everything is at ground zero. But its finally happening. All the things we’ve been hoping for, for a year and a half.

XRP (XRP/USD) Price Is Telling: Moment of Truth Close By 6382

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The recent cryptocurrency price swings have certainly involved the whole market, granted that Ripple (XRP) has seen an admirable uptrend for its price. With a 13%, the coin has managed to jump to $0.37.

xrpusd chart

At press time, the XRP/USD pair is trading at a $0.36. It is important to note that despite the growth trend, XRP also took on a bearish market correction wave that initially affected its price. As such, over the last few hours, XRP hit a low of $0.32, yet a massive increase in trading volume for XRP pairs, helped consolidate yet another growth trend.

As always, it is important to take a look at the main probable factors, responsible for the recent price volatility, apart from the price influence brought on by the bitcoin price increase.

Ripple (XRPUSD) Price and News Today

With this in mind, XRP’s parent company, Ripple, went through several positive business developments. As such, the European Commission recently decided to pick Ripple as one of the main associates for the EU’s newest blockchain initiative. Additionally, a German exchange added XRP-based trading to its line of trading products, whereas the RippleNet payment tool is now being used by RationalFX, an English fintech firm.

XRP Price Heading Towards $0.40?

However, numerous market analysts believe that the positive move had little to do with XRP’s bullish price trend. Rather, they think it was overall market excitement and increased trading volumes that encouraged the price increase.

xrp

A possible event that may serve as discouragement to further price increases, is a rumour that the United States Securities and Exchange Commission (SEC) may issue a no-action letter to Ripple, since it has already set precedence with a similar act.

Despite these aspects, it will certainly be interesting to see whether XRP will continue increasing in value, and if it will end up reaching its previous all-time high anytime soon.

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