Bitcoin Mining Industry Not Optimistic on a Bull Market Coming Soon
Fantastic news! Hashrate Index, a professional mining data company, has made the forecast that the present bear market for bitcoin will terminate in the year 2023. On the other hand, Bitcoin mining industry professionals don’t seem to have a very bullish outlook on the future of the market.
What Hashrate Index’s Predictions Are
According to the findings of the Hashrate Index, it is still much too early for a new comprehensive bull market to emerge. The increase of Bitcoin’s hash rate will also slow down, according to the research, and ASICs, which are application-specific integrated circuits, will become relatively affordable.
The United States was recently hit by a harsh winter storm, and as a result, a great number of miners were forced to turn off their equipment. As a direct result of this, the hash rate for Bitcoin dropped by 35% in only one day. According to the statistics provided by BTC.com, the hashrate has returned to its previous level of 268.84 EH/s after a significant recovery.
Bitcoin’s 80% price decline from its peak to its low is comparable to the 85% and 84% drawdowns seen in 2015 and 2018, respectively. According to Hashrate Index, this bear market may be ending soon based on previous trends.
According to the second forecast on the company’s blog, the pace of increase of the hash rate—a metric of the processing power being used to mine Bitcoin—is likely to decrease starting in 2023.
This is a result of the mining industry being plagued by bad economic circumstances in 2022, which did not provide any incentives for expanding capacity. The boost in a hash rate that is anticipated in 2023, however, will mostly be the result of capacity expansion that was supposed to happen in 2022 but was postponed.
The third forecast is that some publicly traded Bitcoin mining businesses with market caps below $50 million may decide to go private as a result of the extended bear market. As a consequence of the prolonged bear market, the fourth prediction is that some publicly listed Bitcoin mining companies with a market capitalization of less than $50 million may opt to go private.
In any case, Hashrate Index believes that this year will be the year when the bear market finally comes to an end. Let’s see whether their prediction comes to fruition.
Ripple Optimistic on Winning the Case Against SEC! What’s in the Hinnman’s Documents?
In a recent update, Ripple received the documents related to Ex-Sec executive, William Hinman, which the company believes to be very pivotal considering the lawsuit. The Ripple executives and the legal team announced it as a huge victory that may expose the SEC very soon.
Ripple co-founders who were on charges of selling XRP illegally since its inception, now believe to have enough evidence to prove the awful behavior of the SEC. The co-founder Brad Gardlinghoues, referring to this says,
“The SEC wants you to think that it cares about disclosure, transparency and clarity. Don’t believe them. When the truth eventually comes out, the shamefulness of their behaviour here will shock you,”
On the other hand, XRParmy had signed affidavits explaining that they did not expect profits when they purchased XRP. This was further used to file an opposition to the SEC’s motion for the summary judgment by the Ripple lawyers. As per Jeremy Hogan, partner at Hogan & Hogan briefs, there’s a lot to unpack.
On the whole, Ripple’s 10-year celebrations are expected to be more joyful with the advancement of the ongoing lawsuit. Moreover, the XRP price is not being impacted even if the company procured Hinman’s documents, which offers more evidence to the contrary of the SEC arguing that the price is influenced by Ripple.
Collectively, the much-prolonged Ripple vs SEC lawsuit is expected to find closure as the things are getting pretty clear at the moment.
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Here’s a Clever Strategy for Cautiously Optimistic Crypto Mining
One of the most effective ways to get decent earnings on cryptocurrency is mining. It allows you to keep the network running and earn tokens as a reward. However, before starting mining, you need to answer a few questions: what kind of mining is the most effective? How to identify the benefits? On which hardware to mine? Which cryptocurrency? In other words, you need a strategy.
To start mining on your own, you will need three things: mining hardware (central processing unit (CPU), graphics processing unit (GPU), or ASIC), mining software, and a cryptocurrency client/coin wallet.
Different types of cryptocurrencies may require different hardware to achieve the best results. For example, ASIC equipment is configured to confirm transactions for cryptocurrencies such as Bitcoin and Bitcoin Cash. For cryptocurrencies like Ethereum, Zcash, and BitcoinGold, graphics processing units (GPUs) are suitable.
To choose mining software, you need to understand what algorithms and hardware it supports.
Deciding what mining equipment to buy, what mining software to choose, and whether it is better to mine by joining a mining pool or getting risk and starting a solo journey is a much more serious question that can be additionally searched for, for example, on popular cryptocurrencies forums. Experienced miners will gladly share their experience with a newbie, depending on your needs.
5 Steps of the mining process:
Purchase equipment;
Open an electronic cryptographic wallet;
Set up equipment using special software;
Connect to a pool of miners (if necessary, depending on the coin); Run the program.
Bitcoin is one of the most popular and profitable cryptocurrencies for mining. The largest mining farms are located in China (although some have already migrated to Europe and Canada), and their scale is outstanding. Mining BTC on a home computer is an obviously losing business, hence farms are needed.
Most suitable equipment – ASIC, powerful and energy-saving. Namely, ASIC S19Pro, Antminer S19Pro, Antminer S17+, Antminer S19j, and WhatsMiner M30S models.
How much can you earn?
In August 2022, the price of BTC is around $24,000, which means you could theoretically earn $150,000 (6.25 x 24k.) per block.
To calculate how much you can earn today on bitcoin mining on specific equipment, you need to know the following: the hash rate, the daily cost per BTC, the power consumption of the equipment, and the cost of kWh. For convenience, it is easier to use one of the many calculators that are in the first place in Google.
Important to know that in addition to buying, setting up, and installing equipment, you must take care of maintenance, sound and heat insulation, unexpected expenses (repairs), and also take into account the rising price of electricity. Would be mining profitable? Definitely yes, but taking into account the fact that you know this “inside kitchen”, or hire a consultant to advise, then you might have an impressive capital to start and run your farm.
Is it possible to mine cryptocurrency without a large starting capital? If you are looking to make your initial capital mining.
There is an alternative – it is cloud mining.
Cloud mining is an alternative to the traditional way of mining cryptocurrency with the help of special equipment. You rent the required amount of power from the owners of the mining farm, in return – you passively accumulate cryptocurrency. However, you should be careful and choose only trusted services.
One of the major representatives of cloud mining is SunMining. They were one of the first to start mining cryptocurrency using solar energy. A wide range of contracts (capacity for rent) and referral levels makes this service available to everyone who wants to do it.
Firstly, you need to register on the site and familiarize yourself with the equipment and available contracts (they differ in price, contract duration, amount of rented power, and referral level). The more capacity you rent, the higher your profit is. Next, you must decide what you want to do with bitcoins after mining – you can store them on an exchange or wallet, use them as a long-term investment, or immediately convert them into a currency. Act according to your needs.